8 November 2004

SOCIAL RESPONSIBILITY REPORT AND 2005 EARTHWATCH FELLOWS

Wesfarmers today released its Social Responsibility Report, the seventh such document published annually by the company in response to widespread increased interest in issues such as environmental responsibility, workplace safety and community engagement.

Managing Director Michael Chaney said the 2004 report for the first time aggregated data for the group as a whole in a number of areas and addressed some of the criteria used by the Global Reporting Initiative to benchmark sustainability reporting.

“We will continue to provide as much information as we can from our very diverse range of autonomously-operating businesses,” he said.

“A good corporate reputation is of immense value and reporting voluntarily and publicly on these issues is an important part of enhancing our standing in the community.”

The report is available electronically at www.wesfarmers.com.au or by contacting the company on (61 8) 9327 4251.

Wesfarmers today also announced its 2005 Earthwatch Fellows.

Mr Chaney said Wesfarmers had worked with the internationally-respected Earthwatch organisation for nine years to provide employees with opportunities to improve their understanding of environmental issues by working on projects in Australia and other countries.

The 2005 Fellows, and the business divisions in which they work, are:

Kim Buteux (Bunnings), Scott Fraser (Industrial and Safety), Kris Goodman (Industrial and Safety), Eli Knudsen (CSBP), Joan Macdonald (Energy), Gerald McKenna (Energy), David Smalley (Bunnings), Stephen Walter (Insurance).

For further information contact: Keith Kessell, General Manager, Public Affairs (61 8) 9327 4281 0419 949 082

Social Responsibility Report 2004 contents areas covered

MANAGING DIRECTOR’S REVIEW 1 BUSINESS MANAGEMENT ABOUT THIS REPORT 2 ECONOMIC PROFILE 4 SOCIAL PROFILE 4 ENVIRONMENTAL ENVIRONMENTAL PROFILE 6 BUNNINGS 8 CURRAGH 18 SAFETY AND HEALTH PREMIER COAL 26 KLEENHEAT GAS 38 WESFARMERS LPG 46 COMMUNITY INDUSTRIAL & SAFETY 54 CSBP 62 INSURANCE 74 OTHER BUSINESSES 78 VERIFICATION STATEMENT 80 GLOSSARY AND FEEDBACK 81

www.wesfarmers.com.au

Cover: Bunnings’ reusable shopping bags, part of its campaign to reduce use of plastic bags. (See pages 6, 8 and 13).

i SOCIAL RESPONSIBILITY REPORT 2004 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY

We are proud also of the recognition of the always be business unit-focused. There work by our employees at the Premier coal are real issues for a company such as ours mine in Western Australia. During the year, in doing otherwise, in view of the very Premier won the mining section of the extensive sector and geographical national Banksia Awards for sustainable diversity of our operations. development leadership. For example, stakeholder engagement is On the safety side, three of our businesses highly relevant and readily reportable for – Kleenheat Gas, CSBP, and Wesfarmers our coal mines at Collie in Western LPG – achieved the group’s annual target of Australia and Blackwater in Queensland reducing accident rates by 50 percent. All but difficult to address and measure for our employees know the importance we businesses like Bunnings and Blackwoods place on working safely and while a lot which have outlets in hundreds of remains to be done there have been very different communities throughout significant improvements over recent years. Australia and New Zealand. Similarly, we have a group-wide safety REPORTING FORMAT target but setting of other group goals I mentioned earlier that this report may be less meaningful given the very contains some new features. different nature of our separate businesses. We have added a section at the front which Some of our business units are also not yet covers key aspects of the whole group across at a point where they are able to measure a range of issues. For the first time, available accurately a number of indicators, In 2004 Wesfarmers celebrates two data relevant to environmental, community although improvements were made this historical milestones – the 90th year since or social impacts have been aggregated. And year with respect to reporting electricity its foundation as a Western Australian we’ve included information about economic use. A requirement for more specific farmers’ cooperative and the 20th year of impacts as well as aspects of the company’s individual business unit targets may be a life as one of the most successful companies approach to corporate governance. We hope better way to go. listed on the Australian Stock Exchange. that these changes will help readers who Whether you are reading this report in hard Wesfarmers is a good example of a wish to assess the operations of the copy form or accessing it via our website, I sustainable corporation. Sustainability, in company in a wider context. hope it will improve your understanding of the business context, requires a company to The name of the publication has been how we approach many of the issues that deliver good returns to its owners and to changed to reflect developments since are part of the social responsibility agenda conduct itself in other ways that help 1998 when it focused entirely on of progressive companies in Australian and contribute to its longevity. These include environment, health and safety issues. across the world. As always, we welcome treating employees with fairness and These remain core corporate obligations but your comments either by way of the reply respect, acting ethically and demonstrating they need to be seen as part of a broader paid form in the back of the report or a willingness to engage with the assessment of a company’s overall electronically via our website. community beyond the primary performance with respect to social contribution of job and wealth creation. responsibility and sustainability. One of the ways in which a company can These initiatives, combined with show it takes these issues to heart is to refinements in the business unit texts such Michael Chaney report publicly on performance in areas as clearly indicating success or failure in Managing Director other than in respect of its legal obligations meeting priority targets and relating to disclose financial outcomes. This is the greenhouse emissions and energy use to seventh such report we’ve produced and it units of production or a financial indicator, incorporates some important new features, are part of the ongoing improvement of our as I discuss below. reporting process. Before that, I want to thank all our We will continue to look at how the way employees for their dedication and we report might relate to the Global constant efforts to improve performance in Reporting Initiative (GRI), an evolving everything they do. Much has been international benchmark in this area. In the achieved again this year and a couple of past year we sought advice from two aspects deserve special mention. external consultants about this and the The first is the decision by Bunnings to changes to which I have referred introduce a levy on plastic bags. incorporate some of their suggestions. Everyone agrees that disposal of these Where we will end up with respect to the bags is a real issue for the environment. GRI or similar reporting standards is not Bunnings has done something about the clear given that, consistent with our problem in a very practical operating structure, this report will demonstration of social responsibility.

SOCIAL RESPONSIBILITY REPORT 2004 1 ABOUT staff reductions that occurred as part of reported for a particular year have to be THIS REPORT its pre-sale restructuring. The sale of changed in subsequent reports. Sotico’s remaining operational assets was The basis for calculating our main safety TIMING completed in August 2004. This report performance indicator – the Lost Time This report covers the financial year ended does, however, include and will continue Injury Frequency Rate (LTIFR) – is outlined 30 June 2004. In a few cases, where there to include information on remediation of in the Glossary on the inside back cover. have been developments subsequent to contamination for which we retain the end of the reporting period, but prior responsibility. LTIFR numbers now include contractors to the printing deadline, we have included unless otherwise specified in the reports of The report also contains information on the the individual businesses. Where it is this information to make the report more 40 per cent-owned Air Liquide Western time relevant. possible to calculate an LTIFR for Australia (which we manage) and the contractors – that is, where there is regular wholly-owned StateWest Power. Brief REPORT BOUNDARIES engagement and hours worked are reference is made to other businesses with available – the business is required to The report this year includes for the first which we are associated – the Australian include this information. time our new Insurance division, formed in Railroad Group, Bengalla coal mine, October 2003 by combining Wesfarmers Wespine plantation softwood sawmill and GREENHOUSE GAS EMISSIONS Federation Insurance with the acquired the Queensland Nitrates ammonium nitrate Australian and New Zealand operations of plant. As we do not directly manage these Greenhouse gas emissions information Lumley Insurance. Given the nature of its operations we do not attempt to report on contained in this report is generally based activities, the business is reporting in a them. In all cases we provide links to on calculations done in accordance with less extensive way than the other major websites for readers wishing to find out the Australian Greenhouse office (AGO) contributors to this publication. All other more about their activities. Factors and Methods Workbook version 3 businesses wholly-owned as at 30 June (March 2003). Where there has been a 2004 are covered, with the exception of SAFETY PERFORMANCE DATA material departure from the AGO methods, the forest products business, Sotico. We or where a source of emissions has been Readers will notice on the safety excluded, we have noted it and explained are not able to report on the operations of performance graphs, at the start of each this business in 2003/2004 because of the reason. We have also broken down our business unit section, a reference to greenhouse emissions into “direct” and statistics being for the year to 30 June “indirect” emissions in accordance with the but “as at 30 September 2004”. This is AGO methodology. Readers should note because we adjust the numbers to take that some of the AGO’s emissions factors < account of workers compensation claims have changed from time to time and, lodged, or lost time that has been accordingly, year-to-year changes in A wildlife visitor at the reported, up to 30 September relating to emissions data may in part be due to this injuries sustained in the financial year rather than a change in the performance of Curragh mine, under review, thus allowing for delayed Blackwater, Queensland. a business unit. Further information is impacts. It can mean that the numbers available at www.greenhouse.gov.au.

2 SOCIAL RESPONSIBILITY REPORT 2004 REPORT PREPARATION comparisons. Not all of the categories Data collection and report drafting is the appear in all of the reports. This means responsibility of business unit either that the heading is simply not environmental and safety representatives applicable to a specific operation or that a who are part of a Working Group convened business is unable to supply the necessary by the Corporate Office. Drafts are reviewed data. Gaps are thus identified and the by the Corporate Office prior to detailed businesses concerned need to consider discussions with the contributing authors. whether these can be closed. This process ensures that ultimate We have amended slightly the reporting “ownership” of the report lies with the style in the Overview section of each business units. business unit by identifying this year the main environmental or health and safety VERIFICATION issues on which the business focused The report’s accuracy and completeness is attention during the reporting period. critically important and every effort is made to ensure that all statements can be COMPLETENESS properly authenticated. We do not claim that this report provides After the discussions referred to above are 100 per cent coverage of our safety, complete and a final draft agreed, the environmental and community relations business unit representatives are required performance. There are gaps in our to compile detailed checklists linking report knowledge which will be reduced as our Wesfarmers and the content to documented source material or systems improve, particularly with respect Earthwatch Institute employee sign off. to newly-acquired or merged businesses. formed a partnership in This document is a best endeavours Representatives from our Corporate attempt to report openly and honestly 1997 to provide Solicitors Office and Group Risk based on our current state of knowledge. opportunities for Management department then conduct employees to participate sample verification checks through site GLOSSARY in field research projects visits and desktop audits. They later prepare Within each separate report we aim to and to reinforce our reports for senior management. eliminate as much jargon and technical commitment to The internally-verified reports, signed off by terminology as possible and to spell out the environmental care and the authors and senior management, names of organisations when they are first sustainable development. including the divisional managing director, mentioned. We have used current names of One of this year’s are provided to independent assessors from government departments and other participants was Samara the Snowy Mountains Engineering regulators even though their designations Dequen from Wesfarmers Corporation (SMEC). SMEC was engaged in may have been different during the 2000 to conduct the external verification reporting period. A general glossary can be Energy who worked with process and to prepare a detailed report to found on the inside back cover. scientists studying koala business unit and Wesfarmers Limited ecology on St Bee’s Island, management. A five-year plan prepared by WEBSITE Queensland. SMEC in 2000/2001 was adopted and forms The full report is available on our website the basis of our commitment to the at www.wesfarmers.com.au. Additional hard > ongoing improvement of this publication. copies can be obtained from the Public SMEC’s findings on this report are Affairs department on (61 8) 9327 4251. published on page 80. FEEDBACK AUDIT COMMITTEE Please help us improve the report by Board oversight of this report is delegated sending us your comments on the form on to the Audit Committee. The committee the inside back cover. discusses the report at a special meeting and gives final approval before publication.

FORMAT Again this year we have used a format suggested by SMEC which aims to increase the transparency of the document by requiring businesses to report under standardised headings. Occasionally items may not fit entirely logically under these classifications, but we have continued with the layout because we believe it enables readers to more easily make cross-business

SOCIAL RESPONSIBILITY REPORT 2004 3 GETTING IT TOGETHER… OUR GROUP AT A GLANCE Jones World Index in terms of corporate We have a Code of Conduct and Ethics Economic Profile sustainability after assessment against that covers employee behaviour and One of Australia’s largest public companies, economic, environmental and social criteria. while business units may adopt standards we have been listed on the Australian Stock that best match their activities they Exchange since 1984 after beginning life as must embody the principles laid down in a farmers’ cooperative in Western Australia the group Code, which is available on in 1914. We are a very diversified our website. organisation with interests in home and garden improvement products and building SAFETY supplies; energy – including coal mining, Workplace safety is one of our highest gas processing and distribution and power Social Profile priorities. We believe we have an obligation supply; insurance; chemicals and fertilisers to do all we can to ensure the safe return manufacture; industrial and safety products OUR PEOPLE from their job of everyone who works for distribution; rail transport; and plantation A company’s standing in the communities our company. Part of the remuneration of forest products. in which it operates is affected by many our managing directors and some of those In the year to 30 June 2004 our company things, among them how it treats who report to them is linked to the recorded a net profit of $873 million employees. We are a major employer with achievement of safety targets. (including $304 million from the sale of a more than 90 per cent of our workforce We have a group target of reducing business unit) and at the end of the located in Australia and the balance in New accident rates by 50 per cent each year reporting period we had a market value of Zealand (see Figure 3, page 6).This year we towards a goal of zero. The measure we $11 billion. Other significant economic paid out $866 million in salaries, wages apply is the Lost Time Injury Frequency indicators are summarised in Figure 1, below. and other benefits. Rate (LTIFR) which is explained in the At the end of June 2004, we employed just We recognise the right of those we employ Glossary section. In the year on which we over 28,000 people on a permanent or to negotiate individually or collectively are reporting, three of our businesses casual basis, including almost 2,500 in New with or without the involvement of third achieved this target (see Figure 4, page 6). Zealand. A liquefied petroleum gas import parties. While we do not keep records of For the group as a whole the LTIFR was terminal and distribution facility in trade union membership we estimate that 10.5 as at 31 August 2004. There were no Bangladesh, operated by a joint venture in 36 per cent of our people are covered by fatalities during the year. We encourage which we are the majority partner, employs some form of collective agreement. our business units to report other safety statistics that indicate their safety about 60 people. About 75 per cent of permanent employees performance. A review is currently hold shares in the company with a take up underway as to whether the LTIFR should FIGURE 1 - GROUP ECONOMIC INDICATORS rate of 92 per cent among eligible remain the sole group-wide safety target. NET SALES $7.4 BILLION employees for the share scheme in the year under review. COST OF GOODS, MATERIALS NON-COMPLIANCE/PROSECUTIONS Gender diversity remains an important AND SERVICES PURCHASED $5.8 BILLION A prosecution was begun in January 2004 issue. Around 42 per cent of our PAYMENTS TO EMPLOYEES $866.0 MILLION following a fatal forklift accident at our employees are women as are about nine hardware store in East Maitland, New DIVIDENDS PAID TO per cent of the top 900 positions in the South Wales, in 2002, a little over three SHAREHOLDERS $527.0 MILLION company, including management and months after we had acquired the BBC INTEREST PAID ON BORROWINGS $80.0 MILLION senior professionals. There are two Hardware store network. We were female members on our 13-strong INCOME TAX AND OTHER engaged at that time in a review of the Executive Committee. PAYMENTS TO GOVERNMENTS $536.0 MILLION occupational health and safety systems INCREASE IN We have policies which apply across the applying to that business. We pleaded RETAINED EARNINGS $372.4 MILLION group aimed at ensuring that each person guilty and were fined $240,000 in the New has equal access to employment and the South Wales Industrial Relations More than 90 per cent of our revenues and benefits of employment based on the Commission on 27 September 2004. The earnings are derived from our Australian principle of merit. Each of our business fine was reduced to $156,000 in operations. We are not required to report units is required to complete an annual recognition of mitigating factors, including separately on the financial outcomes of our report to the Equal Opportunity for Women acknowledgement that Bunnings is a New Zealand operations. in the Workplace Agency. These reports, corporation that places high priority on which outline strategies implemented to occupational health and safety issues. Details on our community contributions are enhance the representation of women in Legal proceedings are continuing against contained in the Social Profile section of our businesses, have produced very positive Bunnings with respect to notices served on this report, as are the main elements of our feedback from the agency. approach to corporate governance. three locations in Queensland. Given our autonomously-operating business Details of any improvement notices issued We are one of 17 Australian companies unit structure, issues like training are the to our businesses by safety regulators are selected for inclusion in the Dow Jones direct responsibility of the businesses. We contained in their reports, as are Sustainability World Indexes (DJSI World) estimate that across the group employee descriptions of the comprehensive safety for 2005. This covers the top 10 per cent of training days per year average about 5.8 at systems that apply across the group. the 2,500 biggest companies in the Dow a cost of about $814 per employee.

4 SOCIAL RESPONSIBILITY REPORT 2004 GOVERNANCE organisations through the use of its stores Contemporary Craft and Design” develop a In our Annual Report (available at to promote these causes and the close long-term programme to develop design www.wesfarmers.com.au) we provide a very involvement of its employees in many and marketing skills for Western Australian detailed account of the governance fund raising activities. fine wood artists and manufacturers. structure of Wesfarmers Limited. There are The Board of Wesfarmers Limited makes The two year national tour of “Sublime: 13 members on our Board, nine of whom donations up to an annual ceiling of 0.25 25 years of the Wesfarmers Collection of (including the Chairman) are non-executive per cent of before tax profit. It directs Australian Art “ will conclude in January directors. One of these directors is a these funds in most cases to areas which 2005. Since it began in November 2002, woman. The number of executive directors have the broadest possible community the exhibition has travelled to nine will reduce to three with the retirement in reach, such as medical research and capital cities and regional centres across July 2005 of our Managing Director and education. We believe this is the best way Australia and been seen by more than Chief Executive Officer, Michael Chaney. to maximise the benefits from the funds 250,000 people. The Board has adopted a Charter which that can be made available. requires it to have a majority of non- One of our major current partnerships is POLITICAL DONATIONS executive independent directors, a non- with the Telethon Institute for Child Health We believe that the democratic process is executive independent Chairman and to Research in Western Australia. Headed by strengthened if political organisations, have different people filling the roles of Professor Fiona Stanley AC, the Institute particularly those likely to be in a position Chairman and Chief Executive Officer. The conducts research into asthma and to form government, have the resources to Board considers that eight of the directors allergies, Aboriginal child health, cancer, develop policy positions to put to the are independent. birth defects, mental health, disabilities and electorate. Financial contributions to parties can be made only by Wesfarmers Two standing Board Committees infectious diseases. Limited, not by any of our business units. (Nomination and Remuneration; Audit) The Institute’s leukaemia and cancer During the year we donated a total of review matters on behalf of the Board and research is internationally recognised. $60,000 to the Liberal Party, the Australian make recommendations. The Nomination Leukaemia is the most common form of Labor Party and the National Party. All and Remuneration Committee is responsible childhood cancer, accounting for about a donations are disclosed to the Australian for the review of Board performance and in third of all cases. Institute researchers have Electoral Commission which publishes this May 2004 the performance of the Board developed a technique in which they grow information on its website www.aec.gov.au. and the Audit Committee was evaluated cancer cells which are studied extensively through responses by directors to a detailed for abnormalities and to examine molecular questionnaire. changes to help better understand We also have a Continuous Disclosure treatment failures with children. < policy covering announcements to the The Institute is also carrying out world- Australian Stock Exchange. leading work on the causes and treatment Dr Richard Hopkins and of asthma, the most common chronic Professor Fiona Stanley at COMMUNITY CONTRIBUTIONS health problem affecting Australian the Telethon Institute for We believe that companies should make a children and adolescents. Child Health Research in contribution to the community above that Western Australia, one of which flows from the jobs they create and WESFARMERS ARTS Wesfarmers’ community the returns they deliver to shareholders. We are a strong supporter of the arts as we support partners. In our case, assistance comes in two ways believe that a flourishing cultural sector – through our parent company Wesfarmers makes an essential contribution to the Limited and from the businesses we own development of Australia as a sophisticated and operate, either directly by way of and prosperous society. sponsorships and donations or through the Direct assistance totalling about $500,000 involvement of their employees in fund was provided during the year to a range of raising activities. We were able to provide leading performing and visual arts more than $4.5 million in the 2003/2004 companies and organisations. Included in year in direct assistance to community- the arts sponsorship programme is an benefiting organisations and causes. (see innovative four year partnership with the Figure 2 below). Perth International Arts Festival. We are commissioning a series of new performing FIGURE 2- and visual arts works, the first of which is a DIRECT COMMUNITY CONTRIBUTIONS contemporary dance production by West Australian Ballet at the 2005 Festival. WESFARMERS LIMITED $ 1,850,045 Another example of our commitment in BUSINESS UNITS $ 2,730,666 supporting the growth of the arts is our TOTAL$ 4,580,711 collaboration in the Designing Futures project which won an Australia Business In addition, Bunnings contributed to Arts Foundation Award in August 2003. As the raising of another $908,000 for Founding Partner, we helped “Form: charities and other community

SOCIAL RESPONSIBILITY REPORT 2004 5 converting old mine sites into facilities for FIGURE 3-EMPLOYEE DISTRIBUTION BY REGION motor sports, driver training and aquaculture research. The programme is ongoing and involves extensive contributions from tertiary institutions and the local community. At our chemicals and fertiliser operations at Kwinana in Western Australia, CSBP during the year developed an innovative 160 4,668 nutrient stripping wetland to help further reduce its nitrogen discharges to the 6,887 adjacent Cockburn Sound. The pilot 994 wetland is designed to treat up to 650 cubic metres of nutrient-rich water per day 6,423 by circulating it through 10,000 square metres of sedge grasses planted by a 424 voluntary conservation group. If the pilot is 6,028 a success over a two year trial period and full development of the project proceeds, Total employees as at we expect natural biological processes will 30 June 2004 – 28, 317 reduce nitrogen concentrations by up to 50 per cent. 282 2,451 As reported in previous years, we have a group-wide preference for company- FIGURE 4: BUSINESS UNIT LOST TIME A good example is the action taken by our supplied vehicles to run on liquefied petroleum gas because of its environmental INJURY FREQUENCY RATES home improvement and building products division, Bunnings, in tackling the problems benefits over petrol and diesel. BUSINESS UNIT 02/03 03/04 that arise from the use and disposal of plastic bags. Already a signatory to the GROUP ENVIRONMENTAL INDICATORS BUNNINGS 18.3 14.6 National Packaging Covenant to improve Our coal mines and chemicals and CURRAGH 1.0 2.7 ways of managing its waste streams, fertilisers businesses have highly developed Bunnings has taken the plastic bag issue monitoring and recording systems as part PREMIER COAL 0.0 7.0 head on by imposing a 10 cents a bag levy. of their everyday operations. But for others KLEENHEAT GAS 1.4 0.0 Customers who need containers for their some of the commonly-used criteria for WESFARMERS LPG 7.2 0.0 purchases are offered the use of more environmental assessments are either not relevant or the businesses have not yet INDUSTRIAL & SAFETY 8.6 5.4 readily recyclable cardboard cartons or they can purchase, at cost, reusable bags. implemented ways of measuring CSBP 5.4 2.4 performance against them. From the introduction of the levy in the INSURANCE - 2.3 Australian stores on 15 September 2003 to Nevertheless, we have this year improved 30 June 2004, plastic bag use has reduced data collection in a number of areas and by more than 70 per cent. Proceeds of can report on some significant issues. $104,000 from the levy have been donated Environmental to the Keep Australia Beautiful Council. To GREENHOUSE GAS EMISSIONS Profile the end of the period covered by this report, In last year’s report we said the group-wide Bunnings sold 496,452 reusable bags. assessment of greenhouse gas emissions The businesses we own are very different in had been completed. This study by external their nature and so, therefore, are many of Bunnings continues to implement its policy consultants was considered by our Board in their environmental challenges. We have a on supply of wood and wood products December 2003 and the directors accepted group environment policy and risk which will ultimately lead to all suppliers its recommendations. These include management standard which require our having to produce acceptable third party conducting audits by businesses, business units to develop management certification of legally-operating and particularly with respect to electricity use, systems that best suit their particular sustainably-managed forest sources. and the ongoing monitoring by the circumstances. The policy requires In a totally different operating Corporate Office of emissions. The businesses to operate within the guidelines environment, our Premier coal mine at recommendations have been implemented that accompany the Group Objective. One Collie in Western Australia’s south west and this year we have standardised the of these commits the company to “placing achieved national recognition for its reporting of this data based on Australian strong emphasis on protection of the rehabilitation efforts when it won the Greenhouse Office methodology. environment as part of its corporate social mining section of the 2004 Banksia responsibility obligations”. Legal compliance Awards. Selected from more than 20 Total direct and indirect greenhouse is the absolute minimum – we always try national finalists, Premier was recognised emissions for the group, converted to to go beyond that. for its sustainability planning, management carbon dioxide equivalents, were estimated systems and the work it has done on at 2.2 million tonnes (see Figure 5). This

6 SOCIAL RESPONSIBILITY REPORT 2004 FIGURE 5: GREENHOUSE GAS EMISSIONS (CO2-e tonnes) Our LPG extraction plant at Kwinana in Western Australia continues work to ensure BUSINESS UNIT DIRECT INDIRECT TOTAL its operations comply with noise control BUNNINGS 7,104 162,488 169,592 regulations. CURRAGH 336,956 206,526 543,482 Full details on these matters are contained PREMIER COAL 39,629 23,855 63,484 in the business unit reports. KLEENHEAT GAS 13,679 3,498 17,177 NATIONAL POLLUTANT INVENTORY (NPI) WESFARMERS LPG 123,586 6,771 130,357 All our Australian businesses that are INDUSTRIAL & SAFETY 9,060 17,145 26,205 required to report under the NPI mention CSBP 1,242,244 33,626 1,275,870 this in their sections. Full details are INSURANCE 2,324 2,452 4,776 available on the NPI website (www.npi.gov.au) but this year we have WESFARMERS GROUP 2,230,943 included reference to some of the more significant emissions in the relevant business reports to give readers an idea of compares with 2.4 million tonnes reported because many of its operating sites are the scope of this issue. last year and 1.9 million tonnes in leased and no adequate measure is 2001/2002. However, these year-to-year available and the Insurance division which comparisons need to be treated with some is a low water user but does not measure ENVIRONMENTAL EXPENDITURES caution given that previous numbers have consumption. Some of our businesses obviously have been affected in some cases by incomplete more exposure to environmental issues data or other factors. We are confident FIGURE 7: WATER CONSUMPTION than others. Direct expenditure during the that the system now in place, subject to MEGALITRES year, including salaries and specific project some relatively minor matters mentioned BUNNINGS 845 expenses, by those businesses for whom in some of the business unit reports, will these are most relevant (Curragh, CSBP, provide the most accurate possible CURRAGH 4,693 Premier Coal, Wesfarmers LPG and measure in the future. PREMIER COAL 525 Kleenheat Gas) exceeded $8.7 million. WESFARMERS LPG 13 ENERGY USE CONTAMINATION INDUSTRIAL & SAFETY 118 As readers will note in the detailed business Site contamination is an issue for some of CSBP 4,289 unit reports, we have this year standardised our business units and details are provided our reporting of energy use and related it WESFARMERS GROUP 10,483 in this report. The most significant of these to units of consumption or other such involve our CSBP chemicals and fertilisers WASTE measures as, indeed, we have with the business and our former forest products greenhouse gas emissions and waste data. We have incomplete records of waste business, Sotico. generation. Kleenheat Gas and Insurance do Total estimated energy use for our group in CSBP is engaged in remediation of a former not measure solid or liquid waste. Liquid 2003/2004 was almost 14.5 million fertiliser site at Bayswater in Western waste for these businesses and for our gigajoules with business–by–business usage Australia which involves treating Industrial and Safety division is confined summarised in Figure 6, below. contaminated soil, impacted groundwater mainly to vehicle oils which are collected and asbestos in buildings on the site. The during servicing. Bunnings does not FIGURE 6: ENERGY USE (IN GIGAJOULES) project has involved community meetings measure liquid waste volumes which are and other stakeholder consultation and BUSINESS UNIT generated from food preparation in cafes, finalisation is expected to take four to five drainage from bin storage areas, infrequent BUNNINGS 522,911 years. Remediation of the ammonia/arsenic washdowns of small hire equipment and CURRAGH 1,047,405 plume at CSBP’s Kwinana site is likely to rinsing of water-based paint brushes. PREMIER COAL 612,988 take about three years following the With these qualifications, we estimate total commissioning in May 2004 of a KLEENHEAT GAS 207,371 solid waste at 384,460 cubic metres with wastewater treatment plant. WESFARMERS LPG 2,160,923 liquid wastes of 964,980 kilolitres. With the sale of the Sotico business, we INDUSTRIAL & SAFETY 180,684 NON-COMPLIANCE/PROSECUTIONS have retained responsibility for remediating CSBP 9,698,695 contamination at and adjacent to the We are not aware of any significant non- INSURANCE 42,218 timber mill at Pemberton in Western compliance with environmental regulations Australia and at the processing centre in WESFARMERS GROUP 14,473,195 or prosecutions relating to environmental the nearby town of Manjimup. issues during the year. WATER CONSUMPTION Detailed accounts of our approach to At CSBP, 16 potential non-compliances Water use is an important issue in these issues is contained in other parts of were reported to the Department of Australia. In 2003/2004 we estimate use of this report. Environment (DoE). The DoE has advised scheme and bore water totalled 10,483 that no further action will be taken with megalitres (see Figure 7). This excludes respect to 14 of these and discussions water used by our Kleenheat Gas business continue on the remaining two issues.

SOCIAL RESPONSIBILITY REPORT 2004 7 Andy Cooper helping a customer at the Busselton BUNNINGS warehouse in Western Australia. > We are Australasia’s leading supplier of home and garden improvement products and building materials. Sales during the year reached about 3.8 billion dollars. LOST TIME INJURY At 30 June 2004 we had 125 warehouse stores and 85 FREQUENCY RATE

smaller format stores with 12 new warehouses opened in 00 01 02 03 04 the financial year and another seven under construction 9.5 5.9 8.4 18.3 14.6

in Australia and New Zealand. We also operate 18 WA 1 July 99 - 30 June 04 (as at 30 September 04) Salvage discount variety stores in Western Australia. *Contractors not included We employ about 21,000 people.

encourage customers to use alternatives by Overview charging 10 cents per bag with all the The main challenge facing our business on funds donated to Keep Australia Beautiful. an ongoing basis is the safe operation of NUMBER OF WORKERS An external review of electricity our stores, manufacturing sites, distribution COMPENSATION CLAIMS consumption was conducted to quantify and support centres in a way that electricity use in our stores, distribution 00 01 02 03 04 minimises any adverse impact on the centres and support centres and identify 448 503 860 1,061 1,176 environment or the communities in which opportunities to reduce electricity we operate. consumption. We will focus on identified In dealing with this challenge, the three reduction opportunities during the next year. main environmental areas on which we The two main safety areas on which we focused our attention during the year concentrated during the year were were progressing implementation of our conducting the Bunnings Safety Awareness timber procurement policy, introducing a For Everyone (BSAFE) safety leadership plastic shopping bag reduction strategy training programme for our entire and conducting an external review of management team and implementing electricity consumption. specific hazard reduction programmes Our Timber and Wood Products Purchasing directed at higher risk areas of our business policy is progressing towards the second such as manual handling, traffic year benchmark in December 2004 management and contractor safety. requiring suppliers to possess official The BSAFE strategy is aimed at improving documentation attesting to the legality of safety through a multi-pronged approach the forest operations from which the delivering a sustainable reduction in unsafe product is sourced. acts and unsafe conditions. BSAFE began in We achieved a reduction of over 73 per August 2003 and was launched at our cent in the use of plastic bags following annual conference with the first phase the introduction during the year of our very consisting of an intensive safety leadership successful campaign in Australia to workshop for our executives. The workshop

8 SOCIAL RESPONSIBILITY REPORT 2004 www.bunnings.com.au 03 04< has greatly assisted those executives in 2003 REPORT PRIORITIES OUTCOMES their role as safety leaders driving behavioural change. BSAFE includes a Improve safety performance by at least Not achieved. Our LTIFR reduced by strong emphasis on the role of executives halving our LTIFR each year with zero 20 per cent from 18.3 last year to 14.6. in conducting safety observations during LTIs our ultimate aim. There were 347 LTIs. site visits. In New South Wales and the Australian A completely revised manual handling Capital Territory where our new BSAFE training programme has been designed safety improvement strategy was fully with input from risk consultants and our implemented, our LTIFR reduced by 43 per team members. It will be conducted cent from 35.5 to 20.2. through a “train the trainer” process at all stores. A comprehensive traffic Further develop safety leadership culture Achieved. Ten safety leadership workshops management plan incorporating designated and safety education within senior were conducted by Dupont for our senior unloading bays, forklift exclusion zones, executive and management teams. managers in Australia, incorporating a safety signage and pedestrian line marking has launch video. We adopted a revised safety been designed for each store. Accredited vision of “Nobody Gets Hurt” recognising all BSAFE inductions were developed and injuries are preventable for team members, implemented for suppliers. customers, contractors and suppliers. Our internal OHSE audit programme this Deliver re-engineered Safety Management Achieved. We launched our comprehensive year demonstrated significantly higher System based on AS/NZS 4801 across the safety improvement strategy BSAFE at levels of compliance: dangerous goods 97 business. a national conference for all managers per cent compliance (compared with 76 per and delivered the programme progressively cent last year) and occupational health and throughout the entire network. The BSAFE safety 92 per cent compliance (compared programme is a new direction in with 80 per cent last year). safety focused on reducing unsafe acts and conditions.

BUSINESS Continue developing an effective Achieved. An external review was conducted MANAGEMENT Environmental Management System to quantify electricity consumption. An based on ISO 14001. external environmental audit was conducted on a cross-section of our business operations Training to determine aspects and impacts requiring To achieve our environmental and safety EMS consideration. goals we upgraded existing, and introduced new, training and development programmes Progress sustainable timber and wood Achieved. Our first year policy benchmark covering safety, health and the policy with our suppliers. required suppliers to complete a survey environment. listing the origin and species of timber and wood products and indicate the current level Software implementation and testing is of documentation available to establish the progressing for our on-line learning forest source as legal and well managed. All system known as the “Bunnings Learning suppliers surveyed met the benchmark. Academy”. This system will increase our flexibility to provide training and Continue to improve the eco-efficiency Achieved. A highlight was our plastic information to our team members through of our operations. shopping bag consumption in Australia kiosks currently being piloted at selected reducing by over 73 per cent from stores. approximately 2,660 bags sold per 100,000 customers in September 2003 down to 702 ENVIRONMENTAL bags sold per 100,000 customers in June We conducted an electricity consumption 2004. We sold 496,452 reusable bags during awareness programme for our Australian the year. complex and store managers to assist them in identifying and reducing common areas of electricity wastage. HEALTH AND SAFETY A completely revised manual handling A workshop for our executives and Copies of our new safety video were training programme was designed with merchandise buying teams on Australian distributed to each store and shown to input from risk consultants and our team and international timber certification and team members, reinforcing the top down members. It will be conducted through a our timber and wood products procurement commitment to safety and the BSAFE “train the trainer” process at all stores. To policy was attended by about 35 people. strategy. During the year about 20,000 support this approach a new custom-made We also delivered environmental team members received this message, manual handling training video was awareness presentations for senior which is also incorporated as part of the developed by an external film production managers to assist them in identifying induction process. company and filmed on location at one of eco-efficiency opportunities.

