Other
FY19 Target Summary
FY19 Target | Met / Not Met / Ongoing | FY19 Performance |
|---|---|---|
Energy market evolution | ||
Publish two thought leadership papers which contribute to energy policy that facilitates sustainable, secure, reliable, affordable and decarbonised electricity supply. | Met | During FY19, AGL employees were involved in publishing the following thought leadership papers:
|
Power station transition and closure | ||
Establish a regional 1 community engagement program to support the Liddell transition. | Met | Ongoing multi-tiered stakeholder engagement focused on raising awareness, understanding and gaining support and guidance to manage the retirement of Liddell aimed at minimising the potential negative social and economic impacts on the Hunter region. |
Publish AGL’s preferred options for diversification and development of the Liddell Power Station and surrounding site. | Not Met | On recommendation from sponsors the project has made a considered decision to hold publication until early FY20. The Liddell Innovation Project was launched and called for expressions of interest to repurpose possible surplus infrastructure and diversify AGL Macquarie landholdings and other resources. The Project received applications from 27 regional, national and international organisations and is continuing to work through feasibility and conduct further investigations. |
Business and investment leadership | ||
RepTrak reputation ranking: Within the top 30 companies in Australia.2 | Not Met | AGL‘s Reptrak ranking was 49th at the end of FY19, which represented a decline in our ranking since the end of FY18. This drop has been driven by declining scores on three important dimensions of reputation – leadership, workplace and citizenship. This decline in reputation was consistent with scores across the energy industry as a whole. |
Energy prices and affordability | ||
Financial Inclusion Action Plan: 100% completion of commitments. | Not Met | All but two of AGL's commitments under the Financial Inclusion Action Plan were delivered. Those not delivered related to subcomponents of broader strategies which remain on track - supporting employees experiencing financial difficulty and progressing a diverse and inclusive workforce leveraging specific recruitment strategies. |
Renew AGL's Affordability Initiative by allocating a further $6 million over three years. | Met | |
Completion of the NSW Solar Power for Community Housing Partnership. | Not Met | New South Wales properties have been identified and solar upgrades underway with an expected completion during FY20. |
Customer-led approach and delivery | ||
AGL churn rate: lower than the measurement for the ‘rest of the market’ as at the end of FY19.34 | Met | Refer to AGL's customer churn data here. |
Net Promoter Score: higher than other Tier 1 retail competitors. | Not Met | AGL’s Net Promoter Score at end-FY19 was -11.1 and lower than both Origin and Energy Australia. Although AGL did not meet this target, AGL's average NPS for FY19 was an improvement from the FY18 average and is our highest average FY score since tracking began. |
Product innovation | ||
Increase in monthly average usage of My Account and AGL App: 30% as compared with 30 June 2018 | Met | Refer to AGL's digital adoption data here. |
Data and IT security | ||
Reportable privacy incidents: 05 | Met | Refer to Systems & Processes scorecard in the FY19 Annual Report. |
Notifiable data breaches realised by a material risk relating to cyber security, data governance, or failure of internal controls: 06 | Met | Refer to Systems & Processes scorecard in the FY19 Annual Report. |
Public policy engagement | ||
AGL will publish all material submissions in relation to public policy matters on The Hub.7 | Met | View AGL's material submissions in relation to public policy matters here. |
AGL will annually disclose its membership of groups which may influence public policy. | Met | AGL's list of membership of industry associations can be found here. |
Stakeholder advocacy | ||
AGL will publish social media posts in relevant social networks with an average target audience engagement of 1% per post.8 | Met | The average engagement rate across Facebook, LinkedIn and Twitter for FY19 was 3.18%. |
Community engagement | ||
AGL will host at least four community events for each operational/development site to allow for community views to be raised and discussed in public.910 | Met | Refer to AGL's community event data here. |
Workplace culture and talent | ||
Key talent retention ≥80%11 | Met | Refer to AGL's key talent retention data here. |
Women in the Senior Leadership Pipeline = 50% by 2022 | Ongoing | Refer to AGL's women in leadership data here. |
Implement a new methodology for measuring enterprise-wide employee culture and engagement, and report results from the baseline assessment in the FY19 Sustainability Report. | Met | Refer to AGL's employee engagement data here. |
Strong and ethical governance | ||
Number of substantiated material breaches of AGL’s Code of Conduct: 012 | Met | Refer to the Systems & Processes scorecard in the FY19 Annual Report. |
Number of legislative non-compliances that result in adverse court findings: 0 | Met | Refer to legislative non-compliance summary here. |
Compliance training completion rate by eligible AGL employees: 100%13 | Not Met | With the recent introduction of new systems AGL received feedback from our people that meeting deadlines for the 2019 compliance training modules was challenging. As a result, AGL Macquarie was granted an extension to complete their compliance training by 24 July 2019.
