SUSTAINABILITY REPORT 2007/08 OUR VISION WORKING TOGETHER Contents TO ENSURE A 2 OVERVIEW 10 2007/08 IN REVIEW 11 CHAIRMAN AND MANAGING SUSTAINABLE DIRECTOr’s repORT 12 WATER 22 SEWERAGE WATER 30 WATERWAYS 38 RECYCLED WATER 44 PROTECTING OUR FUTURE NATURAL ENVIRONMENT ENERGY AND GREENHOUSE BIODIVERSITY WASTE 54 OUR RELATIONSHIPS 60 OUR PEOPLE, OUR WORKPLACE 68 BUSINESS EFFICIENCY 74 CORPORATE GOVERNANCE AND RISK MANAGEMENT 79 FINANCIAL REPORT Front cover: The Waterwall at the National Gallery of Victoria (NGV) 128 APPENDICES The NGV is committed to achieving and promoting water conservation. With the assistance and support STATUTORY INFORMATION of Melbourne Water, the Water Trail has been developed to promote the value of water to NGV GLobAL REPORTING visitors. The Waterwall at the entrance to NGV International marks the beginning of the Water Trail. INITIATIVE CONTENT INDEX Using recycled water, the constant flow creates a natural filter between the bustle of the city and INDEPENDENT the calm seclusion and ambience of the Gallery. ASSURANCE STATEMENT Opposite: Kids at Cherry Lake, Altona SUSTAINABILITY REPORT 2007–2008 1 ABOUT THIS REPORT REPORTING PRINCIPLES Previously, we produced about 2000 printed reports a year to distribute to our Melbourne Water’s Sustainability Report As with last year’s report, information stakeholders and the community. We also 2007/08 describes our progress towards for the Sustainability Report 2007/08 was made the report available online via our achieving our vision of Working Together prepared consistent with the following website. Consistent with our sustainability to ensure a Sustainable Water Future, principles relating to content and quality: principles, we have gradually reduced the and how we met our business obligations number of printed publications we produce, from 1 July 2007 to 30 June 2008. › Balance – reporting favourable including our Sustainability Report. and unfavourable outcomes In most cases where printed copies are The report reviews our performance against › Comparability – enabling required (particularly for people with Key Performance Indicators (KPIs) detailed in information to be compared on accessibility issues), we produce small our Corporate Plan, and against a selection a year-on-year basis, and with quantities using environmentally friendly of relevant sustainability or water industry- appropriate industry benchmarks based indicators. It has used the Global printing processes on recycled paper. Reporting Initiative (GRI): Sustainability › Accuracy – making every effort Last year, we produced 500 printed copies Report Guidelines to guide reporting. to ensure accuracy of data (including 80 required for the Victorian › Timeliness – aligning Parliament) of the Sustainability Report OVERVIEW The reporting boundary covers areas that reporting processes on 100% recycled paper. Melbourne Water is responsible for as an organisation. We have not included details › Clarity – explaining the concepts This year we have produced the required of contractors or stakeholders, unless stated. using clear and concise language copies for Parliament and a summary › Reliability – data can be sourced and version for distribution. We have made Melbourne Water is committed to the stands up to the assurance process the online document user-friendly so process of assurance and verification, that people can access sections of most and engaged an independent auditor › Materiality – ensuring that important interest to them more readily. to assess this report. The Independent business issues are covered Assurance Statement is on page 148. › Stakeholder inclusiveness – These printed copies were produced on identifying stakeholders and 100% recycled paper using sustainable STAKEHOLDER addressing their interests printing processes. CONSULTATION › Sustainability context – explaining ONLINE DOCUMENT how initiatives impact on our Consultation and research with internal business sustainability, and and external stakeholders about last year’s This report is available on the Melbourne sustainability more broadly sustainability report helped shape this Water website, melbournewater.com.au, document. The research, conducted via › Completeness – ensuring transparency along with financial statements and interviews and group discussions in June in the coverage of major business issues. comprehensive social and environmental data for 2007/08. For people without and July 2008, found that the report was CREATING A MORE an appealing document, with content/ internet access, please contact Melbourne information, structure and design rated SUSTAINABLE REPORT Water on 131 722 for a CD of this report. highly. This consultation and research: We produced our first Sustainability We welcome your feedback