SOCIAL RESPONSIBILITY REPORT 2004 9 BUNNINGS

our stores. The video was well received by engaged at that time in a review of the team members and presents the issues and Compliance occupational health and safety systems potential hazards that are specific to ENVIRONMENTAL applying to that business. We pleaded working in a warehouse or smaller store guilty and were fined $240,000 in the New We are not aware of any non-compliance environment. South Wales Industrial Relations during the year with environmental legislation Commission on 27 September 2004. The Accredited BSAFE inductions were or other environmental requirements. fine was reduced to $156,000 in developed and implemented for suppliers. To assist ongoing compliance we keep up to recognition of mitigating factors. These These inductions were designed to date with any changes in regulations by included our early guilty plea, cooperation communicate the BSAFE standards to subscribing to a number of professional with the Worksafe investigation and the suppliers working on our sites. Suppliers journals, Australian and New Zealand fact that Bunnings is a corporation that received a three hour training presentation Standards and news alerts from state and understands the importance of, and has reinforcing acceptable safe working federal authorities’ websites. strong commitment to, occupational health practices and advising them of the and safety. potential hazards specific to our stores We seek open dialogue with the such as forklifts, manual handling, and government agencies that regulate our chemical storage. Proactive hazard business and share our industry experiences LICENSING AND APPROVALS reporting is also encouraged. At the through group forums and public reviews of Individual local government authority completion of the course participants environmental regulations. environmental requirements are addressed at the development application stage of received an accreditation pass. During the We are compliant with applicable each new site. year 4,880 suppliers attended this training. legislation and codes of practice for Specialist training consultants were used to retailers in the storage and handling of Dangerous goods storage licences or storage provide training on mobile plant such as consumer-packaged dangerous goods. notifications are in place where required by forklifts with approximately 250 team applicable legislation. Where we are able to members having undergone forklift NATIONAL POLLUTANT INVENTORY (NPI) maintain storage limits below licensing refresher training and elevated work Due to the nature of our retail business cut–off levels we adhere to our internal risk platforms training during the year. activities, we did not use any of the substances management programme based on NOHSC: 2017(2001) and AS/NZS 3833. We have also introduced a specific Dexion listed under the NPI during the year and racking safety training programme to all therefore we are not required to report. stores. This provides skills and knowledge in Management the erection, dismantling, safe loading and HEALTH AND SAFETY unloading and inspection of racking. We operate under health and safety systems We conducted the BSAFE safety leadership legislation that varies between the regions INTEGRATED MANAGEMENT SYSTEM training programme for all of our senior in which we operate. Wide scale integration of OHSE standards managers and for department supervisors Initiatives such as externally-conducted risk has been achieved across our business in New South Wales and the Australian assessments, safety committees, hazard through the introduction of the BSAFE Capital Territory to address previous poor inspections and internal audits assist us to strategy. safety performance in this region. Since identify and address any areas of risk or the introduction of the programme, we non-compliance. Each of our functional areas is represented have seen a 43 per cent reduction in our by an executive on the Senior Safety We are not aware of any potential non- LTIFR in New South Wales and the Leadership Team who has responsibility to compliance during the year with health and Australian Capital Territory. The safety implement aspects of the OHSE strategy in safety legislation or other health and safety leadership programme for department their area. This is reflected in the processes requirements, except as set out below. supervisors will be duplicated in all other and planning across the merchandising, regions in the next year. We received 83 notices from relevant operations and store development areas of authorities covering safety–related issues our business. EMERGENCY ranging from traffic management, forklift We will further improve this integration An arrangement with a national fire safety safety, manual handling and storage of through a project currently being training provider has been established to dangerous goods. All notices were resolved undertaken to implement a networked risk deliver a competency-based emergency by the specified date. management system that can be used to management module specific to our needs. The prosecution notices served on our record and track incidents and keep records All site emergency warden teams will Caloundra, Mackay and Bundaberg stores of individual site risk assessments. complete this training over the next year reported last year have been further with annual refresher training thereafter. adjourned and are still subject to legal ENVIRONMENTAL MANAGEMENT Our executives attended a one-day proceedings. The hazards associated with SYSTEM (EMS) these incidents have all been addressed. emergency and crisis management We have progressed the development of our workshop and scenario exercise to further We received a prosecution notice from the EMS systems based on AS/NZS ISO 14001 by build our capacity in this area. New South Wales Workcover Authority in engaging consultants to conduct relation to the fatal forklift accident at our environmental audits at a number of our East Maitland store in 2002, a little over sites. These audits are the basis of creating three months after we had acquired the an aspects and impacts register for our EMS. BBC Hardware store network. We were

10 SOCIAL RESPONSIBILITY REPORT 2004 BUNNINGS

The key aspects identified in the audit with Safety for fire system testing and POLICY the potential for high impact related to maintenance at all our stores. To clearly communicate our BSAFE strategy electricity and water consumption, waste we have adopted a simple and powerful disposal and recycling, liquid waste from SAFETY MANAGEMENT SYSTEM (SMS) vision statement: “Nobody Gets Hurt”. Our paint brush washing, nutrient run–off to In recognition that our culture in terms of aim is that no one is ever injured in our stores stormwater drains and dangerous goods safety performance and awareness was or elsewhere in our business operations. spillage containment. Recommendations unacceptable, a strategy known as BSAFE Our annual target is a reduction of at least include updating existing and developing to improve safety performance and 50 per cent in our LTIFR, with an ultimate new procedures, internal communication awareness across our business was aim of zero LTI’s. and training tools and assigning developed in 2003 and is being responsibilities to sites. implemented. Ultimately, safety is about looking after These recommendations form the basis for each other and ourselves, understanding The BSAFE strategy aims to dramatically ongoing strategies to be undertaken in the and accepting that we all must share the improve our safety performance with a next year, aimed at improving our responsibility. focus on “safety” as a “whole of business” environmental performance. issue. This strategy is being led and driven We have adopted policy statements in Our EMS is planned to be fully established by the multifunctional senior management relation to our resource usage and waste by January 2007. group that make up the Senior Safety reduction and recycling as part of our Leadership Team. Key areas of focus are: National Packaging Covenant commitment. We also have adopted a policy aimed at QUALITY SYSTEM • developing clarity of safety objectives, ensuring that timber and wood products in Our OHSE programmes are subject to a key milestones and relationship to our stores are derived from legally number of quality assurance monitoring commercial business outcomes across all operating and sustainably managed forests. processes. A multi-layered system of self- levels of team members; Our five year corporate plan includes a assessments and ongoing audit programmes • safety leadership training and education social responsibility statement detailing our ensures exceptions are remedied quickly. across all functions and levels; and Each month, minutes of safety committee commitment to our workforce, the meetings, injury registers and hazard • implementing a comprehensive site- community and the environment. We are inspection checklists are completed, based safety management system. currently working on the development of reviewed and actioned by the relevant A behavioural change programme is being an overarching environmental policy based health and safety coordinators, complex or implemented with the assistance of on that statement and recommendations store manager and senior manager. DuPont, an international leader in best from the environmental aspects and practice safety procedures. All of our impacts audit conducted in June 2004. We An internal OHSE audit review is conducted Australian senior managers completed this will also be developing internal and annually to target potential risk areas. BSAFE safety leadership training external communication tools to better We aim to continuously improve our programme and are currently involved in promote our environmental policy performance in managing potential risks. “field coaching” of team members with objectives to our team and customers. Audit results are scrutinised by the relevant DuPont consultants. senior manager with actions and resources applied quickly to resolve issues and The BSAFE safety leadership training has < prevent recurrence. Management greatly assisted our executives in their performance assessments and store bonus role as safety leaders driving behavioural Truck exclusion zones, like payments remain closely linked to these change. BSAFE includes a strong emphasis this one at the Bayswater audit results. on the role of executives in conducting warehouse in Victoria, are safety observations during site visits. The part of an improved traffic The audit programme this year programme seeks involvement and management system. demonstrated significantly higher levels of opinions by engaging a broad range of compliance: dangerous goods 97 per cent team members. compliance (compared with 76 per cent last year) and occupational health and A completely revised BSAFE safety safety 92 per cent compliance (compared management system was developed and is progressively being released to stores in with 80 per cent last year). With the large module format. The two initial modules for number of our team members involved in traffic management and forklift operation the ongoing promotion of our BSAFE were released in February 2004 and other strategy, it is expected that a high level of modules will be released at the rate of two OHSE audit compliance will be maintained. per month during 2004. These modules We have continued with our quarterly assist team members in managing safety external audits on essential fire and life and each new module is discussed at safety systems maintenance at locations to monthly safety committee meetings for ensure scheduled maintenance is taking promotion to team members. place according to standards and any faults Safety is the first agenda item at our actioned for repair or upgrade. executive and senior management meetings An extensive essential service review was and a safety observation has to be completed. This resulted in a discussed by each participant. comprehensive performance-based partnership agreement with Chubb Fire

SOCIAL RESPONSIBILITY REPORT 2004 11 BUNNINGS

GREENHOUSE GAS EMISSIONS management and volume of our public address Increases reported in our greenhouse system whenever this becomes an issue. gas emissions below are as a direct result of the opening of new warehouse sites, OTHER EMISSIONS improved measurement identifying We are not aware of any emissions of previously unreported emissions from ozone-depleting substances. landfill waste disposal and New Zealand vehicle fuel and gas consumption. This data excludes greenhouse gas emissions Water from the WA Salvage business in Western Australia. CONSUMPTION Our direct greenhouse gas emissions during Our main use of water during the year the year from vehicle fuel use and gas related to nursery irrigation systems and heating were estimated to be 7,104 tonnes kitchen/washroom facilities. of carbon dioxide equivalent, up 50 per Total water consumption for the year was cent on last year. Excluding the addition of estimated to be 845 megalitres. New Zealand vehicle fuel and gas heating Our total water consumption per hundred emissions, the actual Australian increase thousand dollars of sales was estimated to was 13 per cent. be 23 kilolitres. In addition, our indirect greenhouse gas Liz Canning at the We are unable to measure the quantity of emissions during the year from imported Bayswater warehouse with ground water used by a small number of electricity were estimated to be 125,871 a reusable bag, a part of sites to reticulate landscape garden areas. tonnes of carbon dioxide equivalent, up 11 Bunnings’ plastic bag per cent on last year, attributed to new Scheme water irrigation systems for the reduction campaign. warehouse store openings. Indirect plant nursery areas are controlled through emissions from waste disposed off-site an automated pre-set timer system. > were estimated at 36,617 tonnes of carbon Reticulation cycles are programmed to dioxide equivalent. Waste disposal has been comply with sprinkler restrictions where included in our greenhouse gas emissions imposed. Station pre-sets are programmed this year in accordance with the Australian for the correct duration to prevent overwatering. ENVIRONMENTAL Greenhouse Office recommendations. The only other source of greenhouse gas In South Australia, where specific restrictions emissions of which we are aware is related apply to nurseries, we have implemented Air to LPG used by forklifts and as we have not procedures to ensure we minimise water use We have undertaken air quality measured the quantity of LPG used we are and comply with regulations. assessments using external consultants for unable to estimate associated emissions. a cross section of our locations, including a REUSE AND RECYCLING Our greenhouse gas emissions were largely large warehouse store, a smaller traditional due to electricity consumption at our Five sites (Mile End in South Australia, store and a large distribution centre. These stores, distribution centres and support Cannington and Morley in Western tests have indicated extremely low levels of centres (approximately 74 per cent), waste Australia, Minchinbury in New South Wales volatile organic compounds, dust and disposed off-site (approximately 21 per and Mackay in Queensland) reuse storm particulates and carbon monoxide cent) vehicle fuel use (approximately four water run-off from the nursery to water emissions that are substantially below per cent) and gas heating at some stores landscape gardens or recycle back through NOHSC workplace exposure standards. (approximately one per cent). the irrigation system. Comments regarding the programmes in DUST Our total (direct and indirect) greenhouse gas emissions per hundred thousand dollars place within the business to promote water Wood dust is produced at most stores as a of sales were estimated to be 4.5 tonnes of conservation are contained in the result of sawing for customers who request carbon dioxide equivalent, up 19 per cent “Community/Social” section of this report. cut-to-length timber. Power saws are fitted on last year. The actual increase excluding with dust extractors and team members are this year’s addition of waste disposal and DISCHARGES TO SURFACE AND required to wear supplied protective New Zealand fuel emissions, equates to GROUNDWATER equipment during their operation. eight per cent, mainly attributed to new We conform to all local council ODOUR warehouse store openings. requirements for car park, nursery and storm water drainage. Odorous products such as manure, garden NOISE mixes and chemicals are in small We have procedures in place at stores to Environmental impact studies are submitted consumer-sized sealed packages. Odour minimise the risk of accidental release of to local authorities as required when a from these storage areas is managed nutrient run-off or leaking chemicals into warehouse development is undertaken. through ventilation systems and close the storm water system. In the recent attention to housekeeping by removing or We work with neighbouring residents to environmental aspects and impacts audit fixing broken or damaged packaging. adjust noise levels relating to traffic the importance of good housekeeping in

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outdoor storage areas was noted to reduce storage areas, infrequent wash downs of provide recycling services covering wooden the likelihood of spilt soil mixes or small hire equipment and rinsing of water- pallets, steel strapping, plastic plant pots, fertilisers washing into stormwater drains. based paint brushes. We did not measure glass and aluminium cans at a number of We already pay close attention to the total quantity of liquid waste we stores, further reducing landfill waste. housekeeping to minimise odour by produced during the year, but we estimate We continued our support of the “Paint removing or fixing broken or damaged that 4,440 litres of paint rinsing water Back” paint recycling programme building packages of manure, garden mixes and were reused on garden beds. on the March 2003 trial conducted in chemicals, including fertilisers. Our waste disposal guidelines do not conjunction with Dulux and Victoria permit any liquid waste to be discharged to EcoRecycle. During April 2004 our storm water. Bayswater warehouse store in Victoria ran Waste “Paint Back” to trial a more sustainable Where required by local authorities: SOLID WASTE paint recovery process using a specially • wash down sumps or separation units We estimate our total solid general waste designed drop off point inside the store that are installed to capture hydrocarbon stream during the year to be 268,956 cubic was available to the public every day free of run-off; metres prior to compaction. Of this charge. Ten tonnes of steel paint cans were amount, over 17,000 cubic metres of • bin wash down areas are connected to recycled and 6,300 litres of recovered paint cardboard and plastic is recycled. sewerage systems instead of draining were recycled into a fence paint product direct to storm water; and that is being sold in our stores. We will Our total solid waste disposed of to landfill continue to work with our programme • locations with a cafe have a grease trap was estimated to be 7.3 cubic metres per partners to extend “Paint Back” to other installed to filter contaminants before hundred thousand dollars of sales. sites in Victoria in the first instance. drainage to sewer. We are continuing to pursue our action plan commitment as a signatory to the Waste management contractors collected CONTAMINATION National Packaging Covenant and have the captured hydrocarbons and grease. Asbestos management plans have been put submitted our annual progress report Mechanical paint mixing machines are in in place at four sites in New South Wales detailing the achievements so far and our place at all locations, minimising the use of referred to in last year’s report. We ongoing projects. The action plan report manual stirrers and rinsing water. engaged environmental consultants to can be accessed at www.packcoun.com.au. undertake asbestos assessments at three A minimal amount of water-based paint Our action plan has been a mechanism for sites in Western Australia. Two were found rinsing water is still produced by cleaning us to bring together a number of varying not to contain asbestos and a management paintbrushes and stirrers. An analysis of environmental and eco–efficient strategies. plan was put in place for the third. this liquid has proven it to be non- To assist in the development of a hazardous for reuse in garden beds with Another nine Australian and eight New replacement National Packaging Covenant the suspended solids filtered out and Zealand sites believed to contain asbestos that will follow on from the existing disposed of in general waste. have been identified for assessments and covenant in August 2005, we took part in a we are negotiating with the owners of Clean up and disposal of leaking packages series of feedback forums and reviews. these sites to complete the process. of chemicals products is handled in We implemented a plastic bag reduction accordance with our hazardous waste strategy in response to public concerns disposal procedures, where it is contained < regarding the use of plastic shopping bags. for removal to an approved disposal facility. In September 2003 we voluntarily Diane Bell explaining to a introduced a fee of 10 cents per plastic bag RECYCLING INITIATIVES customer the paint recycling in all our Australian stores, which is programme operating at the In partnership with major recyclers Amcor donated to the Keep Australia Beautiful and Visy Australia we have cardboard and Bayswater warehouse. Council. We encouraged customers to use plastic shrink-wrap recycling collection free cardboard boxes or purchase a large stations at all major sites. Compactors reusable carry bag instead of using plastic are used in warehouses to optimise bags. The programme has influenced a recovery rates. reduction in plastic bags sold from approximately 2,660 bags per 100,000 An agreement with Visy was established in customers in September 2003, when the January 2004 to install co-mingled fee was introduced, down to 702 bags per recyclables and office paper recycling bins 100,000 customers in June 2004. During at our metropolitan stores in Victoria and this period reusable bags have been heavily New South Wales. Co-mingled bins will be promoted throughout our stores with a located in cafe areas for use by customers total of 496,452 bags sold. As at the end of and team members. the reporting period more than $100,000 Where we have been unable to establish had been donated to the Keep Australia regional or state-based arrangements to Beautiful Council. recover other recyclable material such as wood, steel and plastics, stores are LIQUID WASTE encouraged to establish relationships with Liquid waste is produced from food local specialty recycling companies. These preparation in cafes, drainage from bin

SOCIAL RESPONSIBILITY REPORT 2004 13 BUNNINGS

Resource use GAS many new safe work procedures for Natural gas and LPG accounted for potential hazards, including adjustment of ENERGY approximately six per cent of our total storage racks, use of pallet jacks and electric forklifts, stacking shelves, using box Our main use of energy during the year energy consumption by gigajoule. Our gas cutters, chemical handling, operation of related to electricity consumption, vehicle and LPG consumption was estimated to be power tools, use of ladders, general lifting fuel use and gas heating at some stores. 25,217 gigajoules and 277,136 litres, respectively. and use of plant and equipment. We estimate our total energy consumption In April 2004 we introduced a new weight for the year to be 522,911 gigajoules, up icon marking system to all suppliers who approximately 21,000 gigajoules or four per SAFETY AND provide bagged or boxed product weighing cent on last year. 20 kilograms or more. This system aims to Our total energy consumption per hundred HEALTH reduce workplace injuries by raising thousand dollars of sales was estimated to LOST TIME awareness of safe handling and storage of be 14 gigajoules. This is the first year that Our LTIFR was 14.6 (compared with 18.3 these heavy products. we have introduced a total energy last year) and, during the year, there were consumption calculation in this format and 347 LTIs. Our Average Time Lost Rate, EMERGENCY RESPONSE it will be used as a basis to measure our which provides a measure of the severity of Contingency plans are in place to address performance in following years. such injuries, was 75.7 (compared with major accidents or security breaches. Our energy sources are detailed below. 84.9 last year). These statistics do not Emergency response guides for a range of include contractor hours and injuries. chemical spillages are in place and are FUEL The number of all injuries during the year accessible at every location. Diesel and petrol accounted for was 5,351, compared with 5,492 last year, We endeavour to have an adequate number approximately 13 per cent of our total a reduction of 2.5 percent. of our team members trained in first aid to energy consumption by gigajoule. Our We believe that an overall LTIFR reduction ensure that someone is available to assist diesel and petrol consumption was 520,733 of nearly 20 per cent was attributable to at any time in each of our stores. We litres and 1,442,196 litres, respectively. the introduction of our BSAFE strategy. The conduct audits to test whether adequate first aiders are available and more team ELECTRICITY BSAFE strategy is expected to deliver a sustainable improvement in all injuries members are trained where required. Electricity accounted for approximately statistics as its implementation continues. We use the services of trauma counselling 81 per cent of our total energy professionals to support any team member consumption by gigajoule. Our electricity All safety incidents are reported to senior or customer involved in a serious incident consumption was estimated to be management within 24 hours. Safety at one of our stores. 117,000,000 kilowatt hours. statistics are distributed and discussed by management and location safety We have engaged Crisis Management committees each month and, in addition, Consultants to review our current capacity each month our Managing Director chairs a in this area. As part of this project we have < Senior Safety Leadership Team meeting conducted an executive training workshop where LTIs are reviewed. These statistics are and a crisis scenario exercise to improve Daryl Durack conducting a reported to our board every two months. our capacity to manage a serious event safety observation on a that may have an impact on our business, “WAV” (Work Assist Vehicle) WORKERS COMPENSATION our team members and the community. There were 1,176 workers compensation machine at Bayswater. We began upgrading our emergency and claims reported, relating to occurrences crisis management plans to reflect industry during the year, compared with 1,061 best practice and expect to complete this last year. process by December 2004. The upgraded plans will be implemented at all stores to improve local capacity to deal with Hazard and risk emergency situations. PROGRAMMES We reviewed the current level of The BSAFE safety leadership training emergency warden training and we are programme we have introduced has been working with an external training provider customised by DuPont to suit our needs to improve the training standard over the and has a strong emphasis on safety next year. A programme to conduct annual behaviour and leadership commitment to refresher training for emergency warden safety. The training takes two days and teams will also be undertaken, including includes conducting safety observations annual facilitated fire drill exercises. with a focus on unsafe behaviours and unsafe conditions. MATERIALS HANDLING AND STORAGE We have updated our existing safe work Materials handling involves the unloading procedures into a simple format for ease of of deliveries and the moving and stacking understanding. We have also documented

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of merchandise onto shelves or high-rise EMPLOYEE WELLBEING storage areas at our stores and The wellbeing and personal fitness of our distribution centres. team members is integral to their health A variety of material handling devices are and safety in the workplace and their provided to ensure this takes place safely ability to perform at their best. and efficiently, including specially We continued our commitment to our designed trolleys for customers to move team’s personal wellbeing through the heavy bagged product, long lengths of following programmes: timber or plants safely around our stores. The step-through design of our check-out •a two day “Investment in Excellence” life counters and cordless hand-held scanners skills workshop offered to all supervisors at all points of sale, allow cashiers to scan and managers and their partners; heavy items in the trolley and avoid • stress management workshops for manual handling. management teams; We have trialled electric pallet trolleys to • annual influenza injections offered to reduce physical strain when moving heavily every team member; and laden pallets and these will be introduced •a subsidised yoga programme at our to the store network in the coming year. store support centre in Perth. A comprehensive traffic management We are also committed to providing a plan incorporating designated unloading positive work environment by ensuring that Matthew Grosvenor and bays, forklift exclusion zones, signage it is free from all forms of inappropriate Steve Brown at the and pedestrian line marking has been discrimination. Bayswater warehouse designed for each of our stores to safely manage the movement of trucks, forklifts lifting a bulky product off racking featuring new and pedestrians in our yards and drive COMMUNITY through areas. Implementation of these stickers warning of heavy goods. traffic management plans is well STAKEHOLDERS advanced and expected to be fully completed by January 2005. Our stakeholders include our employees, > our customers, our suppliers and other Strict forklift curfews exist where no access contractors, relevant government agencies, is permitted to the retail floor during peak the local communities in which we operate customer periods. and the shareholders of our parent Any customer complaints from our in–store company, Wesfarmers Limited. Material Safety Data Sheet (MSDS) “How did we do” cards are personally registers for hazardous substances used in Our philosophy is where possible, to followed up by the complex or store the workplace are maintained at each proactively establish open dialogue with our manager, or a senior manager as required. store. An online database of MSDS is stakeholder group and encourage feedback We received 79 written complaints lodged accessible by stores and can be printed out and comment as to our performance. for customers on request. by customers relating to alleged product With the size of our store network it is a performance or damage to property. We RISK ASSESSMENT challenge for us to ensure we closely engage personally engage our customers in an with all those who take an interest in our attempt to resolve any dissatisfaction and, A risk assessment audit was conducted at business. We do this through stores getting where this is not possible, formal claims our Caloundra frame and truss involved in the local community through our are lodged with our insurers to manage manufacturing site by external risk store-based community involvement the claim. consultants. As a result, action plans programme and engaging at a regional and have been implemented and national level with major stakeholders. LIAISON WITH AUTHORITIES improvements to site safety are being implemented and monitored. We remain proactive in engaging and FEEDBACK/COMPLAINTS establishing open working relationships Internal risk assessments are used to assist We provide a feedback tool at every with authorities that regulate our business in determining appropriate action to location through “How Did We Do?” cards, and the non-government organisations that address potential hazards. Assessments promoted at the front of the store. A take an interest in our operations. may be undertaken when a new potential recording and reporting system ensures Good working relationships have continued hazard is identified in the business, such that every comment is forwarded to our during the year with state environmental as a new product on range, or as part of executive team for reply if requested. an accident investigation or recognised protection and waste management change in an existing potential hazard. The frequent positive letters from agencies through our involvement in These assessments are a valuable tool in customers, communities, government reviews of the National Packaging assisting us to target efforts on higher- agencies and non-government Covenant. We have worked closely with risk areas and implement commercially organisations encourage us to keep striving EcoRecycle in Victoria and received their sound, practical solutions that are relevant to make a difference in the local written appreciation for our support of the to the level of risk. communities where we operate. “Paint Back” programme.

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In New South Wales we have been involved A trade customer newsletter, “Trade Talk”, At each of our warehouse stores there is a in several community safety programmes, was sent to major trade customers and strong local community focus with team in conjunction with fire and rescue services made available in stores. It featured members personally supporting their local and the police, such as “Operation Sleep editorials covering issues such as community in many ways, including: Safe” where we provide smoke detectors to sustainability in the built environment, • providing expert advice or hands-on elderly people at risk and the “Safer Cities sustainable timber and wood product support to assist community groups with and Towns” programme to educate procurement and our BSAFE strategy, as DIY projects; communities on topics including fires, well as articles promoting our safety and • acting as collection points and floods and natural disasters. environmental commitments. fundraising for various charities and Through our team of qualified community groups; WEBSITE horticulturalists and plumbers in stores, we • personally taking part in charitable support water conservation by educating Our website (www.bunnings.com.au) events and blood drives for the Red our customers in the benefits of using contains information on our wood Cross; and water-wise products and promoting products policy, an information pack to • sponsoring local children’s sporting government rebate schemes. We actively guide our suppliers towards achieving teams. promote water-wise devices and plants in certification for their timber and wood our store displays, catalogues and products and information to assist We organise community fun day events to promotions. Water conservation themes are suppliers in using our weight marking be held in store car parks, inviting local also presented in our free DIY (Do It packaging icon for heavy products. community groups and emergency services to run displays and activities to assist in Yourself) clinics at stores. Development of our website is ongoing and their fundraising. We have supported the Keep Australia will include further information about our Beautiful Council with the industry operations for the community, including Our team members have donated their own time and skills to actively take part award–winning “Clean–Site” programme environmental, safety and health in supporting many community projects that started in South Australia. This information relating to our business. such as: programme is aimed at the DIY renovator and building trades to encourage good COMMUNITY SUPPORT • conducting workshops for disabled water, waste and litter management at We demonstrate our strong commitment to children and nursing homes; building sites. Funding for “Clean–Site” is the communities in which we operate • painting rooms at children’s hospitals drawn from the plastic bag levy donations through a Community Involvement Strategy and community buildings; we provide to Keep Australia Beautiful. The focusing on local, regional and national programme is to become Australia-wide organisations. • building flower beds and vegetable gardens at primary schools; and we intend to support it through DIY We support many community groups clinics, pamphlets and in-store fact sheets active in health, youth development, • doing makeovers of community facilities; to encourage our customers to become the environment, education and and involved. community welfare. • performing backyard makeovers for During the year, we helped raise funds and needy members of the community. ACTION GROUPS contributed more than $2 million to At each of our warehouse stores free DIY We have continued an open dialogue with various charities and community groups clinics are offered to adults and children. In interested parties in the ongoing throughout Australia. addition, specially coordinated “Ladies implementation of our Timber and Wood National programmes of which we are Nights” are conducted to introduce women Products Purchasing policy. During the year major sponsors include the “Walk to Cure to the world of DIY. we have been provided with information Diabetes”, Bluey Day (fundraiser for from the Greenpeace organisation Children’s workshops are also conducted at childhood cancer research) and schools, community centres and major regarding forest practices in the Asia- Anglicare Angels. Pacific region. community events. At a national level we also take on major Each of our warehouse stores has a sponsorships such as the Clean Beach dedicated activity coordinator with the role Communication Challenge in Queensland, Bunnings of managing store activities and local Fathers’ Day Appeal for the Alfred Hospital community involvement together with a NEWSLETTERS AND REPORTS in Victoria, the Red Shield Appeal in budget and management reporting process. A wide variety of internal communication Western Australia and various children’s We will continue to devote our energy tools were used to ensure that safety and hospital appeals. and expertise to identifying ways of the environment remained front-of-mind In New Zealand, we support “Canteen adding value to the communities in which workplace issues. Bandanna Week”, helping to raise funds for we operate and reducing our impact on A new format of our in-house magazine, support of young people living with cancer. the environment. “Bunnings Banter”, was implemented to With the support of our suppliers we run showcase each store’s activity in relation to special promotions on selected merchandise community and environmental in stores where a percentage of sales over a programmes. Personal messages from our period is donated to selected charitable Managing Director and General Managers organizations. Such events this year promoting safety and community support included Telethon in Western Australia and were also featured. The Shepherd Centre for deaf and hearing impaired children in New South Wales.

16 SOCIAL RESPONSIBILITY REPORT 2004 BUNNINGS

PRIORITIES FOR THE FUTURE

≥ IMPROVE SAFETY PERFORMANCE BY AT LEAST HALVING OUR LTIFR EACH YEAR WITH ZERO LTIS OUR ULTIMATE AIM.

≥ MAINTAIN OUR CONTRIBUTION TO IMPROVE THE SOCIAL AND ENVIRONMENTAL WELLBEING OF THE COMMUNITIES IN WHICH WE OPERATE.

≥CONTINUE THE IMPLEMENTATION OF OUR “BESAFE” SAFETY PROGRAMME, INCLUDING SPECIFIC TRAINING AND HAZARD REDUCTION STRATEGIES.

≥CONTINUE TO DRIVE New energy efficient globes • reduced capacity of globes in SUSTAINABILITY IN OUR GLOBAL and skylights providing service beyond their useful life; TIMBER AND WOOD PRODUCT ambient light inside the • lighting and ventilation system SUPPLY CHAINS. Bayswater warehouse. control faults causing all day ≥ PROGRESS OUR PRODUCT running at full capacity; STEWARDSHIP GOALS, WORKING > • outdoor lighting running after WITH SUPPLIERS TO DEVELOP hours; SUSTAINABLE PRODUCT CHOICES FOR OUR CUSTOMERS, AND • air conditioners left on for extended CONTINUING TO REDUCE PLASTIC periods when not required; and In September 2003 we SHOPPING BAGS USE. commenced a project to • lack of site knowledge in the review our electricity costs operation of store lighting control ≥ PROMOTE OUR SUSTAINABILITY systems. OBJECTIVES TO OUR CUSTOMERS and consumption for all our AND TEAM MEMBERS TO Australian stores. Work to address the issues identified ENCOURAGE POSITIVE above has commenced with an ENVIRONMENTAL BEHAVIOURS IN We engaged an electricity estimated annualised total reduction THEIR ACTIVITIES. management consultant to review our in consumption of 627,257 kilowatt service contracts and tariffs and to hours and 906 tonnes of greenhouse ≥ FURTHER IMPROVE advise on electricity consumption gas emissions across the four stores. ENVIRONMENTAL PERFORMANCE reduction strategies. We intend to apply the lessons learnt AND ECO-EFFICIENCY BY from this trial to other stores as part IMPLEMENTING We compiled monthly electricity usage of our Warehouse Administration RECOMMENDATIONS FROM THE reports that provided the basis of Review project. ENVIRONMENTAL AUDIT AND comparisons across our store REDUCING RESOURCE network, allowing analysis of like We have already begun increasing CONSUMPTION. stores and identification of areas of store level awareness of the benefits excessive consumption. With the new of conserving electricity through a reporting tool we identified specific training programme for area and problems with excessive consumption complex managers which highlighted and specified remedial action. simple and effective controls that could be used to reduce operating Four of our warehouse stores costs and environmental impacts. (Mentone, Epping and Bayswater in Victoria and Midland in Western Australia) were shown to have consumption up to 50 per cent higher than other stores. Technical assistance from electricity suppliers assisted through the provision of site audits which identified common issues such as:

SOCIAL RESPONSIBILITY REPORT 2004 17 Dragline at the Curragh CURRAGH mine, Blackwater, Queensland. > We operate the Curragh open cut mine near Blackwater, 200 kilometres west of Rockhampton in Queensland’s Bowen Basin which produces high quality coking coal exported to steelmakers and steaming coal supplied for domestic power generation. Sales of 6.9 million tonnes LOST TIME INJURY were above the previous year but earnings were below last FREQUENCY RATE

year’s due to lower coal prices and short term inventory 00 01 02 03 04 effects. Production from the Curragh North coal resource 4.9 1.3 1.0 1.0 2.7

is expected to begin ahead of schedule in the first quarter 1 July 99 - 30 June 04 (as at 30 September 04) *Permanent contractor hours and LTIs included of next year. We employ about 280 people.

Overview next 12 months, but if drought conditions continue it may have to be reduced. The main challenge facing our business on The integration of our northern reserves an ongoing basis is the safe operation of NUMBER OF WORKERS our mine in a way that minimises any continued with the completion of an COMPENSATION CLAIMS Environmental Impact Statement and a adverse impact on the environment or the 00 01 02 03 04 local community. draft Environmental Management Overview Strategy. We also negotiated the draft 15 8 5 4 5 In dealing with this challenge, the three Environmental Authority for the proposed main environmental areas on which we Curragh North Mine lease area. Community focused our attention during the year and Cultural Heritage consultation were hydrocarbon management, meetings were held with all relevant monitoring water usage and issues stakeholders. From these meetings we associated with the integration of new compiled a Supplementary Environmental resources into our operations. Impact Statement, in response to Internal audits were conducted on all the stakeholder concerns, and negotiated a hydrocarbon facilities on our site for Cultural Heritage Investigation compliance with legislation. An action Management Agreement and a Cultural strategy was implemented for all of these Heritage Management Plan with traditional facilities to be upgraded and modified to owners and implemented those plans. the Australian Standard. This strategy is The two main safety areas on which we being implemented and managed by our focused our attention during the year operations department. were upgrading of our “New Starter” We continued monitoring our water usage induction package, together with during the year and this was presented on completing and presenting our Five Year a weekly basis to senior management. Refresher Training package, and upgrading Our water allocation is guaranteed for the the fire systems on draglines.

