17 October 2012
The Manager Company Announcements Office Australian Securities Exchange
Dear Sir,
Wesfarmers 2012 Sustainability Report
Please find attached the Wesfarmers 2012 Sustainability Report.
The report is also available on the company’s website at www.wesfarmers.com.au.
Yours faithfully,
L J KENYON COMPANY SECRETARY
Enc.
For personal use only use personal For Wesfarmers Wesfarmers Sustainability Report 2012
Sustainability Report 2012 Report Sustainability For personal use only use personal For Contents About Wesfarmers Managing Director’s welcome 2 The durability of our company is reflected in our history. With origins in 1914 as a Western Australian Message from the Chairman 3 farmers’ cooperative, Wesfarmers has grown into one of Australia’s largest listed companies. Our Sustainability at Wesfarmers 4 diverse business operations now include supermarkets; department stores; home improvement and Scorecard 6 office supplies; coal mining; insurance; chemicals, energy and fertilisers; and industrial and safety Engaging our stakeholders 10 products. We are one of Australia’s largest employers and have a shareholder base of approximately Reconciliation Action Plan 17 500,000 direct shareholders. Looking after our environment 18 Sustainability is an important part of our history and is a critical element in our future success. Driving our performance 26 Coles 28 Home Improvement and Office Supplies 34 Securities exchange listing Target 42 Wesfarmers Limited is a company limited by shares that is incorporated and domiciled in Australia. Kmart 46 Australian Securities Exchange (ASX) listing codes: Insurance 50 – Wesfarmers (WES) Resources 54 – Wesfarmers Partially Protected Shares (WESN) Chemicals, Energy and Fertilisers 58 Industrial and Safety 62 Other businesses 66 About this report 67 Data Bank 68 Independent Assurance Statement 70 Glossary 72 Group structure and feedback form 73
years of reporting our
sustainability performance For personal use only use personal For
Like to know more about our story? 15Please visit www.wesfarmers .com.au or alternatively, use a smartphone with a QR reader app to scan this symbol
www.wesfarmers .com.au
Wesfarmers Limited ABN 28 008 984 049 The Wesfarmers story Wesfarmers has long recognised the value of sustainable business practices. Sustainability is integral to how we do business, and we continue to strive for innovative and efficient approaches to improve our social, environmental and
economic performance. For personal use only use personal For
Dancer Brooke Widdison-Jacobs, West Australian Ballet photographed by Jon Green
Wesfarmers Sustainability Report 2012 1 Managing Director’s welcome Our commitment to sustainability continues to underpin all our efforts and while I’m proud of the progress we have made in our environmental, social and economic performance, the expectations we and others have for continuous improvement mean we still have plenty of work to do.
For us, the challenge of reducing our greenhouse gas emissions has always been driven by much more than the prospect of legislative change. We have been motivated by doing what is right for the environment, for our customers and for our businesses. We have steadily improved our preparedness for a world in which carbon is priced by continuing to invest in energy efficient technologies and systems. Greenhouse gas emissions from processes at our Chemicals, Energy and Fertilisers business have been reduced thanks to the introduction of new technology, without restricting productive output. Coles supermarkets continue to roll out in-store initiatives which improve their energy efficiency and enhance the shopper experience. These are just two examples from within our businesses of significant initiatives that lower our emissions. With the new carbon price laws now in place, our focus is on compliance, further improving our energy efficiency, and greater reductions in direct emissions where we can do that sensibly.
Quality people Our commitment We recognise that as a major All the initiatives and programs Wesfarmers has long recognised employer and participant in outlined in this report are driven the value of a holistic approach business in many communities by our innovative, resourceful to managing our businesses. We across Australia and New Zealand and creative team members. started reporting on sustainability- we have serious obligations to The sustainability and underlying related matters back in 1998 when operate in a sustainable way. success of our operations is, in we stated that we were ‘committed every sense, in the hands of our to continuous improvement in Carbon price people. Their skills constitute our our environmental, health and One of the most contentious issues only true competitive advantage For personal use only use personal For safety performance’. in Australia over the past year has and are our most important been the introduction of carbon sustainable resource. This commitment continues to pricing and formal carbon emission underpin all our efforts and while With an employee base of some caps through implementation of the I’m proud of the progress we have 200,000 people, one of the biggest federal government’s Clean Energy made in our environmental, social challenges facing our organisation, Future legislative package. and economic performance, the like many others in Australia and expectations we and others have We have stayed out of the political New Zealand, is attracting and for continuous improvement mean debate, but Wesfarmers has retaining quality team members. we still have plenty of work to do. consistently supported putting a price on carbon as a policy objective.
2 Wesfarmers Sustainability Report 2012 Each of our business units operates Collectively, these programs make its human resource function a significant difference to local autonomously and has its own communities all over the country. Message from programs to invest in team members’ Wesfarmers understands that our skills and capabilities, complemented businesses only exist with strong the Chairman by a number of Group programs customer and community support As Chairman, I believe our objective must for executives. and our programs are designed to be to ensure Wesfarmers is successful in However, the broad Wesfarmers ensure we remain an integral part a sustainable way, not only for the benefit objective is to ensure we provide of the communities in which we of our half-a-million shareholders, but fulfilling and safe workplaces, live and work. for our 200,000 employees, millions of we reward good performance customers and thousands of suppliers in While the customer is at the core of and provide opportunities for the communities in which we operate right all our business endeavours it is the advancement. This remains our across Australia and New Zealand. case that the suppliers of our goods most significant contribution to and services are also a vital part of A key aspect of that sustainable business the communities we serve. making Wesfarmers the company model is safety and, regardless of current This year we have made some that it is today. Our over-riding performance, we should seek every important improvements in our safety objective is to ensure our suppliers opportunity to improve safety in all performance, but we are still a long are treated fairly and with integrity our businesses. way from our goal of zero harm and so that their relationship with our To that end, we have implemented a we will redouble our efforts to achieve businesses is mutually beneficial. Group‑wide review, led by John Gillam, safer workplaces in the years ahead. Managing Director of Bunnings, focused Through our Reconciliation Action My thanks on safety performance, real workplace I would like to thank all the Plan (RAP), launched in 2009, we safety behaviour and improving outcomes. employees of the Wesfarmers Group committed to a number of initiatives who have contributed to the positive I am confident this will provide us with aimed specifically at increasing progress we have made with our a platform for even better results in this employment opportunities for sustainable business strategies over critical measure of success into the future. Aboriginal people within our the past 12 months. businesses. Pleasingly, we are improving in this area, and many of I am very proud of our actions our businesses have implemented and achievements. Last year, our specific Aboriginal employment reporting efforts were recognised programs ranging from cadetships when we won the Sustainable to pre-employment training courses. Company of the Year at the 2011 There is, of course, more work to Australian Sustainability Awards. Bob Every AO, Chairman be done, but as our businesses This achievement aside, I trust that continually look for ways to the readers of this report are able improve we expect better and to find the information necessary better outcomes. for them to form their own view of our progress. Partnerships Another important area we continue to focus on is our community
partnerships.only use personal For All our businesses have extensive community contribution and support programs, many of which are outlined in this report. Richard Goyder We are major sponsors of the Managing Director arts, health and medical research, Indigenous initiatives like the Clontarf Football Academy, education programs from school to university, and a range of national charitable organisations.
Wesfarmers Sustainability Report 2012 3 Sustainability at Wesfarmers It’s our responsibility. From our origins in 1914 as a Western Australian farmers’ cooperative, Wesfarmers has grown into one of Australia’s largest publicly-listed companies. This, combined with our diverse portfolio of businesses, confers a significant responsibility on us to get our sustainability efforts right. This is a responsibility not only towards our employees and shareholders, but also our customers, our suppliers, our communities and our environment.
Driving our Engaging our performance stakeholders
• shareholder returns • shareholders • innovation • employees • safety • customers • ethical behaviour • suppliers • accountability Our • communities • developing our responsibility • government people
Looking after our environment
• reducing greenhouse emissions • energy efficiency • conserving water • reducing waste • rehabilitation
Our approach to sustainability In this report, each of our businesses has set out the most significant material issues Wesfarmers’ objective is to provide a satisfactory influencing their operations. At a Group return to our shareholders. We believe to do this level, our material issues are: effectively our businesses need to focus on three • Protect and enhance our reputation with stakeholders areas to ensure we remain a sustainable business: • Look after the safety and development engaging our stakeholders; looking after our of our people
environment;only use personal For and driving our performance. • Contribute positively to the communities in which we operate • Minimise our environmental footprint • Responsibly source products across the Group
• shareholder returns Driving our Engaging our • shareholders • innovation • employees • safety performance stakeholders • customers • ethical4 Wesfarmers behaviour Sustainability Report 2012 • suppliers • accountability Our • communities • developing our people responsibility • government
Looking after our environment
• reducing greenhouse emissions • energy efficiency • conserving water • reducing waste • rehabilitation For the first time we are reporting on our environmental performance in both absolute and relative terms. This allows us a better measure of progress towards sustainable business operations.
The front section of this report is We set very few public targets, structured around these key focus preferring to be judged on our areas, and is designed to give you an performance, although each business overview of the Group’s challenges, has relevant internal targets that reflect initiatives and outcomes over the past its business operations and plans. year. However, not all of the challenges We have also included some broad facing our businesses are common across metrics to describe both the Group the Group, and our business units also and business unit progress over time report on specific issues unique to their in the areas of greenhouse emissions, situation and operations. energy and water use, occupational Reporting openly and transparently safety information, as well as on a large number of key outcomes community contributions. allows us to track our progress, and Our performance in these areas is publicly acknowledge our performance. set out below and the performance However, we are focused on operating of each of our businesses can be our businesses for the long term found in the ‘Scorecard’ section on without the distraction of relatively the following pages. short-term forecasts.
Wesfarmers Group data
Greenhouse gas emissions Energy use Water consumption
Tonnes CO2e:’000 Petajoules Megalitres
7,000 200 35 1,000,000 15,000 0.25 6,000 30 160 800,000 12,000 0.20 5,000 25
120 31.07 600,000 9,000 0.15 4,000 20 13,151 12,107 12,243 6,349,576 6,298,544 6,132,809 3,000 6,139,222 80 15 400,000 6,000 9,966 0.10 9,704 5,820,625 32.40 33.75 2,000 29.76
10 30.00 40 200,000 0.05 1,000 5 3,000 0 08 09 10 11 12 0 0 08 09 10 11 12 0 0 08 09 10 11 12 0.00 Greenhouse gas emissions (LHS) Energy use (LHS) Water consumption (LHS)
Tonnes CO2e per $m of revenue (RHS) Megajoules per $m of revenue (RHS) Megalitres per $m of revenue (RHS)
Safety performance Community contributions Lost time injury frequency rate A$m
15 80 Direct 09 25.77 10 19.60 12 60 77.57 11 33.80 72.24 For personal use only use personal For 12 31.82 13.06
9 12.89 40 57.62 10.95 10.90 6 9.94 Indirect 09 31.85 20 45.78 3 10 26.18 11 43.77 09 10 11 12 0 08 09 10 11 12 0 12 40.42
Wesfarmers Sustainability Report 2012 5 Sustainability at Wesfarmers Scorecard This section provides comparative information on our performance in key sustainability areas.
Retail operations Coles Greenhouse gas emissions Energy use Water consumption
Tonnes CO2e:’000 Petajoules Megalitres
3,000 120 8 300,000 4,000 0.12 2,500 6 3,000 7.39 7.29 7.27 7.08 7.02 2,000 80 3,858 0.08 2,978,518
2,938,829 4 150,000 2,000
1,500 2,983 2,709 2,523,808 2,530,856 1,000 2,401,609 40 0.04 2 1,000 2,170
500 1,725 0 08 09 10 11 12 0 0 08 09 10 11 12 0 0 08 09 10 11 12 0.00 Greenhouse gas emissions (LHS) Energy use (LHS) Water consumption (LHS) Tonnes CO2e per $m of revenue (RHS) Megajoules per $m of revenue (RHS) Megalitres per $m of revenue (RHS)
Safety performance Community contributions Lost time injury frequency rate A$m
20 25 Direct 09 12.36 20 10 7.32 15 11 15.61 22.31
21.92 12 19.04 17.45 15 16.98 19.72 10 15.55 Indirect 12.87
12.99 10 09 7.36 5 5 10 1.85 9.17 11 6.70 0 08 09 10 11 12 0 09 10 11 12 12 2.88
Bunnings Greenhouse gas emissions Energy use Water consumption
Tonnes CO2e:’000 Petajoules Megalitres
250 35 1.0 150,000 1,000 0.020 30 200 0.8 140,000 800 25 0.015 869 0.87 844
0.6 0.82 130,000 150 242,900 600 20 0.77 732 717 226,184 0.73 691
0.69 0.010 100 210,620 15 0.4 120,000 400 186,525 179,046 10 0.2 110,000 200 0.005 50 5 0 08 09 10 11 12 0 0 08 09 10 11 12 100,000 0 08 09 10 11 12 0.000 Greenhouse gas emissions (LHS) Energy use (LHS) Water consumption (LHS)
Tonnes CO2e per $m of revenue (RHS) Megajoules per $m of revenue (RHS) Megalitres per $m of revenue (RHS) For personal use only use personal For Safety performance Community contributions Lost time injury frequency rate A$m
15 40 Direct 09 3.61 10 2.03 30 11 3.28 14.56
10 13.79 13.41 12 2.82 13.28 12.53 20
27.79 Indirect 5 26.37 09 11.92
10 20.09 10 18.06
15.53 11 23.09 0 08 09 10 11 12 0 09 10 11 12 12 24.97
6 Wesfarmers Sustainability Report 2012 Office Supplies Greenhouse gas emissions Energy use Water consumption
Tonnes CO2e:’000 Petajoules Megalitres
80 50 0.25 200,000 60 0.05 40 0.20 50 0.04 52 60 52 50
0.22 40 0.21 30 0.15 0.21 0.03
66,867 150,000 30 0.17 40 65,000 63,362 20 0.10 0.02 55,522
0.06 20 n/r n/r 20 n/r 0.01 10 0.05 10 0 08 09 10 11 12 0 0 08 09 10 11 12 100,000 0 08 09 10 11 12 0.00 Greenhouse gas emissions (LHS) Energy use (LHS) Water consumption (LHS) Tonnes CO2e per $m of revenue (RHS) Megajoules per $m of revenue (RHS) Megalitres per $m of revenue (RHS)
Safety performance Community contributions Lost time injury frequency rate A$m
15 1.5 Direct 09 0.49 12 1.2 10 0.51 11 0.97 1.35 9 0.9 12 1.01 12.17 12.30 11.95 1.06
10.81 Indirect 10.40 0.6 0.49 0.51 6 09 n/r 3 0.3 10 0.00 11 0.38 0 08 09 10 11 12 0 09 10 11 12 12 0.05
Coles Target Greenhouse gas emissions Energy use Water consumption Greenhouse gas emissions Energy use Water consumption
Tonnes CO2e:’000 Petajoules Megalitres Tonnes CO2e:’000 Petajoules Megalitres
3,000 120 8 300,000 4,000 0.12 250 120 1.0 220,000 350 0.2 300 2,500 0.8 6 3,000 200 339 7.39 311 7.29 7.27 250 306 7.08 7.02 2,000 80 3,858 0.08 80 0.84 0.6 0.82 0.82 244,995 0.77 239,827 150 0.76 200 231,090 230,545 2,978,518
2,938,829 110,000 4 150,000 2,000 219,858 0.1
1,500 2,983
2,709 100 0.4 150 2,523,808 2,530,856 1,000 2,401,609 40 0.04 40 2 2,170 100 n/r 1,000 0.2 n/r
1,725 50 500 50 0 08 09 10 11 12 0 0 08 09 10 11 12 0 0 08 09 10 11 12 0.00 0 08 09 10 11 12 0 0 08 09 10 11 12 0 0 08 09 10 11 12 0.0 Greenhouse gas emissions (LHS) Energy use (LHS) Water consumption (LHS) Greenhouse gas emissions (LHS) Energy use (LHS) Water consumption (LHS) Tonnes CO2e per $m of revenue (RHS) Megajoules per $m of revenue (RHS) Megalitres per $m of revenue (RHS) Tonnes CO2e per $m of revenue (RHS) Megajoules per $m of revenue (RHS) Megalitres per $m of revenue (RHS)
Safety performance Community contributions Safety performance Community contributions Lost time injury frequency rate A$m Lost time injury frequency rate A$m
20 25 Direct 10 3.5 Direct 09 12.36 09 0.99 3.0 20 10 7.32 10 1.44
8 3.43 15 11 15.61 9.34 2.5 11 1.10 3.12 9.20 3.08 22.31
21.92 12 19.04 12 1.38 17.45
15 7.97 6 8.01 8.14* 16.98 2.0 2.67 19.72 10 15.55 Indirect 1.5 Indirect 12.87
12.99 10 4 09 7.36 09 1.68 * Figure restated 1.0 5 5 10 1.85 2 due to a 10 1.64 9.17 11 6.70 reclassification 0.5 11 2.02 0 08 09 10 11 12 0 09 10 11 12 12 2.88 0 08 09 10 11 12 of claims. 0 09 10 11 12 12 2.05
Bunnings Kmart Greenhouse gas emissions Energy use Water consumption Greenhouse gas emissions Energy use Water consumption Tonnes CO e:’000 Tonnes CO2e:’000 Petajoules Megalitres 2 Petajoules Megalitres
250 35 1.0 150,000 1,000 0.020 350 100 1.2 300,000 800 0.20 30 300 1.0 700
0.8 140,000 775 200 800 767 0.015 75 600 0.15
25 250 1.08 1.06 869 1.05
0.8 1.04 0.87 844 658
0.99 500 0.6 0.82 130,000 150 242,900 600 20 0.77 732 717 200 313,702 311,668 226,184 0.73 310,391 0.10 691 50 0.6 250,000
303,397 400 0.69 0.010 210,620 15 0.4 120,000 400 150
100 257,087 300 186,525
179,046 0.4 10 100 25 0.05
200 n/r 0.2 110,000 200 0.005 n/r 50 5 50 0.2 100 0 08 09 10 11 12 0 0 08 09 10 11 12 100,000 0 08 09 10 11 12 0.000 0 08 09 10 11 12 0 0 08 09 10 11 12 200,000 0 08 09 10 11 12 0.00 Greenhouse gas emissions (LHS) Energy use (LHS) Water consumption (LHS) Greenhouse gas emissions (LHS) Energy use (LHS) Water consumption (LHS)
Tonnes CO2e per $m of revenue (RHS) Megajoules per $m of revenue (RHS) Megalitres per $m of revenue (RHS) Tonnes CO2e per $m of revenue (RHS) Megajoules per $m of revenue (RHS) Megalitres per $m of revenue (RHS) For personal use only use personal For Safety performance Community contributions Safety performance Community contributions Lost time injury frequency rate A$m Lost time injury frequency rate A$m
15 40 Direct 12 12 Direct 09 3.61 09 1.02 10 2.03 10 10 10 2.35 30 1.85 11 3.28 1 11 0.74 14.56 11.31 11.56 11.18
10 13.79 8 8 13.41 12 2.82 10.74 13.28 12 1.15 12.53 9.26 20 6 9.02 6 27.79 Indirect Indirect 26.37 6.88 5 09 11.92 4 6.78 4 09 10.83
10 20.09 10 18.06 10 4.53
15.53 11 23.09 2 2 10.57 09 10 11 12 11 0 08 09 10 11 12 0 12 24.97 0 08 09 10 11 12 0 09 10 11 12 12 10.41
Wesfarmers Sustainability Report 2012 7 Sustainability at Wesfarmers Scorecard (continued)
Industrial and other businesses Insurance Greenhouse gas emissions Energy use Water consumption
Tonnes CO2e:’000 Petajoules Megalitres
15 10.0 0.10 35,000 120 0.04
12 0.08 28,000 100 119 7.5 113 0.03
0.09 80 0.09 9 13,917 0.08 0.08 0.06 0.08 21,000 13,405 12,975 12,789
12,236 5.0 60 0.02 73 80 6 0.04 14,000 66 40 3 2.5 0.01 0.02 7,000 20 0 08 09 10 11 12 0.0 0.00 08 09 10 11 12 0 0 08 09 10 11 12 0.00 Greenhouse gas emissions (LHS) Energy use (LHS) Water consumption (LHS) Tonnes CO2e per FTE employed (RHS) Megajoules per FTE employed (RHS) Megalitres per FTE employed (RHS)
Safety performance Community contributions Lost time injury frequency rate A$m
4.0 1.0 Direct 09 0.84 0.8 10 0.96
3.0 0.96 11 0.41 3.70 0.6 0.84 12 0.38 2.0 2.71 0.4 Indirect
2.22 09 n/r 0.89 0.83
1.0 0.44 10 0.00
0.2 0.38 11 0.03 0 08 09 10 11 12 0 09 10 11 12 12 0.00
Resources* Greenhouse gas emissions Energy use Water consumption
Tonnes CO2e:’000 Petajoules Megalitres
800 10.0 6 30 4,000 350 700 5 24 600 7.5 3,000
500 300 3,654 4 18 3,402 707,725 715,388
400 4.31
5.0 4.13 694,026 2,000 3,045 689,933 4.00 3.94 2,707 614,619 3 12
300 2,742 200 3.33 250 2.5 6 1,000 100 2 08 09 10 11 12 0 0.0 0 08 09 10 11 12 0 0 08 09 10 11 12 200 Greenhouse gas emissions (LHS) Energy use (LHS) Water consumption (LHS) Kilograms CO2e per Bank Cubic Metre moved (RHS) Megajoules per Bank Cubic Metre moved (RHS) Megalitres per million tonnes
of coal produced (RHS) For personal use only use personal For Safety performance Community contributions Lost time injury frequency rate A$m
8.0 1.0 Direct 09 0.86 0.8 10 0.68 6.0 11 0.83 7.20 0.87 0.6 0.86 12 0.55 4.0 0.71 Indirect 0.60
2.53 0.4
2.14 09 n/r 1.63 2.0 1.28* *Figure restated due 0.2 10 0.03 to reclassification 11 0.04 *Resources divested Premier Coal in December 2011 0 08 09 10 11 12 of claims. 0 09 10 11 12 12 0.05 and data is excluded for FY12.
8 Wesfarmers Sustainability Report 2012 Chemicals, Energy and Fertilisers (WesCEF)* Greenhouse gas emissions Energy use Water consumption
Tonnes CO2e:’000 Petajoules Megalitres
2,500 5 20 30,000 5,000 6 4 2,000 15 4,000 20,000 4 17.88 18.25 3 17.93 1,500 4,347
3,000 4,143 4,220
10 15.16 14.66 3,630 1,000 2 2,000 3,591 2,022,741 2,024,587 10,000 2 1,811,792 1,862,605 5 500 1,625,504 1 1,000 0 08 09 10 11 12 0 0 08 09 10 11 12 0 0 08 09 10 11 12 0 Greenhouse gas emissions (LHS) Energy use (LHS) Water consumption (LHS) Tonnes CO2e per tonne of chemicals produced (RHS) Megajoules per tonne of chemicals produced (RHS) Megalitres per thousand tonnes of chemicals produced (RHS) Safety performance Community contributions Lost time injury frequency rate A$m
8 0.8 Direct 09 0.69 10 0.44 6 0.6 11 0.29
0.69 12 0.49 6.50 0.4 4 Indirect 0.49 2.60 4.59 0.45 09 0.00 4.05 2 3.82 0.2 10 0.01 0.29 11 0.00 *WesCEF divested the enGen business in 0 08 09 10 11 12 0 09 10 11 12 12 0.00 August 2011 and data is excluded for FY12.
Industrial and Safety* Greenhouse gas emissions Energy use Water consumption
Tonnes CO2e:’000 Petajoules Megalitres
250 250 1.5 800,000 300 0.16
200 1.2 250 200 600,000 0.12
200 254 242
150 1.21 150 243,071 0.9 1.11 232,733 400,000 150 0.08 100 100 0.6 100 63 200,000 55 0.04 n/r 0.20 33,546 0.19 0.19
30,014 50 0.3 50 25,231 50 0 08 09 10 11 12 0 0 08 09 10 11 12 0 0 08 09 10 11 12 0.00 Greenhouse gas emissions (LHS) Energy use (LHS) Water consumption (LHS) Tonnes CO2e per $m of revenue (RHS) Megajoules per $m of revenue (RHS) Megalitres per $m of revenue (RHS)
Safety performance Community contributions Lost time injury frequency rate A$m
5 1.5 Direct 09 0.13 4 1.2 10 0.17 11 0.38 4.60 3 0.9 1.31 12 0.22 Indirect 1.61 0.6 2 09 0.05 2.40 2.41 2.34
0.22 10 0.04 0.21 1 0.3 0.18 11 0.93 *Data includes Coregas from July 2010; it was 0 08 09 10 11 12 0 09 10 11 12 12 0.00 previously part of the (then) Energy division.
Resources* Wesfarmers Corporate Office Greenhouse gas emissions Energy use Water consumption Greenhouse gas emissions Energy use Water consumption
Tonnes CO2e:’000 Petajoules Megalitres Tonnes CO2e:’000 Petajoules Megalitres
800 10.0 6 30 4,000 350 6 30 0.025 80,000 8 0.05 700 5 5 24 24 0.020 7 0.04 600 7.5 3,000 60,000 6 500 300 4 3,654 5,294 4 18 3,402 18 0.015 0.03 707,725 715,388
400 4.31
5.0 4.13
694,026 3 4 3,045 2,000 2,370 689,933 40,000 4.00 3.94 4 4 2,707 614,619 3 12 12 0.010 0.02 300 2,742 3.33
2 3 200 250 1,353 n/r 2.5 1,000 20,000 2 n/r
6 716 n/r 6 100 2 1 0.005 0.01 0.01 0.01 0.01 0.01 08 09 10 11 12 0 0.0 0 08 09 10 11 12 0 0 08 09 10 11 12 200 0 08 09 10 11 12 0 0 08 09 10 11 12 0 0 08 09 10 11 12 0.00 Greenhouse gas emissions (LHS) Energy use (LHS) Water consumption (LHS) Greenhouse gas emissions (LHS) Energy use (LHS) Water consumption (LHS) Megalitres per FTE employed (RHS) Kilograms CO2e per Bank Cubic Metre moved (RHS) Megajoules per Bank Cubic Metre moved (RHS) Megalitres per million tonnes Tonnes CO2e per FTE employed (RHS) Megajoules per FTE employed (RHS)
of coal produced (RHS) For personal use only use personal For Safety performance Community contributions Safety performance Community contributions Lost time injury frequency rate A$m Lost time injury frequency rate A$m
8.0 1.0 Direct 5 10 Direct 09 0.86 09 4.78 0.8 10 0.68 4 8 10 3.70 4.85 6.0 11 0.83 10.20 11 10.19 7.20 0.87 0.6 0.86 12 0.55 3 6 12 4.78 3.72 4.0 0.71 Indirect Indirect 0.60 2.53 0.4 2 4 4.79 4.79 2.14 09 n/r 09 0.01 00 1.63
1.28* 10 0.02 0. 0.00 0.00 2.0 *Figure restated due 0.2 10 0.03 1 0.00 2 to reclassification 11 0.04 *Resources divested Premier Coal in December 2011 11 0.01 0 08 09 10 11 12 of claims. 0 09 10 11 12 12 0.05 and data is excluded for FY12. 0 08 09 10 11 12 0 09 10 11 12 12 0.01
Wesfarmers Sustainability Report 2012 9 Engaging our stakeholders Working with our stakeholders, including suppliers, customers, employees, interest groups and community partners helps ensure we create long-term value – and provide
satisfactory returns for our shareholders. For personal use only use personal For
During the year, several hundred employees enjoyed a family event at the Art Gallery of Western Australia’s exhibition Picasso to Warhol: Fourteen Modern Masters from The Museum of Modern Art, New York *All works by Giorgio de Chirico, courtesy The Museum of Modern Art, New York and Art Gallery of Western Australia. For full artwork credits, see page 72.
