Building climate resilience and long-term value at Wesfarmers Health
Since joining the Wesfarmers Group, Wesfarmers Health has made steady progress to commence its decarbonisation journey.
This journey started with Wesfarmers Health adopting the Wesfarmers Climate Policy. This policy sets minimum standards for divisions in the Group to follow in relation to governance, emissions aspirations, risk and opportunity analysis, and training for team members.
After consultation and engagement with its management team, Wesfarmers Health has begun implementing the Wesfarmers Climate Policy and endorsed its own Climate Policy (which mirrors the Wesfarmers Climate Policy) during the year. The intent of endorsing its own Climate Policy was to cascade the group minimum standards to its business units and to embed the consideration of climate impacts into corporate strategy and culture.
Wesfarmers Health will now table its progress against the minimum standards set out in the Wesfarmers Climate Policy to its Audit and Risk Committee and Board, and ultimately the Wesfarmers Board each year.
Wesfarmers Health participates and contributes to the quarterly Wesfarmers carbon and energy forums, along with the other Wesfarmers divisions. This allows Wesfarmers Health to work with divisional peers, sharing learnings to accelerate action and impact.
Reporting and target setting
With the Wesfarmers Climate Policy adopted, Wesfarmers Health has commenced work to understand its baseline emissions. In the 2023 financial year, Wesfarmers Health reported actual Scope 1 and Scope 2 greenhouse gas emissions for the first time, as part of the Wesfarmers Limited 2023 financial year Half Year Results Announcement. A robust and timely process now exists for the reporting of Scope 1 and Scope 2 emissions to the Wesfarmers Group and its management teams on a monthly basis. Wesfarmers Health has also commenced work to understand its Scope 3 emissions inventory to better evaluate its impact and influence on its value chain emissions as required under the Wesfarmers Climate Policy.
Wesfarmers Health intends to report its Scope 1, Scope 2 and Scope 3 greenhouse gas emissions at the Wesfarmers Limited 2023 financial year Full Year Results Announcement, acknowledging that understanding its baseline emissions is the first step in defining its greenhouse gas emissions aspirations. Wesfarmers Health also believes that publicly reporting on its Scope 1, Scope 2and Scope 3 greenhouse gas emissions demonstrates its commitment to transparency and to operate with greater carbon awareness.
Risk and opportunity analysis
Wesfarmers Health assesses the risks and opportunities associated with climate change across its business and operations as part of the annual risk review and corporate plan processes. During the year, Wesfarmers Health completed a desktop risk assessment that attempts to address the risks and opportunities in its operations and businesses as a result of the impacts of climate change.
Wesfarmers Health intends to participate and contribute to the next climate scenario assessment in conjunction with Wesfarmers Limited. The outcomes of this assessment will be disclosed at a consolidated level in the Wesfarmers Limited Annual Report using the voluntary framework, the Taskforce on Climate Related Financial Disclosures framework. This climate scenario assessment will assess the risks and opportunities of climate-related issues, in addition to outlining options to minimise the impacts and capitalise on opportunities.