Sustainability Report 2018 - Downer Group

 
Sustainability Report 2018 - Downer Group
Sustainability
Report
2018
Sustainability Report 2018 - Downer Group
Contents
About this report              1

About Downer                   5

Sustainability snapshot       11

A word from our CEO           14

Materiality and stakeholder
inclusiveness                 15

People                        20

Zero Harm                     34

Health and Safety             38

Environment                   48

Communities                   62

Governance                    66

KPMG Assurance Statement      68

Sustainability Performance
Data and GRI                  71
Sustainability Report 2018 - Downer Group
About this
report

This Sustainability Report discloses our
sustainability-related performance for the
financial year ended 30 June 2018 for the
activities of businesses within the Downer
Group (Downer EDI Limited).

This report has been prepared in           These selected sustainability             Sustainability performance information
accordance with the GRI Standards: Core    indicators are:                           relating to Downer entities and joint
option, which emphasise the importance                                               ventures has been included in the
                                           §§ Lost Time Injury Frequency Rates
of identifying and reporting on issues                                               relevant sections of the report as
                                              and Total Recordable Injury
or concerns that are material to our                                                 specified by the table below. Joint
                                              Frequency Rates
business and our stakeholders.                                                       ventures have been included for
                                           §§ Total direct (Scope 1) and indirect    environmental energy and GHG
Downer has engaged KPMG to                    (Scope 2) GHG emissions                emission performance data where
provide limited assurance on Downer’s
                                           §§ Total energy consumption               Downer is deemed to have operational
application of the Global Reporting
                                              and production                         control as defined by the National
Initiative Standards (GRI Standards) for
                                           §§ Any significant environmental          Greenhouse Energy Reporting Act. The
Defining Report Quality and Content
                                              incidents or spills                    Health and Safety performance data
as well as on selected sustainability                                                includes incidents related to Downer
indicators in accordance with the          §§ The total number and value of safety
                                                                                     employees involved in unincorporated
GRI Standard.                                 and environmentally related fines or
                                                                                     joint ventures/partnerships but
                                              successful prosecutions.
                                                                                     excludes incorporated joint ventures.
                                                                                     People performance includes only
                                                                                     Downer employees involved within
                                                                                     unincorporated joint ventures.

                                                                                                             Sustainability Report 2018 1
Sustainability Report 2018 - Downer Group
Sustainability performance inclusions

                                  Environment                      Health & Safety        People

     Business line
                                  INPUT
                                  Downer
                                           NEW JVs
                                      Contractors
                                                  DATADowner
                                                         WITH      PRINtJVs ouTDowner
                                                             Contractors                           Contractors     JVs

     Infrastructure                                         1                   2                          3

     Rail                                                   1                   2                          3

     EC&M                                                   1                   2                          3

     Mining                                                 1                   2                          3

     Spotless                       4                4      1                                               

     New Zealand                                                                2                           

     Hawkins                                                                                                

Further information on joint ventures
is detailed in the 2018 Annual Report.
Changes to the reporting boundaries or
measurement methodologies applied
compared to our previous Sustainability
Report are addressed in the relevant
report sections.
For ease of reference a GRI Standards
Content Index is located on page 77 and
KPMG’s assurance statement is included
on page 68.

1 Where Downer has operational control as defined by
   National Greenhouse Energy Reporting Act.
2 Excludes incorporated joint ventures.
3 Data is included for all employees who are paid by a
   Downer entity.
4 Excluding Spotless NZ.

                                                                                                           Sustainability Report 2018 2
Sustainability Report 2018 - Downer Group
Our approach to                            Commitment to reporting and
                                           continual improvement
reporting                                  Downer is committed to reporting our
We have prepared this Report with          sustainability performance annually. To
reference to the Global Reporting          support our commitment, we continue
Initiative’s (GRI) Standards to provide    to improve our data and information
investors with comparable information      collection processes to ensure better
relating to environmental, social and      quality data and insights. We will
governance (ESG) performance.              continue to engage with our internal
Specifically, our approach takes into      and external stakeholders to ensure we
consideration the GRI’s principles for     understand our sustainability risks and
informing report content: materiality,     opportunities. We are working actively
completeness, and sustainability context   to continually improve our sustainability
and stakeholder inclusiveness.             performance and reporting and to
A key focus of this report is to           identify ways to address the gaps we
demonstrate how we deliver sustainable     have in our current reporting.
returns while managing risk and being
responsible in how we operate.

                                                                                       Sustainability Report 2018 3
Sustainability Report 2018 - Downer Group
What’s new?
Some of the new topics discussed in the Sustainability Report this year include:
§§ Alignment to the GRI Standards from G4
§§ Alignment of business to the UN Sustainable Development Goals
§§ Adoption of Task Force on Climate-related Financial Disclosures (TCFD)
   recommendations
§§ Inclusion of Spotless data (excluding health, safety and environmental data
   for New Zealand)
§§ Inclusion of ESG Sustainability Analyst Rating Scores.

    ESG Sustainability Ratings Performance
    Downer proactively participates in investor surveys and uses these insights to inform our understanding and improve
    our sustainability performance.

    Rating agency                                                                         Performance

                                                                                          Achieved Level 1 (the highest) for Governance –
                                                                                          Environment – Social

                                                                                          Highest Rating – ‘Leading’ in the Commercial &
                                                                                          Professional Services and Supplies sector

                                                                                          Leader in Top 25% of companies analysed globally
                                                                                          achieving a AA Rating

                                                                                          “Outperformer” Top 10% of the 90 companies
                                                                                          analysed

    DJSI (Dow Jones Sustainability Indices)                                               Consistent performance in industry category
    In collaboration with RobeccoSAM

    Downer’s performance for ESG ratings is based on information provided in the FY17 period.

                                                                                                                              Sustainability Report 2018 4
Sustainability Report 2018 - Downer Group
About
Downer

At Downer, our customers are at the heart
of everything we do.

Our Purpose
Is to create and sustain the modern
environment by building trusted
relationships with our customers.

Our Promise
Is to work closely with our customers to
help them succeed, using world leading
insights and solutions.
Downer designs, builds and sustains
assets, infrastructure and facilities and
we are the leading provider of integrated
services in Australia and New Zealand.
With a history dating back over 150
years, Downer is listed on the Australian
Securities Exchange and New Zealand
Stock Exchange as Downer EDI Limited
(DOW). We are an ASX 100 company that
also owns 88 per cent of Spotless Group
Holdings Limited.
Downer employs approximately 56,000
people across more than 300 sites,
primarily in Australia and New Zealand,
but also in the Asia-Pacific region, South
America and Southern Africa.

