This section provides an outline of what’s covered in our 2007 report and how we’ve gone about putting it together.

Timing

Coverage is for the financial year ended 30 June 2007. 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.

What we cover

All wholly-owned and operationally-managed businesses as at 30 June 2007 are included. The Insurance division reports less extensively than the other major contributing business units because of the nature of its operations. Recent acquisitions in the insurance sector, notably OAMPS and Crombie Lockwood, are included to the extent possible given data availability but coverage will increase as their integration proceeds. The Coregas industrial and medical gas operations, which were acquired in February 2007, are mentioned only briefly but we intend to significantly expand coverage of this Energy division business in the future. Energy Generation is covered in an abridged format given its relative materiality within the whole Group, as is the 40 per cent-owned Air Liquide WA, which we manage.

We report in a Case Study and in the Sustainability Scorecard section on progress in remediation of site contamination arising from the activities of our Sotico subsidiary. There is coverage also of work being done to address contamination linked to the operations of our former road transport business.

Brief reference is made to other businesses with which we are associated but are not involved in operational management – the Bengalla coal mine, Wespine plantation softwood sawmill and the Queensland Nitrates ammonium nitrate plant. We provide links to websites for readers wishing to find out more about these activities.

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 2007”. 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.

The basis for calculating our main safety performance indicator – the Lost Time Injury Frequency Rate (LTIFR) – is outlined in the Glossary.

LTIFR 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.

Greenhouse gas emissions

Greenhouse gas 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 gas emissions. Further information is available at www.greenhouse.gov.au.

We have used an implied emission factor for New Zealand of 0.23 t C02-e/MWh for electricity generation and consumption from the NZ Energy Greenhouse Gas Emissions 1990-2006 publication. Further information is available at www.med.govt.nz.

Report preparation

Data collection and report drafting is the responsibility of business unit environmental, safety 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.

We have changed the name of the report this year to Sustainability 07 from Social Responsibility Report, the title for the past three years. This document has evolved constantly since first being published in 1999 and the 2007 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 highlighting a particular aspect of their year’s experience with respect to the environment, safety or community interaction, as does this year the Energy Generation report. In addition this year we have included two extra case studies which report on the involvement of Wesfarmers Limited in remediation of a contaminated site and one of the new community partnerships into which the parent company entered in 2006/2007.

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 or employee sign-off.

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. Net Balance Management was engaged this year after last year’s external consultants, URS Australia, decided to discontinue providing this service. 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 viewed in the Sustainability Scorecard section under Sustainability Issues. The Net Balance Management Assurance Statement can be viewed in the Independent Assurance Statement. Net Balance also provides a detailed report to management on its assessment of the reporting process.

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.

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. Click here to view the Glossary.

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 4251.

Feedback

Please help us improve the report by sending your comments through the feedback form.

Stakeholder engagement

In 2006 we conducted a comprehensive stakeholder engagement process covering all eight fully reporting business units and the parent company. This year it was agreed with the assurance providers that we should assess stakeholder attitudes for two of the businesses - Bunnings and Premier Coal – as part of a four year plan to cover all business units in more detail.

Responses were obtained from 13 stakeholders (six external, seven internal) for Bunnings and 14 (nine and five) for Premier.

In the case of Bunnings, the key stakeholders consulted generally considered the organisation’s sustainability performance to be either “good” or “very good”. Both internal and external stakeholders were considered to hold a positive view of the business in terms of economic, environmental and social aspects of sustainability performance. Bunnings was also considered to perform better than other retailers with regard to sustainability. The key sustainability opportunities identified were to reduce water, waste and energy and to become a leader within the retail sector in terms of sustainability.

Premier Coal’s key stakeholders also generally considered the organisation’s sustainability performance to be either “good” or “very good”. Both the internal and external respondents to the process were found to hold a positive view of Premier across the key sustainability criteria - economic, environmental and social.

Five key sustainability opportunities and risks for Premier Coal were consistently identified by the surveyed stakeholders - working with the community, mine rehabilitation, energy consumption/reduction of greenhouse gas emissions, minimisation of environmental impacts and more efficient mining practices.

Detailed reports, including recommendations for improvement, have been provided to both Bunnings and Premier by Net Balance Management Group.

A new feature this year in each report is a reference to the outcomes of the 2006 stakeholder engagement process.