Sustainability 07 COVER We are one of Australia’s largest public companies with our head office in Perth, Western Australia. In 1984 we listed on what is now the Australian Securities Exchange, having begun as a farmers’ cooperative in 1914. Our major operating business interests SustainSustainabilityability 07 are in home improvement products and building supplies; coal mining; insurance; industrial and safety products; chemicals and fertilisers; gas processing and distribution and power supply. Home Industrial & Chemicals & Other Coal Insurance Energy Improvement Safety Fertilisers Businesses BUNNINGS CURRAGH LUMLEY AUSTRALIA CSBP COREGAS GRESHAM (AUST/NZ) GENERAL PARTNERS BLACKWOODS INSURANCE (50%) PREMIER AUSTRALIAN WESFARMERS Members of the Wesfarmers (AUST) PROTECTOR Ultimate Challenge at sea off HOUSEWORKS GOLD LPG ALSAFE REAGENTS WESPINE BENGALLA Fremantle. LUMLEY (75%) INDUSTRIES (40%) BULLIVANTS KLEENHEAT GENERAL (50%) GAS Read about it on page 8. INSURANCE MULLINGS QUEENSLAND (NZ) FASTENERS NITRATES BUNNINGS ENERGY MOTION (50%) WAREHOUSE GENERATION WESFARMERS INDUSTRIES PROPERTY (ENGEN) FEDERATION TRUST INSURANCE (23%) NEW ZEALAND AIR LIQUIDE CONTENTS WA OAMPS BLACKWOODS (40%) (AUST/UK) PAYKELS Managing Director’s Welcome 1 NZ SAFETY CROMBIE PROTECTOR About This Report 2 LOCKWOOD SAFETY (NZ) PACKAGING HOUSE Sustainability Scorecard 4 KOUKIA (91%) Bunnings 12 Curragh 24 Premier Coal 32 Kleenheat Gas 44 Wesfarmers LPG 52 Industrial & Safety 60 CSBP 70 Insurance 82 Other Businesses 90 Independent Assurance Statement 94 Glossary and Feedback 96 AREAS COVERED 1 WELCOME This is the tenth time we’ve given an account of our performance across a range of issues relevant to our pursuit of a sustainable future. We have made very clear the priority we The Last 12 Months Looking Ahead allocate to this goal by adopting, as one of just Since we last reported there’s been an intense As ever, we must continue to improve. But four key strategies which guide our whole public and political focus on climate change that’s an expected and exciting challenge for approach to doing business, our commitment and this has been reflected internally, including motivated people in a company that is always to “ensure sustainability through responsible a detailed update to the Board at the Directors’ casting its eyes beyond the horizon. long-term management”. Seminar in May. My thanks to everyone at Wesfarmers for their I mention that because it underlines what Our participation again this year in the Carbon efforts over the past year. I have no doubt that I have said in these reports previously Disclosure Project provides a detailed account dedication will continue and I look forward to a about the indisputable linkage between of our approach to climate change issues and very productive 2007/2008. includes a breakdown of greenhouse gas operating in a sustainable way and We would very much like to know what you emissions for the Group. business success. think about our performance and its reporting We made a submission also to the Prime through this document so please get in touch Our reliance on good management might not Minister’s Task Group on Emissions Trading via the feedback form at the back or by sound terribly ‘exciting’ but it goes to the heart in which we advocated the development of making a comment on our website. of the challenge we face. When all’s said and a truly global scheme to link national and done, the outcomes achieved rely very much regional schemes. Our contribution to the on the decisions and actions we take – industry-led Coal21 Fund, aimed at developing whether it’s our Board authorising an technological answers to emissions from expansion or involvement in a new industry coal-fired power stations, has doubled to sector, the diligence of an operator at a a likely $30 million over the next 10 years. chemical plant or the initiatives Bunnings In a new initiative, we commissioned a Richard Goyder pursues with respect to water and climate Group-wide assessment of greenhouse risks Managing Director change. There’s just no escaping our personal and opportunities from a leading external and collective responsibilities. consultant. This report will be considered in To that end, two of our four key values – coming months and will provide a basis for future action. integrity and accountability – have great relevance to the way we manage these issues. Bunnings took a big step forward on Without integrity there is nothing else and the sustainability during the year with a major concept of accountability goes to the very upgrade to its water-focused strategies and heart of the Wesfarmers’ business model. the adoption of a goal to achieve carbon The people working in the very diverse set neutrality by 2015 or earlier. of businesses we own are given are a lot of Regrettably, we have not done well autonomy but with that goes a high degree enough on safety. While some businesses of responsibility. improved, for the second successive year the Group-wide performance deteriorated. This applies as much to the way people The accountability and responsibility to which work in sustainability-related areas as it I referred earlier is never more important than does to more directly financially-focused in the context of safe workplaces. While I don’t endeavours. We rely on them to do their doubt for a moment the level of commitment jobs in an efficient and dedicated way and of all our employees there simply has to be to contribute to the data which enables us better implementation of our comprehensive to produce this report. safety systems. 