As a company, Wesfarmers has also changed considerably during that time.

Over the past decade our business operations have grown significantly, including the acquisition of the Coles Group completed last November.

Our revenue next year will exceed $50 billion. We now employ nearly 200,000 people and hundreds of thousands more Australians directly benefit from the business we transact.

The diversity and depth of our business operations - ranging from retail, insurance, industrial, energy to mining - means that, in many ways, we are a microcosm of the Australian community and the diverse sustainability challenges it faces.

It also means that as one of Australia’s largest companies, Wesfarmers has a huge responsibility in getting our sustainability efforts right - not only towards our shareholders and wider customer base, but to the communities and environment where we operate.

Our sustainability approach

For all the changes within and external to the company over the last decade, Wesfarmers' underlying approach to sustainability remains very similar to the principles which guided our first sustainability report.

We’re a company which prides itself on a unique, highly focused and disciplined business culture.

We believe success across every aspect of our operations should be gauged on the basis of practical, measurable processes that result in practical, measurable outcomes.

Some of the sustainability challenges are common across the company. But as you will read in this report, many more are unique to our individual divisions.

As a diversified company we know there is often no one-size-fits-all approach or solution to these challenges.

That’s why we encourage our managers and employees to bring their own diverse experiences and expertise to the table and to think innovatively about how to meet these challenges so they are connected to the most appropriate solution.

We may not always get it right and there are areas outlined in the report where we can improve.

But the disciplines and focus we have accumulated over the past 10 years through each report has ensured sustainability is embedded in all our operations and objectives.

And that means we’re committed to addressing shortfalls - and if we can’t within the timeframes we set ourselves in previous reports, we’ll detail why we need to do better and how we’ll do it.

Making a difference together

At the same time sustainability is not just about companies minimising the potential negative impacts of their operations.

It also means a commitment to increasing their positive footprint in the community and environment. After all, a sustainable business sector and economy ultimately depends on a healthy community and environment.

Within these pages, you’ll see how Wesfarmers and its divisions are committed to investing money, time and expertise in a wide range of partnerships and projects we believe are important to sustaining a strong community and environment.

Again, the scope and diversity of our operations is a significant advantage.

Because we are involved in so many areas of the economy and the community, we believe that together we are making a real difference across many areas of the community.

These range from supporting or directly investing in land care projects, low emissions and renewable energy technologies, improved opportunities for education and training in the broader community, medical research and the arts.

Initiatives undertaken during the past year which have had a positive impact include:

• Our Chemicals and Fertilisers division in developing its expanded ammonium nitrate production facilities, incorporated a state-of-the-art scrubbing system to significantly reduce levels of particulate emissions;
• Our Resources division reduced its total greenhouse emissions, energy used and water consumed in a year when it also achieved record coal production levels;
• Bunnings contributed over $12.5 million to the community during the year through direct donations, in-kind support and fundraising initiatives;
• A strong focus on managing hazards and post-injury management resulted in Target achieving major improvements in its workplace safety performance;
• In a year of major change, Coles and its customers invested approximately $8 million in community donations, grants and charitable fundraising, which included supporting Foodbank, the Cancer Council, Landcare, the Australian Red Cross, the Coles Indigenous Food Fund and the Education Foundation; and
• The Kmart Wishing Tree Appeal celebrated its 20th anniversary in Australia and collected over 334,000 gifts throughout Australia and New Zealand to distribute to those in need.

Climate change

No sustainability report is complete or credible without a significant focus on greenhouse emissions.

Over the past few years, the challenge of reducing carbon emissions has become the single biggest sustainability issue facing Australian business.

It remains the number one sustainability priority for the company.

We support the introduction of an emissions trading scheme for Australia and have actively contributed to the Federal Government’s consultation process to ensure the scheme strikes the right balance between sustainability and economic growth.

With the acquisition of the Coles group, we now account for about one per cent of Australia’s total greenhouse emissions.

So we have a significant interest and responsibility in making sure we get our involvement in the scheme right.

As this year’s report shows, we’re making inroads in reducing our emissions footprint through a range of practical measures, including a continuing push for greater energy efficiency across our operations.

Examples of our commitment include Wesfarmers Insurance resolving to become carbon neutral in 2009, and Bunnings – one of Australia’s largest retailers - committing to achieve this objective by 2015 or earlier.

But Wesfarmers can and will do more.

Over the course of the next year, we will set internal targets for each of our divisions to ensure that our company’s overall emissions footprint is reduced.

Each division will be asked to determine the best way to meet these targets, in line with the Wesfarmers view that our managers and employees have the authority, responsibility and accountability to make sure these benchmarks are achieved.

Going forward

Finally, I want to thank everyone within Wesfarmers for their efforts in achieving the sustainability outcomes detailed in this report.

The work and effort in maintaining a sustainable business as large and as diverse as Wesfarmers, in a way that supports a sustainable economy, community and environment, is never complete.

I’m confident that by applying the practices and disciplines that we have developed since our first report, Wesfarmers will continue to make a positive difference to the environment, community and economy that in turn sustains our performance as a business.

Richard Goyder
Managing Director