Other

GRI 102: General Disclosures 2016

102-1: Name of the organization

AGL Energy Limited

102-2: Activities, brands, products, and services

AGL sells gas and electricity and related products and services to around 3.7 million customer accounts in Australia. Refer to the How we source energy page on our website for further information. Refer to How we create value section in Annual Report.

102-3: Location of headquarters

AGL's head office is located at L24/200 George Street, Sydney, NSW, 2000. Refer also to the Contact us section of the AGL website.

102-4: Location of operations

AGL operates in Australia. While AGL undertakes some activities in some overseas jurisdictions it has no assets, customers nor direct employees outside of Australia.

102-5: Ownership and legal form

Shareholding information is included in the Annual Report 2019.

102-6: Markets served

AGL sells gas and electricity to customers in New South Wales, Victoria, South Australia and Queensland, and gas to the Western Australian gas market. AGL services residential, business, commercial and industrial, and wholesale market segments. Refer to the Energy sold and Retail markets by state and fuel type charts for further information.

102-7: Scale of the organization

Total number of employees is reported in Employees by location. Operations are displayed in the How we source energy section of our website. Key financial data is available in the Annual Report 2019. The quantity of energy sold is available in the Energy sold chart.

102-8: Information on employees and other workers

The Employees by employment status chart shows a breakdown of permanent versus fixed term and full-time versus part-time employee by gender. This information is not broken down by region, however the Employees by location chart provides a breakdown of all employee types by location and gender. The number of hours worked by contractors versus the number of hours worked by employees is available in the Health and safety - contractors and Health and safety - employees charts respectively. There have been no significant variations in employee numbers during FY19. Footnotes provided for each chart detail any relevant assumptions.

The number of employees is separately broken down by contract type, location, employment status and gender. Providing additional combinations of breakdowns is considered not applicable to our organisation, as these disclosures do not cover the specific impacts that make the topic material.

102-9: Supply chain

AGL's supply chain extends to in excess of 3,000 vendors. Location information on suppliers is available in the First tier suppliers table in the data centre.
AGL has embedded a Supplier Code of Conduct into procurement practices. Details of supplier performance against the Code of Conduct can be found in the Supplier performance table in the data centre.

102-10: Significant changes to the organization and its supply chain

Changes to AGL's Board composition during FY19 are outlined in the Governance Summary of AGL's Annual Report.
Acquisition of subsidiaries and businesses and Disposal of subsidiaries and businesses is detailed in the Annual Report.
There have been no changes to AGL’s share capital structure in the FY19 period. At 30 June 2019 total AGL shares on issue were 655,825,043.
AGL has not had significant changes in location of suppliers, the structure of supply chain or relationships with suppliers in FY19.

102-11: Precautionary Principle or approach

AGL's approach to risk management and business resilience is provided in the Operating Environment section of the Annual Report.
Our Environment Policy generally reflects the precautionary approach to environmental issues, while we set out our precautionary approach to climate change in our Greenhouse Gas Policy.

102-12: External initiatives

AGL is a signatory to the following external initiatives:
- United Nations Global Compact (from FY17). Refer to the UNGC COP section.
- We Mean Business coalition (AGL has signed up to three commitments from FY16).
- The Energy Charter (from 1 January 2019) is a whole-of-industry initiative to embed customer-centric culture and conduct in energy businesses to create real improvements in affordability and service delivery. Refer to Customers.
These are non-binding, voluntary initiatives.

102-13: Membership of associations

Industry associations which AGL is a member of are listed in the Industry Associations table in the data centre.

102-14: Statement from senior decision-maker

Refer to the Managing Director and CEO's Report from the Managing Director and CEO, Brett Redman in our FY19 Annual Report.

102-15: Key impacts, risks, and opportunities

AGL's approach to risk management and business resilience is provided in the Operating Environment section of the Annual Report.

102-16: Values, principles, standards, and norms of behaviour

AGL's purpose and values are outlined in the Purpose, Values & Strategy section in the Annual Report. Behaviour standards are addressed in the People section.