18 SOCIAL RESPONSIBILITY REPORT 2004 www.curraghcoal.com.au 03 04< The Five Year Refresher Training package 2003 REPORT PRIORITIES OUTCOMES was completed in November 2003. The programme consists of a combination of Implementation of an Environmental Not achieved. The Environmental PowerPoint presentation and video Management System. Management System is under presentations. The “New Starter” induction development. was upgraded to a video/DVD and PowerPoint presentation. Components of Achieve zero LTIs. Not achieved. Three LTIs with an LTIFR of 2.7. the training package are now used in the New Starter induction. Continue consulting with our employees to Achieved. Our General Manager addressed continually review and monitor the employees on matters including safety on Upgrading of the fire system on Dragline effectiveness of our Safety Management a regular basis. Review groups discussed 304 commenced in March 2004 and was System. work procedures and made completed in August 2004. The Dragline recommendations for change. 301 upgrade commenced in June 2004 and was also completed in August 2004. Benchmark our Safety Management Achieved. Our Project Isolation Team As part of our ongoing rehabilitation System with other industry leaders with reviewed other companies’ isolation programme, we reshaped 60 hectares of the view to continually improving our procedures and benchmarked our SMS disturbed land and seeded the topsoiled system. against them. area of 60 hectares that was reshaped last year. Review our contractor management Not achieved. We are currently reviewing procedures and develop partnerships. our contractor management procedures to align them with our SMS. BUSINESS Promote health and safety awareness to Achieved. Monthly “Healthwise” magazine MANAGEMENT our employees and the community. sent to employees’ homes. Lectures given to employees and their families by Training Queensland Cancer Fund. Senior First Aid course conducted for employees and their ENVIRONMENTAL families. The environmental induction presentation, which is integrated in our site induction Further development of our Cultural Partly achieved. A Cultural Heritage programme for employees and permanent Heritage Management Plan for all our Management Plan was implemented for contractors, was upgraded during the year operations. the Curragh North project. Approval to to reflect changes in legislation. A new extend it to all other operations expected induction film incorporating an by December 2004. environmental section was also completed. Further development of our plans to Achieved. Several milestones achieved in HEALTH AND SAFETY integrate the northern resources into our the integration process. existing operations. A Five Year Refresher Training programme commenced in November 2003. Topics Upgrade our environmental database. Achieved. A full database system has been covered included the Safety Management installed. System, positive and effective isolation, fire safety and use of extinguishers, mine traffic rules, basic first aid/resuscitation, heat stress, manual handling, working at heights and Fitness for Duty (drugs, alcohol and Members of the mine fatigue). The programme was attended by rescue team during an 109 employees. exercise. Five mine rescue personnel were trained to

become height safety instructors. To attain < the full instructor’s qualification, they had to conduct courses for our employees and all five qualified. An Occupational First Aid course was conducted on site for five warehouse and seven mine rescue personnel in October 2003. Personnel who are required to work in confined spaces must have a current qualification. Confined space training courses and re-certification courses are conducted during the year as required.

SOCIAL RESPONSIBILITY REPORT 2004 19 CURRAGH

mining operations. The exercise was Each new employee or permanent successful in providing the CMT with a contractor who does not have a current realistic environment and interaction with CBM is required to undertake the the police service. assessment. An annual health review is also A six member team placed ninth overall in a requirement for our employees and the Australian Road Rescue Challenge in permanent contractors. Melbourne in May 2004. A seven member Non-permanent contractors are required to team competed in the Townsville Mine have a health assessment as part of the Rescue Challenge in August 2003. induction process. We measure compliance with our alcohol policy through testing of all personnel Compliance entering the mine site on a particular shift. ENVIRONMENTAL This shift is randomly nominated by the We complied with all requirements under General Manager. Personnel attending site our Environmental Authority and we induction are also breath-tested. A total of maintained our Queensland Environmental 21,825 tests were conducted with 66 Protection Agency (EPA) performance positive tests. Category Two status. Everyone attending site induction and all We relinquished two Exploration Permits those completing CBMs are drug-tested. Queensland Cancer Fund for Coal (EPC 603 and EPC 571) during the Random drug testing is carried out via a representative Emily year. Final rehabilitation reports were computer-generated list. Ten tests per Morgan with, from left, submitted to the EPA for the areas covered nominated shift are conducted with the Les Myers, Tim Woltmann, by these permits and the agency conducted shifts being selected by the General Ray Greenwood and Phil audits as part of its sign-off process. Manager. The total number of tests carried out during the year at site inductions was Krueger, participants at We are not aware of any non-compliance 1,349, with 16 positive tests recorded. A the men’s health session. during the year with any other total of 130 random drug tests were environmental legislation or other conducted and nine were positive. > environmental requirements, except as set out below. Those people returning positive results to either alcohol or drugs screening were Re-certification is required every 18 Work is underway as part of our subject to disciplinary procedures which months. Twenty-two employees attended Environmental Management Plan to bring range from counselling to, ultimately, the re-certification courses and 10 hydrocarbon storage facilities up to current dismissal as provided by our Safety employees completed the full course. requirements and to incorporate into the Management System. Special projects, such mining lease an area where waste is as shutdowns, may have additional alcohol Courses covering risk management, discharged from the wash plant. and drug screening. accident investigation and communications were conducted for employees requiring NATIONAL POLLUTANT INVENTORY (NPI) An independent hygiene survey was supervisory skills and 22 attended this conducted in April as required by our SMS. Emissions notifiable under the NPI were training during the year. A cross section of our equipment was tested estimated and data for the 2002/2003 and problem areas identified for action. In May 2004, information sessions for male reporting period was submitted to the EPA in employees on prostate, skin and testicular August 2003. Detailed information is LICENSING AND APPROVALS cancers were conducted by the Queensland available at: www.npi.gov.au by searching for Cancer Fund. During the same week, a the “Curragh Mine” facility. All our substance All environmental licenses are current for Ladies Health night covered topics emissions for last year were ranked by the our mine operations and draft versions of including skin and breast cancers. NPI as “low”. There was an increase in our the Environmental Management Overview Strategy, Plan of Operations and the A two-day Senior First Aid course, exhaust emissions to air last year due to Environmental Authority have been signed conducted by St John Ambulance, was increased hours of operation and further off by the EPA as part of the process of attended by three employees and 11 expansion of our contractor pre-strip fleet. obtaining the mining lease for the Curragh family members. HEALTH AND SAFETY North project. EMERGENCY We are not aware of any non-compliance On 19 November 2003 we undertook a during the year with health and desktop exercise as part of our ongoing safety legislation or other health and training programme for emergency and safety requirements. crisis management and which was designed Although the statutory requirement is for to build on exercises conducted in 2002. tests at least every five years, our The exercise tested our Crisis Management employees and permanent contractors are Team’s (CMT) ability to respond to and deal required to have a Coal Board Medical with an external extortion threat and (CBM) at least every three years. subsequent bomb explosion disrupting

20 SOCIAL RESPONSIBILITY REPORT 2004 CURRAGH

Management ENVIRONMENTAL systems Air ENVIRONMENTAL MANAGEMENT SYSTEM DUST (EMS) We continue to measure dust fall within The development of an Environmental our local area. The region has experienced Management System is currently being severe drought conditions for the past undertaken to integrate the new three years receiving only 54 per cent of development areas into the existing average rainfall. In the past year we operations. This is expected to be received about 60 per cent of our average completed during the next reporting period. annual rainfall. SAFETY MANAGEMENT SYSTEM (SMS) In 20 out of 204 results, monitoring indicated levels above allowable dust The SMS and Standard Operating limits, but we believe these could be Procedures (SOPs) are “living” documents impacted by factors other than mining – that is, changes are made as issues are activities on our site. identified by audit procedures and employee consultative and risk GREENHOUSE GAS EMISSIONS assessment processes. Our direct greenhouse gas emissions during Curragh’s anti-drug policy OTHER/INTERNAL MANAGEMENT the year from sources within our site includes testing of urine boundaries and mining vehicle fuel use SYSTEMS samples taken during were estimated to be 336,956 tonnes of employee induction and as The SiteSafe database allows immediate carbon dioxide equivalent, up 10 per cent recording of incident and injury data. The part of regular random on last year. This figure included 250,480 checks. database is accessed through our intranet tonnes of methane (CH4) emissions. where standard forms are completed on- In addition, our indirect greenhouse gas line by the person recording the incident or, > emissions during the year from imported in the case of an injury, by the site electricity were estimated to be 206,526 paramedic. Relevant information for each tonnes of carbon dioxide equivalent, up incident and accident is recorded and eight per cent on last year (see Figure 1). immediately stored in the database. The only other sources of greenhouse gas Statistical information can be retrieved emissions of which we are aware are from the database to indicate trends and related to waste disposed off-site and fuel problem areas. used by our small passenger vehicle fleet. Our WorkCover-accredited injury and illness Our greenhouse gas emissions are largely rehabilitation policy and rehabilitation due to electricity (approximately 71 per programme are communicated to new FIGURE 1: cent), diesel fuel (approximately 27 per employees at induction. Our rehabilitation GREENHOUSE GAS EMISSIONS cent) and explosives (approximately two (CO2-e TONNES) programme is provided to employees who per cent). have either work or non-work related injuries or illnesses. Our total (direct and indirect) greenhouse ● Diesel 81,749 gas emissions per bank cubic metre A Safety Perception and Fatigue Survey was ● Electricity 206,526 equivalent (BCMeq) were estimated to be conducted in May/June 2004. The survey 5.12 kilograms of carbon dioxide ● Explosives 4,728 results will be progressively presented to equivalent, up eight per cent on last year. ● the workforce beginning in August 2004. Fugitive 250,480

POLICY Our Environmental Policy is displayed prominently in relevant places. The policy is reviewed each year. Our Health and Safety Policy is distributed to personnel, including contractors, at induction and is displayed in prominent places throughout the workplace.

SOCIAL RESPONSIBILITY REPORT 2004 21 CURRAGH

NOISE Our total water consumption per BCMeq FIGURE 2: WATER USAGE (MEGALITRES) Blast noise levels and ground vibration was estimated to be 44.2 megalitres, down levels were recorded during blasting 19.9 per cent on last year. 01/02 02/03 03/04 operations in Pits A, F and G. All monitoring ● Purchased records are retained in the environmental REUSE AND RECYCLING 2,408 3,026 2,611 database and all blasting was within our A full water management system of 22 ● Recycled Environmental Authority limits. retention dams holds the water that is run 3,263 3,313 2,082 off from the Coal Preparation Plant, ● Allocation pumped from the pit area or returned from OTHER EMISSIONS 2,200 3,200 3,220 We are not aware of emissions of ozone- the fine tailings pit. Water from the depleting substances. retention dams is used by the Coal Preparation Plant and for dust suppression We have not yet prepared our report to the on haul roads. Water fill points for trucks NPI for the 2003/2004 reporting period or engaged in dust suppression are located at finalised our data estimates. However, in three of the retention dams. Each water 2002/2003, our three largest emissions truck has the capacity of 80,000 litres. were particulate matter (2,600,000 kilograms to air), oxides of nitrogen (NOx) DISCHARGES TO SURFACE (1,100,000 kilograms to air) and carbon AND GROUNDWATER monoxide (720,000 kilograms to air). FIGURE 3: GENERAL WASTE VOLUMES We had no discharges of water to surface (CUBIC METRES) or groundwater during the year. Water 01/02 02/03 03/04 CONSUMPTION ● Recycled Waste 1,118 1,139.2 1,177 Our main use of water during the year SOLID WASTE related to the processes of coal washing ● General and dust suppression during mining We estimate our total solid general waste 1,167 1,078.9 1,126 operations. stream to be 2,303 cubic metres prior to compaction, up four per cent on last year. Our total water consumption for the year Of this amount, 54 per cent is recycled at a was estimated to be 4,693 megalitres, registered facility and 46 per cent is down 26 per cent on last year. Water used disposed of as landfill (see Figure 3). comprises purchased water (approximately 56 per cent) and reused/recycled water Our total solid general waste disposed of to (approximately 44 per cent), see Figure 2. landfill per million BCMeq was estimated to be 10.6 cubic metres, down 0.3 per cent on last year. < Our hydrocarbon heavy grease and oily soil waste material is a regulated waste (as Kevin Smith and Sara Cooke defined by the Queensland Environmental FIGURE 4: RECOVERED HYDROCARBONS downloading data at the erosion Protection Act) and, accordingly, it is FROM DRAGLINES (KILOGRAMS) catch pits which collect run-off disposed off-site to licensed facilities. This from rehabilitated areas. waste was estimated to be 84,965 01/02 02/03 03/04 kilograms, approximately equal to last year’s ● Total grease and open gear lube used recovered hydrocarbons (see Figure 4). 1101,028 93,085 95,824 Our total hydrocarbon solid waste ● Total grease and open gear lube recovered generation per million BCMeq was 118,965 84,930 84,965 estimated to be 800 kilograms per million BCMeq which is the same as last year despite an increase in production.

LIQUID WASTE Our liquid oil waste is a regulated waste (as defined by the Queensland Environmental Protection Act) and, accordingly, it is disposed off-site to licensed facilities. Our total liquid oil waste was estimated to be 317,300 litres, up 36 per cent on last year due to greater machinery hours as a result of increased production. Of this amount 100 per cent is taken off-site to licensed facilities for recycling (see Figure 5).

22 SOCIAL RESPONSIBILITY REPORT 2004 CURRAGH

FIGURE 5: WASTE OIL REHABILITATION WORKERS COMPENSATION EXPORTED OFF-SITE (LITRES) Since the 1983 start of mining, 3,740 There were five workers compensation hectares of land have been disturbed by claims reported, relating to occurrences 01/02 02/03 03/04 mining and associated activities. during the year, compared with four Waste oil Revegetation commenced in 1988 and 860 last year. 28,000 202,000 317,300 hectares (or 23 per cent of the disturbed land) have now been rehabilitated to care and maintenance levels. Hazard and risk During the year, 120 hectares of land were PROGRAMMES disturbed by mining and associated Hazards are identified and assessed for risk activities and 60 hectares were and appropriate control mechanisms are rehabilitated. put in place to ensure the health and safety of people at the mine. Appropriate training is provided so that employees have the Resource use necessary skills and knowledge to identify Our oil waste taken off-site for recycling ENERGY hazards and conduct risk assessments. was estimated to be 2,988 litres per million Our main use of energy during the year BCMeq, up 32 per cent on last year. related to the operation of our draglines, EMERGENCY RESPONSE We have not included data on oil reused coal preparation plant and diesel As outlined earlier in this report, a desktop on-site in this year’s report due to a meter operated equipment. emergency exercise was conducted to test malfunction. We will include this our on-site emergency response and crisis Total energy consumption was estimated to information again next year. management procedures. be 1,047,405 gigajoules, up 22 per cent on last year. The debrief and subsequent report RECYCLING INITIATIVES outlined areas for improvement which will Our total energy consumption per million Engine coolant continued to be re-filtered be incorporated into both the Emergency BCMeq was estimated to be 9,864 and reused in the mobile equipment Response Procedure and Crisis gigajoules, up 17 per cent on last year. workshop when components were changed Management Plan. on major equipment. Our energy sources are detailed below. We continued to reuse oil waste as a FUEL lubricant at the coal preparation plant. Diesel accounted for approximately 99 per Recovery of scrap steel totalled 868 tonnes, cent of our total energy consumption by up about 12 per cent on last year. gigajoule. Our diesel consumption was 20,962 kilolitres.

Land ELECTRICITY FLORA AND FAUNA Electricity accounted for approximately one We continued flora studies on selected per cent of our total energy consumption sections of the rehabilitated areas to by gigajoule. Our electricity consumption monitor species emergence. The work is was 207 megawatt hours, up from 189 being undertaken by the University of megawatt hours last year. Queensland’s Centre for Mined Land Rehabilitation and will continue for another three years. SAFETY AND

CONTAMINATION HEALTH Contaminated sites continued to be LOST TIME managed in accordance with the Our LTIFR was 2.7 (compared with 1.0 last Environmental Protection Act, including year) and, during the year, there were three regular monitoring. The contaminated sites LTIs. Our Average Time Lost Rate, which include old waste dumps covered by spoil. provides a measure of the severity of such The monitoring included ground water injuries, was 12 (compared with 21 last quality downstream of these sites. year). These statistics include permanent Alan Reid, on restricted Environmental management measures are contractor hours and injuries. duties, inspects the mine in place so that further possible Safety statistics are distributed and fire truck. contamination and harm to the discussed by management each month and environment is minimised. reported to our board every two months. > In December 2003 we awarded 16 employees for 20 years service without an LTI.

SOCIAL RESPONSIBILITY REPORT 2004 23 CURRAGH

Occupational therapy services are provided WEBSITE at the mine on an average of four times a Our website (www.curraghcoal.com.au) month. The occupational therapist reviews includes information about our operations both work and non-work related sprains for the community, including and strains as well as assessing environmental, safety and health workstations and tasks. information relating to our business.

COMMUNITY LIAISON GROUPS We are a corporate member of the STAKEHOLDERS Queensland Resources Council, Fitzroy Basin Association, Greening Australia and Our stakeholders include our employees, the Central Queensland Mine Rehabilitation our customers, our suppliers and other Group. contractors, relevant government agencies, the local Blackwater community in which COMMUNITY SUPPORT we operate and the shareholders of our parent company, Wesfarmers Limited. During the year we supported more than 46 community organisations and events. These During the year the mine's community included health, sporting, education, contact programme was further developed community and cultural activities. through an open day which attracted over Vicki Chopping receiving a 1,100 people. flu inoculation from RESEARCH paramedic Ray Greenwood COMPLAINTS We continue to support several industry at the medical centre. research projects through the Australian No complaints were received by us and we Coal Association Research Programme. We have not been advised of any complaints to > have participated in the rehabilitation the EPA. erosion project for the past 10 years and we are committed to continuing this LIAISON WITH AUTHORITIES project with ongoing financial and in-kind Our site management personnel continue to support. liaise with the relevant authorities which include the EPA and the Department of Natural Resources and Mines for mine site operations. MATERIALS HANDLING AND STORAGE The computer database used to register COMMUNICATION chemicals is Chem Alert. Our employees Our intranet site can be used by employees and contractors are advised about the to access the SMS and SOPs. Job safety system at induction. The database is analysis, work instructions and work accessible via our intranet and is updated < procedures are being added to the site. when chemicals are either approved for use Safety forms taken from the SMS are on site or removed from site. We completed Jasmine Weeden at the included on the intranet for ease of access. a chemical audit in January 2004 in “Our Kids Safety accordance with our SMS. NEWSLETTERS AND REPORTS Messages” display. RISK ASSESSMENT Monthly health and lifestyle brochures are sent to employees’ homes. A risk assessment form is available to all employees and contractors across the Significant milestones, statistics and mine site. The form is designed for ease of relevant information are passed on to use and is used where necessary to do a employees by the General Manager at risk assessment on a task or to perform safety meetings and on notice boards. risk assessments on SOPs. It accords with To promote health and safety awareness AS 4360. among the children of our employees, the Community Projects Officer talked to EMPLOYEE WELLBEING children at the local primary school. After An influenza inoculation programme was the talks, the children were asked to draw a again offered to employees and 79 message for their parents on a tile. These employees had injections. This programme tiles have now been attached to our was carried out by our nominated medical Children’s Safety Wall which is located at adviser who also visited the site during the the entrance to the mine site. All people year to consult with employees and entering the mine from the car park walk management. past the wall.

24 SOCIAL RESPONSIBILITY REPORT 2004 CURRAGH

PRIORITIES FOR THE FUTURE

≥ IMPLEMENTATION OF AN ENVIRONMENTAL MANAGEMENT SYSTEM.

≥ ALL HYDROCARBON STORAGE FACILITIES BROUGHT UP TO CURRENT REQUIREMENTS.

≥ FULLY INTEGRATE THE ENVIRONMENTAL MANAGEMENT OF CURRAGH NORTH INTO OUR SYSTEMS.

≥ACHIEVE ZERO LTI.

≥INTRODUCE A NEW SAFETY CULTURE PROGRAMME.

≥CONTINUE TO PROMOTE HEALTH The strengthening of Inset: Signing the Cultural AND SAFETY AWARENESS TO OUR relationships with the Heritage Management EMPLOYEES AND THE COMMUNITY. traditional owners of the Plan for the Curragh ≥ HELP ESTABLISH A MULTI- area was a very important North development. Rear DISCIPLINARY COMMUNITY part of planning for our left to right: Kevin Smith, HEALTH CENTRE IN BLACKWATER. new northern coal Kim Dale, Lloyd Jensen, ≥ DEVELOP OUR OWN CONFINED resource. Cliff Kina. Front left to SPACE TRAINING PROGRAMME. right: Margaret Kemp, The Ghungalu and Kangoulu peoples relocated to missions and settlements Edna Van Hemmen. elsewhere in Queensland as a result of government policies in the early to mid Main picture: Surveying 20th century. cultural values in the In early 2003 we began a process of Curragh North area. negotiation with representatives of the two groups to discuss how the > planned development of Curragh North might affect their traditional Our approach was one of respect for lands. Meetings were held in Brisbane the rights of the Ghungalu and and Rockhampton and in November Kangoulu peoples and a desire to 2003 about 30 elders visited the area. make the process as inclusive as They were shown the mine possible. The handling of the development plans and what areas negotiations was praised by were likely to be disturbed. representatives of the traditional The negotiation of a Cultural Heritage owners who attended a workshop in Investigation and Management Rockhampton in April 2004 organised Agreement was followed by an by the federal Department of Industry, investigation of the extent of the Tourism and Resources. traditional owners’ interests and finally the signing of a Cultural Heritage Management Plan covering ongoing activities, including designated areas that would not be encroached on as part of the mine’s development.

SOCIAL RESPONSIBILITY REPORT 2004 25 A new dump truck at the Premier mine. PREMIER COAL >

We mine coal at the Premier open cut in Collie, about 200 kilometres south of Perth in Western Australia. During the year we sold nearly 3.4 million tonnes of low sulphur,

low ash steaming coal, primarily to major power LOST TIME INJURY generating stations. We also supply coal for a variety of FREQUENCY RATE industrial and agricultural applications. We employ about 00 01 02 03 04 280 people engaged in overburden removal, coal 17.1 20.8 6.4 0.0 7.0 1 July 99 - 30 June 04 (as at 30 September 04) production, plant maintenance and site rehabilitation. *Contractor hours and LTIs included

The two main safety areas on which we Overview focused our attention during the year were The main challenge facing our business on risk assessments and our Fitness for Work an ongoing basis is the safe operation of education programme. our mine in a way that minimises any We conducted risk assessments for the adverse impact on the environment or the prevention of falls from height and traffic NUMBER OF WORKERS COMPENSATION CLAIMS local community. management. 00 01 02 03 04 In dealing with these challenges, the three The Fitness for Work policy was approved in main environmental areas on which we February 2004 and our consultative 71 60 45 47* 41 focused our attention during the year were committee progressed changes to draft rehabilitation of disturbed land, noise procedures dealing with drug and alcohol management and greenhouse gas and fatigue management. emissions. No additional land was disturbed by mining BUSINESS and associated activities and 22.1 hectares were rehabilitated. A major highlight for MANAGEMENT * We reported a figure of 46 in this report last year, but a claim the year was winning the prestigious relating to last year was received late in 2003. national Banksia Award for Sustainable Development Leadership in the Minerals Training Industry for our sustainability planning, ENVIRONMENTAL management systems and rehabilitation of Environmental training is conducted at former mined areas. induction of new employees, visitors and The management of noise remained a contractors. In addition, our employees key focus area with compliance difficult have undergone a five-hour environmental to quantify. awareness training programme and do other job-specific environmental training. Our total (direct and indirect) greenhouse gas emissions were estimated to be 63,484 HEALTH AND SAFETY tonnes of carbon dioxide equivalent, down seven per cent on last year. Health promotion continued to be a priority in anticipation of a full implementation of

26 SOCIAL RESPONSIBILITY REPORT 2004 www.premiercoal.com.au 03 04< the Fitness for Work regime and as part of 2003 REPORT PRIORITIES OUTCOMES ongoing fatigue management awareness. Prevention of manual handling injuries Full environmental compliance. Achieved, but compliance with noise continued with all new people coming to requirements remained difficult to assess. site instructed in correct manual handling techniques through our induction process. Annual rehabilitation of at least the Achieved. No land was cleared and 22 We also used a physiotherapist to train equivalent of land we clear for mining. hectares were rehabilitated. new apprentices in manual handling and assess workstations for some individuals Value-added rehabilitation and mine Achieved. Our work was recognised with who were experiencing discomfort or closure outcomes. the Banksia Award (see Case Study). strain-related pain. Ensure focus on any community issues or Achieved. We continued with the Education sessions were conducted on concerns with our operations. Stakeholder Consultation Group and other alcohol and its effects, risks, testing, and community meetings programmes. self-assessment, followed by sessions on cannabis and other illicit drugs. These were Review our EMS for improved integration Achieved. New versions of our EMS and conducted by the Western Australian Public with other business systems and to environmental awareness booklets were Health Department’s south west region achieve simplification where possible. completed. alcohol and drugs programmes coordinators. We also conducted a similar Further reduction in greenhouse gas Achieved. 63,484 tonnes of carbon session on alcohol, drugs and fatigue at a emissions. dioxide equivalent, down seven per cent venue in Collie for partners of employees on last year. However, the emission rate and the broader community. per BCMeq was up 10 per cent on last year due to reduced overburden removal. We run a monthly physiotherapy clinic as part of our injury management programme. A target of zero accidents. Not achieved. We had four Lost Time This programme is aimed at musco-skeletal Injuries (LTIs), 26 medical treatment injuries incurred at work and off-site, injuries and 56 first aid cases. ensuring that these injuries are not aggravated and advice is given covering Assess compliance with AS NZS 4801- Achieved. An external audit was issues such as task modification and 2001 Occupational Health and Safety conducted with recommendations for strengthening exercises. Management Systems and improve improvement in a number of areas for Our Fitness for Work regime RiskMap safety system where compliance with AS NZS 4801-2001. implementation is continuing in appropriate. consultation with our employees and union representatives. We have completed Review our safety standards and Partly achieved. A review of some of our education on fatigue, lifestyle and auditing. safety standards and auditing was shiftwork, as well as alcohol and other conducted, including a new standard for drugs. An overall Fitness for Work policy risk assessment and a new draft standard has been approved and procedures are for working at height. being revised. Complete the Fitness for Work regime Not achieved. The Fitness for Work policy Free influenza shots were offered to implementation. was approved, but procedures are yet to employees. Fifty employees (18 per cent of be implemented. Education sessions were our workforce) had the inoculations. conducted on drug and alcohol awareness We reviewed and implemented a revised and general fitness, health and fatigue general safety induction training issues. presentation, the safety induction handbook and assessment for employees, contractors and visitors. as part of the process of allowing EMERGENCY contractors and new employees access to Training was conducted for our new and Our Crisis and Emergency Management site. Department-specific safety inductions existing apprentices in manual handling procedures were tested successfully with a and pit vehicle driver permit procedures and back care, including risk identification, live practice scenario conducted on 7 will be reviewed in the coming year. assessment and control. January 2004. The scenario involved a Training in prevention of falls from height hypothetical coal plant emergency with A review of our general safety induction commenced following the height safety risk casualties and property damage. The was completed and a presentation was assessments. Approximately 85 per cent of objective of the exercise was to test our developed for use by supervisors. The all maintenance employees had completed internal and external responses. External induction content encapsulates all topics training by mid-August 2004. emergency service and internal emergency covered in the previous system and now and crisis response teams were deployed. includes evaluating hazards and assessing We participated in the MineSafe Overall the emergency was handled with risks as well as personal safe working International 2003 mining safety and care and efficiency, but some opportunities behaviours. An assessment of knowledge health conference and workshops in for improvement were identified. Our and understanding has also been developed October 2003. Emergency and Crisis Management

SOCIAL RESPONSIBILITY REPORT 2004 27 PREMIER COAL

Procedures manual was updated to reflect Our mine rescue training involved a number available at: www.npi.gov.au. All our the opportunities for improvement of scenarios including the use of breathing substance emissions for last year were identified during the practice scenario. A apparatus, search and rescue, fire fighting, ranked by the NPI as “low”. advanced first aid, environmental response, further exercise is planned for later in 2004. We have not yet prepared our report to the rescue from height, depth and confined We maintained a level of first aid response NPI for the 2003/2004 reporting period, but space. Part of our training routine also skills amongst our employees by making we expect our levels of pollutants to have requires regular checks of all emergency first aid courses available during work decreased along with reduced overburden and fire fighting equipment. hours. We conducted four on-site one-day removal and the consequent reduction in basic workplace courses training a total of We met with the Collie Local Emergency energy use. Most emissions were either 24 people and sent five employees to off- Management Action Committee (LEMAC) as from the use of diesel or dust generated site occupational first aid courses. The total part of an annual review of the Collie from wind, vehicle and overburden number of people with current first aid LEMAC emergency plan. movement, coal processing and blasting. qualifications stands at 54 (18 per cent of We maintained and serviced all fixed and our workforce). portable fire systems in accordance with the HEALTH AND SAFETY We scheduled 10 one-day training sessions Australian Standards to a high level of We are not aware of any non-compliance for volunteer mine rescue emergency team readiness. Our automatic systems are during the year with health and safety members. These were spaced at monitored 24 hours a day through a system legislation or other health and safety approximately four weekly intervals and which indicates any alarms or faults back to requirements, except as set out below. included people from various departments. our Pit Controller. This year we upgraded the An inspector from the Department of fire evacuation system for our maintenance The membership of our mine rescue Industry and Resources (DoIR) conducted area to enable mine rescue team members emergency team stands at 12 with two new an “Emergency Plan” audit of our site on to be automatically called through a voice team members starting in recent months. For 12 May 2004. A score of 77 per cent was system activated from either the existing members we conducted a two-day given and feedback by the inspector maintenance supervisor’s desk or pit control. team leader’s training course involving our indicates that we are compliant with the team, the Muja Power Station Emergency The emergency evacuation system was department’s audit format and have most Team and the SIMCOA Emergency Response upgraded in our administration building of the elements for a good emergency plan team. As the team members are spread to enable the evacuation signal to be in place. across all shifts, the purpose is to ensure heard outside the building and to The District Inspector of Mines addressed each member can assess, lead and control an include a public address system for our Occupational Health and Safety emergency for any given shift configuration emergency communication. Committee on the duty of care provisions or call on off-shift team members or other of employees, employers and contractors organisations to assist. under the Mines Safety and Inspection Compliance Act 1994. ENVIRONMENTAL We operate and comply with the We are not aware of any non-compliance requirements of the Mines Safety and < during the year with environmental Inspection Act 1994 and Mines Safety and legislation or other environmental Inspection Regulations 1995. During the Kiel Ferguson, Keith requirements, except as set out below. year inspectors from the DoIR visited us and raised a query regarding our heavy We fully complied with licence conditions Davies and Jason Gotte machinery traffic control signage. This was and management plans covering water, during a fire training satisfactorily resolved as we had assessed dust, blasting, forest management, clearing exercise. our mine traffic risks and use a common and rehabilitation. mining safe working procedure called the The management of noise remained a key “priority rule” that sets out right-of-way focus area with compliance difficult to rules for traffic interaction. assess in part because of multiple noise In accordance with regulatory sources. The application to increase the requirements, we continued our Mine existing noise allowance progressed and Workers Health Surveillance programme came into effect on 30 June 2004. The and renewed certification of hearing application was subject to one appeal testing equipment. which was subsequently withdrawn. We are confident that we will be able to confirm All existing and new mine rescue team compliance with the increased noise members were medically and physically allowance next year. assessed and considered fit to continue as team members to the requirements of NATIONAL POLLUTANT INVENTORY (NPI) the DoIR. Emissions notifiable under the NPI were We maintained communication and estimated for substances listed on the NPI. consultation through 10 elected safety and Data for the 2002/2003 reporting period health representatives on our Occupational was submitted to the Department of Health and Safety Committee. Environment (DoE). Detailed information is

28 SOCIAL RESPONSIBILITY REPORT 2004 PREMIER COAL

manage any potential risks through A new regular administration safety procedures for key work activities and meeting group has been formed from those monitoring requirements. The EMS covers who work in the administration and supply our government-approved environmental buildings and areas. Meetings are management programme and extensive scheduled to be held monthly to provide legislative and licence conditions. feedback and a forum on safety issues for those who are based in these areas. Any During the year, a specialist was engaged issues that are not resolved at this group to conduct an independent review of the will be referred to the OHS committee. system with a view to simplification. This resulted in the removal of 53 of the original 88 documents, resulting in a more POLICY procedures-based system. After this was Our Environmental Policy and Safety completed, our first external surveillance and Health Policy remained in place. audit was conducted resulting in ongoing The Environmental Policy was reviewed certification. A number of “areas of during the annual EMS review process. concern” were identified as needing to be It is available on our website at addressed through our corrective actions www.premiercoal.com.au. procedure. The audit report noted strong Environmental management remained one conformance with system requirements for of our highest priorities and we promoted environmental performance monitoring and the development of policies, programmes Dennis Ellis-Smith attaching reporting, management of blasts to new caged crates, specially and procedures for conducting operations minimise noise and vibration impacts on in an environmentally-sound manner. Our designed to lift multiple gas neighbours despite mining moving closer to guiding policy principle is to take cylinders, to a crane. them and environmental inductions and responsibility for minimising the impact of awareness programmes. The report our operations on the environment and we > recommended further work in reviewing acknowledge our accountability to all the dust-monitoring programme against stakeholders. Information about our We audited our safety system standards, the requirements of AS/NZS 3580.9.3:2003, environmental performance is made confined spaces procedures and height managing controlled documents and more available to stakeholders. safety procedures. We have addressed all clearly referencing procedures managed issues arising from these audits. outside of the environmental group in the system procedures. An audit of our chemicals inventory and ChemAlert database was completed and Auditing of environmental procedures updated including a reconciliation of continued, as did monthly environmental Material Safety Data Sheets stored in hard reviews of the site. copy manuals across our site. The As part of our ongoing commitment to the ChemAlert system assists in managing environment, we are a signatory to the dangerous goods and hazardous chemicals Australian Minerals Industry Code for storage and the separation distances of Environmental Management, the < potentially reactive substances. Commonwealth Government’s Greenhouse Gary Giblett in the Challenge programme and the Western LICENSING AND APPROVALS Australian Cleaner Production Statement. simulator used to train truck drivers. Under the Explosives and Dangerous Goods The 2002 independent triennial compliance Act 1961 we continued to maintain a single audit for the Minerals Industry Code licence for our storage of hazardous showed that we perform at the highest materials and dangerous goods. We have a average level for all signatories. comprehensive emergency management plan as required by this licence. SAFETY MANAGEMENT SYSTEM (SMS) We maintain a compliance register of Our SMS is the RiskMap Safety Management statutory approvals, appointments and System made up of 67 standards. licences for specific functions under various Inspection systems have been developed legislation covering our operations. and form part of the weekly routines of our operations departments. Management Our Occupational Health and Safety (OHS) committee meet monthly and review a range systems of topics, programmes and issues. Other ENVIRONMENTAL MANAGEMENT SYSTEM committees such as the Production Safety (EMS) Review group and the Maintenance Safety Review group meet approximately every four We have a certified ISO14001-standard weeks to review and plan their respective EMS which is designed to identify and area’s safety and health activities.

