Sustainability Report 2018 - Downer Group
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Sustainability Report 2018
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
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 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
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
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
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
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
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
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 8Our 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 9Our 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 10Sustainability
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 11People
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
LTIFR6Environment
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 14Materiality 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 15Material 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 16Material 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 17How 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 18Material 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 19People
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 20Talent 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 21Talent 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 22Engagement 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 23Employee 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 24Employee 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 25Diversity 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 26Diversity 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 27Diversity 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 28Our 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 29You can also read