AGL's Code of Conduct is included in the induction pack for all our new starters. We run a structured induction program that requires the completion of compulsory compliance training modules. Each compliance module includes a quiz to test understanding, with defined pass mark requirements.

On an annual basis, our people are required to complete mandatory compliance training topics. Refer for Training data in the data centre. Our people are also required to make an annual declaration indicating whether or not they have any actual or potential conflicts of interest.

102-18: Governance structure

An overview of governance and board committees is provided in the Governance Summary of the FY19 Annual Report.

102-40: List of stakeholder groups

A list of stakeholder groups is detailed in the Communities & Relationships section.

102-41: Collective bargaining agreements

The percentage of people employed under enterprise bargaining agreements is available in the download of the Awarded employees graph.

102-42: Identifying and selecting stakeholders

Refer to Operating Environment and Communities & Relationships sections of the Annual Report.

We engage in constructive dialogue with our stakeholders to understand and respond to issues that are important to our people, customers, investors, suppliers and partners, regulators, landowners and the wider community. It is our aim to have strong and productive relationships with our stakeholders such that they know that we listen to them, pay authentic consideration to any concerns raised, and use transparent processes to make evidence-based decisions. We like to see our stakeholders choosing to work productively with us, and we treat our stakeholders with respect so that they choose to advocate for AGL where appropriate.

102-43: Approach to stakeholder engagement

Refer to Operating Environment and Communities & Relationships sections of the Annual Report.

102-44: Key topics and concerns raised

Refer to Operating Environment section of the Annual Report.

102-45: Entities included in the consolidated financial statements

Entities included in the consolidated financial statements are available in AGL's Financial Report.

102-46: Defining report content and topic Boundaries

Refer to 103-1 for each of the material themes below.

102-47: List of material topics

Refer to Operating Environment in Annual Report.

102-48: Restatements of information

Any restatements of previous years’ data are identified within footnotes to charts or tables. The effects of any such re-statements are not considered to be material to stakeholders.

102-49: Changes in reporting

Refer to About this report section of Annual Report.

102-50: Reporting period

1 July 2018 - 30 June 2019

102-51: Date of most recent report

9 August 2018

102-52: Reporting cycle

Annual

102-53: Contact point for questions regarding the report

Social media contact points are available in the Connect section of the footer.

102-54: Claims of reporting in accordance with the GRI Standards

This report has been prepared in accordance with the GRI Standards: Core option. Refer also to the About this report section.

102-55: GRI content index

This index meets the requirements of 102-55.

102-56: External assurance

Independent external assurance has been sought over selected content, to verify that it is an honest and accurate account of AGL’s social and environmental performance throughout the financial year. Refer to the Assurance statement and About this report sections. AGL's relationship with the assurance provider is described under the “Independence” section of the Assurance Statement. Responsibilities of senior executives with respect to the report and assurance process are described under the “AGL's responsibilities” section of the Assurance Statement, and the Assurance Statement is addressed to the Directors of AGL. It is AGL's intention to continue to have future sustainability disclosures assured to the AA1000 Assurance Standard and/or ASAE 3000 Standard.

GRI 103: Management Approach 2016

103-1: Explanation of the material topic and its boundaries

Refer to Infrastructure scorecard in Annual Report.

Reliability of energy is experienced externally by our customers in the states in which we operate.

We have some direct control on reliability, such as maintaining our existing generation assets and investing in new, reliable forms of generation. Other contributing impacts include energy policy; regulation; and availability and reliability of generation provided by other players in the energy market.

103-2: The management approach and its components

Refer to Infrastructure scorecard.

Refer to AGL Greenhouse Gas Policy and NSW Generation Plan.

Refer to Data Centre.

103-3: Evaluation of the management approach

Refer to Infrastructure scorecard. Refer to FY19 targets table in Data Centre.

GRI 103: Management Approach 2016

103-1: Explanation of the material topic and its boundaries

Refer to Systems & Processes scorecard in Annual Report.