10 Wesfarmers Sustainability Report 2012 Sustainability at Wesfarmers
• Employees – various internal employee which has assisted in broadening Engaging our groups (such as the Community the range of phosphate rock that Involvement Committee and the can be sourced. Phosphate rock stakeholders Wesfarmers Indigenous Network), from the Western Sahara is not part regular updates from the Group of WesCEF’s import program for the Managing Director available online coming production year. WesCEF via webcast, the ‘big Aussie BBQ’ for reports further on this issue in its the Queen during the Commonwealth business unit report on page 58. Heads of Government Meeting in Perth, • The role of Coles in the milk supply Leadership Conference, the Wesfarmers chain in Australia was subject to Arts program. questioning and criticism from some • Shareholders – annual general meeting, stakeholders. The issue related to meetings with institutional investors, Coles reducing the shelf price of its bi‑annual investor briefings, quarterly own brand milk across Australia as part retail sales briefings and other updates. of the ‘Down Down’ prices campaign • Suppliers – meetings with key industry and the suggested impact this may have on some dairy farmers. Coles and Stakeholder engagement groups, audit and review systems for responsible sourcing. Wesfarmers have spent considerable Wesfarmers and its businesses have a time and resources working through large number of stakeholders with varying • Government and regulators this issue and Coles reports on the interests across a number of different – meetings with state and federal matter in its business unit report on countries. Engaging these stakeholders government representatives, federal page 33. is an important part of our business. regulators, trade associations. • Stakeholders requested more detail All of our business units nurture and • Non-government organisations on employee satisfaction information manage their own relationships specific – joint projects and initiatives, collected by the Group. Each of to their operations – whether it’s in stores, visits and meetings. our businesses regularly conducts at mine sites, offices or industrial facilities. During the year, Wesfarmers also engaged employee satisfaction or other surveys In the business unit reports (which start a third party to conduct a Stakeholder for a variety of purposes consistent on page 28) there are many references Engagement Survey in relation to its with the business objectives and the to these different types of engagement sustainability performance and reporting. issues they are managing. There are with customers, suppliers, regulators, The executive summary of this report is several different styles of surveys used, community groups, or public interest published on our website. Some of the with varied objectives and different groups relevant to each operation. key outcomes and comments from the timings so it is difficult to provide a All of our businesses operate in accord report are set out below. snapshot of employee satisfaction with the ethical approach required by in the Group at any one time. our Code of Conduct (available on our • The survey indicated we currently have website), including having a transparent positive stakeholder relationships. • The stakeholder survey also suggested that each business unit should disclose and honest approach when working • WesCEF’s sourcing of some of its with stakeholders. material issues specific to its business, rock phosphate (for the production and also more information on how we At a Group level, Wesfarmers is also of superphosphate fertiliser) from are improving our supply chains. engaged with a wide cross-section of the Western Sahara region in north stakeholders. In addition to the various west Africa was raised by some The survey also demonstrated that our ongoing connections we have with these stakeholders. WesCEF has engaged performance on sustainability issues was stakeholders,only use personal For the following summary with interested parties for several years important to the future of our company. covers the major contact we have had. about the sourcing of phosphate rock Our Code of Conduct and from Western Sahara, and our trade • Customers – feedback via letters, the executive summary of our is in accordance with applicable laws. email and website. Stakeholder Engagement Survey WesCEF has invested more than are available on our website $5 million in a technology seeking www.wesfarmers .com.au to reduce odours created by the manufacturing process when using phosphate rock from other sources,
Wesfarmers Sustainability Report 2012 11 Sustainability at Wesfarmers Engaging our stakeholders (continued)
Doing the right thing – Our people We establish inclusive cultures through Bunnings’ timber actions As one of Australia’s largest private a variety of Group-wide policies and employers, with diverse domestic and processes, including a Code of Conduct, Legally sourced quality products international businesses, we consider a Group Whistleblower Policy, and Equal that can be trusted by all customers our team members to be central to our Employment Opportunity Policy. is a central platform in Bunnings’ success. Employing outstanding people approach towards sustainable timber Gender diversity continues to be a and providing opportunities for them procurement. With a zero tolerance priority for the Group. As at the end to apply their talents is critical to our approach to illegal timber in its of the reporting year, 57 per cent of sustainability. While strong assets and supply chain for a decade, Bunnings our employees are women. Two of strategies are important, it is our people has been proactively engaging with our eight non-executive directors who deliver results. key suppliers, industry groups and (25 per cent), 21 per cent of Wesfarmers’ government to continually look for senior executives (general manager opportunities for improvement in Who are we and where do we work? level or above), and 28 per cent of all sourcing sustainable timber. The majority of our workforce is located management and professional employees in Australia and New Zealand (see across the Group are women. The In 2004, Bunnings became the first figure 1) and our employees worked more Wesfarmers Diversity Policy outlines retail partner of the WWF Global than 219 million hours. This equates to four core objectives which are used Forest Trade Network, an organisation approximately 115,000 full-time equivalent to measure performance in this area. established to end illegal logging and team members. unacceptable timber practices. • Foster an inclusive culture – Wesfarmers is committed to continually Wesfarmers divisions undertake In June 2009, Bunnings was the improving the attraction, development and different initiatives and practices based lead signatory to a joint industry, retention of talented people. We do this by on the needs of their business, such community and conservation group providing great job opportunities, rewards as flexible work practices at senior statement (led by Greenpeace) which for good performance, and safe working levels and paid parental leave. Specific called for a federal government ban environments. Wesfarmers recognises the targets are linked to senior executive on the importation of illegally logged importance of being an inclusive employer, key performance objectives under timber into Australia. Bunnings was because a diverse workforce delivers the annual incentive plan. also part of a Common Platform significant social and commercial value. supporting the Illegal Logging Prohibition Bill, which was presented to the federal government in April 2011. Bunnings now sits on the Advisory Panel for the proposed legislation. Figure 1: Employee numbers in various locations (as at 30 June 2012) Most recently, Bunnings partnered China, India, with WWF in the ‘Love Your Forests’ ASIA Bangladesh campaign aimed at building customer 561 and Indonesia awareness on the benefits of certified timber products. Bunnings also played a significant role in a joint timber New Caledonia industry, retailer and non-government 1 organisation steering group led by NT 1,954 Planet Ark, which developed the first QLD national wood products forum and 39,403
workshoponly use personal For in May 2012. WA 23,556 SA With this ongoing commitment to 12,377 NSW timber procurement, more than 55,215 99 per cent of Bunnings’ whole timber products are now legally VIC 56,074 ACT sourced from low-risk plantations 2,813 or other verified forest operations. NZ UK 6,136 156 TAS 3,384
12 Wesfarmers Sustainability Report 2012 As one of Australia’s largest private employers, with diverse domestic and international businesses, we consider people to be central to our success. Employing outstanding people and providing opportunities for them to apply their talents is critical to our sustainability. While strong assets and strategies are important, it is our people who deliver results.
• Improve talent management – at least Investing in our people The safety of our employees once a year, the Group Managing Given the autonomous nature of our Workplace safety remains Wesfarmers’ Director meets with each division to Group operating structure, training highest priority and we have an obligation review: senior leader performance and development is a core responsibility to do all we can to ensure the safety in the and development; succession plans of the business units. Our recorded workplace of everyone who works for our for critical roles; and the pipeline of commitment in training and development company, our visitors and customers. high-potential leaders. During the exceeded 2.2 million hours across To that end, we have implemented a 2012 financial year, talent reviews the Group. In addition, key human Group-wide review focused on safety were conducted with all divisions for capital development policies and performance, workplace safety behaviour senior manager level employees and practices, including those focused on and improving outcomes. above and included 138 women. senior management remuneration, We have a Group target of reducing This is in addition to detailed talent development and succession planning, accident rates by 50 per cent each year reviews conducted with employees are managed at a Group level. towards a goal of zero. The primary by individual businesses within the measures are the lost time injury Wesfarmers Group. Throughout the frequency rate (LTIFR) and the total Group, all high-potential leaders benefit recordable injury frequency rate (TRIFR). from development opportunities, such 2.2 million as internal and external development hours of training For the reporting period, the Group programs, stretch assignments, and development LTIFR was 10.90 (see figure 2 on page 14), action learning projects, coaching, down from 12.89 for the previous year. mentoring and 360-degree feedback. The TRIFR at year end had increased to 42.67, compared to 40.94 in July 2011. • Enhance recruitment practices – during Innovation is also important to the success the year, 37 per cent of externally of our businesses. If our people continually recruited positions and 30 per cent of innovate, providing better products, internal promotions (all manager level services or solutions to our customers, and above roles) were filled by women. sustainable growth will be generated. 15.4% decrease in LTIFR • Ensure pay equity – a pay audit is Wesfarmers seeks to develop a conducted annually on a Group basis culture that encourages the boldness (which includes a review of gender and creativity necessary to drive pay equity). Results are reviewed by innovation. This year, for the first time There were 2,395 lost time injuries (LTIs) the Board and divisional managing we implemented an Innovation Awards over the year across all businesses in the directors. In addition, a pay equity program. The initiative was run across Group and 9,378 total recordable injuries review of all Wesfarmers divisions was the Group and focused on five categories: (TRIs), which include LTIs and medical undertaken during the year, in line with environment, customer, commercial, treatment injuries. While the improvements previous years, which did not indicate safety and people. The response was in LTIFR and the number of LTIs are any observable discrepancies in pay excellent, with the entries all reflecting a pleasing, we continue to believe that across each level, after taking into high level of innovation quality. account performance, experience, greater performance is both possible location and job nature. In September 2012, we held the and necessary. Wesfarmers Leadership Conference, LTIFR and TRIFR remain the main In respect to workplace relations, which brought together approximately Group-wide measures of safety we recognise the right of those we 400 senior leaders from across the performance. However, operating employ to negotiate either individually Group. The conference provided an businesses are encouraged to use a oronly use personal For collectively, with or without the opportunity to reinforce expectations range of broader measures to promote involvement of third parties. The large for our leadership culture, introduce a more proactive approach and support majority of our employees (more than key leadership insights and opportunities a culture of safe work practices. 80 per cent) are covered by collective for growth, share best practices across agreements. At the same time, the the businesses, and recognise the The number of workers’ compensation company believes in maximising the Innovation Award winners. claims increased slightly from 9,334 in flexibility of workplace arrangements 2011 to 9,380 this year and the Group available to employees and data is shown in figure 3 on page 14. their managers.
Wesfarmers Sustainability Report 2012 13 Sustainability at Wesfarmers Engaging our stakeholders (continued)
Figure 2: Lost time injury • the team from the Blackwoods • a campaign titled ‘Simply Safer’ was frequency rate (LTIFR) Protector distribution centre in run across Bunnings in March 2012 15 Highbrook, New Zealand, developed to seek ideas from team members on a drum trolley to move heavy drums. improving health and safety. More than 12 This has had a significant effect 1,200 ideas were received with many 13.06 9 12.89 in reducing the number of manual being implemented immediately. 10.95 10.90 6 9.94 handling injuries The safety outcomes of our business 10.90 3 • a new positive performance safety units, and the Group data, can be 08 09 10 11 12 0 indicator was introduced at Kmart. found in the Data Bank on page 69. It was implemented to provide feedback to stores on their compliance Our community Figure 3: Workers’ compensation to the operational safety plan. Community contributions claims This assisted with focusing store and partnerships 9,500 efforts and identifying opportunities The continuing successful operation of 9,350 for improvement the Group’s businesses, in an ethical and 9,200 socially responsible way, is the cornerstone 9,378 9,380
9,334 • at CSBP, a business within WesCEF, 9,314 of our contributions to the community. 9,050
0 a strategy was completed to move 4
0 We believe in supporting the communities 8,900 ,
9 to a best practice solution for 9,380 in which we operate by direct and 8,750 08 09 10 11 12 medical, health, injury management, fitness to work and manual handling indirect assistance to organisations and Note: For definitions of LTIFR and TRIFR please refer to activities that provide a public benefit. The the Glossary on page 72. risk management in an industrial environment Wesfarmers Board, in relation to its direct community contributions, gives preference • the launch of a ‘Target your Safety’ to activities focused on medical research To meet the ongoing challenges of DVD at Target, raising team member and health, Indigenous partnerships, creating a safe environment for all the awareness of the major mechanisms education and the Wesfarmers Arts people in our workplaces, there have been of injury; manual handling, hitting program. Our individual businesses may a number of initiatives across the Group stationary objects and slips, trips also provide support in these general which have resulted in positive change. and falls areas, but in addition have community Some of the highlights included: support programs tailored to their business activities, customer base and the communities in which they operate.
Safety training at WesCEF Safety at WesCEF is supported through employee competence in operating complex facilities. This is achieved through training supported by a technical and safety training group within the WesCEF Health, Safety and Environment team. A new model for developing technical training in the Kleenheat Gas Kwinana production facility has been so successful in the last 12 months that the same model is being used in other areas of the business. During 2011, a need to improve knowledge management and develop high-quality training material for plant operations at the Kwinana gas production facility
For personal use only use personal For was identified. After struggling to build momentum it was established that the volume of improvement projects combined with the objective to develop competency‑based training quickly meant external resourcing was necessary. A registered training organisation (RTO) was engaged to gather information from the experts (engineers, supervisors and operators) and develop training modules. What would have been a five-year project using existing training development models has become a two‑year project. Working with the RTO has also enabled training materials to be aligned to National Standards. The developed model has since been used in Kleenheat Gas’s Kwik-Gas plants, with similar success, and will soon be used in other areas of the business.
14 Wesfarmers Sustainability Report 2012 Wesfarmers has long held the belief that to have a healthy business, you must have strong, vibrant communities in which to live and work.
Our direct and indirect community Figure 4: Focus of our direct partnerships and contributions community contributions in 2012 ($m) were $72.24 million in 2011/12. Our direct community contributions were 0.9 per cent of earnings before interest and tax ($3,549 million) and 1.5 per cent of net profit after tax ($2,126 million). $31.82m $72.24m Direct and indirect Community 74.76% community partnerships Health 12.55% and contributions Arts and culture 4.62% Education 2.80% The Woorabinda community To ensure consistent reporting on Environment 2.32% With the diversity of our operations, 1 our Group community contributions, Indigenous people 1.51% and the broad network of our Wesfarmers engages the London Other 1.16% locations, we have many touch points Benchmarking Group (LBG). This allows Emergency relief 0.28% with local communities across both organisations to define their community Australia and New Zealand. As a contributions according to standard Note: 1 Contributions to Indigenous people in this table result, while Wesfarmers Limited has definitions and policies. represents only that support that can be separately identified. Support in other categories also goes in a number of significant partnerships, LBG undertakes a verification process part to Indigenous people and organisations. all of the business units also have across the Wesfarmers Group excluding their own partnerships and initiatives Home Improvement and Office Supplies which have been developed directly (HIOS) and provides a report, as well as a The business unit sections in this with their local community groups. report provide more detail on the verification statement which can be found At Wesfarmers Resources, the on page 67. major community partnerships that our businesses are involved with. The major operations at Curragh have engaged The community contributions from HIOS partners are a large number of community, positively with the Woorabinda were assured by Net Balance as part education and sporting groups in local community in the Bowen Basin for of its overall assurance of this report. communities, organisations supporting several years by supporting job The Assurance Statement on page 70 children, community support and welfare expos, training initiatives at the mine provides specific comment on their organisations, organisations supporting providing career opportunities, community contributions. health outcomes and research and support supporting the delivery of drug and alcohol education to primary school Our total direct community contributions for education and literacy initiatives. children through Life Education this year decreased from 2011, primarily Australia and by visits by the because fortunately there have not been More information on LBG’s Queensland Theatre Company, any large-scale disasters in Australia standard definitions and policies which has brought the arts and and New Zealand. In the previous years, is available at the LBG website skills workshops to the children Wesfarmers and its businesses made www.lbg-australia .com of Woorabinda. significant contributions to emergency Further information on our community relief and recovery following major fire,
For personal use only use personal For contributions can be found in the flood and earthquake disasters. Data Bank on page 69. The large majority of our indirect community contributions were focused on community support, but we are unable to assure this to the level necessary, because most of the funds we facilitate are spent by our partner organisations.
Wesfarmers Sustainability Report 2012 15 Sustainability at Wesfarmers Engaging our stakeholders (continued)
Wesfarmers Arts The award-winning Wesfarmers Arts program continues to provide major ongoing support to a number of premier Australian arts companies. With a focus on increasing the opportunities for the community to experience quality art and culture from Australia and the world, Wesfarmers has been working in partnership with both national and Western Australian arts companies since 1985. Our belief is that a vibrant cultural sector makes a positive contribution to the lives of all Australians. Highlights of the Wesfarmers Arts program included the launch of Wesfarmers Arts as Indigenous Art Partner with the National Gallery of Australia, presenting the Gallery’s national schedule of exhibitions and public Responsible sourcing At 30 June 2012 we had approximately programs and Indigenous art education to While the majority of our expenditure on 3,316 direct importers across the Group communities across Australia. Wesfarmers products, employee costs and services is and during the year 1,497 of these Arts was also announced Principal Partner in Australia and New Zealand, many of our (45.1 per cent) had been engaged in of the West Australian Symphony Orchestra businesses source products from other our verification or audit processes. from 2012 and took on the role as Lead countries, predominantly Asia and India, Audit processes were completed either by Donor in the development of the new State but also from Europe, Africa and South our employees or qualified auditors acting Ballet Centre in Western Australia. America. In our industrial businesses, this directly for our businesses. The purpose sourcing is mainly complex engineering In addition to the arts support program, the of the audits is generally to check products, bulk fertilisers and chemicals company’s nationally recognised Collection compliance and work with suppliers to or other raw materials. of Australian Art is shared with the public rectify any issues found. During the year, through exhibitions and loans to galleries Most of our sourcing of products from 11 factories were deregistered due to across the country. In recent years, in other countries is undertaken by our retail poor social compliance or other reasons. recognition of the company’s increasing businesses and Wesfarmers Industrial These instances are reported in the business presence in New Zealand, the and Safety. Each of these businesses has relevant business unit section of this report. scope of the collection has broadened detailed policies and codes that govern to encompass the work of significant their responsible sourcing activities in contemporary New Zealand artists. other countries, whether the sourcing is directly through manufacturers working 45.1% Wesfarmers also supports the arts through for our businesses, or indirectly through Percentage of our direct various business unit initiatives such as other suppliers. These policies and codes importers engaged in our sponsorship of the Queensland Theatre are supported by extensive audit and assurance processes Company’s regional program by our review systems conducted either by our Resources division and the acquisition businesses themselves, or through relying of Indigenous art works by the Industrial on mutual accreditation audit systems In addition, the phosphate rock (a key input
and only use personal For Safety business unit. with other international retailers. Each for superphosphate manufacture) sourced retail business provides some detail on from a mine in Western Sahara (where their approach to responsible sourcing CSBP buys about three per cent of the in their section of this report and our mine output) is the subject of international progress in this area is regularly reported comment in relation to the status of the to the Wesfarmers Board through the Indigenous Saharawi people of the region. Audit Committee. We have reported on this in previous reports and the WesCEF section of this report again provides an update on our approach.
16 Wesfarmers Sustainability Report 2012 Sustainability at Wesfarmers Reconciliation Action Plan As a large employer, we realise the role we can have in providing genuine, sustainable employment opportunities for all Australians, including Aboriginal Australians. We are committed to ensuring that our businesses are places where Aboriginal and Torres Strait Islander people feel welcome and valued, as employees, customers, suppliers and citizens.
Outcome of workforce surveys (RAP)
Self-identified Aboriginal employees Survey response Business unit Number rate (%) % of respondents 2011 2012 2012 2012 Coles 424 695* NA NA Bunnings 43 121* NA NA Office Supplies 36 53 87 1.1 Target 295 103 22 2.1 Kmart 123 105 54 0.7 Insurance 16 12 85 0.6 Resources 24 17 98 2.6 WesCEF 9 9 54 1.2 Industrial and Safety 41 47 83 1.9 Corporate Office 1 2 80 1.1 Group total 1,012 1,164 62 1.1 * Survey not conducted in 2012. This data represents 2011 data plus new employees in FY12 who self-identify as Aboriginal.
Our Reconciliation Action Plan (RAP) Building relationships We appreciate the critical importance of outlines the measurable actions we are All of our business units had team strong leadership in relation to our RAP. committed to across the Wesfarmers members who participated in the Jawun We have prioritised activities that build Group, with an overarching goal of having Secondment Program. This year we the cross-cultural competence of our a workforce that reflects the diversity of provided 18 one-month secondees and leaders; to date, senior managers in six the communities in which we operate. one three-month secondee. We also business units have completed cultural sponsored the inaugural Jawun Emerging awareness training. Leaders Tour, in which 11 emerging leaders Main highlights Welcome to Country and Acknowledgement Creating opportunities from four Jawun regions were involved in a of Country protocols were observed at Over the past year, three business units specialised regional tour, sharing learnings major events, including the Wesfarmers and Corporate Office implemented and receiving leadership training. 2011 Annual General Meeting. Aboriginal employment programs with Many business units have been focused customised recruitment, training and Wesfarmers continues to support Aboriginal on developing relationships with Aboriginal support mechanisms. An additional four communities and cultures through its Arts community members, organisations business units supported community- program. During the year, Wesfarmers was and service providers to support their driven Aboriginal employment programs. announced as the inaugural Indigenous Art Aboriginal engagement and employment As a result, our overall Aboriginal employee Partner of the National Gallery of Australia, strategies. For example, WesCEF team numbers increased from 1,012 to 1,164. presenting the Gallery’s national schedule of members participated in Kwinana, This is 0.6 per cent of our total employees. Aboriginal exhibitions, public programs and (Western Australia) Aboriginal community education. The Wesfarmers Arts National events and the Wesfarmers Industrial and Indigenous Arts Fellowship program, also Safety Indigenous Steering Committee in association with the National Gallery, held a meeting at the National Centre of 15% entered its third year, with 32 individuals increase in employees Indigenous Excellence in Redfern, Sydney. from Aboriginal communities across self-identifying as Within the Wesfarmers Group, we have Australia participating in the Fellowship Aboriginal
For personal use only use personal For an established Wesfarmers Indigenous Leadership program since its inception Network, a forum where all business units in 2010. can share Aboriginal engagement and Nearly all of our business units entered into employment learnings. Our full report against the actions purchasing relationships with businesses identified in our 2012 RAP and certified by the Australian Indigenous Fostering respect the 2013 RAP can be found Minority Supplier Council (AIMSC). Building respect and understanding under the ‘Reports’ section of Aboriginal people and their cultures at www.wesfarmers .com.au within our businesses is an important aspect of our RAP.
Wesfarmers Sustainability Report 2012 17 Looking after our environment A healthy environment is a fundamental right and expectation of all communities. With operations that include retail outlets, coalmines, chemical, energy and fertiliser manufacturing, and insurance, Wesfarmers’ activities are complex and widespread. We have a responsibility to all of our stakeholders to manage our
operations in such a way that it reduces our environmental footprint. For personal use only use personal For
18 Wesfarmers Sustainability Report 2012 Sustainability at Wesfarmers
Looking after What does our greenhouse emission reporting cover? Reporting greenhouse emissions across many different business activities, under our environment a variety of legal and voluntary reporting mechanisms, has the potential to create confusion in understanding our emissions. We are continually trying to improve both the methodology we use to calculate our emissions and the communication of that information, while maintaining the accuracy required for our corporate governance and the requirements of the external assurance and auditing we undertake. The basis of our greenhouse emission and energy use data in this report is the National Greenhouse and Energy Reporting Act 2007 (NGER Act) in Australia (where more than 99 per cent of our emissions occur). The NGER Act covers only Scope 1 and 2 emissions, but does not include some significant emission sources (such as the sodium cyanide business at our Kwinana operations). The data under the NGER Act is also bound by the concept of operational control which means, for example, that emissions from a business part-owned by Wesfarmers but operated by a third party is not included (an example is Air Liquide WA within WesCEF which is reported by Air Liquide Australia). However, to assist in understanding our total emissions profile we include various Scope 3 emissions Minimising our environmental in this report (including electricity and gas transmission; waste disposal and waste water footprint treatment; air travel emissions; an estimate of transport emissions in our supply chains; Looking for innovative solutions with good and the Scope 3 emissions associated with liquid and gaseous fuel use). The diagram commercial and environmental outcomes below provides a summary of these emissions and how they are additional to our NGER is critical to the sustainable success Act reports.Greenhouse As a result, gas someemissions of our data is not directly comparable year on year, but of our businesses. Taking a long-term where possible this is explained. approach to managing our businesses is not only good for the environment, but it contributes to the resilience and Greenhouse gas emissions NGER Act1 sustainability of our businesses as well. Scope 1 & 2 emissions 4,666,196 With the diversity of our Group, each of tonnes CO2e our businesses face different challenges in their management of the environment, 68.4% which in turn means our responses vary widely. This year for the first time, we are reporting Transport emissions Non-NGER Act2 5 both absolute and relative metrics for our in supply chain Wesfarmers Group Scope 1 & 2 emissions greenhouse gas emissions, water use 650,925 total 286,214 tonnes CO2e tonnes CO2e and energy use. Using relative measures 6,818,568 provides a more accurate comparative 9.6% tonnes CO2e 4.2% measure across a number of years, FY11 = 7,698,837 despite potential changes in business operations, for both our company and in 11.4% reduction comparison to other similar organisations. During the year, Wesfarmers sold two Equity share subsidiaries:only use personal For Wesfarmers Premier Coal of joint venture/ Scope 3 Limited (Premier Coal) in December 2011; investment emissions4 emissions3 and Energy Generation Pty Ltd (enGen) in 347,018 868,215 August 2011. Data covering the ownership tonnes CO2e tonnes CO2e period is included in the Data Bank on 5.1% pages 68 and 69. However, it is not 12.7% included throughout the rest of the report. 1 Audited by Ernst & Young (FY11: 5,044,231). 2 Assured by Net Balance (FY11: 564,978). 3 Assured by Net Balance (FY11: 740,082). 4 Provided by entities from their FY12 NGER Act records (FY11: 589,546). 5 Estimate based on data and assumptions, assured by Net Balance (FY11: 760,000).