SOCIAL RESPONSIBILITY REPORT 2004 29 PREMIER COAL

FIGURE 1: DUST MONITORING (MICROGM/M3)

94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04

● Daily average (allowable 90microgm/m3 ●) 42.9 52.8 34.3 48 28.7 27.6 39.6 29.9 33.2 38.4

● Daily max (allowable 260microgm/m3 ●) 93.7 97.1 58.4 112.2 69.3 47.9 162.3 63 59 101.3

Premier Coal has encouraged local schools' environmental initiatives through the provision of worm farms, composting ODOUR cent) and electricity consumption tumblers and recycling (approximately 38 per cent). bins such as this one at Spontaneous combustion of coal occurs periodically in the mine and can cause an Our total (direct and indirect) greenhouse Amaroo Primary School. unpleasant odour but there were no gas emissions per bank cubic metre complaints this year. equivalent (BCMeq) were estimated to be > 3.28 kilograms of carbon dioxide equivalent, GREENHOUSE GAS EMISSIONS up 10 per cent on last year due to reduced overburden removal (see Figure 2). We are a participant in the Commonwealth Government’s Greenhouse Challenge In this report last year we calculated ENVIRONMENTAL programme and have signed a Cooperative greenhouse gas emissions using emissions Agreement through to 2005. As part of our factors from an out-of-date version of the participation, we submitted our 2002/2003 Australian Greenhouse Office (AGO) Factors Air report during the year. and Methods Workbook. Whilst this provided a consistency in emission factors DUST Our direct greenhouse gas emissions during used by us year-to-year, it is not how the There were no dust complaints this year. the 2003/2004 year from sources within AGO requests calculations be done and it our site boundary and vehicle fuel use were Dust at our mine is mainly generated on has in fact resulted in a slight estimated to be 39,629 tonnes of carbon roads, dumps and cleared areas and is only overstatement of our greenhouse gas dioxide equivalent, down 12 per cent on a potential problem during the drier emissions in previous years. Calculations for last year. months of the year. Accordingly, monitoring this year, and for last year where is only necessary at those times. Results In addition, our indirect greenhouse gas comparisons are made in this report, have from our monitoring site include dust from emissions during the year from imported been done in accordance with the latest the minesite and external sources. They are electricity were estimated to be 23,855 version (3 March 2003) of the AGO Factors annualised, causing exaggerated levels in tonnes of carbon dioxide equivalent, up 2.7 and Methods Workbook. relation to our stated dust emissions. per cent on last year. Dust levels were well within licence The only other source of greenhouse gas NOISE conditions with a daily average level at emissions of which we are aware is related There was one complaint during the year nearby Buckingham of 38.2 microgrammes to burning of residual forest waste after for general mine noise. Our equipment per cubic metre, up slightly on last year and harvesting in the clearing process and as noise levels have not increased, even the daily maximum of 101.3 microgrammes we are unable to reliably estimate the though the operations have moved closer per cubic metre, up due to a source external quantity of these emissions we cannot to our neighbours at Buckingham. to our operations (see Figure 1). estimate associated greenhouse gas Blasting improvement strategies continued emissions. Consequently, we have also not Management strategies included minimised to deliver a strong performance and we included carbon credits associated with our clearing and rapid rehabilitation when were able to achieve a low triggered rehabilitation of cleared land. possible, tar sealing major road arteries and blasting level average of 102dB(L), with no application of water to suppress dust on Our greenhouse gas emissions were largely blast exceeding the legal limit of 125dB(L) roads and operational areas. due to diesel usage (approximately 61 per (see Figures 3 and 4).

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FIGURE 2: TOTAL CO2 EMISSIONS FIGURE 3: PREMIER MINE BLASTING BUCKINGHAM MONITOR BY SOURCE (TONNES) 02/03 95 96 97 98 99 00 01 02 03 04 ● Electricity 22,133 Total Numer 70 165 262 271 261 349 477 596 547 559 ● LPG 102.6 Not triggered 27 49 149 191 197 297 299 443 353 377 ● Petrol 106.1 Number <115 64 149 242 261 254 343 455 586 541 550 ● Diesel 39,889.6 % <115dBL 91.4 90.3 92.4 96.3 97.3 98.3 95.4 98.3 98.9 98.4 ● Spontaneous combustion 1,416 Average dBL 110 106 106 106 101 102 102 101 104 102 ● Explosives 414.1 FIGURE 4: CONSUMPTION PREMIER MINE BLASTING Our main use of water during the year related to dust suppression (94 per cent of Buckingham Griggs abstraction used by us) and process water <125dBL 100% 100% (5.5 per cent). <120dBL 100% 100% We estimated our total water consumption <115dBL 98.4% 100% for the year to be 525 megalitres, down 12 per cent on last year. Ave dBL when triggered 102 114 Our total water consumption per BCMeq Total blasts 559 559 was estimated to be 27 litres, up four per Not triggered 377 558 cent on last year. Our only water source was groundwater abstracted through bores. The highest recorded blast was 118.8dB(L) WATER while 98.4 per cent of the blasts were Dewatering is required for safe and REUSE AND RECYCLING below 115dB(L). There was a two per cent efficient mining in the Collie Basin. In the maintenance and fuel bay area we increase in the total number of blasts to have a Dissolved Air Flotation (DAF) plant All groundwater abstraction, a part of the 559 and the number of blasts not installed to treat run-off and vehicle wash dewatering process, is licensed and triggering the monitor, set to trigger at down waters if required. The flotation monitored. During the year, 9.5 megalitres 115dB(L), increased by seven per cent. system remained off-line during the year as per day were pumped with a total The blasts triggering the monitor were the silt traps and oil skimmers produced abstraction of 3,478 megalitres largely at the eastern end of Pit 1 which adequate quality water. is closer to the monitor and our (see Figure 5), down nine per cent on last neighbours at Buckingham. year. Of this total, 2,953 megalitres was The main infrastructure area was serviced sent to local power stations – the major for sewage by a treatment plant with There were four complaints for blasting on users in the area – thus helping to reduce treated water available for garden our site for blast levels ranging from overall abstraction in the Collie Basin. reticulation during drier periods. 103.7dB(L) to 109.9dB(L). We are committed to making good any loss Independent building condition surveys are of water suffered by our neighbours. To on offer to all nearby neighbours, but to date, dewatering at the mine has not date no survey has attributed structural affected groundwater levels near private defects to our blasting. land or dwellings in the area. OTHER EMISSIONS FIGURE 5: WATER ABSTRACTION We are not aware of emissions of ozone- depleting substances. 94 95 96 97 98 99 00 01 02 03 04 As previously mentioned, we have not yet Megalitres 14,876 6,513 4,737 3,265 2,384 3,085 2,681 4,411 4,547 3,821 3,478 prepared our report to the NPI for the 2003/2004 reporting period. However, in 2002/2003 our three largest emissions were particulate matter (1,400,000 kilograms to air), oxides of nitrogen (520,000 kilograms to air) and carbon monoxide (230,000 kilograms to air).

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FIGURE 6: WATER DISCHARGE to help drive the Collie Tidy Towns Programme which was successful in 94 95 96 97 98 99 00 01 02 03 04 winning the state Tidy Town Award for 2003 and the Australian Environmental Megalitres 5,456 3,351 2,274 556 98 61200000 Innovation Award. FIGURE 7: WATER QUALITY Land 98 99 00 01 02 03 04 FLORA AND FAUNA pH 3.5 3.9 4.06 3.75 3.7 3.4 4.0 Protection of surrounding forests remained Fe 0.6 1.8 1.93 3.65 10.6 16.96 1.47 a priority and clearing operations were Total BCM equivalent 21.10 23.45 32.2 32.26 28.26 22.88 19.31 minimised as much as possible. Prior to clearing, operational areas are FIGURE 8: REHABILITATION (HECTARES) mapped to determine dieback boundaries. Our procedures for clearing, topsoil 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 removal/replacement and land ● Clearing rehabilitation minimise the risk of 22 44 2 36 41 211 269 129 104 156 87 99 44 21 0 spreading jarrah dieback. Infected soils are kept separate for application only in areas ● Rehabilitation 42 33 14 34 41 104 0 50 38 116 0 0 192 187 22.1 with minimal risk of disease spread. Disturbed land is returned to stable, compatible bushland by using local native seeds and trees. Habitat logs are placed in rehabilitation areas to promote recolonisation of native fauna. Regular inspection and permanent monitoring plots identify improvement opportunities and ensure successful uptake. Faunal surveys of our rehabilitation sites are designed to assess small to medium- sized mammals, frogs, reptiles and birds. DISCHARGES TO SURFACE AND for general waste improved by one per cent The rehabilitation is showing good GROUNDWATER to 89 per cent, just short of our target of recolonisation providing habitat for a range 90 per cent. of representative vertebrate species. We were licensed to discharge water off- Research continued to assess the suitability Our total solid waste to landfill per million site to the environment, but again we did of birds as bio-indicators of rehabilitation BCMeq was 37 cubic metres, up six per not do so during the year (see Figure 6). success. Research into success factors for cent on last year. Despite the zero discharge, we continued to the rehabilitation process was completed monitor adjacent river systems and and a final report is expected next year. maintained a computer database and LIQUID WASTE management system for water quality, (see Hydrocarbons were our main liquid waste CONTAMINATION Figure 7) abstraction, discharge and and these were captured by evacuation No significant site contamination has regional waterway monitoring. systems or the DAF plant. This waste was been identified. Overflow from Sump A was 814 megalitres transported to a local recycling plant where with a further estimated 98 megalitres it was used mainly in the production of REHABILITATION diverted around the sump during low-grade oils or fuel oil. A total of 209,200 litres was recycled, up seven per Since the 1950 start of mining, 2,618 maintenance. This flow was captured in the hectares of land have been disturbed by WO-5H void as part of the rapid fill cent on last year. Oil filters were also taken for recycling. mining and associated activities. programme. Revegetation commenced in 1975 and 1,232 Our total hydrocarbon waste capture per hectares (or 47 per cent of the disturbed million BCMeq was 10,836 litres, up 27 per land) have now been rehabilitated. Waste cent on last year. During the year, no additional land was SOLID WASTE RECYCLING INITIATIVES disturbed by mining and associated Our total solid general waste stream (not activities and 22.1 hectares were As noted above, our main waste streams - including scrap metals and tyres which are rehabilitated (see Figure 8). separated for recycling) was estimated to including used oils, metal scraps, cardboard, Successful rehabilitation work requires the be 718 cubic metres prior to compaction, paper, tyres and batteries - were all careful planning and interaction of essentially the same as last year. Of this recycled. numerous processes. A key to our success is amount, 45 per cent (down one percent on Recycling was promoted through the correct waste rock management with last year) was recycled and 55 per cent provision of bins at work for employees’ materials likely to generate acidic disposed of as landfill. Recycling efficiency domestic requirements. We also continued

32 SOCIAL RESPONSIBILITY REPORT 2004 PREMIER COAL

conditions buried deep in the dump or hectares and should be well suited to water OTHER MATERIALS sports such as skiing and rowing. backfill profile. Final dump surfaces are Explosives were a major consumable The potential economic development is covered with a one-to-two metre blanket with 2,390 tonnes used during the year, currently subject to a detailed study and of inert material and spread with topsoil an increase of 32 per cent on last year. design by the Lake Kepwari Working Group. ready for revegetation. The increased use of explosives reflected an Rehabilitation at the closed Western 5 Any recreational development in this area effort to improve shovel efficiencies mining area in the Cardiff Sub Basin will complement the Collie Motorplex by blasting. which is now an established driver-training continued with 30 hectares undergoing The overall powder factor increased from and club motor sports centre. Based at the shaping to slopes of around 10 degrees in 0.15 kilograms per BCM last year to 0.19 former Western 2 underground mine site, preparation for capping, topsoiling and kilograms per BCM this year, a 27 per cent the Motorplex has successfully built upon installation of contour drainage. increase. Powder factor is the ratio of the existing mine infrastructure including In-fill planting at Western 5B was weight of explosives used to blast a unit workshops, other buildings and an undertaken with seedlings raised by the of material. extensive road network suitable for racing local Aboriginal Ngalang Boodja Nursery. and training. Local school children assisted as part of National Tree Day. Rapid fill of the WO-5H void also SAFETY AND continued with the level raised a further Rapid fill of the WO-5B void continued 3.7 metres, compared with a rise of 3.2 HEALTH with the programme designed to increase metres last year. However, the temporary safety and enhance the final rehabilitation LOST TIME use of the lake as a water source for outcome. A further 3,976.8 megalitres of Our LTIFR was seven (compared with zero Western Power over summer and the water were diverted raising the lake level last year) and, during the year, there were effect of evaporation and leakage resulted by 3.8 metres – to just one metre short of four LTIs. Our Average Time Lost Rate, which in little net rise. New research at this site full. Evaporation and leakage resulted in a provides a measure of the severity of such into aquaculture as a relinquishment net rise of three metres. Diversion has injuries, was 18.5 (compared with zero last option began to further assess economic assisted acidity control considerably and it year). These statistics include contractor viability and test a new fluidised bed is expected that, when full, the void will hours and injuries. stabilise at above 5pH – an acceptable level limestone treatment system. for active water sports. This programme has Safety statistics were distributed and reduced the natural fill time of 100 years discussed by management each month and down to five years, expediting the Resource use reported to our board every two months. availability of the area which has a high ENERGY After an LTI-free year last year, we continued potential for other valuable purposes such into this year with a record total of 425 Our main use of energy during the year as tourism, recreation and aquaculture. The consecutive days LTI-free. We arranged for all related to diesel for mobile plant and lake will have a surface area of 103 our employees and contractors to celebrate electricity for pumps, shovels and lighting. this achievement with our senior < Total energy consumption was estimated to management. Our Production Department be 612,988 gigajoules, down six per cent achieved a record 774 days without lost time University student Tristan on last year. injury to March 2004, bettering their previous Derham checking water Our total energy consumption per million record of 174 days. monitoring equipment on BCMeq was estimated to be 31,753 All safety incidents were discussed at a a rehabilitated open cut gigajoules, up 11.8 per cent on last year. weekly Hazard and Incident Review meetings mine site. Our energy sources are detailed below. to ensure investigations and follow-up actions are completed. FUEL WORKERS COMPENSATION Petrol and diesel accounted for approximately 87 per cent of our total There were 41 workers compensation claims energy consumption by gigajoule. Our reported, relating to occurrences during the petrol and diesel consumption was 43.5 year, compared with 47 last year. kilolitres and 13,797 kilolitres, respectively. A regular review of all injury claims was conducted with our insurers to assess ELECTRICITY progress on outstanding claims and any Electricity accounted for approximately 13 injury rehabilitation plans. On-site injury per cent of our total energy consumption management clinics were held to assess by gigajoule. Our electricity consumption ongoing musco-skeletal injuries. was 21,445 megawatt hours. We continued to use the services of rehabilitation and vocational GAS service providers. LPG accounted for less than one per cent of Our Occupational Health Nurse is accredited our total energy consumption by gigajoule. to WorkCover Western Australia as a workers Our LPG consumption was 67.2 kilolitres. compensation and rehabilitation coordinator.

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Hazard and risk MATERIALS HANDLING AND STORAGE A register of hazardous substances and PROGRAMMES dangerous goods is maintained and audited Hazards and incidents were captured within annually. Any new chemicals are reviewed our Hazard and Incident Reporting system. and assessed prior to being allowed on-site. All hazards and incidents were reviewed Material Safety Data Sheets for each of our with investigation outcomes and actions hazardous substances and dangerous goods recorded in our Human Resources items are maintained and available through Information System. Any current reports the Chem Alert Material Safety database. and outstanding actions were reviewed twice weekly to monitor progress. RISK ASSESSMENT Our RiskMap standards specify the We updated our RiskMap Safety Standard minimum requirements of our safety Risk Assessment to improve the risk rating systems. A risk register has been developed matrix. This allows the value of the using a rating system that identifies likelihood and consequences to be extreme and high-rated risks and for control numerically rated for ease of prioritising all and reduction of each identified hazard. our identified risks, so that the risks can be addressed in order of priority under a risk Departmental safety audits are conducted reduction plan. on a regular basis. We conducted a comprehensive risk Steam locomotives Our fire detection and suppression systems assessment and control process for our operating at Whiteman and equipment are regularly serviced, production area’s haulage traffic checked and maintained. Park, Western Australia, management system. This was a team- are powered by coal We have evacuation signalling systems in based approach aimed at eliminating any donated by the our main buildings and switch rooms. areas of concern where heavy vehicles and Procedures for raising the alarm are part of smaller vehicles interacted. There have been Premier mine. our induction and safety meetings feedback. no significant incidents, but traffic interaction has some significant inherent > risks which need to be clearly identified. Some 42 intersections have been assessed and most have been assessed as having a will be conducted to finalise the low risk. Eight high priority risks were selected arrangements and to assess any identified and controlled through effective other requirements. risk reduction and control methods. A risk management plan was developed and EMPLOYEE WELLBEING reviewed by the OSH committee with a We have health monitoring and promotion < copy forwarded to the DoIR. programmes in place to ensure our Another major risk assessment process workforce is assessed and educated about Halina Spice checking Bill conducted was for the prevention of fall of health issues. Clazie’s blood pressure at persons from height. There have been no Our health promotion during the year the mine's occupational significant incidents, but our maintenance continued focusing on strain injury health facility. personnel regularly conduct their work at prevention, our Fitness for Work policy, height on heavy machinery and plant. weight loss and a smoke-free environment. Again, a team-based risk assessment Blood pressure, cholesterol and diabetes process was conducted involving supervisors checks were also offered as part of the and safety and health representatives from federal government’s awareness campaign the maintenance department. Training on adult diabetes. began on height safety issues and feedback The HealthMap medical and fitness has been received from employees exposed assessment programme continued to be to these risks. offered to employees involving local We also completed risk assessments of our medical practitioners and a physiotherapist main access road into the mine, as well as providing free confidential “snapshot” the South Shotts River Road access as reports of health status. Employees can construction on the Coal Handling Plant either attend the HealthMap sessions on nut coal extensions began. site or visit their own doctor. Employees A review process and risk assessment assessed as being overweight were given commenced on the relocation of the the opportunity to participate in weight- production offices and heavy machinery loss group meetings at the Occupational parking area and future administration Health Centre. of heavy vehicles in-pit for operator ACCESS Counselling conducts our Employee shift changes and breaks. Further sessions Assistance Programme which is available to

34 SOCIAL RESPONSIBILITY REPORT 2004 PREMIER COAL

employees and their immediate family. This health and safety committee visited our mine is a confidential service aimed at resolving and various south-west mining operations, or assisting with personal issues that may examining their safety and health have an impact on work. programmes. This was a reciprocal visit following the successful south west region Diabetic risk assessments were conducted occupational health and safety committee's for operators. visit to Kalgoorlie in March 2003. As part of National Diabetes Week we We also hosted several tours for arranged for a series of health awareness government agencies such the DoIR and sessions aimed at men’s health and a the Department of Environment. series of education sessions on lifestyle, particularly weight control, nutrition and exercise. ACTION GROUPS We are a member of the Local Emergency We commenced issuing a small publication Management Action Committee (LEMAC), called the “Premier Coal Health and which is part of the Police and State Lifestyle Newsletter” with our quarterly Emergency Services plans. Each year LEMAC internal magazine the “Premier Post”. The reviews the emergency services plan for the “Health and Lifestyle Newsletter” is another Collie region. tool to raise awareness on being and staying healthy, at work, at home and We are represented on various committees during leisure and recreational activities. It of the Chamber of Minerals and Energy, The Collie Tourist Railway provides plenty of useful information from the executive to subcommittees, benefited from funds raised including regular articles on fitness, allowing us to participate in discussion of by Premier’s Safety nutrition, exercise, alcohol, use of issues concerning the mining industry in Committee. Patrick Warrand, medications, interpersonal skills and other Western Australia. An important aspect was General Manager Operations informative articles on maintaining physical participation in the south-west region (far right) presented a and mental health. occupational health and safety committee. This committee hosts educational cheque to members of the conferences as well as emergency skills railway committee. COMMUNITY competitions between local and regional mining companies. > STAKEHOLDERS We were also represented on the Chamber’s Our stakeholders include our employees, our During the year, we hosted several mine conservation and land management customers, our suppliers and other visits including school groups and committee, the Collie Coal Mines contractors, relevant government and international delegations. Environmental Committee, the South-West non–government agencies, the local Collie Environmental Forum, the Environment and Our intranet makes available to employees community, local schools, and the Natural Resource Management Committee, information, including environmental and shareholders of our parent company, the Collie River Salinity Recovery safety standards and procedures. Wesfarmers Limited. Committee, the Collie River Restoration We began a quarterly publication for FEEDBACK/COMPLAINTS Group and the Western 5 Working Group. employees called “Premier Coal Health and Lifestyle Newsletter” as part of our focus We received five complaints for the year, on keeping our ageing workforce healthy down from 11 last year. Four concerned Communication and fit. blasting and one related to general mine noise. NEWSLETTERS AND REPORTS WEBSITE We report annually to a consortium of We respond to all complainants in writing Our website (www.premiercoal.com.au) and, for more serious issues raised, we government departments through the Collie Coal Mines Environmental Committee. includes information about our operations conduct an internal investigation. for the community, including Information on issues and achievements environmental, safety and health LIAISON WITH AUTHORITIES was distributed in our quarterly publication information relating to our business. We have a senior manager to liaise with all “Premier Post” which was sent to all authorities to ensure that relevant employees and contractors and was widely LIAISON GROUPS distributed throughout the community. government agencies are kept informed of We have a Stakeholder Consultation Group progress on existing issues and any new We also distributed to all employees and to provide a strong community interface issues which arise. on-site contractors a summary of and improve community awareness and The DoIR District Inspector of Mines visited operations through an email and mail-out involvement. This group provides the mine and met statutory managers, called “Fortnightly Focus”. This aims to keep assessments of this report – in particular safety and health representatives, and employees and contractors up to date with the scope, clarity, design and ease of safety, health and training staff. key performance areas such as safety and information access – and feedback on any the environment. community concerns with current and Ten members of the Chamber of Minerals planned operations. and Energy eastern region occupational

SOCIAL RESPONSIBILITY REPORT 2004 35 PREMIER COAL

tourism projects, local welfare and essential lakes. This programme is essential for service groups and schools. Because of our defining beneficial end uses and attracting excellent safety performance, $26,922 was capital developments. contributed by the fund to the Collie We have a seven-year, $100,000 a year, community. This was in addition to $35,361 commitment to the Cooperative Research as direct community contributions. Centre for “Coal in Sustainable Development”. Work being done under this COMMUNITY SUPPORT project by Curtin University of Technology A group of seven University of Western involves achieving better environmental Australia medical and dental students and greenhouse performance through visited our mine in March as part of the efficiency and waste management University’s “Rural Week”. The students improvements. were part of a larger contingent visiting other facilities in the Collie district to make SCHOLARSHIPS them aware of health issues and facilities Each year we provide tertiary scholarships available in a country community. The aim such as the J A Ellis Scholarship and is to interest students in future career specific university scholarships. opportunities in Western Australian country locations. Each student group had to Our scholarship at Curtin University submit a case study as part of their first supports postgraduate research into birds Premier Coal, the Ngalang year placement. as bio-indicators in the jarrah forest in south-west Western Australia. The study is Boodja nursery and the The Schools Compact for Education near completion and covered a range of Amaroo Primary School Excellence developed last year for local forest types including pristine, logged, celebrated National Tree schools has been taken up by Amaroo burnt and dieback-infested as well as Primary School. The aim is to deliver Day by planting thousands rehabilitation areas on our mine site. of seedlings to assist mine improved education opportunities for site rehabilitation. children through identification of areas of Our scholarship at the University of special need, projects that can support the Western Australia supporting research into > school curriculum, business and school soil and plant factors which impact on interaction, programmes to inspire and rehabilitation success was completed. encourage gifted students and to support We also sponsored the Joe Lord Memorial During the year the Stakeholder Group and assist disadvantaged students to Scholarship at the Minerals and Energy raised some good suggestions for the report achieve their full potential and meaningful Research Institute of Western Australia including a better introduction to the work experience. which supports research for the mining operation and the release of a Work on the assessment of a future industry. Premier Coal-only version. Both ideas were industrial park at Shotts near Collie We provided work experience to 17 high accepted. The group was advised of a continued. This has the potential to school and TAFE students from the south- proposed char plant development which did encourage business development as well as west region and paid vacation employment not raise any major concerns other than a a far more efficient utilisation of the to 17 tertiary students. request to seek opportunities for local energy produced by local power stations We also provided student awards for the content during construction. The group and our coal products. The project has local high and primary schools. advised us that Collie would benefit from attracted government funding through the greater public access to the mine by South-West Development Corporation and During the year we employed 15 tourists and we have committed to working LandCorp and we have provided the apprentices ranging from those in the first with the local tourist bureau to allow necessary land for future development. year to those in the fourth year of their groups to visit. indentures. Regular meetings are also held with local RESEARCH residents at which we provide general We continued to help run the Collie Centre AWARDS information as well as detailed of Excellence in Sustainable Mine Lakes We were successful in the national Banksia environmental performance data. The through funding and management support. Awards, winning the category “Sustainable Development Leadership in the Minerals Buckingham community meetings provide a The aquafarm at our former Western 5H Industry”. valuable opportunity to discuss their mine site is being used for further research concerns and suggestions. on production of marron and silver perch. It Participation in various committees, noted also will provide a base for long-term earlier, provides a regular opportunity to teaching and as a research centre for the liaise with a wider audience. local TAFE and the Centre of Excellence in Sustainable Mine Lakes. Monitoring of the Under our Safety Voucher fund a proportion Western 5B lake (Lake Kepwari) continued of safety financial incentive awards as part of the Centre’s research into managed by employees, contributed to developing a predictive model for water community projects. Beneficiaries this year quality and ecological development of mine included youth support, heritage and

36 SOCIAL RESPONSIBILITY REPORT 2004 PREMIER COAL

PRIORITIES FOR THE FUTURE

≥ FULL ENVIRONMENTAL COMPLIANCE.

≥ PROGRESS REHABILITATION OF MINED AREAS.

≥ VALUE-ADDED REHABILITATION AND MINE CLOSURE OUTCOMES.

≥ ENSURE FOCUS ON ANY COMMUNITY ISSUES OR CONCERNS WITH OUR OPERATIONS. Dusk at Lake Kepwari, ≥ REVIEW OUR EMS FOR IMPROVED INTEGRATION WITH OTHER a rehabilitated mine site. BUSINESS SYSTEMS. BANKSIA AWARD Kepwari is an Aboriginal 2004 SUSTAINABLE word describing a water ≥ REDUCE GREENHOUSE GAS DEVELOPMENT playground. EMISSIONS LEADERSHIP ≥ A TARGET OF ZERO ACCIDENTS. > Sustainability planning at ≥ COMPLETE OUR FITNESS FOR WORK REGIME IMPLEMENTATION. our mine has resulted in a A long history of mining in the Cardiff strong environmental Sub-basin left a legacy of three ≥ COMPLETE THE REVIEW OF OUR performance as well as underground and four open cut mines RISKMAP SAFETY STANDARDS AND imaginative and innovative involving a total land disturbance of AUDITING SYSTEMS. nearly 1,000 hectares and a bill of $13 rehabilitation options. This million to rehabilitate. was recognised when we We took on the challenge to not only won the prestigious rehabilitate according to government nationwide Banksia 2004 requirements, but to provide a positive Award for Sustainable legacy through development of Development Leadership in community assets that will add value the Minerals Industry. for future generations. Engagement of the community and government was a We have been successful in improving vital challenge to the successful environmental management, transition from rehabilitation projects substantially reducing greenhouse gas to community or on-going commercial emissions over the last five years, ventures. These projects are: developing innovative community-based • a Recreation and Conservation rehabilitation programmes, Lakes Development based on the establishing stronger links with the old Western 5 open cut mine community and improving public access suitable for water sports, to our information and activities. aquaculture and freshwater fishing; Our community-based programmes • a Driver Training and Motorsports are to convert several former mining Development at the Central Services operations into valuable community Area, used previously for assets, going well beyond compliance underground mining, essentially a requirements and setting new industry large “recycling” project with mine standards. Apart from the creation of roads, offices, workshops and other economic benefits and regional facilities given a new role in motor employment, we have shown that sports and driver training; and industry can establish assets of lasting social, economic and environmental • a freshwater aquaculture farm at value at the completion of mining. the former Western 5H mine site to research, develop, support and encourage a budding aquaculture industry in the region. The aquafarm had its first harvest of marron and silver perch in December 2003.

SOCIAL RESPONSIBILITY REPORT 2004 37 Kleenheat bulk driver Ian Coxon refuelling at a service station in Pearsall, KLEENHEAT GAS Western Australia. > We are a major distributor of liquefied petroleum gas (LPG) to a broad range of domestic, commercial, forklift, autogas and industrial customers. We operate in all mainland states of Australia through a network of depots, company-operated branches, commissioned agents, LOST TIME INJURY FREQUENCY RATE dealers and franchisees servicing more than 9,500 bulk, 00 01 02 03 04 191,000 domestic, 8,500 forklift and 1,500 Kwikgas 2.3 3.8 6.2 1.4 0.0

customers installations. Other activities include a 1 July 99 - 30 June 04 (as at 30 September 04) liquefied natural gas plant at Kwinana in Western *Contractor hours and LTIs included Australia and an LPG distribution facility in Bangladesh. We employ more than 500 people. Overview NUMBER OF WORKERS The main challenge facing our business on Energy audits undertaken at the Niddrie COMPENSATION CLAIMS an ongoing basis is the safe operation of office in Victoria and the Kwinana terminal 00 01 02 03 04 our sites in a way that minimises any identified opportunities for improving adverse impact on the environment or the efficiency. 46 39 59 49 60 local community. The two main safety areas on which we In dealing with this challenge, the three focused our attention during the year were main environmental areas on which we emergency and crisis management planning focused our attention during the year were and driver safety. training employees in the environmental Both our Emergency and Crisis benefits of LPG compared with other fossil Management plans were reviewed during fuels, undertaking scheduled asbestos the year. No emergency response exercises inspections to comply with National were held during the year. Occupational Health and Safety Commission guidelines and investigating Defensive driver training for 138 of our measures to improve energy efficiency. passenger vehicle drivers was conducted. Each all day training session was run by the Training in the environmental benefits of Driver Training and Education Centre and LPG compared with other fossil fuels was focused on both theory and practical provided to 102 employees during the year. elements of driver safety. Scheduled asbestos assessments were We achieved a zero Lost Time Injury undertaken at Camellia in New South Frequency Rate (LTIFR) for employees and Wales, Pinkenba in Queensland, Kwinana contractors and this was a highlight of the and Myaree in Western Australia and Deer year’s safety performance. Park in Victoria.

38 SOCIAL RESPONSIBILITY REPORT 2004 www.kleenheat.com.au 03 04< BUSINESS 2003 REPORT PRIORITIES OUTCOMES MANAGEMENT Train our employees in the environmental Achieved, with 102 employees receiving benefits of LPG. the training during the year.

Training Continue the asbestos management Achieved. Scheduled site assessments have ENVIRONMENTAL programme. been carried out. Environmental awareness training and Further progress the Health, Safety and Achieved. The plan was reviewed and separate environmental benefits of LPG Environmental improvement plan. upgraded in December 2003 and continues training is delivered to new employees as to be progressed. part of the new two day induction programme. The first two day session was Zero Lost Time Injuries continues to be Achieved. LTIFR of zero. held in April 2004 with 48 participants. our target with an annual reduction of at The environmental awareness training least 50 per cent in our LTIFR. covered statutory obligations, key environmental management practices and Implement Fitness for Work policy. Not achieved in the reporting period. environmental incident reporting Fitness for Work policy implemented on 1 requirements. The “Environmental Benefits July 2004. of LPG” training provided detailed explanations of environmental advantages of LPG compared with other fossil fuels. EMERGENCY This training was delivered to another 54 We conducted training to assist in employees across Australia. responding to media inquiries during an Spill management training was given to emergency. This training was provided by drivers in eastern Australia when their spill an external consultant for 17 employees. kits were issued. Both our emergency and crisis management Information on minimising fuel plans were reviewed. Issues such as up to consumption in our heavy vehicle transport date contacts and training were identified fleet, to reduce environmental impact, has for action. It is envisaged that the National been included in the “Professional Operator Emergency Response Communications - Heavy Vehicle Driving” course that was System and crisis management teams will developed this year. This training will be be given training by an external consultant rolled out to heavy vehicle operators in the next year. coming year. HEALTH AND SAFETY Compliance The two day induction programme in April ENVIRONMENTAL 2004 also included an overview of our business units by senior managers, Any changes to environmental legislation in emergency response and safety audit the states and territories in which we preparation. A site inspection was also operate are monitored through a company Alan Meager and Melanie conducted at our Deer Park gas terminal in that specialises in environmental law. The Squire at an induction Victoria as part of the induction process. company notifies us of any changes and seminar in Melbourne. has a website containing current As part of the requirements of the Safety environmental legislation. The annual > Report development process for our environmental survey was completed for Pinkenba gas terminal, 140 general and each of our sites. The results of the survey driver contractors were inducted during have been used in generating some of the the year. data for this report. To assist our employees to select internal We are not aware of any non-compliance to pump the sewage to the landowner’s and external training courses to further with environmental legislation or other adjoining property where it could be their career, we created a training course environmental requirements, except as set treated in an existing system. However, the register. out below. landowner has decided against this option Defensive driver training for 138 of our The malfunctioning Pinkenba site septic and we now expect to have a septic system passenger vehicle drivers was conducted. system referred to in last year’s report operating on our site by December 2004. Each all day training session was run by the resulted in an overflow during the year A review of truck washing and cylinder Driver Training and Education Centre (a which was reported to the Queensland washing water discharges will be specialist driver training provider) and Environmental Protection Agency (EPA). undertaken over the next year to determine focused on both theory and practical Various options for management of the whether we comply with local regulations. elements of driver safety. Further details site’s sewage have been investigated. Operational changes or upgrades will be are included in the Case Study on page 45. Discussions were held with the landowner undertaken where required.