AGL operates in a highly competitive environment. We differentiate ourselves by employing our systems, data capabilities and insights (including energy portfolio management and customer analytics) to manage risk, deliver strong customer products, manage costs and build our business for the future.

Impacts related to AGL's insights are experienced within and outside the organisation by AGL's workers, shareholders and customers. We engage directly with the issue of insights to support and enhance business activities.

103-2: The management approach and its components

Refer to Systems & Processes scorecard.

AGL has the following external policies:
• AGL Privacy Policy (Including Credit Reporting Policy)
• AGL Risk Management Policy
• AGL Securities Dealing Policy
• AGL Supplier Code of Conduct

AGL has also established the following internal policies:
• Information Technology Policy
• Information Security Policy
• Cybersecurity Framework
• Wholesale Risk Management framework

Refer to Data Centre.

103-3: Evaluation of the management approach

Refer to Systems & Processes scorecard. Refer to FY19 targets in Data Centre (Reportable privacy incidents and notifiable data breaches).

GRI 418: Customer Privacy

418-1: Substantiated complaints concerning breaches of customer privacy and losses of customer data.

Refer to Systems & Processes scorecard.

GRI 103: Management Approach 2016

103-1: Explanation of the material topic and its boundaries

Refer to Communities & Relationships scorecard in Annual Report.

The strength of working relationships with key stakeholders; our brand and reputation.

AGL recognises that community trust in institutions, including energy companies, is low. By making it a strategic priority in FY19 to build and maintain our social licence we are demonstrating our commitment to driving the cultural change necessary to gain the increased trust of our customers and the community, which, in turn, is needed to deliver long-term sustainable value for our shareholders. Managing our licence to operate enables us to pursue our growth agenda and requires a commitment to transparency and investment in the community.

The impacts of social licence to operate are experienced internally and outside of the organisation. We engage directly with shareholders, customers, local communities, and the broader society to develop trust in the community.

103-2: The management approach and its components

Refer to Communities & Relationships scorecard.

AGL has the following external policies:
• AGL Political Donations Policy
• Community Engagement Policy
• Community Complaints and Feedback Policy
• AGL Supplier Code of Conduct

AGL has also established the following internal policies:
• Tax Risk Management Policy: sets out clear objectives and accountabilities for managing tax risk. The policy is endorsed by the Board and reviewed every two years.

Refer to Data Centre.

103-3: Evaluation of the management approach

Refer to Communities & Relationships scorecard. Refer to FY19 targets in Data Centre.

GRI 415: Public Policy 2016

415-1: Political contributions

Refer to Communities & Relationships scorecard. No political donations (monetary or in-kind) were made during FY19, nor were any political donations made through third parties.

GRI 413: Local communities

413-1: Operations with local community engagement, impact assessments, and development programs

100% of AGL's operational assets have publicly available environmental impact assessments, local community development programs and formal local community grievance processes.

GRI 103: Management Approach 2016

103-1: Explanation of the material topic and its boundaries

Refer to Customers scorecard in Annual Report.

AGL operates in a highly competitive retail environment. We are focused on delivering a consistently superior customer experience that meets the changing needs of our customers and generates long-term value. We directly impact our customers' experience through our products and services.

Affordability, fairness and simplicity are experienced externally by our customers in the states in which we operate. We have some direct control on energy prices and affordability. Other contributing impacts include energy policy, regulation, wholesale energy costs, and transmission costs.

103-2: The management approach and its components

Refer to Customers scorecard.

AGL has the following external policies:
• Customer Hardship Policy (Staying Connected)
• AGL Dispute Resolutions Policy
• Customer Charter

AGL has also established the following internal policies:
• Domestic violence policy: ensures calls are transferred to hardship specialists, ensures the availability of flexible payment arrangements and debt relief on a case-by-case basis, and provides for additional steps being taken to protect account privacy.

Refer to Data Centre.

