SUSTAINABILITY REVIEW 2019

CLEANAWAY MANAGEMENT LIMITED ABN: 74 101 155 220 CONTENTS

1 Overview / FY2019 Snapshot 2 Footprint 2025 6

2 Business Review / Solid Waste Services 8 Industrial & Waste Services 10 Liquid Waste & Health Services 12

3 Sustainability / Bringing our mission to life 14 A better way for people 16 A better approach to safety 18 Better community & 20 customer partnerships Managing our assets to 22 minimise our impact Better greenhouse gas management 24 for a sustainable future

The Company’s 2019 Annual General Meeting will be held at 10am (Brisbane time) on Friday, 25 October 2019 at the Long Room, Customs House, 399 Queen Street, Brisbane, Queensland 4000. 2019 Corporate Governance Statement and Appendix 4G Disclosures are available on our website at https://www.cleanaway.com.au/about-us/for-investor/corporate-governance/

/ CLEANAWAY LIMITED We’re energised for our mission of making a sustainable future possible… for people, for the planet, and for our investors through sustainable performance.

In 2019, we began a new journey to bring all those elements together with a focus on People, Markets, and Assets, to deliver strong Financial returns and make a sustainable future possible.

2019 Sustainability Review / 1 we care... about results snap FY2019 shot

Statutory results Underlying results $2,283.1 million revenue ▲33.2% $2,283.1 million revenue ▲33.2% $2,109.1 million net revenue 1 ▲34.8% $2,109.1 million net revenue 1 ▲34.8% $433.7 million EBITDA ▲34.2% $461.6 million EBITDA ▲35.9% $217.6 million EBIT ▲45.7% $240.8 million EBIT ▲44.7% $123.1 million NPAT 2 ▲18.9% $139.9 million NPAT 2 ▲42.8% 3.55¢/share dividend ▲42.0% 3.55¢/share dividend ▲42.0% 6.0¢/share eps ▲7.1 % 6.9¢/share eps ▲30.2%

1 Net revenue is a non-IFRS measure and excludes levies. 2 Attributable to ordinary equity holders.

Financial highlights 3

Net Revenue ($m) EBITDA ($m) EPS (¢) Dividend (¢) $2,109m $462m $6.9¢ 3.55¢ s35% s 36% s 30% s42%

15 16 17 18 19 15 16 17 18 19 15 16 17 18 19 15 16 17 18 19

3 Underlying results.

2 / CLEANAWAY WASTE MANAGEMENT LIMITED Overview /

Operations at a glance

Cleanaway is ’s leading waste management, industrial and environmental services company. With our dedicated team, national network of specialised infrastructure assets, and one of the largest fleets of waste collection vehicles on Australian roads, we’re working towards Community Our Mission of making investments a sustainable future possible, for all Australians. We know that change starts at home – and that genuine engagement and working in partnership with the communities in which we operate is an important part Employees of our path for the future. 5,900+

$805,000+ Vehicles Invested in Australian communities 4,950+

800 Sites Education programs held nationally 300+

Prized infrastructure 27,780+ assets Students engaged in school-based education programs nationally 115+

2019 Sustainability Review / 3 we care... about results what we FY2019 recovered Each year we focus on recovering more resources from waste – returning valuable commodities to the value chain, the first step toward making a more sustainable future possible.

>380,000t >15,500t >25,000t Paper and Cardboard Plastic Steel and Aluminium

Closed Loop Oil E-waste

~6,250t >115ML E-waste Used oil Protecting our environment by keeping hazardous materials such as lead and Our lubricating and engine oil collection mercury out of the environment, we’re and recycling services close the loop also recovering valuable materials such in oil usage, helping to reduce Australia’s as copper, silver, gold and platinum. reliance on virgin refined oil. Our BluBox technology breaks down next generation e-waste such as LCD TVs and laptops, extracting harmful mercury and mercury vapour, before using an optical sorter to separate the e-waste into its recyclable components.

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Container Deposit Schemes Turning Landfill Gas into Renewable Energy

Containers collected since inception1 ~115M m3 2.24bn Landfill gas captured, generating Return and Earn, NSW ~135m kWh 760.8m of renewable energy, enough to power Containers for Change, QLD >27,400homes In FY2019, we were proud to continue our partnership with Return and Earn, and the We’re capturing the gas generated NSW Government as Network Operator, from the natural breakdown of running the collection and sorting services waste in our , turning it into out of our Eastern Creek Container Sorting electricity, then returning it to the Facility. We also commenced services grid, to power homes. This reduces supporting logistics and processing for our Greenhouse Gas emissions Containers for Change in QLD across and our reliance on non‑renewable Greater Brisbane, Hervey Bay and power sources such as coal. logistics across Cairns.