SOCIAL RESPONSIBILITY REPORT 2004 39 KLEENHEAT GAS

system directly relating to the Swan Hill requirements. The system is reviewed on an terminal. We are working to comply with ongoing basis and 96 of the 200 this notice. procedures were reviewed during the year Levels of ethyl mercaptan in the Kwinana to ensure relevance with current test station and cylinder filling ramp were operations. The OMS includes links to codes monitored. The monitoring showed that the of practice and regulators’ home pages and levels were well below the standards set by health, safety and environment reference the National Occupational Health and documents. The OMS is available to Safety Commission. employees through our Intranet system. We have a process in place which ENVIRONMENTAL MANAGEMENT SYSTEM endeavours to ensure that LPG cylinders and (EMS) tanks are retested in accordance with the Australian Standard. Every endeavour is Our EMS is an integrated part of the OMS made to ensure that the Standard’s and is consistent with the principles of the requirements are met however, at any point international standard ISO 14001. The in time, there may be some cylinders and triennial external audit was conducted this tanks that may not meet this requirement. year. We have maintained our third party certification to AS/NZS ISO 14001 LICENSING AND APPROVALS (Environmental Management Systems) at our Myaree and Kwinana sites since 1998. We hold three site-specific environmental Victorian WorkSafe Field Third party certification has not been licences. These are required by the relevant Officer, Les Cameron, sought at any other sites. discusses the benefits of a statutory authorities for our Pinkenba cylinder lifter with terminal, our Mongla terminal in Bangladesh QUALITY SYSTEM and our Kwinana Liquefied Natural Gas Commission Agent, John (LNG) plant. The licence previously held for Our entire quality system is now compliant Halfacre and Kleenheat’s our Myaree workshop is no longer required with AS/NZS 9001, with the system being Alan Meager. because the Environmental Protection upgraded at our Darwin site during the (Liquid Waste) Regulations 1996 were year. The mature nature of the system has > repealed. No other environmental approvals been recognised by the external auditors were sought this year. resulting in future audits being scheduled on a rotating basis between the sites. NATIONAL POLLUTANT INVENTORY (NPI) Our Kwinana gas terminal major hazard facility Safety Report was accepted, with LPG is a volatile organic compound that is SAFETY MANAGEMENT SYSTEM (SMS) the licence for the facility being amended one group of substances reportable under We have maintained certification to AS/NZS by the Department of Industry and the NPI. The presence and use of all 4801 (Occupational Health and Safety Resources (DoIR) in February 2004. substances listed under the NPI was Management Systems) for our Myaree and reviewed for each type of operating site. We hold a licence to operate at our Swan Kwinana sites. Our last external audit, in However, we did not trigger any thresholds Hill gas terminal in Victoria. This terminal is May 2004, covered our integrated quality and therefore we are not required to report. licensed under the relevant Victorian and safety management systems. occupational, health and safety legislation. HEALTH AND SAFETY A compliance audit was held by the OTHER/INTERNAL MANAGEMENT We are not aware of any non-compliance Victorian WorkCover Authority in June SYSTEMS with health and safety legislation or other 2004. Work is continuing to address issues raised by the audit. Our compliance management database health and safety requirements, except as maintains information records for drivers, set out below. Our Brisbane gas terminal is currently trucks, terminals and contractors. Improvement notices were issued by the subject to the Major Hazards Facilities licensing regime overseen by the The environmental management database Victorian WorkCover Authority for our Deer referred to last year continued to be used. Park and Swan Hill gas terminals. Queensland Government Chemical Hazards and Emergency Management (CHEM) Unit. Our business information system came into At Deer Park a notice was issued in March The final section of the safety report for operation in December 2003 and is still 2004 in relation to the amount of LPG this terminal (referred to in last year’s being developed and improved. stored at the premises. At Swan Hill, an report) was submitted in March 2004. Environment, health and safety aspects August 2003 audit resulted in four Approval is expected by the end of 2004. have not yet been implemented. Directions to Remedy Contravention orders, issued in relation to the storage and POLICY handling of dangerous goods. All notices Management and orders were complied with. We have formal policies for quality, safety systems and the environment. Each policy has been As part of the auditing process for developed in accordance with the relevant compliance with the Victorian Major INTEGRATED MANAGEMENT SYSTEM Australian Standard. Our policies are Hazards Facilities Regulations, we received Our Operations Management System (OMS) displayed on our intranet site and at our an improvement notice in June 2004 in is an intranet-based system covering safety, operating sites. regard to our management of change quality and environmental management

40 SOCIAL RESPONSIBILITY REPORT 2004 KLEENHEAT GAS

ENVIRONMENTAL GREENHOUSE GAS EMISSIONS and fabrication workshop and main store. LPG produces up to 15 per cent less All results were below the detectable limit greenhouse gas emissions than petrol. This of 0.01 fibres/ml and, therefore, below Air was promoted through our Environmental WorkSafe Western Australia’s limits for DUST Benefits of LPG training and also through asbestos fibres in air. Dust is an issue at some of our sites. education of our light vehicle fleet drivers in an effort to increase LPG usage and The cylinder filling and refurbishment decrease greenhouse gas emissions. As Water operations at Wingfield in South Australia vehicles are changed over in the passenger CONSUMPTION have been relocated to the nearby Gepps fleet, LPG vehicles are purchased, wherever Cross site, which is sealed. This has Our main use of water during the year practicable, to minimise the fleet’s related to truck washing (undertaken at 36 eliminated the risk of dust to yard greenhouse gas emissions. In the last year employees. per cent of our sites), cylinder washing (14 the number of petrol vehicles increased per cent of sites) and fire deluges (installed Concerns over dust at Deer Park were again from two to three, LPG vehicles increased at 43 per cent of sites). raised during the year, but our plans to from 58 to 60 and there were 119 dual fuel relocate from this site, referred to in last vehicles, two more than the previous year. As many of our locations are leased properties without a site-specific water year’s report, meant dust management By integrating dual fuel and dedicated LPG measures were not implemented. However meter, water consumption was not able to vehicles into our fleet instead of solely be monitored. the lease at Deer Park has now been running dedicated petrol vehicles, our renewed and we are in the process of greenhouse gas emissions are up to 200 Our water sources included: arranging the application of a dust tonnes per annum less than they would • scheme water (used at 98 per cent of suppressant at that facility. otherwise be. sites); ODOUR Our direct greenhouse gas emissions during • groundwater abstracted through bores the year from vehicle fuel use were estimated (two per cent); In its natural state, LPG is odourless. For to be 13,679 tonnes of carbon dioxide safety reasons it is necessary to add a small • surface water taken from streams, rivers equivalent, down four per cent on last year. amount of ethyl mercaptan to give the gas and rain catchment dams (five per cent); a distinctive smell and to allow its presence In addition, our indirect greenhouse gas and emissions during the year from imported to be easily detected should a leak occur. • reused/recycled water (five per cent). An odour release is associated with the electricity were estimated to be 3,498 tonnes of carbon dioxide equivalent, up venting of LPG to the atmosphere. REUSE AND RECYCLING nine per cent on last year. LPG emissions are minimised through the Fire deluge systems are erected above our The only other sources of greenhouse gas cylinder exchange programme and remnant bulk storage tanks where required. At emissions of which we are aware are gas recovery at our testing stations. During Kwinana and Channel Island in the related to contractor vehicle fuel use for the year 93,458 cylinders were tested and Northern Territory, the released deluge fuel purchased from non-BP outlets and our remnant gas recovery rate from tested water flows back into a water storage dam waste disposed off-site. As we did not cylinders increased by about 37 per cent for reuse. from approximately 1.6 kilograms per measure these we were unable to estimate cylinder to 2.2 kilograms per cylinder. The associated greenhouse gas emissions. DISCHARGES TO SURFACE AND rate can be affected by the number of Our total greenhouse emissions of 17,177 GROUNDWATER different cylinder sizes tested during a year tonnes carbon dioxide equivalent were At sites other than Kwinana and Channel and the amount of unused LPG in the down two per cent on last year. cylinders. We did not record remnant gas Island, the deluge water discharges to the recovery by cylinder size, but the number of Our greenhouse gas emissions are due to natural ground surface. each cylinder size tested is set out below in vehicle fuel use (approximately 80 per cent) Figure 1. and electricity consumption (approximately 20 per cent). Waste FIGURE 1: Our total (direct and indirect) greenhouse SOLID WASTE gas emissions per bulk tonne of LPG NO. OF CYLINDERS TESTED The type of waste generated depends on delivered were estimated to be 33 CYLINDER SIZE NO. % the nature and size of the operation. kilograms of carbon dioxide equivalent, Unmanned depots do not produce any 9 KILOGRAM 46,431 49.7 down five per cent on last year. waste. Solid waste at other sites may 18 KILOGRAM 4,032 4.3 include paper, cardboard, cylinders, valves, NOISE 45 KILOGRAM 42,043 45.0 plastics, aluminium, glass and wood. The We received no noise complaints. 190/210 KILOGRAM 952 1.0 amount of solid waste generated is not measured, but amounts of steel and brass TOTAL 93,458 100.0 OTHER EMISSIONS sent for recycling are recorded. We are not aware of any emissions of ozone-depleting substances. LIQUID WASTE Asbestos air fibre monitoring was Waste oil is generated at our Myaree conducted at our Myaree site in the repair workshop where it is collected by a waste

SOCIAL RESPONSIBILITY REPORT 2004 41 KLEENHEAT GAS

management contractor. Some of our Some of the sites we lease in New South Most of the fuel we consumed related to trucks are serviced at the Wandin terminal Wales are contaminated from previous transporting LPG. Our fuel consumption is in Victoria. Waste oil is collected by the uses. No remediation was undertaken by shown in Figure 2, below, in comparison to contract servicing mechanic and taken to a the council at Nowra so our operations last year. recycling centre for treatment. have continued as before. Our site at FIGURE 2: FUEL CONSUMPTION (LITRES) Thinners are used at cylinder Camellia is concreted which assists in refurbishment stations where they are preventing incident rainwater from 2003 2004 spreading contamination. We have used to clean the spray guns, collected on LPG 723,317 542,643 filters and evaporated. relocated from the contaminated site at Armidale enabling the remediation of that PETROL 167,947 202,651 RECYCLING INITIATIVES site by other parties. DIESEL 4,696,297 4,557,265 We removed the hydrocarbon- Approximately 30 tonnes of brass and 172 Contractor vehicle fuel use for fuel contaminated sediment from the tonnes of steel were recycled from our purchased from BP outlets using our BP stormwater system at Pinkenba. This operations across Australia, compared with fuel card system is included in the above material was collected by the landowner last year’s 31 tonnes and 164 tonnes figures. Fuel purchased by contractors from for treatment and disposal. A stormwater respectively. non-BP outlets is not included as drainage management plan is now in place. This year we participated in Cleanup we have no practical way of recording Australia’s mobile phone collection Hydrocarbon contamination was identified those purchases. around the waste oil tank at Myaree and programme. Approximately 200 mobile Both the kilometres travelled and litres of elevated zinc concentrations were phones were collected and money was diesel consumed, per tonne of bulk LPG identified in the soil under the cylinder raised to assist in community-based delivered, have been determined. Last year’s filling ramp at Myaree. However no further environmental initiatives. figures were recalculated without averaging investigation of the zinc contamination of data and can now be directly compared was considered warranted by the external with this year’s data. The kilometres consultant given the limited potential for Land travelled per bulk tonne of LPG delivered has ecological risk. CONTAMINATION been reduced from 27 (we reported 40 in last year’s report based on averaged data) to Contamination is unlikely to result from 26. The efficiency of diesel use has also our LPG operations as LPG vaporises at Resource use improved with 8.9 litres of diesel being atmospheric pressure preventing it from ENERGY consumed per bulk tonne delivered entering soil or water resources. As some compared with 9.8 litres last year. We of our bulk delivery trucks are fuelled by Our main use of energy during the year incorrectly reported 7.9 litres last year. diesel or petrol, oil absorbent spill kits related to transporting LPG and electricity Improvements in tracking this data in the have been issued. consumption at our sites. Oracle system and measures to improve fuel Energy audits were undertaken at the efficiency will be implemented next year. < Niddrie regional office in Victoria and the Kwinana terminal. Opportunities for energy ELECTRICITY savings at Niddrie where documented in Angus Selman with Electricity accounted for approximately five discarded mobile phones relation to the operation of air- conditioning, lighting and office equipment. per cent of our total energy consumption by collected as part of a Potential energy savings of 816 gigajoules gigajoule. Our electricity consumption was recycling initiative at Myaree per annum and cost savings of $16,063 per 3,066,662 kilowatt hours. in Western Australia. annum were identified at Niddrie. Opportunities for energy savings at GAS Kwinana were more limited and related to LPG accounted for approximately seven per review of lighting types and the air cent of our total energy consumption by compressor operation. The most cost gigajoule. effective opportunities will be implemented in the coming year. SAFETY AND Our total energy consumption was estimated to be 207,371 gigajoules, down HEALTH four per cent on last year. LOST TIME Our total energy consumption per bulk tonne of LPG delivered was estimated to be Our LTIFR was zero (compared with 1.4 last 0.40 gigajoules. year) and, during the year, there were no LTIs. Our Average Time Lost Rate, which provides a Our energy sources are detailed below. measure of the severity of such injuries, was zero, the same as last year. These statistics FUEL include contractor hours and injuries. Diesel and petrol accounted for Safety statistics are distributed and approximately 88 per cent of our total discussed by management each month and energy consumption by gigajoule. reported to our board every two months.

42 SOCIAL RESPONSIBILITY REPORT 2004 KLEENHEAT GAS

WORKERS COMPENSATION contractors. The training package now There were 60 workers compensation claims shows safe techniques for exiting trucks, reported, relating to occurrences during the handling stock in retail branches and gas year, compared with 49 last year. cylinder handling. We demonstrated a lifting device at our convention in Melbourne in March 2004. Hazard and risk Our plan is to progressively roll out the use PROGRAMMES of this device in the coming year. We held driver forums in October 2003, We successfully trialled a tailgate loader January 2004 and April 2004. The forums for our cylinder delivery vehicles, the initial used a consultative approach with 15 trial being on the utility used at our employees and contractors from a number Myaree store. These will be progressively of states to raise and try to solve safety introduced in the coming year. and risk-related issues. We have started working to address issues generated at the RISK ASSESSMENT forums. As part of the Safety Report for our Kwinana gas terminal, we undertook a During the year, our heavy haulage vehicles Quantitative Risk Assessment (QRA) for the were involved in 10 on-road accidents, with facility. We engaged the services of no personal injury or major damage. During independent risk consultants to conduct the same period, our passenger vehicle fleet the QRA and submitted a revised version to was involved in 30 road accidents. Again, the DoIR in December 2003. there were no personal injuries and no major damage to vehicles. We also submitted the final sections of our Safety Report for the Pinkenba gas terminal In conjunction with the Port of Darwin and The poster used for the in March 2004. an external risk consultant, we conducted a first “Safety Sam” security risk assessment and developed a Our Liquefied Natural Gas (LNG) group has campaign aimed at regional port security plan for our Channel continued to grow over the year in Western improving driver safety. Island gas mooring in the Northern Territory Australia, with one customer, SITA as required by the Australian Maritime Environmental Solutions, having a vehicle > Transport Security Regulations. The plan was converted to run on LNG and plans for another two vehicles to be fitted out in the completed and submitted to the EMPLOYEE WELLBEING Commonwealth Department of Transport coming year. In addition, the LNG group and Regional Services in March 2004. won the contract to convert approximately We commenced a “Safety Sam” campaign 150 vehicles and construct a tanker loading in April 2004 with posters promoting safe EMERGENCY RESPONSE facility for the Murray Goulburn driving tips, a competition to win a defensive driver training day and a free No emergency response exercises were held Cooperative Company in Victoria. As part of T-shirt. Our second campaign, which began this year. We are planning to conduct an this process, a Hazard and Operability study in June 2004, provided information packs emergency response exercise at our was conducted in March 2004 for the to all staff promoting the introduction of Kwinana gas terminal and separate desktop refuelling facility. our Fitness for Work policy in July 2004. crisis management exercises in Perth and All sites identified as containing asbestos Melbourne by the end of 2004 to test the materials have been surveyed by We again produced a calendar in which we draft Crisis Management Plan referred to in independent consultants. The consultants’ ran a competition for the children of this report last year. reports contain recommendations which employees to submit a drawing based on health, safety or environmental themes. The The emergency response resource package are being actioned as required. Scheduled competition winners had their drawings referred to last year will be implemented asbestos assessments were undertaken at published in the calendar. during the next year. Camellia, Pinkenba, Kwinana, Myaree and Deer Park. As a result of these assessments, We began another round of employee We reviewed or created an emergency the Myaree cylinder filling ramp will be health surveys in June 2004, with 161 plan for 24 locations, with 18 being removed, the asbestos on the Pinkenba employees participating. The survey completed and six in draft form at the end cylinder refurbishment shed will be consisted of blood profiling, health tests, of the year. Each plan, dangerous goods replaced and damaged asbestos at Camellia fitness tests and a questionnaire. Employees storage quantities and emergency and will be sealed, in the coming year. No received both oral and written feedback on local infrastructure contacts were further asbestos management is required at their health status and identified health reviewed and published on our intranet for Deer Park and Kwinana in the next year. risk areas. We will receive aggregated data access by employees. Deficiencies with the current paint spray on employee health from these surveys. MATERIALS HANDLING AND STORAGE booth at the Pinkenba terminal have been Employees were also offered the identified and upgrade options are currently We revised our manual handling training in opportunity to have an influenza being investigated. March 2004 to refresh the information and vaccination with 144 employees taking up advice we give to our employees and the offer.

SOCIAL RESPONSIBILITY REPORT 2004 43 KLEENHEAT GAS

COMMUNITY applications of LPG and road tanker and passenger vehicle safety. Research STAKEHOLDERS We again sponsored the Community of SCHOLARSHIPS Our stakeholders include our employees, the Year awards in Western Australia We sponsor the ABC school in Dhaka, customers, suppliers, relevant government and Victoria and, for the first time, in Bangladesh for children living in poverty. agencies, the local communities in which New South Wales. We also co-sponsored This year the school numbers have risen we operate and the shareholders of our Regional Achievers Awards in the from 25 to 57 children, in groups from four parent company, Wesfarmers Limited. same states. to 12 years of age. In March 2004, we made available to our As part of our commitment to raising Highlights of the school this year have staff the Workplace Giving programme, community awareness of LPG safety, we been the employment of a qualified which allows employees to make charitable provide training to any interested party or headmistress and two new teachers, the donations out of pre-tax salary, thus public group. introduction of sewing classes which effectively allowing employees to receive assist in future employment in garment the tax deduction at the time of the FEEDBACK/COMPLAINTS industries, an eye testing programme for donation without any paperwork, rather Most customer issues are handled first by the children and the purchase of two than waiting until after the end of the our Customer Service Centre (CSC) officers. rickshaws for the fathers of the children financial year and claiming deductions in If an issue requires further attention, the to rent. their returns. matter is dealt with by the CSC manager, The Australian under-19 cricket side also supervisor or other senior personnel. We We also offered employees the opportunity visited the school during the year and also handled 78 written feedback issues to bring in old mobile telephones for presented the children with a cricket kit during the year. collection and disposal. and T-shirts. We assisted our commissioned agent in LIAISON WITH AUTHORITIES Geelong Victoria, a wholesale customer, to We continue to maintain a working resolve an improvement notice issued to relationship with government authorities to him in November 2003 by the Victorian ensure we deal with any compliance issues WorkCover Authority (VWA) relating to that arise. manual handling of cylinders. This notice was complied with by conducting a manual handling risk assessment and Communication sourcing, creating and fitting a simple winching device, which attaches to the NEWSLETTERS AND REPORTS rear of a truck. We maintained a high level of employee As part of our commitment to improve feedback through both our “Gas-Bagging” customer relationships and service, another and “Safeside” newsletters. We also 125 employees were given awareness distribute “Well-at-Work” newsletters to training in the Key Account Relationship employees providing a range of information Management process. This process allows relating to general health and wellbeing. us to assist our larger customers to streamline their LPG usage and to add WEBSITE value to existing gas installations. For Our website (www.kleenheat.com.au) example, at the Western Australian site of includes information about our operations major gold producer and one of our long for the community, including standing end-use customers, Kalgoorlie environmental, safety and health Consolidated Gold Mines (KCGM), a project information relating to our business. began in March 2004 to provide telemetry monitoring and metering of storage LIAISON GROUPS inventory to improve KCGM’s daily LPG We are a member of the Australian management. Liquefied Petroleum Gas Association. Grant Macpherson (centre) A number of our appliance and asset We are now a full member of the Kwinana suppliers were invited to attend the discusses with Kalgoorlie Industries Public Safety (KIPS) group and an Consolidated Gold Mines Kleenheat Convention where they associate member of the Kwinana showcased new appliances and gas-related Industries Mutual Aid (KIMA) group. employees Ross Whalton products. (left) and Steve Cooper In April 2004 we conducted a safety COMMUNITY SUPPORT ways to improve daily LPG awareness training presentation in Western In addition to the major sponsorships, we management. Australia for 30 Kimberley and Pilbara have provided support to such events as volunteer fire fighters and six senior Fire the Canberra Balloon fiesta, the Australia > and Emergency Services Authority Cancer Council, the Clontarf Football managers. The training focused on the risks Academy and a number of other local associated with domestic and commercial sporting clubs and cultural organisations.

44 SOCIAL RESPONSIBILITY REPORT 2004 KLEENHEAT GAS

PRIORITIES FOR THE FUTURE

≥ MAINTAIN ZERO LOST TIME INJURIES.

≥ CONDUCT HEAVY VEHICLE DRIVER TRAINING.

≥ INTRODUCE FURTHER PROGRAMMES TO REDUCE MANUAL HANDLING RISKS.

≥ IMPROVE ENERGY EFFICIENCY AT SITES AND IN THE TRANSPORT OF OUR PRODUCT.

≥ IMPLEMENT RECOMMENDATIONS OF ASBESTOS SITE ASSESSMENTS.

≥ INSTALL SEPTIC SYSTEM AT PINKENBA TERMINAL. Our passenger vehicle fleet Training facilitator operates under a variety of Chris Svircas (second from differing road surfaces and left) showing Colin climactic conditions and Proctor, Josephine Wilkes covers a large number of and Jim Theodoropoulos kilometres every year. how to do a vehicle pre- start inspection. To assist in reducing the on-road risks of daily driving, we consulted > with the Driver Training Education Centre, a specialist driver training provider to prepare a course for drivers which addressed the risks specific to our operations. This training course, conducted over a full day, concentrated on such learning strategies as observation techniques, vehicle dynamics, systems of car control and driver attitudes, as a classroom theory session. The practical skills sessions covered such issues as pre-driving drills, vehicle maintenance, braking techniques, and on-road practical driving. Each participant was given an on-road skills assessment. The course was conducted in all states in which we operate and 138 employees attained a Level 2 Certificate in Defensive Driver Training. Due to the positive feedback provided by our employees, we are now extending the defensive driver training to our heavy vehicle drivers.

SOCIAL RESPONSIBILITY REPORT 2004 45 Manfred Weil checking equipment in the export WESFARMERS LPG refrigeration area at the Liquid Extraction Plant at Kwinana. We own and operate a plant at Kwinana in Western > Australia which extracts LPG from the natural gas stream in the Dampier to Bunbury pipeline. Production levels were steady during the year with plant capacity now at about 350,000 tonnes per anum. We employ about 40 people.

installation of the acoustic sound barrier on Overview the Ruston generator. LOST TIME INJURY The main challenge facing our business on FREQUENCY RATE Work on a project to redirect minor LPG an ongoing basis is the safe operation of 00 01 02 03 04 emissions from tanker loading to the flare our plant in a way that minimises any rather than to atmosphere and a project to 0.0 0.0 0.0 7.2 0.0 adverse impact on the environment or the modify the drain systems from the export local community. 1 July 99 - 30 June 04 (as at 30 September 04) refrigeration scrubber area to the flare *Contractor hours and LTIs included from 1 July 2002. In dealing with this challenge, the three were completed during the year. main environmental areas on which we The two main safety areas on which we focused our attention during the year focused our attention during the year were were noise reduction projects, ensuring the ongoing protection of employees and compliance with our Department of visitors to our plant and compliance with Environment (DoE) licence conditions the national standard for the control of and completion of projects to divert NUMBER OF WORKERS major hazard facilities. LPG emissions from plant equipment to COMPENSATION CLAIMS the flare. We continued our commitment to providing 00 01 02 03 04 a healthy and safe workplace for all We continued implementing the noise 12013 employees and visitors to the Kwinana management plan to address non- extraction plant and our gas export compliance issues with the Environmental facilities. Identification and control of Protection (Noise) Regulations 1997. This hazards and prevention of incidents and involved the implementation of a noise injury remained the highest priority. reduction project on the gas turbine alternator (Ruston generator). An acoustic We conducted an independent compliance sound barrier was installed and noise audit of our Safety Report as part of our measurements will be conducted next year requirements as a major hazard facility to confirm we are compliant with the under the national standard for the control boundary noise level regulations. of such facilities. We are not aware of any non-compliance We progressed the environmental with DoE licence conditions, other than the assessment of our plant site by completing environmental noise non-compliance which stage two of the environmental site we believe has been resolved with the assessment. The independent consultant’s

46 SOCIAL RESPONSIBILITY REPORT 2004 www.wesfarmerslpg.com.au 03 04< report concluded that no further 2003 REPORT PRIORITIES OUTCOMES investigations, including stages three and four mentioned in this report last No workplace injuries and LTIFR of zero. Partly achieved. Two employee injuries and year, were required. The existing lead and one contractor injury, each requiring minor zinc soil contamination discussed in medical treatment. LTIFR of zero for previous reports will be reported to the employees and contractors. DoE when the Contaminated Sites Act 2003 comes into effect. Ongoing identification and control of Achieved. Continued use of site Permit to hazards. Work system. We conducted environmental sampling on Hazard and Operability (HAZOP) study plant gas-burning equipment to verify greenhouse gas emissions. Results indicated conducted for proposed dual use (import that oxides of nitrogen (NOx) emissions and export) facility. from the train two recompressor and gas- No significant release of hydrocarbons to Achieved. Minor propane release following fired oil heater were less than previously the atmosphere. the operation of two pressure safety valves estimated. The results for the train one with no threat to employees or the public. recompressor were slightly above, and for the Ruston generator were in line with, Continued implementation of the noise Achieved. Phase three completed. Noise previous estimates. reduction programme. measurements will be conducted to We finalised a Fitness for Work (Alcohol confirm compliance. and Drugs) policy with regard to safety and health, which was introduced on 1 August Progress environmental site assessment. Achieved. Stage two completed. No further 2004, following awareness training for investigations are required. employees and contractors. Implement Fitness for Work (Alcohol and Not achieved. Policy finalised and A highlight of this year’s safety Drugs) policy. introduced on 1 August 2004. Alcohol performance was our achievement of a zero testing equipment purchased and alcohol Lost Time Injury Frequency Rate (LTIFR) for testing awareness training completed. employees and contractors. Conduct environmental sampling to Achieved. Tests conducted and results verify greenhouse emissions. demonstrate that the train two BUSINESS recompressor and gas fired oil heater MANAGEMENT oxides of nitrogen (NOx) emissions are less than previously estimated. The results for the train one recompressor were slightly Training above, and for the Ruston generator were ENVIRONMENTAL in line with, previous estimates. Our induction programme for all new employees and contractors addresses environmental awareness of their work area hazards, work permit requirements, with emphasis on response to product occupational health and safety and spillage and general housekeeping. There emergency response procedures. were 137 inductions carried out this year All employees undergo vocational training to associated with planned maintenance meet the requirements of their position with activities and new projects. In addition, our competencies measured against national training programme covers procedures for standards (where available). In addition, a managing environmental licence conditions. comprehensive competency-based training programme is in place for all process HEALTH AND SAFETY operators, involving demonstration of Fitness for Work (Alcohol and Drugs) acquired competencies against internal and consultative committee members attended national standards. The review of the internal awareness training in the use of alcohol competency standards, including training testing equipment as part of the workshops, continued this year to ensure introduction of our policy on 1 August 2004. We conduct voluntary health and fitness Training employees and assessments for employees and long-term contractors such as contractors every two years. The next series apprentice Travis of assessments is scheduled for 2005. Simlinger, being supervised All employees and contractors must by Alex Alcorn, is part of attend a safety induction programme the plant’s safe operation. before being allowed access to the process area to ensure that they are aware of <

SOCIAL RESPONSIBILITY REPORT 2004 47 WESFARMERS LPG

that they matched current plant status. There management plan to address non- QUALITY SYSTEM were numerous changes made to the internal compliance issues with the Environmental We have a Quality Assurance system competency standards as a result of the Protection (Noise) Regulations 1997. This meeting the requirements of ISO 9001 for review and this process is ongoing. involved the implementation of a noise the testing, inspection and servicing of reduction project on the Ruston generator. safety relief valves. These valves are tested EMERGENCY An acoustic sound barrier designed to at prescribed periods. An independent audit ensure compliance with boundary noise A comprehensive emergency response was undertaken in October 2003 and our regulations, was installed in July 2004 and training programme is in place relevant to certification continues. noise measurements will be conducted to each employee’s position. This includes confirm compliance. basic, intermediate and advanced fire SAFETY MANAGEMENT SYSTEM (SMS) fighting, breathing apparatus training, NATIONAL POLLUTANT INVENTORY (NPI) All health and safety policies and search and rescue and fire ground procedures are referred to in our Safety command programmes. Training under this Air emissions notifiable under the NPI were Report which is subject to independent and programme is conducted annually. estimated for oxides of nitrogen, carbon regular audit and overseen by the DoIR. monoxide, nickel carbonyl, heavy metals As part of our Safety Report requirements, and associated compounds and particulate Recommendations of a compliance audit 37 employees completed an advanced fire matter. Data for the 2002/2003 reporting conducted in September 2003 were fighting course, 13 completed the fire period was submitted to the Department of discussed with the DoIR and an action plan ground command course and 11 went Environment (DoE). Detailed information is was developed. We are progressing the through the fire awareness and control available at: www.npi.gov.au. All our action plan items. programme. substance emissions for last year were Specific health and safety procedures cover ranked by the NPI as “low”. working with high voltage electricity, Compliance accident and incident investigation, manual HEALTH AND SAFETY handling, working in confined places, ENVIRONMENTAL We are not aware of any non-compliance height safety and job hazard analysis. We are not aware of any non-compliance with health and safety legislation or other All modifications to the operating plant are during the year with environmental health and safety requirements, except as reviewed and approved by senior plant legislation or other environmental set out in the Safety Management Section. management prior to implementation. requirements, except as set out below. Procedures ensure that all changes are fully LICENSING AND APPROVALS We continued implementing the noise documented to allow independent audit Our plant operated under licences issued by and review. The procedures were updated the DoE and the Department of Industry and re-issued this year as part of the and Resources (DoIR). These licences are compliance audit recommendations. issued annually and we are not aware of < any non-compliance with the DoE licence POLICY conditions, other than the environmental We are committed to providing a healthy Testing the firewater noise non-compliance which we believe has and safe workplace for all employees and been resolved with the completion of the visitors to the Kwinana extraction plant deluge system at the noise reduction project on the Ruston domestic LPG loading bay. and our gas export facilities. Identification generator. There are some minor levels of and control of hazards and prevention of non-compliance with the DoIR licence incidents and injury are of the highest conditions which are reported under the priority. This is achieved through a Safety Management System section. consultative process which defines and As part of the project for the conversion of implements training, policies and our facility for dual use (import and procedures for the wellbeing of all export), we received approval for pipe work employees. There are four safety and health modifications from the DoIR in July 2004. representatives who are on the occupational health and safety committee. Management systems ENVIRONMENTAL ENVIRONMENTAL MANAGEMENT SYSTEM Air (EMS) DUST Our greatest potential environmental issue To control dust, large areas of grass have is a significant hydrocarbons release. As been planted and are maintained. this is also our greatest potential safety issue, our environmental policy and ODOUR procedures are, in effect, managed through our Safety Report and our DoE licence Propane and butane are naturally odourless. conditions. We have an environmental For safety reasons, we are required by policy covering the site. legislation to inject low levels of ethyl

48 SOCIAL RESPONSIBILITY REPORT 2004 WESFARMERS LPG

mercaptan (odorant) into the gas. This gives of a noise acoustic barrier on the it a distinctive odour allowing leaks to be Ruston generator in July 2004 and will detected. The injection system is closely conduct further noise measurements to monitored as even minor drips can give rise confirm compliance with the to offensive odours. Any leak is quickly environmental noise regulations. repaired and spillage contained and neutralised. No odour complaints were OTHER EMISSIONS referred to us by any source this year. We are not aware of any emissions of ozone-depleting substances. GREENHOUSE GAS EMISSIONS We have not yet prepared our report to the Our direct greenhouse gas emissions during NPI for the 2003/2004 reporting period or the year from operating our plant were finalised our data estimates, however in estimated to be 123,586 tonnes of carbon 2002/2003 our three largest emissions were dioxide equivalent, up seven per cent on oxides of nitrogen (NOx) (330,000 last year. This figure includes the following kilograms to air), carbon monoxide (77,000 substance emissions: kilograms to air) and particulate matter • 112,630 tonnes of carbon dioxide (CO2); (29,000 kilograms to air). • 523 tonnes of methane (CH4); and There have been no environmental incidents involving significant release • 200 kilograms of nitrous oxide (N2O). (defined as a release which may affect Inspecting the Ruston In addition, our indirect greenhouse gas areas outside the plant) of LPG, natural gas generator on which work emissions during the year from imported or condensate to the atmosphere since the electricity and waste disposed off-site were commencement of plant operations in was done during the year to estimated to be 6,771 tonnes of carbon 1988. There have been occasional minor reduce noise levels. dioxide equivalent, down 34 per cent on LPG releases (defined as those contained last year. within the plant) that have been quickly > Our greenhouse gas emissions are largely brought under control. due to fuel gas consumption (approximately There was one propane release in 86 per cent) and fugitive gas emission due December 2003, following the operation Scheme water consumption was estimated to gas turbine starter gas (approximately of two pressure safety valves (one on to be 13.1 megalitres, down 25 per cent on eight per cent). each propane export storage tank) last year. Our total (direct and indirect) greenhouse which each lasted approximately one Our total scheme water consumption per gas emissions per day of production were minute and released approximately 0.5 tonne of production was estimated to be estimated to be 367 tonnes of carbon tonnes of propane, due to pressure rises 40 litres, down 25 per cent on last year. The dioxide equivalent, up four per cent on last in the storage tanks. The release was water treatment plant was unavailable for year. We have used a rate per day of safely dispersed and did not pose any approximately five months of the year production rather than a rate per tonne of threat to employees. because of technical issues. production because our plant operating During plant shutdowns, or occasionally to We also used groundwater abstracted requirements mean that our greenhouse gas control pressure in operating vessels, gas through bores for maintaining the level in emissions are more or less constant has to be released from the process plant. the firewater reservoir and for garden irrespective of the amount of LPG produced. This gas is safely disposed of through reticulation. As groundwater use is not In previous reports we did not separate out combustion flares. The flare tips are measured, it has not been included in our the different oxides of nitrogen and we continuously monitored in the control room total water consumption figure. assumed, in calculating our greenhouse gas via a closed circuit camera. emissions, that all of the oxides of nitrogen In the event of a high flaring rate, additional REUSE AND RECYCLING emissions were nitrous oxide which is a combustion air is fed to the flare tips to Water used for deluge system testing is greenhouse gas. This had the effect of prevent the formation of black smoke. returned to the storage pond for reuse. overstating our greenhouse gas emissions. Last year’s report referred to a project to In this report we have separated out DISCHARGES TO SURFACE AND allow the safe discharge of LPG emissions nitrous oxide for this year and, where to flare following the completion of loading GROUNDWATER comparisons are made, last year. of road tankers when the hoses are Storm water run-off from the paved NOISE disconnected. This project was completed sections of the processing areas is directed during the year. to oil/water interceptors where any oil The extraction plant operates 24 hours a present is skimmed off and recovered. day. There are numerous items of rotating equipment giving rise to a low level of Water A licensed contract waste disposal firm background noise at the plant boundary. removed all this oily water waste, totalling We continued implementation of the CONSUMPTION 4,000 litres. management plan aimed at reducing Our main use of scheme water during the Three bores operating on the site provide noise emissions from the plant as far as year related to plant processes and general water for garden reticulation and for practicable. We completed the installation site amenities. emergency response.

SOCIAL RESPONSIBILITY REPORT 2004 49 WESFARMERS LPG

Waste RECYCLING INITIATIVES ELECTRICITY Paper and cardboard recycling bins Electricity accounted for approximately one SOLID WASTE continued to be used as part of our paper per cent of our total energy consumption Our solid waste consisted primarily of products recycling policy and about 75 by gigajoule. Electricity consumption for general site waste. cubic metres of paper and cardboard were the year was 6,038,600 kilowatt hours. removed by our waste management We estimated our total solid general waste contractor for recycling. GAS stream to be 726 cubic metres prior to compaction, down two per cent on last Natural gas and LPG accounted for year. All this waste was taken away by our Land approximately 98 per cent of our total waste management contractor and energy consumption by gigajoule. During disposed of as landfill. There is no landfill FLORA AND FAUNA the year we used 42,886 tonnes of natural of waste on site. Extensive landscaping including trees and gas as fuel for the LPG processing plant. shrubs is maintained to improve the During the year we used 10,716 litres of Our total solid waste disposed of to landfill appearance of the facility and minimise dust. autogas for vehicle fuel. per thousand tonnes of production was estimated to be two cubic metres, down CONTAMINATION two per cent on last year. SAFETY AND Stage two of the environmental site LIQUID WASTE assessment was completed and the HEALTH consultant’s report recommendations were Our liquid waste consists primarily of used implemented. The report concluded that no LOST TIME lubricating and seal oil. further investigations (including stages Our LTIFR was zero (compared with 7.2 last We estimated our total oil waste to be three and four mentioned in this report last year) and, during the year, there were no LTIs. 11,900 litres, up 156 per cent on last year. year) were required and that there was Our Average Time Lost Rate, which provides Of this amount, 100 per cent is recycled. negligible risk to human health and the a measure of the severity of such injuries, This increase was due to the removal from environment from identified potential was zero (compared with two last year). site of oil from the train one recompressor contaminants of concern. The existing lead These statistics include contractor hours engine changeout and stockpiled oil wastes. and zinc soil contamination discussed in and injuries. Our oil waste generation per thousand previous reports will be reported to the DoE tonnes of production was estimated to be after the Contaminated Sites Act 2003 We had two employee injuries and one 36 litres, up 156 per cent on last year. comes into effect. contractor injury during the year, each requiring minor medical treatment. REHABILITATION Safety statistics, including information on < After completion of minor projects on the employees and contractors, are reported plant and associated facilities, excavated monthly to Wesfarmers Energy. Tony Langeard emptying paper areas were filled and reinstated. recycling bin into the main skip WORKERS COMPENSATION for collection by a waste management contractor. There were three workers compensation Resource use claims reported, relating to occurrences ENERGY during the year, compared with one last year. Our main use of energy during the year related to plant processes. We estimated our total energy consumption to be 2,160,923 gigajoules, up 20 per cent on last year. Our total energy consumption per tonne of production was estimated to be 6.6 gigajoules, up 20 per cent on last year. Our energy sources are detailed below.

