directors’ statement To the Honourable Bryan Green, MHA, Minister for Energy and Resources, in compliance with requirements of the Government Business Enterprises Act 1995. In accordance with Section 55 of the Government Business Enterprises Act 1995, we hereby submit for your information and presentation to Parliament the report of the Hydro-Electric Corporation for the year ended 30 June 2011. The report has been prepared in accordance with the provisions of the Government Business Enterprises Act 1995. David Crean Chairman Hydro-Electric Corporation October 2011 Roy Adair CEO Hydro-Electric Corporation October 2011 Hydro-Electric Corporation ARBN 072 377 158 ABN 48 072 377 158 contents page 1 Our vision: Introduction 3 About this report 5 Australia’s leading clean About Hydro Tasmania 8 energy business, inspiring Achievements and challenges 2010-2011 10 Progress against 2010 commitments 11 pride and building value for Chairman’s review 12 our owners, our customers CEO’s report 15 and our people Statement of corporate intent 18 Independent assurance statement 21 Annual Report 2011 Tasmania Hydro Performance 25 Sustainability 27 Our values: Economic performance 30 Momentum 36 • We put people’s health Entura 38 and safety first Roaring 40s 41 Assets and resource use 43 • We always behave with Governance 49 The Board 52 honesty and integrity Executives 55 • We work together, People 57 respect each other and Employees 59 External stakeholders 66 value our diversity Environment 73 • We strive to deliver Ecosystems and heritage 75 Financial report 85 outstanding service Financial report 30 June 2011 87 • We are committed Auditor’s Independence Declaration 143 Independent Audit Report 144 to creating a Summaries, sustainable future glossary and index 147 • Our positive and IHA sustainability protocol 2006 scoring criteria 149 Sustainability performance determined approach summary 2010-2011 150 Generation statistical summary 155 ensures our success Financial statistical summary 156 Employee profile 157 Glossary 159 Energy measurements 160 Measuring water storage levels 160 Index 161 Feedback form 163 2 sustainability code For Hydro Tasmania, a sustainable future involves Hydro Tasmania the transparent and balanced application of Sustainability Code Our Sustainability Vision Our Sustainability Principles Hydro Tasmania’s vision is to be Hydro Tasmania Annual Report 2011 Tasmania Hydro External Stakeholders Tasmania’s world renowned Governance economic, environmental and social considerations renewable energy business. Un We endeavour to gain respect and derpinning our We govern the business with vision is our commitment to create a trust through active engagement processes that ensure integration and sustainable future. with the community and stakeholde implementation of our Sustainabi We are committed to sharing information,rs. For Hydro Tasmania, a sustainable future Code. We make ethical decisions lity building community capability and involves the transparent and balanced through the application of our Valu providing for multiple-use of our land application of economic, environ and Code of Ethics within a public es to business decisions and activities. and water assets. We encourage and social considerations to bus mental reporting framework. We comply with suppliers, customers, partners andour decisions and activities. Hydro Tasmaniainess relevant legislative requirements a industry peers to be sustainable. believes that these considerations enable other commitments. nd the business to address communit Ecosystems and Heritage stakeholder expectations and ens y and Assets and Resource Use ure We operate our business to provide long-term business success. We use resources efficiently and future generations with a cl maintain our energy system, inclu healthy environment. We minimiseean and our assets, for the long-term. We ensureding environmental impacts and protect new developments meet our heritage as we look towards the future. Hydro Tasmania believes that these Sustainability Code. Assets and resource use Economic Performance We ensure our financial pract first. We put people’s health and safety ices service. promote long-term prosperity and considerations enable the business We strive to deliver outstanding ty and integrity. We always behave with hones enhancement of the business. ersity. each other and value our div We work together, respect We keep abreast of demand for our approach ensures success. Our positive and determined ing a sustainable future. We are committed to creat products and services. We develop to address community and stakeholder We use resources efficiently and new products and services, as well as adapt and change our current ones, Roy Adair to ensure flexibility in the marketplace Chief Executive Officer expectations and ensure long-term maintain our energy system, and sustainability. Hydro Tasmania Employees Our Commitments We offer opportunities for employees business success. including assets, for the long term. Hydro Tasmania is committed to to grow and develop, ensuring the applying our Sustainability Principles capability of our people and encouraging to our business activities, decision- innovation, learning and research. making processes and performance We ensure a diverse and equitable We ensure new developments meet reporting. We externally benchmark workforce, and support and respect the our sustainability performance against protection of internationally proclaimed international best practice, and review our human rights. We are committed to a Our commitments our Sustainability Code. policy and program every three years. safe and healthy workplace. (This code was approved as at 1 August 2008) 01270 Hydro Tasmania is committed to applying 1 our Sustainability Principles to our business Economic performance activities, decision-making processes and performance reporting. We externally We ensure our financial practices External stakeholders benchmark our sustainability performance promote long-term prosperity and against international best practice, and enhancement of the business. We keep We endeavour to gain respect and trust review our policy and program every abreast of demand for our products and through active engagement with the three years. services. We develop new products and community and stakeholders. We are services, as well as adapt and change committed to sharing information, our current ones, to ensure flexibility in building community capability and Our Sustainability the marketplace and sustainability. providing for multiple use of our land and water assets. We encourage our suppliers, Principles Employees customers, partners and industry peers to be sustainable. We offer opportunities for employees Governance to grow and develop, ensuring the Ecosystems and heritage We govern the business with capability of our people and encouraging processes that ensure integration and innovation, learning and research. We operate our business to provide implementation of our Sustainability We ensure a diverse and equitable future generations with a clean and Code. We make ethical decisions through workforce, and support and respect the healthy environment. We minimise our the application of our values and Code of protection of internationally proclaimed environmental impacts and protect Ethics within a public reporting framework. human rights. We are committed to a heritage as we look towards the future. We comply with relevant legislative safe and healthy workplace. requirements and other commitments. Chief Executive Officer Hydro Tasmania introduction About this report 5 About Hydro Tasmania 8 Achievements and challenges 2010-2011 10 Achievements 10 Challenges 10 Progress against 2010 commitments 11 Chairman’s review 12 CEO’s report 15 Statement of corporate intent 18 Independent assurance statement 21 Hydro Tasmania Annual Report 2011 21 about this report 5 The Hydro Tasmania Annual Report 2011 integrates our performance in terms of financial and non-financial results. It is our fifth integrated report and our seventh to include sustainability performance. Hydro Tasmania has been reporting its environmental performance since 1995. This report covers the financial year from Different groups of stakeholders will find To determine business issues we used Hydro Tasmania Annual and Sustainability Report 2011 Tasmania Hydro 1 July 2010 to 30 June 2011. It complies different sections of this report of interest. data from our risk management system, with legislative requirements for annual Our stakeholder groups are listed on interviews with senior executives, reporting under the Government Business page 67. Our primary audience is the CEO reports to the Board, the supplier Enterprises Act 1995 (GBE Act) and our people of Tasmania where our operations survey and the 2010 employee survey. commitment to report our sustainability have the most significant economic, The Sustainability Working Group reviewed performance under our Sustainability social and environmental impact. the issues and used a frequency criterion Code. The report is structured on our to decide the issues to report upon. Sustainability Code principles. Reporting material issues We grouped like issues together and sorted them under Sustainability Code The information has been guided by the principles as in Table 1. Global Reporting Initiative (GRI) G3.1 We confirmed stakeholder interests sustainability reporting guidelines and through Media Monitor reports and an electric utility sector supplement, the on-line survey developed