Safe and Sustainable Healthcare Managing Greenhouse Gas Emissions

Scope Scope 1 + 2

~1.1m ~820kt CO2-e Sharpsmart collectors washed Greenhouse gas emissions through Daniels robotic washlines Cleanaway’s resource recovery activities Reusable sharps containers make sure go to reducing greenhouse gas emissions; that only the waste inside is disposed both Cleanaway’s direct emissions, and of and destroyed, whilst our robotic emissions that would otherwise have washlines mean that the used container occurred throughout our communities. is hygienically cleaned, ready for reuse, We are continually looking at ways to reducing greenhouse gas emissions, support further emission reduction, from as well as plastic and cardboard waste. expanding the footprint of our recycling operations to fuel and energy efficiency.

1 Based on containers processed since inception of the schemes.

2019 Sustainability Review / 5 we care... about our footprint foot print Parking 2025 for

Four years ago we launched our Footprint 2025 strategy to make sure that we have the right infrastructure in place to sustainably manage the waste generated by Australians well into the future – with an ever-increasing focus on resource recovery.

Our network of prized infrastructure assets strategically located across Australia provide the right solution in the right location to increase resource recovery and support the needs of local communities. During FY2019, we’ve continued to Western Australia expand our network to include innovative • New material recycling facility treatment and processing capabilities • Two new transfer stations which ensure that as little residual material as possible is left to be disposed of.

6 / CLEANAWAY WASTE MANAGEMENT LIMITED we care... about our footprint Overview /

Queensland

• New transfer station • New paper recycling facility • Upgrade to oil recycling facility

New South Wales • New Container Deposit Scheme sorting line • New Western Sydney transfer station and resource recovery centre • Cleanaway ResourceCo refuse derived fuel facility • Base oil recycling facility • New contaminated soil treatment facility • Additional PFAS processing capacity

Victoria

• New transfer station • Doubling of electricity generation capacity at Regional Landfill • Planning permit for Melbourne South Australia Regional Landfill till 2046 • Upgraded material recycling facility • Three transfer stations and a resource recovery facility acquired • New organic waste treatment facility • Height rise extension approval for • New food waste de-packaging facility Inkerman landfill • Consolidated C&I/Municipal depot

2019 Sustainability Review / 7 we care... about our business

Solid Waste Services As Australia’s market leader for the collection and processing of solid waste and recyclables, we serve more than 140,000 commercial and industrial businesses, and over 95 municipal councils.

FY2019 FY2019 FY2018 V FY2018 Net revenue ($ million) 1,362.3 1,107.3 23.0% Net Revenue EBITDA ($ million) 352.8 285.7 23.5% $1,362.3m EBITDA margin (%) 25.9 25.8 +10bps p23.0% EBIT ($ million) 204.0 159.2 28.1% EBIT margin (%) 15.0 14.4 +60bps

Represents underlying results.

EBITDA We’re trusted to collect, sort and EBITDA increased by 23.5% to process household and business $352.8 million, and EBIT was up $352.8m waste, and our investment in material 28.1% to $204.0 million. Both profit p23.5% recovery facilities and transfer stations margins also increased over the year. across Australia means that we can 352.8 The introduction of China’s National sort and recover more recyclable Sword policy in early 2018 has had commodities. Anything which can’t a significant impact on the waste be recycled is securely disposed of in industry globally. Volatility in the our highly engineered landfills. And 285.7 commodities supply chain has led it doesn’t end there. We’re investing to increased sorting costs and 257.0 in additional network capacity to instability in commodity pricing. collect naturally produced landfill gas We are currently reassessing our 26.8 across our landfills, using it to generate customer pricing structures to 25.8 25.9 electricity which we return to the grid, better reflect the costs incurred reducing our reliance on fossil fuels. in the processing of recyclables. Over FY2019, Net Revenue increased We are firm in our belief that the by 23.0% to $1.36 billion. This growth market changes witnessed as a result was driven by a number of factors, of China’s National Sword will create 15.0 including increases in both volume opportunities for businesses like 14.4 14.4 and price, as well as the full ramp up ours. Through continued investment and operation of major contracts. in our Footprint 2025 Strategy, we These include the NSW Central Coast are growing our network of prized Municipal contract and the Brisbane infrastructure assets across the country City Council resource recovery and post 17 18 19 – allowing us to collect and sort more collections contract. The addition of the recyclables, producing higher quality EBITDA MARGIN Toxfree Solids business in North‑West commodity streams, and ultimately EBIT MARGIN Western Australia, the Northern supporting a sustainable on-shore EBITDA Territory and Northern Queensland circular economy. also contributed to this growth.