Wesfarmers Sustainability Report 2012 19 Sustainability at Wesfarmers Looking after our environment (continued)
Greenhouse gas emissions In our NGER Act report for 2011/12, Figure 6 displays our decrease in NGER Wesfarmers is committed to reducing Wesfarmers recorded 4,666,196 tonnes Act reported emissions in the four years of our relative and absolute greenhouse gas carbon dioxide equivalent (CO2e) reporting under these laws. emissions, and all of our business units (Scope 1 and 2 emissions). This is a In our 2011 NGER Act report, enGen have initiatives and programs in place to decrease of 7.49 per cent compared and Premier Coal reported a combined to the 5,044,231 tonnes CO e reported minimise and reduce these emissions. 2 total of 160,836 tonnes CO e, including in the 2010/11 NGER Act report. 2 By measuring reported emissions per 138,231 tonnes CO2e (Scope 1) and million dollars of revenue at the Group 22,605 tonnes (Scope 2). The combined level (see figure 5) it is possible to track contribution of the businesses we sold the changes in our emission intensity over 7. 4 9 % during the year, in the period they were time against the indicator of business reduction in NGER owned by Wesfarmers in 2011/12, was performance. Over the past 10 years Act emissions approximately 75,666 tonnes CO2e. there have been significant changes in This includes 64,736 tonnes CO2e (Scope the Group’s business activities, including 1) and 10,930 tonnes CO2e (Scope 2). the acquisition of the Coles Group (in This decrease in reported emissions These emissions are reported in the 2007), significant increases in production under the NGER Act occurred primarily footnotes to the Group data in the Data at our industrial businesses and extensive in WesCEF and Coles (through a Bank on page 68. growth in our retail businesses. These mixture of emissions abatement and We are also an investor in two joint relative metrics are also reported in each energy efficiency initiatives) as well as ventures and a company in Australia business unit section of this report. the sale of Premier Coal and enGen. which report under the NGER Act: the Bengalla mine in the Hunter Valley, New South Wales (40 per cent-owned by Wesfarmers and operated by Coal and Allied); Queensland Nitrates Pty Figure 5: Wesfarmers’ greenhouse gas emissions (tonnes CO2e per $m revenue) Ltd at Moura in Queensland (50 per 316.4 Acquisition 313.6 310.8 of Coles Group cent‑owned by Wesfarmers and operated Limited 265.4 271.6 as a separate management entity); and 239.7 the 50 per cent-owned Wespine sawmill in 182.8 Western Australia. Our equity share of the 2011/12 emissions 123.5 118.3 115.7 100.2 reported under the NGER Act by these three businesses is 347,018 tonnes CO2e. 02 03 04 05 06 07 08 09 10 11 12 The 2011/12 NGER Act reports by these
1 Revenue data is sourced from the Wesfarmers annual report for the relevant year. businesses and Wesfarmers will be 2 Greenhouse emissions are sourced from the Wesfarmers sustainability reports for the relevant year and include published in February 2013. Scope 1, 2 and 3 emissions. In addition, each year we estimate the greenhouse emissions created from Figure 6: Wesfarmers’ greenhouse gas emissions (Scope 1 and 2) transport operations in our supply chains as measured under the NGER Act from 2009 to 2012 (tonnes CO2e: ’000) (calculated as the emissions created in transport from the final supplier to our 6,000 distribution centre, factory or mine site).
5,000 In 2011/12, this estimate is 650,925 tonnes For personal use only use personal For CO2e compared to 760,000 tonnes 4,000 CO2e in 2011. The decrease is primarily 3,000 related to more accurate measurement of shipping emissions from our maritime 2,000 transport suppliers. 1,000 0 2009 2010 2011 2012 Scope 1 Scope 1* Scope 2 Scope 2* Total Total* Note: *Displays the 2012 result if Premier Coal and enGen had remained with the Group and emitted to their 2011 level.
20 Wesfarmers Sustainability Report 2012
Figure [x]: Greenhouse gas emissions
(CO2e) per $m revenue
313.6 316.4 310.8
265.4 271.6 239.7
189.3
128.4 118.3 115.8 [xxx.x] 02 03 04 05 06 07 08 09 10 11 12
1. Revenue is sourced from the Wesfarmers Annual Report for the relevant year 2. Greenhouse emissions are sourced from the Wesfarmers Sustainability Reports for the relevant year and include Scope 1,2 and 3 emissions Wesfarmers is well-prepared for the implementation of the Clean Energy Act 2011, with work undertaken to address our compliance requirements and ensure our customers and suppliers are treated fairly.
Further details on several of these Competitiveness Program (a program to initiatives can be found in the relevant provide support for trade-exposed and 5,820,625 business unit sections of this report. energy intensive businesses) established tonnes of CO e by the legislation. In preparing for the 2 As part of our efforts to reduce emissions, carbon pricing scheme we are also total direct and indirect we continue to contribute to a major reviewing the impact on our supply chain greenhouse emissions emissions reduction initiative, the Coal21 and training employees at many levels fund, which levies coal producers to about the requirements of the Australian Our total direct and indirect (Scope 1, fund research into low emission coal Competition and Consumer Commission 2 and 3) greenhouse emissions for the technologies. To date we have contributed in respect to potential product price Group in 2011/12 were 5,820,625 tonnes $5.5 million to the Coal21 fund and changes related to the new legislation. CO2e. This figure excludes our equity our total contribution is likely to reach share of joint venture and transport $30 million over 10 years. This work ensures we can understand and address the compliance requirements emissions in our supply chain as we From 1 July 2012 a carbon pricing of the legislation while ensuring our have no direct operational control over scheme began operating in Australia customers and suppliers are treated fairly. these activities. (under the Clean Energy Act 2011) This was 528,951 tonnes CO2e below alongside the similar emissions trading The carbon pricing legislation in emissions reported last year on the scheme operating in New Zealand. New Zealand continued, although the government has announced its intention same basis, largely due to a significant Wesfarmers is well-prepared for the to legislate to defer the full carbon price investment across the Group in energy implementation of these laws, having implementation until 2015. Our New efficiency initiatives, particularly in Coles; largely completed a set of complex tasks. Zealand-based greenhouse emissions emission abatement activity in the This involves emission monitoring and were 10,332 tonnes CO chemicals business in WesCEF; and analysis changes in the businesses, 2e Scope 1 and 2. the increasing impact of the mandated review and development of our NGER Act reports Renewable Energy Target on the reporting procedures and policies, and can be found online at greenhouse intensity of Australia’s publicly development of carbon accounting www.cleanenergyregulator.gov.au available electricity generation systems. policies. It also includes additional Further information on our auditing and assurance for the Jobs and greenhouse emissions can be found in the Data Bank on page 68.
Reducing our greenhouse gas emissions The ammonium nitrate business at CSBP (part of WesCEF) is achieving a significant reduction in greenhouse gas emissions through ongoing trials of nitrous oxide abatement technology. The technology, which uses specialised catalysts that convert the greenhouse gas
nitrous oxide (N2O) to inert nitrogen gas, was installed in one of the two nitric acid plants at Kwinana, Western Australia, in February 2012, following trials the previous year. With progressive performance optimisation, current measurements demonstrate an
emissions improvement of up to 85 per cent N2O abatement. In June 2012, alternative greenhouse gas abatement catalyst technologies were For personal use only use personal For installed in the second Kwinana nitric acid plant and, in the first week of operation, achieved similar total abated emissions. The abatement improvements obtained to date have not come without considerable investment in time, effort and cost. Despite these issues, the trial work has provided a solid basis for CSBP to further optimise the set-up of its equipment and select the best combination of catalysts for its expanded nitric acid facilities at Kwinana. Further refinements in performance remain a key focus of the ammonium nitrate
N2O abatement team.
Wesfarmers Sustainability Report 2012 21 Sustainability at Wesfarmers Looking after our environment (continued)
Energy The NGER Act does not require us to Energy use and its relationship to carbon report for Premier Coal and enGen emissions and business costs are a 30.00 (sold during the year), but their combined significant consideration for the Group. petajoules energy use was 0.98 petajoules during For a number of reasons, energy prices total energy used the ownership period. are rising quickly in many jurisdictions, by the Group The Wesfarmers Energy Efficiency and the combination of carbon constraints Opportunities report is available and price rises places additional focus on Of this total energy, approximately on our website under the energy efficiency initiatives. 18.79 petajoules related to process inputs ‘Community & Sustainability’ In addition to our internal focus on energy (mainly natural gas) and liquid fuels used tab at www.wesfarmers .com.au efficiency, Wesfarmers is registered under in our industrial and mining operations, The Wesfarmers NGER Act the federal government’s Energy Efficiency which was a decrease of 15.6 per cent report will be published on Opportunities Act 2006 (EEO Act), which on last year. Energy use in the remaining www.cleanenergyregulator.gov.au incorporates assessment of at least businesses was 11.21 petajoules, in February 2013. 88 per cent of all Wesfarmers’ energy a decrease of 2.5 per cent. use. We submitted our fourth public Further information on our energy This is different to the energy use that and government reports under the EEO use can be found in the Data Bank will be reported in the Wesfarmers legislation in December 2011, and the on page 68. NGER Act report for 2012, due to legal public report is available on our website. and definitional issues required by the The total energy use for the Group in NGER Act. Specifically, it relates to natural 2011/12 was 30.00 petajoules, a decrease gas passed through our Kleenheat of approximately 11.1 per cent on last production facility at Kwinana, Western year following the sale of Premier Coal Australia, which is not actually converted and enGen. to product or combusted, but which has to be counted in the NGER Act report (7.54 petajoules).
Improving our energy efficiency As a large energy consumer, Coles started implementing a variety of long-term energy efficiency strategies for its stores a number of years ago, including introducing night blinds on refrigeration cases and automatic lighting controls so that stores minimise lighting during non-trading periods. Another recent initiative is to reduce the height of refrigeration cases in more than 100 stores. By lowering the height of the produce, meat and dairy cases, the opportunity for cold air to leak is reduced. This will have a benefit of 15 per cent in energy savings – or $20,000 per year per store. The cases are being retrofitted rather than replaced, to prolong their life and improve their efficiency. At the same time, Coles
For personal use only use personal For will take the opportunity to retrofit the cases with more efficient fans and install LED lights, which not only save energy but reduce added heat in the refrigeration cases.
22 Wesfarmers Sustainability Report 2012 Our businesses are continuing to look for ways to minimise their water use, as well as improve the ways we measure water consumption.
Water Figure 7: Major sources of water Carbon Disclosure Project Across the Group, our estimated scheme, Wesfarmers again participated in the surface and groundwater use was Carbon Disclosure Project (CDP) in 13,151 megalitres. 12.0 2012. Our submissions are available on the CDP website and provide 16.5 full disclosure on our greenhouse 50.8 13,151 emissions and our approach to megalitres 20.7 climate change issues. total water usage In 2012, Wesfarmers was one of the for the Group few Australasian companies to again Public scheme water 50.8% participate in the Carbon Disclosure Last year’s estimated total Group Surface water 20.7% Project (Water) research survey. consumption was 12,107 megalitres. Recycled and re-used water 16.5% The Wesfarmers submissions This increase is largely due to higher Groundwater under licence 12.0% and responses to the Carbon production in chemicals manufacturing Disclosure Project are available at Wescef (where water is a significant at www.cdproject.net process input for cooling purposes) Recycled and re-used water now and growth in our Coles business, represents 16.5 per cent of our total including more effective water metering to water use. improve data quality. Further information on our water We are continuing to improve the accuracy consumption can be found in the Our total water use included of this data in the areas where we estimate Data Bank on page 68. 1,584 megalitres of groundwater (largely water use, particularly for retailers other at our mine sites and industrial operations); than Bunnings, where shared facilities are 2,166 megalitres of treated water from common. Coles in particular is installing recycled sewage waters at Wescef’s a significant number of additional water chemical manufacturing operations at meters in its stores to better measure Kwinana, Western Australia and Coregas and manage water use, which has been at Port Kembla, New South Wales, the most significant factor in our reported and 2,720 megalitres of surface water water use increase this year. harvested at our Curragh mine.
Working to reduce water consumption As food security becomes an increasing issue both in Australia and overseas, Coles has started to explore areas of collaboration on issues such as water use with key suppliers. One of these has been the apple and pear orchard and packing business, Geoffrey Thompson Group. In 2011, Geoffrey Thompson Group (Jeftomson) processed more than 30,000 tonnes of fruit, about half of which found its way into Coles’ supermarkets. Fruit is mainly sourced from the Shepparton, Harcourt and Cobram growing districts, but to ensure consistent supply, the business has relationships with another 10 producers in Western Australia, Tasmania, South Australia and Queensland.
For personal use only use personal For With demand for fruit in Australia and overseas continuing to be strong and supply commitments from Coles, Jeftomson is investing to build its capacity to 40,000 tonnes of fruit by 2016. Not surprisingly, water is a vital resource and cost to manage. To help facilitate the expansion of the business, Jeftomson will sell the Commonwealth 394 megalitres of water for a nominal $1,900 per megalitre, and in return invest $1.5 million in irrigation modernisation projects which will result in annual water savings of 542 megalitres.
Garry Parker, Managing Director Geoffrey Thompson Holdings Ltd, at the water pump at the Shepparton orchard
Wesfarmers Sustainability Report 2012 23 Sustainability at Wesfarmers Looking after our environment (continued)
Waste and packaging All of our retail businesses are signatories to the Australian Packaging Covenant (APC) through the registration of Wesfarmers Limited. The APC is a voluntary packaging waste reduction and recycling initiative underpinned by the National Environment Protection (Used Packaging Materials) Measure 2011. All of our retail businesses reported on their activities (against our agreed Action Plan for 2010-2014) in March 2012. During the year, our businesses recovered 248,170 tonnes of packaging or organics for eventual recycling (an increase of 16.7 per cent on the previous year) and disposed of 158,325 tonnes of waste to landfill. This is a 7.6 per cent increase on waste disposal compared to last year.
24 8 ,170 tonnes of material recovered for recycling
Some significant achievements included: Doing the right thing – Bunnings’ pallet initiative progress in reducing the packaging used Across the Group, a focus on packaging reduction and efficiencies has resulted in a to transport and store a range of products number of initiatives and improvements over the year. in Kmart and Target; an APC-funded program with Coles in Victoria At Bunnings, a reverse logistics trial has been implemented for the re-use of pallets encouraging the recovery of soft plastic by removing them from 62 selected stores across the Australian Capital Territory, bags for recycling into outdoor furniture; New South Wales, Queensland and Western Australia. and the enhancement of the significant The unused load capacity of delivery trucks has been leveraged to collect and recycling of packaging resources in remove plain and unbranded pallets for return to the transport hub for re-use and our retail operations. Further detail is distribution of product back to stores. contained in various business sections of this report. The trial resulted in 12,576 pallets being recovered, cost savings of $107,116, and avoiding 513 tonnes of CO e emissions to landfill. During the year, the Product Stewardship 2 (Televisions and Computers) Regulations In addition, there is reduced congestion at store level, which results in a cleaner and 2011only use personal For came into force. These regulations safer site for customers and team members. require entities that manufacture Due to these encouraging results, the program will be expanded to additional stores. or import television and computer equipment in Australia to enter a contractual arrangement with parties approved by the regulator to fund the recovery and recycling of obsolete and discarded equipment.
24 Wesfarmers Sustainability Report 2012 All of our retail businesses are signatories to the Australian Packaging Covenant and reported publicly on their activities to reduce unnecessary packaging.
Under the regulations, the target in Non-compliance/prosecutions Site contamination 2012/13 is to recycle 30 per cent by Any non-compliances with environmental Remediation of site contamination is weight of the television and computer regulations or any prosecutions relating to an issue for some of our businesses. equipment imported or manufactured environmental issues during the year are Wesfarmers Limited is responsible for in the previous year, rising to 80 per cent disclosed in the various business reports. the remediation of several sites that were by 2021. leased or owned by businesses sold many Of our businesses, Officeworks, Coles, National Pollutant Inventory years ago and financial provision has Kmart and Target are involved, and Wesfarmers Resources and WesCEF been made to cover the estimated cost Wesfarmers has entered into a Product are required to report under the National of these activities. Pollutant Inventory (NPI). Full details Stewardship Agreement with DHL The WesCEF business CSBP is engaged are available on the NPI website, with Supply Chain (Australia) Pty Ltd to achieve in the remediation of a former fertiliser site 2011/12 data expected to be available in these objectives. Over time, the capacity at Bayswater in Western Australia, which February 2013. for Officeworks stores to receive used has been reported on previously. Active computing equipment for recycling will remediation has concluded at the site be extended across Australia. Environmental expenditure and activity now relates to monitoring and Total environmental expenditure, including the statutory audit processes prior to site Liquid waste data is difficult to collect land remediation costs for 2011/12, is redevelopment. for most of our facilities because it is $90.58 million. represented by unmetered discharges During the year, Wesfarmers made some to public sewerage systems and in Environmental expenditure significant progress at a site in Manjimup, some cases liquid wastes delivered Total environmental expenditure, including Western Australia that was formerly owned to appropriate treatment plants. Our land remediation costs for 2011/12, is by Sotico (a subsidiary of Wesfarmers). Curragh coalmine also discharges $90.58 million. $90.58m At the time of report preparation we are ground and rainwater from its mine environmental expenditure planning the final review and investigation voids under licence with the relevant activities required to allow us to seek authorities. CSBP (a WesCEF business) reclassification of the site under the at Kwinana, Western Australia, has provisions of the Contaminated Sites a licence (under the Environmental This compares with last year’s total of Act 2003. Remediation outcomes at Protection Act 1986) to discharge waste $34.96 million. The difference is largely a site in Kewdale, Western Australia, water into a treated public waste water due to our continuing focus on voluntary have progressed to the stage where system that eventually discharges to energy efficiency investments, and a Wesfarmers will seek a similar regulatory the Indian Ocean. Most of this effluent general expansion of related work across outcome for that site by the end of 2012. passes through CSBP’s nutrient-stripping the Group. These costs include salaries Monitoring and risk assessment wetland before discharge. and overheads, specific environmental continued at former locations owned or projects and any other costs (such as fees Our agreed APC Action managed by Wesfarmers Transport in paid to consultants and capital expenses) Plan is available at Kewdale, Carnarvon and Port Hedland for an environment-related purpose, www.packagingcovenant.org.au in Western Australia. which can include emission reduction, effluent management, revegetation and The Resources and WesCEF energy efficiency. reports under the NPI are available
at www.npi.gov.au For personal use only use personal For
Wesfarmers Sustainability Report 2012 25 Sustainability at Wesfarmers Driving our performance
Figure 8: Economic contribution ($m) FY2009 FY2010 FFY2011 FY2012 Driving our Sales and operating revenue 50,982 51,827 54,875 58,080 Cost of goods, services etc 40,496 41,028 43,426 45,800 performance Value added by Wesfarmers1 10,486 10,799 11,449 12,280 Wages and salaries and other benefits 6,269 6,533 6,790 7,156 Dividends paid to shareholders 1,102 1,446 1,735 1,909 Interest paid on borrowings 816 616 472 445 Income tax and other government payments 1,216 1,130 1,287 1,499 Reinvested in the business 1,072 1,036 1,111 1,212 Capital expenditure2 1,503 1,656 2,062 2,626 Depreciation and amortisation expense 856 917 923 995 1 In addition to the value added shown above, Wesfarmers made direct community contributions of $31.82 million (included in cost of goods and services) and facilitated indirect contributions to community organisations and charities of a further $40.42 million. Source: Wesfarmers Limited Annual Reports 2009, 2010, 2011, 2012 (audited). 2 Cash paid for purchases of property, plant and equipment and intangibles.
Economic contribution Our major operating business interests in Wesfarmers is one of Australia’s largest the full-year covered by this report include publicly-listed companies and one of the supermarkets, liquor and convenience stores; home improvement and office $12,280m country’s largest private-sector employers, value added supplies; general merchandise and with approximately 500,000 shareholders by Wesfarmers and 200,000 employees. apparel; coal mining; insurance; industrial and safety products distribution; chemical and fertiliser manufacture; and gas production and distribution. More than 95 per cent of our revenues Approximately and earnings are derived from our Key indicators of the Group’s financial Australian operations. 500,000 performance indicators are summarised in figure 8. We are one of 20 Australian companies shareholders selected for inclusion in the Dow Jones Our operations make a significant Sustainability World Index for 2012. contribution to the economies of Australia We are also included in the Dow Jones and New Zealand and other countries, As a result, both directly and indirectly, Sustainability World Index in the Asia particularly through our product- there are people in many countries with Pacific region (DJSI World – Asia Pacific). sourcing activities. These contributions a shared interest in the sustainable DJSI is a set of five indices which included more than $7,156 million paid in future of Wesfarmers. Our capacity to evaluate the performance of companies salaries, wages and other benefits to our continue to provide satisfactory returns to worldwide based on voluntarily provided employees, dividends to our shareholders shareholders and support for the various submissions. interests of our stakeholders, including totalling $1,909 million and $1,499 million suppliers, customers, community groups paid to governments at all levels in the The DJSI assessment (with assessments and charities, government entities or form of taxes, levies and royalties. against the DJSI criteria) of Wesfarmers public interest groups, is an important part over the past five years is set out below
of our sustainable operations. in figure 9. For personal use only use personal For
Figure 9: Dow Jones Sustainability World Index (%) Dimension 2008 2009 2010 2011 2012 Environmental 51 67 72 78 76 Social 63 57 50 69 63 Economic 64 69 71 62 64 Total for Wesfarmers 61 64 64 68 67 Average in our industry group 46 47 45 48 44 Source: DJSI Investor Reports from the relevant years.
26 Wesfarmers Sustainability Report 2012 The Wesfarmers Board has adopted a series of governance charters and policies that underpin our corporate governance framework.
Governance Wesfarmers is committed to operating A copy of our Privacy Policy, Wesfarmers is a strong advocate of in a manner consistent with laws Group Whistleblower Policy, good corporate governance. relating to anti-bribery and corruption. Anti-bribery Policy and Code The Wesfarmers Anti-bribery Policy of Conduct is available on our The Wesfarmers Board has adopted a applies across the Group and prohibits website under the ‘About Us’ tab series of governance charters and policies bribery and other forms of related at www.wesfarmers .com.au that underpin our corporate governance improper conduct such as facilitation framework. The Board recognises that payments, secret commissions and corporate governance is not a static money laundering. The policy sets out concept, and it regularly reviews and the requirements that apply to gifts and updates the company’s governance hospitality, dealings with public and charters and policies by reference to government officials, accounting and corporate governance developments and record keeping, and also identifies the best practice in Australia and overseas. controls that must be implemented when A detailed account of the governance a Group company proposes to engage a structure and responsibilities of third party to act for or on its behalf, such Wesfarmers Limited, including the role and as due diligence, the use of appropriate responsibilities of the Board, can be found contractual terms, and the oversight of the in the Corporate Governance Statement in work undertaken by that third party. the 2012 Annual Report pages 57 to 64 or In addition to the policy itself, the on our website. Group has developed a comprehensive We also have a number of key corporate compliance program in support of the governance documents available on policy. The compliance program involves our website. Specifically, this year training for relevant team members, we have reviewed and updated our detailed obligations in respect of gifts Code of Conduct for employees, our and entertainment, and ongoing reporting Anti-bribery Policy and our Group obligations to ensure compliance with Whistleblower Policy. the policy. The Code of Conduct reflects the Group’s All of these documents are important in high standards and expectations of preserving the Group’s high standards of ethical behaviour and integrity from behaviour and supporting our employees team members. in their work. The Group Whistleblower Policy Wesfarmers and its businesses are encourages team members to raise committed to meeting the requirements any concerns and report instances of the relevant privacy legislation and/ of unethical, illegal, fraudulent or or standards in the jurisdictions in which undesirable conduct, where there are we operate and the Code of Conduct, reasonable grounds to suspect such our Privacy Policy and relevant business conduct, without fear of intimidation, unit policies and procedures support disadvantage or reprisal. this objective. The Wesfarmers Anti-bribery Policy is Apart from developing and overseeing also available on our website and sets the governance processes and policies outonly use personal For the responsibilities of our businesses for the company, as part of its broader and team members in observing and responsibilities the Board has also upholding the prohibition on bribery reviewed and endorsed this Sustainability and related improper conduct, including Report. The Board’s Audit Committee providing some guidance on how to (comprised of non-executive directors) recognise and deal with instances of oversees and reviews the appointment bribery and corruption. of external assurers and auditors and the company responses to any assurance commentary or findings.
Wesfarmers Sustainability Report 2012 27 Coles
About our business Highlights Safety performance We are one of Australia’s leading Coles Community Food Lost time injury frequency rate retail businesses, with brands with SecondBite including Coles and Bi-Lo In September 2011, we announced 20 supermarkets, First Choice Liquor, a national partnership with Liquorland, Vintage Cellars, Spirit not-for-profit food rescue 15 17.45 16.98 Hotels and Coles Express. organisation, SecondBite, to donate 12.99 10 15.55 12.87 surplus healthy fresh produce 12.99 We employ over 100,000 team and bread to community food 5 members and operate more programs all over Australia. During 0 08 09 10 11 12 than 2,200 outlets. Over 18 million the year, 208 stores joined ‘Coles transactions take place in our Community Food with SecondBite’ stores each week. and our donations represented more Greenhouse gas emissions Tonnes CO2e:’000 Our business goal is: ‘To give the than 852,000 meals provided to 3,000 120 people of Australia a shop they trust, people in need. 2,500 delivering quality, service and value’. Plastic packaging trial 2,000 80 2,978,518 In September 2011, we expanded 1,500 2,938,829 2,523,808 Year in review 2,530,856 2,401,609 1,000 2,401,609 40 As part of our ‘Australia First’ our in-store plastic bag recycling service with funding from the 500 sourcing policy, we continued to 08 09 10 11 12 Australian Packaging Covenant to 0 0 support Australian farmers and Greenhouse gas emissions (LHS) Tonnes CO e per $m of revenue (RHS) produce. Some of our initiatives include plastic packaging as part of 2 included replacing 7,000 tonnes a trial in 114 Victorian supermarkets. a year of imported cheese as part Between September 2011 and Energy use of a new five year contract with May 2012, more than 23.5 tonnes Petajoules 8 300,000 Bega Cheese Limited, based in of soft plastic product packaging New South Wales, and launching were returned to Coles by customers 6 7.39 7.29 7.27 7.08 a new brand of cheeses and milk, and saved from landfill. The waste 7.02 4 150,000 called ‘Great Ocean Road’, with will be turned into outdoor furniture 7.08 Warrnambool Cheese and Butter. and donated to schools and 2
kindergartens. 0 08 09 10 11 12 0 Energy use (LHS) Megajoules per $m of revenue (RHS)
Water consumption Megalitres 4,000 0.12
3,000
3,858 0.08 Coles Online and hybrid trial 2,000 2,983 2,709 0.04
Two hybrid vans (diesel/electric) 3,858 2,170 1,000
for food home deliveries are being 1,725 trialled in Burwood, New South 0 08 09 10 11 12 0.00 Water consumption (LHS) Wales, with a view to rolling out Megalitres per $m of revenue (RHS)
hybridonly use personal For vans for Coles Online deliveries nationally. The vans can turn off the diesel motor Community contributions A$m when stationary in traffic and use stored battery power at other 25 Direct times to reduce fuel consumption. 09 12.36 20 10 7.32 The vans have been fitted with 11 15.61 22.31 15 21.92 12 19.04
monitoring devices to measure 21.92 19.72 10 Indirect fuel efficiency and emissions. 09 7.36 5 10 1.85 9.17 11 6.70 0 09 10 11 12 12 2.88
28 Wesfarmers Sustainability Report 2012 With WWF-Australia, we reviewed the ecological sustainability of more than 80 per cent of the fresh wild caught fish sold from our fish counters during the year, as part of our commitment to only source responsibly fished and farmed seafood by 2015. In February 2012, a sustainable seafood message was introduced to all Coles seafood counters across Australia to make it easier for shoppers to identify a sustainable choice.