                                             Sustainability Report 2018 5
Sustainability Report 2018 - Downer Group
Our Pillars
  Safety                           Delivery                     Relationship                         Thought leadership

  Zero Harm is embedded            We build trust by            We collaborate to build              We remain at the forefront
  in Downer’s culture and          delivering on our promises   and sustain enduring                 of our industry by
  is fundamental to the            with excellence while        relationships based on               employing the best people
  company’s future success         focusing on safety, value    trust and integrity                  and having the courage to
                                   for money and efficiency                                          challenge the status quo

Our services
FY18 total
revenue by
service line %
                                                                          Transport 22.3%                   Spotless       24.6%
                                                                                  $2,817.0m                            $3,101.8m
                                                                          Rail             9.3%             EC&M           19.0%
                                                                                      $1,169.2m                        $2,404.1m
                                                                          Utilities        14.1%            Mining         10.8%
                                                                                      $1,783.0m                        $1,358.4m

Total
$12,620.2m

Our supply chains
Downer has over 30,000 suppliers                                            Facilities             9%        Professional
in Australia and New Zealand,                                                                                Services              7%
including Spotless. The chart                                               Food &                           Equipment             3%
shows the percentage                                                        Beverage               3%
of spend by supplier                                                        Heavy Mobile                     Fleet & Fuels         3%
category across the                                                         Equipment              3%
Downer Group.                                                               Information                      Other                 2%
                                                                            Communication
                                                                            Technology             3%
                                                                            Rail                   2%        Logistics             2%
                                                                            Travel                 1%        Laundry               1%
                                                                            Tyres                  1%        Sub-contractors 36%
                                                                            Consumables            13%       Raw Materials         11%

                                                                                                                     Sustainability Report 2018 6
Sustainability Report 2018 - Downer Group
What we do
Downer designs, builds and sustains assets, infrastructure and facilities and is the leading provider of integrated
services in Australia and New Zealand.

                                                                         HOSPITAL

                                                                                                HOTEL

                                                    GAS CO                  LAUNDRY                CLEANO

                                                                                       SCHOOL

    Transport                  Rail                     Utilities               Spotless                              EC&M                    Mining

    Reporting division             Key capabilities                                                     Examples/track record

    Transport                       §§ Transport infrastructure                                             §§ Maintain more than 33,000 kilometres of road
                                                                                                               in Australia and more than 25,000 kilometres
                                    §§ Rail systems                                                            in New Zealand
                                    §§ Multi-modal operations, including light rail,                        §§ Customers include all of Australia’s State
                                       bus, ferry                                                              road authorities, the New Zealand Transport
                                    §§ Light rail construction and maintenance                                 Agency and the majority of local government
                                                                                                               councils and authorities in both countries
                                    §§ Station upgrades
                                                                                                            §§ Through Keolis Downer JV, Australia’s largest
                                    §§ Road construction and maintenance                                       provider of multi-modal transport solutions
                                                                                                               including Yarra Trams in Melbourne, G:link on
                                    §§ Bitumen manufacturer and supplier                                       the Gold Coast and Newcastle’s buses, ferries
                                                                                                               and a new light rail from 2019.
                                    §§ Airport lighting and pavements

                                    §§ Port facilities upgrades and services

    Rail                            §§ Design and manufacture of new passenger                              §§ Maintain Sydney’s Waratah trains fleet
                                       rolling stock                                                           (78 eight-car trains)

                                    §§ Through Life Support and                                             §§ Delivering another 24 Waratah trains by
                                       front-line maintenance                                                  early 2019

                                    §§ Fleet control – 24-hour one-stop-shop                                §§ Maintain Sydney Millennium trains
                                       providing technical support, fleet planning
                                       and asset management services                                        §§ Building Melbourne’s fleet of 65 new High
                                                                                                               Capacity Metro Trains
                                    §§ Overhaul of rolling stock components,
                                       including: new build and rotable parts,                              §§ Rail sites in NSW, QLD, VIC and WA
                                       refurbishment of existing rolling stock
                                       and bogie wheel set overhaul

                                    §§ Operations

                                                                                                                                              Sustainability Report 2018 7
Sustainability Report 2018 - Downer Group
Reporting division   Key capabilities                                   Examples/track record

Utilities            §§ Planning, designing, constructing, operating,   §§ Maintain over 62,000 kilometres of electricity
                        maintaining, managing and decommissioning          and gas networks
                        power and gas network assets
                                                                        §§ Erected over 1,000 steel lattice
                     §§ Complete water lifecycle solutions for             transmission towers
                        municipal and industrial water users
                                                                        §§ Connect 35,000 new power and gas
                     §§ Renewable energy, including wind and solar         customers each year
                        construction, operations and maintenance
                                                                        §§ Sunshine Coast, Clare, Ross River and Beryl
                     §§ Fibre and copper networks                          solar farms

                     §§ Mobile and radio networks                       §§ Ararat and Murra Warra wind farms

                     §§ Internet of Things solutions                    §§ Major supplier to both nbn in Australia and
                                                                           Chorus in New Zealand, providing high
                     §§ Big data automated analytics                       speed broadband
                        and visualisation

Spotless             §§ Asset maintenance and management                §§ Largest integrated facilities management
                                                                           services provider in Australia and
                     §§ Utility support services                           New Zealand
                     §§ Catering and hospitality                        §§ Deliver more than 100 integrated
                     §§ Facility management                                facilities services

                     §§ Air-conditioning, mechanical and                §§ Proven long-term partner, with around 15
                        electrical services                                Public Private Partnership projects across
                                                                           the healthcare, education, defence and
                     §§ Laundry management                                 leisure sectors

                     §§ Security and alarm services

                     §§ Cleaning

Engineering,         §§ Engineering                                     §§ Deliver services for complex oil and
Construction and                                                           gas, mining and industrial and critical
                     §§ Construction                                       infrastructure facilities such as data centres,
Maintenance
                     §§ Operations and maintenance                         airports, public transport systems
                                                                           and hospitals
                     §§ Defence services
                                                                        §§ Recognised worldwide leader in mineral
                                                                           and coal separation and processing

                                                                        §§ Key FY18 contracts: EPC services at the
                                                                           Carrapateena copper gold mine; equipment,
                                                                           engineering and design services at Egyptian
                                                                           Black Sands; construction services for the
                                                                           upgrade of Orbost gas plant; long-term
                                                                           maintenance at Origin’s Eraring power
                                                                           station; managing contractor for Shoalwater
                                                                           Bay training area remediation project; and
                                                                           Major Service Provider to Defence’s CASG