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During FY2019, Cleanaway was City of Sydney awarded a multi-year contract with the City of Sydney to provide Municipal Contract general waste, recycling, garden organics, hard waste, and electronic waste collections. The contract includes 26 new vehicles, all enabled with Cleanaway’s award‑winning Cleanaview technology. The Cleanaview platform collects data from onboard cameras to track collections and service events, as well as provide insights to reduce contamination, improve recycling and increase truck safety in the community. In June 2019, Cleanaway celebrated the opening of a new depot in Hillsdale, which will support the City of Sydney contract. Cleanaway is also working closely with the council to help residents improve landfill diversion and recycling rates through our education team.

2019 Sustainability Review / 9 we care... about our business

Industrial & Waste Services Cleanaway’s Industrial & Waste Services provides a range of specialised services to more than 2,000 customers in the Infrastructure and Resources markets, including drain cleaning, non-destructive digging, vacuum loading, high pressure cleaning, and pipeline maintenance.

FY2019 FY2019 FY2018 V FY2018

341.9 185.8 84.0% Net Revenue Net revenue ($ million) EBITDA ($ million) 46.6 18.9 146.6% $341.9m EBITDA margin (%) 13.6 10.2 +340bps p84.0% EBIT ($ million) 22.5 5.1 341.2% EBIT margin (%) 6.6 2.7 +390bps

Represents underlying results.

EBITDA $46.6m In FY2019, net revenue increased 84.0% to $341.9 million with both EBITDA p146.6% and EBIT growing 146.6% and 341.2% respectively. Profit margins also showed

46.6 strong growth over the year. This growth was in part driven by the acquisition of Toxfree, with the segment

13.6 generating modest organic growth after taking into consideration the completion of the major Toxfree Wheatstone contract in Western Australia that was completed in FY2018. Following the FY2018 Toxfree acquisition, this segment has been significantly 10.2 streamlined with a new organisational structure in place which is designed to 10.3 improve customer focus and the specialisation of technical abilities and assets.

6.6

18.9 18.2

2.7

2.4

17 18 19

EBITDA MARGIN EBIT MARGIN EBITDA

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Samantha Shaw, Head of Audit and Risk on site with Tammy O’Connor, King Kira Group owner and Cleanaway’s Aboriginal Contracts & Engagement Manager.

King Kira Group Pty Ltd is a 100% Kira Group owner, Tammy O’Connor, Aboriginal female owned business has also joined Cleanaway as our Strengthening providing environmental integrated Aboriginal Contracts & Engagement ties in Northern services. Their ethos is “our land” Manager. Tammy is a Traditional which guides their environmental Owner from the Pilbara region Australia through management to ensure it remains with family connection through sustainable for future generations. the Nyiyaparli and Palyku Aboriginal King Kira and PTK King Kira also endeavour to engage groups, and links to Kariyarra and local people, contractors and suppliers Ngarluma people through her to be part of their journey. Their Grandmother. King Kira is named for footprint extends throughout Western her daughters, Kingston and Shakira. Australia into the Pilbara Region where they continually build relationships with Tammy was born in Port Hedland and local people, suppliers and clients. raised in Marble Bar. Having grown up in the Pilbara region, Tammy has King Kira and PTK provide waste a wealth of knowledge and insight management and recycling services, about the local community and native primarily in the mining, oil and gas, title, providing education and guidance government, and infrastructure to achieve successful outcomes for industries. Some of their key services include solid waste, bulk liquid local communities. waste, landfill management, resource Tammy studied at Curtin University recovery, and scrap metal reclamation, and undertook a Diploma in Education along with Aboriginal professional before working in local community labour hire services. remote sites. We’re proud to welcome King Kira and Cleanaway have come Tammy to the team, and to continue together under a Joint Venture PTK to grow our partnership with King Kira Environmental Services (PTK). King through PTK Environmental Services.

2019 Sustainability Review / 11 we care... about our business

Liquid Waste & Health Services Cleanaway’s Liquid Waste & Health Services comprises four national, strategic business units, including: Liquid Waste Services, Technical & Environmental Services, Hydrocarbons, and Health Services

FY2019 FY2019 FY2018 V FY2018 Net revenue ($ million) 495.0 322.4 53.5% Net Revenue EBITDA ($ million) 86.9 54.2 60.3% $495.0m EBITDA margin (%) 17.6 16.8 +80bps p53.5% EBIT ($ million) 54.0 36.8 46.7% EBIT margin (%) 10.9 11.4 (50)bps

Represents underlying results.

