Coverage is for the financial year ended 30 June 2008. In a few cases, where there have been developments subsequent to the end of the reporting period, but prior to the printing deadline, we have included this information to make the report more time relevant. This is particularly so for Lost Time Injury data.
What we cover
All wholly-owned and operationally-managed businesses as at 30 June 2008 are included.
This year we are including the companies in the former Coles Group Limited that Wesfarmers acquired in November 2007. Where we can, we have reported on the performance of those businesses for a full 12 months, which extends beyond the Wesfarmers ownership period, to give a summary of their impacts that is as comprehensive as possible. However because reporting in the former Coles Group was of a different form you will notice some gaps in the data sets for these businesses that we are working to resolve for our 2009 report. We have also reported for the full year on the Australian Vinyls business that was acquired in September 2007, and the Coregas business we acquired in early 2007.
The structure of this report has grouped the Wesfarmers companies into retail, industrial and insurance businesses to allow the reader to easily review like activities, and groups a range of other part-owned businesses such as the Bengalla coal mine in New South Wales, Wespine softwood sawmill in Western Australia, Queensland Nitrates in Queensland and Gresham Partners Group Limited in the Wesfarmers section of the report. We provide links to websites for readers wishing to find out more about their activities. Within the report we also cover the operations of entities we do not fully own but for which we have operational control in the relevant divisional reports.
Safety data
Readers will notice on the safety performance graphs a reference to statistics being for the year to 30 June but “as at 30 September 2008”. This is because we adjust the numbers to take account of workers compensation claims lodged, or lost time that has been reported, up to 30 September relating to injuries sustained in the financial year under review, thus allowing for delayed impacts. It can mean that the numbers reported for a particular year have to be changed in subsequent reports, and also that they could be different to those in the Wesfarmers Limited Annual Report which is prepared at an earlier date.
Lost Time Injury Frequency Rate (LTIFR – please refer to the Glossary) numbers now include contractors unless otherwise specified in the reports of the individual businesses. Where it is possible to calculate an LTIFR for contractors – that is, where there is regular engagement and hours worked are available – the business is required to include this information. All businesses have reported on LTIFR except Coles, which is amending its reporting base to be consistent for the 2009 financial year.
Greenhouse emissions
Greenhouse emissions information contained in this report is generally based on calculations done in accordance with the Australian Greenhouse Office (AGO) Factors and Methods Workbook December 2006 version. Readers should note that some of the AGO’s emissions factors have changed from time to time and, accordingly, year-to-year changes in emissions data may in part be due to this rather than a change in the performance of a business unit in relation to greenhouse emissions. Further information is available at www.climatechange.gov.au.
We have used an emission factor for New Zealand for electricity generation and consumption from the Energy Greenhouse emissions 1990-2006. Further information is available at www.med.govt.nz.
Report preparation
Data collection and report drafting is the responsibility of business unit environmental, safety, sustainability and community relations representatives who are part of a working group convened by our Corporate Office. Drafts were reviewed by the Corporate Office prior to detailed discussions with the contributing authors. This process ensures that ultimate ownership of the report lies with the business units.
The report this year is titled Sustainability Report 2008. This document has evolved constantly since first being published in 1998 and the 2008 title reflects our continuing move towards the embrace of a holistic view of the concept of sustainability.
Case studies
Each of the contributions from the fully-reporting business units includes a case study (or studies) highlighting a particular aspect of their year’s experience with respect to the environment, safety or community interaction. In addition, we have included a case study of one of the community partnerships Wesfarmers developed during 2007/2008.
Independent assurance
The report’s accuracy and completeness is critically important and every effort is made to ensure that all statements are properly authenticated.
After the discussions referred to above and a final draft agreed, the business unit representatives were required to compile detailed checklists linking report content to documented source material.
Representatives from our Corporate Solicitors Office and Group Risk Management department then conducted sample verification checks through site visits and desktop audits and prepared reports for senior management.
The internally-verified reports, signed off by the authors and senior management, were provided to assessors from Net Balance Management Group, which assessed the 2007 report as well. Net Balance carried out an independent assurance process using the AA1000 Assurance Standard, including a formal internal and external stakeholder interview process for two of the business units. The businesses and our Corporate Office were also required to nominate their main sustainability issues and these can be found on page 8. The Net Balance Management Assurance Statement is published on page 130. Net Balance also provides a detailed report to management on its assessment of the reporting process, and Wesfarmers will respond to that.
Final sign-off by divisional managing directors followed the external independent assurance process.
Audit committee
Board oversight of this report is delegated to the Audit Committee which gave approval before publication.
Format
The format aims to increase the transparency of the document by requiring businesses to report under standardised headings. Occasionally items may not fit entirely logically under these classifications, but we believe the layout enables readers to more easily make cross-business comparisons. Not all of the categories appear in all of the reports. This means either that the heading is simply not applicable to a specific operation or that a business is unable to supply the necessary data. Gaps are thus identified and the businesses concerned are encouraged to consider whether these can be closed. In particular this year the companies from the former Coles Group are reported in combination, simply reflecting their history as being parts of a large public company.
Completeness
We do not claim that this report provides 100 per cent coverage of our safety, environmental and community relations performance. Any gaps in our knowledge will be reduced as our systems improve. This document is a best endeavours attempt to report openly and honestly based on our current state of knowledge.
Glossary
Within each separate report we aim to eliminate as much jargon and technical terminology as possible and to spell out the names of organisations when they are first mentioned. A general glossary can be found on page 120.
Website
The full report is available on our website at www.wesfarmers.com.au. Additional hard copies can be obtained from the Public Affairs Department on (61 8) 9327 4366.
Feedback
Please help us improve the report by sending your comments either on the form attached to the inside back cover or through the website.
Stakeholder engagement
In last year’s report we assessed stakeholder attitudes for our Bunnings and Premier Coal businesses. This reporting year it was agreed with the external assurers that we should assess a further two businesses, in this instance our insurance and chemicals and fertilisers divisions. A summary of their report is set out below. This was part of a four year plan to cover all divisions in more detail, but with the acquisition of the Coles Group in late 2007 we will review this plan for the 2009 report.
In the case of insurance, the key stakeholders consulted generally considered the organisation’s sustainability performance to be either ’average’ or ‘good’, with an ‘average‘ rating received for sustainability being integrated into the business framework. There was mixed response to the adequacy of sustainability related communication from the insurance business which received ratings between ‘poor’ and ‘good’. The majority of stakeholders felt they had no influence over the organisation’s sustainability related activities. The key sustainability opportunity for this business unit is to develop products that manage risks arising from climate change. Most respondents were satisfied with the content and layout of the Sustainability Report and that it allowed them to make informed decisions.
In the case of chemicals and fertilisers, key stakeholders rated its sustainability performance as either being ‘good’ or ‘very good’, with the extent of sustainability being integrated into the business framework being ‘large’. Stakeholders are generally aware of the division’s business and are interested in its sustainability activities. A key sustainability opportunity is to become a global leader in delivering sustainable solutions to the agriculture and mining sectors. Continued employment of local students was also seen as a positive contribution. The report rated highly from a completeness, materiality and responsiveness perspective.
Detailed reports, including recommendations for improvement, have been provided to both the Insurance and Chemicals and Fertilisers Divisions by Net Balance Management Group.