SUSTAINABILITY REPORT 2019 - GRAINCORP LIMITED
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GrainCorp Limited
Sustainability
Report 2019
Page 1
GrainCorp Sustainability Report 2019 Contents GrainCorp Overview 4 CEO’s Statement 6 Safety and Health 8 Environment 12 People 18 Community 22 Governance 26 Corporate Directory 31 About this report GrainCorp publishes an annual Sustainability Report to provide an account of our performance in the areas of safety and health, environment, people, community and governance. This report has been prepared with reference to the guidelines of the internationally recognised Global Reporting Initiative G4 framework for sustainability reporting. Page 2 Page 3
GrainCorp Sustainability Report 2019
GrainCorp Overview
GrainCorp is a diversified food ingredients and
agribusiness company with an integrated business
model across three main grain activities: supply chain,
Our International Operations origination and processing.
Germany GrainCorp provides a diverse range of products and services
Grains across the food and beverage supply chain, to our valued
Ukraine customers in over 30 countries. GrainCorp has operations in
Grains
Australia, New Zealand, Asia, North America, Europe and the
United Kingdom. These markets collectively represent over
50 per cent of the international export trade in wheat,
barley and canola.
In FY19, GrainCorp operated under three reporting segments:
United Kingdom › GrainCorp Grains
Grains › GrainCorp Malt
• Saxon Agriculture China
Grains › GrainCorp Oils
Malt Oils
• Bairds Malt Our Purpose
• Scotgrain
• Brewers Select Enriching lives worldwide with essential ingredients from the land.
Canada and USA
Grains
• GrainsConnect Canada Australia & Our Integrated Supply Chain
New Zealand
Malt India Grains
Accumulation
• Canada Malting Company Grains Largest regional accumulation network in Australia.
Oils
• Great Western Malting Malt
• Country Malt Group • Barrett Burston Malting Storage
• Brewcraft USA • Cryer Malt Over 20 million metric tonnes (mmt)
Grains marketing office Singapore of country storage and handling capacity.
Head office Grains
Marketing
Malt facilities
Oils facilities Marketing to local and global markets.
Grains operations
Road & Rail
Full freight connectivity for rapid turnaround.
Ports
Seven bulk grain ports with 15mmt elevation capacity
and 14 bulk liquid terminals.
Processing
A key end producer of malt and oils.
Our Values
Our values help define our organisational culture by providing
a common understanding of how we do things at GrainCorp
and how we should behave towards each other, our customers
and other stakeholders.
› Commit to SAFETY
› Deliver for our CUSTOMERS
› LEAD the way
› OWN the result
Page 4 Page 5
GrainCorp Sustainability Report 2019
CEO’s Statement A first-generation, environmentally
friendly vessel at Port Kembla
Mark Palmquist
CEO
I am pleased to present GrainCorp’s Sustainability The health and safety of our people is paramount Water management will always be a priority In May 2019, we introduced a new Human Capital
Report for 2019. and supported by GrainCorp’s Group Safety, for the Group due to its variability and scarcity. Management System PeopleHub to aggregate
It was a disappointing year financially for GrainCorp Health and Environment (SHE) Strategy Towards During the year, our New Zealand Foods business employee information and drive greater efficiency
and our shareholders, with the Company reporting 2020, which was launched in 2017. Our FY19 safety commissioned an independent review of its East across our people processes. It will give our
an underlying net loss after tax of $82 million. performance improved markedly on last year, a Tamaki site and identified several engineering employees greater control over, and input into,
This was largely due to the impact of the drought result of the intense focus our people place on improvements that will save a combined their career development.
on grain volumes in eastern Australia and critical risk management, injury reduction and 60,000KL p.a. in water and wastewater use
At a local level, our communities are facing
international trade disruptions affecting domestic process safety management. once implemented.
difficulties as the drought continues in eastern
and international grain markets. Our international The importance placed on having a whole-of- We continued to develop programs during the Australia. We support our communities in
malt business, however, continued to perform business, strategic approach to health and safety year to support our people and help foster numerous ways, including through corporate
well with strong customer demand. management is evidenced by a 37 per cent a diverse and inclusive workplace. Greater donations, sponsorships, fundraising and
The drought in eastern Australia is one of the worst reduction in our Recordable Injury Frequency connectivity is integral to this, particularly for an volunteering activities. During the year, we
on record and at the date of this report shows no Rate in FY19. organisation like GrainCorp which has a broad introduced paid volunteer leave as an option
sign of abating. As an agribusiness, we are network spread across rural and regional areas. for our employees to support local initiatives of
As a Company with processing operations and a
experienced in dealing with climate variability To enhance workforce connectivity, we launched personal interest.