EBITDA The segment generates revenue by production efficiencies following and earnings from the collection, recent plant upgrades and improved $86.9m treatment, processing, refining, oil price movement. p60.3% recycling and destruction of Demand for the processing of new hazardous and non-hazardous liquids, streams such as Hydrocarbons (used oil recycling), 86.9 PFAS and solvents is increasing as chemical waste, specialised package government authorities recognise and hazardous waste, and e-waste. the need for the safe disposal Services to the Health Services sector of these materials. include the safe treatment and The volumes of bulk hazardous and disposal of health-related waste, non-hazardous liquids decreased which includes sharps management, during the year. The Liquid 54.2 medical waste, pharmaceutical waste, Waste Services business has been healthcare hazardous waste, and 17.6 restructured and resized and we quarantine waste. remain confident that improved 40.7 16.8 Net revenue increased 53.5% to performance from this business $495.0 million with both EBITDA will be achieved. 15.7 and EBIT growing 60.3% and 46.7% respectively in FY2019. The EBITDA margin also increased during the year. 11.4 10.7 10.9 The Health Services and Technical & Environmental Services businesses performed well during the year 17 18 19 and continues to deliver improved EBITDA MARGIN results. The Hydrocarbons business EBIT MARGIN also performed well, mainly driven EBITDA

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In March 2019, Cleanaway completed Closing the loop on a strategic acquisition of the ASP sharps containers Group, a healthcare services and plastics manufacturing business in manufacturing Western Sydney, bringing together two of Australia’s market leading, through ASP Group but highly complementary, medical sharps waste businesses. Daniels Health leads the market for reusable sharps containers, whilst ASP leads the market in personal sharps containers, through products including FITPACK™ and FITTUBE™, as well as metal community disposal bins and vending machines. ASP Group manufactures high quality sharps containers onshore at St Marys in Western Sydney. This allows us to review the full supply chain of medical containers supplied to the Australian market and explore new ways to close the loop on plastic waste.

2019 Sustainability Review / 13 Making a sustainable future possible

Bringing our mission to life In FY2020 we will formalise the alignment from Our Mission, through our operations, to globally recognised Environmental, Social and Corporate Governance (ESG) standards. Our Mission is to make a sustainable future possible for all our stakeholders. This includes making a sustainable future possible for people and the planet supported by sustainable financial performance. Alignment to ESG standards supports our refreshed strategy, Our Cleanaway Way and is the next step in our sustainability journey.

Aligning with recognised standards To formalise our commitment, we will begin reporting against globally recognised ESG standards by the end of FY2020, including the United Nation’s Sustainable Development Goals (SDGs) and the Sustainability Accounting Standards Board (SASB) Standards.

14 / CLEANAWAY WASTE MANAGEMENT LIMITED Sustainability /

Bringing our

For us, it means building on strong foundations:

People Markets Assets Focusing on the safety and wellbeing Working in partnership with our Minimising our environmental impact of our people, our customers and the customers to improve service and help through the responsible management communities in which we operate; and them achieve their sustainability goals. of our assets as well as exploring a workplace which values diversity, and investing in new technologies. equality and inclusion.

Founda

People Markets Assets

Financials Earth

To deliver enduring results:

Financial Earth Managing risks and creating value for all our stakeholders By continuing to invest in our Footprint 2025, investing through a focus on sustainable financial performance in the infrastructure, technology and innovation to close to deliver financial returns for our investors, and the the loop and contribute to a viable circular economy strength to continue to invest in new infrastructure in Australia, we will help to change the landscape of and technologies to deliver on Our Mission. recycling and residual waste management in Australia.

2019 Sustainability Review / 15 Making a sustainable future possible peopleA better way for A better place to work We’re working hard to make a sustainable future possible for people – both for our employees and for the communities in which we work – through a focus on safety, wellbeing and equality.