Mining               §§ Open cut and underground mining                 §§ Serve customers across more than 50 sites in
                                                                           Australia, Papua New Guinea, South America
                     §§ Resource definition, exploration drilling and      and Southern Africa
                        mine feasibility studies
                                                                        §§ Key FY18 contracts: Blackwater coal mine
                     §§ Drilling, explosive supply, blasting               in Central Queensland; Waanyi Downer
                        and crushing                                       JV for New Century Resources Limited;
                     §§ Mine rehabilitation and closure                    underground mining services contract at the
                                                                           Carrapateena copper gold project; mining
                     §§ Asset and tyre management                          services at the Gruyere Gold Project

                                                                                                              Sustainability Report 2018 8
Our approach to                               and the opportunity to provide a more           §§ Leverage opportunities that will
                                              diverse range of services.                         emerge from greater urbanisation
sustainability                                                                                   in major cities
At Downer, sustainability means               Sustainability is intrinsically linked to
                                              Downer’s business strategy because the          §§ Orient Downer’s portfolio
delivering financial growth and value to                                                         to growth markets
our customers through our supply chain,       sustainability of Downer’s activities is
                                              fundamental to the Company’s                    §§ Embed operational technology into
looking after the health and safety of our
                                              future success.                                    core service offerings.
people, having a diverse and inclusive
workforce, being environmentally                                                              Downer’s sustainability strategy is
                                              Downer’s business strategy focuses on
sustainable and enhancing the liveability                                                     shaped by our four Pillars and our
                                              Zero Harm, driving improvement in the
of the communities in which we operate.                                                       commitments to sustainability are
                                              existing business, investing in growth,
                                                                                              outlined in our policies.
Downer recognises that sustainability         and creating new positions. Downer’s
is vital for securing long-term               strategic objectives, prospects, and the
environmental, economic and social            risks that could adversely affect the
viability and understands our role in         achievement of these objectives are
contributing to a sustainable future for      set out in the 2018 Annual Report. The
communities to prosper.                       strategic objectives are to:

Downer is the largest and most diverse        §§ Maintain focus on Zero Harm
services contractor in the Asia-Pacific       §§ Improve value and service for
region with over $12 billion in annual           customers and their customers
revenue. This scale and breadth gives         §§ Improve asset management and data
Downer greater resilience to withstand           analytics utilisation across the Group
economic headwinds when they arise,           §§ Position for greater
                                                 government outsourcing

                                   Health and Safety                   Managing health and safety risk; promoting employee wellbeing

          Safety

                                   Business resilience                 Financial returns; operational efficiency and productivity;
                                                                       sustainable strategic growth; innovation
                                   Governance                          Risk management; legislative and regulatory compliance;
                                                                       continuous improvement
         Delivery                  Environment                         Impact mitigation; carbon emissions; resource efficiency

                                   Customer relationships              Safety; value for money; cost efficiencies; productivity gains;
                                                                       innovative solutions
                                   Supplier relationships              Enduring, cooperative partnerships; sustainable benefits;
                                                                       transparent tendering arrangements; supply chain impacts

                                   Communities                         Employment and training opportunities; local purchasing;
     Relationships
                                                                       community investment; environmental impacts

                                   People and organisational           Diversity and inclusiveness; attraction and retention of skilled
                                   capabilities                        employees; employee development; involvement; innovation;
                                                                       knowledge management; leadership
        Thought
       Leadership

                                                                                                                             Sustainability Report 2018 9
Our approach to
sustainability (cont.)
As an integrated services company,
Downer’s contribution to sustainability
is also achieved by providing our
customers with industry leading
solutions that drive and provide
efficiency, reducing the impact of
customers’ operations on
the environment.
Downer works closely with the local
communities in which it operates
to achieve better social outcomes,
implementing a range of initiatives
focusing on social responsibility, local
and Indigenous employment, cultural
heritage management and
stakeholder engagement.
Downer’s success is a direct result of the
experience, capability and engagement
of our people. Downer embraces diversity
and inclusiveness in the workplace.
Downer relies on and encourages our
people to contribute a diverse range of
skills and experiences to deliver the best
outcomes for our customers. Downer
continues to strengthen our focus
on recruiting strategically to increase
workforce participation across a range
of demographics.

                                             Sustainability Report 2018 10
Sustainability
snapshot

Highlights

                                                              0 0
Financial                         People                       Health & Safety              Environment

$296.5m                              35%
Underlying NPATA (Net Profit      Percentage of women
After Tax before Amortisation     in Downer workforce
of acquired intangible assets)    (including Spotless)         Fatalities                  Significant environmental
                                                                                             incidents (≥ Level 4)

Financial

    Metric                                          Market guidance              FY18             FY17

    Underlying NPATA                                $295.0m                      $296.5m          $186.6m
    (Net Profit After Tax before Amortisation of
    acquired intangible assets)

    Underlying NPAT (Net Profit After Tax)          $251.0m                      $249.7m          $181.5m

    Underlying EBITA                                n/a                          $479.6m          $285.2m
    (Earnings Before Income and Tax before
    Amortisation of acquired intangible assets)

    Underlying EBIT                                 n/a                          $412.9m          $277.8m
    (Earnings Before Income and Tax)

    Total Revenue                                   n/a                          $12.6b           $7.8b

    Work in hand                                    n/a                          $42.1b           $22.5b

                                                                                                            Sustainability Report 2018 11
People
As at 30 June 2018, the gender diversity metrics for Downer Group were:

      Metric                                               Target5                           FY18 (incl                        FY17 (excl                        Result
                                                                                             Spotless)                         Spotless)

      Women in executive roles                             No Target                         20%                               10.8%                             n/a

      Women in management roles                            12% by 2020                       17%                               11%                               

      Women employed                                       20% by 2020                       35%                               11%                               

Safety

      Metric                                               Target                            FY18                              FY17                              Result

      LTIFR6
Environment

     Metric                                                                     Target     FY18       FY17        Result

     Significant environmental incidents (≥ Level 4)                            0          0          0           

     Prosecutions                                                               0          0          0           

     Infringement Notices (Fines)
A word from
our CEO

Downer is the leading provider of
integrated services in Australia and
New Zealand. We have a diverse portfolio
of businesses which allow us to drive
growth while continuing to deliver on
our Promise to work closely with our
customers to help them succeed.
Downer is founded on the deeply held           then separated, cleaned and sorted into       I would like to take this opportunity
value of Zero Harm as it relates to the        valuable products and materials that can      to thank our employees, communities,
safety of our people, the environment,         be reused or sold.                            business partners and suppliers for your
and the communities in which we                                                              continued support.
                                               Downer has also partnered with Victoria’s
operate. Our approach to sustainability is
                                               Hume City Council, as well as resource
critical to the long-term value we create
                                               recovery and recycling companies
for all our stakeholders and, as we noted
                                               Close the Loop and RED Group, in an
last year, customers are increasingly
                                               Australian-first trial for the construction
looking to us to lead with best practice
                                               of a road made with plastic bags,
sustainability solutions.
                                               glass and used toner cartridges. Initial      Grant Fenn
We strive to set new benchmarks in             testing shows that this sustainable,          Managing Director and
sustainability and innovation and I            cost competitive road has a 65 per cent       Chief Executive Officer
believe we are making strong headway.          improvement in fatigue life.
In June 2018 we opened the Detritus
                                               We recognise our success is a direct
Processing Facility, a new state of the art
                                               result of the quality and dedication of our
recycling plant in Rosehill in New South
                                               people. We look to our people to bring
Wales. Unlike many other recycling
                                               different and unique views to the table
facilities, it can recycle several different
                                               and therefore we continue to strengthen
types of materials and Downer has found
                                               our focus on recruiting strategically to
use for those materials. In total, more
                                               increase workforce participation across
than 21,000 tonnes of waste annually
                                               a range of diverse demographics.
can now be diverted from landfill and