2 ABOUT THIS REPORT This section provides an outline of what’s covered in our 2007 report and how we’ve gone about putting it together. Timing Safety data Report preparation Data collection and report drafting is the Coverage is for the financial year ended Readers will notice on the safety performance responsibility of business unit environmental, 30 June 2007. In a few cases, where there graphs a reference to statistics being for the safety and community relations representatives have been developments subsequent year to 30 June but “as at 30 September who are part of a working group convened by to the end of the reporting period, but prior 2007”. This is because we adjust the numbers to the printing deadline, we have included to take account of workers compensation our Corporate Office. Drafts were reviewed by this information to make the report more claims lodged, or lost time that has been the Corporate Office prior to detailed time relevant. reported, up to 30 September relating to discussions with the contributing authors. injuries sustained in the financial year under This process ensures that ultimate ownership What we cover review, thus allowing for delayed impacts. of the report lies with the business units. All wholly-owned and operationally-managed It can mean that the numbers reported for We have changed the name of the report businesses as at 30 June 2007 are included. a particular year have to be changed in this year to Sustainability 07 from Social The Insurance division reports less extensively subsequent reports. Responsibility Report, the title for the past three years. This document has evolved than the other major contributing business The basis for calculating our main safety constantly since first being published in 1999 units because of the nature of its operations. performance indicator – the Lost Time Injury and the 2007 title reflects our continuing move Recent acquisitions in the insurance sector, Frequency Rate (LTIFR) – is outlined in the towards the embrace of a holistic view of the notably OAMPS and Crombie Lockwood, are Glossary on page 96. concept of sustainability. included to the extent possible given data LTIFR numbers now include contractors availability but coverage will increase as their unless otherwise specified in the reports Case studies integration proceeds. The Coregas industrial of the individual businesses. Where it is Each of the contributions from the fully- and medical gas operations, which were possible to calculate an LTIFR for contractors reporting business units includes a case acquired in February 2007, are mentioned only – that is, where there is regular engagement study highlighting a particular aspect of their briefly but we intend to significantly expand and hours worked are available – the business year’s experience with respect to the coverage of this Energy division business is required to include this information. environment, safety or community interaction, in the future. Energy Generation is covered as does this year the Energy Generation in an abridged format given its relative Greenhouse gas emissions report. In addition this year we have included materiality within the whole Group, as is the Greenhouse gas emissions information two extra case studies which report on the 40 per cent-owned Air Liquide WA, which contained in this report is generally based on involvement of Wesfarmers Limited in we manage. calculations done in accordance with the remediation of a contaminated site and one Australian Greenhouse Office (AGO) Factors of the new community partnerships into which We report in a Case Study and in the and Methods Workbook December 2006 the parent company entered in 2006/2007. Sustainability Scorecard section on progress version. Readers should note that some of the in remediation of site contamination arising AGO’s emissions factors have changed from Independent Assurance from the activities of our Sotico subsidiary. time to time and, accordingly, year-to-year The report’s accuracy and completeness There is coverage also of work being done to changes in emissions data may in part be due is critically important and every effort is address contamination linked to the operations to this rather than a change in the performance made to ensure that all statements are of our former road transport business. of a business unit in relation to greenhouse gas properly authenticated.