Building strength • An increase of females in Innovate – Reconciliation management roles from 18% through diversity to 20% in 2019. Action Plan (RAP) Our workforce is made up of people 2018–2020 • An increase of female workforce from all walks of life. We know participation from 18% to 19% In FY2019, we launched our second that diversity of backgrounds, skills, in 2019. RAP, Innovate – continuing our and experience brings a range of commitment to embracing and We were also pleased to see female different perspectives which can encouraging reconciliation within promotions (as a percentage of all create a more robust business, better and across our business. We recognise promotions) increase from 40.2% able to embrace the challenges our the importance of respect for in 2018 to 47.4% in 2019: industry faces, and be open to the and engagement with Aboriginal new and unique opportunities that • 21.2% of all manager promotions and Torres Strait Islander peoples these challenges bring. Reflecting the were awarded to women (compared and their communities, and are communities in which we work also to 18.6% in 2018 and 12.2% committed to closing the gap. helps continue to strengthen our ties in 2017). and connection with our communities. This commitment includes a focus • 64.2% of all non-manager on education, employment and Balancing gender – attracting promotions were awarded to women community health and safety. and retaining key talent to lead (compared with 58.8% in 2018 and We know that progress in one area from the front 41.2% in 2017). helps further progress in other areas. We know that increased female Female representation in our Enterprise Improving education opportunities representation at senior levels drives Leadership Team (ELT) has also for Aboriginal and Torres Strait Islander increased female participation across increased, with females now making peoples helps to increase employment all levels of our business. So, in up 16% of the ELT, up from 14% rates – both within Cleanaway and FY2019, we continued our focus in 2018. across our industry. Our commitment on increasing female representation to training and partnerships, including at senior levels, with a particular In FY2020 we will continue to our Aboriginal and Torres Strait emphasis on promoting from within. improve how we attract and retain Islander Traineeship Programs provide high potential female employees in opportunities for education, learning Each year we submit an annual gender key roles and encourage women to and growth, which ultimately leads report to the Workplace Gender seek employment at all levels within to better employment outcomes. and Equality Agency (WGEA). Key Cleanaway through our new female highlights and improvements from the talent attraction campaign which In FY2020, to encourage greater defined period of April 2018 to March is currently under development. participation in available traineeship 2019 include: programs, both from Aboriginal and Torres Strait Islander communities

16 / CLEANAWAY WASTE MANAGEMENT LIMITED VALUES 2019 - 22 MARCH

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VALUESVALUES 2019 2019 - 22 - 22MARCH MARCH

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Home Safe Stronger Together Integrt We Make A Dfference We take responsibility for Building from a place of We do the right thing We are proud of what we do our personal safety, as well strength, we are focused on – no matter what. to make a sustainable future HomeHome Safe Safe StronStrongerger as thatInte of ourInteg team.rtgrt We are creatingWe We Msomethinga keMake stronger Holding ourselves to higher possible – for our employees, TogToethergether committed to Goal Zero, Athan DfferenceA the Dfference sum of our parts standards, we say whatOur our ‘new’ customers, Values our investors, – built by because everyone deserves each and every day. we mean, and we do the communities in which we to go Home Safe, every day. what we say. Our Peoplework, and the planet. We are a diverse team – with people A better place to work performing vastly different roles across the breadth of the country. We come from different backgrounds, different educational paths, and all have different employment histories. This is where Our Values play such an important role. First introduced in 2015, they articulate what we can expect from each other – essentially, they are how we behave. HomeHome Safe Safe StronStronger Togerg etherTogether IntegIntertgrt We MWeake M aAke Dfference A Dfference In late 2018, following the integration of Toxfree and Daniels Health, we set We takeWe takeresponsibility responsibility for for BuildingBuilding from froma place a place of of We doWe the do right the rightthing thing We areWe proud are proud of what of what we do we do about asking our team what should our personalour personal safety, safety, as well as well strength,strength, we are we focused are focused on on – no matter– no matter what. what. to maketo make a sustainable a sustainable future future make up Our ‘new’ Values to ensure as thatas ofthat our of team. our team. We are We are creatingcreating something something stronger stronger Holding Holding ourselves ourselves to higher to higher possible possible – for –our for employees, our employees, they represent who we are today. committedcommitted to Goal to GoalZero, Zero, than thanthe sum the ofsum our of parts our parts standards,standards, we say we what say what our customers,our customers, our investors, our investors, becausebecause everyone everyone deserves deserves each eachand everyand every day. day. we mean,we mean, and weand do we do the communitiesthe communities in which in which we we In early 2019, we introduced Our ‘new’ to goto Home go Home Safe, Safe, every every day. day. what what we say. we say. work,work, and theand planet. the planet. Values – as part of Our Cleanaway Way.

and from industry, we will showcase In line with this, Cleanaway a range of Aboriginal and Torres Strait envisages the full participation Islander peoples’ success stories to of Aboriginal and Torres Strait demonstrate the real and positive Islander peoples in our business difference that can be made to their and are committed to providing communities. These will range from a work environment that is culturally inspirational stories of individuals safe, sensitive and supportive within communities, to highlighting to all employees. Our second the opportunities available Reconciliation Action Plan outlines for businesses. our vision and our commitment to At Cleanaway, we endorse the vision Aboriginal and Torres Strait Islander of a nation which values Aboriginal peoples’ inclusion in our operations and Torres Strait Islander heritage, and partnerships, both now and cultures and peoples and recognises into the future. their unique position as the original Our Innovate RAP is available custodians of Australia. We take on our website. responsibility for ensuring our business reflects the values of inclusion and diversity throughout our workforce. We recognise the contributions that Aboriginal and Torres Strait Islander peoples have made, and continue to make, within our organisation and local communities.