FUEL Petrol and diesel accounted for approximately 0.04 per cent of our total energy consumption by gigajoule. During the year we used 14,675 litres of petrol and 11,065 litres of diesel for vehicle and machinery fuel.

50 SOCIAL RESPONSIBILITY REPORT 2004 WESFARMERS LPG

Odorant is pumped directly from sealed iso- Hazard and risk containers. The empty containers are PROGRAMMES returned to the supplier for reuse, eliminating any residual odorant disposal requirements. Our plant has been designed to have a very low environmental, health and safety risk. Liquid nitrogen is stored in an insulated All products will evaporate if released to vessel and is used for clearing LPG from the atmosphere, leaving no soil or water- export pipe work following completion of contaminating residues. exports. An additional liquid nitrogen vessel is located at the Liquefied Natural Gas EMERGENCY RESPONSE (LNG) plant for use in the production process. LNG product is stored in an We have detailed emergency response insulated vessel at the plant. procedures. They describe the organisation and training of employees and contractors All of these storage areas meet legislative to reduce the risk to personal safety and requirements. the surrounding environment in the event of an emergency. RISK ASSESSMENT Our procedures were revised during the As part of the project to convert our facility year to develop an Emergency Management for dual use (import and export), a Plan (EMP), which links into the Quantitative Risk Assessment was Wesfarmers Energy and Wesfarmers Limited conducted and submitted to the DoIR this Jim McFaul at the domestic Crisis Management Plans. The EMP was year. The department has reviewed this loading bay showing issued to internal and external stakeholders assessment and is satisfied with the modifications to the loadout as part of our licensing requirements as a proposed plant modifications. hose which enable LPG Major Hazard Facility. An emergency EMPLOYEE WELLBEING emissions to be diverted to desktop exercise involving an LPG leak and the plant’s flare prior to fire on the export line was carried out in We continued with an employee August 2003 with a field exercise based on consultative committee to assist in the disconnection. this scenario completed in November 2003. development of a Fitness for Work (Alcohol > These exercises involved role play and and Drugs) policy. The policy, which actual deployment of site resources and includes provisions for alcohol and drug external resources including Fire and testing has been finalised and was Emergency Services Authority and police. introduced in August 2004. Three site emergency muster point exercises We continue to provide an Employee were successfully carried out to test Assistance Programme which offers employee understanding of and compliance independent professional and confidential with emergency response procedures. counselling to all employees and their We continued as the rostered facility to immediate families. conduct the weekly Kwinana Industrial We also have a childcare referral service to Mutual Aid (KIMA) radio testing. These provide employees with advice about radio testing protocols allow for radio childcare services. communications to the various industrial Voluntary flu vaccinations were offered to neighbours to be verified as operational. employees and long-term contractors. MATERIALS HANDLING AND STORAGE We operate under an annual DoIR licence covering storage of dangerous goods. Our propane and butane products and condensate by-product are defined as dangerous goods under the Dangerous Goods Storage Regulations administered by the department. The products are stored in vessels which comply with both Australian and international engineering standards. Approximately 3,500 litres of diesel is stored on-site within bunded areas. Backup supplies of lubricating oil and heat transfer fluid are kept in 200 litre drums in a bunded oil storage area.

SOCIAL RESPONSIBILITY REPORT 2004 51 WESFARMERS LPG

COMMUNITY Communication STAKEHOLDERS NEWSLETTERS AND REPORTS Our stakeholders include our employees, Information is provided through the KIC as relevant regulatory authorities, our required. The 2003 Wesfarmers customers, the local Kwinana community in Environment, Health, Safety and the which we operate and the shareholders of Community Report was available to all our parent company, Wesfarmers Limited. employees and circulated to selected stakeholders. Employees are encouraged to provide feedback on this report. We are involved in the Kwinana Industries Council Community Information Service We are represented on the executive which is a public phone-in system, committee of the Kwinana Industries Public established in partnership with KIC and Safety Liaison Group which includes the Western Australian police service, representatives from industry, regulatory which enables the community to find out authorities, local government authorities what is happening within the Kwinana and the local community. industrial area. FEEDBACK/COMPLAINTS WEBSITE Senior management handles any Our website (www.wesfarmerslpg.com.au) complaints from the community. includes information about our operations We have an environmental complaints for the community, including register, but there were no complaints from environmental, safety and health any source during the year. information relating to our business.

LIAISON WITH AUTHORITIES LIAISON GROUPS We maintain good working relationships We continue to be involved in the Kwinana with the DoIR and the DoE through our Industries Public Safety Liaison Group. This involvement with regular Safety Report group allows us to formally consult with meetings and communications meetings state government departments and where we discuss our operations. agencies, local government organizations and community interest groups in matters ACTION GROUPS relating to our operations. We are a full member of the Kwinana Industries Council (KIC) and its sub- committee the Kwinana Industries Public < Safety Group (KIPS). Member companies maintain a Greg Johnston performing management system for response within a safety test on the the Kwinana industrial area to control firewater trailer. emergencies that may arise within the boundaries of a member company site. Member companies have a mutual aid plan to integrate emergency management where appropriate. This plan allows member companies to obtain assistance from neighbours in the event of an emergency.

52 SOCIAL RESPONSIBILITY REPORT 2004 WESFARMERS LPG

PRIORITIES FOR THE FUTURE

≥ NO WORKPLACE INJURIES.

≥LTIFR OF ZERO.

≥ IDENTIFICATION AND CONTROL OF HAZARDS.

≥ NO SIGNIFICANT RELEASE OF HYDROCARBONS TO THE ATMOSPHERE.

≥COMPLIANCE WITH ENVIRONMENTAL NOISE REGULATIONS.

≥ MEET REPORTING REQUIREMENTS OF CONTAMINATED SITES ACT 2003. As part of our commitment Environmental consultant ≥ IMPLEMENT FITNESS FOR WORK to conduct environmental Greg Salter sampling the (ALCOHOL AND DRUGS) POLICY. sampling to verify our exhaust stream from the greenhouse gas emissions train two recompressor ≥CONTINUE ENVIRONMENTAL from our plant operations, turbine to verify SAMPLING TO VERIFY we completed a number of greenhouse gas emissions. GREENHOUSE EMISSIONS. projects to allow for environmental sampling > from plant equipment.

Specific projects to provide sample The sampling and testing procedure points were completed for the train detects the actual oxides of nitrogen one and the train two recompressors, (NOx) from the exhaust streams, the Ruston generator and the which are then used for reporting to gas-fired oil heater. the DoE for inclusion in the National This work enabled us to conduct Pollutant Inventory. environmental sampling of the exhaust Further environmental sampling of from this equipment to measure the plant items will continue on a actual emissions and compare them quarterly basis for the first half of next with the previously estimated year, with a view to extending the greenhouse emissions. sampling intervals if the results are The sampling has been conducted by shown to be consistent. an independent environmental consultant and results indicated that the actual greenhouse gas emissions from the train two recompressor and gas fired oil heater were less than the estimates previously provided. The results for the train one recompressor were slightly above and the Ruston generator was in line with previous estimates.

SOCIAL RESPONSIBILITY REPORT 2004 53 The central conveyancing system at Blackwoods’ new warehouse in INDUSTRIAL & SAFETY Scoresby, Victoria. > We are Australasia’s market leaders in the supply of maintenance, repair and operating products and safety products. With more than 250 outlets we trade in Australia as Atkins, Bakers, Blackwoods, Motion LOST TIME INJURY FREQUENCY RATE Industries, Mullings Fasteners and Protector Alsafe. 02 03 04 Our businesses in New Zealand are Blackwoods 10.5 8.6 5.4

Paykels, Packaging House, NZ Safety and Protector 1 July 99 - 30 June 04 (as at 30 September 04) Safety Supply. We employ about 3,300 people. *Contractor hours and LTIs included

centres and branches. Data from this Overview tracking process will enable us to identify The main challenge facing our business on and assess potential opportunities for an ongoing basis is the safe operation of reducing our energy and water usage. We NUMBER OF WORKERS COMPENSATION CLAIMS our distribution centres and branches in a intend to further improve data collection way that minimises any adverse impact on by including New Zealand distribution 02 03 04 the environment or the communities in centres and branches in the tracking 162 152 177 which we operate. process next year. In dealing with this challenge, the two The two main safety areas on which we main environmental areas on which we focused our attention during the year were focused our attention during the year were conducting branch-specific risk storage and handling of dangerous goods assessments and implementing and establishing systems to track our Occupational Health Safety and energy and water usage. Environment (OHSE) improvement plans. Our distribution centres hold the majority Risk assessments were conducted and of our dangerous goods and both the identified significant hazards, such as Western and Southern Regions began the manual handling activities, allowing risk task of reviewing the processes and mitigation strategies to be put in place. implementing changes for the larger OHSE improvement plans were distribution centres. The Northern, Central implemented focusing first on increasing and New Zealand Regions plan to begin the knowledge of OHSE issues among our reviewing their dangerous goods storage employees and labour hire contractors and for larger distribution centres in the secondly on implementing preventative coming year. strategies aimed at reducing our Lost Time We implemented a process for tracking Injury Frequency Rate (LTIFR). the energy usage of all our branches in In order to collect accurate safety, health Australia and New Zealand and water and environmental data for each of our usage of our Australian distribution distribution centres and branches in

54 SOCIAL RESPONSIBILITY REPORT 2004 (For website addresses, see page 60) 03 04< Australia and New Zealand, an OHSE 2003 REPORT PRIORITIES OUTCOMES survey was conducted and surveys were returned from all our distribution centres Improve our safety performance by at Not achieved. LTIFR of 5.4, down from 8.6 and branches. least halving our LTIFR each year with a last year. There were 32 LTIs. Unless otherwise stated, data provided target of zero LTIs. is for our combined Australian and New Reduce the number of manual handling Not achieved. Seventy-five manual Zealand businesses based on the survey injuries. handling injuries compared with 69 last responses. year. Of these, 52 were recorded in Australia compared with 59 last year and BUSINESS 23 were recorded in New Zealand compared with 10 last year. The increase MANAGEMENT in New Zealand is partly due to more employees arising from the Paykels Training acquisition. Induction procedures have been through a Ensure that each of our branches Achieved. Each branch has now review process and as a result a new implements an OHSE improvement plan. implemented an OHSE improvement plan. induction programme has been developed. A project plan for its implementation has Implement the “PeopleSoft” human Not achieved. The OHSE module of been drafted and the programme began resources information system. “PeopleSoft” and was implemented in with training for our OHSE coordinators in August 2004. July 2004. Improve our data collection procedures Achieved. We collected data on existing ENVIRONMENTAL to identify opportunities to increase recycling initiatives throughout our Our induction programme includes recycling. distribution centres and branches. information on recycling and reuse Improve the data collection process for Achieved. We reviewed the survey content initiatives and energy conservation. Our this report. to ensure more relevant data was environmental policy is communicated to collected from our distribution centres and all new employees in a handbook and branches. during induction.

HEALTH AND SAFETY New South Wales WorkCover-accredited formal licensing is not required, we have addressed this issue on a risk basis and are Occupational Health and Safety (OHS) internal training and education underway confident that we will see the remaining awareness training for supervisors and to ensure operators are competent. smaller branches complete an emergency managers began in Sydney in April 2004 In New Zealand, attendance at our OHS evacuation plan commensurate with their with 11 employees attending. seminars continued with 1,539 people risk level over the next year. Training in the OHSE management participating during the year, including our A need for qualified first aid attendants responsibilities and accountabilities employees and members of the general was identified during last year’s OHSE procedure has begun across our Southern public. In addition to the topics covered survey and as a result more than 37 Region in specific training sessions and last year, several new seminar titles were employees have now been trained or have elsewhere as part of the OHSE induction offered, including: attended refresher courses where required. process. • preventing hearing loss at work; Training sessions in the correct selection Training and education has been • stress and fatigue awareness and and use of fire fighting equipment were undertaken for the policies and procedures management in the workplace; conducted in our Western, Central and that make up our integrated OHSE Southern Regions. • chemical hazards in the workplace; management system. Topics included: • safe working at heights; • accident/incident reporting; Compliance • isolation lockout tag out; • first aid training; and ENVIRONMENT • security procedures; • spill response training. We are not aware of any non-compliance • injury management; and Our primary labour hire contractor, Skilled during the year with environmental • emergency response. Engineering, conduct an induction with legislation or other environmental their personnel prior to them commencing Forklifts are operated at the majority of our requirements. locations with varying levels of operator work with us. licensing requirements applicable. NATIONAL POLLUTANT INVENTORY (NPI) Accredited operator training for forklift EMERGENCY We did not use any of the substances listed licensing is undertaken where required. We have seen an increase in the number of under the NPI during the year and Safe operating procedures developed by our emergency evacuation plans implemented therefore we are not required to report division are used to meet any site-specific and 124 branches now have such plans in under the NPI. training obligations. In those areas where place. As indicated last year, we have

SOCIAL RESPONSIBILITY REPORT 2004 55 INDUSTRIAL & SAFETY

HEALTH AND SAFETY licences and approvals are secured in We have branches across Australia and accordance with building regulations. New Zealand and we need to comply with Recent projects include the renovation of varying occupational health, safety and the second warehouse building at the environmental legislation. Smithfield distribution centre and a new distribution centre in Scorseby in Victoria. In New South Wales our OHSE management system passed an audit Two of our dangerous goods licensed sites against the New South Wales WorkCover within our Southern and Western Regions Premium Discount Scheme criteria. Level began the task of reviewing their four of the audit scheme was attained dangerous goods processes and during this process allowing us to receive implementing some changes for their larger the full premium benefit. distribution centres. The Northern, Central and New Zealand Regions are planning to Our OHSE Improvement Plans address begin the task of reviewing their dangerous various compliance issues applicable to our goods storage for their larger distribution operations around Australia and New centres next year. Zealand including: A dangerous goods licence was held during • identification of hazards and assessment the year by our Blackwoods/Atkins Karratha of the associated risk; branch in Western Australia for its gas • dangerous goods storage and handling; exchange agency which is part of the branch operations. • electrical tagging and testing of equipment; and Specific licences for the sale of scheduled poisons were held during the year by our • training and appropriate licensing for Scorseby branch. Volumes of dangerous moving plant. goods that are held by our other Victorian We are not aware of any non-compliance branches do not exceed the limit David Naufahu operating a during the year with health and safety requiring registration of the goods with legislation or other health and safety Victorian WorkCover. high rise stock picker at requirements, other than those matters set Industrial and Safety’s out below. new warehouse in Management Smithfield, New South Two corrective action reports were issued from WorkCover relating to two of our systems Wales. Victorian branches. Matters raised in these INTEGRATED MANAGEMENT SYSTEM > reports were: • traffic management; Our integrated management system was transferred to a new enterprise portal. This • forklift/order picker operations; will allow improved accessibility for • manual handling; employees to the most current documents • operator certification; and that comprise our management system. • pallet racking safety. All OHSE aspects of the management system are communicated to employees The report concerning our North Geelong through our enterprise portal accessible branch has been satisfied with a final from a dedicated OHSE homepage, clearance issued by the inspector in ensuring current information is available January 2004. The second report, relating to all employees. to our Altona branch, is being addressed in consultation with the inspector. Our integrated safety, health and environmental management system has On 30 June 2004, the New South Wales undergone further development throughout WorkCover Authority issued three the year with the addition and improvement notices on our second implementation of new procedures for the warehouse at our Smithfield distribution following matters: centre in relation to fire hose servicing, forklift security and ergonomics. Corrective • pallet racking safety inspection; actions are currently being completed in • incident reporting; consultation with the inspector. • cash in transit; LICENSING AND APPROVALS • armed hold up; and Where the construction of a new site or • branch opening and closing. major renovation of an existing site is proposed, professional project managers are engaged to ensure all relevant government

56 SOCIAL RESPONSIBILITY REPORT 2004 INDUSTRIAL & SAFETY

The management system incorporates distribution centres and branches and was water usage of all of our Australian policy, procedure, risk management and the extrapolated without taking account of distribution centres and branches. Data accident/incident reporting and different emissions factors for different from this tracking process will enable us to investigation process for health, safety and regions. This year we have calculated identify and assess potential opportunities environmental matters. greenhouse gas emissions based on our for reducing usage. We intend to further estimates (using all available data) for improve data collection by including New The hazard and near miss reporting process each region where emissions factors vary Zealand distribution centres and branches provides for safety and environmental according to the region. in the tracking process next year. reporting and requires senior management review of the identified corrective actions. Our direct greenhouse gas emissions during Using available data we estimated total Our audit and inspection procedures cover the year from our vehicle fuel use and water consumption in our Australian both environmental and safety monitoring natural gas use were estimated to be 9,060 distribution centres and branches to be requirements. tonnes of carbon dioxide equivalent. approximately 118 megalitres. The protective clothing, safety products and In addition, our indirect greenhouse gas Our total water consumption in the graphics factories in New Zealand are all emissions during the year from imported Australian businesses per hundred thousand currently accredited to the AS/NZS 4801- electricity were estimated to be 17,145 dollars of sales was estimated to be Occupational Health and Safety tonnes of carbon dioxide equivalent. 13,160 litres. Management Systems Standard. Our greenhouse gas emissions were due Our primary water source is scheme water. Our largest labour hire contractor, Skilled to electricity use (approximately 65 per Engineering Limited, has achieved cent), fuel use for our vehicles certification of their OHS management (approximately 28 per cent) and gas use system to AS/NZS 4801. (approximately six per cent). Our total (direct and indirect) greenhouse QUALITY SYSTEM gas emissions per hundred thousand dollars In New Zealand, our protective clothing of sales were estimated to be 2.37 tonnes < and safety products factories have current of carbon dioxide equivalent. ISO 9000 quality system certification. The only other source of greenhouse John McCutcheon filling an order using a scissor POLICY gas emissions of which we are aware related to waste disposed off-site and as lift trolley at Mullings Current policies available and in use as part we did not have an accurate measurement Fasteners distribution of our integrated management system of waste we have not estimated centre in Kewdale, include: associated emissions. Western Australia. • Occupational Health and Safety; Our calculation of greenhouse gas • Environmental; emissions used estimates for electricity, natural gas and fuel consumption based on • Rehabilitation; and available data. As we do not have a readily • Health Assessment. available breakdown of electricity and The OHS policy is aimed at creating and natural gas consumption by region, in maintaining an environment that is safe for calculating greenhouse gas emissions we all employees, contractors, visitors and the have allocated consumption based on general public in order to achieve our distribution centre and branch numbers in target of minimising accidents, injuries and each of the relevant regions. occupational illnesses. OTHER EMISSIONS Our environmental policy outlines our We are not aware of any emissions of commitment to minimising adverse ozone-depleting substances. effects on the environment as result of our operations. NOISE No noise related issues or potential ENVIRONMENTAL problems have been identified through our risk management process. Air GREENHOUSE GAS EMISSIONS Water The figure of 98,553 tonnes of carbon CONSUMPTION dioxide equivalent we reported for Our main use of water during the year greenhouse gas emissions in this report related to kitchens and bathrooms. None of last year may have significantly overstated our distribution centres or branches used our emissions because it was based on an significant amounts of water. unrepresentative sample of our We implemented a process for tracking the

SOCIAL RESPONSIBILITY REPORT 2004 57 INDUSTRIAL & SAFETY

REUSE AND RECYCLING Given the type of business activities that we conduct and our limited water usage, recycling or reuse of water is not a practical option for us at this stage.

DISCHARGES TO SURFACE AND GROUNDWATER Our newly renovated second warehouse building at the Smithfield distribution centre installed a storm water detention tank as part of the construction project. This retention tank allows large volumes of storm water collected from roof discharge to be released gradually into the storm water system.

WASTE This is the first time that we have attempted to quantify our waste. A purpose–built conveyancing system was Resource use SOLID WASTE installed at the Protector ENERGY Using available data we estimated our total Alsafe distribution centre Our main use of energy related to electricity solid general waste stream during the year at Smithfield. used at our distribution centres and other to be approximately 112,000 cubic metres branches and fuel for our vehicles. > prior to compaction. We have estimated We implemented a process for tracking the this figure based on a sample of the waste energy usage of all our branches. Data from generated at selected distribution centres this tracking process will enable us to and branches. None of this waste is RECYCLING INITIATIVES identify and assess potential opportunities recycled, but this estimate does not include Wherever possible, we reused packaging for reducing usage. packaging that is reused for customer materials to despatch goods to our deliveries or other materials that are Total energy consumption for the year was customers, but it was not practicable recycled as described below. We will estimated to be 180,684 gigajoules. to record. endeavour to implement systems to more Our total energy consumption per hundred accurately record the amount of waste The distribution centre at Canning Vale in thousand dollars of sales was estimated to generated during the next year. Western Australia implemented a co- be 15.9 gigajoules. mingling recycling programme for both the Our total solid waste disposed of to landfill warehouse and office. This programme Our energy sources are detailed below. per hundred thousand dollars of sales was allows a wide variety of different materials estimated to be 9.9 cubic metres. to be recycled. FUEL We investigated the practicality of Petrol and diesel accounted for The Blackwoods Regency Park branch in becoming a signatory to the National approximately 56 per cent of our total South Australia collects used printer Packaging Covenant. Given the stage of our energy consumption by gigajoule. Our cartridges for recycling. management system implementation, we petrol and diesel consumption was decided to focus on our existing recycling Our Dandenong steel processing branch in estimated to be 2,917 kilolitres and 43 programme rather than undertaking a new Victoria disposes of steel cut scrap waste kilolitres, respectively. external programme. through a recycling contractor. ELECTRICITY LIQUID WASTE Electricity accounted for approximately The only locations which generated liquid Land 40 per cent of our total energy waste were the Wetherill Park (New South CONTAMINATION consumption by gigajoule. Our electricity Wales) and Malaga (Western Australian) We have not conducted any formal consumption was estimated to be branches of Motion Industries which each assessments in this area but we believe 20,341,523 kilowatt hours. have a transmission servicing department that, due to the nature of our business generating gearbox oil waste. The oil was activities, land contamination should not GAS collected for recycling by a contractor. be a significant issue for us. Natural gas and LPG accounted for Cooking oil from our largest distribution approximately three per cent of our centre at Smithfield was collected by an total energy consumption by gigajoule. individual for the purpose of conversion Our gas and LPG consumption was and reuse as diesel fuel for his own use. estimated to be 5,084 gigajoules and 37 kilolitres, respectively.

58 SOCIAL RESPONSIBILITY REPORT 2004 INDUSTRIAL & SAFETY

SAFETY AND branches in Australia and is now used by the increased number of employees arising all levels of employees. Our New Zealand from the Paykels acquisition. distribution centres and branches utilise a HEALTH Our employees are involved in various variation on the divisional hazard reporting materials handling and storage activities LOST TIME process based on the same principle of including unloading, packing, unpacking, Our LTIFR was 5.4 (compared with 8.6 last hazard and risk identification in the and storage of products. When upgrading year) and, during the year, there were 32 workplace and the determination of or constructing a new building, the issue of LTIs. Our Average Time Lost Rate, which appropriate control measures. materials handling is considered using a provides a measure of the severity of such As part of our integrated management risk management approach. Our Scorseby injuries, was 11 (compared with 12 last system, we have a process available for and Smithfield distribution centres have year). These statistics include contractor auditing our OHSE management system. utilised mechanical conveyors to reduce the hours and injuries. Our Southern Region has begun to need for manual handling as far as Safety statistics are distributed and implement this process which highlights reasonably practicable. A key focus over the discussed by management each month and the risks associated with the activities last year has been completing risk reported to our board every two months. at branches. assessments of specific sites to identify risks such as manual handling. WORKERS COMPENSATION During the year we released a checklist for our General and Regional Managers to Equipment appropriate to the materials There were 177 workers compensation utilise when assessing a branch for OHSE handling task is available at our branches. claims reported, relating to occurrences compliance against internal systems. Mechanical and other material handling during the year, compared with 152 General and Regional Managers are aides such as forklifts, pallet jacks and last year. encouraged to use this process to improve trolleys assist in reducing the frequency of their awareness of areas for improvement manual handling. in various branches. Hazard and risk Pallet racking designed for warehousing is installed at distribution centres and PROGRAMMES EMERGENCY RESPONSE branches throughout Australia and New Our annual OHSE survey was completed by We have committed to reporting on our Zealand. Other systems of storage such as all of our distribution centres and branches crisis management processes through a risk conventional warehouse shelving and throughout Australia and New Zealand. The review compliance report to be prepared in racking are installed according to the National OHSE Manager and Regional December 2004. It will include the product type. A Pallet Racking Safety OHSE Coordinators completed a review of likelihood of occurrence and possible Inspections Procedure and associated last year’s survey process resulting in outcomes of various emergencies. A risk checklist was developed during the year to improved relevance and accuracy for data management workshop will be conducted assess the safety of existing racking. collected this year. We have acknowledged with our senior managers in October by an the varying sizes, types and associated risks external crisis management consultant. of our outlets by developing a separate survey document for each of large branches MATERIALS HANDLING AND STORAGE and distribution centres, medium-sized We had 75 manual handling injuries branches and small shop front branches. compared with 69 last year. Of these, 52 The hazard/near miss/incident reporting were recorded in Australia compared with system has been successfully implemented 59 last year and 23 were recorded in New throughout our distribution centres and Zealand compared with 10 last year. The increase in New Zealand is partly due to

Operating a safety swing gate on a mezzanine level in the Mullings Fasteners distribution centre at Kewdale. >

SOCIAL RESPONSIBILITY REPORT 2004 59 INDUSTRIAL & SAFETY

RISK ASSESSMENT Communication Detailed site-specific risk assessments were developed further during the year. NEWSLETTERS AND REPORTS We have risk assessments for 114 of our Our internal newsletter ‘WISBANG’ is Australian branches which recommend communicated monthly to all employees control measures that need to be put in through our portal communication system. place. Remaining branches have the OHSE performance is reported in the completion of a risk assessment on their newsletter to ensure employees are kept action plan to be implemented under the updated with current OHSE status and direction of branch and regional events. management. In New Zealand, 65 branches have completed hazard assessments in line Our Protector Alsafe trading stream also with legislative requirements. had its own national two-monthly internal newsletter to specifically report on the An assessment of the activities associated performance of the business including with the Blackwoods Trade Fair, held in OHSE performance. December 2003, was conducted to identify significant risks for employees, exhibitors, WEBSITE customers and other people involved in the Information about our operations, including event. Control measures such as OHS Material Safety Data Sheets for specific briefings for our employees were products in our range, is available from the undertaken to ensure the risks involved following websites: with unfamiliar tasks were reduced. www.blackwoods.com.au EMPLOYEE WELLBEING www.blackwoodspaykels.co.nz Our integrated OHSE management system www.motionind.com.au includes policies to address various www.bakers.net.au employee wellbeing issues including: www.protectoralsafe.com.au www.protectorsafety.co.nz • smoking; www.packaginghouse.co.nz • health assessment; www.nzsafety.co.nz April Ridley from Protector Alsafe, using a hands-free • drugs and alcohol; and COMMUNITY SUPPORT telephone headset which • rehabilitation. We have continued to provide support to a helps reduce neck and Our Employee Assistance Programmes large number of community and social shoulder tension. (EAP) in Australia and New Zealand organisations. Examples of these are: continue to be accessed by our employees. • Cancer Fund relay for life; > The counselling and consulting services offered by our EAP providers is • Variety clubs; professional, confidential and free of • Lions clubs; charge to employees and members of their • Westpac Rescue Helicopter; and immediate families. • Freemasons Victoria for “Working Tools for East Timor” project. COMMUNITY At the Blackwoods Trade Fair held at the Olympic site in Homebush during December STAKEHOLDERS 2003, a golf putting area was constructed Our stakeholders include our employees, where we were able to raise a total of our customers, our suppliers and other $11,000 which was donated to the contractors, relevant government agencies, Westmead Children’s Hospital. the communities in which we operate, and We provided awards in the form of shareholders in our parent company, merchandise and cash prizes for Apprentice Wesfarmers Limited. of the Year and other training excellence awards through our Protector Alsafe FEEDBACK/COMPLAINTS Rockhampton, Bakers Hamilton and We have not received any written OHSE- Blackwoods Lismore branches. We donated related complaints during the year. student prizes to Wodonga TAFE through our Protector Alsafe Albury branch.

60 SOCIAL RESPONSIBILITY REPORT 2004 INDUSTRIAL & SAFETY

PRIORITIES FOR THE FUTURE

≥ IMPROVE OUR SAFETY PERFORMANCE BY AT LEAST HALVING OUR LTIFR EACH YEAR WITH A TARGET OF ZERO LTIS.

≥ CONDUCT TRAINING FOR THE “PEOPLESOFT” OHSE MODULE.

≥ IMPLEMENT AN ENERGY REDUCTION STRATEGY.

≥ ESTABLISH ACCURATE MEASUREMENT SYSTEMS FOR WASTE.

≥ CONDUCT REVIEWS OF MAJOR DANGEROUS GOODS STORAGE AREAS. Project management included Inside the redeveloped ≥ REDUCE THE MANUAL HANDLING securing and assessing risk warehouse at Smithfield. INJURY RATE. management evidence from proposed > contractors. Contractors provided ≥ IDENTIFY OPPORTUNITIES TO safety management plans and safe INCREASE RECYCLING. work method statements as part of the tendering process ensuring the risks A major renovation of a and appropriate controls associated 13,000 square metre with construction had been identified. second warehouse building They attended safety briefings prior to at our distribution centre work beginning. These briefings in Smithfield was communicated potential hazards and undertaken in October 2003 our commitment to maintaining safe to transform it into a and healthy workplace. No contractor injuries were reported for the duration multi-branded warehouse of the project. facility for three trading A second phase of risk assessment streams – Blackwoods, was undertaken to identify risks Motion Industries and associated with storage and order Protector Alsafe. picking activities in the renovated warehouse. Reducing manual handling activities was achieved by the installation of a conveyor system. This newly renovated warehouse will become the OHSE benchmark in our Central Region which covers New South Wales and the Australian Capital Territory.

SOCIAL RESPONSIBILITY REPORT 2004 61 Environmental Advisor Mark Germain inspecting sedge grasses at the CSBP nutrient-stripping wetland, Kwinana, Western Australia. We are one of Australia’s major suppliers of chemicals, fertilisers and related services to the mining, minerals > processing, industrial and agricultural sectors. We operate a major industrial complex at Kwinana in Western Australia and other complementary facilities in LOST TIME INJURY regional areas and employ more than 500 people. CSBP FREQUENCY RATE Chemicals’ core products include: ammonia; ammonium 00 01 02 03 04 nitrate; sodium cyanide; chlorine; caustic soda and 1.7 5.8 8.8 5.4 2.4 1 July 99 - 30 June 04 (as at 30 September 04) sulphuric acid. CSBP Fertilisers manufactures, imports *Contractor hours and LTIs included and distributes an extensive range of phosphate, nitrogen and potassium fertilisers, in blended and liquid form. The operations of our sodium cyanide production joint venture, Australian Gold Reagents Pty Ltd, are also NUMBER OF WORKERS included in this report. COMPENSATION CLAIMS 00 01 02 03 04 Overview We established a pilot nutrient stripping 39 33 34 22 19 The main challenge facing our business on wetland which will assist in further an ongoing basis is the safe operation of reducing nitrogen in our wastewater. our facilities in a way that minimises any Construction of the Water Corporation’s adverse impact on the environment or the Kwinana Water Reclamation Plant (KWRP) communities in which we operate. progressed during the year. The ammonia/arsenic groundwater In dealing with this challenge, the three treatment plant at our Kwinana site was main environmental areas on which we commissioned during the year. focused our attention during the year were managing the groundwater at our The two main safety areas on which we Bayswater site and progressing with focused our attention during the year were remediation plans, constructing our pilot safety awareness programmes aimed at wetland and supporting the development of reducing workplace injuries and employee the Kwinana Water Reclamation Plant, and training and development. commissioning our ammonia/arsenic Reducing our workplace injuries involves a groundwater treatment plant at Kwinana. commitment from every employee. We A system to intercept groundwater prior to achieved a reduction in injuries and we it migrating across the southwest boundary believe that this is due to an increased of the Bayswater site was implemented in commitment to safety across the business. March 2004. We have seen a pleasing 32 per cent

62 SOCIAL RESPONSIBILITY REPORT 2004 www.csbp.com.au 03 04< decline in the number of workplace injuries 2003 REPORT PRIORITIES OUTCOMES this year and achieved our target of at least halving our LTIFR. At least halve our LTIFR and continue Achieved. Our LTIFR for employees was 1.9 This year saw the continued development reducing workplace injuries. compared with 4.8 last year. We reduced of our training and development our workplace injuries by a further 32 per programme with the primary focus being cent from 50 to 34. on ensuring operator competencies are Continue projects working towards Achieved. Our $600,000 pilot nutrient maintained. The development of more reducing contaminant emissions, stripping wetland commenced operation in efficient and consistent training was particularly at Kwinana through the June 2004. The KWRP was commissioned investigated and resulted in the development of several CD ROM Kwinana Water Reclamation Plant in August 2004. training packages. (KWRP) and a planned nutrient stripping wetland.

BUSINESS Obtain endorsement for our four revised Partly achieved. Three of the safety reports safety reports for our major hazard have been endorsed and the fourth is with MANAGEMENT facilities. the DoIR for consideration.

Continue to work safely and effectively Achieved. We continued to develop Training to deal with our historic wastes by 2006. options for dealing with our historic waste Our training matrix allows for each stockpiles. business unit to identify training requirements for each employee in the Increase the use of recycled water and Achieved. We increased the use of recycled operations areas. The matrix provides team contribute to reduced scheme water use water at our Kwinana site. We continued leaders and managers with cost estimates in Kwinana. to provide artesian water to Tiwest which for budgeting and working hours required contributes to a reduction in scheme to achieve the planned training. water use in Kwinana. Two traineeships have been established in the operations area. The trainees are Maintain our contribution to the social Achieved. As a major employer and a enrolled in Certificate III in the National wellbeing of the Western Australian major purchaser of goods and services in Chemicals, Hydrocarbons and Oil Refining community. Western Australia we continue to have a training package. strong community programme based around our major operations. This year saw the introduction of generic competency training modules for safety and environmental issues. These are incorporated that our employees understood what they into the current training modules. could do to limit the impact that their work environment had on their bodies. ENVIRONMENTAL All new employees and contractors are During the year we began the development required to complete our induction of an environmental training plan to assist programme to ensure all people on our in ensuring that our existing environmental sites have a sound understanding of safety training is conducted in a coordinated rules and systems. A general induction is manner. We will utilise existing internal followed up with an area specific induction communication methods to assist with that ensures all personnel are aware of the implementation of this plan which will hazards in their particular place of work. continue to develop employee This year we developed our first CD ROM environmental awareness. induction package for the sodium cyanide and chlor alkali areas and we will use this HEALTH AND SAFETY technology for other training packages in First aid training is available to our the future. It is a significant advance in employees with classes conducted regularly. assuring quality and consistency in our This remains a priority as it provides training delivery. Training for all new safety personnel who can apply first response representatives was undertaken by techniques in an emergency. It is also a accredited providers. benefit to employees’ families and the All employees undergo vocational training Ron Wilkie and Mark community. to meet the requirements of their position Germain analysing treated Strain injuries account for more than 30 with competencies measured against water from the arsenic per cent of all of our workplace injuries, so national standards where available. A groundwater remediation a continued focus on manual handling comprehensive competency training project at Kwinana. training is vital. Along with ongoing reassessment programme is in place for all refresher training conducted at “tool-box” process operators and maintenance > meetings this year, we conducted strain employees to ensure skills remain current prevention training. It focused on ensuring and up to date with any changes.

