AGL is a signatory to the ten Principles of the United Nations Global Compact (UNGC). These principles are derived from the Universal Declaration of Human Rights, the International Labour Organisation’s Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development, and the United Nation’s Convention Against Corruption.
Our commitment to the UNGC principles is supported by AGL’s Values and our Code of Conduct, which set out our expectations of the behaviour of AGL’s directors, employees, and contractors. Additionally, we have embedded the principles of the UNGC in our Supplier Code of Conduct, which requires all suppliers that we engage under our standard contracts to comply with the UNGC principles. Further information is provided in our 2018 UNGC Communication on Progress.
Through the UNGC, AGL has committed to taking steps to advance the broader goals of the United Nations, particularly the Sustainable Development Goals (SDGs). AGL considers that achieving the SDGs is not only the right thing to do from a social and environmental perspective, but it also presents an important opportunity for business, government, and the community to create shared value in the process.
AGL is making progress towards integrating the SDGs into our long-term strategy. AGL recognises that the SDGs need to be addressed in a holistic manner, however we believe our initial focus should be on those SDGs that correspond to areas where our activities have the greatest impact, and which affect AGL’s ability to create value.
The SDGs formed a relevant consideration during the materiality review process that was undertaken in FY18, with the participating stakeholders being asked to identify the SDGs that they considered to be most material to AGL’s business. Refer to the Materiality section of this report for more information about the materiality review process.
We consider the SDGs most material to our business to be:
SDG13 – Take urgent action to combat climate change and its impacts
Beyond the projected physical impacts of climate change, AGL has also given serious consideration to the transitional risks and opportunities associated with the energy sector’s transition towards a low-carbon economy. We believe that staged decarbonisation of the economy is a fundamental imperative that will drive the future of energy generation in Australia. See our supplementary report to the FY18 Sustainability Report, Powering a Climate Resilient Economy, for further detail on our position on these issues.
As our Greenhouse Gas Policy elaborates, we have made a strong commitment to a range of measures that will drive the orderly decarbonisation of the energy sector, including the closure of all our existing coal-fired power stations by 2050 and our continued investment in new renewable and near-zero emissions technologies. See the Transition to low carbon energy and Power station transition and closure sections for further details of the commitments we have made in this regard, and the progress we are making.
SDG 7 – ensure access to affordable, reliable, sustainable and modern energy for all
As the provider of an essential service, we recognise the importance of providing cost-effective energy for our customers and empowering them with appropriate information and tools to enable them to make informed decisions about their energy usage. See the Energy prices and affordability and Customer-led approach and delivery sections for more information about the measures we are taking to help our customers manage their energy costs.
AGL is also committed to playing a leading role in developing a pathway to a modern, decarbonised electricity generation sector. We are a significant investor in renewable energy and have invested over $3 billion in renewables since 2005. Refer to the Transition to low carbon energy section for more information about the important investments AGL has made in this area.
SDG 5 – Achieve gender equality and empower all women and girls
We recognise the importance of gender equality as a basic human right and as a value capable of improving business performance and economic growth. Gender equality is an important part of our Diversity and Inclusion Policy, which articulates our belief that diversity in the backgrounds and perspectives of our people enables AGL to have a better understanding of our customers and a greater ability to engage genuinely in the communities in which we operate.
Reflecting this view, we set ourselves a target to increase the number of women in our Senior Leadership Pipeline1 to 50% by FY22. Refer to the Workplace culture and talent section for further information about AGL’s important initiatives in this regard.
SDG 9 – Build resilient infrastructure, promote sustainable industrialisation and foster innovation
AGL continues to take a market leading approach to Australia’s energy market transformation. One of our strategic objectives is to become an orchestrator of large and small assets. This is in recognition of the current transformation of the energy industry from the traditional centralised generation model to a more distributed and integrated energy supply chain. In this context, we are embracing innovation in behind-the-meter technologies, partnering with the government and peers in the energy sector. Refer to the Product innovation section for examples of the innovative approach that AGL takes to product and service delivery.