2019 Sustainability Review / 17 Making a sustainable future possible A better approachsafety to At Cleanaway, we believe that everyone should be able to go Home Safe every day. As we continue to work toward Goal Zero, the safety of our people and the communities in which we work is at the heart of everything we do, and every decision we make.

We remain firm advocates for visible Leading the way to • Mandating HSE training completion safety leadership across our business. at all organisational levels to ensure We also believe that safety is a embed safety across our our drivers and operators are personal responsibility for every staff business licensed and authorised to complete member. Further to this, through TRIFR allows us to measure the their role safely. FY2019, we have also focused on the outcome and overall effectiveness quality of our lead indicators to ensure of the safety measures put in Managing material we are working proactively to ensure place across the year, producing the safety of our team. a quantitative result. safety risks Each year we perform a review It is through this combined top-down To help us continue to reduce TRIFR of critical health and safety risks and bottom-up approach that we over time as we work towards Goal and associated controls, to ensure believe we will reach Goal Zero by Zero, we have remained focused on the risks remain representative of choice not by chance. lead safety indicators – not only at our operations and reflect current management levels, but across our knowledge. This year’s review entire team. FY2019 Safety has considered activities of the Performance In FY2019 we have shifted our focus combined enterprise comprising from the quantity to the quality of our heritage Cleanaway, Toxfree and One of our key safety performance lead indicators by: Daniels Health. measures continues to be our Total • Improving visible safety leadership Recordable Injury Frequency Rate In FY2019 we focused on controls and understanding of our worksite (TRIFR), calculated based on the to reduce residual risk, including: safety processes, by ensuring number of recordable injuries for every • Developing Health & Safety work members of the leadership team million hours worked. plan to embed key controls. engage in safety conversations At the end of FY2019, Cleanaway’s with their teams through our • Focusing on plant and pedestrian TRIFR has continued to decline, down Safety Walks. interactions and traffic management at our sites. 8.1% from 6.2 for FY2018 to 5.7, • Ensuring our workplaces are an overall 78.6% reduction in TRIFR inspected and potential hazards • Standardisation of risk controls since FY2012. identified to proactively control as part of the integration activities. Whilst it’s encouraging to see a them before they can cause This has seen the adoption of continued reduction over time, an injury. controls from within Toxfree, into the Cleanaway Health & we firmly believe that any injury is • Verification of our corrective Safety Risk Control framework. avoidable, and we remain focused actions, ensuring timely closure on our journey toward Goal Zero. of actions from our activities that verify our safety processes and behaviours.

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TRIFR s5.7 78.6% (since FY2012) Safety is in our hands During the first half of FY2019 hand laceration injuries represented 23% of all recordable injuries in our TRIFR. Cleanaway selected a preferred national supplier for personal protective equipment and implemented an approved catalogue of items that included setting a ‘glove cut 3’ minimum standard for operational manual tasks. Through this new glove standard and 12 13 14 15 16 17 18 19 a campaign focused on ‘gloves on’, the frequency of recordable hand laceration injuries in the second half of FY2019 decreased by 40%.

Ongoing effectiveness of key controls • Commenced standardisation of for managing critical health and policies and management of high- safety risks are reviewed as part of risk activities. our significant incident management process and audit program.

Integrating safety to reach Goal Zero During FY2019, we commenced the integration of the Daniels Health and Toxfree, Health & Safety Management System with Cleanaway’s Health & Safety Management System. Integration is based on adopting the best systems and practises of Toxfree, Daniels Health and Cleanaway. Key highlights of the Health & Safety integration: • Aligning the resourcing of the Health & Safety function to the new Cleanaway Operating Model. • Transition of Toxfree and Daniels Health into the Comcare Scheme, from its state-based safety regulators. • Selection of MyOSH as the new enterprise Health & Safety platform, to enable our journey to Goal Zero through operational insight of our HSEQ data at all levels of the organisation.

2019 Sustainability Review / 19 Making a sustainable future possible communityBetter & customer partnerships In FY2019, we continued to engage with Australian $805,000+ communities to encourage better recycling Invested in Australian behaviours – at work, home and school. communities