Responsibly fished Coles’ pole and line caught tuna is the first responsibly fished supermarket brand tuna to be sold in Australia WWF partnership WWF has conducted more than 300 wild caught seafood reviews for Coles since the partnership was announced in March 2011
Improved customer offer Coles’ frozen fish offer now includes four products which are certified by the Marine
Stewardship Council For personal use only use personal For
Ken Tricos, Fishmonger, Coles Tooronga, Victoria
Wesfarmers Sustainability Report 2012 29 Coles (continued)
Sow-stall free pork During the year, we made good progress to deliver on our commitment to phase out sow-stall produced pork products. We have approved 19 farms to cater for our South Australian supermarkets and since March 2012, all fresh pork cuts supplied to our supermarkets in this state were sow-stall free. Cage free eggs We also finalised our ‘Egg Production Standard’, which defines our requirements for barn laid and free range eggs and have commenced auditing farms against this standard to meet our commitment to cease selling Coles brand cage eggs by 2013.
People and training Of our team members, 93.7 per cent work in stores and 6.3 per cent in store support and logistics. Permanent team members now represent 66 per cent of our total workforce, compared to 59 per cent last year due to our strategy of offering permanent part-time In 2010, an internal survey found positions in preference to hiring that 262 team members identified casual workers. themselves as Aboriginal or Torres 2,800 Strait Islander and to date this has team members grown to 695. Further details about trained in the 695 ‘Coles Way’ team members our Coles Aboriginal and Torres self-identified as Strait Islander Plan can be found on our website at www.coles . Aboriginal or Torres More than 2,800 team members com.au/About-Coles/Community/ Strait Islander and 1,900 store leaders were also Indigenous-Plan.aspx trained in the ‘Coles Way’, which During the year, we continued This year, 800 team members is designed to deliver high quality to drive diversity in our business completed our Supermarkets Retail fresh produce for our customers and through the launch of our ‘First Leaders program taking the total improved ways of working for our Step’ Indigenous employment to more than 2,500 since it was team members. launched in 2009. The program and only use personal For engagement programs in We also provided 125 apprentice- continues to be our key development Sydney, Cairns (Queensland), ships for butchers and bakers due program for team members looking Mirrabooka (Western Australia), to our new design stores offering to move into store management. Darwin and Canberra. Funding customers cut meat upon request from the Department of Education, A Retail Leaders program for Coles and in-store baked bread. Employment and Workplace Liquor commenced in January 2012 Relations is assisting us to and 40 team members completed provide 205 job opportunities in the program, which will continue in the coming year. the coming year.
30 Wesfarmers Sustainability Report 2012 Safety The estimated water consumed by Cash for Containers Our move to an integrated injury our supermarkets was 2.4 gigalitres, The Cash for Containers Scheme commenced across management system during the year and during the year we installed the Northern Territory on 3 January 2012. It is consistent has contributed to faster intervention smart meters in 119 supermarkets with the South Australian approach, and we are working and a greater focus on return to around Australia to better track, with our suppliers to ensure that all eligible beverage work, reducing our LTIs and new trend and report water consumption. products sold by Coles have been approved under claims compared with last year. Real-time data is collected via a the Scheme and meet new labelling requirements. website and any abnormal usage Our LTIFR was 12.99 for the year, or leakage by a store can be down 23 per cent on last year. immediately investigated. Waste and recycling % This year our recycling rate improved 23 to 60.5 per cent from 58.5 per cent, LTIFR reduced largely due to redirecting a higher to 12.99 volume of surplus food from our supermarkets to people in need.
Significant improvements were seen in the injury rates for supermarkets, logistics and Coles Express, each 60.5% achieving reductions of more than recycling rate 25 per cent. Following a national program of musculoskeletal assessments and upgrading back-of-house shelving Through our programs with and walkways, Coles Express had SecondBite and Foodbank and a 26 per cent decline in manual organic recycling at 129 stores, handling injuries. we have diverted 7,446 tonnes of food waste from landfill. Our logistics team achieved a significant reduction in its 2013 We recycled 143,854 tonnes of workers’ compensation premium cardboard, paper, plastic and metal as a result of a long-term and and sent 98,902 tonnes of waste sustained approach to safety to landfill. Bioplastic meat trays and claims management. Plastic bag bans In May 2012, Coles became the first Australian Bans on the issue of single use light supermarket to introduce meat trays made from Environment weight plastic bags in the Northern bioplastics. The meat tray has been developed by Water Territory and the Australian Capital Plantic Technologies and is manufactured from This year, we estimated that our total Territory commenced in 2011. Coles 80 per cent renewable resources (corn starch), water usage was 3,858 megalitres, offers these customers a range of requiring less energy to produce when compared to 29.3 per cent higher than last year. alternative shopping bag options, other types of plastics used for meat trays. A life cycle including green reusable bags, chiller assessment shows that over the course of 12 months bags and reusable plastic bags. the impact of Coles adopting the Plantic eco Plastic™
For personal use only use personal For Televisions and computers trays will save more than 13 million kilowatt hours of 3,858 energy and cut carbon emissions by 5,000 tonnes. megalitres The Product Stewardship (Televisions total water usage and Computers) Regulations 2011 have been introduced. Coles will participate in a co-regulatory This increase can largely be attributed arrangement with other Wesfarmers to a change in the methodology businesses to facilitate a consumer that has allowed us to improve our recycling program. estimation of water used by our convenience stores and liquor stores.
Wesfarmers Sustainability Report 2012 31 Coles (continued)
Packaging improvements During the year, evidence of unfair working conditions Since assessing more than carbon emissions at a factory in Bangladesh was brought to our attention 1,800 Coles-branded products by a third party. This factory has been independently against the sustainable packaging 5% reaudited, and a corrective action plan put into place. guidelines, which are part of the compared to No new orders have been placed with the factory Australian Packaging Covenant, last year by Coles. we have improved and re-rated Additionally, we request suppliers operating in low-risk packaging for 55 products from In preparation for the federal regions to provide a self-assessment of their compliance red to green. For example, non- government’s Clean Energy Future with our ethical sourcing policy. During the year, recyclable film on ‘Coles Smart legislative package, we have sought 162 suppliers completed this self-assessment. Buy Sardines in Tomato Sauce’ to mitigate our energy use and was replaced with a recyclable Fostering and supporting effective relationships carbon emissions through a range board sleeve, making the product’s with our many suppliers is a critical part of ensuring of initiatives, including installing packaging completely recyclable. Coles remains a sustainable business. In particular, voltage optimisation technology in Recycling instructions have also we are moving to many long-term supply contracts 182 stores during the year, which been added to the packaging to with suppliers, both growers and manufacturers in allows us to draw less energy from make recycling easier for customers. Australia, to provide confidence for investment and the public grid and reduce store innovation. Two booklets, ‘Coles – Proudly Supporting As part of relaunching Coles’ fresh power consumption. Australian Made’ and ‘Coles – Backing Australian organic range in 2012, packaging We have also undertaken a range of farmers and food companies’, are located on our was reviewed to identify areas where research and development projects website and provide further details of our relationships excess packaging could be removed to identify future initiatives that will with our suppliers. In addition, Coles has a number of or more sustainable packaging improve the efficiency of lighting, internal guidelines and standards concerning ethical materials could be used. refrigeration and climate control at behaviour for our employees who deal with suppliers. Environment protection and our stores. For example, we are Coles Express combining our refrigeration and air This year, Coles Express worked conditioning plants into one system with Shell Australia and its for new stores and refurbishments contractors in New South Wales in the coming year, which, as well to implement the Vapour Recovery as lowering installation costs, is Regulation. The aim of the regulation estimated to deliver a seven per cent is to reduce the amount of toxic and saving in energy consumption. smog-forming pollutants released at service stations. Governance Biofuels Ethical sourcing In 2011, our ethanol blended fuel Each year, we undertake risk (E10) was withdrawn from Coles assessments in our supply chain Express sites in Queensland and and assess our suppliers against Victoria due to supply constraints internationally recognised standards and state government mandates for ethical sourcing. This year, Truganina distribution centre ceasing. We continue to supply E10 we audited 113 suppliers out of In 2012, operations commenced at an 80,000 square in New South Wales at 167 sites 214 operating in non-Organisation metre distribution centre at Truganina in the west where the Biofuels Act 2007 for Economic Co-operation and Development member countries. of Melbourne, to service 195 supermarkets across imposesonly use personal For a mandate. Of these audits, one critical Victoria. A rainwater harvesting system using roof Carbon and energy non-conformance was identified drainage will provide most of the site’s annual water Our estimated total carbon which related to a Thai supplier. supply requirements for irrigation and toilet flushing. emissions were 2,401,609 tonnes, This was resolved swiftly and Intensive use of translucent roof sheeting means which is five per cent lower than last an action plan put into place to lights can be turned off on many days and sensor year and equates to 70.4 tonnes of prevent reoccurrence. and photoelectric lighting controls switch off lights CO2e per million dollars of revenue, automatically, providing substantial energy savings. down 10.5 per cent on last year.
32 Wesfarmers Sustainability Report 2012 Ingredients and labelling Liquor and gaming Palm oil Coles operates 92 hotels and In 2012, we surveyed Coles brand 81 gaming rooms. Most of these suppliers to determine how much hotels are in Queensland, where palm oil is being used in our we are required to own them products. This will allow us to identify under state legislation in order to other products to be converted to retail liquor. We are committed to Sarah Johnson using certified sustainable palm oil responsible gaming and service of Part-time and meet our commitment to only alcohol and demonstrate this through Customer Service Operator at Coles use certified sustainable palm oil compliance training programs for team Berwick, Victoria for Coles brand products by 2015. members and working cooperatively Sarah describes Artificial colours, MSG and allergens with government and regulators herself as a During the year, we removed artificial, to support harm minimisation ‘green warrior’ colours and added monosodium measures where required. for her store. When customers glutamate (MSG) from all Coles Recent initiatives include: come through brand food and drink products and • adopting the national gaming Material issues her checkout and improved our labelling of allergens principles, outlined by federal have forgotten Our business focuses on five key to make it easier for customers who and state ministers to bring their shop with food allergies in mind. areas to improve our sustainability: reusable bags, • supporting the Queensland Sarah is not shy Nutritional labelling Government’s ‘No Minor Offence’ • training and development of our about reminding We applied Daily Intake (DI) campaign to raise awareness of the team members them that the nutritional labelling to new packaging plastic bags they risks and penalties of irresponsibly • customer trust in our product are using can be launched this year for Smart Buy supplying liquor to minors and a range, value and quality recycled and to products and in response to similar campaign in Victoria bring them back legislation being introduced in New • water saving and energy • joining DrinkWise Australia, to Coles on their South Wales in 2013, we introduced efficiency of our stores an independent, not-for-profit next visit. Little kilojoules labelling on display tickets • workplace safety organisation focused on promoting wonder then that for some ready-to-eat foods, such the Berwick store change towards a healthier and • supporting the local communities as deli salads and hot chickens. was one of the safer drinking culture in Australia. in which we operate best performing Salt reduction stores in the We are currently participating recent flexible Community involvement plastics recycling in industry-wide salt reduction Coles contributed $21.9 million to trial held at 114 programs. Since the start of the community programs and charities supermarkets federal government’s food and during the year, of which $2.9 million during the year. health dialogue roundtables in 2010, was via fundraising with customers, ‘I’m also very we have avoided 40 tonnes of salt team members and suppliers motivated about from being added to bread and and $19 million was our direct sustainable seafood.’ Sarah more than 14 tonnes from being contribution in cash and in-kind. is currently added to cereals. studying to become a Senate milk inquiry teacher. ‘As part The final report by the Senate $21.9m of my course, Economics Reference Committee community I’ve done coastal into the impacts of supermarket contribution studies and price decisions on the dairy industry developed a was released in November 2011. In teaching session During the year, approximately on over-fishing responding to the report, the federal government noted the findings of $10 million in sports equipment and what can was distributed to more than be done about the Australian Competition and it. I’m really Consumer Commission in July 7,500 schools across Australia as part proud of that 2011 that there was ‘no evidence of our Sports for Schools program. work and how that Coles acted in breach of the We continue to be the Cancer we can teach the younger (Competition and Consumer) Act Council’s largest fundraising partner generation to in relation to milk discounting’. and in July to August 2011, our make changes Tobacco supermarkets and Coles Express and different As part of a range of measures to stores raised more than $1.7 million choices that for the Cancer Council Helpline protect the reduce smoking rates in Australia, (13 11 20), bringing our total since environment. legislation to introduce plain 1996 to over $11 million. That’s what packaging for tobacco products I particularly will start on 1 December 2012. To As well as supporting our national love about our ensure the smooth implementation charity partners and programs plastic recycling For personal use only use personal For program. Getting of plain packaging, we are reviewing during the year, Coles Indigenous schools involved a range of operational issues, Food Fund dispersed $180,000 to and teaching including ticketing, service kiosk support suppliers and growers of young children layouts and team member training. bush foods during the year. As at is a great way During the year, Queensland 30 June 2012, more than 20 bush to change food products in the Coles Outback the future,’ was the final state in Australia said Sarah. to introduce a retail display ban Spirit range sold through Coles on tobacco products. The ban supermarkets feature a donation to requires us to ensure that all the Food Fund and this is expected smoking products are not visible to grow in the coming year. to customers.
Wesfarmers Sustainability Report 2012 33 Home Improvement and Office Supplies Bunnings
About our business • improving the sustainability Safety performance Bunnings is the leading retailer of attributes in our supply chains Lost time injury frequency rate home improvement and outdoor for the products we sell living products in Australia and • optimising our energy use and 15 New Zealand and a major supplier to waste management. project builders, commercial trades 14.56 10 13.79 13.41 13.28 people and the housing industry. Our commitment to our ‘we live here 13.28 12.53 too’ philosophy delivered benefits 5 Operating from a network of large to the local community, with our warehouse stores, smaller format Australian and New Zealand stores 0 08 09 10 11 12 stores, trade centres and frame raising more than $27 million and and truss manufacturing sites, supporting more than 42,000 team Bunnings caters for consumer member-led community activities. Greenhouse gas emissions* and commercial customers. Tonnes CO2e:’000 All our warehouses held free DIY 250 35 Sales revenue during the year was 30 workshops throughout the year, with 200 $7.2 billion. At year end, there were sustainability-focused workshops 25
206 warehouses, 58 smaller format 150 240,069 20 providing customers with practical 221,634 stores, 36 trade centres and five 100 210,620 15 186,525 advice on sustainable living. 240,069 179,046 10 frame and truss centres operating 50 We continued our zero tolerance 5 across Australia and New Zealand. 0 08 09 10 11 12 0 approach to illegally logged * Excludes commercial Greenhouse gas emissions (LHS) At 30 June 2012, we employed more timber in our supply chain by air travel. Tonnes CO2e per $m of revenue (RHS) than 32,000 team members. only sourcing timber products from low‑risk plantations or other Energy use Year in review verified legal or certified sustainable Petajoules This year, we continued to progress forest operations. 1.0 150,000 initiatives across our sustainability 0.8 Our Australian stores achieved a 140,000 agenda aimed at: 0.87
0.6 0.82 130,000 0.77
waste recycling rate of 65 per cent, 0.73 0.87 0.69 • actively supporting the local a nine per cent lift on last year’s 0.4 120,000 communities in which we recycling rate. We also conducted 0.2 110,000 operate to deliver real worth evaluations in emerging energy 0 08 09 10 11 12 100,000 efficient lighting technology such Energy use (LHS) • assisting and educating our Megajoules per $m of revenue (RHS) customers on how to live more as power factor correction and sustainably at low or no cost commercial rooftop solar systems. Water consumption Megalitres 1,000 0.020
800 0.015 869 600 844 732 Team member diversity 717
691 0.010 Diversity is integral to the success 869 400 0.005 of our business. Our team spans 200 six generations and our mature age 0 08 09 10 11 12 0.000 Water consumption (LHS) workers add value to our team and Megalitres per $m of revenue (RHS)
provideonly use personal For mentoring opportunities for our younger team members. Many of our mature age workers Community contributions A$m bring with them a range of valuable professional and life skills from their 40 Direct 09 3.61 former careers and understand the 10 2.03 importance of customer service. 30 11 3.28 12 2.82 27.79 20
27.79 Indirect 26.37 09 11.92
10 20.09 10 18.06
15.53 11 23.09 0 09 10 11 12 12 24.97
34 Wesfarmers Sustainability Report 2012 We have a history of taking real action towards reducing our impact and building a more sustainable business.
Community involvement Bunnings is committed to our ‘we live here too’ philosophy and participating in the communities in which we operate by contributing to local, regional and national causes throughout Australia and New Zealand
Sustainable products We are committed to providing customers with products that allow them to live sustainably at a low cost, such as compost bins, garden kits, energy efficient
lighting, and insulation For personal use only use personal For
Effie Pensa, Activities Organiser Caroline Springs Warehouse, Victoria
Wesfarmers Sustainability Report 2012 35 Home Improvement and Office Supplies Bunnings (continued)
People We continue to recognise the Investing in team member importance of a truly diverse development is a key priority. workforce with regard to gender, age More than 690,000 hours of and ethnicity. Last year, 3,320 of our training were undertaken by our team members were 60 years or team focused on products, service, older, including 391 team members leadership and safety. who were over 70 years old. We also continue to integrate team member awareness and involvement in Indigenous initiatives by creating 690,000 opportunities through a number hours of training of localised programs. We aim to increase the participation of women in leadership roles by providing Team members painting a rundown cottage for special needs sustainable career paths from entry children at a school in Mickleham, Victoria During the year, we extended level onwards. We will continue ‘Authentic Leadership’, our primary to employ team members from Community involvement development program for senior a diverse range of backgrounds, Our ongoing commitment to community involvement leaders. The program’s principles as we believe this is what makes was a part of the first Bunnings Warehouse in 1994 at have been integrated into existing our team great. Sunshine where that team built a children’s playground. leadership programs. Our Australian and New Zealand teams make it a A number of initiatives were run Community priority to engage in localised and meaningful actions throughout the year to increase safety Through our ‘we live here too’ with the community and give a helping hand to a variety awareness and address areas of philosophy, participating in our of community groups, schools and charities. We have risk. During the March ‘Simply Safer’ local communities is an integral part assisted the community this year through fundraising campaign, we gathered more than of the Bunnings business and we sausage sizzles, DIY projects and renovations, local 1,200 ideas from our team on how contribute to a diverse range of local, fundraising activities, community workshops, team we can improve safety onsite, with regional and national programs in member involvement, product contributions and many ideas implemented quickly. Australia and New Zealand. financial assistance. Improvements were made to the This year, our Australian and packaging and shelf location of New Zealand teams supported more our bulkier products to make it than 42,000 community activities Through our ongoing local community support we were easier and safer for our team and including over 1,400 activities able to contribute and help raise more than $27 million. customers to lift and move them. through the Bunnings Schools This assistance was made possible through fundraising Sustainability Program. Australian sausage sizzles, DIY projects and renovations, local Despite a decrease in serious stores also continued participation fundraising activities, community workshops, team member incidents throughout the year, there in Planet Ark’s Schools Tree Day by involvement, product contributions and financial assistance. was an increase in our all injury working with schools to plant native frequency rate* from 36.6 to 38.8. trees in the community. Stakeholder engagement (public policy) In response, a reinvigorated safety We continue to engage and build relationships with different strategy targeting our known injury Bunnings’ Australian stores also levels of government and non-government organisations hot spots and high risk activities is supported a number of organisations (NGOs) to identify further opportunities to work together. being implemented. through locally driven activities. These included local emergency In 2012 we continued to play an active role in promoting For personal use only use personal For services groups, The Salvation Army, a proposed ban on the importation of illegally logged timber. Legacy, and the St Vincent de Paul We continue to work with WWF as a Global Forest 1% Society, amongst many other local and Trade Network (GFTN) member and with Forest LTIFR decreased community organisations. Stewardship Council (FSC) Australia as a retail partner. from 13.41 to 13.28 Our New Zealand stores supported Bunnings was part of a joint timber industry, retailer and organisations such as the Child NGO steering group led by Planet Ark, which developed Cancer Foundation, The Heart the first national wood products forum and workshop in Foundation, and Clean Up New May 2012. This event assisted in overcoming obstacles and Zealand Week, and continued promoted the uptake of certified timber products. * The AIFR measurement is the same calculation as their support of Christchurch’s TRIFR in this report. earthquake rebuilding activities. 36 Wesfarmers Sustainability Report 2012 We have a strong partnership This year, we diverted approximately with Sustainability Victoria. In the 64 per cent by volume of this waste Bunnings – 2013 priorities past year, Sustainability Victoria via various recycling and packaging • Continue to explore energy delivered more than 500 in-store initiatives, up from 60 per cent last reduction measures to reduce training programs to team members year. During the year, we disposed our long-term carbon footprint on sustainability related rebates of 22,061 tonnes of waste to landfill, • Maintain our contributions to and products. recycled 17,861 tonnes of cardboard improve the social wellbeing of and paper, 2,670 tonnes of plastics Education and awareness the communities in which we and 10,184 tonnes of other recyclables During the year, we supported operate in sincere, localised including timber. Earth Hour, Recycling Week, World and meaningful ways Environment Day and National Water As part of Bunnings’ ongoing • Continue to find ways Week with sustainable living DIY commitment to improving product to help customers live workshops and activities. packaging efficiency, we worked with sustainably at a low cost or our store-based Green Action Groups. We participated in four showerhead no cost with more sustainable Stores identified product packaging exchange product stewardship product development opportunities which improves their programs in Victoria and Western • Increase work with suppliers fitness for purpose and will help reduce Australia, exchanging more than to reduce supply chain waste product being sent to landfill. 48,100 showerheads. resource waste and achieve To reduce our waste to landfill we greater packaging and Environment extended a trial for the re-use of waste transport efficiencies We are committed to minimising our timber pallets. We have 62 stores • Continue to work closely with impact on the environment, including participating in this initiative, which suppliers to maintain ethical energy efficiency measures, water involves returning waste pallets to the supply chains conservation, responsible sourcing, transport hub for re-use. • Reinvigorate efforts to achieve packaging reduction, recycling and The trial has resulted in 12,576 pallets Ralph Mayn positive safety performance continuing our focus on sustainable being recovered, cost savings of Team member, timber procurement. outcomes DIY $107,116 and avoiding 513 tonnes of Burleigh Heads Energy CO2e emissions to landfill. Warehouse, We continued to install energy Queensland An organic waste recycling stream efficient e-tronic lighting technology – six years at for greenlife organic waste from our Bunnings in new stores and stores undergoing nurseries has been implemented in refurbishment, with 41 stores now Ralph Mayn has 16 stores with larger nursery areas. been a team completed. We also continue to member at our implement light emitting diode (LED) Ethical sourcing Burleigh Heads lighting in outdoor areas as standard Bunnings has a zero tolerance Warehouse for in the new store design brief. approach to illegal timber in its supply six years and chain. It is a condition of supply that regularly visits We also continue to closely evaluate independent verification is undertaken schools in the the feasibility of emerging energy of legal origin as a minimum for all local community efficient LED high-bay lighting as part of the products made completely from technology for our stores. Bunnings tropical hardwoods. Schools Greenhouse emissions All of our timber products are sourced Sustainability Our total greenhouse gas emissions Program. Ralph from low-risk plantations or other (excluding commercial air travel) is one of many verified legal or certified sustainable were 240,069 tonnes of CO e, which team members 2 forest operations. Approximately 88 in Australia and is eight per cent up on last year. per cent of timber products are from New Zealand These emissions were largely due to Green Action Group team members certified sustainable sources, including who take part electricity consumption at our stores. assessing garden products to in this program 29 per cent that are FSC-certified. reduce packaging throughout the The significant expansion of our store Our New Zealand operations year, aimed at network has an obvious flow-on Material issues continue to work collaboratively educating and impact on the activities that affect engaging with with the government, industry • In the short-term, significant our total carbon footprint. Despite students on and environmental organisations reductions in our total carbon this, our carbon intensity remained sustainable living. to encourage sustainable timber footprint may be affected stable at 3.4 tonnes of CO e per ‘I can go to a 2 procurement. by constraints of current school about $100,000 of revenue. technology and its commercial As part of our Responsible Sourcing sustainability application, but this will improve and talk to kids Water Program, Bunnings became a Scheme water use was 869 as emerging energy efficient about saving the member of Sedex (Supplier Ethical megalitres, which is an increase of lighting and more effective micro planet, marking Data Exchange) in 2012. This trees, doing 19 per cent overall. Notwithstanding renewable power generation membership improves transparency their garden. the significant expansion in our store systems become more viable Kids love all that in our supply chains in the areas of
For personal use only use personal For network, it is pleasing to note that stuff and those labour standards, health and safety, • Although there are less serious the intensity of our water use has things relate to environmental management and injuries occurring in our reduced by 31 per cent compared to kids. They know business integrity. business, we are still injuring that the guy the intensity of water use five years more people each year as our from Bunnings is We continued our factory accreditation ago. Our water conservation and business expands, employs actually talking program for products we directly reduction efforts continue with the more team members and about things import. Major overseas factories installation of rainwater tanks and gets busier in existing sites. that they are are audited to a Code of Conduct interested in.’ capillary mats in all new stores. The challenge remains to based on the International Labour achieve a downward trend in Reducing waste and recycling Organization conventions. During We continue to work towards our our injury performance the year, a total of 196 audits 85 per cent waste diversion target. were conducted. Wesfarmers Sustainability Report 2012 37 Home Improvement and Office Supplies Officeworks
About our business Safety performance Officeworks is Australia’s leading Lost time injury frequency rate retailer and supplier of office 11. 2 % products and solutions for home, LTIFR decrease 15 business and education. from 12.17 to 10.81 12 With more than 6,000 team 9 12.17 12.30 11.95
members, we cater for a broad 10.81 10.81 6 10.40 range of customers that include The decrease in LTIFR can be small-to-large size businesses, attributed to the cultural change in 3 0 08 09 10 11 12 students and teachers, health team members’ behaviour in safety care services, private, public and as a consequence of the launch of government organisations, as well the Stay Safe System. There was Greenhouse gas emissions* as personal shoppers. also a favourable decrease in the Tonnes CO2e:’000 total recordable injury frequency rate 80 50 We provide our customers with three (TRIFR) over the reporting period 40 convenient ways to shop: a national 60 from 36.2 to 35.9 or by 1.0 per cent. network of retail stores; online at 30 65,975
40 65,000 63,362 20 www.officeworks .com.au, via the We continued to support 65,975 55,522
Officeworks smartphone and tablet MobileMuster, the Australian 20 n/r 10 applications and Facebook’s Shop & mobile phone industry’s product 0 08 09 10 11 12 0 Share application; or by telephone/ stewardship program, with our Greenhouse gas emissions (LHS) * Excludes air travel. Tonnes CO e per $m of revenue (RHS) fax at our customer service centres stores providing a point of collection 2 in Melbourne and Sydney. for our customers to responsibly dispose and recycle their unwanted Energy use Year in review mobile phones, batteries and Petajoules 0.25 200,000 During the year we opened six new accessories. Our collection of Officeworks stores. At 30 June 2012, over 2,900 kilograms of mobile 0.20 0.22 0.21 there were 139 Officeworks stores phones and accessories has 0.15 0.21
0.17 150,000 and two Harris Technology business more than doubled our previous 0.22 0.10 0.06 centres operating across Australia. year’s collection. We developed 0.05 our first EcoOK business supplies We remain committed to providing a 0 08 09 10 11 12 100,000 catalogue with the aim of simplifying Energy use (LHS) safe place to work, with a focus this the decision-making process for our Megajoules per $m of revenue (RHS) year on taking personal responsibility customers where they seek to buy for safety and wellbeing. There has environmentally preferred products. been an 11.2 per cent decrease in Water consumption Megalitres LTIFR at 30 June 2012. 60 0.05 50 0.04 52 52 40 50 0.03 Cartridges 4 Planet Ark 30 0.02 During the year, Officeworks was 52 20
n/r n/r 0.01 recognised by ‘Cartridges 4 Planet 10 Ark’ as its most efficient collection 0 08 09 10 11 12 0.00 Water consumption (LHS) partner, with our stores returning Megalitres per $m of revenue (RHS)
up toonly use personal For 75,000 cartridges a month in 2012. Since we joined the program eight years ago our customers Community contributions A$m have recycled more than 2.9 million cartridges. 1.5 Direct 09 0.49 1.2 10 0.51 11 0.97 1.35 1.06 0.9 12 1.01 1.06 Indirect 0.6 0.49 0.51 09 n/r 0.3 10 0.00 11 0.38 0 09 10 11 12 12 0.05
38 Wesfarmers Sustainability Report 2012 We are focused on being a responsible, supportive and informative member of the local communities in which we operate.