large asset footprint, it is vital that we effectively
and we navigate this in numerous ways, including an online platform called Workplace as a universal
manage our energy use and seek ways to reduce I am proud of the way our people have maintained
by operating a flexible network, diversifying our hub for our people, connecting sites, driving
our carbon emissions. During the year, we made their focus and commitment during this difficult
origination sources and reducing our fixed costs. greater collaboration and strengthening our
progress in each of these areas, including in our period and would like to thank all our stakeholders
During the year we also entered a 10-year crop employee communities.
Australian Grains business with further solar panel for their continued support.
production contract with White Rock Insurance installation at selected sites. Our Malt business in
(SAC) Ltd, linked to eastern Australian winter crop Vancouver, Washington effectively reduced its
production, which will provide GrainCorp with carbon emissions by switching part of its malt
important cash flow support in future drought years. transportation process from road to rail.
The contract is explained in more detail on page 16.
Page 6 Page 7
GrainCorp Sustainability Report 2019
Safety and Health
GrainCorp’s Group Safety,
Health and Environment
(SHE) Strategy Towards 2020,
launched in 2017, guides our
priorities based on the pillars
of Safety, Environment &
Sustainability, Leadership &
Culture, Health & Wellbeing
and Risk Management.
In FY19, we recorded improvements to our key
safety metrics with a Recordable Injury Frequency Critical risk reviews at Grains sites
Recordable Injury Lost Time Injury Workforce Injuries3 Rate (RIFR) of 7.7, down 37 per cent from last year
Frequency Rate (RIFR)1 Frequency Rate (LTIFR)2 (FY18: 12.2) and a Lost Time Injury Frequency
Rate (LTIFR) of 2.2, down 46 per cent from last
38.8 10.7 268
year (FY18: 4.1)). This is a pleasing outcome after a
deterioration in these measures in FY18.
Key safety priorities we have identified for the
Group are critical risk management, injury reduction
7.0 and process safety management. During the year,
we made good progress toward our goals in these
21.6
138 areas, with some of the associated initiatives
outlined below.
4.1
Critical Risk Management
13.9 3.8
88
11.3 11.5 12.2
3.0
85 81 “GO/NO GO cards”, critical risk checklists
76
2.7
A key part of our risk management process and critical risk signage are key elements of
7.7 2.2
46 involves the identification of critical risks. We have the critical risk reviews undertaken at our
identified 12 critical risks of relevance to GrainCorp, Grains sites. The “GO/NO GO” cards simplify
including operation around grain bunkers, working decision-making for employees when they are
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY13 FY14 FY15 FY16 FY17 FY18 FY19
in confined spaces, electrical safety, fire and assessing the safety of working on or around
explosion, and rail safety, amongst others. a bunker. Additionally, checklists are required
to be completed to ensure critical controls are
1
Recordable Injury Frequency Rate (“RIFR”) is calculated as the number of injuries per million hours worked. Includes lost time injuries, Risk reviews have been conducted across these
medical injuries and restricted work injuries. Includes permanent and casual employees and GrainCorp controlled contractors. in place prior to work on bunkers. Completing
categories at our Grains and Oils sites and have
2
Lost Time Injury Frequency Rate (“LTIFR”) is calculated as the number of lost time injuries per million hours worked. Includes permanent these steps is an important component of
and casual employees and GrainCorp controlled contractors.
been instrumental in the strong improvements
each pre-shift meeting and helps to promote a
3
Absolute number of lost time injuries, injuries requiring medical treatment and restricted work injuries sustained by permanent and we’ve seen to our safety metrics this year.
casual employees and GrainCorp controlled contractors.
unified approach to safety.
Page 8 Page 9
GrainCorp Sustainability Report 2019
Safety and Health
Injury Reduction
In FY19, GrainCorp introduced a programme to encourage SHE conversations and engagements across
the Group. The aim is to support and recognise safe acts, maintain a dialogue around how SHE systems
are performing, demonstrate commitment from GrainCorp’s leadership team and acknowledge the
recognition and positive management of hazards and risks.