800 Continuing to improve Customised online Education programs held our customer journey learning with Greenius nationally During FY2019, we continued to invest Greenius is Cleanaway’s custom-built in our people, systems and processes online learning system to help our to improve our customer experience customers reduce contamination and across all touchpoints – from the increase sustainability rates. Fully initial account set up and ensuring customisable modules teach users the success of the first collection or about the waste hierarchy, which service, through ongoing customer recycling services are available to them 27,780+ service and operational service delivery and how to put the right thing in the Students engaged in school- to timely and accurate invoicing. right bin. Targeted at national and based education programs nationally With a renewed focus on customer key accounts customers, as well as service metrics across the board, we’ve municipal councils, Greenius is a great seen performance improve over the tool to help our customers use our past year. Plans are in place to continue services better. these improvements into FY2020. In FY2019, we continued to Engaging online partner with our customers and communities for 50+ invest in new technologies and waste education Community information processes to help them achieve their sessions at various locations sustainability goals. Our journey For National Recycling Week, around the country continues as we work towards further we launched a back-to-basics recycling digitisation to deliver a step change campaign simplifying the commingled in our service performance and recycling bin to just five recyclable customer experience in FY2020. items. The ‘Simply5 It’ campaign made it easy to address contamination in household recycling bins. The downloadable resources, videos and tips from Cleanaway’s sustainability experts reached almost 500,000 residents, businesses and councils on Facebook and LinkedIn.

20 / CLEANAWAY WASTE MANAGEMENT LIMITED Sustainability / community & customer partnerships

Our new website – making it easier for customers Launched in mid-2019, our new website brings together the combined total waste management service offering of our integrated business, with a fresh, customer-led design approach. The user experience makes it easier for our customers to find and book services, transact with us through the My Account portal or find the best solutions for their industry.

2019 Sustainability Review / 21 Making a sustainable future possible Managingassets our to minimise our impact

As Australia’s leading waste management, industrial and environmental services company, we understand our responsibilities to all our stakeholders, including the community in which we operate, customers, regulators and shareholders. Australians trust us to safely and sustainably manage their waste – a responsibility we take seriously.

We are focused on providing strong environment. That is why we strive diesel fleet, whilst delivering improved environmental leadership and to go above and beyond compliance, environmental outcomes. Once the trial partnership across our operations to looking to continually improve the way has been completed, these vehicles will drive better environmental outcomes we operate our prized assets that set join our fleet as permanent fixtures, with – including regulatory performance, Cleanaway apart from other waste more electric vehicles planned for the strategic programs and stronger management companies. coming year. engagement with our stakeholders. With one of the largest fleets on We are also testing Diesel-Electric We operate within the regulatory Australian roads, the combustion hybrid technology and are preparing to framework of each state’s environment of diesel fuels remains one of the introduce our first hybrid vehicle into the pollution laws, which requires largest contributors to our Scope City of Sydney in FY2020. many of our prized assets to hold 1 greenhouse gas emissions, Company-wide standards require all environmental protection licences contributing approximately 25%. new heavy vehicles to comply with to operate. Over FY2019, we have further Euro 5 emission levels at a minimum We aim to manage all our operations expanded on a range of initiatives – and in FY2019, we have lifted this within the limits set by site licenses which aim to reduce the impact of our to meet Euro 6 emission levels where and the law, and we have appropriate fleet operations on the environment contractually required. systems in place, combined with – whilst maintaining the safety, We have also commenced reviewing regular monitoring and review, efficiency and reliability of our fleet. alternative fuels and assessing their to ensure that we do this. Our One such initiative is the introduction suitability across our fleet. Wherever environmental management system of our first Electric Vehicles. possible we are looking for fuel sources is externally certified to ISO14001 by which can drive a circular economy an international, accredited body. In such as compressed natural gas (CNG) addition, we run an internal ‘second Introducing our first and biodiesel. line of defence’ program which forms Electric Vehicles the basis to our approach to sound environmental governance. In FY2019, we were proud to introduce Continuing to enhance our first Electric Vehicles, delivering Whilst we comply with our legal zero tailpipe emissions. The vehicles Cleanaview obligations, Cleanaway recognises were part of an initial trial, run from our We have continued to enhance that there are still ways that the Perry Road Super Site in Dandenong and rollout Cleanaview across our collection, treatment and disposal Victoria, to ensure the vehicles can fleet, with more than 700 vehicles of waste that has the potential to meet the same service levels as our now running with the technology. interact with communities and the

22 / CLEANAWAY WASTE MANAGEMENT LIMITED Sustainability / assets to minimise our impact

Cleanaview provides improved visibility Our fleet Powered by and safety for our drivers and allows us sustainable energy to optimise our routes by maximising In May 2019 the first of our Electric capacity and minimising wasted Vehicles began a trial in Melbourne. kilometres. It even allows our drivers to see the waste they’re collecting via Ensuring that we can maintain service cameras fitted in the hoppers of our levels is a key focus, delivering a consistent service each day for the side lift vehicles - allowing for early households and businesses which identification of contamination or rely on us, as well as reducing our problematic waste, such as controlled/ tailpipe emissions. regulated waste or smoldering items. Significant noise reduction in the This provides for greater contamination vehicles also make early morning or reporting with images, which leads to late-night collections possible for some more effective education campaigns. waste streams in congested areas. Importantly, Cleanaview’s vastly Heavy vehicles 70% improved reporting capabilities allows Light vehicles 15% our municipal customers to provide Yellow vehicles 15% better service to their customers with near real-time data on collection status and service.