                                                                                                                       Sustainability Report 2018 14
Materiality and
stakeholder
inclusiveness

The material issues addressed in this
report directly reflect priorities identified
for Downer and our stakeholders, in line
with GRI Standards requirements.
In 2017, KPMG facilitated a materiality    In 2015, the United Nations agreed on 17
assessment via a series of workshops       Sustainable Development Goals (SDGs)
across the business to identify            as part of a 2030 Agenda for Sustainable
issues material to Downer. This year       Development to: end poverty, promote
a consultative review process was          prosperity and wellbeing for all, and
undertaken to confirm and identify any     protect the planet. Downer is a supporter
new material priority issues through       of the SDGs and we recognise that we
reviews of risk registers, industry ESG    are well placed within the sectors we
ratings, media analysis and peer reviews   service to contribute to the SDGs. In this
and engagement with key stakeholders.      year’s report we have aligned our material
This ensures our reporting reflects        issues to the SDGs and demonstrated
significant economic, environmental and    Downer’s contribution to deliver on
social issues that may influence           the SDGs.
the assessments and decisions
of stakeholders.

                                                                                        Sustainability Report 2018 15
Material issues
 Material      Interest                                 Issue         Sustainable development goals
 issue                                                  relevance to
                                                        broader value
                                                        chain
 Business
 Resilience     §§ Financial returns                    Suppliers

                §§ Operational efficiency and           Sub-contractors
                   productivity
                                                        Customers
                §§ Sustainable strategic growth
                                                        JVs and alliances
                §§ Enduring, collaborative
                   partnerships                         Community

                §§ JV and overseas risks                Investors

                §§ Innovation

                See further details in the 2018
                Annual Report.

 People
                §§ Talent attraction and retention of   Sub-contractors
                   skilled employees
                                                        JVs and alliances
                §§ Diversity and inclusiveness
                                                        Community
                §§ Employee development
                   and capability

                §§ Leadership and knowledge
                   management

 Health and
 Safety         §§ Managing health and safety risks     Suppliers
                   with a focus on critical risks
                                                        Sub-contractors
                §§ Maintaining a high standard
                   Zero Harm culture through            Customers
                   accountability
                                                        JVs and alliances
                §§ Employee health and wellbeing
                                                        Regulators

                                                        Community

 Environment
                §§ Legislative and regulatory           Suppliers
                   compliance and
                   impact minimisation                  Sub-contractors

                §§ GHG emission reduction               Customers

                §§ Climate change related risks         JVs and alliances

                §§ Responding to emerging issues        Regulators
                   and industry trends
                                                        Community

                                                                                            Sustainability Report 2018 16
Material issues (cont.)
  Material          Interest                                   Issue         Sustainable development goals
  issue                                                        relevance to
                                                               broader value
                                                               chain
  Community
                       §§ Employment and training              Suppliers
                          opportunities
                                                               Sub-contractors
                       §§ Local purchasing
                                                               Customers
                       §§ Community investment
                                                               JVs and alliances
                       §§ Socio economic benefits
                                                               Community

  Governance
                       §§ Legislative and regulatory           Suppliers
                          compliance
                                                               Sub-contractors
                       §§ Risk management
                                                               Customers
                       §§ Standards of business conduct
                                                               JVs and alliances
                       §§ Continuous improvement
                                                               Investors

                                                               Regulators

Downer recognises that our business operations have a direct impact on a wide range of stakeholders. To ensure we are capturing
the most relevant material issues in this report, we continually review issues raised by our stakeholders. These reviews inform the
issues raised above.

                                                                                                                    Sustainability Report 2018 17
How we engage with our stakeholders

  Stakeholder                    How we engage
  Directly affected

  Customers                      Meetings, surveys, joint sustainability initiatives, social media channels

  Communities                    Project-specific community engagement plans, local media, social media channels,
                                 employment opportunities, local supply arrangements, community investment projects

  Business partners              Joint venture boards and operating committees, meetings, workshops

  Shareholders and investment    Annual General Meeting, Annual Report, Sustainability Report, ASX releases,
  community                      half-year and full-year results presentations and webcasts, Investor Day (annually),
                                 social media channels (ongoing)

  Suppliers                      Inductions and training, meetings, contractor Zero Harm Days, tender and
                                 contract documents

  Actively interested

  Government and regulators      Reporting, meetings

  Industry associations          Representation on boards and committees, meetings

  Media                          Media releases, briefings and interviews, website, social media channels

  Non-government organisations   Participation in forums, meetings

  Trade unions                   Meetings

                                                                                                              Sustainability Report 2018 18
Material priorities
People
Downer recognises that to create a high-
performance culture our employees need
to be inspired, engaged and empowered.
We believe that embracing difference
fuels innovation and enables more
informed decision making, which is
why we are committed to diversity and
inclusiveness in our workplace. Downer
works to foster an environment that
facilitates opportunity and respect for
all employees. We are committed to
developing a workforce comprising
engaged employees from a wide pool
of talent.
Recruiting and retaining the right
people is fundamental to being able to
deliver the best service options to our
customers and providing a workplace
that motivates people to excel. We aim to
not only recruit and retain the best talent
but also to develop the capability of our
people with an emphasis on leadership
and the sharing of knowledge.