Ethical sourcing Rolled out a Supplier Code of Conduct and a Responsible Forest Products Procurement Policy to ensure ethical sourcing for our paper and timber products
Community support We continued our support of the Australian Literacy and Numeracy Foundation (ALNF) through the sale of our reusable ‘Helping Kids Grow’ jute bag
EcoOK catalogue Released the first EcoOK range and business supplies directory to help customers make environmentally
sensitive purchasing For personal use only use personal For decisions
Pranan Kinariwala, team member Officeworks Vermont South, Victoria
Wesfarmers Sustainability Report 2012 39 Home Improvement and Office Supplies Officeworks (continued)
We are committed to supporting People Environment charitable organisations and During the year, we launched the We continued our focus on product community activities and during the Stay Safe Program to help simplify stewardship initiatives in partnership year we contributed to a variety of and align the injury management with MobileMuster and Cartridges local and national programs. procedures, forms and tools. The 4 Planet Ark. Recycling stations are All of our stores supported Blue program was developed to help provided for customers at the front September to raise funds for leaders understand the injury of all our stores, with collections of management process in order to mobile phones and accessories Callan Date the Australian Cancer Research Desert Feet Tour Foundation and Bowel Cancer help facilitate early return to work increasing by 102 per cent to strategies. Various other initiatives 2,914 kilograms from the previous In April 2012, Australia and Australia’s Biggest Callan joined Morning Tea to raise funds for The were also launched during the year, period. Ink and toner cartridge including a Stay Safe postcard which recycling increased by 17 per cent the Desert Feet Cancer Council. Our Officeworks Tour, a program stores also supported appeals for was sent to all team members’ with a total of 698,451 units diverted aimed at bringing ANZAC Day and Remembrance home addresses reminding them from landfill. music concerts to focus on safe behaviours while at and workshops Day, where fundraising merchandise Three Officeworks stores continued work. A poster was also developed into remote was sold to support the Returned a recycling trial for batteries, for display at stores to act as a Indigenous and Services League of Australia, and two Officeworks stores are communities in reminder of safety choices, and the United Returned Soldiers Fund currently taking part in Byteback Western Australia. team members facilitated discussion New South Wales and the ANZAC for the collection and recycling of The secondment around key risk areas through cluster Day Commemoration Committee computers. The learnings from the opportunity was communication meetings. initiated as part Queensland. Byteback scheme have contributed of an agreement We also supported a variety of to the implementation of the National between projects and organisations such Television and Computer Recycling Officeworks and Desert Feet. as education facilities, sporting 64% Scheme. Officeworks is a liable party of management ‘This has been a bodies, Scouts Australia, Girl under the Product Stewardship positions were held truly life changing Guides Australia, aged-care centres, (Televisions and Computers) by females Regulations 2011 and has signed up event and I healthcare facilities, Rotary Clubs and am grateful to Lions Clubs through activities such as to a co-regulatory arrangement. both the Desert community barbeques, gift cards and As at 30 June 2012, our workforce Our total water usage during the Feet team and team member volunteering, as well as was equally represented by males year was 52 megalitres. This was Officeworks for allowing me to facilitating customer donations. and females. There were 601 extrapolated from more than participate in Our total contribution to local management positions, and of these 5,000 days of billing from 29 it ... if just one communities during 2011/12 was positions 64 per cent were held free‑standing stores. child’s life was changed for the $1.06 million. by females. Through our Climate Survey, 53 team members identified better during our Nullagine trip, themselves as Aboriginal and/ well that’s worth or Torres Strait Islander, up from 52 megalitres all our effort right 36 in the previous reporting period. there.’ Callan $1.06m total water usage community saw the work that Desert Feet contribution does to improve education, Indigenous
reconciliation For personal use only use personal For and awareness. Officeworks provided educational resources and stationery supplies, which Callan distributed to the children he visited on the tour.
40 Wesfarmers Sustainability Report 2012 Our total recycling increased to 2,939 tonnes and waste to landfill also increased to 2,314 tonnes. Our greenhouse gas emissions have increased by 1.5 per cent to 65,975
tonnes CO2 equivalent (excluding air travel). 2,939 tonnes of waste Team member Mandy Magee and children recycled at a school fete in Virginia, Queensland
Material issues Ethical sourcing • Continue contributing to the health In May this year, we joined Sedex, and wellbeing of the communities EcoOK range a not-for-profit organisation in which we operate During the year, we published the first Officeworks responsible for driving supply chain • Looking after our team members eco-friendly business supplies catalogue. improvements in responsible and and making Officeworks a great The EcoOK range of products aims to simplify ethical business practices. Sedex will place to work the decision-making process for environmentally further enhance our understanding • Improving our environmental preferred products for our customers. Products of suppliers’ performance in labour reporting and reducing our stores’ are eligible for inclusion in the EcoOK range if they standards, health and safety, the environmental footprint pass our three-stage assessment process. The environment and business ethics. assessment criteria includes product specification, During the year, we implemented • Continue focus on our ethical level of risk and considers all third party certification our Supplier Code of Conduct sourcing program, in particular programs, standards and endorsements for and Responsible Forest Products the transparency of our forest environmentally preferred products. Procurement Policy. We also sent products supply chain and ethical our first forestry survey to our local business practices and international suppliers of forest- • Providing our customers with based products. We are currently information about products reviewing the results of the survey and services which lower their to ensure that our suppliers conform environmental impact and help to our policy. them to make environmentally
sensitive purchasing decisions For personal use only use personal For
Wesfarmers Sustainability Report 2012 41 Target
About our business As part of our ongoing commitment Safety performance Target is a leading mid-tier retailer to ethical sourcing, this year we Lost time injury frequency rate where style, quality and experience improved our reporting processes create value for our customers. and data management as a result 10 of a full review. Our team of more than 22,000 seeks 8 9.34 We continue to reduce our energy 9.20 8.14* 7.97 to put our customers at the heart of 6 8.01 consumption from air conditioning every decision we make. 8.01 4 within stores with a progressive Today our customers can shop at 2 implementation of variable * Figure restated due to a 301 stores nationwide and from our reclassification of claims. 0 08 09 10 11 12 temperature settings that are linked online store at shop.target .com.au to outside conditions and controlled Key product ranges include fresh air levels. In addition, standards Greenhouse gas emissions ladieswear, intimate apparel, for automated controls for reduced Tonnes CO2e:’000 menswear, childrenswear and lighting outside of trading hours 250 120 nursery, accessories and footwear, were reinforced and power factor 200 homewares, electrical, toys and correction units were installed 80 244,995
150 239,827 231,090 230,545 other general merchandise. in selected stores to improve 219,858 100 energy efficiencies. 231,090 40 Year in review 50 The total community contribution 08 09 10 11 12 During the year, we started a 0 0 was valued at $3.43 million, Greenhouse gas emissions (LHS) journey to provide a better shopping Tonnes CO2e per $m of revenue (RHS) and we continued to make a experience for our customers. We positive difference through our remain committed to embedding support of national and local sustainability into our business and Energy use community initiatives. Petajoules making it a focus of everything we do. 1.0 220,000 In the area of safety, we engaged 0.8 0.84 0.6 0.82 0.82
our store team with an educational 0.77 $3.43m 0.76 110,000 DVD to improve awareness of safe 0.77 0.4 community work practices. We continued to contribution 0.2 invest in the development of our 0 08 09 10 11 12 0 team through our Future Leaders Energy use (LHS) program, women’s mentoring events Megajoules per $m of revenue (RHS) and increased opportunities for Indigenous employment. Water consumption Megalitres 350 0.2 300 339
250 311 306 Alannah and Madeline 200 0.1 Foundation 150 306 100 n/r n/r Building on our $1 million milestone 50 in 2010, we have since donated 0 08 09 10 11 12 0.0 Water consumption (LHS) another $500,000 to reach Megalitres per $m of revenue (RHS)
$1.5only use personal For million for The Alannah and Madeline Foundation’s Buddy Bags Program. In December 2011, we Community contributions A$m launched Australia’s first certified biodegradable and reusable shopping 3.5 Direct 09 0.99 bag to further boost our fundraising 3.0 10 1.44 2.5 3.43 11 1.10 for this important charity. The new 3.12 3.08 12 1.38 biodegradable bag is designed to 3.43 2.0 2.67 1.5 Indirect break down in compost under the 09 1.68 right conditions within two months. 1.0 10 1.64 0.5 11 2.02 0 09 10 11 12 12 2.05
42 Wesfarmers Sustainability Report 2012 We continue to implement a range of initiatives to minimise our impact on the environment.
Reusable shopping bags In December 2011, we launched Australia’s first certified biodegradable and reusable shopping bag
Supporting our community Building on our $1 million milestone in 2010, we have since donated another $500,000 to The Alannah and Madeline Foundation’s Buddy Bags Program
Diversity in our workplace At the end of the reporting year, 44 per cent of Listening to management roles were our customers held by women, up three Our Customer Insights team per cent from last year continued to monitor customer
For personal use only use personal For perceptions. The research has led to the introduction of our Target Essentials range and our Target Tested campaign
Nicole Peck, Chief Financial Officer Target Caroline Springs, Victoria
Wesfarmers Sustainability Report 2012 43 Target (continued)
People In March, 10 store managers Safety participated in an Indigenous Action In 2011/12 we maintained our Plan Forum to learn more about commitment to the safety and building relationships with Indigenous development of the Target team communities, raising cultural through rigorous implementation awareness within our teams and of our SafetyCARE system at all increasing Indigenous employment. sites. This year, our LTIFR was 8.01, Target also continues to support the slightly down compared to last Jawun Secondment Program, with year’s result of 8.14. one of our store managers completing a secondment in Shepparton, Victoria, and our new Managing Director attended the Jawun Executive 1.6% Leadership Program. decrease in LTIFR from 8.14 to 8.01 Training and development This year we continued to expand our development programs and foster At Target, effective health and the knowledge and skills of our team. safety programs are driven During the year, 398 team members through strong leadership and by completed our successful Future educating our team members. It is Leaders program. After graduating, important to us to foster a culture our future managers continue with that empowers everyone to be the Target Store Leadership program, responsible and accountable for which provides effective learning health and safety. In March 2012, and development. We currently have we launched a campaign including 616 team members enrolled in this posters and a DVD titled ‘Target program. To date, 11 team members your safety’. It highlighted the three have graduated with Diplomas in hazards that result in the highest Business Management and a further number of incidents: manual 30 team members are currently handling; hitting stationary objects; undertaking this qualification. In 2012 we commenced the development We continued to implement packaging reduction in selected and slips, trips and falls. These areas, including women’s intimate apparel and footwear. hazards will continue to be a key and implementation of a Target focus in 2012/13. Another way we graduate program. Reducing unnecessary packaging engage our team is through our In May 2012, Target was awarded silver in the annual Safety Week which raises ‘Environment’ category in the inaugural Wesfarmers awareness of workplace safety. 398 Innovation Awards for our initiative on Reducing Diversity team members Unnecessary Packaging. To gain an insight into the diversity completed the Future The award recognised our efforts to save more of our team, we conducted a Leaders program than 200 tonnes of packaging in the footwear survey titled ‘Unlocking Our department over two years. Since January, we Diversity’. With a participation rate At the end of a second My Mentor have saved more than 10 tonnes of waste from
of 63only use personal For per cent, team members Women’s Development program, footwear packaging by replacing the silica gel answered questions about their a total of 70 women across Target had packs with a recyclable alternative and we estimate length of service, employment completed the course. In addition, to save a further 22 tonnes over the year ahead. status, Indigenous background, 15 senior male executives participated education and carer commitments. in a Mastering Gender in Leadership In June 2012, Target launched a program, which is designed to make Diversity Steering Committee to set men more aware of gender diversity policy and objectives and provide issues. At the end of the reporting strategic guidance on key diversity year, 44 per cent of management issues in the communities where roles were held by women, up we operate. three per cent from last year.
44 Wesfarmers Sustainability Report 2012 Environment In 2011/12, 895 factory audits Throughout the year, we continued were conducted, which included to review key merchandise areas 343 conducted by third party to identify further opportunities auditors and 552 that were to reduce excess packaging. We acknowledged through our implemented a process for stores mutual recognition program. Three to identify and report excess zero-tolerance issues were detected. Eddie O’Leary packaging issues to remove These factories were deregistered and David Scott unnecessary waste. We expanded as suppliers due to non-compliance Target Rondel Award winners our survey data to estimate our water with our Code relating to two cases use. In 2011/12, this is estimated to of bribery and one incident in breach With more of local child labour laws. than 36 years be a total of 306 megalitres per year, experience which equates to 79 litres per Stakeholder engagement between them, full-time employee per day. Engagement with our stakeholders Eddie O’Leary and David Scott Energy efficiency continues to be a focus for Target. were very worthy During the year, we continued to In 2011/12, we conducted property winners at last focus on ways to reduce energy and business building strategy year’s Target consumption. We completed a forums, customer focus sessions, Rondel Awards program in most stores to adjust supplier awards, business updates for their work temperature settings by between and regional road shows with Team members at the 2012 My Mentor in reducing Women’s Development Forum unnecessary one and two degrees and have team members. packaging. regular analysis of air conditioning During the year, our total customer Material issues Eddie and control systems. contacts were 81,536. This David worked Sustainability at Target Reducing waste included a significant increase together on a is founded on four key from customers engaging online packaging review A focus across stores this year has areas – our customers, our and with social media. in the footwear been recycling metal fittings and culture, our suppliers and our department and fixtures back into new projects Our engagement rate on Facebook through their environment. We aim to minimise rather than sending them to landfill. was 24.1 per cent in May 2012 our impact on the environment work managed to In Queensland, 160 pallets of store save more than and 253,464 people ‘liked’ our through the development of a 200 tonnes of fixtures have been allocated to Facebook page by 30 June. During sustainability strategy with clear packaging waste. projects, delivering considerable this period, we introduced new and measurable targets. ‘We have a environmental and financial social media activities, including our To support this aim, we will responsibility savings. Selected new stores will be Facebook offers, which contributed to future maintain our commitment to the completely fitted out with recycled to this increase. generations racking. In New South Wales, metal safety of our teams, customers to efficiently recycling has resulted in more than and suppliers by continually manage our Community looking at ways to reduce the resources. We 25 tonnes being diverted from landfill. At Target we strive to enhance the risk of injuries. We are committed both see many areas we operate in through strong to leveraging the diversity of our opportunities to community partnerships. This year reduce waste team by continuing to explore our total community contribution through changes 25 tonnes and implement initiatives that was valued at $3.43 million, with to our product recycled metal support our focus on women ranges and almost $2.05 million contributed by diverted from landfill in leadership and Indigenous supply chain in our customers and team members. partnership with employment. We will continue our suppliers,’ In 2011, Target and UnitingCare to implement energy efficiencies said Eddie. Australia celebrated 20 years’ that aim to reduce our energy use David says he Carbon and energy partnership through the annual and greenhouse gas emissions Our total greenhouse gas emissions tries to consider Operation Santa Appeal at from lighting and air conditioning the environment were 231,090 tonnes of CO e, 2 Christmas, with 81,463 gifts and in our stores to benefit our first in everything down six per cent on last year. $149,590 worth of gift cards donated business and minimise our he does. ‘We Our greenhouse gas emissions were by generous customers. environmental impacts. To can all make largely due to electricity consumption a difference support the communities in from lighting and air-conditioning in We supported the SIDS and Kids and keep which we operate, we aim to our stores. Total energy consumption Red Nose Day with a major publicity our business make a positive difference by sustainable was 773,097 gigajoules, down six event televising a toy drop in building partnerships that assist by embracing per cent on last year. This energy use Sydney. Combined with our in-store families and children. Across environmentally included 88 per cent electricity and fundraising, we donated more than our business we continue to friendly work seven per cent transport fuel. $199,460 to the campaign. practices and engage with suppliers to improve setting a positive In addition, we continue to partner and broaden compliance with example for all Ethical sourcing organisations that support safe our Ethical Sourcing Code and team members.’ During the year, we continued to happy families through our regional ensure good corporate behaviour Their work on this strengthen communications with our donations program, St John in all aspects of our operations. For personal use only use personal For initiative also won suppliers to improve compliance with Ambulance first aid courses, store a silver award the Target Ethical Sourcing Code. in the inaugural donations, in-kind support through Wesfarmers Following a full review in 2011/12 of the donation of goods and various Innovation our Code and business procedures, volunteering programs. Awards. we standardised operations across our teams, enhanced reporting and In March 2012 we partnered with systems and engaged our suppliers Deakin University. Through this through forums. The Code has now partnership we awarded financial been extended to all Target vendors, scholarships to six students studying including national brands. for their Bachelor of Education (Primary School) at the Institute of Koori Education. Wesfarmers Sustainability Report 2012 45 Kmart
About our business During the year, we started a trial Safety performance Kmart is one of Australia’s largest of energy saving initiatives at one Lost time injury frequency rate retailers, with 185 stores throughout Kmart store and also became a Australia and New Zealand, product signatory to the FluroCycle program 12 sourcing offices in Hong Kong, to divert used fluorescent tubes 10
China, Bangladesh and India, and from landfill. 8 11.18 10.74 9.26 more than 28,000 team members. The Kmart Wishing Tree Appeal 9.26 6 9.02 The Kmart team is committed to our continues to be Australia’s largest 4 6.78 customers, and offering low prices gift collection appeal and this year, 2 0 08 09 10 11 12 on all products every day, right we also partnered with Variety, across our stores. the Children’s Charity to support the ‘Bikes4Kids’ program. Kmart Tyre & Auto Service (KTAS) Greenhouse gas emissions Tonnes CO2e:’000 is one of Australia’s largest retail Participation with our ethical 350 100 automotive service, repair and tyre sourcing program has also increased, 300 75 businesses, with a network of more with 42 per cent of factories now 250 engaged with the program. 200 than 260 stores. We are also one 313,702 311,668 310,391 50 150 303,397 of Australia’s largest employers 313,702 257,087 of mechanics and apprentice People 100 25 50 mechanics, with more than Increasing the number of Indigenous 0 08 09 10 11 12 0 1,400 team members. Australians working for Kmart is Greenhouse gas emissions (LHS) Tonnes CO e per $m of revenue (RHS) a key focus area and this year an 2 Year in review additional 10 stores participated in We have continued to rebuild and our Indigenous employment initiative, Energy use reinvigorate our business, with bringing the total number of stores Petajoules 1.2 300,000 revenue increasing to $4.1 billion and distribution centres to 17. This 1.0 and earnings before interest and work is not possible without the 1.08 1.06 1.05
0.8 1.04 tax increasing by 32.3 per cent to support of the Indigenous community 0.99 0.6 250,000 and store teams across Australia. 1.06 $266 million. Safety performance 0.4 has been mixed, with our total Through an employee survey, 0.2 recordable injury frequency rate 105 team members identified 0 08 09 10 11 12 200,000 decreasing; however, our lost time Energy use (LHS) themselves as Indigenous. Despite Megajoules per $m of revenue (RHS) injury frequency rate increased. more team members participating in the survey this year, the total number of Indigenous team Water consumption Megalitres members has reduced. 800 0.20 700 775 600 767 0.15
500 658 Working with the community 400 0.10 The Kmart Eastern Creek distribution 300 658 0.05
200 n/r n/r centre in New South Wales has 100 engaged with the Australian Cultural 0 08 09 10 11 12 0.00 Water consumption (LHS) Language (ACL) centre to train Megalitres per $m of revenue (RHS)
refugeesonly use personal For and provide them with the skills to work in warehousing. ACL provides ongoing support including Community contributions A$m language assistance to participants in the program. This partnership 12 Direct has resulted in the site employing 09 1.02 10 10 2.35
11.85 11 0.74
90 people. 11.31 8 11.56 12 1.15 11.56 6 Noël Hatem (right) NSW Supply Chain Indirect Manager, with team members at the 4 6.88 09 10.83 10 4.53 Eastern Creek distribution centre 2 11 10.57 0 09 10 11 12 12 10.41
46 Wesfarmers Sustainability Report 2012 We have continued to focus on addressing our material issues by reducing energy consumption, reducing packaging and strengthening our ethical sourcing program. Lower electricity use A trial is underway to reduce the electricity used to light, heat and cool our Kmart stores. Initial results are showing a 20 per cent reduction in total energy use
Ethical sourcing Participation in Kmart’s ethical sourcing program has increased, with 580 factories engaged with the program, representing more than 70 per cent of our direct importer spend
Packaging reduction Kmart has continued to reduce the amount of packaging used throughout the year, and in addition, the business has undertaken packaging reviews as part of the Australian
Packaging Covenant For personal use only use personal For
Lauren Bottams, Store Manager Kmart Richmond, Victoria
Wesfarmers Sustainability Report 2012 47 Kmart (continued)
Almost 70 per cent of the Kmart Safety Carbon and energy workforce are female and we have We have continued to focus on We commenced a trial of energy efficient lighting and increased the number of women reducing the number of injuries an initiative to reduce the amount of energy used to heat in leadership roles to 33 per cent sustained across our business. and cool our Kmart stores. Initial results are showing throughout the year. In addition, we The safety strategy was revised, a reduction of 20 per cent of the total store energy have trialled a mentoring program with goals for the year including consumption. In 2012/13, we plan to finalise this trial for selected team members in New consistent execution of the safety and, if successful, aim to introduce these initiatives to South Wales. Initial results have been plan, creating ownership through the additional stores. positive and we are now reviewing introduction of new reporting and key To reduce transport emissions in New Zealand, we have this program to potentially extend it performance indicators, as well as worked with our customs clearing agents to send stock to other stores. building a strong safety foundation. directly to the South Island ports. Traditionally, these Our learning and development team goods were sent to Auckland and transported by rail, produced consistent and simplified ferry and truck to get to these stores. training for areas including online 52% Given the phase-out of R22 refrigerant gas, we are induction and safe work practices, reduction in injuries in preparing to trial a replacement gas in one store. The updated process documents and supply chain compared majority of Kmart stores utilise R22, and if successful, introduced performance-based to the previous year this trial will allow us to convert existing units to a new gas, learning as part of the ‘Kmart rather than having to replace the air conditioning plant. Way’ program. This program was Key achievements in Kmart for the launched in August 2012 and Our total carbon emissions for the year were 313,702 year included introducing a safety tonnes of CO e, up 0.7 per cent on the previous year. eliminates, simplifies or maintains 2 score to focus on identifying areas Energy use was 1.06 petajoules, down 1.9 per cent on in‑store processes, with the for improvement and developing a objective of introducing one way of the previous year. Across our sites, energy is primarily strategic safety plan for our supply used for lighting and air conditioning. doing things across all of our sites. chain function to target high-risk We have also introduced a areas, which resulted in a 52 per number of new programs at Kmart cent reduction in injuries compared throughout the year including to the previous year. In addition, 76% leadership and commercial skills our Wiri distribution centre in New of waste was recycled training for all store managers, a Zealand has been able to achieve a 360-degree leadership assessment TRIFR of zero. program supported with coaching Our KTAS business restructured and leadership training for all state its safety function to provide Waste and recycling operations and zone managers, as greater responsiveness and well as training for selected store During the year, Kmart became a signatory to the earlier intervention, which resulted in FluoroCycle program, which commits businesses to team members to improve the a 66 per cent reduction in the average flow of stock from truck to shelf. recycling used fluorescent tubes, rather than sending lost time rate. them to landfill. We have already recycled more than In total, more than 170,000 hours In response to the Christchurch eight tonnes of these tubes since joining the program. of training were delivered, with an earthquakes and based on feedback At Kmart, we also recycle ink cartridges from our photo average of 2.3 training sessions from team members, Kmart New per team member. labs. These cartridges are used to make new cartridges Zealand sites have now introduced or other plastic products and through this initiative we emergency evacuation folders. The diverted more than 12,000 cartridges from landfill this year. folders include rosters and contact
For personal use only use personal For details for team members and are Kmart stores have facilities to recycle paper, cardboard, 170,000 plastic film, shopping bags, damaged goods and hours of team located in key areas within the site used garment hangers. KTAS stores have facilities to member training for easy access. recycle used tyres, batteries, steel and other workshop For the year, we recorded 222 lost materials. During the year, we recycled more than time injuries, up 33 per cent on the 34,000 tonnes of material, representing 76 per cent previous year. Our LTIFR increased of the total amount of solid waste generated. to 9.26 and our TRIFR decreased to 37.0 5.