During the year, approximately 17,000 SHE engagements were undertaken, with each of GrainCorp’s
businesses strongly embracing the concept.
SHE Engagements
A SHE Engagement is 3 Ask if you could chat about the task they
a conversation with a are undertaking
worker about safety. These 4 Observe the task and enquire about the steps
conversations help improve by asking:
future performance, a. what hazards exist and how are they controlled?
identify weaknesses or b. is there anything about the job that could
deficiencies in our SHE cause injury, property damage or harm to
systems and processes and the environment?
allow those involved to take necessary action
c. are there any improvements that could be
to prevent unsafe events from occurring. SHE
made to make the job safer or reduce risk
Engagements can be conducted at any time, with
of environmental harm?
GrainCorp employees, contractors or visitors. The
5 Seek the worker’s agreement to progress any
programme has been pivotal for Malt in achieving
agreed actions.
one of its safest years on record.
6 Thank the worker for his or her time and
How a SHE Engagement Works acknowledge observed safe behaviours
1 Approach someone at work and/or conditions.
2 Introduce yourself (if you don’t know the person). 7 Record details of the engagement in the system.
In addition to SHE Engagements, GrainCorp Directors component of the Company’s LEAN programme.
make site-visits that are focussed on safety. These visits The application of LEAN methods such as 5S and
emphasise the value our leaders place on safe practices. visual task boards help to reduce the likelihood of injury
Over the last two years, GrainCorp has been occurring due to poorly organised workplaces. These
implementing 5S, a LEAN methodology for organising boards prompt conversations in pre-start meetings on
the workplace for efficiency, effectiveness and safety. 5S, risks associated with critical site tasks. They have been
which stands for Sort, Set in order, Shine, Standardise and readily adopted across the organisation and are driving
Sustain, has proved to be highly effective in embedding increased employee engagement toward safety issues
a safety mindset in our people and is now a key and operational improvement. Safety and Health
Key Achievements 2019
Process Safety Management (PSM)
PSM procedures are embedded in GrainCorp’s
project management framework and are guided
by four pillars: Commit to Process Safety,
Understand Hazard and Risk, Manage Risk and;
Learn from Experience. These pillars help to isolate Group RIFR Group LTIFR PSM procedures embedded SHE engagements
7.7 2.2
specific actions that need to be incorporated into in GrainCorp’s project launched
GrainCorp’s processes to ensure best practice management framework
safety standards.
(down 37%) (down 46%)
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GrainCorp Sustainability Report 2019
Environment
GrainCorp has introduced compliance registers
at key sites globally, to ensure environmental
requirements are incorporated into existing
processes. Importantly, these changes provide
a platform for an auditable system that allows for
We recognise our operations have the potential to adversely easier identification of environmental risk areas.
Our Malt business has made good progress in
impact the environment and we are committed to preventing automating this process, with our Calgary, Canada
site now using compliance software that provides
or minimising this wherever possible. We continue to strengthen valuable information for the future rollout across
GrainCorp’s culture to ensure environmental sustainability other sites.
During the year, we also reviewed our practices
is a key consideration in our day-to-day operations. relating to the loading and unloading of various
commodities at our eastern Australian port
terminals. Phase one of the review included
identifying key environmental issues and developing
a project plan to address these issues. Phase two
involves the design and installation of engineering
controls, a compliance management system and
improved environmental risk assessment process.
Total Energy Use Energy Use Scope 1 GHG Scope 2 GHG
(GJ) per Tonne (GJ)4 Emissions (tCO2-e)5 Emissions (tCO2-e)6 Energy Efficiency
0.91 0.92
235,772
165,563 167,666
Environmental management
0.88 As a Company with processing operations and
5.2m
5.0m 4.9m 4.9m
0.85 216,108 211,316 211,400
151,718
145,806
improvements at Port Kembla,
a large asset footprint, managing energy use
New South Wales
and reducing greenhouse gas emissions are key
Due to the components of GrainCorp’s energy strategy.
sensitive nature
Renewable energy continues to play an important
of the environment
role in GrainCorp’s energy mix and during the year
surrounding
we installed additional solar panels at selected
GrainCorp’s port
Grains sites across Australia. Our Dubbo site,
operations, we
in regional NSW, was the latest to have panels
FY161 FY172 FY183 FY19 FY161 FY172 FY18 FY19 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 aim to minimise
installed, in October 2018, and is now saving around
the emissions of
Water Use Tradewaste Discharge Loss of containment events 37 tonnes of carbon emissions per annum.