Zero Harm
Zero Harm means working in an
environment that supports the health          solutions for our customers is a            Governance
and safety of our people, allows us to        priority. While focusing our attention      Downer is committed to ensuring that
deliver our business activities in an         on managing our risks associated with       the company maintains an effective
environmentally sustainable manner,           environmental management, we also           system of corporate governance which
and advances the communities in which         take advantage of the commercial            is an integral part of our culture and
we operate.                                   opportunities this presents for             business practices.
                                              our business.
Our Zero Harm culture is built on leading                                                 Downer is committed to the highest
and inspiring, managing risk, rethinking      Communities                                 level of governance and is committed
processes, applying lessons learnt, and                                                   to building a culture that rewards high
                                              Downer is committed to supporting the
adopting and adapting practices that aim                                                  ethical standards and personal integrity.
                                              success of the communities in which we
to achieve zero work-related injuries and
                                              operate, by fostering and maintaining
minimise environmental harm.                                                              Our corporate governance framework
                                              enduring relationships built upon trust.
                                                                                          provides the platform from which:
Health and safety                             Downer recognises the significant and
The health and safety of our people and                                                   §§ The Downer Board is accountable
                                              lasting socio-economic benefits our
the communities in which we work is our                                                      to shareholders for the operations,
                                              presence in the community can bring.
first priority. Our approach to safety is                                                    performance and growth of
                                              For this reason, we seek to engage with
a market differentiator as it enables us                                                     the company
                                              local suppliers and contractors, and
to work in industry sectors that may be       actively participate in regional business   §§ Management is accountable
inherently hazardous.                         groups and chambers of commerce.               to the Board
                                                                                          §§ The risks of Downer’s business are
Environment                                   We implement a range of strategies             identified and managed
We conduct our business in a way that         focusing on social responsibility, local
                                              and Indigenous employment, cultural         §§ Downer communicates with its
is sustainable, taking into account a                                                        shareholders and the broader
range of factors, including climate related   heritage management and stakeholder
                                              engagement.                                    investment community.
risks and opportunities. Developing and
delivering environmentally sustainable

                                                                                                                   Sustainability Report 2018 19
People

Our approach
Our continued growth is linked to employees that keep the
customer at the heart of everything we do. Our high performing
culture is a result of teamwork and an enduring focus on safety.
We are committed to attracting people that can bring their
best each day, while providing our workforce with development
opportunities that support their career goals.

Our performance                              Workforce breakdown by region
In FY18 we employed around 56,000
people. Approximately 65 per cent of
our employees based in Australia and
New Zealand are covered by collective                                        Australia                      73.2%
agreements and industry-based                                                New Zealand and Pacific        25.7%
awards. We have a wide variety of
employment arrangements across the                                           Southern Africa                 0.8%
Group, including individual contracts of                                     South America                   0.2%
employment and collective agreements.
                                                                             Other                            0.1%
This reflects the diverse sectors in which
we operate.

                                                                                               Sustainability Report 2018 20
Talent attraction and                       Talent retention                              We also ensure succession planning is in
                                                                                          place to enable talent development and
retention of skilled                        As part of ongoing development and
                                                                                          enhance delivery performance for
                                            retention strategies we annually assess
employees                                   performance and potential. This process       our customers.
Talent attraction                           allows us to create structured career         We ensure a robust remuneration
Downer understands the importance of        development pathways and enables              and reward strategy that entices and
identifying, recruiting and developing      our people to seek development                attracts new talent and provides strong
outstanding people.                         opportunities that support their career       recognition of performance for existing
                                            goals. This process is described below.       talent to remain with Downer. Key
Our diversified business operations allow                                                 factors which are incorporated into
us to provide rich career development       Development pathways guide career
                                            goals as our employees progress in their      our remuneration and rewards
opportunities so employees can                                                            system include:
experience career growth.                   career. Key pathways include mentoring
                                            and coaching, structured formal learning      §§ Benchmarking positions utilising
Our focus on development opportunities      opportunities, on-the-job learning and           third party market data to provide
is linked to retaining and developing our   secondments across the business.                 a comparative analysis of our
skilled workforce. Downer recognises                                                         remuneration offering against industry
that embracing difference fuels             While external talent recruitment is
innovation and enables more informed        important, we continuously seek to            §§ Utilising the outcomes of this
decision making. This approach to           develop talent from within the business.         benchmarking exercise to develop
diversity and inclusion reflects the        We do this by building and investing in          remuneration packages which attract
customers and communities we serve          people by supporting various and diverse         and retain industry leading talent
while building a sustainable business.      career paths that:                            §§ Offering reward opportunities during
                                            §§ Improve our line of sight on                  employment that provide financial
This year Downer placed 12th in the                                                          and/or team based recognition for
LinkedIn Top Companies to work at              development needs and increase
                                               the bench strength of the leadership          employees who exhibit desired
survey. This achievement is a recognition                                                    behaviours and/or deliver
of our success and commitment to               pipeline against internal talent
                                                                                             project outcomes
attracting and retaining the best people.   §§ Identify talent gaps that can be filled
                                               utilising internal capability and skills   §§ Offering short-term and long-term
Of Downer’s total workforce at our                                                           incentives where appropriate, with a
                                            §§ Identify opportunities for targeted           focus on key roles.
primary locations, Australia and New
                                               development activities
Zealand, 63 per cent of new hires were                                                    The turnover of employees at Downer’s
men and 37 per cent women.                  §§ Ensure we have the best talent             primary locations was less for women
                                               engaged within and across                  than men, with 17 per cent versus 24 per
                                               the business.                              cent turnover respectively over
                                                                                          the period.

   Talent retention
   process                                  Identify, assess and
                                            rank our talent –
                                                                                                                 Thoroughly
                                                                                                                 understand
                                            performance                                                          strengths, needs,
                                            and potential                                                        mobility,
                                                                                                                 transferable
                                                                     1. Talent              2. Talent            strengths
                                                                   assessment               profiling

                                                                   4. Succession            3. Career
                                                                      planning            development
                                            Validate, test and                                                   Validate and
                                            review management                                                    champion career
                                            bench strength                                                       development maps

                                                                                                                  Sustainability Report 2018 21
Talent attraction and                     §§ Lifestyle benefits: discounted vehicle
                                             rentals, discounted technology
retention of skilled                         products, shopping offers.
employees (cont.)                         Spotless employees are entitled to paid
Employee benefits                         sick leave and annual leave, however
All full time and part time employees     casual employees do not receive these
at Downer’s major Australian and New      entitlements as they are remunerated at
Zealand sites receive the same            a higher rate of pay instead.
benefits including:                       In addition, Australian and New Zealand
§§ Professional development: study        employees receive a standard of four
   assistance, training, mentoring        weeks’ notice for the cessation of
   and secondments                        employment. Those covered by an
                                          Enterprise Bargaining Agreement are
§§ Financial and other benefits: salary   governed by the various consultation
   sacrifice superannuation, novated      provisions of their agreement regarding
   leasing, leave entitlements, banking   a major change.
   discounts and offers
§§ Health and wellbeing: flexible work
   arrangements, discounted health
   insurance and gym memberships,
   health check-ups