SOCIAL RESPONSIBILITY REPORT 2004 63 CSBP

EMERGENCY Compliance of the time for the month of November The focus of our emergency response due to failure of a dilution probe. The function remains firmly on the ability to ENVIRONMENTAL analyser has since been upgraded and we have reviewed our contract with respond to an industrial or medical A number of environmental laws and the maintenance providers. Process emergency at our operating sites and to regulations apply to our business trends during the two outage periods provide responsible stewardship of our operations. We are not aware of any non- indicate that there was no increase in products in the community. compliance with environmental legislation NOx emissions. Where our products are involved in off-site or other environmental requirements, incidents we have the capacity to provide except as set out below and in the noise • One related to a small exceedance of our technical and operational support to our section of this report. groundwater abstraction limit at Bibra Lake in Western Australia. We have clients and to government agencies. During We reported 16 potential non-compliances installed a flow meter on the line and the year we conducted two exercises to the Department of Environment (DoE) reviewed our irrigation schedule. involving customers, service providers, local during the year. communities and emergency services • One related to a small exceedance of • Five related to stack testing on our agencies. Members of the emergency copper in the average daily composite sodium cyanide solids plant at Kwinana response team also participated in two sample of discharges to Cockburn Sound. major desktop exercises with other which had emissions of ammonia higher The DoE has advised that no further action industries. than the individual stack limit. On each occasion the emissions for the entire will be taken with regard to all of the The structure of the first response production process, including the two above matters other than that related to competencies was finalised and training plans liquids plants, were less than the total fluoride emissions at Albany and the copper were put in place for all operational staff. allowable emissions for the entire discharge to Cockburn Sound which are Four additional fire alarm systems, covering production process. still being discussed with the department. No further action is being taken in relation eight buildings, and an upgraded main fire • Two related to emissions of nitrous to each of the outstanding matters referred panel were installed at Kwinana. oxides from the auxiliary boiler on the to in this report last year. At Kwinana and our regional sites we ammonia plant at Kwinana. On both maintained strong links with Western occasions the tests were repeated and NATIONAL POLLUTANT INVENTORY (NPI) Australia’s emergency management the result were within licence limits. Emissions were estimated for substances authorities as a key part of our • Two related to emissions of fluoride from listed on the NPI. Data for the 2002/2003 response strategies. the granulation plant at Kwinana during reporting period was submitted to the DoE. We are actively involved in Local a trial conducted using new raw Detailed information is available at: Emergency Management Committees for materials. The DoE was notified of our www.npi.gov.au. Except for nitric acid both Rockingham and Kwinana as well as intent to conduct this trial prior to it emitted from our Kwinana site which was being a part of the Kwinana Industries commencing. Emission sampling during ranked as “medium”, all our substance Mutual Aid group and the Kwinana the trial showed emissions above the emissions for last year were ranked by the Industries Public Safety Group. licence limit. In each case technical staff NPI as “low”. < supervised the process and the trial ceased when it became clear that the HEALTH AND SAFETY fluoride emissions were an issue. A major maintenance shut We are not aware of any non-compliance down of the ammonia plant • Two related to emissions of fluoride from with health and safety legislation or other during the year required the superphosphate plant at Albany health and safety requirements and nor are detailed planning and regular where the stack was not working as we aware of any official enquiries, team meetings. designed due a malfunction of a drain. prosecutions or official complaints against After this was corrected tests were us in relation to our occupational health within licence limits. and safety activities. • One related to an emission of All regulations and standards that apply to particulates from the prilling plant pre- our business are monitored by Freehills, a dryer stack at Kwinana. The test was national law firm, which provides quarterly performed when the production rate was updates ensuring that we are aware of all unusually low. The test was repeated changes. when production had increased and was A gap analysis audit of our Safety below licence limits. Management System (SMS) against AS/NZ • One related to the sample line for 4801 was conducted in April 2004. discharges to Cockburn Sound not being Corrective actions were raised as a result of changed over for one day. The sample the audit and implementation of these therefore represented two days of actions has begun. Internal audits of our discharge, but was below licence limits. Safety Action Plans occur in all operational • One related to the NOx analyser on the areas annually. The results of these audits number two sodium cyanide plant at are presented to the Executive Safety and Kwinana operating less than 90 percent Health Committee.

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All emergency response team members two satisfactory external audits. We also were medically and physically assessed and maintained an internal audit programme considered fit for this role in accordance and performance review on our quality with the requirements of Department of system. We conducted 19 internal audits Industry and Resources (DoIR). during the year. Operational staff undergo entry and exit The introduction of the bronze valves on audiometric testing in accordance with cylinders at the chlor alkali plant is WorkSafe guidelines. complete. These valves reduce the potential External audits of the Safety Reports for for corrosion and the need for our Major Hazardous Facilities (MHF) occur maintenance. every 18 months. The Kwinana laboratory was re-assessed by the National Association of Testing LICENSING AND APPROVALS Authorities (NATA) and accreditation was All relevant licences including continued. A number of issues that relate Environmental Protection Act, Rights in to the new quality management systems Water and Irrigation Act, Poisons Act, standard ISO/IEC 17025 were raised. The Dangerous Goods and National Industrial main one was in relation to measurement Chemicals Notification Assessment Scheme uncertainty for analytical procedures. We licences were renewed. In addition, a will complete this project by the NATA number of approvals were sought relating deadline of October 2004. Of the 12 urgent My linh Tran (left) and An to specific projects. These included the: actions relating to AS2243 referred to in Tran at the Soil and Plant last year’s report 11 have been completed. • upgrading the ammonia plant at Analysis Service at Bibra Kwinana to enable an increase in The laboratory staff have taken an active Lake in Western Australia. production to 745 tonnes per day; role in NATA and the Royal Australian Chemical Institute (RACI) branch activities. > • increasing storage for solid sodium cyanide at Kwinana; Our soil and plant analysis laboratory at Bibra Lake participates in national • extracting groundwater at our Bayswater proficiency programmes overseen by the Facilities”. These are our ammonia, sodium site as part of the remediation project; Australasian Soil and Plant Analysis Council cyanide, chlor alkali and ammonium nitrate and and international plant analysis plants and associated facilities located at • upgrading our chlor alkali plant at programmes overseen by Wageningen our Kwinana site. As part of this Standard Kwinana. University (Netherlands). each of these facilities has a safety report In each case the relevant approval was which describes the major risks and how SAFETY MANAGEMENT SYSTEM (SMS) granted. they are managed. These reports are Annual Safety Action Plans provided the submitted to the DoIR for endorsement and We also sought to consolidate the basis for safety improvements across our are externally audited on a regular basis. Ministerial Conditions for our ammonia business with each department responsible Our revised ammonia safety report was plant and our sodium cyanide facilities. The for ensuring that its plan was specific to its endorsed this year. former has been completed and the latter is area. This year we introduced a system of well advanced. This year we submitted a further revised self-auditing for support departments with ammonium nitrate safety report to the external audits being conducted on DoIR for endorsement and are awaiting Management operational areas. feedback. The development of our risk and hazard As a producer of raw materials for systems register has progressed. We completed the explosives and a range of other potentially ENVIRONMENTAL MANAGEMENT section on major hazard contributors for hazardous chemicals, we continued our our major hazard facilities and other areas SYSTEM (EMS) focus on security. have been partially completed and entered Our EMS is consistent with the into the Sitesafe database. Through adhering to our values and the international standard ISO 14001. It Responsible Care codes, our business has The management of chemicals on site was continues to assist us in managing some developed and maintains systems and improved this year by the introduction of of our environmental compliance tasks behaviours that commit us to handling and the Chem Alert system. The system provides through an electronic reminder system dealing with our chemical products employees with a user-friendly interface to and in recording actions taken in relation properly at all levels, from sourcing and search, list and report on chemicals to our environmental risks. We do not manufacture through to transport, approved for use on-site and to access to intend to seek accreditation to ISO 14001 distribution and end use. relevant safety data. Chemical surveys have at this stage. been completed in most areas providing a QUALITY SYSTEM summary of the chemicals used. We maintained our certification to AS/NZS We have four major hazard facilities, as ISO 9001:2000 for the chlor alkali and defined under the WorkSafe National ammonium nitrate processes. This involved Standard “Control of Major Hazardous

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OTHER/INTERNAL MANAGEMENT We are an active member of the Fertilizer ODOUR SYSTEMS Industry Federation of Australia (FIFA) During the year we had three odour which enables us to participate in The SiteSafe database is used for the complaints related to emissions from our addressing issues with other manufacturers, recording of all incidents and hazards granulation plant at Kwinana. The importers and distributors. identified in the workplace. The database is emissions were sampled on a monthly basis intranet-based with all steps in the We participated in a Water Corporation and were within all licence limits except on incident management process being trial of a water auditing tool which two non-compliances described earlier in completed online. The system assists in prompts a review of systems and this report. managing actions required as a result of an performance to identify areas for We had two odour complaints related to incident by sending email reminders and improvement to assist in managing water our Albany superphosphate plant where escalating actions that are not completed use. We and the Water Corporation the stack was not working as designed due by the due date. Statistical information is participated in reviewing our existing a malfunction of a drain. These non- easily retrieved from the database to monitoring, management systems and our compliances are described earlier in indicate trends and to track outstanding performance in areas such as water use this report. actions. efficiency. We received a rating of three on a scale of one (poor) to five (excellent). The GREENHOUSE GAS EMISSIONS POLICY exercise was worthwhile and identified areas for improvement such as establishing We are a participant in the Commonwealth We have policies that outline our water reduction targets and conducting Government’s Greenhouse Challenge commitment to environmental, health, water conservation awareness activities. Programme. safety and community issues as part of our We intend to repeat the exercise next year. Our direct greenhouse gas emissions during business operation. In addition we are a the year from sources within our site signatory to the Plastics and Chemical We continue to sponsor the Chair of boundaries and vehicle fuel use were Industry Association (PACIA) Responsible Cleaner Production at Curtin University. estimated to be 1,242,244.1 tonnes of Care programme which has six codes carbon dioxide equivalent, down 0.75 per outlining best practice in the areas of: ENVIRONMENTAL cent on last year. This figure includes the • employee health and safety; following emissions expressed as CO2 • manufacturing safety; During the year we submitted our equivalents : • transport and storage safety; Environmental Quality Assurance Manual to • 696, 542.1 tonnes of nitrous oxide (N2O); • community right to know; the DoE. This manual outlines the methods • product stewardship; and and practices to sample, collect, and • 92 tonnes of perfluorocarbons (PFCs); • environmental protection. manage our environmental information. and We reviewed our conformance to these The DoE has recently released a Draft Code • 143.4 tonnes of sulphur hexafluoride codes through self-assessments during the for monitoring environmental emissions (SF6). and we will engage proactively with the year with satisfactory compliance and some In addition, our indirect greenhouse gas department on this initiative. will be subject to external verification next emissions during the year from imported year. We will be promoting the codes electricity, heat, steam and gas, the production during the next year to improve employee Air and distribution of petroleum products and awareness. Through this association we waste disposed off-site, were estimated to be contribute to developing or commenting on Please note that data in this section is generally obtained from point source 33,626.2 tonnes of carbon dioxide equivalent, a number of relevant policies such as the up 0.34 per cent on last year. Voluntary Code of Conduct for the emissions and will differ slightly from those distribution of ammonium nitrate, the reported as part of the NPI because of the Our greenhouse gas emissions are largely PACIA Carrier Accreditation Scheme in way in which the NPI uses standard due to our ammonia plant (approximately Western Australia and major hazard assumptions, in part, to calculate potential 30 per cent) and nitric acid plant facilities, dangerous goods and security emissions. In some areas we do not exceed (approximately 55 per cent). The reduction issues in the chemicals industry. We are NPI thresholds and we are therefore not in emissions in 2003/2004 related to a actively represented at Board and Council required to report in the NPI. planned shutdown of the ammonia plant level in PACIA. and slightly lower nitrous oxide emissions DUST from the nitric acid plant. Our dust emissions are associated with particulate emissions from our various operating plants, materials loading on our sites and unsealed surfaces. We estimate our dust emissions using the relevant factors from the NPI and we will report them to the NPI in September 2004. Dust from all sources reported under the NPI last year (to 30 June 2003) was 230 tonnes, not 237 tonnes as stated in this report last year.

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FIGURE 1: PRILL PLANT STACK EMISSIONS (GRAMS PER CUBIC METRE) 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 Water

TOWER 0.014 0.013 0.021 0.024 0.028 0.015 0.020 0.019 CONSUMPTION The main use of water at our Kwinana, PREDRYER 0.235 0.177 0.132 0.080 0.186 0.117 0.114 0.111 Albany and Esperance sites related to our DRYER 0.363 0.253 0.138 0.168 0.127 0.145 0.094 0.058 production processes, particularly the Licence Limits: dryer 0.35 g/m3; tower and predryer 0.25 g/m3 cooling towers at Kwinana. Total water consumption for Kwinana, Albany and Our total (direct and indirect) greenhouse Particulate Esperance sites was 4,289 megalitres, up 11 per cent on last year. Total water gas emissions per tonne of fertiliser and Particulate emissions of ammonium nitrate consumption for these sites per tonne of chemical production were estimated to be from our prilling plant were below licence fertiliser and chemical produced was 0.86 tonnes of carbon dioxide equivalent, limits for the dryer and tower stacks (see estimated to be 0.003 megalitres, the same down 0.72 per cent on last year. Figure 1). Our pre-dryer stack had one test as last year. Water sources included scheme marginally above the limit of 0.25g/m3 water (approximately three per cent), NOISE which is described earlier in this report. groundwater abstracted through bores During the year we conducted surveys of We conduct tests on a more regular basis (approximately 97 per cent) and our ammonia and sodium cyanide plants. than required by the licence. We initiated reused/recycled water (approximately 0.5 The noise regulations are in the process of deposition sampling and commissioned the per cent) and demineralised permeate being reviewed to potentially increase the modelling of particulate emissions from the water from Western Power. Of the above industry-to-industry boundary level limits prilling plant outlined in last year’s report. total extraction approximately 800 from 65dBA to 70dBA. If the noise level megalitres was supplied to Tiwest to limits are increased we will comply with Sulphur dioxide displace scheme water. the noise regulations at our boundary. The DoE is consulting stakeholders in regard to During the year we again contributed to The main use of water sourced from the planned changes. the KIC’s SOx ambient monitoring although scheme and bore water at non-production we ceased to be a point source emitter of sites related to domestic use and irrigation. We remain a member of the Kwinana SOx when our Kwinana sulphuric acid plant We have significantly reduced our use of Industries Council (KIC) noise management ceased production in 2000. We will not be scheme water in recent years, see Figure 2 group. Through the KIC we contribute to part of this KIC programme in future. below. the noise modelling for the Kwinana Industrial Area. Next year we will Chlorine We continued to provide sub-artesian contribute to a KIC review of the noise water to Tiwest, a neighbouring industry, to model and conduct noise measurements to Our chlor alert monitoring system was replace the use of scheme water in its verify the model. activated 105 times during the year. These processes. As a result our extraction of sub- monitors are situated throughout the chlor artesian groundwater is higher than it OTHER EMISSIONS alkali plant and sound an alarm when would otherwise be, but results in a chlorine is detected (they are set at levels reduction in scheme water use. We are not aware of any emissions of well below that at which health can be ozone-depleting substances. impacted). Due to the sensitivity of these We have not yet prepared our report to the meters the chlor alerts can often be caused NPI for the 2003/2004 reporting period or by normal operating conditions and finalised our data estimates, however in preparation of equipment for maintenance. 2002/2003 our three largest emissions were Our existing chlor alkali plant storage area carbon monoxide (410,000 kilograms to is being modified to meet current air), ammonia (330,000 kilograms to air standards. and water) and oxides of nitrogen (NOx) (240,000 kilograms to air). Further FIGURE 2: KWINANA SCHEME WATER REDUCTION (KILOLITRES) information is available at: www.npi.gov.au. Except for nitric acid emitted from our 97/98 98/99 99/00 00/01 01/02 02/03 03/04 Kwinana site which was ranked as 785,500 649,836 366,274 276,196 106,843 160,656 101,143 “medium”, all our substance emissions for last year were ranked by the NPI as “low”. (Source: Water Corporation)

Oxides of nitrogen We measure the production of oxides of nitrogen in our sodium cyanide, nitric acid and ammonia plants. All plants operated within licence limits for these emissions. Our total oxides of nitrogen emissions are calculated from measurements of emissions from these plants and calculations from other sources such as motor vehicles.

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REUSE AND RECYCLING FIGURE 3: HEAVY METAL DISCHARGES TO COCKBURN SOUND (KG/YR) Construction of the Water Corporation’s 99/00 00/01 01/02 02/03 03/04 Kwinana Water Reclamation Plant (KWRP) progressed during the year. The project will Arsenic 1,232.7 11.9 5.9 4.6 1.5 enable industry to use treated wastewater Copper 333.8 102.6 5.7 1.4 1.7 from the Woodman Point treatment plant Manganese 237.3 98.7 16.9 24.5 16.8 which will in turn reduce the industrial use of scheme water. KWRP began operation in Molybdenum 525.7 145.2 3.4 1.2 0.0 August 2004. As a result, use of Zinc 470.1 589.3 996.1 862.7 295.6 reused/recycled water will increase and use of groundwater will be further reduced. The Targets (kg/yr) for 2003/2004 calculated from the Monthly Average Daily Load limit contained in our EP Act Licence were Arsenic 16.4kg, Copper 87.6kg, Manganese 87.6, Molybdenum 365kg, Zinc 1825kg disposal of wastewater from industry to the Cape Peron Outfall, which is the second phase of the KWRP, is subject to the reticulated mains sewerage system as Environmental Protection Act processes. this will divert all discharges from Princess Waste This second phase will enable discharges to Royal Harbour to a tree farm. We continue SOLID WASTE Cockburn Sound to cease with the to discuss this with the Water Corporation Our total solid general waste stream from exception of rainfall, maintenance or and other industries. Kwinana during the year was estimated to unusual events. At our Kwinana site: be 748 tonnes (approximately 972 cubic We recycle and reuse process waters in • discharges of metals have reduced from metres), down 12 per cent on last year. Of operations within and between our plants. last year with the exception of copper this amount, 28 per cent was recycled and which increased slightly from 1.4 kg last 72 per cent was disposed of to landfill. DISCHARGES TO SURFACE AND year to 1.7kg this year (see Figure 3); Our total solid waste disposed of to landfill GROUNDWATER • nitrogen discharges have increased from per tonne of fertiliser and chemical Activities on all our sites are focused on 38,606 kilograms last year to 40,580 production was estimated to be 0.4 minimising discharges to surface and kilograms this year; kilograms, which was down 0.2 per cent on groundwater which we monitor. last year. • phosphorous discharges have reduced Our Bunbury site captures run-off from 7,252 kilograms last year to 6,368 We continued to reduce our solid waste generated on site for irrigation purposes. kilograms this year; and stockpiles. Our initiatives during the year There were no discharges to the Preston included • fluoride discharges have increased from River. We continue to monitor the Preston 4,927 kilograms last year to 5,327 • disposing of neutralised fluoride- River upstream and downstream of the kilograms this year. containing residues from our Bunbury discharge point. (8,155 tonnes) and Kwinana (997 tonnes) The increase in nitrogen emissions largely Contaminant discharges to Princess Royal sites to approved landfills; related to the commissioning of the Harbour from our Albany site increased ammonia plant following its lengthy during the year. Phosphorous increased maintenance shutdown. We continue to from 85 kilograms last year to 208 review on-site monitoring to determine kilograms this year. Nitrogen discharges nutrient sources that contribute to increased from 2,412 kilograms last year to < off-site discharges. 2,999 kilograms this year. Fluoride discharges increased from 285 kilograms We completed construction of a pilot The gypsum stockpile at last year to 568 kilograms this year, nutrient stripping wetland which will assist Leda, Western Australia. reflecting in part recommencement of in further reducing nitrogen in our fertiliser production. We have investigated wastewater. Wastewater can now be the increase in our discharges and we pumped from the containment ponds to the believe it to be predominantly associated wetland before being returned to the with an overestimate of the flow related to containment ponds for discharge to equipment error. This piece of equipment Cockburn Sound. The wetland is designed has been replaced and we will be to promote biological processes that are discussing this issue with the DoE. expected to reduce nitrogen by up to 50 per cent. The one hectare pilot wetland was During the year we submitted to the DoE a planted with sedge grasses by the Bennett nitrogen effluent reduction plan for Brook Catchment Group. This first cell of discharges from our Albany site. The plan the wetland will be used for two years in summarised our investigations over a order to test combinations of effluent levels number of years and proposed actions to and its efficiency. At the end of two years, address this issue. They include the reuse of we will assess the effectiveness of the wastewater in the process during the wetland and decide whether to proceed production run when the concentration of with up to four cells, covering more than nitrogen is highest. This will be initiated in 6.5 hectares. early 2005. Our preferred option for managing the wastewater is discharge to

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• disposing of 2,578 tonnes of bricks from Group website www.wasig.curtin.edu.au our sulphuric acid plant at Geraldton to and will be reviewed and updated during an approved landfill; the next year. • disposing of 145 tonnes of pond solids from our Geraldton site to an approved LIQUID WASTE landfill; Our total liquid general waste at Kwinana discharged to Cockburn Sound and disposed • disposing of 1,117 tonnes of bricks from off-site during the year was estimated to our sulphuric acid plant at Kwinana to be 963,651 kilolitres, down 7.1 per cent on an approved landfill; and last year. This figure includes rainwater • disposal of 2,800 tonnes of sulphur filter runoff. Liquid waste disposed off-site is residues from our Kwinana site to an taken to a licensed treatment facility. approved landfill. Our wastewater reuse between plants at We also removed six underground tanks Kwinana was estimated to be 11,500 from our Kwinana site and four from kilolitres, down 4.3 per cent on last year. Bayswater. We now have no underground We also reuse wastewater within most tanks on these sites. plants, but we do not currently measure We continue to actively pursue beneficial this. We plan to implement a method of use options for the stockpile of gypsum at measuring wastewater reuse within plants our Wellard Road site in Leda. We have an during the next year. agreement with Manna Enterprises to blend Our liquid waste at Kwinana comes the gypsum with lime kiln dust and market primarily from the cleaning of drains and this product as a soil ameliorant. Relevant sumps. The need for disposal increases in environment and planning approval winter due to the collection of rainwater in applications have been submitted for the some sumps and occasional pump failure. project which we hope to begin in the latter At Kwinana we sourced additional liquid part of 2004. Alcoa continues to take waste storage during the year to address Kane Bennett taking soil substantial quantities of gypsum from the risks associated with the limited liquid samples at Kwinana as part stockpile, removing 11,495 tonnes this year. waste disposal options in Western of the preliminary site Alcoa uses the gypsum as a soil conditioner Australia. We are involved in the Core investigations required by in its residue disposal ponds to enhance and Consultative Committee on Waste which Western Australia’s promote rehabilitation. A large portion of aims to provide advice and promote open contaminated sites legislation. the property contains a functional wetland discussion about waste management issues. system. It is our intention to eventually This initiative specifically aims to facilitate > donate this land to CALM for conservation a stakeholder involvement program to purposes when the gypsum is removed. establish new and better hazardous waste We began modifying our procedures to treatment facilities in Western Australia, accommodate the revised Environmental within a broader framework of minimising Land Protection Act Controlled Waste hazardous waste generation and regulating Regulations which came into effect on 1 hazardous waste more effectively. FLORA AND FAUNA July 2004. Our Albany site discharged 129,658 We continued to participate in the Feral Pigeon Control Group at Kwinana which We audited six disposal sites we used, with kilolitres of wastewater to Princess Royal seeks to control the numbers of these birds. a view to ensuring that each site Harbour, up 40per cent on last year. This The pigeons compete with and displace appropriately manages associated figure includes rainwater runoff. many of the local sea birds. We manage environmental issues and regular audits Our total liquid waste from our Kwinana, this issue on our Kwinana site through will continue to be conducted. Albany and Esperance production sites preventative actions to try and minimise discharged and disposed off-site per tonne We are an active member of the KIC Eco roosting and breeding on the premises and of fertiliser and chemical production was Efficiency Group (previously the KIC by limiting potential food sources. This is estimated to be 0.74 kilolitres, up 0.4 per Sustainability Group). The group aims to achieved through regular inspections and cent on last year. contribute to leadership in sustainable by restricting access to roosting areas development by improving the overall eco- Liquid waste was not a major issue for our within buildings. efficiency of the Kwinana Industrial Area. Bunbury and Geraldton sites. We completed 18 of the 21 actions CONTAMINATION outlined in our cleaner production action RECYCLING INITIATIVES We are in the final stages of completing plan which is part of our commitment We are committed to continuing to reduce the Public Environmental Review (PER) for to the Western Australia Cleaner the amount of waste being disposed the remediation of the former Cresco Production Statement. The actions off-site. We have a number of reuse and fertiliser site in Bayswater. This will detail included initiatives to reduce water recycling initiatives on-site some including the final remediation strategy for the site consumption, energy use and waste the reuse of waste oil and drums and the which is likely to take four to five years to generated. The plan is available on the recycling of office material, batteries and complete. The document became available Western Australian Sustainable Industry scrap metal. in September 2004 for an eight week public

SOCIAL RESPONSIBILITY REPORT 2004 69 CSBP

comment period. Copies of our completed contaminated soil will eventually improve The wastewater treatment plant for the submissions and work to date are available the quality of the groundwater, but in the ammonia/arsenic groundwater plume at on our website (www.csbp.com.au). meantime we have implemented a system Kwinana was commissioned in May 2004. to recover the groundwater, prior to The plant is designed to extract, treat and The three main issues that require beginning to treat it next year. A system to return the groundwater. Globally, this is the remediation are: intercept groundwater before it migrates first use of this type of treatment • the presence of contaminated soil; across the south west boundary of the site technology in a commercial situation. We • impacted groundwater; and was designed and approved in late 2003 estimate that the remediation of the plume and implemented in March 2004. The will take approximately three years. • considerable quantities of asbestos in recovered groundwater is being re- existing buildings. infiltrated on the site and a lime-dosing The soil contamination is due to the presence treatment plant is being designed that will Resource use of iron cinders (iron oxide) which was a by- remove metal contaminants from the water. ENERGY product of past production of superphosphate The asbestos removal process will be fertiliser at the site and heavy metals. The Our main use of energy during the year conducted towards the end of the site iron cinders contain elevated levels of heavy related to the use of natural gas in our remediation programme, when the metals in some areas. These areas have been ammonia and sodium cyanide plants and buildings are no longer required. identified and will be removed as part of the the use of electricity in our chlor alkali remediation process. Significant work has Other remediation work at the site during plant. been undertaken in an attempt to minimise the year has focused on removing above Total energy consumption was estimated to the amount of material that may have to be ground wastes and materials that do not be 9,698,695 gigajoules, down 0.26 per disposed of to landfill by maximising the form part of the remediation subject to the cent on last year. amount of the material that could be reused PER. The work completed includes: Our total energy consumption per tonne of as a usable product. This work will continue • demolition of the former rock shed fertiliser and chemical production was next year. At a minimum, all material that (adjacent to Railway Parade) and a estimated to be 6.54 gigajoules, down 0.08 exceeds prescribed levels for number of other minor derelict per cent on last year. industrial/commercial land use will be structures; removed to enable the safe redevelopment of Our energy sources are detailed below. • removal of all underground fuel storage the site. tanks by licensed contractors including FUEL Over a number of decades, the environmental validation test work Petrol and diesel accounted for contaminated material has affected confirming that the surrounding soil is approximately 0.2 per cent of our total groundwater under the site. Removing the not contaminated with hydrocarbons; energy consumption by gigajoule. We and consumed 263,695 litres of petrol and < • recycling or disposal of various wastes, 277,137 litres of diesel during the year. such as quantities of herbicides, Adam Speers and Frank pesticides, grease, oils, tyres, scrap metal ELECTRICITY and wood, according to appropriate Longbottom inspecting the Electricity from the integrated grid environmental guidelines. groundwater treatment accounted for approximately one per cent system at the former Public consultation meetings were held in of our total energy consumption by Cresco fertiliser site at September and December 2003. Newsletters gigajoule. We consumed 27,556,913 Bayswater in Western were produced for both meetings, which kilowatt hours of electricity during the year. Australia. were extensively promoted through letterbox drops and local papers in the area. These GAS processes will continue as appropriate Natural gas and LPG accounted for through the remediation process. approximately 98.77 per cent of our total Town of Bassendean councillors were energy consumption by gigajoule. We briefed on the project at a public meeting consumed 9,578,296 gigajoules of natural in January 2004. Meetings were also held gas and 57,507 litres of LPG during the with local government officers from the year. City of Bayswater and Town of Bassendean in 2003 and 2004. The Hon. Clive Brown, OTHER MATERIALS Member for Bassendean, was briefed on the Our other raw materials are phosphate project in December 2003 and the Swan rock, sulphuric acid, salt, water, caustic River Trust was provided an outline of the soda, sulphate of ammonia, standard mono project in February 2004. ammonium phosphate and ammonia which A number of on-site consultation meetings we manufacture from natural gas. were conducted with representatives from indigenous groups during March 2004. The next community consultation meeting will be held during the time that the PER is open for public comment.

70 SOCIAL RESPONSIBILITY REPORT 2004 CSBP

SAFETY AND Our emergency teams responded effectively employee wellbeing. The centre runs a to a number of on-site incidents during the number of special health-focused HEALTH year, including false fire alarms and a first programmes, such as counselling, health aid emergency. awareness topics, fitness programmes and LOST TIME Our emergency teams also attended a assessments, audiometric testing, Our LTIFR for employees was 1.9 (compared number of chlorine leaks in the immunisations, subsidies for health club with 4.8 last year) and there were two LTIs. metropolitan area and regional locations. memberships, on-site Pilate’s classes and Including contractors, our LTIFR was 2.4 Most of these incidents did not relate to health programmes looking at risk factors. (compared with 5.4 last year) and there our equipment or operations and those that We also offer annual medicals to employees. were four LTIs. Our Average Time Lost Rate, did were minor. Employees who do suffer work or non- which provides a measure of the severity of work-related injury or illness have access to such injuries, was 12.5 (compared with 9.8 MATERIALS HANDLING AND STORAGE a full range of support networks to ensure last year) for employees. There was a they are provided with the most suitable further 32 per cent reduction in workplace All raw materials and manufactured return to work programme. injuries from 50 last year to 34 this year. products are safely stored and transported See Figure 4, below: around our operations. We have detailed transport management plans for several of COMMUNITY FIGURE 4: our bulk chemicals and detailed training and WORKPLACE INJURIES procedures for all product transport. Many STAKEHOLDERS of the contractors transporting our fertiliser 00 01 02 03 04 Our main stakeholders include our are signatories to the Bulk Fertiliser Service employees, customers, suppliers, the local -78103 50 34 Agreement that sets out appropriate communities in which we operate, requirements for such transport. appropriate regulatory bodies and the Chem Alert was introduced to improve the shareholders of our parent company, management of about 2,000 chemicals Wesfarmers Limited. approved for use at our sites. This, in We are committed to open communications conjunction with a review of the chemicals with our many stakeholders and on-site, has seen the removal of many acknowledge the community’s interest in unnecessary chemicals from our operations. Safety statistics are distributed and our operations. Our stakeholder liaison discussed by management as the first We hold all required licences and permits activities during the year included: for our operations. agenda item at all executive management • consulting the community, local meetings and reported at all board governments and regulators, on plans to RISK ASSESSMENT meetings. consolidate the Ministerial Conditions for During the year we further developed our the our sodium cyanide facilities at WORKERS COMPENSATION programme of risk assessment. The system Kwinana; There were 19 workers compensation works on a number of levels and uses claims reported, relating to occurrences various tools. during the year, compared with 22 last The potential public risk from our major < year. We continue to actively manage the hazard facilities is assessed by the use of Work in progress on the return to work of all injured employees Quantitative Risk Assessments (QRAs). The with services provided by our Occupational QRA process continued throughout the year ammonia plant Health Nurse and visiting medical and will be completed in late 2004. These maintenance and expansion practitioner. QRAs are reviewed and updated when we shut down at Kwinana. make significant changes to our processes. Reviews this year included the ammonia Hazard and risk plant to address the plant upgrade, the PROGRAMMES storage of ammonium nitrate, chlorine import/export and the ammonia pipeline risk We have a number of methods by which profiles prior to completing our site QRA. we identify hazards, make assessment of risks and ensure adequate controls are in The process of team-based risk assessments place to ensure we protect personnel, plant continued throughout the year with and the general public. These include assessments completed in a number of our Hazard and Operability studies job safety large operations, including the prilling plant analysis and team-based risk assessments. and chlor alkali plant. This year we introduced an employee-based EMERGENCY RESPONSE initiative “Take Time Take Charge”. We will Our Crisis Management Team conducted focus on this initiative next year. two exercises last year after a review of the Crisis Management Manual. A number of EMPLOYEE WELLBEING desktop exercises and full off-site training Our first aid centre at Kwinana is the central exercises were also conducted. area for a large number of support services and programmes aimed at improving

SOCIAL RESPONSIBILITY REPORT 2004 71 CSBP

• delivering two presentations to the local and international students to various • a number of community safety, health, Kwinana Community and Industries parts of our organisation. education and environment projects, as Forum - the first describing the de- well as apprenticeship and university bottleneck procedure for our ammonia FEEDBACK/COMPLAINTS awards. plant and the second explaining a Complaints are recorded in our Sitesafe proposal to reuse the gypsum stockpiled incident database. We endeavour to ensure RESEARCH at our Wellard Road site in Leda; that all complaints are addressed as quickly As a member of the Australian Minerals • participating in the Kwinana Industries as possible to enable a response to be Industry Research Association (AMIRA) we Public Safety Liaison Group, which meets provided. Complaints relating to odours or support research into the safe use and in a public forum involving community emissions most often result in a check of disposal of sodium cyanide, a gold reagent and regulatory stakeholders, to review our operating plants and the wind speed used by the mining industry. public safety issues; and direction. We also support a range of agricultural • making available a number of We received eight complaints during the research programmes including the UWA Community Information Bulletins and year - six related to our Kwinana site and Turf Research Programme which conducting a number of Community two at Albany. Of these five were from investigates irrigation and fertiliser Information Sessions in Bayswater to external parties and three from employees. management strategies for turf and ensure the local community was fully Three complaints related to emissions from nutrient research on dairy pastures in the informed about our plans to remediate the granulation plant at Kwinana as south west in conjunction with the the former Cresco fertiliser site in outlined earlier in this report. Two related Department of Agriculture. Bayswater; to emissions from the superphosphate plant We invest about $800,000 each year in our • continuing to support the Community at Albany as outlined earlier in this report. own agricultural research activities. Information Service, a telephone-based One was a complaint from the Department The underlying aim of this research is to service that provides access to a range of of Environment and two from the general enhance economic returns of the end user information about industry; public which were subsequently determined by maximising nutrient uptake and • participating at Board and Council levels not to be related to us. improving plant productivity and quality. of PACIA to assist in developing new policies and approaches; The specific objectives of the work include: • participating in the Fertilizer Federation Communication • evaluation of new fertiliser products of Australia to enable participation in NEWSLETTERS AND REPORTS under field conditions; relevant issues with other manufacturers We frequently provide information to key • investigation of more effective methods suppliers and distributors; stakeholders about our business. Several of fertiliser application; and • participating in the Chamber of newsletters are produced for both our • generation of data to validate and Commerce and Industry to liaise with employees and a number of external improve our fertiliser recommendation other industries and participate in the audiences. computer models, based on soil and development of new policies; Our section of the Wesfarmers 2003 plant analysis services. • launching the pilot nutrient stripping Environment, Health, Safety, and the Through these initiatives we strive to wetland to assembled community leaders Community report, was again printed as a minimise the impact of our products on the and media representatives; and separate publication and distributed to our environment. • hosting a stakeholder forum, attended by stakeholders in March 2004. representatives of government agencies, AWARDS community and industry organisations, WEBSITE In recognition of our achievements in water that discussed various aspects of the Our website (www.csbp.com.au) includes management we were presented with the Wesfarmers Environment, Health, Safety information about our operations for the inaugural Platypus Environmental Award by and Community Report. As was the case community, including environmental, safety the Fertilizer Industry Federation of in the previous year, detailed answers to and health information relating to our Australia in 2004. Key factors in our issues raised at the forum were provided business. We will be improving the success were the reuse and recycling of to participants. environmental section of this site during water, in collaboration with other As a member of the Kwinana Industries the next year. industries, as well as the reduction in both Council we have access to results from a the use of scheme water and discharges to general community attitude survey which COMMUNITY SUPPORT Cockburn Sound. provides an insight into the concerns and We support a number of community interests of the local community on an organisations and projects throughout ongoing basis. Western Australia, including: We continue to conduct site tours and • our major sponsorship of Curtin presentations for local government and University’s Centre of Excellence in community interest groups, particularly at Cleaner Production; Kwinana, as well as providing updates on • a number of farming improvement our operations and environmental groups in rural areas which act as a improvement initiatives. forum to extend participants knowledge During the year we also hosted visits by of new farming techniques; and

72 SOCIAL RESPONSIBILITY REPORT 2004 CSBP

PRIORITIES FOR THE FUTURE

≥ AT LEAST HALVE OUR LTIFR WITH AN ULTIMATE AIM OF ZERO LTIS.

