Sustainability Report 2019 Contents
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Sustainability Report 2019 Contents A word from the CEO 1 Sustainability snapshot 2 About this report 4 About Downer 8 Materiality and stakeholder inclusiveness 12 Governance 18 Health and safety 26 People 36 Environment 52 Communities 72 KPMG Assurance Statement 78 GRI Standard Content Index 80 A word from the CEO Downer is the leading integrated services provider in Australia and New Zealand. We employ approximately 53,000 people and generated $13.4 billion in revenue in the 2019 financial year. Our people play a vital role in delivering Sustainability is embedded in our talent retention as a key pillar of our the services we provide for our customers. company and integrated into Downer’s People strategy and implement a range These services affect the everyday lives of business strategy. Our commitment to of initiatives to ensure our staff are people across Australia and New Zealand, sustainability is consistently recognised by motivated and rewarded. Pleasingly, our although most don’t realise how often they leading independent ESG rating agencies, employee engagement score increased have touched the Downer ecosystem. who regularly award Downer high scores three per cent this year in our for sustainability performance. annual survey. Downer is there from the moment people wake up – from the power they A key milestone this year was our Downer seeks to identify the issues use to turn on a light or cook breakfast climate-related disclosures, which that have the greatest potential to the supply of water for their shower. implemented the recommendations of the to impact our future success and When they leave the house, Downer will Task Force on Climate-related Financial returns to shareholders. This year we probably be involved in their journey. We Disclosures (TCFD). A particular focus revisited our materiality assessment in might maintain the road they travel on. was on scenario analysis to test Downer’s accordance with the Global Reporting We might have built, and now maintain, portfolio, the resilience of our strategy Initiative (GRI) Standards to identify the trains they ride, or run their tram and the assumptions associated with the what our stakeholders believe are system. Or we might operate the bus relevant climate futures, both physical the material issues for Downer. The networks they rely on. and transitional. Additionally, we have set assessment reinforced the importance an ambitious long-term greenhouse gas our stakeholders place on governance We are a leader in the telecommunications emission reduction target that aligns with frameworks, which is why we have sector as well. Whether someone is on the 2015 Paris Agreement goals to pursue increased our reporting on Downer’s the phone or online, we have more than efforts to limit the temperature increase to governance and ethical conduct in this likely had a role to play – Downer is a 1.5°C by the end of this century. year’s report. major partner of both nbn™ in Australia and Chorus in New Zealand, providing I’m also pleased to report Downer’s FY19 I would like to take this opportunity high speed broadband, and we work for safety performance improved on the to thank our employees, customers, many of the major telecommunications previous 12 months. We are constantly communities, business partners and companies. looking to ensure all our people go home suppliers for your continued support. from work safely every day. This focus Together, we have enabled the lives of We are also heavily involved in providing extends beyond physical health to mental millions of people over the past 12 months, services for social infrastructure such as health as well. Many of the industries and will continue to do so in the future. schools, universities, hospitals, prisons, and we operate in are characterised by poor other areas of government such as defence. mental health statistics. Over the past 12 Our customers trust us to deliver these months we have enhanced the support services that will have a direct impact on for our people and their families. their customers each day. We look to our people to bring different With our services impacting so many and unique views to the table and Grant Fenn lives, the sustainability of our operations therefore we continue to strengthen our Managing Director and is paramount – for our people, our focus on recruiting strategically to increase Chief Executive Officer partners, our shareholders, our customers workforce participation across a range of and their customers. diverse demographics. We prioritise Sustainability Report 2019 1 Sustainability snapshot Financial $462.2m $13.4b $44.3b $276.3m Earnings before Total revenue Work in hand interest and tax Net profit after tax (EBIT) (NPAT) 288.6% 