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UN Global Compact: Communication on Progress

I am pleased to affirm my support for the ten Principles of the United Nations Global Compact covering the areas of Human Rights, Labour, Environment and Anti-Corruption.

Since becoming a signatory to the United Nations Global Compact (UNGC) in 2016, AGL is proud to be one of over 9,500 business signatories to the UNGC across 160 countries, including over 150 actively participating organisations in Australia.

Brett Redman
Managing Director & CEO, AGL Energy Limited
8 August 2019

Below, you will find our 2019 UNGC Content Index, designed to provide our stakeholders with an overview of how we are meeting or implementing the UNGC principles through links to relevant sections of AGL’s 2019 reporting suite.

Area	Principle		Response or link to 2019 Reporting Suite
Human Rights	1	Businesses should support and respect the protection of internationally proclaimed human rights	Behaviour of AGL's directors, employees and contractors is guided by the AGL Values and the AGL Code of Conduct. AGL operates in Australia. While AGL undertakes some activities in some overseas jurisdictions it has no assets, customers nor direct employees outside of Australia. AGL's Annual Report and Data Centre covers many issues that relate to human rights, including: • Governance summary • Employee health and safety • Employee experiences and behaviours
	2	Make sure that they are not complicit in human rights abuses
Labour	3	Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining	AGL upholds the freedom of association and the right to collective bargaining. As at end of FY19, more than 47% of AGL's workforce was covered by collective bargaining agreements. AGL operates in Australia only in accordance with the labour laws of Australia and AGL’s Code of Conduct. AGL's Supplier Code of Conduct, which applies to our suppliers, prohibits any form of child, forced or involuntary labour, and requires our suppliers to abide with all international standards and domestic regulations relating to the employment of children.
	4	The elimination of all forms of forced and compulsory labour
	5	The effective abolition of child labour
	6	The elimination of discrimination in respect of employment and occupation	The People scorecard within AGL's Annual Report describes our approach to diversity and inclusion, and the removal of discrimination, and how these attributes are promoted and embedded throughout our business. Further information on our approach to diversity and inclusion is also available on our website. Our Supplier Code of Conduct requires our suppliers to promote an inclusive workplace free of discrimination, harassment, bullying and other unlawful behaviour on discriminatory grounds.
Environment	7	Businesses should support a precautionary approach to environmental challenges	AGL's Environment Policy sets out our corporate environmental vision, of protecting the environment and minimising our environmental footprint in the areas where we operate. Our precautionary approach to climate change is reflected in the AGL Greenhouse Gas Policy and expanded on within the Environment scorecard in our FY19 Annual Report, which, together with the supplementary FY19 Carbon Scenario Analysis Report, is prepared in accordance with the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) voluntary disclosure framework.
	8	Undertake initiatives to promote greater environmental responsibility	AGL is committed to playing a leading role in developing a pathway to a modern, decarbonised generation sector through investment in new renewable energy and near-zero emission technologies, as well as energy storage solutions. Our Annual Report covers issues that relate to environmentally responsible initiatives and technologies. These can be found in the Environment and Infrastructure scorecards.
	9	Encourage the development and diffusion of environmentally friendly technologies
Anti-corruption	10	Businesses should work against corruption in all its forms, including extortion and bribery	AGL has embedded risk-based anti-bribery and corruption controls throughout our processes and policies, including within AGL’s Anti-Bribery, Corruption and Fraud Policy and AGL’s Code of Conduct. We also have a comprehensive Anti-Money Laundering / Counter-Terrorism Financing Compliance Program and an Australian Financial Services Licence Compliance Program within our wholesale markets (energy trading) areas. In this regard we conduct regular risk assessments to determine the adequacy of the controls that are in place.