                                                                                      Sustainability Report 2018 22
Engagement survey                          This year Downer achieved an                 Feedback suggests Downer can improve
                                           engagement score of 69 per cent, and a       our employee experience by supporting
Downer recognises the importance of        progress score of 61 per cent. Consistent    better cross-unit cooperation and
creating an organisational culture that    with previous results, Downer performed      supporting innovation. To address this
builds engagement and empowers our         well on questions about teamwork, safety     valuable feedback, divisional leaders will
workforce. This delivers high-performing   and role clarity. The following represents   work with their teams to identify and
individuals who are committed to the       these key metrics and demonstrates our       implement action plans.
company and has a direct impact on         commitment to our people, their safety
how safely they work, the quality of the   and continued success.
leadership and supervision they provide,
and the development of new initiatives     §§ 89 per cent of employees agree that
and innovations.                              they have good working relationships
                                              with their co-workers.
Downer’s annual Employee Engagement
Survey has been administered for four      §§ 87 per cent of employees agree that
years and this year Spotless employees        they are aware of their work health
also participated. This survey allows         and safety responsibilities.
us to understand what we do well           §§ 86 per cent of employees agree
as a company and where we can                 that they understand how their job
improve. It also serves as a channel for      contributes to the overall success
honest feedback and a direct line of          of the organisation.
communication to the CEO, Executive
Leadership Team, Downer Board and
all employees.

                                                                                                                 Sustainability Report 2018 23
Employee development                          We have also continued to build the       §§ Development of Environment &
                                              Industrial Relations capability of our       Sustainability E-Learns on Waste
and capability                                operational managers through structured      Management (including Hazardous
Leadership development                        training programs. This important lift       Waste), Water (stormwater, effluent
Leadership capability remains a key           in capability positions managers and         management) and Planning
priority and supports our people              human resources professionals to             & Approvals.
delivering success for Downer. Our            better support and engage employees,      Downer’s strategic capability is
programs are underpinned by the LEaD          minimise our exposure to industrial       underpinned by customised frameworks
(Leadership Excellence at Downer)             disruption, lost time and revenue, and    and programs that support current and
Capability Framework and focus on             better service our customers.             future capability and our performance
leaders at all levels of the business.        We have an annual performance and         requirements. Our programs align to
                                              development review process. As part of    Downer’s Pillars of Safety, Delivery,
Downer’s Executive Development                                                          Relationships and Thought Leadership,
Framework focuses on the growth of            this our employees plan development
                                              goals and activities. Based on this, we   and promote behaviours that deliver
senior leaders within our business. The                                                 Downer’s Purpose and Promise.
program provides support to leaders to        identify the formal development needs
build capabilities to deliver our current     that include safety, leadership and       Strategic learning and development
and future business goals. Senior leaders     project management and other capability   goals include:
are engaged through annual leadership         to increased business performance.
                                                                                        §§ To increase leadership capability
events, where the alumni come together        The table below represents Downer’s          and build skills to enhance
to challenge current and emerging             progress completion rate for those           business relationships
business requirements and to maintain         employees that have been identified for
their formal executive network across                                                   §§ To develop our Zero Harm culture
                                              each capability program.
the business.                                                                              through increased leadership
                                              Environmental awareness                      capability and employee knowledge
Leadership development remains a              training includes:                           and commitment
key priority for Downer. We recognise
                                                                                        §§ To embed project management
that our middle leaders are the vital         §§ 128 employees and a total of 1,024
                                                                                           excellence and build capability of
link between frontline people and our            hours in Accredited Advanced
                                                                                           project management against identified
executive leadership teams. Our LEaD2,           Environmental Awareness training,
                                                                                           key drivers of business performance
Leadership Delivering Success program            targeted at Project Managers,
has been developed to meet the needs             Construction Managers, Supervisors     §§ To increase skills to strengthen
of our middle leaders and support them           and Zero Harm Advisors                    business and commercial acumen.
to effectively and competently balance                                                  Constantly striving towards achieving
their leadership, management and                                                        these goals ensures our leaders have the
operational responsibilities to elevate our                                             skills, knowledge and attitude to deliver
leadership and operational results.                                                     our organisational goals.

    Capability program                                                 % complete of all identified employees

    Executive development                                              73%

    Middle leader                                                      87%

    Frontline leader                                                   85%

    Emerging leader                                                    88%

    Safety leadership                                                  82%

    Critical risk                                                      100%

    Project management                                                 87%

    Security awareness                                                 73%

                                                                                                                Sustainability Report 2018 24
Employee development
and capability (cont.)
Capability development –
SAFETY
Downer’s key initiative and the
foundation of our Zero Harm
commitment is ‘Our Safety Focus’.
Each year employees and contractors
undertake the safety training program,
which is now in its fifth year. Of
participating divisions, we achieved a
95 per cent completion rate across all
employees. It reinforces the importance
of safety leadership and focus for our key
critical risk activities.
This alignment has provided a platform
to drive greater focus for the safety of
our people and personal accountability
to make our workplaces focus on key
safety behaviours and actions that are
relevant to their work environment. Zero
Harm and safety leadership continues
to be a key strategic theme across the
entire leadership suite of
development initiatives.

Capability development –                      Capability development –                     Capability development –
DELIVERY                                      RELATIONSHIPS                                THOUGHT LEADERSHIP
                                              Our teams build relationships that           This pillar places Downer at the forefront
The ‘Fundamentals for Successful
                                              create success and we recognise that         of industry by attracting and developing
Downer Projects’ training program
                                              we need people at every transaction          the best people and empowering them
began in 2014 and continues to equip
                                              point to ensure consistent delivery.         to have the courage to challenge the
project managers with the capability
                                              Successful relationships are not just        status quo.
they need to implement Downer’s robust
                                              customer facing. We believe our internal
project management methodologies for                                                       A critical component of this is diversity
                                              relationships are equally as important.
successful project delivery.                                                               and inclusion. We continue to invest
                                              Downer’s capability enables us to unlock     in and attract a diverse workforce to
Advanced project management skills
                                              value through leveraging the company’s       produce thought leaders. One such
and knowledge are further developed
                                              leading market position and strong core      initiative is through our Emerging
through our suite of specialist modules
                                              business. This is achieved by delivering     LEaDer’s program. This structured
and workshops, with an emphasis on the
                                              on our commitments to customers,             development program provides our
further application of critical elements
                                              ensuring our service offering aligns to      high potential future leaders with a
of project management methodologies
                                              our customer needs, identifying and          comprehensive development pathway
required for larger scale project delivery.
                                              realising cross divisional opportunities,    across the business fostering long-
Downer’s capability frameworks have           and adapting our operating model to          term career growth and success. This
been developed to provide a common            maintain healthy margins.                    provides Downer with a rich and diverse
and consistent description of behaviours,                                                  pipeline of future leaders and focuses on
                                              The LEaD (Leadership Excellence at
skills, knowledge and abilities required                                                   business-critical leadership skills, while
                                              Downer) suite of capability development
for delivery success in any role across                                                    developing core financial, commercial
                                              programs directly upskill leaders to build
the organisation. These frameworks                                                         and business acumen for these
                                              and sustain relationships that
support the development of a highly                                                        rising stars.
                                              create success.
skilled, capable and engaged workforce
                                                                                           Our Thought Leadership approach
for continued success.
                                                                                           extends to all levels of the business
                                                                                           through our other leadership capability
                                                                                           development programs including Jawun,
                                                                                           mentoring and executive coaching.