pollutants and
per Tonne (KL)7 per Tonne (KL)7 GrainCorp has entered an agreement with ReNu,
FY17
4 the impact on
1.50 FY18
1.48
1.42
1.48 1.17 1.16 1.15 1.17 the ocean and an independent power provider specialising in clean
FY19
the surrounding energy products and services, for the provision
3
atmosphere. of solar power solutions at sites in Toowoomba,
Dunolly and Moree. The solutions are based on an
Most of our ports have environmental licences
2 agreed electricity purchase price from ReNu for all
or permits from state Environment Protection
solar power used, with excess power redistributed
Authorities that set out the thresholds that we
to the grid for spot pricing. Additional renewable
1 1 are required to operate within. At Port Kembla,
energy solutions continue to be explored.
for example, there are 200 different and often
0
complex items for which compliance activities Ensuring energy efficiency is a priority when
FY161 FY172 FY18 FY19 FY161 FY172 FY18 FY19 Level 48 Level 39
are required. Our environmental team has upgrading operating equipment. The GrainCorp
The above data set including historical data has been recalculated using the most recent international emission factors. As such all data
worked closely with site managers over the past Foods site at East Tamaki in New Zealand recently
points are different to those reported in prior sustainability reports. All data excludes divested businesses. year to create a more streamlined compliance replaced an energy intensive cooling tower
1
Excludes Malt site in Fletcher. 2Excludes Malt sites in Fletcher, Lyalta, Brewers Select, Scotgrain, Turiff, Blackfoot, Ashville, Chicago, Dallas,
Oakland, San Diego, Toronto, Vancouver BC, Vancouver WA BRC, Vancouver WA Distribution. 3Excludes Malt sites in Fletcher, South process, and this has resulted in a higher level with one that includes variable speed drives
Holland, Brewers Select, Scotgrain, Turiff, Blackfoot, Ashville, Chicago, Dallas, Oakland, San Diego, Toronto, Vancouver BC, Vancouver WA of oversight and efficiency. Improving our that minimise energy usage. Together with an
BRC, Vancouver WA Distribution. 4Calculated as the average energy (GJ) per production/throughput tonne per business unit. 5Scope 1
emissions are those produced directly by GrainCorp’s activities. 6Scope 2 emissions are indirect emissions, such as electricity consumption. processes at Port Kembla was particularly intended replacement of the site’s air compressor,
7
Calculated as the average water use/tradewaste (KL) per production/throughput tonne per business unit. 8Level 4 environmental incidents
are ones that threaten material or serious environmental harm. 9Level 3 environmental incidents are lesser incidents that are still notifiable important following an inadvertent breach of the improvements will eliminate the need for
to the authority/regulator. the cooling tower to run seven days a week,
the licence in 2014-16. Details of this breach are
outlined on page 17. significantly reducing total energy usage.
Page 12 Page 13
GrainCorp Sustainability Report 2019
Energy Efficiency
Country Malt Group’s new railcar unloading
facility reduces carbon emissions
Upgrade of Auscol truck fleet
GrainCorp’s Auscol business is a specialist in
the environmentally responsible collection and
Great Western Malting’s (GWM) Vancouver, recycling of used cooking oils and fats that
Washington plant is a leading supplier into the would otherwise contribute to pollution of our
North American craft brewing and distilling waterways.
markets. Bulk malt shipments, destined for Auscol’s operations service all the states of
larger breweries, originate directly from the Australia and the network has coverage of 97
plant. Smaller volumes, serving the emerging per cent of the Australian population.
craft market, are bagged into 1-tonne totes
Part of Auscol’s service involves the collection
and/or 25 kg bags and distributed by
of used cooking oil that is ‘upcycled’ into new
Country Malt Group, GWM’s warehouse
products including biodiesel for automotive
& distribution Company.
use. Providing this service requires the use of a
Craft beer has increased in popularity with specialised fleet of vacuum tankers.