48 Wesfarmers Sustainability Report 2012 Community We classified 10 as reportable, as The Kmart Wishing Tree Appeal they posed a significant risk to the is Kmart’s largest community business from a reputational or program and is the largest Christmas financial perspective. Throughout gift collection appeal in Australia. the year, Kmart conducted seven Over the past 24 years, the Appeal product recalls, four of which were has collected more than five million for Kmart-branded products. Luke Swann gifts for those in need. Last year, we Apprentice collected more than 461,000 gifts, Ethical sourcing Luke Swann is a almost $263,000 in cash donations In December 2011, Kmart launched year 11 student and 100,000 from the sale of Kmart its updated ethical sourcing who has joined Wishing Tree Appeal-branded program. The Ethical Sourcing the KTAS team as a school- merchandise. Code forms part of this program and establishes the legal, social and based, first year In addition to Kmart’s coin collection environmental requirements that apprentice. program, store teams can support KTAS is Kmart suppliers and factories must local community groups through participating in meet as a condition of conducting the provision of gift cards or the Aboriginal business with us. Employment merchandise. More than $114,000 Strategy to was provided throughout the year. To ensure compliance with the provide these Code, Kmart monitors its factories Kmart is focused on building stronger During the year, we contributed apprenticeships through both announced and partnerships with its suppliers, including to nine students a total of $1.15 million in direct this factory in China unannounced audits which are who, following support to the community and conducted by independent third- completion of $10.41 million in indirect support, Material issues the course and party audit bodies. Under the as verified by LBG. higher school mutual recognition component The material sustainability certificate, will of the Code, we may also accept issues for our business are be eligible to credible certifications from other concentrated around continuing be employed organisations where the certification to restore the foundations of as second year our business, so that we are apprentices. m is current and conducted by a $10.41 able to meet the needs of our At Kmart, in indirect community reputable and independent third- addition to its contribution party audit firm. stakeholders. In doing this, our Indigenous prime responsibility is ensuring employment For the reporting year, 42 per cent that our sites are safe for our initiative, five of factories were deemed to be Governance team members, customers and team members engaged, compared to 16 per visitors. Other significant material From an environmental perspective, participated cent last year. Behind our auditing issues for Kmart include reducing in the Jawun Kmart was contacted by one program is a strong commitment the amount of energy we use Secondment council in New South Wales, as our to working with suppliers and and improving our design and Program during exterior lighting at one store did not the year. These factories by providing continuous management of packaging, to comply with the requirements of the team members education and support. However, in turn provide environmental development application. We are lived and worked it is sometimes necessary to and financial benefits to the in remote currently implementing a solution deregister suppliers who do not business and the communities communities with the council. share this view, or for significant as part of we operate in. Regulators contacted Kmart on breaches of the Code. During the program If we succeed in these objectives, designed to 97 occasions during the year, with the year, eight factories were then, together with our community build greater the majority relating to product safety deregistered for breaches involving contribution programs, we will be awareness following the mandatory product attempted bribery and one instance achieving the material objective of and cultural safety reporting requirements of child labour was also detected. understanding. benefiting the communities where which started on 1 January 2011. we operate.
Helping our communities Customers continue to support our coin collection program in Kmart stores, with money raised supporting the work of Variety, TLC for Kids, Think Pink and disaster relief efforts. Over the last 12 months, more than $540,000 was raised to support these programs. Since May 2012, our Australian stores have been raising funds for Variety’s ‘Bikes4Kids’ program, which helps to provide children with freedom and
For personal use only use personal For independence through the simple gift of a bike. Variety also provides modified tricycles for special needs children who are unable to ride a bike. In July 2012, our New Zealand stores embarked on an exciting partnership with Plunket, New Zealand’s largest not-for-profit organisation dedicated to supporting the development of healthy families, raising funds for their car seat service.
Wesfarmers Sustainability Report 2012 49 Insurance
About our business We also strengthened our Safety performance Wesfarmers Insurance operates in community program with a Lost time injury frequency rate the general insurance and financial new partnership between our services sector. Our underwriting OAMPS broking business and 4.0 businesses include Lumley Make-A-Wish Australia. 3.0 Insurance and WFI in Australia and We continued to focus on insurance 3.70 Lumley General Insurance New 2.0 affordability with competitive pricing 2.71 2.71
Zealand (LGNZ). Our insurance 2.22 0.89 in personal insurance lines, in 1.0 0.83 broking businesses include OAMPS addition to achieving claims cost 0 08 09 10 11 12 Australia, OAMPS United Kingdom improvements through the alignment (UK) and Crombie Lockwood in of our Australian claims teams New Zealand (NZ). We also have across WFI, Lumley and Coles underwriting agencies, premium Greenhouse gas emissions Insurance. We also launched the Tonnes CO2e:’000 funding businesses and financial Partnered Repair Network to offer a 15 10.0 management operations. We are more professional and cost-effective 12 represented in 119 locations in 7.5
approach to customer service. 9 13,917 13,405 12,975 12,789
Australia, 36 in New Zealand, five in 12,236 5.0 the United Kingdom and one in During the year, we expanded our 13,917 6 New Caledonia. At 30 June 2012 broking network with the acquisition 3 2.5 we employed 3,882 people. of the ACM Ahlers business. 0 08 09 10 11 12 0.0 Greenhouse gas emissions (LHS) The ongoing financial effect of the Tonnes CO2e per FTE employed (RHS) Year in review Christchurch earthquakes continues We consider that our Corporate to be significant. Despite this, we Plan outlines strategic priorities that have been pleased by our claims Energy use Petajoules are socially and environmentally teams who have continued to 0.10 35,000 responsible, as well as economically respond effectively to our clients in 0.08 28,000 balanced. Some of our key their time of need. The underlying 0.09 0.09 0.08 0.06 0.08 21,000 sustainable outcomes during performance of our underwriting 0.09 0.08 the reporting period included businesses continues to improve 0.04 14,000 the introduction of a new cost- and our broking operations are 0.02 7,000 effective printing system across performing well. 0.00 08 09 10 11 12 0 the underwriting business, as Energy use (LHS) Megajoules per FTE employed (RHS) well as investing in a new policy management system in the New Zealand underwriting business. Water consumption Megalitres 120 0.04
100 119 113 0.03 80 OAMPS and Make‑A‑Wish 60 0.02 73 80 Australia 66 73 40 0.01 In November 2011, OAMPS Australia 20 launched a national charity partnership 0 08 09 10 11 12 0.00 Water consumption (LHS)
with Make-A-Wish Australia. Megalitres per FTE employed (RHS) For personal use only use personal For Make-A-Wish Australia grants the wishes of children with life-threatening Community contributions medical conditions. A$m
The partnership with Make-A-Wish 1.0 Direct Australia was developed in consultation 09 0.84 0.8 10 0.96
with our OAMPS employees, and by 0.96 11 0.41 actively engaging our teams, clients 0.38 0.6 0.84 12 0.38 and communities, we hope to raise 0.4 Indirect 09 n/r
up to $100,000 each year. 0.44 10 0.00
0.2 0.38 11 0.03 0 09 10 11 12 12 0.00
50 Wesfarmers Sustainability Report 2012 The WFI site at Bassendean, Western Australia, is our flagship site for environmental awareness.
Greener printing Substantial progress was made towards lowering our carbon footprint with the introduction of a new printing system across all WFI and Lumley sites in Australia to reduce paper use
Reducing paper consumption The ‘Minus One’ initiative was introduced, which reduces paper consumption by decreasing print fonts by one point
Compost bins During the year, a BokashiWorks bin trial (for compost) was initiated, and plans are in place for the installation of
rainwater tanks For personal use only use personal For
From left, Melissa Cluney, WFI Facilities and Procurement Manager and Vik Sinniah, WFI Senior Business Analyst, Bassendean, Western Australia
Wesfarmers Sustainability Report 2012 51 Insurance (continued)
People While we had an increase in LTIFR This year, our business achieved from 0.83 to 2.71, WI continues to several milestones including perform better than most industry the launch of the Wesfarmers peers when it comes to safety Insurance Charter, our Employee performance and will continue to Value Proposition and Leadership look for opportunities to reduce Framework. These set out clear our work-related injuries. We expectations for all employees with are committed to increasing the respect to a common set of values representation of women in our (integrity, teamwork, openness, managerial and executive ranks, accountability and boldness) and and it remains a central focus for the the skills and capabilities required. leadership team through mentoring, These common commitments sponsorship and other key initiatives. provide a framework against which we can continue to build a long-term Environment people strategy. Our goal is to be The WFI site at Bassendean, the insurance employer of choice, Western Australia, is our flagship and we believe we have started to site for environmental awareness. Lumley New Zealand and the differentiate our culture by attracting For example, during the year, a Christchurch earthquake and growing the best leaders in their BokashiWorks bin trial (for compost) Domestic Earthquake Team respective fields. was initiated, and plans are in place Leader Rayna Swanepoel for the installation of rainwater tanks. Despite challenging business has been recognised for her The ‘Minus One’ initiative was also conditions, we continued to invest outstanding work in the Lumley introduced, which reduces paper strongly in the development of Earthquake Claims Response consumption by decreasing print our people, with more than 300 Team. Many of her customers fonts by one point. employees graduating from our lost everything; however, her leadership programs. Substantial progress was also empathetic approach, providing made towards lowering our carbon support and guidance to her customers, has been footprint with the introduction of a crucial in building trust and demonstrating that 300 new printing system across all WFI Lumley NZ is a reliable partner during a time of crisis. and Lumley sites in Australia to employees graduated Rayna receives outstanding customer feedback and reduce paper use. from leadership is contributing to the process improvement project to programs Further energy savings are being ensure that key learnings from the event are captured. achieved by using more efficient Rayna explains it simply: ‘I believe stepping into my printer models, as well as reducing In addition, technical, sales and customer’s shoes is critical and I always ask myself the total number of printers in the service skills development has been the question, “If this were me, what I would do and business. Arrangements are in conducted within our businesses to what I would expect?”’ place with the service provider to ensure regulatory compliance and dispose of used toners and other improved business performance. consumables in an environmentally We also continued to support the responsible manner. Jawun Secondment Program, with We estimate these initiatives will two employees participating this year
For personal use only use personal For lead to a reduction of more than as an opportunity for development. 60 per cent in carbon emissions Our employee engagement levels from printing in our businesses. are pleasing, with continued strong scores in the areas of culture, values and leadership. Greenhouse emissions Our total greenhouse gas emissions
were 13,917 tonnes of CO2e, an increase of 8.8 per cent on last year. The greenhouse gas emissions were largely due to electricity consumption in our offices.
52 Wesfarmers Sustainability Report 2012 Economic investment During the year, we made provisions 5.0% to pay $1,208 million in claims energy use increase to our customers who suffered from the previous year insured losses. This included support for customers affected by natural disasters in Australia and New Zealand. We paid Energy use $326 million in wages and salaries Our main energy use during the to our employees. year related primarily to electricity consumption in our offices (48.1 per cent) and fuel use (51.9 per cent). Total energy consumption was $1,208m 0.09 petajoules, an increase of in provisions for claims five per cent on last year. from customers who suffered insured losses Community WFI again demonstrated its support of the Australian farming community Governance Anchored by our Charter, our Graeme Warner and Andrea Green, by sponsoring this year’s Australian members of the WFI claims team, Farmer of the Year Awards, run by governance framework includes at Bassendean, Western Australia the Kondinin Group. The Australian policies and principles that guide Farmer of the Year Awards celebrate our Board and management team, Material issues as well as a system of controls that the professional, innovative and • Effective response to defines how we work. sustainable approach of farmers. catastrophe events, including Natasha Gale WFI also sponsored a number During the year, we partnered with the impacts on customers, Senior State Manager NSW of rural associations such as the the Insurance Council of Australia suppliers and the and QLD Nursery and Garden Industry in and contributed submissions on a re-insurance market range of matters affecting the future Natasha Gale Queensland and regional community • Continue to provide ongoing of insurance in Australia, including has a passion sporting clubs. As in past years, WFI training and development for history, and, changes to the General Insurance also participated in the First National for our people leading to out of a desire Code of Practice, flood insurance Foundation charity tournament, held increased retention to support in Geraldton, Western Australia, to and several regulatory reviews. our wounded • Continue to improve our work soldiers, recently raise money for many of the area’s OAMPS Australia implemented environment to create a safe undertook local charities including Variety, Relay targeted Broker Compliance and diverse workplace the enormous for Life, the Australian Red Cross Training in its online training facility, challenge of and the First National Foundation. • Ensuring our businesses walking the which has been completed by all Kokoda Trail. In addition, WFI encourages broking employees. have a positive impact on the communities where we Natasha walked all employees to organise and Our New Zealand underwriting operate to create strong and the trail to participate in fundraising activities business, Lumley, has made raise funds for for both local and national charitable enduring relationships Australian soldiers significant progress in preparation for organisations. During the year, the introduction of new regulations in • Continue to provide input wounded in employees raised money for a conflict. the insurance sector which are to be into the development of number of charitable organisations ‘Walking phased in over the next year. effective regulatory systems with returned through participation in events such for the insurance industry and WFI is a member of the Australian soldiers and as Australia’s Biggest Morning Tea contribute to policy development Indigenous Minority Supplier family members (supporting the Cancer Council) and and regulatory programs of Australian Movember (raising awareness of Council (AIMSC), which encourages soldiers killed men’s health). businesses to obtain goods and in action was services through Indigenous an extraordinary, Lumley supported a number of suppliers. emotional journey,’ community-based organisations Natasha said. during the year, for example by Our businesses reported no material A highlight sponsoring transport-related regulatory breaches for the year. was the 70th anniversary dawn initiatives and the Heart Foundation service. ‘It was a Ball. Lumley also supported the time to remember ‘Beat the Bosses’ trivia night with all those fallen and funds raised going to the CREATE celebrate those Foundation, which raises money who continue to improve the lives of children and to guard our freedom and young people who are receiving out of home care such as foster, For personal use only use personal For keep Australia safe.’ residential or kinship care. With Lumley employees in attendance, CREATE raised $120,000 for the night.
Wesfarmers Sustainability Report 2012 53 Resources
About our business Year in review Safety performance We are a significant Australian open- This year has seen a significant Lost time injury frequency rate cut miner and a leading metallurgical change for our business, with the 8.0 coal producer and supplier of sale and divestment of the Premier thermal coal for domestic power Coal operation and the major 6.0 generation. We operate the Curragh expansion of the Curragh mine. 7.20 4.0 * open cut coalmine near Blackwater While these two activities have in 2.53 2.14
1.63 1.63 in Queensland’s Bowen Basin and many ways dominated the year, 2.0 1.28 have a 40 per cent interest in the we have continued to consolidate 0 08 09 10 11 12 Bengalla mine in the Hunter Valley and improve our sustainability * This has been restated due to a reclassification of claims. of New South Wales. The Bengalla performance. mine is not covered in this report, As always, safety is the highest as its performance is publicly Greenhouse gas emissions priority and this year we had a Tonnes CO e:’000 reported by Rio Tinto Coal Australia. 2 800 10.0 42 per cent reduction in the total 700 Wesfarmers divested the Premier recordable injury frequency rate 600 7.5 Coal business on 30 December 500 707,725 sustained by our Curragh employees 400 715,388 5.0 694,026 2011, and this section of the report 689,933 and contractors. While this is a very 300 614,619 does not include Premier Coal 200 pleasing result we will continue 689,933 2.5 data. However, material data from 100 to focus on this important aspect 0 08 09 10 11 12 0.0 the period of ownership of Premier of our business. Greenhouse gas emissions (LHS) Kilograms CO2e per Bank Cubic Metre Coal is included in the Data Bank on moved (RHS) pages 68 and 69. During the year, we also introduced initiatives to recognise At 30 June 2012, we had 658 people our people for their innovations. Energy use permanently employed; 49 in the We implemented a ‘Women in Petajoules Resources divisional office and 6 30 Resources’ program across the 609 at the Curragh mine operation. business and continued to progress 5 24
The total coal production for Curragh our Aboriginal and Torres Strait 4 18 4.31 was 10.10 million tonnes, which 4.13 4.00 Islander Employment Strategy. 4.13 3 3.94 12 was 29 per cent higher than in the 3.33 We also initiated a new community previous year. 2 6 program with a focus on community 0 08 09 10 11 12 0 health, we improved our water Energy use (LHS) management at Curragh, and Megajoules per Bank Cubic Metre moved (RHS) we prepared for the introduction of the Clean Energy Future Water consumption legislative package. Megalitres 4,000 350
3,000 300 3,654 Women in Resources 3,402
2,000 3,045 2,707 In a major new initiative, we 2,742 2,742 250 1,000 launched our ‘Women in Resources’ program during the year. This 0 08 09 10 11 12 200 Water consumption (LHS) program focuses on attracting Megalitres per million tonnes of coal produced (RHS)
womenonly use personal For to employment within our business, as well as the professional development of women currently Community contributions A$m within the business. While this is a long-term commitment, there have 1.0 Direct already been positive outcomes with 09 0.86 0.8 10 0.68 women making up 26 per cent of all 11 0.83 0.87 new appointments this year, up by 0.6 0.86 12 0.55
0.60 0.71 Indirect
0.4 0.60 eight per cent from 2010/11. 09 n/r 0.2 10 0.03 11 0.04 0 09 10 11 12 12 0.05
54 Wesfarmers Sustainability Report 2012 At Curragh, sustainability initiatives address a range of issues including environment, people, economic, carbon and energy efficiency.
Improving greenhouse measurement A fugitive emissions project was carried out to determine the greenhouse emissions from the mining of coal
Expanding the business The $286 million expansion at Curragh is now complete. Annual export capacity will expand to 8.0 – 8.5 million tonnes annually
Better water management A water balance model has been developed at Curragh to allow for the
For personal use only use personal For better management of water resources on-site
Bryan Turner, Coal Handling and Preparation Plant Water Technician at Blackwater, Queensland
Wesfarmers Sustainability Report 2012 55 Resources (continued)
People The ERT participated in the We recognise the need to improve 2012 Australasian Road Rescue the gender balance in our workforce Competition in Hobart to test its and to better reflect the communities skills against other emergency in which we operate. This year, we response teams. Our team launched our ‘Women in Resources’ performed well and importantly program, which focuses on attracting gained valuable experience and women to our business while at learning through this process. the same time developing those women already within the business. The program includes one-on- 10 one mentoring, self-paced study, Indigenous trainees discussion groups and participation started working in industry events and forums. at Curragh Education and engagement of managers has also played a key role in achieving our objective of boosting Following the completion of the number of women in our initial training, in August 2011 workforce and in leadership roles. 10 Indigenous trainees started work at the Curragh mine, with four Making a difference in local Indigenous Responding quickly and effectively employed by Curragh and six by communities to an emergency on-site is critical for Thiess. This Indigenous employment Since the launch of the Wesfarmers Reconciliation Curragh given its relatively remote initiative, in conjunction with The Action Plan in 2009, much has been achieved location and limited access to Salvation Army Employment Plus within our business in regard to Indigenous medical and hospital services. This program, has proven to be very employment. We are very proud of Curragh’s year, Curragh has invested in further successful with all four of Curragh’s Indigenous traineeship program, which has given development of its own Emergency Indigenous trainees still involved 10 local Indigenous people an opportunity to Response Team (ERT) by increasing with the program. commence a career in the mining industry. This its numbers from 12 in early 2011 program is supported by other initiatives which to 43 in June 2012. In the event of Environment have seen drug and alcohol education and life skills an emergency, the ERT members After successive above average provided to the children at Woorabinda; support augment the four full‑time contract wet seasons, water management at Indigenous job expos; hospitality training in Emergency Services Officers. at Curragh continues to be a major conjunction with ESS, our service provider, at our challenge. During the year, Curragh Rangeview accommodation; and support for the developed a site water balance Australian Indigenous Mentoring Experience. model which is designed to assist 43 This year we commenced our first business team members in decision-making about site water relationship with an Australian Indigenous Minority in the Emergency inventory management and future Supply Council business, Aboriginal Steel Art, Response Team water infrastructure investments. which has allowed that business to grow. Along with this model, additional water release points into the Along with the increase in number, McKenzie River were installed at the ERT upgraded its self-contained Curragh North to assist in site water breathing apparatus and hydraulic inventory management. As a result, cuttingonly use personal For and spreading equipment. 1,186 megalitres of excess water was Through the provision of additional released from the site in accordance training, a number of ERT members with regulatory approvals. achieved Certificate IV Industrial Paramedic and Certificate III Industrial Responder qualifications.
56 Wesfarmers Sustainability Report 2012 Carbon and energy Our main energy use during the year Our focus at Curragh this year has related primarily to the operation been to undertake a significant of our draglines, coal handling project to determine the fugitive and preparation plant and diesel- emissions associated with the coal operated equipment at Curragh. mining process. This project has Total energy consumption was involved drilling and gas analysis to 4.13 petajoules, up 24.8 per cent John Mahon determine more precisely what the on last year (excluding Premier Coal Field Trainer greenhouse gas emissions are. The from the 2011 data). The increase Mining, Curragh outcome of this project will allow in energy was largely related to the A commitment Curragh to more accurately report construction and commissioning to safety its fugitive emissions in 2012/13. of the new CHPP. John is passionate about safety, both Once again significant dewatering in the workplace was required at the Curragh mine Community Since 2006 we have been a part of and in the local as a legacy of the 2010/11 central community. the Mines Medical Consortium, a Queensland floods. The discharge of In his role at private sector mining/government water was conducted in accordance Curragh, John partnership to provide a second is responsible with the licensing arrangements doctor in Blackwater. This for ensuring that approved by the Queensland Wesfarmers Resources team member partnership provides for enhanced Brian Gaka, Financial Accountant trainees and new Department of Environment and medical treatment for employees, starters are ready Heritage Protection. This dewatering to safely get their families and the local Material issues program required significant behind the wheel community. This year Curragh additional energy to be used for • Continuing to improve our safety of the machines expanded its support for local health and vehicles on- non-mining related activities. performance in order to reduce site through the through sponsorship of the central the number of workplace injuries use of the new Queensland Whole of Practice incurred by our employees and on-site training Professional Activities Conference contractors simulator. 21.6% and the Queensland Institute for John’s tonnes of Medical Research, and support • Improving our energy efficiency commitment greenhouse gas to the Blackwater Hospital. and reducing greenhouse gas extends to his emissions emission intensity in order local community, A new initiative this year for the to reduce the environmental where he is a Brisbane office was the introduction impact of our operations member of the Our total direct (Scope 1 and 2) of a matched-giving program. State Emergency greenhouse gas emissions were Donations were collected for • Attracting and retaining Service and the 644,384 tonnes of CO e, up 21.6 high quality employees Auxiliary Fire 2 employee-nominated local charities, Service. per cent on last year (excluding with all donations matched by the continues to be a challenge On-site John is a Premier Coal from the 2011 data). business. This program resulted for our industry due to senior member of This change largely related to the in more than $5,000 donated labour shortages within the Curragh ERT, major expansion project undertaken to organisations such as the the resource sector a role he happily during the year that included the 139 Club, Youngcare, Givit, Mental volunteers for. • Increasing the number of construction and commissioning of Illness Fellowship of Queensland women who work in the ‘For me, safety a new coal handling and preparation is paramount in and the Pony Riding for the business remains an ongoing everything we plant (CHPP). Disabled Association as part of challenge which is being
For personal use only use personal For do at Curragh the McIntyre Centre. addressed through our Women and I’m just in Resources program pleased that I’m able to make a contribution to the team,’ said John.
Wesfarmers Sustainability Report 2012 57 Chemicals, Energy and Fertilisers
About our business The Wesfarmers Board gave final Safety performance Wesfarmers Chemicals, approval to proceed with the Lost time injury frequency rate Energy & Fertilisers (WesCEF) expansion of CSBP’s ammonium operates chemical, gas and nitrate production facility at Kwinana, 8 fertiliser businesses that service Western Australia, in December 2011. 6 sectors in both Australian and CSBP continued to trial nitrous 6.50 overseas markets. oxide reduction technology in its 4 6.50 2.60 4.59
nitric acid plants at Kwinana to help 4.05 We also have a 50 per cent interest 2 3.82 in an ammonium nitrate facility in reduce greenhouse gas emissions. 0 08 09 10 11 12 Queensland (QNP), but we do not Catalysts have been installed in operate the business and it is not both nitric acid plants, with some included in this report. In August trials achieving an emissions Greenhouse gas emissions 2011 one of our businesses, enGen, improvement of up to 85 per cent Tonnes CO e:’000 2 2,500 5 was sold and this section of the nitrous oxide abatement. 2,000 4 report does not include its data. In late 2009, we announced an 1,500 3 However, material data related to investment of almost $5 million the period of ownership of enGen 1,000 2 2,022,741 in a regenerative thermal oxidiser 2,024,587 1,811,792 1,625,504 1,862,605 is contained in the Data Bank on (RTO) to allow us to diversify 500 1,625,504 1 pages 68 and 69. our phosphate rock supply options. 0 08 09 10 11 12 0 Greenhouse gas emissions (LHS)
We have operations around Australia, Tonnes CO2e per tonne Following operational testing of chemicals produced (RHS) and our revenue in 2011/12 was and trials of various blends of $1,786 million. odorous phosphate rock, the RTO was commissioned this Energy use Petajoules Year in review year, and phosphate rock from 20 30,000 We continued our focus on the Western Sahara is not part of our sustainable operation of our 15 17.88 18.25 20,000 import program for the coming 17.93
businesses for the benefit of our 10 15.16 production year. 14.66 employees, our customers and the 14.66 10,000 communities in which we operate. 5 We remain committed to the safe 0 08 09 10 11 12 0 Energy use (LHS) operation of our facilities in a way Megajoules per tonne that minimises any adverse impact. of chemicals produced (RHS)
Water consumption Megalitres 5,000 6
4,000 4 4,347
3,000 4,143 Clontarf Foundation 4,220 3,630 2,000 3,591 During the year, WesCEF renewed 4,347 2 1,000 its partnership with the Clontarf 0 08 09 10 11 12 0 Foundation. Here, student Neil Penny Water consumption (LHS) Megalitres per thousand tonnes and Kleenheat Communications of chemicals produced (RHS) Coordinatoronly use personal For Kirsty Mobilia take a break at Clontarf’s Gilmore Academy in Kwinana. Community contributions A$m
0.8 Direct 09 0.69 10 0.44 0.6 11 0.29
0.69 12 0.49 0.49 0.4 Indirect 0.49
0.45 09 0.00 0.2 10 0.01 0.29 11 0.00 0 09 10 11 12 12 0.00
58 Wesfarmers Sustainability Report 2012 Energy Efficiency Engineer Kevin Le (left) supports the business in understanding energy usage and identifying potential savings through engineering projects.
Reducing greenhouse emissions CSBP’s nitric acid plants at Kwinana contain nitrous oxide reduction technology that reduces greenhouse gas emissions
Improving diversity performance Environmental Adviser Cheryl-Anne McCann is a Torres Strait Islander woman who WesCEF welcomed into the business in 2012
Decreasing nutrient emissions CSBP’s nutrient-stripping wetlands reduce nitrogen load in wastewater prior to
discharge from site For personal use only use personal For
Kevin Le, Process Engineer, CSBP Kwinana, Western Australia
Wesfarmers Sustainability Report 2012 59 Chemicals, Energy and Fertilisers (continued)
People We continued providing our As at 30 June 2012, we employed workforce with safety training, with 1,439 people, excluding contractors a focus on process safety in the but including casuals. The ongoing chemicals businesses at Kwinana development of our people is one and Australian Vinyls in Victoria; of our key priorities. During the and occupational, health and safety year, we employed four apprentices training in all our businesses. and sponsored an additional 13 in We provide information to and our businesses. encourage feedback from our Following their introduction last year, employees through our intranet, we continued to run the WesCEF internal newsletters and employee Women Forums (28 per cent of briefings. our employees are female) and this year introduced a women’s Environment development program that is We continue to improve our technologically-based and designed environmental management systems specifically to help women create including the review and assessment meaningful career paths. In line of our environmental risks. with our Aboriginal Engagement During 2011/12, we held workshops and Employment Strategy, we to identify energy efficiency recruited an Aboriginal Development opportunities (EEO) in the production Coordinator and awarded one of nitric acid, ammonium nitrate, Aboriginal traineeship. sodium cyanide and polyvinyl We continue to focus on leadership chloride (PVC) resins. development and have progressed The EEO workshops mark the 101 managers and supervisors beginning of a new five year cycle through our leadership development of formally identifying, assessing framework. and implementing feasible energy efficiency projects to meet the federal EEO legislation. A number of 101 projects were implemented during managers and 2011/12, resulting in energy savings. supervisors engaged in leadership development Greenhouse emissions Nitrous oxide abatement technology Our 2011/12 Scope 1 and 2 greenhouse gas emissions were CSBP is achieving a significant reduction in In 2011/12, we recorded 58 total 1,493,883 tonnes of carbon dioxide greenhouse gas emissions through ongoing trials of recordable injuries (TRIs), 23 of equivalent (CO e), a decrease of nitrous oxide abatement technology. The technology, which were lost time injuries (LTIs). 2 20.4 per cent on last year. The which uses specialised catalysts that convert the This compares to 55 TRIs and greenhouse gas nitrous oxide (N O) to inert nitrogen major reasons for this decrease 2 16 LTIs last year. Our total recordable were our nitrous oxide reduction gas, was installed in one of the two nitric acid plants injury frequency rate increased from program and the sale of enGen. at Kwinana in February 2012, following previous trials 15.8 to 16.4, and our lost time injury in 2011. An alternative catalyst, pictured here with
For personal use only use personal For Of our total emissions, 46.4 per frequency rate increased from 4.59 cent were generated from nitric Manager Business Performance Chemicals Albert to 6.50. acid production, 26.9 per cent from Romano, was installed in the second Kwinana nitric We implemented a new safety ammonia production and 8.9 per acid plant in June 2012. Some trials of these catalysts incident reporting tool, Cintellate, cent from LPG and LNG production. have achieved an emissions improvement of up to to replace existing systems and The balance was generated from 85 per cent nitrous oxide abatement. provide a consistent incident, action various other processes associated In September 2012, CSBP was selected as a finalist in management and inspection/ with our operations. the Corporate Business Leading By Example category audit tracking tool across all our of the 2012 Western Australian Environment Awards businesses. for this initiative.