                                                                                                                    Sustainability Report 2018 25
Diversity and                                Gender diversity                               FY19 will work to enable employees to
                                                                                            progress their careers at Downer while
inclusiveness                                Downer continues to demonstrate
                                                                                            managing their personal and
                                             our commitment to attracting female
Downer is committed to a workforce           participation in our workforce through         professional commitments.
that reflects and is informed by the         practical initiatives that attract, support
customers and communities we serve                                                          As at 30 June 2018, the gender diversity
                                             and retain all employees.                      metrics for Downer Group, including
while maintaining a sustainable business.
We view diversity and inclusion as a         Downer is participating in a number of         Spotless, were:
competitive advantage and commercial         Science, Technology, Engineering and
imperative. We are committed to a            Maths (STEM) initiatives to improve
culture that leverages the skills and        representation of women in the fields of
insights of our people.                      engineering, construction and project
Each year Downer’s Board reviews the
Diversity and Inclusiveness Policy to
                                             management. We work with our industry
                                             peers to promote the passion and                             20%
                                             opportunity available within our industry.
ensure that it grows and adapts to match     Activities include: career guides and
contemporary market changes and              attendance at high school and tertiary
expectations. This policy helps shape our    education career forums. One such
strategy and subsequent work programs        example is the Pimlico State High School
                                                                                                      Percentage of
to provide measurable objectives for         in Queensland case study under the Our
                                                                                                     women in Senior
achieving a diverse and                      communities section of this report.                      Executive roles
inclusive workforce.
                                             Our graduate program reiterates our
To develop a diverse and inclusive           commitment to a diverse workforce
workforce, we are currently focusing on      with graduates coming from a variety
the following areas:                         of disciplines. The rigorous recruitment
§§ Gender diversity – equal opportunities
   irrespective of gender
                                             process ensures we find the best talent
                                             across the country and places remain
                                                                                                           17%
                                             open until we achieve this goal.
§§ Generational diversity – building a
   continuous pipeline of talent             An analysis of our recruitment process
§§ Cultural diversity – increase workforce   generated strategies to overcome
   participation of Aboriginal and           potential biases and outlined goals for                 Percentage of
   Torres Strait Islander people through     minority shortlisting, interview panel                    women in
   employment outcomes and partnering        recommendations and a move to focus                    Management roles
   with community.                           on competency over sector experience.
In FY18 we leveraged the insights            Targeted initiatives, such as ‘Refer
from our Divisional Diversity Steering       a Female Friend’, which have been
Committees to promote and support            adopted by a number of our businesses
a diverse and inclusive workplace
through divisional diversity and inclusion
workplans. This allowed for a coordinated
                                             in Australia and New Zealand, have
                                             increased the number of female referrals.                    35%
                                             Industry partnerships encourage
and collaborative approach to group-wide     our employees to be their best by
objectives while providing divisional        participating in events and learning
flexibility for specific opportunities       opportunities with WIMARQ (Women
and outcomes.                                in Mining and Resources Queensland),                Percentage of women
                                             WIMWA (Women in Mining WA), NAWIC                    in Downer’s entire
                                             (National Association for Women in                       workforce
                                             Construction) and NAWO (National
                                             Association for Women in Operations).          Due to the acquisition of Spotless,
                                                                                            Downer exceeded its gender diversity
                                             A Group-wide review of the talent
                                                                                            targets for FY18, which were set prior
                                             management and succession planning
                                                                                            to the acquisition. New targets for FY19
                                             process ensured that our identified top
                                                                                            have been set to reflect the changing
                                             female talent have active performance
                                                                                            nature of the operations and
                                             and development plans to support
                                                                                            workforce demographics.
                                             talented females to realise their potential.
                                             A continued focus on flexibility in

                                                                                                                    Sustainability Report 2018 26
Diversity and                                  Valuing experience                              The size and scale of the HCMT Project
                                               Downer has teamed up with The                   is enabling the consortium to create
inclusiveness (cont.)                          Adventure Group (TAG) to launch                 meaningful opportunities for regional
Diversity and our Board                        Operation Bellator to help veterans             Australia, and sustainable high-skill, high-
Three of the six Non-Executive Directors       and Defence personnel who may be                value jobs in key regional growth areas
on the Downer Board are women. One             struggling with the transition from             such as Newport, Bendigo, Pakenham,
executive member of the Spotless Board         military to civilian life. Operation Bellator   Hallam and Morwell. These jobs form
is a woman.                                    is an outdoor experiential dignity              part of our Disadvantaged Worker
                                               and resilience program that takes               strategy that provides opportunity
                                               participating veterans on a two-day             for redundant auto workers through
                                               outdoor adventure experience run by             reskilling and workers with a disability.
                                               former SAS instructors, with Downer             Further detail is provided in the HCMT
                                               executives and select corporate partners        case study.
                                               acting as mentors to the veterans. We
                                               have over 150 veterans working in our           Cultural diversity
                                               business and are invested in providing          Reconciliation Action Plan
                                               meaningful opportunities to men and             In 2018, Downer developed an ‘Innovate’
Generational diversity                         women who have served Australia.                Reconciliation Action Plan (RAP)
Downer equally values all generations as       We benefit from having experienced              currently with Reconciliation Australia
being able to deliver the required talent      and Defence-trained personnel across            for endorsement. The Innovate RAP will
and capability for Downer.                     generations form part of our diverse            be two years in duration; 2018 – 2020,
                                               workforce. Further detail is provided in        and moves from scoping reconciliation
The Emerging LEaDers program focuses           the Operation Bellator case study.              efforts (as detailed in our ‘Reflect’ RAP)
on building a continuous pipeline of                                                           to implementing reconciliation initiatives.
talent to ensure that as people move           Disadvantaged workers
through their career to retirement the         Evolution Rail (comprising Downer,              Key initiatives central to our
business maintains its leadership              CRRC Changchun and Plenary) has been            Innovate RAP:
bench strength.                                engaged by the Victorian Government             §§ Improving employment opportunities
                                               to deliver the world-class High Capacity           for Aboriginal and Torres Strait
Downer has a comprehensive
                                               Metro Trains (HCMT) Fleet between                  Islander candidates
apprenticeship program and currently
                                               November 2016 and November 2024.
manages more than 250 apprentices.                                                             §§ Incorporating Aboriginal and
Downer’s Rail Apprentice program               Evolution Rail’s approach to the HCMT              Torres Strait Islander procurement
achieved an exceptional completion rate        Project will transform Melbourne’s public          partnerships within our organisation
of 100 per cent in 2017, compared to the       transport system with world-class trains        §§ Upskilling employees in cultural
Australian average of 49 per cent.             while creating a sustainable, globally-            competency training to facilitate
                                               competitive manufacturing industry                 better employee relationships with
Apprentice completion rate
                                               with the capability to export to the               Aboriginal and Torres Strait Islander
                                               world. Representing one of the largest             employees, contractors, suppliers
                                               government spends in Victoria, the                 and customers.
                                               project will not only deliver much-needed
                                  49%                                                          Significant work is currently being
                                  Australian   public transport infrastructure, it will also
                                  average                                                      undertaken to progress Spotless’
                                               drive jobs, industry development and
                                                                                               Reconciliation Action Plan (RAP) from an
                                               prosperity for Victoria.
   93%          100%                                                                           Innovate RAP to a Stretch RAP.
    2016          2017                                                                         Part of Spotless’ commitment to
                                                                                               reconciliation is as a partner of the
                                                                                               Department of Prime Minister and
                                                                                               Cabinet’s Employment Parity Initiative
                                                                                               which provides support to our business
                                                                                               to engage, recruit, educate and retain
                                                                                               Aboriginal and Torres Strait Islander
                                                                                               people. 10,409 employees have
                                                                                               successfully completed Spotless’ online
                                                                                               Cultural Awareness Program – Working
                                                                                               with Indigenous Australians.