≥ CONTINUE TO REDUCE WORKPLACE INJURIES.

≥ REDUCE CONTAMINANT EMISSIONS.

≥ OBTAIN OR RETAIN ENDORSEMENT OF OUR SAFETY REPORTS FOR OUR FOUR MAJOR HAZARD FACILITIES.

≥ CONTINUE TO WORK SAFELY AND EFFECTIVELY TO DEAL WITH OUR Dr Trevor Lord showing With a predominantly male workforce HISTORIC WASTES BY 2006. Geoff Barber a chart of the a great deal of our focus has been on ≥ INCREASE THE USE OF RECYCLED gastro-intestinal system. heart disease, obesity and diabetes. WATER AND CONTRIBUTE TO This year we focused on identifying the REDUCED SCHEME WATER USE IN > risk of bowel cancer. Most bowel KWINANA. cancer starts as a small polyp in the bowel that can easily be detected and ≥ MAINTAIN OUR CONTRIBUTION TO THE SOCIAL WELLBEING OF THE One of the greatest assets removed to prevent any further development of the disease. Following WESTERN AUSTRALIAN of a good business is its the bowel cancer talk, which included COMMUNITY. workforce. At CSBP the information on food to keep the bowel health of our employees is healthy, many employees presented a high priority and in for screening. addition to annual medical The results identified three employees examinations, each year we who had early signs of the disease offer health education and who later had further treatment to remove the cancer-bearing polyps. programmes which include Without the screening and treatment early detection screening the disease may have gone unchecked for major diseases. in these employees. The results of this year’s health screening have highlighted the importance of our early detection programme and we will continue this in conjunction with our voluntary annual medical assessments to ensure our workforce has the support it needs to fulfill long healthy lives.

SOCIAL RESPONSIBILITY REPORT 2004 73 Angele Tohme and Frank Kiernan at Lumley General Australia’s head office in INSURANCE Sydney.

Our division was formed in late 2003 by combining > Wesfarmers Federation Insurance with the acquired Australian and New Zealand businesses of Edward Lumley Holdings. We are one of Australasia’s largest general

insurance groups with 95 offices in Australia and 10 offices LOST TIME INJURY in New Zealand. We employ almost 1,400 people. FREQUENCY RATE 00 01 02 03 04 Overview 0.0 1.7 1.5 1.6 2.3 This is our first contribution to the We continued a programme of converting 1 July 99 – 30 June 04 (as at 30 September 04) Wesfarmers report on social responsibility our WFI field vehicles to run on liquefied issues. It differs from the other business petroleum gas (LPG). At the end of the year, units in that we have no previously set 52 per cent of WFI vehicles had been priorities against which to report. The converted as had five per cent of Lumley nature of our activities is also General Australia (LGA) vehicles. fundamentally different to those of the Air travel has been reduced by the NUMBER OF WORKERS other members of the Wesfarmers group installation of videoconference facilities at COMPENSATION CLAIMS and this report is therefore less expansive our Sydney, Perth and Auckland offices to than their contributions to this publication. allow for meetings without the need for 00 01 02 03 04 The main challenge facing our businesses interstate and international travel. 354115 on an ongoing basis is for them to operate The main safety area on which we focused in a way that minimises any adverse impact our attention during the year was reducing on the environment or the communities in workplace injuries. which they operate. We have addressed workplace injuries In dealing with this challenge, the main through LGA’s compulsory workplace environmental areas on which we focused ergonomics training, well documented Data prior to 1 July 03 is for our WFI business only. our attention during the year were Data thereafter includes our WFI business and our Lumley Occupational, Health and Safety (OHS) businesses. Contractors not included reducing electricity usage, using cleaner policies and an OHS committee. Our WFI and more efficient fuel, and reducing air business has documented OHS policies travel by our employees. which are internally audited annually. Our Wesfarmers Federation Insurance (WFI) Safety has a high profile across all our business continued a programme of businesses and all lost time injuries must upgrading its old cathode ray tube (CRT) be reported immediately to our Managing computer monitors with new flat screen Director. monitors. The new monitors use 40 watts compared with 70 watts for the old Data in this report is for our WFI business screens, resulting in a 43 per cent and our Lumley businesses in Australia and reduction in their electricity use. It is New Zealand, unless otherwise stated. expected that all CRT monitors will have been replaced by 30 June 2006. www.wfi.com.au www.lumley.com.au www.lumley.co.nz 74 SOCIAL RESPONSIBILITY REPORT 2004 BUSINESS Management Water MANAGEMENT systems CONSUMPTION SAFETY MANAGEMENT SYSTEM (SMS) Our main use of scheme water during the Training year related to toilet flushing and An integrated safety reporting system is drinking water. HEALTH AND SAFETY under development and is expected to be Ergonomic training and advice is provided operational by 30 December 2004. Water usage was not metered. to all employees either face-to-face or In addition, our WFI head office is located through our intranet. OTHER/INTERNAL MANAGEMENT on extensive grounds and uses bore water A first aid facility is provided at our WFI SYSTEMS for garden and lawn watering. head office in Bassendean, Western We operate financial, human resources, Australia and a number of staff have strategic planning, budgeting and reporting appropriate training. management systems. Waste All of our WFI Area Managers have SOLID WASTE undertaken a defensive driving programme POLICY Given the nature of our business to ensure they are trained to drive on We have addressed workplace injuries operations, we did not measure solid waste different types of surfaces and in different through LGA’s compulsory workplace generation and we are not planning to in weather conditions. ergonomics training, well documented the future. Occupational, Health and Safety (OHS) EMERGENCY policies and an OHS committee. Our WFI LIQUID WASTE All our major offices have documented business has documented OHS policies The only liquid waste of which we are emergency evacuation plans. which are internally audited annually. aware is vehicle oils and lubricants replaced when our vehicles are serviced by Compliance ENVIRONMENTAL external motor mechanics. RECYCLING INITIATIVES ENVIRONMENTAL Air Our major offices in Bassendean, Sydney We are not aware of any non-compliance and Auckland had dedicated paper during the year with environmental GREENHOUSE GAS EMISSIONS recycling bins that were collected regularly legislation or other environmental Our direct greenhouse gas emissions during during the year by a waste management requirements. the year from our vehicle fuel use were contractor for recycling. estimated to be 2,324 tonnes of carbon NATIONAL POLLUTANT INVENTORY (NPI) dioxide equivalent. We did not use any of the substances listed In addition, our indirect greenhouse gas under the NPI during the year and emissions during the year from imported < therefore we are not required to report. electricity were estimated to be 2,452 tonnes of carbon dioxide equivalent. Wesfarmers Federation HEALTH AND SAFETY Insurance employees using The only other source of greenhouse gas new video conferencing We are not aware of any non-compliance emissions of which we are aware is related during the year with health and safety to waste disposed off-site. As we did not facilities at Bassendean in legislation or other health and safety measure the quantity of waste we were Western Australia. requirements. unable to estimate associated greenhouse gas emissions. LICENSING AND APPROVALS Our total (direct and indirect) greenhouse We were not subject to any specific gas emissions per million dollars of environmental, health or safety licensing or premium income were estimated to be 4.7 approval requirements. However, we were tonnes of carbon dioxide equivalent. subject to general environmental and health and safety legislation. In calculating greenhouse gas emissions for electricity we have estimated the In Australia our financial regulators are the consumption on a state-by-state basis and Australian Prudential and Regulatory applied the appropriate emission factor for Authority (APRA) and the Australian each state. Securities and Investments Commission (ASIC). Each of these regulators issued OTHER EMISSIONS licences under which our WFI and LGA businesses operated. In New Zealand there We are not aware of emissions of ozone- is no financial regulator, but our Lumley depleting substances. General New Zealand (LGNZ) business complied with industry codes as set by the Insurance Council of New Zealand.

SOCIAL RESPONSIBILITY REPORT 2004 75 INSURANCE

Land To put our electricity consumption in WORKERS COMPENSATION context, it was approximately equivalent to There were 15 workers compensation CONTAMINATION that of three Bunnings Warehouses. claims reported, relating to occurrences during the year, 12 in our Lumley We are not aware of any contamination GAS issues, except for some ground water businesses and three in WFI. LPG accounted for approximately 10 per contamination at our Bassendean site Many of the workers compensation claims cent of our total energy consumption by which we believe resulted from industrial resulted from injuries sustained on the way gigajoule. Our vehicles consumed 161,957 activity in the surrounding area. to work or on the way home from work (for litres of LPG. example, slipping at a train station or on a We continued a programme of converting footpath) and were largely outside the Resource use our WFI field vehicles to run on LPG. At the control of management. ENERGY end of the year, 52 per cent of WFI vehicles had been converted as had five per cent of Our main use of energy during the year LGA vehicles. LGA is considering adopting a Hazard and risk related to electricity consumed in our similar policy to WFI in relation to its PROGRAMMES offices and fuel for our vehicle fleet. vehicles. Lumley General New Zealand Total energy consumption was estimated to vehicles continue to operate on petrol. As a major insurer it is in our own be 42,218 gigajoules. Overall, 19 per cent of our vehicles are commercial interest and in the interests of running on LPG. the community at large for us to encourage Our total energy consumption per million safer conduct on the roads. In both dollars of premium income was estimated Australia and New Zealand we are market to be 41.2 gigajoules. SAFETY AND leaders in the provision of commercial Our energy sources are detailed below. motor/fleet vehicle insurance and have HEALTH used our position to improve community FUEL LOST TIME safety standards in the areas of vehicle and driver safety by offering services in the Petrol and diesel accounted for Our LTIFR was 2.3 and, during the year, following areas: approximately 67 per cent of our total there were five LTIs. Our Average Time Lost energy consumption by gigajoule. We Rate (ATLR), which provides a measure of • fleet safety surveys – both light and consumed 765,774 litres of petrol and the severity of such injuries, was 6.1. These heavy vehicle fleets (audits for health 55,898 litres of diesel. statistics do not include contractor hours and safety compliance across all levels); and injuries. • follow-up guidance and advice at ELECTRICITY Safety statistics are distributed and management level; Electricity accounted for approximately 23 discussed by management and the various • pre–employment attitudinal profiling; per cent of our total energy consumption boards every two months. by gigajoule. Based on available data we • Accident Risk Management (ARM) estimate electricity consumption at 2,697 supervisor training; megawatt hours. • fleet Loss Control Manual workshops for < managers and supervisors; • safety awareness seminars; Danielle Barnes from WFI using one of the new • stress and fatigue seminars; electricity-saving flat screen monitors. • large loss remedial training using the ARM programme; • benchmarking safety performance; • conference presentations; and • liaison with transport industry groups, such as the Land Transport Safety Authority, Accident Compensation Commission, Road Transport Association and National Road Carriers.

RISK ASSESSMENT All offices had at least two safety inspections conducted during the year by the branch manager. All accidents and incidents during the year were reported to the national human resources manager and our LGA business had an OHS committee in every office reporting to that manager.

76 SOCIAL RESPONSIBILITY REPORT 2004 INSURANCE

During the year our WFI field vehicles and decision is binding on us for amounts up to passenger vehicle fleet were involved in 10 pre-imposed limits. In Australia, 137 PRIORITIES incidents for which insurance claims were complaints were dealt with internally and made totalling approximately $31,000. Our of these eight were referred to the IEC. FOR THE Lumley field vehicles and passenger fleet Complaints (including any related to FUTURE were involved in 40 incidents for which environmental or safety matters) in New insurance claims were made totalling Zealand or by people other than approximately $68,000. ≥ REDUCING OUR LTIFR BY AT LEAST policyholders in Australia can be made 50 PER CENT WITH A TARGET OF directly to one of our offices where the ZERO LTIS. EMPLOYEE WELLBEING complaint is recorded and appropriate We offer an employee assistance follow up action initiated. ≥ IMPLEMENTING A SAFETY programme during the year that provides INCIDENT REPORTING SYSTEM company-funded counselling services for ACROSS ALL OUR BUSINESSES. employees and their immediate family Communication ≥ CONTINUING THE CONVERSION OF members in relation to issues such as VEHICLES TO LPG FUEL. alcohol, gambling and drugs. NEWSLETTERS AND REPORTS Quarterly newsletters are provided to all Free influenza vaccinations were again staff through either hard copy distribution offered on site to all employees in the or through the intranet. Sydney, Auckland and Perth head offices. During the year 284 employees took up WEBSITE the offer. Our websites: Ergonomics advice continued to be made available to our Lumley employees through • www.wfi.com.au the intranet. • www.lumley.com.au • www.lumley.co.nz Neck and shoulder massages were again offered to all our WFI employees in the include information about our operations Bassendean head office. for the community. LIAISON GROUPS COMMUNITY Our WFI and LGA businesses are members of the Insurance Council of Australia. LGNZ STAKEHOLDERS is a member of the Insurance Council of Our stakeholders include our employees, New Zealand and Rieny Marck, LGNZ’s our customers, our suppliers and other Chief Executive Officer, is vice-president of contractors, relevant government agencies, that organisation. the local communities in which we operate and the shareholders of our parent COMMUNITY SUPPORT company, Wesfarmers Limited. LGA provided financial support to the < Cancer Council of Australia, World Vision, FEEDBACK/COMPLAINTS Walk to Cure Diabetes, Westmead Hospital WFI’s Jacqueline Mills Our LGA and WFI businesses are bound by and the Athens 2004 Australian Olympic with a new LPG vehicle the General Insurance Code of Practice. fundraising committee. at Bassendean. This code outlines the steps to resolve WFI supported rural events and sporting complaints and disputes raised by clubs in the areas where it operated. policyholders. WFI also made available to staff the We have an internal dispute resolution Workplace Giving Program, enabling them process in place which is available to to make charitable donations out of pre- policyholders who have a complaint or tax salary, thus effectively allowing dispute against us. This is a free service and employees to receive the tax deduction at is available nationally with all matters the time of the donation without any treated in confidence. Where matters paperwork, rather than waiting until after cannot be resolved to a policyholder’s the end of the financial year and claiming satisfaction, we advise complainants of the tax deductions in their returns. their rights to take the matter up with the General Insurance Enquiries and Complaints AWARDS Scheme (IEC). The IEC is a national scheme Our WFI business won the 2003 Australian aimed at resolving disputes between Banking and Finance Magazine’s Insurance policyholders and their insurance Accolades award for the best regional companies and also extends to third party insurer recognising our commitment to claimants. If the decision of the IEC is rural communities. acceptable to the complainant then the

SOCIAL RESPONSIBILITY REPORT 2004 77 Peter Lewi from Air Liquide OTHER and HIsmelt’s Chris BUSINESSES Grierson at the construction site of the new Air Liquide Air Separation Unit at Kwinana. <

limited impact of the process on the SOTICO dioxins); whether local or other landfill sites AIR LIQUIDE WA With the sale of the jarrah assets of Sotico would accept material treated in this or We are a major manufacturer and distributor in August 2004, we are no longer involved in other ways; or whether we should explore of a broad range of industrial, medical, the native forest sector. Our only active the possibility of on–site encapsulation. scientific and environmental gases including engagement in forest products now is These options will be further discussed with oxygen, nitrogen, argon, acetylene and through our 50 per cent share in the the DoE and other parties before a final carbon dioxide and we provide home Wespine plantation pine sawmill at remediation plan is adopted. The State healthcare services. We are 40 per cent- Dardanup, in Western Australia. government continues to assess options for owned by Wesfarmers Limited (and managed We are not able to report on Sotico’s treating the arsenic contamination. by Wesfarmers Energy) with the remaining activities during the year because of staff shares held by Air Liquide Australia Limited, reductions as part of the business MANJIMUP PROCESSING CENTRE a wholly-owned subsidiary of Air Liquide of France. Our head office is at Myaree, divestment process. Our Corporate Office has As reported last year, environmental Western Australia and our three operational assumed responsibility for managing the assessments were conducted at all of the sites are located south of Fremantle at remediation of contamination at former Sotico sites as part of the sales process. In Kwinana and Henderson. Another Kwinana Sotico locations and we will continue to August 2004, at the time of the sale of facility comprising an Air Separation Unit report on these issues. Sotico, we announced that drilling at the (ASU) to provide oxygen and nitrogen to the Manjimup Processing Centre, had revealed HIsmelt project is due for commissioning in PEMBERTON creosote contamination of soil and December 2004. We have a healthcare groundwater arising from timber treatment As reported last year, we were involved in division in suburban Perth and branches at operations at that site for about three years treating timber at the Pemberton sawmill Kalgoorlie and Darwin and operate through a in the mid 1980s. from 1971 until 1987. Treatment also network of 80 agents in WA and the occurred under earlier ownerships, including Modelling suggested the contamination had Northern Territory. We employ 73 people. the period when the mill was operated by moved off-site and further testing was the State government from 1914 to 1961. conducted in September 2004 to determine OVERVIEW These treatment processes have resulted in the extent of the impacts. contamination of parts of the mill site and The highlight of our year’s safety performance Remediation work is expected to begin on adjacent land with chemicals including was the achievement in June 2004 of 12 the affected on-site soil in early 2005 and arsenic and pentachlorophenol (PCP), the years without a Lost Time Injury. we will consider recommendations from our latter containing levels of dioxin, a Environmentally, we managed the activities of consultants about treating the groundwater contaminant by-product of PCP that was our lime waste contractor to ensure regular once it is clear exactly to what extent it has also produced during historic burning of removal from our site of this by-product from been affected by the creosote PCP wastes as part of mill operations in our acetylene production facility. contamination. earlier times. MANAGEMENT SYSTEMS The State government has accepted DEANMILL SAWMILL responsibility for tackling the arsenic We have no Environmental Management Testing at Deanmill revealed arsenic contamination, given that chemical’s use System. Our Safety Management System contamination in an on-site drainage during its ownership of the mill, and we has been audited by the Department of channel and down gradient along the will fund and manage the PCP clean up Industry and Resources (DoIR). Both our channel close to the mill boundary with process. A public meeting held in Pemberton Environmental and Safety policies are agricultural land. No timber treatment work in December 2003 to brief the community widely displayed and are included in was carried out at Deanmill during Sotico’s was attended by representatives from induction material for all new employees. ownership of the site and the contamination Sotico and its environmental consultants Our Quality Assurance System was appears to have arisen from a treatment (URS Australia), the Departments of upgraded to conform with ISO 9001 with plant that operated in the 1920s when the Environment and Health and a Canadian accreditation received in November 2003. mill was owned by the government, through company engaged to investigate the possible Internal quality assurance auditor training State Sawmills. Relevant authorities were use of a bioremediation technology to treat was given to six employees. briefed and the government has accepted the PCP contamination. Following the that the State Sawmills activity is the likely meeting an Emergency Response Plan was cause of the contamination. We expect the drawn up to cover contingencies that might ENVIRONMENTAL government will develop a remediation plan arise during the remediation work, in to deal with this issue. We complied with the conditions of our particular a proposed field trial of the Department of Environment licence. bioremediation technology as an extension of laboratory tests carried out in Canada. The Kwinana ASU operates 24 hours a day. Noise monitoring was not conducted during Since then, consideration has focused on the year and no complaints were received. whether we should proceed with the Monitoring by the Kwinana Industries bioremediation field trial (given the expected Council in November 2001 indicated we made a contribution of less than two per cent to noise levels.

78 SOCIAL RESPONSIBILITY REPORT 2004 StateWest Power’s Jean-Marc Imbach inspecting the Sunrise Dam Power Station near Laverton in Western Australia. <

We do not directly produce greenhouse We have an Employee Assistance Programme gases but our indirect emissions from STATEWEST available for employees and their immediate imported electricity were estimated at families and during the year we distributed 86,096 tonnes of carbon dioxide equivalent, POWER brochures covering our Fitness For Work down three per cent on last year overall and We are a wholly-owned subsidiary of programme to all employees. a reduction of eight per cent per production Kleenheat Gas, specialising in the design, tonne during the year. construction, operation and maintenance AUSTRALIAN Our carbon dioxide recovery plant at of diesel and gas-fired power stations for the mining industry and remote area Kwinana recovers CO2 from the adjacent townships. Our head office is at Canning RAILROAD GROUP CSBP ammonia plant, removes impurities The Australian Railroad group (ARG) is a and we liquefy the product for sale. At our Vale in Western Australia and we employ about 60 people. joint venture between Wesfarmers and Henderson site we are licensed to re-sell Genesee & Wyoming Inc of the United refrigerant gases to approved users. MANAGEMENT SYSTEMS States. ARG is the major provider of rail Water use during the year was estimated at freight services in Western Australia and We have a Management Plan (Health, Safety 99 megalitres (down three per cent on last South Australia and now operates freight and Environment) which includes policies year). We estimate our solid general waste services in New South Wales. Further and system details and the framework for stream at 73,368 kilograms (down one per information is available at www.arg.net.au. their implementation. The plan describes cent), all of which is recycled. Total liquid actions required, employees who are waste was estimated at 2,730 tonnes, all of involved, frequency of actions needed to be which is disposed of by a licensed contractor. QUEENSLAND taken and responsibilities and Our total energy use for 2003/2004 was 86 accountabilities. NITRATES gigajoules (down three per cent). Through CSBP, Wesfarmers is a joint venture partner with Dyno Nobel Asia Pacific in the SAFETY AND ENVIRONMENTAL Queensland Nitrates fully integrated Most client-owned operational sites manage ammonium nitrate plant at Moura in Central HEALTH dust control. At Leonora and for the Midwest Queensland. It produces ammonium nitrate Our Lost Time Injury Frequency Rate of zero power stations we use blue metal cover to for the coal mining industry. Further includes contractors. We encourage the suppress dust and at Canning Vale by information is available at www.csbp.com.au. reporting of near misses and recorded 11 of concreting areas or planting lawn. Client- these during the year, all of which were operated sites have responsibility for noise BENGALLA thoroughly investigated. Eighteen health and monitoring and control. At Sunrise Dam and Wesfarmers has a 40 per cent interest in the safety meetings were conducted during the Wodgina power stations, noise monitoring Bengalla open cut coal mine in the Hunter year and as were 16 internal safety and resulted in action to reduce levels. We install Valley of New South Wales. The mine is quality audits focusing on compliance and oil separation units at power stations to managed by Coal and Allied, a Rio Tinto hazard identification. We introduced our control waste oil and stormwater run-off. group company, and produces steaming coal Fitness for Work policy and conducted Our total energy use during the year was for domestic and export markets. Further random drug and alcohol testing as part of 4,331,474 gigajoules. information is available at its implementation. www.coalandallied.com.au. All employees undergo training in hazards SAFETY AND associated with the gases and equipment they are required to handle. First aid training HEALTH WESPINE was provided to five employees during the Wesfarmers and Fletcher Building Limited Our Lost Time Injury Frequency Rate reduced year. We conducted a simulated jointly own the Wespine plantation pine from 12 to zero and we focused on health, fire/explosion emergency response exercise sawmill at Dardanup, near Bunbury, in safety and environmental incident reporting at our Henderson facility in June 2004. Western Australia. Wespine has a long-term to enhance employee awareness in these contract with the government of Western We maintained accreditation from the DoIR areas. covering the storage of dangerous goods. Australia for the supply of pine logs and During the year we recorded 32 first aid produces sawn timber for housing Employees have access to voluntary injuries and three near misses. construction, furniture manufacture and health and fitness assessments and we Material Safety Data Sheets are held on site other uses. Further information is available offer an Employee Assistance Programme for hazardous substances and bunded at www.wespine.com.au. to all employees and members of their storage areas are provided where required. immediate families. We use Job Safety Analysis for major tasks WEBSITE to identify all risks and assess their potential impacts on employees, the public, plant and Further information on our operations equipment. is available from our website at www.airliquidewa.com.au.

SOCIAL RESPONSIBILITY REPORT 2004 79 Verification Statement

Kwinana, Premier Coal Collie, WLPG Kwinana, upon to date. In 2003 we made eight Bunnings, Curragh Mine, Queensland, WIS and recommendations and all have been dealt WID Sydney. Where possible, effort was made with during the current reporting period. to establish comparability of findings between Wesfarmers have this year taken a significant reporting years and with industry standards. ABN 47 065 475 149 step in the reporting of the company’s Such comparison will enable the company ACN 065 475 149 achievements towards sustainability as performance to be benchmarked against other SMEC Australia Pty Ltd described by the Global Reporting Initiative. corporations of a similar size and/or diversity. Level 6, 12 St Georges Tce For the first time a section at the front of the Perth WA 6000 The data verification process involved report has been included which provides an Telephone: (08) 9323 5900 reviewing the reports submitted by the overview of social, economic and Facsimile: (08) 9323 5901 business units then randomly selecting items environmental aspects. for which verification would be sought. Significant improvements in the collection, At each site the processes by which data was management and reporting of social, collected, stored, analysed and reported were economic and environmental indicators have VERIFICATION OBJECTIVE examined to establish the robustness of the been made in the last 12 months. A number processes used and any misinterpretation that Wesfarmers Limited (Wesfarmers) of factors have contributed to the may have occurred as a result. Interviews commissioned SMEC Australia Pty Ltd (SMEC) development of high reporting standards were held with Wesfarmers’ personnel to verify the data and content of this 2004 including improved definitions, guidance responsible for each data set and processes Social Responsibility Report (the report), the documents and technical instructions given to used to derive conclusions reported were seventh such report produced by the company. sites, resulting in greater consistency and demonstrated. Potential for errors in The objective of this verification audit was to accuracy of site reporting. aggregation and interpretation were explored ensure statements made within the report were and consistency of approach for the purposes The level of sophistication in the data consistent with evidence from which they were of reporting in this report was assessed. collection systems often reflects the derived and were able to be supported by In addition, the process for developing experience of the business unit with the quantitative data wherever possible. quantitative information was examined for collection and collation of data and Wesfarmers holds responsibility for the consistency with previous year’s methods to information to fulfil the requirements of the preparation of the report and this Verification ensure absolute and comparative values reporting process. Smaller business units tend Statement represents SMEC’s independent quoted were derived from the same base. to have less complex data collection systems. opinion. SMEC was not involved in any part of Business units that are relatively new to the Verification of the reports of the minor units the report preparation. company, in age or composition, are still (Sotico, Air Liquide WA and StateWest Power) developing data collection and management occurred remote from the site. VERIFICATION METHOD systems and may lack the systems to collect The Curragh Queensland Mining audit was data at the level of detail available to those As with previous years, SMEC’s approach conducted with a representative from SMEC’s with more mature management systems. to verification is based on emerging Brisbane office and the Wesfarmers Industrial These variations result in a noticeable international best practice and this and Safety and Wesfarmers Insurance Division difference in the level of information that can statement is constructed based on the audits were undertaken with a representative be provided by each business unit. recommended methodology advocated by the from SMEC’s Sydney office. All other business Global Reporting Initiative’s Sustainability The verification process used indicated: units were audited by SMEC’s Perth office and Reporting Guidelines. The approach to a representative from this office also • a high level of accuracy in the data verification was Level 2 of the Environmental accompanied auditors from Sydney and presented. However, minor modification Australia Hierarchy. Brisbane to their respective sites. This year of some qualitative statements was Level 2 verification entails data verification was the first time the Wesfarmers Insurance undertaken and slight adjustment of data selection of random samples of quantitative Division had been audited independently of was made to clarify the manner in which it data sets and reporting systems utilised to any other business unit. Sotico was audited was presented; and collect, consolidate and aggregate data in with corporate representatives from • datasets were generally traceable and addition to reviewing the completeness of the Wesfarmers as that business unit has been readily identified. During the audit, data report against Wesfarmers’ policies, targets principally divested in the year under trails were easily located and demonstrated and plans. examination. and the aggregation and collation undertaken to reach conclusions were SMEC WAS COMMISSIONED TO: OPINION logically presented by the personnel • Identify major anomalies in the report; Over the past four years Wesfarmers responsible for undertaking those activities. • Track the data streams from collection of understanding and utilisation of corporate However, it was apparent that some data to review of the conclusions made social and environmental reporting has challenges to historic data retrieval from the subsequent analysis and assess matured. Significant developments in continue to be experienced when data the accuracy and appropriateness of the reporting across all business units have management systems are being updated. processes used; and resulted in enhancement of processes and Reporting and verification of social issues and outcomes. Wesfarmers should be proud of community involvement, particularly for • Review the contents of the report with their achievements thus far in the respect to the significant aspects of the business units that contribute to provide in- development of high reporting standards. The kind assistance to the community, is organisation and the issues for the manner in which verification organisation’s stakeholders. problematic. Consequently there is more scope recommendations are dealt with is testimony for reporting error. In some instances The verification tasks entailed collection and to the general improvements in reporting and databases are not established and therefore analysis of reports compiled by business units, process that have occurred. In our 2002 report rely on the expertise of senior personnel. site visits and interview with personnel at SMEC made a number of recommendations Wesfarmers Corporate, Kleenheat, CSBP and almost all have been satisfactorily acted

80 SOCIAL RESPONSIBILITY REPORT 2004 Australian Standards (AS) – National benchmarks for products and services. < Average Time Lost Rate (ATLR) – an indicator of the average time lost for each lost Overall, SMEC is satisfied that: time injury. • The report is a fair and honest representation of the organisation’s policies, management Bank Cubic Metre (BCM) – a bank cubic metre is a measure of overburden removed in systems and performance; mining operations. • The numerical data presented in the report is Bank Cubic Metre Equivalent (BCMeq) – a bank cubic metre equivalent is a measure Glossary valid and accurate; and of both coal produced and overburden removed in mining operations. • The written statements in the report present CBM – Coal Board Medical an accurate representation of the results and progress achieved during the reporting period. CHIMA – Cultural Heritage Investigation and Management Agreement

GENERAL FINDINGS CHMP – Cultural Heritage Management Plan As a result of completing the verification process, the following findings are made: Environmental audit – A programme to evaluate compliance with regulations, systems, programmes and policies. • Wesfarmers continues to seek a consistent approach to measuring and reporting Gigajoule – Unit of energy equivalent to 1,000,000,000 joules. performance across all business units through striving to adopt best practice reporting Greenhouse gases – Gases such as carbon dioxide, methane and nitrous standards. The continued implementation of oxide which contribute to retention of heat in the earth’s lower atmosphere. the rolling five-year improvement plan developed by SMEC in 2002/2003 and the Greenhouse Challenge – The federal government’s programme of integration of new initiatives for reporting of cooperation between industry and government to reduce greenhouse gas environment, social and economic emissions through voluntary action. achievements in line in the progress toward International Organisation for Standardisation (ISO) – ISO publishes sustainability reporting are noted. internationally-agreed standards covering areas such as quality management • The ongoing involvement of personnel across (the ISO 9000 series) and environmental management (ISO 14000). the organisation in data collection and management, in addition to those who Liquefied petroleum gas (LPG) – A combination of, predominantly, propane provided input to the verification undertaken and butane extracted from natural gas or as a by-product of petroleum refining. by SMEC, indicates that the business units maintain processes consistent with best Liquefied natural gas (LNG) – Comprising predominantly methane, it is practice in reporting. The level of ownership of produced from natural gas that has been purified, refrigerated and condensed the report and the information within it was to liquid form. very high in all instances and demonstrated a commitment to the integrity of the contents Lost Time Injury (LTI) – An LTI is any work injury which causes absence for of the report. In light of organisational and one day or a shift or more. staff changes that have occurred during the Lost Time Injury Frequency Rate (LTIFR) – The main calculation we use reporting year, such commitment is to be commended. to measure workplace safety performance. It is calculated by dividing the number of LTIs by total hours worked, multiplied by one million. Another • The introduction of new business units into indicator, Average Time Lost Rate (ATLR), provides a measure of the severity this reporting framework continues to of occurrences. challenge personnel within those units. The desire to meet the standard achieved by National Packaging Covenant – An agreement between the packaging others is praised as the commitment to the supply chain industry and governments which sets guidelines covering the reporting process remains in place in spite of manufacture, supply, distribution, consumption and recovery/recycling of the demands arising from either having to post-consumer packaging. report for the first time or adjust to change. The above findings represent a summary of the National Pollutant Inventory (NPI) – An Australian internet database designed to more detailed findings presented to Wesfarmers. provide the community, industry and government with information on the types and amounts of certain substances being emitted to the environment. For SMEC Perth The NPI contains data on certain priority substances which are emitted to the environment. The substance list was determined by consideration of health and environmental risks in Australia. The NPI uses standard assumptions, in part, to calculate potential emissions we cannot measure or have difficulty measuring Asha Jogia and, accordingly, data reported to the NPI may differ from point source Environmental Scientist and Auditor emissions contained in this report. More information can be found on the NPI BSc website (www.npi.gov.au). For SMEC Perth Overburden – Unmineralised material overlaying coal deposits or ore bodies.

Rehabilitation – Treatment of disturbed areas to achieve a level of stability equal to that which existed before or to an alternative acceptable form. Brett Loney

Principal Environmental Scientist and Lead Auditor SMS – Safety Management System BSc (Env. Sc.) PGradDip EIA Certified Lead Auditor (QSA) SOP – Standard Operating Procedure 11 October 2004 Printed on 50% recycled and oxygen bleached paper stock made from mindfield - creative business partners sustainable plantation forests to ISO 14001 environmental standards. WESF-7982