60 Wesfarmers Sustainability Report 2012 In addition, Scope 3 emissions In May 2012, Australian Vinyls The first was an elevated stack test associated with our electricity, received certification against the result for fluoride and the second natural gas, liquid fuel, air travel and international standard ISO14001 was an elevated monthly average
waste were 131,621 tonnes CO2e. for Environmental Management load for manganese in waste water. Systems for its PVC resin production CSBP has not been advised of Energy use facility at Laverton, Victoria. any regulatory action. Our net energy consumption was During 2011/12, the number of Australian Vinyls reported an elevated 14.66 petajoules, a decrease audits in the WesCEF internal stack test result for ethylchloroformate of 19.7 per cent on last year’s audit program was significantly to the Environmental Protection consumption. Our energy use is increased. This provides greater Authority (EPA). Corrective actions represented by natural gas (92 per assurance of compliance together were identified and applied and cent), electricity (four per cent), and with opportunities for improvement the EPA has indicated it is satisfied diesel (two per cent), with other in business performance across a with these actions. energy making up the remainder broad range of processes. (two per cent). During the year, the emergency response team based at CSBP Kwinana took part in an on-site 19.7% exercise involving the local Fire energy use decrease and Rescue Service, including a from the previous year full muster of people on-site. The Kleenheat Gas production facility at Kwinana also exercised its muster capability. Water use Our total water consumption was In November 2011, ModWood 4,347 megalitres, up three per received improvement notices cent on last year. We continued from Worksafe Victoria regarding to use recycled water at CSBP dangerous goods signage, Tim Hawkins Kwinana, and Australian Vinyls risks associated with falling, Senior Process used 159 megalitres of water from manual handling and auger use. Engineer its recycled water plant. All improvement notices were Kleenheat Gas complied with. Senior Process Engineer Community During the year, Kleenheat Gas Tim Hawkins We provided support to a range of received improvement notices from implements organisations in 2011/12 through Worksafe Victoria for its Deer Park improvement direct financial support or through operations relating to systems of and development the donation of goods to the value projects to work, LPG tank safety valves, risk of $493,172. control measures, and control of help operate Recycled water at a cooling tower, Kleenheat’s ignition sources. All improvement CSBP Kwinana, Western Australia Kwinana notices were complied with. Production In November 2011, Kleenheat Gas Material issues Facility safely and $493,172 received a directive from Workplace sustainably. direct community • Continuing to improve Health and Safety in Queensland Tim joined the support workplace safety company four regarding its Pinkenba site years ago and requiring further detail on identified • Continuing to improve says that having control measures and key safety energy efficiency to reduce We signed new partnerships with the opportunity management systems. The directive greenhouse gas emissions Youth Focus and the Clontarf to take part was complied with. in leadership Foundation, and continued our • Increased consumption of development support of the Salvation Army, During the year, Kleenheat Gas recycled water to reduce and ongoing and the Asthma Foundation WA. received two remediation notices scheme water use technical training from the Department of Mines and has helped him We also supported our employees’ • Continuing to develop, engage Petroleum in Western Australia further his career. participation in the Chevron City to and retain our employees regarding its Busselton and Surf for Activ and the HBF Freeway Margaret River sites. The notice • Continuing to contribute to and Bike Hike for Asthma, and held a for its Busselton site was complied engage with the communities in ‘Wear Purple Day’ to raise funds with, and actions to comply with which we operate for Breast Cancer Care WA. the notice for its Margaret River site are underway. In February Governance 2012, Kleenheat Gas received We undertake regular internal improvement notices from Worksafe auditing to evaluate and continually Victoria for its Wandin North improve our risk management,
For personal use only use personal For operations relating to the review control, and governance processes. of its fire protection report, internal Our ammonia, ammonium nitrate, and external inspection of boilers, sodium cyanide and PVC resin pressure vessels and air receivers. facilities, as well as our Kleenheat All improvement notices were Gas production and Kleenheat Gas complied with. operational facilities are classified During the year, CSBP reported as Major Hazard Facilities and have, two exceedances of environmental or are in the process of obtaining licence limits to the Department current approvals to operate. of Environment and Conservation. We also manufacture, handle and transport dangerous goods. Wesfarmers Sustainability Report 2012 61 Industrial and Safety
About our business Year in review Safety performance* We are Australia and New Zealand’s The pursuit of outcomes that Lost time injury frequency rate leading supplier of industrial and are socially and environmentally safety consumables. We provide responsible, while being economically 5 engineering products and industrial viable, continues to be our focus. 4 consumables, safety, packaging, Key sustainable outcomes during 4.60 materials handling, lifting products the reporting period included the 3
2.41 1.61 and services, and industrial, medical first ‘Greener Workplace Range’ 2 2.40 2.41 and specialty gases to industry and chapter in the 2012 Blackwoods 1 2.34 government. We operate a multi- catalogue that features products 0 08 09 10 11 12 channel distribution model that which help customers operate includes a network of branches, more sustainably. We improved sales representatives, ebusiness, the energy efficiency of two of our Greenhouse gas emissions* Tonnes CO2e:’000 websites and telesales. facilities by retro-fitting lights, sensors 250 250 and skylights. Our safety projects With more than 225 outlets and 200 200 focused on the high-risk areas of 127 gas distribution points, we 150 150 243,071 storing goods at height and driving 232,733 trade in Australia as Blackwoods forklifts safely. Over the course of 100 100 (incorporating Blackwoods Electrical 232,733
33,546 50 30,014
the reporting year, we reduced our 50 25,231 and Bakers Construction and printing by 24 per cent1 0 08 09 10 11 12 0 Industrial Supplies), Protector Alsafe, (from the 2009 baseline for WIS excluding Greenhouse gas emissions (LHS) Bullivants, Total Fasteners, and Tonnes CO2e per $m of revenue (RHS) Coregas. In New Zealand we trade Coregas), and we progressed as Blackwoods Protector, Packaging workforce diversity strategies to drive Energy use* House, NZ Safety and Safety Source. growth. We alsocontinued to support The Fred Hollows Foundation. Petajoules Blackwoods also opened its first 1.5 800,000 overseas branch in Indonesia during 1.2 600,000 the reporting period. As at 30 June People
0.9 1.21
Safety 1.11 2012, we employed 3,666 people. 400,000 Our safety culture was reinforced 1.11 0.6 200,000 0.20 with the number of internal safety 0.3 0.19 0.19 audits increasing by 41 per cent 0 08 09 10 11 12 0 (to more than 1,000) compared Energy use (LHS) Megajoules per $m of revenue (RHS) to the previous reporting period, including 70 audits by the Executive Leadership Team. Water consumption* Megalitres 1 Per million dollars of revenue. 300 0.16 250 0.12
200 254 242 National Centre of Indigenous 150 0.08 Excellence in Redfern 100 242 63 55 0.04 Our Indigenous and Torres Strait 50 n/r Islander Steering Committee met 0 08 09 10 11 12 0.00 Water consumption (LHS) monthly throughout the year, and Megalitres per $m of revenue (RHS)
in Aprilonly use personal For the meeting was held at the National Centre of Indigenous * Excellence in Redfern, New South Community contributions A$m Wales. After discussions with Elders about the Centre and our Indigenous 1.5 Direct and Torres Strait Islander Strategy, 09 0.13 1.2 10 0.17 Blackwoods initiated a cricket 11 0.38 1.31 workshop for Indigenous children 0.22 0.9 12 0.22 0.6 Indirect run by Mitchell Johnson. 09 0.05 0.22
0.21 10 0.04 0.3 0.18 11 0.93 0 09 10 11 12 12 0.00
62 Wesfarmers Sustainability Report 2012 *Data includes Coregas from July 2010; it was previously part of the (then) Energy division. Customers now have the ‘Greener Workplace Range’ in the 2012 Blackwoods catalogue to help them operate more sustainably. The safety of our employees and visitors is an ongoing priority for all of our businesses. Reducing energy consumed in our buildings and vehicle fleet is increasingly important and we are proud of our community support.
Hybrid vehicles 165 fuel efficient hybrid vehicles are now used by our sales people
Reduced energy use 26 per cent reduction in energy based on throughput at the Canning Vale distribution centre
Greener Workplace Range 520 products in the first chapter of the Greener Workplace Range in the 2012 Blackwoods catalogue Safety audits Internal safety audits increased by 41 per cent for the year
Community support More than $30,000 to The Fred Hollows Foundation from sales of the Foresight
range of products For personal use only use personal For
Lauren Kuyer, Team Leader, Blackwoods Canning Vale, Western Australia
Wesfarmers Sustainability Report 2012 63 Industrial and Safety (continued)
Our total recordable injury frequency In addition, more than 7,000 online To assist people with a disability or who are returning rate (TRIFR) improved to 24.7 for training sessions were completed to work after injury, some of our branches worked the year from 27.8 in the previous during the year by employees. with CRS Australia, a leading provider of disability reporting period, which aggregates employment and assessment services for people the frequency rates for medical with a disability, injury or health condition. treatment injuries (MTIFR) and lost 7,000 time injuries (LTIFR). LTIFR was 2.41 online training Environment for the year, which is an increase sessions completed Reducing our environmental impact in the form of from 2.34 for the previous year. by employees energy use, resource use and waste has been a The leadership team reviews safety priority during the reporting period. incidents, corrective actions, and The Blackwoods Canning Vale Distribution Centre in key safety performance indicators We had more than 490 employees Perth was retro-fitted with efficient lighting and daylight on a monthly basis to ensure that participate in instructor-led training sensors, reducing energy consumption by 26 per cent all of our businesses are safe courses covering sales, first aid, based on throughput. A retrofit of skylights at Total places to work. forklifts, hazard management and safety training. We also ran internal Fasteners in Brisbane reduced electricity consumption development programs focused by 32 per cent per million dollars of revenue. 11.1% on business, project management and commercial skills for 113 high reduction in TRIFR potential employees during the compared to the reporting year. We continue to previous year support employees completing Certificate III and IV qualifications During the year, we implemented in transport and logistics and priority safety initiatives including frontline management. outcomes from the ForkSafe project Diversity that engaged operational team Growth through a diverse workforce members from select warehouses remains a priority for our business, to roll out updated procedures with a range of diversity strategies and training for mobile equipment that focus on women (especially in operators. We revised the safe leadership positions), age diversity, operating procedure for storing and Indigenous people. goods at height, retrained key employees and developed weekly During the year, we focused on and daily inspection programs. recruiting Indigenous employees We also reviewed the safety risks and on improving cultural of employees temporarily working awareness of team members, overseas, including notifications of including senior management, emergencies, driving vehicles and through implementation of the travel insurance. Our emergency Aboriginal and Torres Strait Islander response and business continuity Strategy supported by a dedicated processes were reviewed during the steering committee. Safety in our warehouses reporting period. We also rolled out We also conducted the second Safe storage of goods in our warehouses, especially
a national flu vaccination program female employee survey to better goods stored at height in warehouse racking, is For personal use only use personal For for employees in Australia. understand female perspectives in critical for the safety of our people and visitors, which Training our business. The annual employee is why we have set up a dedicated team to update We continued to provide employees survey measured the opinions of our processes and training. Another high-risk area with training and development employees on a broad range of for our business is the operation of forklifts. Mobile opportunities. During the reporting topics including leadership, teams, equipment is a potential risk to pedestrians in the period, there were 56 new online business objectives, and our warehouse, and we are reducing our risk in this area courses made available to our work environment. by implementing technological solutions that monitor employees, bringing the total operating licences, speed limits and provide real-time number of courses available to 138. notification of any impacts.
64 Wesfarmers Sustainability Report 2012 Our businesses have reported a Greenhouse emissions We continued to work with our 24 per cent reduction in pages and energy use international suppliers to improve printed from the 2009 baseline for During the year, our Scope 1 and 2 the sustainability of our supply WIS (excluding Coregas)1. We also greenhouse emissions decreased chain by auditing the manufacturers introduced cardboard and plastic by 11 per cent to 97,740 tonnes of our own branded products. balers at our distribution centres We promoted sustainability with of CO2e, primarily due to reduced in Australia to improve recycling demand from the major customer our suppliers through the annual rates, as well as commencing of our Coregas plant in Port Kembla, Supplier of the Year awards, which implementation of national recycling NSW. Our total greenhouse gas recognise suppliers’ efforts in this and waste management contracts emissions were 232,733 tonnes area. The importance of sustainability to improve our waste to landfill was promoted to customers through of CO2e, which includes Scope diversion rate. 3 emissions. our marketing publications. As part of the Wesfarmers Our energy consumption Our New Zealand businesses registration under the Australian decreased by eight per cent for introduced a new employee survey Packaging Covenant, we have the reporting period. to benchmark themselves from an updated our supplier guidelines to ‘employer of choice’ perspective with include the key requirements of the Community other companies in New Zealand. Covenant, and submitted our first During the year, we supported annual report. partners and local community Forklift timers were introduced in groups with a total direct contribution our Australian Global Sourcing in Australia and New Zealand of warehouse in Sydney, which more than $220,000. This amount reduced our average peak demand has been verified by LBG and by four per cent despite business includes $11,000 contributed by activity increasing. WIS team members. Rob Sutton Area Sales For the first time, the 2012 Manager Blackwoods catalogue included a More than Blackwoods chapter on the ‘Greener Workplace Electrical Perth Range’, which featured 520 products $220,000 Rob Sutton is to help customers operate more total community an advocate for sustainably. The catalogue was contribution solar panels. In printed on Forest Stewardship early 2011, Rob helped source Council (FSC) certified paper for the Blackwoods contributed to The Fred solar panels for first time. We also used third party Hollows Foundation by donating a customer, and certified paper for the Protector a percentage of sales from the now Kyocera Alsafe catalogue, regular marketing Foresight range of products, which for solar panels are publications and internal paper the reporting period amounted to over Giovanni Italiano moves a cardboard bale promoted to all for recycling in a naturally-lit warehouse customers due requirements. NZ Safety developed $30,000. In May 2012, five employees at Canning Vale, Western Australia to the quality of a range of waste management and visited the Northern Territory to the panels, which recycling signs to help its customers witness the eye and health programs Material issues are backed by a improve their recycling. of The Fred Hollows Foundation in As a supplier of industrial and 20 year warranty. Aboriginal communities and one team A further 99 energy efficient hybrid safety products and services, Since 2011, member participated in the Jawun vehicles were introduced into our our material issues are: Rob has Secondment Program. We engaged helped several fleet to reduce fuel consumption and customers greenhouse gas emissions, which Indigenous suppliers for catering, • the sustainability of the supply generate brings the total number of hybrid printing and advertising, and also chain, including ethical labour renewable vehicles in our fleet to 165. Indigenous models. Our Aboriginal standards and the environmental energy with solar and Torres Strait Islander Steering impacts of manufacturing panels, including Committee met at the National products a 20 KW system at St Marys Centre for Indigenous Excellence • the safety and diversity of our School. Rob 165 and initiated a cricket workshop for people and our own operational hybrid vehicles in is passionate children with Australian cricketer environmental impact including about helping the fleet Mitchell Johnson. Our New Zealand customers greenhouse gas emissions businesses continued to contribute to and waste to generate St John, the Cancer Council, and the renewable • delivering safe and sustainable energy and has Construction also commenced on Hihi bird breeding program. even ‘walked the our new warehouse in Karratha, products and services to talk’ by installing Western Australia, which is being Governance customers on time to help them solar panels on built to a five-star industrial Green We remain committed to the meet their business objectives his own house. Star Rating, one of the first buildings sustainability of our supply chain, of this kind in Australia. including ethical labour standards
For personal use only use personal For and the environmental impacts of manufacturing products. We engaged more than 100 Australian and New Zealand suppliers in our updated supplier survey during the reporting period to reduce risk in ethical sourcing, dangerous goods, safety, trade practices legislation and chain of responsibility requirements.
1. Per million dollars of revenue Wesfarmers Sustainability Report 2012 65 Other businesses
In addition to the businesses included in BWP Trust Changes in Wesfarmers Group this report, Wesfarmers also holds major Wesfarmers owns 23.5 per cent of businesses investments in the following companies. BWP Trust, which develops and owns In August 2011, Wesfarmers sold Energy properties for our Bunnings business Generation Pty Ltd, which trades Queensland Nitrates Pty Ltd and other retail/commercial companies. as enGen, and in December 2011 Wesfarmers Premier Coal Limited, trading (QNP) For further information, please visit Through WesCEF, Wesfarmers owns a as Premier Coal, was sold. www.bwptrust .com.au 50 per cent interest in QNP, located at In addition, in January 2012 we sold Moura in central Queensland. QNP is an Wespine Industries our 69 per cent holding in Wesfarmers ammonium nitrate producer and services Wesfarmers owns 50 per cent of Wespine, Kleenheat Elpiji Limited, which operates the mining sector in the Bowen Basin. which operates a plantation softwood in Bangladesh. For further information, please visit sawmill at Dardanup in Western Australia. www.dawsonvalley.net/QNP Wespine purchases the majority of its raw material through its plantation log supply Bengalla coalmine agreement with the Western Australian Through our Resources division, Forest Products Commission, which is in Wesfarmers owns a 40 per cent interest place until 2033, thus providing long-term in the Bengalla coalmine in the Hunter resource security for the business. Valley in New South Wales, through a joint venture with Coal and Allied, a member For further information, please visit of the Rio Tinto group of companies. The www.wespine .com.au Bengalla mine produces steaming coal for domestic and export markets. Sotico In September 2011, Wesfarmers sold For further information, please visit the Boddington assets of Sotico Pty www.coalandallied .com.au Ltd to Newmont Boddington Pty Ltd and Saddleback Investments Pty Ltd. Gresham Partners These assets comprised approximately Group Limited 11,800 hectares at Boddington, Western Wesfarmers owns a 50 per cent interest Australia, where Sotico managed in Gresham Partners Group Limited, 3,300 hectares of pine plantation land the holding company for the Gresham and leased a further 1,000 hectares Partners investment banking operations. for eucalypt plantations. The carbon In addition, we are a participant in the emissions attributable to the softwood Gresham Private Equity wholesale logging business until the date of sale investment funds with underlying are included in the Corporate Office data investments in mining services, retail, in this report. logistics and other specialist sectors. For further information, please visit
www.gresham .com.au For personal use only use personal For
66 Wesfarmers Sustainability Report 2012 About this report
Information in this report is for the • the community contributions data Feedback financial year ended 30 June 2012. All were verified by either the London We welcome your feedback on this report. wholly owned or operationally-managed Benchmarking Group (LBG) on this A form has been provided for you on businesses are included. Other part- page or Net Balance as specified the inside back cover, or you can email owned businesses such as the Bengalla on page 70. info@wesfarmers .com.au. Last year, we coalmine in New South Wales, Wespine Net Balance relied upon the NGER Act received several formal comments, which softwood sawmill in Western Australia, audit and LBG processes for assurance we responded to individually. and Queensland Nitrates Pty Ltd in or verification of those parts of this report. Queensland are grouped in the Other businesses section page 66 of this report The report has also been assessed and we provide links to relevant websites against the provisions of the Global Verification for readers wishing to find out more Reporting Initiative (GRI) by that Statement from about their activities. organisation and assessed to be at the LBG Australia B+ level. The GRI statement is available On the inside back cover of this report & New Zealand on www.wesfarmers .com.au we have included a structure of the – 2012 Wesfarmers Group. All of our business Prior to these external assurance The LBG model helps businesses improve units operate autonomously, with a very processes, an extensive verification the measurement, management and limited number of shared services at check by representatives of our Group reporting of their corporate community a corporate level. The structure of this Insurance and Group Legal departments investment programs. It covers the full range was conducted with the business units of contributions (cash, time and in‑kind report reflects that divisional autonomy. donations) made to community causes. to ensure that the report is as accurate At the end of this report we have also and complete as possible. As managers of LBG Australia & New included the Data Bank (pages 68 and 69) Zealand, we can confirm that we have which covers a five year period. Safety data worked with Wesfarmers Ltd* to verify its understanding and application of the LBG As with the other data in this report, safety External assurance model with regard to the wide range of and workers’ compensation data are for community programs supported. and auditing the year ended 30 June 2012. However, The data and statements in this report the data reported for a particular year Our aim has been to ensure that the evaluation principles have been correctly have been externally audited or assured can change in subsequent reports as as follows: and consistently applied and we are satisfied circumstances (such as the duration of that this has been achieved. It is important • the principal assurance of the report time lost from work) can change over time. to note that our work has not extended to an to the AccountAbility’s AA 1000 2008 Lost time injury frequency rate (LTIFR) independent audit of the data. Assurance Standard was conducted includes contractors where possible and We can confirm that Wesfarmers Ltd* by Net Balance Management Group unless otherwise specified, whereas the has invested $27,984,920 (exclusive of Pty Ltd (Net Balance). A copy of the total recordable injury frequency rate management costs) in the community independent assurance statement is (TRIFR) data includes only employees. in this 2012 reporting year as defined by available at page 70 the LBG methodology. • the Australian Scope 1 and 2 Completeness * LBG verification did not include verification of data from We do not claim that this report provides Bunnings and Office Supplies greenhouse emissions and energy 100 per cent coverage of our sustainability Verified by Simon J Robinson use were audited by Ernst & Young performance. Any gaps in our knowledge and Kate Robinson to the requirements of the National will be reduced as our systems continually On behalf of LBG Australia & New Zealand Greenhouse and Energy Reporting improve. This document is a best- September 2012 (Measurement) Determination 2008
For personal use only use personal For endeavours attempt to report openly (NGER Act) and we provided a copy and honestly based on our current state of the audit report to the Australian of knowledge. Our businesses include Clean Energy Regulator. The other relevant additional information on their greenhouse and energy data were websites as it becomes available. assured by Net Balance as described in their assurance statement. Emissions During the year, Wesfarmers sold two for other countries are calculated subsidiaries: Premier Coal in December according to relevant government 2011; and enGen in August 2011. Data standards in those countries. covering the ownership period is included in the Data Bank on the following pages.
Wesfarmers Sustainability Report 2012 67 Data Bank
Greenhouse gas emissions (tonnes CO2e) 2008 2009 2010 2011 2012 Scope 1 Scope 1 Scope 1 Business unit1 and 22 Scope 33 Total and 2 Scope 3 Total and 2 Scope 3 Total Coles 2,938,829 2,978,518 2,183,867 346,989 2,530,856 2,148,630 375,176 2,523,808 2,011,400 390,209 2,401,609 Bunnings 186,525 179,046 169,828 40,792 210,620 177,473 48,711 226,184 185,659 57,241 242,900 Office Supplies n/r 55,522 54,544 8,818 63,362 55,938 9,062 65,000 57,339 9,528 66,867 Target 230,545 219,858 205,568 34,259 239,827 205,302 39,693 244,995 191,630 39,460 231,090 Kmart 310,391 257,087 262,472 40,925 303,397 252,685 58,983 311,668 259,484 54,218 313,702 Resources4 614,619 707,725 672,426 42,962 715,388 649,374 44,652 694,026 644,384 45,549 689,933 Insurance 12,975 12,236 12,417 988 13,405 9,452 3,337 12,789 9,891 4,026 13,917 WesCEF4,5 1,811,792 1,862,605 1,929,684 94,903 2,024,587 1,875,740 147,001 2,022,741 1,493,883 131,621 1,625,504 WIS6,7 33,546 25,231 23,342 6,672 30,014 197,755 45,316 243,071 97,740 134,993 232,733 Corporate n/r 716 1,251 102 1,353 1,301 3,993 5,294 1,000 1,370 2,370 Group total 6,139,222 6,298,544 5,515,399 617,410 6,132,809 5,573,650 775,924 6,349,576 4,952,410 868,215 5,820,625 n/r means data was not collected or recorded.
Wesfarmers’ two joint ventures and a partly-owned company had combined Scope 1 and 2 emissions of 347,018 tonnes CO2e in 2011/12 on an equity basis (40% of Bengalla coalmine in New South Wales; 50% of Queensland Nitrates Pty Ltd in Queensland; and 50% of Wespine in Western Australia) based on their NGER Act records for 2011/12.
An estimate of our transport supply chain emissions in Australia and overseas is 650,925 tonnes CO2e. 1 Business unit data include emissions in all countries they operate in. 2 The Scope 1 and 2 data include all businesses where Wesfarmers has operational control under the NGER Act; emissions related to our businesses in New Zealand, the United Kingdom and several Asian countries; and businesses we manage in Australia (e.g. Air Liquide WA) where we do not exercise operational control as defined by the NGER Act. 3 The Scope 3 emissions include electricity and gas transmission; liquid and gaseous fuel components; waste; rental vehicles; air travel emissions and some incidental sources.
4 Premier Coal and enGen are not included in the 2012 data. Their total Scope 1, 2 and 3 emissions were 82,847 tonnes CO2e for FY12 (enGen 42,202 tonnes CO2e; Premier Coal 40,645 tonnes CO2e). 5 The WesCEF data for years prior to 2011 is an aggregation of the data previously reported for the (then) Energy, and Chemicals and Fertilisers divisions – the data prior to 2011 include Coregas. 6 The WIS emissions increased in 2011 because of the inclusion of Coregas in that division from July 2010. 7 The WIS mixture of Scope 1 and 2 and Scope 3 emissions has changed in FY12 as a result of emissions from the Port Kembla Coregas plant being reclassified as Scope 3 from Scope 2 (Coregas does not directly purchase the electricity used).
