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Fy-2014-Sustainability-Report.Pdf AURIZON BEYOND 2020 ANNUAL REPORT 2013–14 SUSTAINABILITY REPORT 2014 Sustainability represents resilience over time – a sustainable business is one which has long-term focus and a balanced approach to decision-making which takes into account economic, social and environmental considerations. Contents Managing Director & CEO Message ........................1 Customer Partnerships .............................................. 30 Vice President Sustainability Message ..................2 Community Engagement ......................................... 33 Sustainability at Aurizon .............................................3 Organisational Capability ........................................ 36 Aurizon’s Sustainability Priorities ...........................5 Regulatory Environment .......................................... 39 Governance ........................................................................9 Glossary ............................................................................ 42 Safety ................................................................................ 12 Datasheet – Our Employment Profile .................. 43 Business Model ............................................................. 15 Appendix – Future of Coal Future of Coal ................................................................. 17 Methodology and Assumptions ............................ 45 Operational Efficiency ................................................ 23 Global Reporting Initiative Index Table ...................................................................... 46 Environmental Management ................................. 26 1 AURIZON BEYOND 2020 Managing Director & CEO Message Aurizon is here for the long It is with pleasure that I introduce our FY2014 We want to access the best talent, drive Sustainability Report (Report), Aurizon’s first. the best business outcomes, and nurture a term – we are building Aurizon, and the customers and communities balanced organisational culture and capability. a sustainable business we serve, share a long history of stability, growth While recent initiatives and goals illustrate and resilience. It is from this perspective that an endeavour to become a more sustainable delivering lasting value for we now focus on sustainability as part of our enterprise, we now wish to apply a holistic our shareholders, customers, transformation to becoming a world-class approach to sustainability. In order to provide infrastructure and logistics company. this enterprise-wide focus, I appointed the employees and communities. In the context of sustainability, world-class new role of Vice President Sustainability. performance is associated with a strong The creation of this role underlines the and enduring social licence to operate and importance of sustainability to Aurizon as we a business model grounded in economic, strive to ensure that our Company is taking environmental and social principles. the safest, most efficient and least resource- intensive approach to the services we provide. Since becoming a publicly-listed company in 2010, Aurizon has been committed to The title of this Report is Aurizon Beyond delivering key commercial, operational and 2020, which is indicative of the definition safety improvements as we pursue excellence of sustainability at Aurizon. All employees in every dimension of the business. This focus at Aurizon are encouraged to set up the has been rewarded with improved financial Company for the long term through the twin and operational performance, the creation of objectives of transforming the existing business significant value for our shareholders, and a to world-class standard and positioning the much safer organisation for our employees, Company for continued growth. We seek our customers and the communities in which to achieve these economic objectives while we operate. positively contributing to the communities and environments in which we operate. One of the greatest changes at Aurizon has been cultural – the sense of organisational We recognise that our sustainability program identity and purpose that has developed will mature as our Company evolves. As this since becoming a publicly-listed company. occurs, we will update our stakeholders by We have a sharper customer focus; we better reporting annually on our sustainability understand our role in the broader economic program and engaging them in what they and social fabric of the community; and values believe is important to our continued success. such as safety, integrity and leadership drive Having served our customers for 150 years, our everyday behaviour. we are committed to ensuring the sustainability We have set, for example, five-year aspirational of Aurizon for generations to come. targets in our diversity programs to have a workforce consisting of 30% women. Lance Hockridge AURIZON SUSTAINABILITY REPORT 2014 2 Vice President Sustainability Message Sustainability represents I am honoured to have been appointed to But we are committed to doing more. the new role of Vice President Sustainability A pillar of the focus on sustainability at resilience over time – a and to have compiled this inaugural Aurizon Aurizon is this Report. The Report has sustainable business is one Sustainability Report. been prepared in accordance with the In contrast to sustainability roles in other core requirements of the Global Reporting which has long-term focus organisations, the Aurizon Vice President Initiative’s G4 Sustainability Reporting and a balanced approach Sustainability position exists within our Guidelines. As such, we undertook a commercial division and has an enterprise- materiality assessment that identified nine to decision-making which wide focus. This was a conscious decision to priority areas which we use as the framework drive consideration of sustainability within key for this inaugural Report. takes into account economic, investment decisions. Coal transportation underpins 61% of Aurizon social and environmental As investors, stock exchanges and our customers infrastructure access and haulage revenues, increase their analysis of sustainability made up of 38% from metallurgical coal considerations. information, we see this role as being a (steel producing) and 23% from thermal coal market-facing position. This is also recognition (energy producing). One of the priority areas of the Aurizon commitment not only to the for Aurizon is therefore the future of coal, sustainability of our Company, but also to or more specifically the long-term viability working closely with our customers to address of Australian seaborne thermal coal. an industry-wide focus on sustainability. Aurizon, like many of its customers, Since Aurizon was publicly listed, it has been acknowledges the scientific consensus in on a transformation journey which has sought relation to human-induced climate change and to move towards excellence in our operational, the need for multi-lateral effort to address it. commercial and support functions. From FY2011 Aurizon also understands the global demand to FY2014, this transformation has yielded a for seaborne thermal coal and the unique role reduction of over 90% in our Lost Time Injury that Australia, as an established source of high Frequency Rate (LTIFR), 120 million tonnes quality, lower emission thermal coal, can play per annum (mtpa) of long-term customer in addressing this need. It is for this reason, contract renewals, a 10.3 percentage point (ppt) along with efficiency improvements being made reduction in Operating Ratio and a doubling of to further enhance the cost curve position of Return on Invested Capital to 8.8%. Australian coal, that Aurizon is confident of its Aurizon’s transformation has been underpinned thermal coal-related investments. by, among other things, significant advances in This Report is a key milestone for Aurizon. operational areas. These advances have been It represents a consolidation of existing framed by our Integrated Operating Plan (IOP), activities within the Company and the which aims to do more with less – rationalising beginning of our sustainability conversation. the Aurizon fleet, reducing energy consumption, In our next Report we will expand this increasing productivity and coordinating our conversation by reporting against investment in technology. sustainability targets corresponding to Regenerative braking technology and driver key areas of ongoing performance and advice systems are two recent examples of stakeholder interest. We also aim to use this technology advancements put into action inaugural Report to gather feedback to inform through the IOP which are also reducing the the design and delivery of future sustainability environmental impact of our business. These related initiatives. two programs alone are respectively helping us To that end, I welcome your feedback and save 16,000,000 kilowatt hours of electricity invite you to send your comments on the and 1,000,000 litres of diesel per year, resulting Report to: [email protected]. in a combined reduction in carbon dioxide (CO ) emissions of over 15,800 tonnes per year. 2 George Lippiatt 3 AURIZON BEYOND 2020 ORGANISATIONAL CAPABILITY PAGE 36 Sustainability Building a capable and engaged workforce at Aurizon Our voluntary employee FY2014 Highlights turnover decreased by 23.5% ENVIRONMENTAL MANAGEMENT PAGE 26 OPERATIONAL COMMUNITY EFFICIENCY Reducing our footprint SAFETY ENGAGEMENT PAGE 23 PAGE 12 PAGE 33 We had a Doing more with less World-class performance An ongoing conversation
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