103-3: Evaluation of the management approach

Refer to Customers scorecard. Refer to FY19 targets in Data Centre.

GRI 417: Marketing and labelling 2016

417-3: Incidents of non-compliance concerning marketing communications

AGL has not identified any non-compliance with regulations and/or voluntary codes.

GRI 103: Management Approach 2016

103-1: Explanation of the material topic and its boundaries

Refer to People scorecard in Annual Report.

We are focused on attracting, developing and retaining the right talent to build a safe, engaged and performance-driven culture that can deliver the best outcomes for our customers.

Impacts of workplace culture and talent are experienced mainly within the organisation. We engage directly with the issue of workplace, talent and culture with our people, investors, customers and the broader community.

103-2: The management approach and its components

Refer to People scorecard.

AGL has the following external policies:
• AGL Diversity and Inclusion Policy
• AGL Health and Safety Policy
• AGL Code of Conduct

AGL has also established the following internal policies:
• Parental Leave Policy: operates independently of any Government Paid Parental Leave schemes allowing for paid parental leave entitlements of 20 weeks.
• Breastfeeding Policy: provides for lactation breaks and access to appropriate facilities for breastfeeding.
• Family and Domestic Violence Policy: provides AGL employees with up to 10 days paid Domestic Violence Leave along with flexible work arrangements and access to counselling services through the Employee Assistance Program and a special Family and Domestic Violence hotline.

AGL's Whistleblower Protection Policy provides avenues for our people to report corrupt, illegal or undesirable conduct (including anonymously, confidentially or to an independent third party through the AGL Ethics Line). We are committed to protecting and respecting the rights of any person who reports wrongdoing in good faith. The Policy includes a reporting and investigation mechanism that is objective, confidential and independent which protects the reporting employee from reprisal or disadvantage.

Refer to Data Centre.

103-3: Evaluation of the management approach

Refer to People scorecard. Refer to FY19 targets and metrics in Data Centre.

GRI 405: Diversity and equal opportunities

405-1: Diversity of governance bodies and employees

Refer to People scorecard in the Annual Report and Data Centre.

AGL reports the following age breakdowns for employees: under 20, 20-29, 30-34, 35-44, 45-54, 55-64, 65 and over.

GRI 403: Occupational health and safety 2018

403-1: Occupational health and safety management system

AGL's Health Safety and Environment Management System (HSEMS) was developed to meet the minimum compliance requirements across Australia and our HSE standards are designed to meet the requirements of AS4801, ISO 14001 and AS3806.

The HSEMS establishes the standards and procedures that apply to AGL Business Units, providing a consistent HSE risk management framework and ensuring HSE compliance requirements and obligations are integrated into business processes across the organisation. The HSEMS is hierarchical in that requirements at any level must meet and support the requirements at higher levels, and applies to all AGL Employees, Contractors and Visitors.

403-2: Hazard identification, risk assessment, and incident investigation

AGL's HSE Risk Management Standard and methodologies provide the overarching minimum controls and guidance to ensure consistent and effective risk management processes, including risk assessments, JSEA and SWMS, are applied across our sites, ensuring risks are appropriately assessed and mitigated in accordance with the hierarchy of controls. During FY19, a key initiative to improve leadership focus on key risk controls has been the implementation of Critical Control Checks, an in-field audit tool ensuring critical controls regarding People, Process and Plant are in place and effective for high risk activities. Focus has also been on ensuring our systems and processes are Safe, Simple, and Efficient and has seen the development of an AGL-wide Safe System of Work (SSoW) framework that provides guidance on permitted and non-permitted work on-site and the minimum risk controls required.

Our hazard, incident and near miss reporting systems are designed to ensure that issues are reported, actioned and investigated in a consistent and effective manner, while enabling us to monitor and action emerging trends. A key focus of FY19 was the improvement in the reporting and management of high potential near miss events and the rollout of the "Stop Unsafe Work" campaign which aimed to ensure all employees, contractors and visitors to AGL sites are not only empowered, but responsible, to stop unsafe work.