Waste disposal and recycling (tonnes) 2009 2010 2011 2012 Business unit disposed recycled disposed recycled disposed recycled disposed recycled Coles 122,570 125,363 90,961 131,242 100,107 141,022 98,902 151,300 Bunnings 19,898 9,150 17,936 14,488 17,991 9,419 22,061 30,715 Office Supplies n/r n/r 1,073 2,257 1,581 2,588 2,314 2,939 Target 6,381 16,955 6,068 17,201 8,342 22,161 7,983 21,359 Kmart 5,235 26,362 6,126 28,387 10,062 34,134 11,038 34,359 Resources 960 2,162 869 2,251 1,083 459 2,801 825 Insurance n/r n/r n/r n/r n/r n/r 168 504 WesCEF1,2 144,944 1,721 9,954 1,500 4,659 2,245 11,042 5,604 WIS 3,103 659 3,645 543 3,252 591 2,007 546 Corporate n/r n/r n/r 13 63 20 9 19 Group total 303,091 182,372 136,632 197,882 147,140 212,639 158,325 248,170 n/r means data was not collected or recorded. 1 The WesCEF data for years prior to 2011 is an aggregation of the data previously reported for the (then) Energy, and Chemicals and Fertilisers divisions – the data prior to 2011 include Coregas, which from 2011 onwards is reported with WIS. 2 The waste disposal by WesCEF decreased significantly in 2010 because the business unit concluded the soil disposal element of a complex contaminated site remediation in 2009.
Water consumption (megalitres) Energy consumed (petajoules) Business unit 2008 2009 2010 2011 2012 Business unit 2008 2009 2010 2011 2012 Coles 1,725 2,170 2,709 2,983 3,858 Coles 7.02 7.29 7.39 7.27 7.08 Bunnings 844 717 691 732 869 Bunnings 0.69 0.73 0.77 0.82 0.87 Office Supplies n/r n/r 52 50 52 Office Supplies 0.06 0.17 0.21 0.21 0.22 Target n/r n/r 339 311 306 Target 0.76 0.82 0.84 0.82 0.77 Kmart n/r n/r 775 767 658 Kmart 1.05 0.99 1.04 1.08 1.06 Resources1 3,654 3,045 3,402 2,707 2,7423 Resources1 3.33 4.31 3.94 4.00 4.13 Insurance 113 119 66 80 73 Insurance 0.08 0.09 0.08 0.08 0.09 WesCEF2 3,630 3,591 4,143 4,220 4,3473 WesCEF1,2 17.88 15.16 17.93 18.25 14.66 WIS n/r 55 63 254 242 WIS3 0.20 0.19 0.19 1.21 1.11 Corporate n/r 7 3 4 4 Corporate n/r 0.01 0.01 0.01 0.01 Group total 9,966 9,704 12,243 12,107 13,151 Group total 31.07 29.76 32.40 33.75 30.00 n/r means data was not collected or recorded. n/r means data was not collected or recorded. 1 The reduced water use for the Resources business unit between 2010 and 2011 was largely due This data includes all energy use that is within the scope of this report except joint ventures we do to record rainfall in Queensland, causing production disruptions and a reduced need for dust not operate and the energy use associated with air travel emissions. suppression. 1 enGen and Premier Coal (combined FY11 energy use was 4.57 Pj) are not represented here. 2 The WesCEF data for years prior to 2011 is an aggregation of the data previously reported for the During the ownership period in FY12 they used 0.98 Pj.
(then)only use personal For Energy, and Chemicals and Fertilisers divisions – the data prior to 2011 include Coregas, 2 The WesCEF data for years prior to 2011 is an aggregation of the data previously reported for the which from 2011 onwards is reported with WIS. (then) Energy, and Chemicals and Fertilisers divisions – the data prior to 2011 include Coregas. 3 Premier Coal and enGen are not included in the 2012 data. In 2011, these businesses used a 3 WIS energy consumed increased because of the inclusion of Coregas in that division from combined total of 575 megalitres. July 2010.
68 Wesfarmers Sustainability Report 2012 Workers’ compensation claims Lost time injury frequency rate (LTIFR) Business unit 2008 2009 2010 2011 2012 Business unit 2008 2009 2010 2011 2012 Coles 5,547 5,482 5,474 6,112 5,905 Coles1 17.45 15.55 12.87 16.98 12.99 Bunnings 1,068 1,304 1,258 1,080 1,442 Bunnings 13.79 14.56 12.53 13.41 13.28 Office Supplies 255 240 209 215 187 Office Supplies 10.40 12.30 11.95 12.17 10.81 Target 837 834 757 765 716 Target 9.34 9.20 7.97 8.142 8.01 Kmart 1,314 1,223 1,077 907 893 Kmart 10.74 11.18 9.02 6.78 9.26 Resources 41 63 57 47 27 Resources 7.20 2.53 2.14 1.282 1.63 Insurance 40 33 30 15 25 Insurance 3.70 2.22 0.89 0.83 2.71 WesCEF1 74 62 61 58 51 WesCEF3 4.05 2.60 3.82 4.59 6.50 WIS 138 134 117 132 133 WIS 4.60 2.40 1.61 2.34 2.41 Corporate 0 3 0 3 1 Corporate 0 4.85 0 0 0 Group total 9,314 9,378 9,040 9,334 9,380 Group total 9.94 13.06 10.95 12.89 10.90 1 The WesCEF data for years prior to 2011 is an aggregation of the data previously reported for the 1 The Coles data increased in 2011 in part due to a technical change in reporting methodology to (then) Energy, and Chemicals and Fertilisers divisions – the data prior to 2011 include Coregas. ensure consistency across the Group. 2 Figure restated due to a reclassification of claims. 3 The WesCEF data for years prior to 2011 is an aggregation of the data previously reported for the (then) Energy, and Chemicals and Fertilisers divisions – the data prior to 2011 include Coregas.
Number of hours worked by employees Total recordable injury frequency rate (TRIFR)1 Business unit 2008 2009 2010 2011 2012 Business unit 2010 2011 2012 Coles 104,317,176 111,464,731 110,744,686 109,973,384 108,708,374 Coles 45.8 43.9 50.4 Bunnings 32,346,368 33,916,817 35,749,310 36,921,064 38,920,964 Bunnings 35.9 36.62 38.8 Office Supplies 5,884,429 6,257,964 6,613,388 6,984,777 7,028,507 Office Supplies 47.22 36.2 35.9 Target 20,246,165 20,664,453 20,204,521 21,110,499 19,524,502 Target 63.1 57.4 54.1 Kmart 26,075,503 24,499,000 25,680,268 24,284,994 23,968,612 Kmart 94.8 40.8 37.1 Resources 2,650,770 3,550,808 3,263,519 3,875,831 4,388,518 Resources 30.3 29.2 16.3 Insurance 5,078,144 5,415,648 5,616,469 5,467,197 6,644,424 Insurance 3.6 2.5 7.1 WesCEF1 4,169,727 4,253,030 3,841,739 3,488,097 3,536,418 WesCEF 17.6 15.8 16.4 WIS 5,817,131 5,829,832 5,600,947 6,407,312 6,690,396 WIS 29.1 27.8 24.7 Corporate 304,392 412,513 400,975 329,970 373,347 Corporate 0 0 0 Group total 206,889,805 216,264,796 217,715,822 218,843,125 219,784,062 Group total 49.33 40.9 42.7 1 The WesCEF data for years prior to 2011 is an aggregation of the data previously reported for the 1 TRIFR and all injury frequency rate (AIFR) have the same calculation. (then) Energy, and Chemicals and Fertilisers divisions – the data prior to 2011 include Coregas. 2 The FY10 data for some business units was prepared using a slightly different basis than the subsequent years, which conform to the relevant Australian Standard. 3 The reported data in FY10 is likely to be higher than the actual position due to the inclusion of some first aid treatment incidences.
Community contributions ($m) 2009 2010 2011 20121 Business unit Direct Indirect Total Direct Indirect Total Direct Indirect Total Direct Indirect Total Coles 12.36 7.36 19.72 7.32 1.85 9.17 15.61 6.70 22.31 19.04 2.88 21.92 Bunnings 3.61 11.92 15.53 2.03 18.06 20.09 3.28 23.09 26.37 2.82 24.97 27.79 Office Supplies 0.49 n/r 0.49 0.51 0 0.51 0.97 0.38 1.35 1.01 0.05 1.06 Target 0.99 1.68 2.67 1.44 1.64 3.08 1.10 2.02 3.12 1.38 2.05 3.43 Kmart 1.02 10.83 11.85 2.35 4.53 6.88 0.74 10.57 11.31 1.15 10.41 11.56 Resources 0.86 n/r 0.86 0.68 0.03 0.71 0.83 0.04 0.87 0.55 0.05 0.60 Insurance 0.84 n/r 0.84 0.96 0 0.96 0.41 0.03 0.44 0.38 0.00 0.38 WesCEF2 0.69 0 0.69 0.44 0.01 0.45 0.29 0.00 0.29 0.49 0.00 0.49 WIS 0.13 0.05 0.18 0.17 0.04 0.21 0.38 0.93 1.31 0.22 0.00 0.22 Corporate 4.78 0.01 4.79 3.70 0.02 3.72 10.19 0.01 10.20 4.78 0.01 4.79 Group total 25.77 31.85 57.62 19.60 26.18 45.78 33.80 43.77 77.57 31.82 40.42 72.24 Direct contributions include cash, product at cost and in-kind contributions at cost; indirect contributions are those made by others where a Wesfarmers business facilitated and supported the contribution, e.g. customer donations to an appeal at point of sale. n/r means data was not collected in that year. 1 The data in this table does not include management costs as defined by LBG – in 2011/12 these were approximately $1.85 million for our LBG verified businesses. 2 The WesCEF data for years prior to 2011 is an aggregation of the data previously reported for the (then) Energy, and Chemicals and Fertilisers divisions – the data prior to 2011 include Coregas.
Environmental-related expenditure ($m) Business Unit 2008 2009 2010 2011 2012 Coles 2.27 3.15 9.00 15.35 67.1 Bunnings 6.84 10.00 4.12 4.67 5.43 Office Supplies n/r n/r 0.02 0.08 0.21 For personal use only use personal For Target 0.24 0.23 0.17 0.32 0.23 Kmart n/r 1.28 1.59 2.16 2.50 Resources1 14.20 11.67 32.34 5.53 6.46 Insurance 0.13 0.24 0.21 0.01 0 WesCEF2 6.54 11.02 5.63 6.40 8.25 WIS 0.04 0.06 0.20 0.20 0.22 Corporate 0.88 0.79 0.64 0.24 0.18 Group total3 31.14 38.44 53.92 34.96 90.58 n/r means data was not collected or recorded. Of the total expenditure on environmental and related matters, $7.34 million was required by regulation and $83.24 million was not required by regulation. 1 The large increase in 2010 relates to environmental facets and ecosystem offsets for the Blackwater Creek project at the Curragh mine. 2 The WesCEF data for years prior to 2011 is an aggregation of the data previously reported for the (then) Energy, and Chemicals and Fertilisers divisions – the data prior to 2011 include Coregas. 3 The large increase in 2012 relates primarily to energy efficiency expenditure.
Wesfarmers Sustainability Report 2012 69 Independent Assurance Statement
To the Directors of Wesfarmers Limited: Assurance level and limitations and reporting procedures used by Wesfarmers Group and each of the Wesfarmers Limited (Wesfarmers) The level of assurance provided was business divisions commissioned Net Balance Management moderate, as defined by the scope and Group Pty Ltd (Net Balance) to provide methodology described in this assurance • communication with key personnel independent assurance of its 2012 statement. The assurance covered the whole responsible for the Report to ascertain Sustainability Report (the Report). The of the Report and focused on systems and their views, understanding and response Report presents Wesfarmers’ sustainability activities of Wesfarmers during the reporting to material sustainability issues faced by performance during the period 1 July period, with the following exceptions: the Wesfarmers Group 2011 to 30 June 2012. Wesfarmers Group • The scope of work did not involve • interviews with key personnel responsible and Wesfarmers’ business divisions were verification of financial data, other than for collating and writing various parts of responsible for the preparation of the Report, those relating to environmental, social or the Report to substantiate the reliability and this statement represents the assurance broader economic performance. of selected claims. Representatives provider’s independent opinion. Net Balance’s • Assurance of Scope 1 and 2 greenhouse of each of the wholly owned business responsibility in performing its assurance gas emissions reportable under the divisions were interviewed by members activities is to the Board of Directors and National Greenhouse and Energy of the assurance team as part of a series management of Wesfarmers alone and in Reporting Act 2007 (NGER legislation) of site visits. Interviews were conducted accordance with the terms of reference in Australia was undertaken by another with representatives of Bunnings, Coles, agreed with them. Other stakeholders should external auditor. This work was not Curragh Coal, Industrial and Safety, perform their own due diligence before taking replicated and Net Balance’s opinion in Insurance, Kmart, Officeworks, Target, any action as a result of this statement. the area of greenhouse gas emissions and Wesfarmers Chemicals, Energy & relies in part on the assurance opinion Fertilisers. In addition, interviews were Assurance standard and objectives issued by the external auditor. Net also conducted with representatives of The assurance process was undertaken in Balance’s assurance of greenhouse gas Wesfarmers Group accordance with AccountAbility’s AA1000 emissions covered all other data not • a review of the Report for any significant 2008 Assurance Standard (AA1000AS). The reported under the NGER Legislation anomalies, particularly in relation to standard provides a comprehensive way of (Scope 3 emissions, non-Australian claims as well as trends in data ensuring that an organisation is responsible for operations, and operations outside of • verification of more than 240 data points the management, performance and reporting Wesfarmers’ operational control for the and statements selected from the Report of its sustainability issues. This is achieved purposes of the legislation). through evaluation of the organisation’s and examination of the systems and • Assurance of Bunnings’ waste, water and adherence to the AA1000 AccountAbility processes that support the claims Scope 3 greenhouse gas emissions was Principles (2008) and by reviewing the • collecting and evaluating evidence to undertaken by another external auditor. reliability and quality of disclosed sustainability support the assurance work undertaken This work was not replicated and Net performance information. Balance’s opinion in relation to waste, • a Global Reporting Initiative (GRI) G3 The AA1000 AccountAbility Principles (2008) water and Scope 3 greenhouse gas Application Level Assessment used to assess Wesfarmers’ processes emissions relies in part on the assurance include: opinion issued by the external auditor. Our independence In conducting this assurance engagement, Inclusivity: An assessment is made as • Assurance of detailed community Net Balance has met the requirements of to whether the organisation has included contributions data for all divisions was our Independence Policy, available at stakeholders in developing and achieving undertaken by the London Benchmarking www.netbalance .com/services/assurance an accountable and strategic response Group, with the exception of community Net Balance confirms that we are not to sustainability. contributions data for Home Improvement aware of any issue that could impair our Materiality: An assessment is made as and Office Supplies, which was reviewed objectivity in relation to this assurance to whether the organisation has included as part of Net Balance’s assurance engagement. Net Balance has not had any in its report the material information and process. part in collecting and calculating data, or in data required by its stakeholders to make preparing Report content covered by the informed judgements, decisions and actions. Assurance methodology scope of the engagement. Responsiveness: An assessment is The assurance engagement was During the reporting period, Net Balance made as to whether the organisation has undertaken between May and October 2012, team members that were not involved in the responded to stakeholder concerns, policies and involved: assurance engagement undertook work for and relevant standards and adequately • a materiality review of key sustainability some of Wesfarmers’ divisions. Net Balance communicated these in its report. issues using AccountAbility’s five- assisted Bunnings with data collection relating part materiality test, this included a to waste, water and Scope 3 greenhouse Assurance type and scope comparison of Wesfarmers and its gas emissions. Where this occurred, the Net Balance provided Type 2 assurance business divisions against their peers, a relevant disclosures have been excluded in accordance with the AA1000AS (2008). risk review, an industry review, a review of from the scope of this engagement and This involved assessing the organisation’s selected Australian media reports and a assured separately by a third party, Clear adherence to the AA1000 AccountAbility policy review Principles (2008) and assessing the accuracy Environment. Their assurance statement • review of management representations is on the Wesfarmers website. Based on a
and only use personal For quality of the sustainability information to better understand how Wesfarmers contained within the Report. review of the other unrelated work conducted Limited and one of its divisions, Coles, for Wesfarmers’ divisions against the The review of adherence to the principles are addressing key sustainability requirements of our Independence Policy, Net was undertaken using the criteria outlined challenges and how sustainability is Balance and Wesfarmers do not believe that in the AA1000 Assurance Principles integrated within the organisation our independence has been impaired. Standard (2008), while assessment of • independent engagement with the accuracy and quality of sustainability Net Balance’s Independence Policy also stakeholders of Wesfarmers Limited performance information was undertaken identifies that a threat to our independence at a corporate level using Wesfarmers’ indicator protocols and may arise if in the reporting period non-audit the Global Reporting Initiative’s (GRI) G3 • a review of the key sustainability work fees exceed 200% of audit work fees Reporting Principles for Defining Quality. strategies, policies, objectives, for a client, or if the value of a client’s fees management systems, measurement is greater than 15% of total Net Balance
70 Wesfarmers Sustainability Report 2012 revenue for the financial year. In this reporting In the future, it is recommended that The way forward period, non-audit work undertaken for the Wesfarmers align the decisions relating to Wesfarmers continues to deliver a Wesfarmers divisions totalled 163% of our the Report content at both a Group and a consolidated view of Group performance audit fee, and the value of fees received divisional level to the corporate planning within the Sustainability Report. As from Wesfarmers was less than 15% of process. Prioritisation of material topics recognised best practice continues to total revenue. for reporting should be carried out at the evolve, it is important for Wesfarmers to business division level in a consistent consider these changes when preparing for Our competency manner. To ensure that the key themes future reporting periods. For example, GRI, The Wesfarmers assurance engagement used to structure the Report reflect the (G4) which is currently under development was carried out by an experienced team of organisation’s material risks and stakeholder includes consideration of value chain and professionals led by a Lead Sustainability information needs, these themes should reporting boundary, which will impact the Assurance Practitioner (Lead CSAP). The be reviewed and updated on a regular way that Wesfarmers frames its sustainability project included personnel with expertise basis. As an example, themes identified by report in the future. in environmental, social and economic stakeholders as important (e.g. customer Given Wesfarmers’ diverse operations, performance measurement across a range feedback) are not always adequately covered a challenge still exists to foster a Group- of industry sectors. Net Balance is a global by the current report structure. wide approach to the holistic integration of leader in the use of the AA1000AS, having Responsiveness sustainability considerations into strategy undertaken more than 150 assurance In general, Wesfarmers appears to address development and execution. To support engagements in Australia over the past the needs, concerns and expectations of the developing approach to sustainability, six years. its stakeholders in a timely way. This was Wesfarmers should also consider developing demonstrated through a range of formal and implementation and reporting guidelines. Findings and conclusions informal communication mechanisms across These documents could provide guidance Adherence to AA1000 Principles the business. Responsibility for developing to divisions on principles and processes for Inclusivity responses was found to be spread across stakeholder engagement, including how Responsibility for engaging with the Group and business divisions. In several to use stakeholder feedback to inform the stakeholders rests primarily at the business instances it was clear that material issues are corporate planning process; as well as a division level. As a consequence, there is considered as part of the regular business process for materiality assessment which variation across Wesfarmers in the extent planning processes. links to the risk assessment and corporate and quality of engagement undertaken. planning process. Currently, the materiality There are examples of innovative and The business should also use stakeholder processes undertaken by the divisions is proactive engagement in the business feedback to better inform strategic planning separate from their sustainability programs. such as Target and Industrial and Safety’s and decision-making processes at both the Ideally, this risk and prioritisation process ethical sourcing audits of suppliers, as Group and business division levels. With should shape the sustainability actions and well as continuing initiatives at Coles (‘Tell some aspects of retail operations increasingly initiatives at each division. The guidelines Coles’) and Bunnings’ engagement with being portrayed negatively in the media, clear should also outline clear criteria for timber suppliers. In general, stakeholder communication of stakeholder engagement reporting consistent metrics which are then engagement mechanisms were found outcomes is particularly important. For aggregated at the Group level. to exist at Group and divisional levels; example, how Coles deals with its suppliers however, the processes of communicating has been an area receiving significant internal In the current reporting period, Wesfarmers the outcomes of stakeholder engagement focus partially in response to stakeholder made good progress towards assurance could be improved. Examples of reactive concern. Net Balance notes that there against the AA1000 principles with selected engagement were also noted to be present are a number of examples in the Report business divisions and at the Group level. within the business. This kind of engagement where divisions have engaged directly with Net Balance undertook interviews and may result in the business missing out on stakeholders on issues of concern. reviewed management representations opportunities to genuinely engage directly Reliability of performance information for Coles and Bunnings as part of this with stakeholders. This could be overcome Based on the scope of the assurance process. This process provided further by ensuring that the Group and each division process, the following was observed with insight into how sustainability is embedded maps its key stakeholders to ensure that regard to performance information: into divisions’ systems and processes. It is engagement practices are more systematic. recommended that Wesfarmers builds upon • The findings of the assurance this approach in future years to encompass Wesfarmers, as a large and diversified group, engagement provide confidence in the all business divisions. has supported each division to become underlying systems and processes used Net Balance has provided additional operationally autonomous. While this brings for managing and reporting sustainability suggestions for reporting improvement in the many benefits, it should also be recognised performance information. that, particularly in the sustainability sphere, Assurance Report presented to Wesfarmers’ • The level of accuracy of sustainability efficiencies and best practice can result management. performance information was found to from knowledge sharing. Wesfarmers is On behalf of the assurance team be acceptable. commended for encouraging this inclusive 10 October 2012 approach, for example, information • Data trails selected were identifiable and exchange between retail divisions on best traceable, and the personnel responsible Melbourne, Australia practice for ethical sourcing. Net Balance were able to reliably demonstrate the notes that there are many more opportunities origin(s) and interpretation of data. for divisions to collaborate and learn from • The sustainability performance each other. disclosures presented within the Report Kim Farrant Materiality appropriately reflect environmental, social Associate Director, Net Balance The Report was found to have appropriately and economic performance achieved Lead CSAP during the period. addressedonly use personal For Wesfarmers’ key environmental, social and economic material issues in a • The GRI application level check classified balanced way. Wesfarmers has this year the Report as Level B+. again reported in line with five key themes Overall, it is Net Balance’s opinion that the which were developed in consultation information presented within the Report with the business divisions to reflect the is fair in all material respects. The Report range of impacts that apply to Wesfarmers’ was found to present a reliable account of businesses. We also understand that the Wesfarmers’ sustainability performance issues covered in the Report partly reflect during the reporting period. those identified through the corporate planning process.
Wesfarmers Sustainability Report 2012 71 Glossary This glossary contains an explanation of terms used several times in the text of this report.
All injury frequency rate Gigalitre: Petajoule: (AIFR): A measure of volume equal to one A measure of energy equal to one A safety measure calculated in the same billion litres million gigajoules way as TRIFR Greenhouse gases: Total recordable injury Australian Packaging Covenant Gases such as carbon dioxide, methane, frequency rate (TRIFR): (APC): nitrous oxide, sulphur hexafluoride and A measure commonly used to report An agreement between governments, complex manufactured refrigerant gases workplace safety performance, which is the packaging industry, retailers and which contribute to the retention of heat calculated by dividing the number of LTIs consumer brand owners, which sets in the earth’s lower atmosphere and medical treatment injuries by the total guidelines through annual plans and hours worked, multiplied by one million Scope 1: direct emissions of greenhouse public reporting for resource conservation gases from combustion of fuel, industrial and waste reduction in the manufacture, processes, refrigerant gases and coal Wesfarmers Greenhouse and supply, distribution, consumption and seam methane Energy Reporting System recovery/recycling of consumer packaging (WesGERS): Scope 2: emissions created by others The online reporting system used by Australian Standards: generating electricity used by Wesfarmers Wesfarmers to monitor and report National benchmarks for products Scope 3: indirect emissions (directly on all greenhouse emissions and and services emitted by suppliers to Wesfarmers) energy used and produced, and for activities such as electricity and gas other sustainability data Carbon dioxide equivalent transmission, waste disposal and air travel (CO2e): Engaging our stakeholders A standard method for converting the Liquefied Petroleum Gas (LPG): Page 10 artwork credits global warming potential of all greenhouse Comprising predominantly propane and Left painting gases to a standard unit related to the butane extracted from natural gas or as Giorgio de Chirico global warming potential of carbon dioxide a by-product of petroleum refining (Italian, born Greece. 1888-1978) The Nostalgia of the Infinite Energy Efficiency Liquefied Natural Gas (LNG): Paris 1912-13? (dated on painting 1911) Opportunities Act 2006 (EEO): Comprising predominantly methane, LNG Oil on canvas This legislation is Australian federal 53 1/4 x 25 1/2” (135.2 x 64.8 cm) is produced from natural gas that has The Museum of Modern Art, New York legislation designed to require large been purified, refrigerated and condensed energy users to develop and report Purchase to liquid form © 2012 Artists Rights Society (ARS), on energy efficiency initiatives in their New York / SIAE, Rome business Lost time injury (LTI): A work-caused injury which results in Middle painting Forest Stewardship Council an absence for one day (or work shift) Giorgio de Chirico (FSC): or more (Italian, born Greece. 1888-1978) This Council is an independent, non- The Enigma of a Day government, not-for-profit organisation Paris, early 1914 Lost time injury frequency Oil on canvas established to promote the responsible rate (LTIFR): management of the world’s forests 6’ 1 1/4” x 55” (185.5 x 139.7 cm) A measure commonly used to report The Museum of Modern Art, New York workplace safety performance which is James Thrall Soby Bequest Fugitive emissions: calculated by dividing the number of LTIs © 2012 Artists Rights Society (ARS), Generally deliberate but not fully controlled New York / SIAE, Rome For personal use only use personal For by the total hours worked, multiplied by (or in all cases avoidable) emissions that one million typically result from leaks from pumps, Right painting pipes and valves, coal seam methane or National Greenhouse and Giorgio de Chirico vapours emitted when large hydrocarbon Energy Reporting Act 2007 (Italian, born Greece. 1888-1978) storage tanks are filled The Song of Love (NGER Act): Paris, June-July 1914 This Act governs the public reporting of Oil on canvas energy use and greenhouse emissions 28 3/4 x 23 3/8” (73 x 59.1 cm) by large organisations in Australia The Museum of Modern Art, New York Nelson A. Rockefeller Bequest © 2012 Artists Rights Society (ARS), New York / SIAE, Rome 72 Wesfarmers Sustainability Report 2012 Group structure
Retail Industrial and other businesses
Home Chemicals, Industrial Other Coles Improvement Target Kmart Insurance Resources Energy and and Safety activities and Office Fertilisers Supplies
Coles/Bilo Target Curragh CSBP Bunnings Kmart Australia Australia Gresham (Aust/NZ) (Aust/NZ) Lumley Blackwoods Partners (50%) Coles Target insurance Bengalla Australian Bullivants Express Officeworks Country (40%) Gold Kmart Tyre WFI Coregas Reagents & Auto Oamps (75%) Total Wespine Liquorland Harris Urban Service Fasteners Industries Technology by target New Zealand Protector (50%) Vintage Alsafe Lumley Queensland Cellars Nitrates Crombie (50%) BWP Trust Lockwood New Zealand (23.5%) first Choice Liquor Blackwoods Australian protector Oamps UK Vinyls Coles NZ Safety Online Packaging Air Liquide House WA (40%) Hotels Safety Source Kleenheat Gas
Wesfarmers Limited
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