FY19 sustainability targets
We have established targets and commitments to drive performance, behaviours and transparency throughout FY19 and beyond, for each of the sustainability topics that emerged as potential material issues through the materiality review. We will report on our performance against each target in the FY19 Sustainability Report.
| Issue | FY19 target | Material issue |
|---|---|---|
| Energy market evolution | Publish two thought leadership papers which contribute to energy policy that facilitates sustainable, secure, reliable, affordable and decarbonised electricity supply. | |
| Power station transition and closure | Establish a regional1 community engagement program to support the Liddell transition. | |
Publish AGL’s preferred options for diversification and development of the Liddell Power Station and surrounding site. | ||
| Business and investment leadership | RepTrak reputation ranking: Within the top 30 companies in Australia2 |
| Issue | FY19 target | Material issue |
|---|---|---|
| Energy prices and affordability | Financial Inclusion Action Plan: 100% completion of commitments. | |
Renew AGL's Affordability Initiative by allocating a further $6 million over three years. | ||
Completion of the NSW Solar Power for Community Housing Partnership. | ||
| Customer-led approach and delivery | AGL churn rate3: lower than the measurement for the ‘rest of the market’4 as at the end of FY19. | |
Net Promoter Score1: higher than other Tier 1 retail competitors. | ||
| Product innovation | Increase in monthly average usage of My Account and AGL App: 30% as compared with 30 June 2018 | |
| Data and IT security | Reportable5 privacy incidents: 0 | |
Notifiable data breaches realised by a material risk6 relating to cyber security, data governance, or failure of internal controls: 0 |
| Issue | FY19 target | Material issue |
|---|---|---|
| Public policy engagement | AGL will publish all material7 submissions in relation to public policy matters on The Hub. | |
AGL will annually disclose its membership of groups which may influence public policy. | ||
| Stakeholder advocacy | AGL will publish social media posts in relevant social networks with an average target audience engagement of 1% per post 8. | |
| Community engagement | AGL will host at least four community events for each operational/development site9 to allow for community views to be raised and discussed in public10. |
| Issue | FY19 target | Material issue |
|---|---|---|
| Workplace culture and talent | Key talent11 retention ≥80% | |
Women in the Senior Leadership Pipeline = 50% by 2022 | ||
Implement a new methodology for measuring enterprise-wide employee culture and engagement, and report results from the baseline assessment in the FY19 Sustainability Report. | ||
| Strong and ethical governance | Number of substantiated material12 breaches of AGL’s Code of Conduct: 0 | |
Number of legislative non-compliances that result in adverse court findings: 0 | ||
Compliance training completion rate by eligible13 AGL employees: 100% | ||
| Health and safety | Total injury frequency rate (AGL): ≤1.1 | |
Total injury frequency rate (contractors): ≤3.5 | ||
Total injury frequency rate (combined AGL and contractors): ≤1.9 | ||
| Contractor and supplier management | Prequalification rate of contractors working at AGL: 100% | |
AGL Supplier Agreements signed in FY19 to include the AGL Supplier Code of Conduct: 100% | ||
Proportion of material supplier partners14 evaluated for compliance with the AGL Supplier Code of Conduct: 100% | ||
Proportion of material supplier partners15 compliant16 with the AGL Supplier Code of Conduct, or which have corrective action plans in place: 100% |
| Issue | FY19 target | Material issue |
|---|---|---|
| Transition to low carbon energy | Compliance with AGL Greenhouse Gas Policy: 100% | |
Total number of customers signed up to AGL's Future Forest carbon offset product: >25,00017 | ||
Annually offset the greenhouse gas emissions from electricity consumed at AGL’s corporate workplaces18 | ||
Production of a report consistent with FSB TCFD principles | ||
| Renewable energy | Having permitted sites19 available for the development of utility scale renewable energy projects. | |
| Minimising other environmental impacts | Environmental Regulatory Reportable Incidents: ≤12 |
| Issue | FY19 target | Material issue |
|---|---|---|
| Financial management | Underlying profit after tax: in line with earnings guidance for FY19. | |
Achieve return on equity targets consistent with AGL Remuneration Framework. | ||
Total shareholder return outcomes reflected in AGL Remuneration Framework. | ||
Achieve FY19 component of AGL's Business Optimisation Program20. | ||
| Reliable energy | Achieve budgeted equivalent availability factor (EAF) across AGL’s power generation fleet21. |
- 1. The region referred to is the Hunter Valley region of NSW, geographically bounded by Newcastle in the east to Scone in the west.
- 2. According to the latest RepTrak Pulse Report in FY19.
- 3. 'Churn' is defined as a completed transfer of a customer to a competing retailer. This churn target relates to residential and small business customers only and does not include commercial and industrial customers.
- 4. Rest of the market churn refers to churn that takes place in the market excluding churn from AGL.
- 5. 'Reportable incidents' as defined by the Office of the Australian Information Commissioner.
- 6. A 'material risk' as defined by the AGL Risk Framework.
- 7. Material submissions are those submissions that raise significant issues of public or regulatory policy, and which AGL’s stakeholders could reasonably be interested in having access to.
- 8. Social engagement rate is measured by the sum of interactions (likes/comments/shares/clicks) on a social 'post', divided into the number of times that post was displayed to an audience (impressions). The relevant social networks are Twitter, Facebook, LinkedIn and Instagram.
- 9. Given the relatively close proximity of AGL’s hydroelectric schemes to each other, these sites are together considered as a single site for the purposes of meeting this target.
- 10. This target applies to operational/development sites located within a distance of 5km, by road, of a residential community comprising at least 250 people, excluding operating facilities that generate less than 0.1 TWh/pa (based on FY18 generation figures). Notwithstanding the above restrictions, this target also applies to AGL Macquarie, Newcastle Gas Storage Facility, Silverton Wind Farm and Coopers Gap Wind Farm.
- 11. Employees identified as ‘key talent’ from AGL’s enterprise leadership team (ELT) and direct reports cohort.
- 12. Material breaches are those ranked ‘High’ or above according to AGL’s Fully Integrated Risk Management (FIRM) framework.
- 13. In accordance with the AGL allocation matrix.
- 14. A 'material supplier partner' is designated by AGL Procurement and Supply Chain where an ongoing supplier of goods or services is assessed to have a very high or extreme risk rating to the organisation in accordance with AGL's Fully Integrated Risk Management (FIRM) matrix. This definition will be used for the purpose of this FY19 target.
- 15. A 'material supplier partner' is designated by AGL Procurement and Supply Chain where an ongoing supplier of goods or services is assessed to have a very high or extreme risk rating to the organisation in accordance with AGL's Fully Integrated Risk Management (FIRM) matrix. This definition will be used for the purpose of this FY19 target.
- 16. ‘Compliant’ means that the supplier has answered that it complies with all questions in the Supplier Code of Conduct Questionnaire. Where the supplier states that it does not comply with a question, the supplier is required to commit to a mutually-agreed Corrective Action Plan, which is monitored over the course of the year.
- 17. This relates to the total number of customer accounts that were active on AGL's Future Forest carbon offset program during FY19.
- 18. Comprises offices under AGL's operational control as defined by National Greenhouse and Energy Reporting Act 2007.
- 19. A permitted site is a site for which a development application approval has been obtained.
- 20. AGL's Business Optimisation Plan as described in the Cost efficiency discussion in the Financial management section.
- 21. Power stations included are: Liddell, Bayswater, Loy Yang A, Torrens power stations, Somerton and Hydro power stations, and wind and solar farms under our operational control.