and invite you › Refined and developed the reporting Report, Towards Sustainability, in 2005, to fill in the form, which is on our website process so that the document is soon after we had developed our strategic under ‘Publications’, then ‘Reports’. responsive to stakeholder needs framework. This document, Sustainable Water – A Strategic Framework, outlined ACCESSIBILITY › Enabled Melbourne Water to stay our high-level goals and objectives for informed about the issues that achieving our vision. If you would like to receive sections Our values are important to stakeholders of this publication in large print, › WE RECOGNISE THAT WE ACHIEVE MORE BY WORKING COLLABORATIVELY › Ensured the report demonstrates Towards Sustainability was our first please telephone 131 722 or email best-practice transparency attempt to assess our performance [email protected] › WE BEHAVE WITH INTEGRITY and accountability against the framework and sustainability indicators. At the time, we also produced › WE ATTAIN EXCELLENCE THROUGH CREATIVITY AND INNOVATION › Strengthened existing relationships an Annual Report. The following year, and helped build new ones. we combined the reports as sustainability › WE CELEBRATE OUR ACHIEVEMENTS AND LEARN FROM OUR EXPERIENCES principles became more fully integrated into our business processes. › WE WORK WITH OPENNESS, TRANSPARENCY AND ACCOUNTABILITY Main inlet carrier, Western Treatment Plant 2 MELBOURNE WATER SUSTAINABILITY REPORT 2007–2008 3 Who we are Who we work with GOVERNMENT Melbourne Water is a water An independent Board of Directors The Essential Services Commission OWNER, resource manager owned by is responsible for the governance of regulates prices and monitors LEGISLATOR DEPARTMENT OF DEPARTMENT OF the Victorian Government. Melbourne Water. During 2007/08, service performance. We work & POLICY TREASURY & FINANCE SUSTAINABILITY & ENVIRONMENT the following Ministers were across several arms of the Victorian MAKER We manage Melbourne’s water responsible for Melbourne Water. Government, including the STATEMENT OF OBLIGATIONS / LEGISLATION / REGULATIONS / POLICY supply catchments, remove The Honourable John Thwaites was Department of Sustainability and and treat most of Melbourne’s Minister for Water, Environment and Environment and the Department sewage, and manage rivers Climate Change until 29 July 2007, of Treasury and Finance. and creeks and major drainage the Honourable John Brumby was ESSENTIAL ENVIRONMENT DEPARTMENT OF DEPARTMENT systems throughout the Port Minister for Water, Environment Our customers include the PROTECTION Phillip and Westernport region. metropolitan retail water REGULATORS SERVICES AUTHORITY SUSTAINABILITY OF HUMAN and Climate Change from 30 June CommISSION VICTORIA & ENVIRONMENT SERVICES 2007 to 2 August 2007, and the businesses – City West Water, Our people have diverse skills South East Water, Yarra Valley and expertise and we place a Honourable Tim Holding was Minister for Water from 3 August 2007. Water – other water authorities, high priority on building strong councils, land developers and partnerships and relationships EPA Victoria and the Department businesses that divert river water. REGULATIONS / LICENCES / GUIDELINES with the community and all of Human Services regulate our other stakeholders (see the environmental and public We work with a wide range of Our relationships, page 54). health aspects of our business. partners including the Port Phillip MELBOURNE WATER and Westernport Catchment We are responsible for managing Management Authority, the SERVICE $8.7 billion of water supply, PROVIDERS SERVICE WATERWAYS Municipal Association of Victoria, AGREEMENTS CHARTER sewerage and drainage assets, as Sustainability Victoria and well as natural assets such as rivers universities. Research organisations, METROPOLITAN, and creeks. These assets service such as the CSIRO and Cooperative RURAL & REGIONAL COUNCILS WATER AUTHORITIES 3.4 million people in an area Research Centres, engineering spanning 12,800 square kilometres. consultants and contractors who carry out tasks ranging from inspecting and maintaining CUSTOMER CONTRACTS assets to catchment surveillance and litter removal, also assist ENERGY & WATER us to achieve our objectives. OMBUDSMAN VICTORIA WATER, RECYCLED We are involved with a wide CUSTomERS SEWERAGE WATER WATERWAYS CUSTomERS CUSTomERS CUSTomERS range of community stakeholders CONSUMER including ‘Friends of’, Landcare, UTILITIES ADVocACY resident and environment groups, CENTRE advisory bodies, rural landowners and the education sector. INDUSTRY STRUCTURE AND REGULATORY FRAMEWORK Jetty north-east of the Western Treatment Plant, Port Phillip Bay 4 MELBOURNE WATER SUSTAINABILITY REPORT 2007–2008 5 Water resources Natural Financial viability