2019 Sustainability Review / 23 Making a sustainable future possible

Better greenhouse management for a gas sustainable future Cleanaway continues to take action on climate change by managing our greenhouse gas emissions. This is done through the responsible management of our landfill gas, increasing fuel and energy efficiency, and in helping our customers and the broader community manage their waste impacts.

Expanding the footprint of our • Improving the energy efficiency Scope 1 emissions. Emissions from the recycling assets and exploring the of our facilities. use of fuels to run our vehicle fleet many options to reduce our carbon • Expanding our recycling and contributed approximately 25% of our footprint underpins management resource recovery operations total Scope 1 emissions, whilst the of greenhouse gas emissions and our to support the circular economy. consumption of natural gas contributed commitment to making a sustainable • Educating our customers as well approximately 3%. future possible. Our current areas of as communities, schools and other Our ongoing focus in landfill gas focus include: businesses on better recycling management excellence, investment in • Harnessing naturally produced practices to help them realise the new prized assets supporting increased gas from our landfills, to generate potential of resource recovery. recycling and resource recovery renewable electricity or for use Cleanaway recognise and accept efforts, as well as improvements in by third parties as renewable fuel. there is still more work to be fuel and energy efficiency is core to • Introducing zero carbon electric done on reducing greenhouse gas our management of greenhouse gas vehicles into our fleet, and trialling emissions, and importantly helping emissions for a sustainable future. alternative fuel vehicles such as our community reduce greenhouse Cleanaway has a strong track record Diesel-Electric hybrids. gas emissions through sustainable of carbon-related disclosure, having • Producing lower-carbon fuels from management of waste. participated in the CDP (formerly the waste through our joint venture Our total greenhouse gas emissions Carbon Disclosure Program) carbon with ResourceCo, Australia’s first in FY19 were approximately 820kt reporting for more than 5 years. Our Process Engineered Fuel (PEF) plant reporting on climate related matters CO2-e, of which over 95% were Scope in Wetherill Park, NSW. 1 emissions with the balance will continue to evolve. • Ensuring our fleet is maintained being Scope 2 emissions from the in top condition, optimising fuel consumption of electricity. efficiency and reducing greenhouse The majority of our Scope 1 emissions gas emissions as well as other came from the natural breakdown tailpipe pollutants. of waste in our landfills, contributing approximately 72% of our total

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Waste Audits Generating renewable As part of our commitment to making – understanding a sustainable future possible, we are for sustainability energy from our landfills continuing to expand landfill gas Over the course of FY2019, we’ve As the most significant source of projects and collection infrastructure undertaken more than 130 waste audits for greenhouse gas emissions, our focus across the country. our customers – helping them understand on the sustainable management of what makes up their waste, and how to landfill gas is unrelenting. divert more from landfill. Our landfill gas extraction initiatives We partner with Officeworks, working go beyond legislative requirements toward zero waste to landfill, as part of to reduce the impact of landfills, whilst their Positive Difference Plan 2020. We at the same time seeing the recovery worked closely with them to learn as much of a valuable resource. This year we as possible about their waste profile, harnessed landfill gas to generate over which included store walk throughs, 135 million kWh of renewable power interviews with team members, and visual bin assessments to identify waste sources, which was fed back into the electricity disposal behaviours and opportunities for grid, reducing reliance on fossil fuels better waste management. for power generation. The next step was a deep dive into their waste. A team from Officeworks joined our Resource Recovery Specialist Manny Manatakis in Perth to sort through eight general waste bins. The team was surprised at the amount of easily recyclable waste being sent to landfill. By identifying those missed diversion opportunities, the team were able to workshop how they could change their behaviours to achieve their diversion targets. As a result of these initiatives, Officeworks’ recycling rates have increased from 76% in FY2018 to 82% in FY2019, and they continue to work towards a 90% recycling rate in FY2020.

2019 Sustainability Review / 25 “One of the most enjoyable things about my job is meeting the residents and their children… Seeing their cheery faces early in the morning would brighten up anyone’s day! I also love seeing all the kids waving during my runs – those are priceless experiences I look forward to each day.”

Sinead Nolan Side-lift Driver, Geelong VIC

26 / CLEANAWAY WASTE MANAGEMENT LIMITED Designed and produced by ArmstrongQ. ArmstrongQ.com.au www.cleanaway.com.au