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Health and safety | ||
Not Met | Total injury frequency rate (AGL): 2.1 | |
Not Met | ||
Total Injury Frequency Rate (combined AGL and contractors): ≤1.9 | Not Met | |
Contractor and supplier management | ||
Prequalification rate of contractors working at AGL: 100% | Not Met | Changes to the implementation of AGL’s HSE Contractor Management Standard over FY19 meant that this target was not able to be met. From FY20, the way in which targets will be set (and responsibility for delivery embedded) will be improved. |
AGL Supplier Agreements signed in FY19 to include the AGL Supplier Code of Conduct: 100% | Met | Information regarding AGL's suppliers can be found in the supplier profile, supplier performance and first tier suppliers sections in the data centre. |
Proportion of material supplier partners evaluated for compliance with the AGL Supplier Code of Conduct: 100%14 | Met | |
Proportion of material supplier partners compliant with the AGL Supplier Code of Conduct, or which have corrective action plans in place: 100%14,15 | Met | |
Transition to low carbon energy | ||
Compliance with AGL Greenhouse Gas Policy: 100% | Met | |
Total number of customers signed up to AGL's Future Forest carbon offset product: >25,00016 | Not Met | AGL has focused on other customer initiatives over FY19. As at 30 June 2019 AGL had 11,330 active customer accounts on the Future Forest carbon offset program (FY18: 7,982). |
Annually offset the greenhouse gas emissions from electricity consumed at AGL’s corporate workplaces17 | Met | Abatement was purchased to offset 100% of the greenhouse gas emissions associated with electricity consumed at AGL’s corporate workplaces. |
Production of a report consistent with FSB TCFD principles | Met | Refer to AGL's FY19 Carbon Scenario Analysis special report. |
Renewable energy | ||
Having permitted sites available for the development of utility scale renewable energy projects.18 | Met | AGL holds one permitted renewable energy development site, the Barn Hill Wind Farm located in South Australia. |
Minimising other environmental impacts | ||
Environmental Regulatory Reportable Incidents: ≤12 | Met | Refer to AGL's legislative non-compliance summary here. |
Financial management | ||
Underlying profit after tax: in line with earnings guidance for FY19. | Met | Refer to the FY19 Annual Report. |
Achieve return on equity targets consistent with AGL Remuneration Framework. | Met | Refer to the FY19 Annual Report. |
Total shareholder return outcomes reflected in AGL Remuneration Framework. | Met | Refer to the FY19 Annual Report. |
Achieve FY19 component of AGL's Business Optimisation Program.19 | Not Met | As announced at AGL's FY19 half-year results presentation, the FY19 component of the Business Optimisation Program was lowered to ~$60 million from ~$120m as previously announced. |
Reliable energy | ||
Achieve budgeted equivalent availability factor (EAF) across AGL’s power generation fleet.20 | Not Met | FY19 overall EAF: 78.4%; FY19 Budgeted EAF 84.0%. |
- 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 ‘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.
- 16 This relates to the total number of customer accounts that were active on AGL's Future Forest carbon offset program during FY19.
- 17 Comprises offices under AGL's operational control as defined by National Greenhouse and Energy Reporting Act 2007.
- 18 A permitted site is a site for which a development application approval has been obtained.
- 19 AGL's Business Optimisation Plan as described in the Cost efficiency discussion in the Financial management section.
- 20 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.