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Sustainability Report Aurizon Holdings Limited ABN 14 146 335 622 ASX Market Announcements ASX Limited 20 Bridge Street Sydney NSW 2000 BY ELECTRONIC LODGEMENT 10 October 2019 Sustainability Report Please find attached Aurizon’s 2019 Sustainability Report for release to the market. Kind regards Dominic D Smith Company Secretary For personal use only T +61 7 3019 9000 | F +61 7 3019 0720 | [email protected] Level 8, 900 Ann St, Fortitude Valley QLD 4006 Australia | GPO Box 456 Brisbane QLD 4001 Australia 2019 SUSTAINABILITY REPORT Delivering for a sustainable future For personal use only No reliance on this document This document was prepared by Aurizon Holdings Limited (ACN 146 335 622) (referred to as “Aurizon”, which includes its related bodies corporate (including Aurizon Operations Limited). While Aurizon has endeavoured to ensure the accuracy of the information contained in this document at the date of publication, it may contain information that has not been independently verified. Aurizon makes no representation or warranty as to the accuracy, completeness or reliability of any of the information contained in this document. Aurizon owes you no duty, whether in contract or tort or under statute or otherwise, with respect to or in connection with this document, or any part thereof, including any implied representations or otherwise that may arise from this document. Any reliance is entirely at your own risk. Document is a summary only This document contains information in a summary form only and does not purport to be complete and is qualified in its entirety by, and should be read in conjunction with, all of the information that Aurizon files with the Australian Securities Exchange. Any information or opinions expressed in this document are subject to change without notice. Aurizon is not under any obligation to update or keep current the information contained within this document. Information contained in this document may have changed since its date of publication. No investment advice This document is not intended to be, and should not be considered to be, investment advice by Aurizon nor a recommendation to invest in Aurizon. The information provided in this document has been prepared for general informational purposes only without taking into account the recipient’s investment objectives, financial circumstances, taxation position or particular needs. Each recipient to whom this document is made available must make its own independent assessment of Aurizon after making such investigations and taking such advice as it deems necessary. If the recipient is in any doubts about any of the information contained in this document, the recipient should obtain independent professional advice. No offer of securities Nothing in this presentation should be construed as a recommendation of or an offer to sell or a solicitation of or subscription or invitation of an offer to buy or sell securities in Aurizon in any jurisdiction (including in the United States), nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. This document is not a prospectus and it has not been reviewed or authorised by any regulatory authority in any jurisdiction. This document does not constitute an advertisement, invitation or document that contains an invitation to the public in any jurisdiction to enter into or offer to enter into an agreement to acquire, dispose of, subscribe for or underwrite securities in Aurizon. Forward-looking statements This document may include forward-looking statements that are not historical facts. Forward-lookingFor personal use only statements are based on the current beliefs, assumptions, expectations, estimates and projections of Aurizon. These statements are not guarantees or predictions of future performance, and involve both known and unknown risks, uncertainties and other factors, many of which are beyond Aurizon’s control. As a result, actual results or developments may differ materially from those expressed in the forward-looking statements contained in this document. Aurizon is not under any obligation to update these forward-looking statements to reflect events or circumstances that arise after publication. Past performance is not an indication of future performance. CONTENTS About Aurizon 3 How we operate 8 Governance and risk 14 Safety 18 Future of coal 22 Environment 30 People 36 Community 40 For personal use only Tax at Aurizon 42 Delivering for a sustainable future 1 ABOUT AURIZON HOW WE OPERATE GOVERNANCE AND RISK SAFETY OUR FY2019 SUSTAINABILITY HIGHLIGHTS million 259 tonnes of commodities hauled 80% of our employees work across regional locations in Australia 21% of our workforce is female, up from 12.4% in 2012 5.6% of our workforce is Aboriginal or Torres Strait Islander, up from 2.5% in 2012 supported through our 54 Community charities Giving Fund For personal use only $1.2 spent with billion suppliers 2 AURIZON | 2019 SUSTAINABILITY REPORT FUTURE OF COAL ENVIRONMENT PEOPLE COMMUNITY TAX AT AURIZON ABOUT AURIZON Managing Director & CEO message Across the business, I have reinforced that The final part of the Intermodal divestment safety is our core value and as such, the was the proposed sale of our Acacia Ridge highest priority for everyone in our company. Terminal, located south of Brisbane, We will continue to invest in the safety and to Pacific National. While initially blocked capability of our people to build a stronger by the Australian Competition and safety and performance culture underpinned Consumer Commission (ACCC), in May by our values. 2019 the Federal Court handed down a judgement that cleared the way for the sale. Our goal to achieve ZEROHarm extends to However, in June 2019, the ACCC appealed the communities where we operate. Earlier against this decision. We will continue to this year, we launched a public rail safety operate the terminal in line with the current campaign — Don’t put your life on the line arrangements until this matter is finalised. — following an increase of illegal trespass on our rail corridor. While we recognise that In Aurizon, it’s important that we create everyone has their right to express their a business that is not only strong opinion, it should be done in an environment commercially and performs well for that is safe and legal. We wanted trespassers customers, but also plays a positive role to understand that near misses with in the regional communities where our pedestrians have a long and lasting impact people live and work, and where our trains on the mental health of our train drivers. travel each day. We remain focused on building a strong and In the past year, our employees have On behalf of Aurizon, I am pleased to share resilient business. This year, we continued supported their communities through our sixth Sustainability Report. to build on our core strengths of hauling grassroots sponsorship and volunteering bulk commodities and managing the Central opportunities, while at a Company level, As a company, we are proud of the leading Queensland Coal Network (CQCN). we continued supporting local charities role we have played in the transport sector through our Community Giving Fund. in being open and transparent in relation In May 2019, we announced a commercial Following extreme drought conditions to the social, environmental and economic agreement with our customers who use the in parts of Queensland and New South aspects of our business. We remain CQCN to transport their coal. This agreement Wales and the devastating floods in North committed to continuing our strong track provides greater commercial and operational Queensland, we made additional funding record in disclosing information about certainty for all users of the CQCN, and we available to support the long-term recovery how we operate and how we manage believe forms an important element in and rebuilding of impacted communities. our financial risks. the long-term success of the Queensland We are seeing some great outcomes from coal supply chain. The proposed customer In May this year, the Task Force on these projects. agreement is currently with the regulator Climate-related Financial Disclosures for formal approval. I was humbled to see the support and (TCFD) published their 2019 Status empathy our employees showed to each Report for the Financial Stability Board, We forecast strong demand from Asia and other and members of their communities which focuses on companies’ progress the Indian subcontinent to continue for during the 2019 floods in North Queensland. in disclosing information aligned with the Australia’s high-quality commodities. We see While dealing with the weather event on TCFD’s recommendations. With more than Aurizon having a critical role in supporting a personal level, our employees also 1,000 global companies reviewed as part a highly efficient and globally competitive continued to deliver innovative bulk haulage of the report, I was pleased that the way supply chain for Australian commodity services, using road and rail options for we report on managing climate-related exports, especially for coal. We are investing our customers while the damaged rail line risks was highlighted as an example of to support this demand by increasing our was being repaired. I was also pleased to recommended disclosure practice. rollingstock capacity in both New South see that despite challenging conditions, Wales and Central Queensland, and by In FY2019, our safety performance results safety and wellbeing remained a priority
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