                                                                                                                         Sustainability Report 2018 27
Diversity and                            opportunity to support Indigenous           Knowledge management
                                         leaders and the development of
inclusiveness (cont.)                    Indigenous communities.                     Downer recognises the value in
Jawun                                                                                effectively managing knowledge. As a
                                         Since our partnership began Downer          learning organisation Downer solves
Downer has partnered with not-for-
                                         has provided 37 talented employees and      problems systematically, embraces
profit group Jawun since 2014. Jawun
                                         222 weeks of secondment. It has also        and tests new approaches and
combines the skill and expertise of
                                         been supported at the highest levels,       methodologies, and learns from past
corporate Australia with Indigenous
                                         with 21 of our executives visiting these    experiences, failures and best practices.
people to enhance the skills and
                                         communities and experiencing firsthand
capabilities of Indigenous Australians                                               Custodianship of Knowledge
                                         the difference this program has made to
and create real change in                                                            Management within Downer is through
                                         these communities.
Indigenous communities.                                                              the Project Management Office (PMO)
                                         Aboriginal and Torres Strait Islander       via the development, maintenance and
Downer supports Jawun by seconding
                                         supplier diversity                          delivery of process and people capability.
employees with the required skills and
experience to work with Indigenous       Downer has demonstrated a
                                                                                     The PMO transfers knowledge
communities in the Cape York, Inner      commitment to creating opportunities
                                                                                     throughout Downer by sharing lessons
Sydney and West                          for Aboriginal and Torres Strait Islander
                                                                                     learned and through the learning and
Kimberley communities.                   peoples and their communities through
                                                                                     development capability of our people.
                                         membership of Supply Nation which
We are committed to furthering the       directs procurement activities to
advancement of Aboriginal and Torres     accredited Aboriginal and Torres Strait
Strait Islander Australians in these     Islander-owned businesses.
communities. Our participation in the
Jawun program provides us with the

                                                                                                              Sustainability Report 2018 28
Our future focus

 Focus          Objective                        Targets                  Initiatives
 Area

 Brand &        To enhance the brand and         Establish two            §§ Consider partnering with the Diversity Council
 reputation     reputation of the Downer         partnerships                of Australia and/or the Australian Human Rights
                Group through partnerships       with reputable              Commission to strengthen and illustrate Downer’s
                related to our diversity focus   diversity agencies          commitment to Diversity and Inclusion
                areas and to ensure the
                Downer Group continues to                                 §§ Build Downer’s employee value proposition that
                be viewed as an organisation                                 builds on employee engagement survey findings
                                                                             – including through regular internal and external
                that is committed to D&I
                                                                             messaging focused on an inclusive culture

 Gender         To improve opportunities         37 per cent women in     §§ Launch a new Downer paid parental leave policy
 diversity      for women to reach their         the workforce
                potential through an inclusive   by 2020                  §§ Establish a mentoring program where 15 high
                work environment while                                       performing women are paired with high performing
                positioning Downer as a          20 per cent women in        leaders to support their development goals
                preferred employer for           management by 2020
                                                                          §§ Build the executive talent pool of senior females
                women in our industry                                        with focused development opportunities including
                                                                             Downer ExeLD program (five places) and targeted
                                                                             external development through Chief Executive
                                                                             Women (three places)

                                                                          §§ Implement a new learning module to be completed
                                                                             progressively by hiring managers. The module will
                                                                             focus on diversity insights relevant to recruitment
                                                                             processes so that hiring managers are able to apply
                                                                             insights that are focused on achieving improved
                                                                             gender diversity

 Cultural       To build on Downer’s             Three per cent           §§ Launch Downer’s second Reconciliation Action Plan
 diversity      commitment to closing the        Aboriginal and              to demonstrate the ongoing commitment
                gap by increasing Indigenous     Torres Strait Islander      to reconciliation
                workforce participation          employees by 2020
                and developing strategic                                  §§ Develop two partnerships with Indigenous
                partnerships with Indigenous                                 pre-employment agencies to support the
                organisations and                                            commitment to closing the gap
                community groups                                          §§ All supervisors and above will complete cultural
                                                                             awareness training, which will commence during
                                                                             the period

 Generational   To establish Downer as a         Build our LinkedIn       §§ Build a talent pipeline by investing in youth
 diversity      sought-after employer for        ranking (currently          programs that align to our diversity focus of both
                all age groups and as an         the 12th most sought        female and Aboriginal and Torres Strait Islander
                organisation that builds a       after business to           priority areas, including: the Downer Graduate
                talent pipeline of thought       work for)                   Development Program (continue to unify a one
                leaders and continues to                                     Downer approach to graduate recruitment)
                value experience                 Maintain or increase
                                                 the number of            §§ Establish governance structure and a framework
                                                 graduate employees          for the Downer Apprentice and Trainee Program
                                                 year-on-year                that supports strategic attraction and selection
                                                 until 2021
                                                                          §§ Develop D&I image guidelines to ensure internal
                                                                             and external collateral covers the broad spectrum
                                                                             of diverse employees (with a focus on generational)

                                                                                                                  Sustainability Report 2018 29
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