403-3: Occupational health services

Occupational Health and Hygiene at AGL deals specifically around the identification and control of occupational health hazards for prevention and potential rehabilitation from subsequent injury and illness. An ongoing initiative commenced in FY19 is the implementation of a standard platform to facilitate improved health monitoring and surveillance, increasing visibility and consistency in managing health risks, including occupational health exposures, pre-employment medicals and monitoring of hazards such as noise and dust.

Centralised coordination of health and hygiene programs ensures all people have access to the same resources, opportunities and support to drive a safe and healthy workplace and the quality of service providers is assured through centralised management and approval by the Health and Hygiene team.

403-4: Worker participation, consultation, and communication on occupational health and safety

The Health Safety and Environment Management System (HSEMS) was developed with wide consultation throughout all AGL Business Units with a process used during implementation to ensure feedback was received from all levels within the organisation. This process was governed by a business leadership group and HSEMS steering committee. Within the HSEMS, there is a HSE Consultation and Communication Methodology which details the minimum controls and requirements for all Business Units in regards to managing HSE consultation and communication.

OHS committees are in place across AGL operational sites and corporate centres with membership comprised of representatives from senior managers, line managers, supervisors, safety officers, technical experts and employees. At least half of the members of the Committee must be employees who are nominated by Designated Work Groups (DWG).

The function of each committee is to:
• Facilitate co-operation between the employer and employees in instigating, developing and carrying out measures designed to ensure the health and safety at work of the employees
• Formulate, review and disseminate to the employees the standards, rules and procedures relating to health and safety that are to be carried out or complied with at the workplace; and
• Other agreed objectives in line with OHS Act such as giving consideration to broad concerns such as health and safety issues that are common to the workplace at large, and to planning, implementing and monitoring programs to address these issues

Each committee meets on a monthly basis to review and provide feedback on HSE performance and improvement initiatives and to raise emerging issues and concerns as they relate to performance, compliance and the effectiveness of HSE policies, standards and procedures.

403-5: Worker training on occupational health and safety

The HSE Training Methodology sets out the minimum controls for AGL sites in relation to management of HSE training and outlines the requirement for each site to have a HSE training and competency program relevant to the nature of the work and the HSE risks associated with the work being undertaken. This program must include relevant inductions for all employees, contractors and visitors entering an AGL site, schedule of toolbox talks, and identification and verification of technical competencies required for each role and team. A centralised E-Learning platform is provided via "Workday" and enables the delivery of HSE learning modules and compliance training requirements.

The Group Operations Competency and Development program ensures employees have the technical competencies to do their job safely, effectively and efficiently. This strategy is achieved by supporting the generation assets in:
•Identifying the technical competencies required for each role and team
•Maintaining a workforce development plan to ensure the skills are in place.
•Maintaining high quality training and assessment for technical competency development
•Enabling leaders to simply access training records and reports for their teams to plan development activities.​

403-6: Promotion of worker health

At AGL, our Health and Wellbeing function provides our people with the tools and resources to make lifestyle choices to lead a healthy life both personally and professionally and for the prevention/mitigation of injuries and illnesses through programs targeting mental and physical health awareness and improvement.

All employees have access to the same information, resources and opportunities through core health and wellbeing initiatives, including:
• Employee Assistance Program
• Health Checks
• Flu Vaccinations
• Skin Checks
• R U OK Day
• Health Campaigns i.e. Spring into Summer with the Global Challenge; autumn wellness; Holiday season health and safety
• Mental Health Training

403-7: Prevention and mitigation of occupational health and safety impacts directly linked by business relationships

All hazards identified are risk assessed and controlled in line with our previous statements regarding AGL's approach to risk and incident management.

403-9: Work-related injuries

Refer to People scorecard.

Refer to Data Centre for the following metrics:
• Health and safety performance - employees
• Health and safety performance - contractors
• Health and safety performance – combined
• Other HSE Performance indicators

GRI 103: Management Approach 2016

103-1: Explanation of the material topic and its boundaries

Refer to Environment scorecard in the Annual Report.