125.7% 6.6% 5.5% People Employees – 72% 65% 22% Employees by Gender diversity region Employee Employee Females in Australia 74.8% engagement progress management New Zealand 24.2% score score roles 36 Southern Africa 0.7% (which measures (measuring staff South America 0.2% Male the positive perceptions about Female attitudes and organisational Other 0.1% emotions that performance) (including USA 64 contribute to and India) employee retention and productivity) (FY18: Male 65% Female 35%) 3% 4% 5% Health and safety 0.57 2.70 ZERO ZERO Fatalities Fines and prosecutions Lost Time Injury Total Recordable Frequency Rate Injury Frequency (LTIFR)/million Rate (TRIFR)/ hours worked million hours worked 33% 1,123 Reduction in the occurrence Employees who have participated of High Potential Incidents in Downer’s internal Mental Health 26.92% 17.43% from FY18 to FY19 First Aid training program 2 Downer EDI Limited Environment ZERO ZERO Prosecutions 0.45 Energy intensity (TJ/AUD$m) Significant 11 Fines environmental FY18: 4 fines FY18: 0.49 incidents 32.9 9,678 tCO2-e Carbon Intensity (Scope 1 and Scope 2) Annualised GHG emissions reduction (Scope 1, 2 tonnes CO2-e/AUD$m and defined Scope 3) FY18: 36.2 Governance Board of Directors – Gender diversity 300+ 43 Senior executives who Announcements made completed Downer’s to the ASX and NZX, Financial and with zero breaches of 3 Corporate Governance continuous disclosure Male Self-Assessment Female surveys in FY19 5 Sustainability Report 2019 3 About this report This Sustainability Report discloses Downer’s sustainability-related performance for the activities of businesses within the Downer Group (Downer EDI Limited), including Spotless and Hawkins unless otherwise stated, for the financial year ended 30 June 2019. Sustainability performance information Reporting in accordance with the GRI These selected sustainability indicators are: relating to Downer entities and joint Standards provides investors the ability to Lost Time Injury Frequency Rates and ventures has been included in the benchmark with comparable information § Total Recordable Injury Frequency Rates relevant sections of the report. relating to environmental, social and governance (ESG) performance. § Total direct (Scope 1) and indirect Changes to the reporting boundaries (Scope 2) GHG emissions or measurement methodologies Our approach is guided by the GRI’s § Total energy consumption and applied with reference to our previous principles for informing report content: production Sustainability Report are addressed in the materiality, completeness, sustainability relevant report sections. context and stakeholder inclusiveness. § Significant environmental incidents A key focus of this report is to § The total number and value of safety This report is to be read in conjunction demonstrate how we deliver sustainable and environmentally related fines or with Downer’s 2019 Annual Report for returns while managing risk and being successful prosecutions. information pertaining to the company’s responsible in how we operate. financial sustainability. As such, cross- For ease of reference, a GRI Standards references to Downer’s Annual Report We engage with our internal and external Content Index is located on pages 80-86 appear throughout this document. stakeholders to ensure we understand, and KPMG’s assurance statement is and report on, our sustainability risks and included on pages 78-79. Downer’s 2019 Sustainability Report has opportunities. This year, we undertook a also been produced as an interactive Downer is committed to reporting our comprehensive independent materiality online document, which can be found at sustainability performance annually and assessment to ensure our sustainability www.sustainability.downergroup.com/2019/ consistently improving our data and performance and reporting continues to information collection processes to ensure align with the priorities of our stakeholders. Our reporting approach better quality data and insights. This report has been prepared in Downer has engaged KPMG to provide accordance with the Global Reporting limited assurance over selected Initiative (GRI) Standards: Core option, sustainability indicators to assess whether ensuring it presents a full and balanced they have been prepared in accordance picture of Downer’s material topics and with Downer’s policies and procedures, related impacts, as well as how these and the GRI Standards for Defining Report impacts are managed. Content and Quality. 4 Downer EDI Limited About this report (continued) ESG sustainability ratings performance Downer proactively participates in investor surveys and uses these insights to inform our understanding and improve our sustainability performance. Rating Performance* Achieved Level 1 (the highest) for Governance – Environment – Social