AGL acknowledges and accepts the scientific consensus on climate change. We recognise that to stay within concentrations consistent with two degrees Celsius or less of global warming, a gradual decarbonisation of the electricity generation sector is required by 2050. Our approach to transitioning to a low-carbon future is set out within the AGL Greenhouse Gas Policy, which provides the framework within which we are structuring our greenhouse gas reduction activities.

The impacts of climate change are experienced within and outside our organisation. Impacts of climate change are also experienced outside the organisation, by customers, communities, and the environment in Australia and globally. We engage directly with the issue of climate change. Our Greenhouse Gas Policy sets out clear commitments for our operations and future investments.

Details on the major contributors of AGL's greenhouse gas emissions are provided in the Data Centre. Note: Complete FY19 data will be available in November 2019, following submission of AGL's Section 19 Report under the National Greenhouse and Energy Reporting Act. However, FY19 greenhouse gas emissions associated with our material emission sources can be found in the Data Centre.

103-2: The management approach and its components

Refer to Environment scorecard in the Annual Report. Refer to AGL's Greenhouse Gas Policy, which sets out clear commitments for our operations and future investments.

103-3: Evaluation of the management approach

Refer to Environment scorecard in Annual Report. Refer to Data Centre.

GRI 305: Emissions 2016

305-1: Direct (Scope 1) GHG emissions

Refer to Data Centre for further information.

Greenhouse gases included in AGL's footprints include CO2, CH4, N2O, HFCs, PFCs and SF6.

Emission factors and global warming potentials are sourced from the National Greenhouse and Energy Reporting (Measurement) Determination 2008, as amended for the relevant reporting year. Refer to Operational greenhouse gas footprint (material sites and fuels) in the data centre.

Scope 1 GHG emission numbers are preliminary only and will be finalised upon submission of AGL's National Greenhouse and Energy Reporting Section 19 Report to the Clean Energy Regulator in November 2019.

AGL does not report emissions of CO2 from biogenic sources as these emissions are considered immaterial to AGL's operational greenhouse gas footprint. Furthermore, there is no requirement (or associated methodology) for reporting these emissions under the National Greenhouse and Energy Reporting Act 2007.
Therefore, this disclosure is considered not applicable, because it does not cover the specific impacts that make the topic material to our organisation.

305-2: Energy indirect (Scope 2) GHG emissions

Refer to the Data centre.

AGL’s Scope 2 emissions are calculated as per the National Greenhouse and Energy Reporting Act 2007, which is neither a market- nor location-based methodology. However, AGL will report both its market-based and location-based Scope 2 GHG emissions when full data becomes available, in November 2019.

305-3: Other indirect (Scope 3) GHG emissions

Refer to the Energy supply greenhouse gas footprint in the data centre for further information.

All emissions data are calculated in CO₂ equivalent. Breakdown of this data by specific greenhouse gas is not available.

AGL does not report emissions of CO2 from biogenic sources as these emissions are considered immaterial to AGL's indirect (scope 3) emissions footprint.
Other indirect (scope 3) emissions are considered immaterial to AGL's indirect (scope 3) emissions footprint.
Therefore, disclosure of biogenic and other indirect (scope 3) emissions is considered not applicable, because they do not cover the specific impacts that make the topic material to our organisation.

305-4: GHG emissions intensity

Refer to the Data Centre for further information.

GRI 103: Management Approach 2016

103-1: Explanation of the material topic and its boundaries

Refer to Finance scorecard in Annual Report.

Impacts related to AGL's financial management are experienced within and outside the organisation, by AGL's workers, shareholders, customers, local communities, and the broader society and economy.

We contribute to our organisation's financial management directly but are conscious of the range of other external factors that contribute to our profitability.

103-2: The management approach and its components

Refer to Finance scorecard.

103-3: Evaluation of the management approach

Refer to Finance scorecard.