North American consumers. As the demand
During the year, Auscol commenced a fleet
for Great Western Malting’s bagged malt has
upgrade with the objective of doubling its
grown, there has been a sharp increase in trucks
truck collection capacity. This has enabled a
transferring malt from the GWM site to the
larger volume of oil to be transported from
Country Malt Group site. This increase not only
significantly fewer truck trips, leading to a
outstripped the site’s bagging capacity, but also
reduction in the level of carbon emissions.
led to an increase in truck traffic and local
road congestion. The upgrade also maintains the innovative
‘seeing eye’ technology safety feature which
The GWM and Country Malt Group teams
detects driver fatigue and activates in-cabin
developed an innovative solution to reduce
audible alarms in conjunction with vibration
the number of trucks transferring malt
technology in the vehicle operator’s seat.
between sites. Country Malt Group built a new
automated bagging line, increasing bagging
capacity by 50 per cent, while concurrently
building a railcar unloading facility to allow Waste
railcars to move malt to the warehouse. An important focus this year has been waste
A string of railcars holds 12 times the capacity segregation for the purpose of recycling. Grains
of a single truck, thereby reducing the need and Oils implemented a national waste management
for over 500 truck trips between the GWM procurement strategy to improve the efficiencies
plant and the Country Malt Group warehouse. and cost associated with the collection and disposal
This translates to a reduction of 6,800km in of waste. The businesses will also look to reduce the
truck travel per year. volume of waste sent to landfill through recycling
and alternative waste treatment options.
Page 14 Page 15
GrainCorp Sustainability Report 2019
GrainCorp Operations Ltd Convicted of Breaching Upon becoming aware of the Calculation Error,
its Environment Protection Licence and Ordered GrainCorp reported the error to the EPA and all
to Pay $40,200 relevant authorities. There was no evidence of
GrainCorp Operations Pty Limited (“GrainCorp”), actual harm to human health or the environment
a wholly owned subsidiary of GrainCorp Limited, arising from the Calculation Error. At all times,
has been convicted and been ordered to pay to the GrainCorp has cooperated with the EPA’s
Environmental Trust the sum of $40,200 by the investigation in relation to the Calculation Error
Land and Environment Court of NSW for breaching including providing timely responses to all requests
a condition of its Environment Protection Licence for information and undertaking an independent
(“Licence”) issued by the Environment Protection audit. It has put in place a number of measures to
Authority (“EPA”) in respect of GrainCorp’s activities ensure that the Calculation Error is rectified and no
at the Port Kembla Grain Terminal (“Terminal”). similar exceedances occur again.
The Licence required GrainCorp to carry out its On 1 October 2019 the Land and Environment Court
activities in a competent manner. However, in the convicted GrainCorp of an offence against s 64(1)
period of 23 February 2016 to 23 January 2018, of the Protection of the Environment Operations Act
GrainCorp failed to carry out certain fumigant 1997 for contravening a condition of its Licence and
ventilation activities in a competent manner in that it ordered it to:
incorrectly calculated and recorded the rate at which 1. pay an amount of $40,200 to the Environmental
it emitted methyl bromide and phosphine, being Trust in lieu of a fine;
fumigants used to fumigate grain at the Terminal, 2. pay the EPA’s professional costs; and
into the atmosphere (“the Calculation Error”).
As a result of the Calculation Error, GrainCorp 3. publish this notice in the Australian Financial
Review, Sydney Morning Herald and Illawarra
Water Managing this variability on a seasonal basis is
vitally important for the Company and key to
inadvertently exceeded the maximum emission rate
Mercury, on GrainCorp Limited’s website,
of methyl bromide and phosphine imposed under
Water is critical to GrainCorp’s processing in its next Sustainability Report, and on various
remaining operationally and financially sustainable the Licence on 145 occasions.
operations and we have a responsibility to optimise social media websites.
through the cycle. It is also important over the
the way it is managed.
longer term, with expectations that climate
Due to the unique nature of each of our sites, water variability in eastern Australia will increase
efficiency is addressed at a local level to ensure over time.1
management strategies are fit for purpose.
In June 2019, GrainCorp established a 10-year
GrainCorp Foods commissioned an independent crop production contract (“Contract”) with
review into water usage and wastewater treatment White Rock Insurance (SAC) Ltd, to help manage
at its East Tamaki site in New Zealand. The project the risk associated with eastern Australian winter
identified several engineering improvements crop production volatility.
with the potential to save approximately 30,000
We also continue to adapt our operations
KL in water, 2,300 GJ in energy and 30,000 KL
to help smooth earnings through the cycle,
in wastewater each year. Several projects are
by streamlining our country receival and storage
underway, including the installation of flow meters
network, investing to improve efficiency at key
which are expected to save nearly 10,000KL in
sites, reducing fixed costs and negotiating more
water per annum.
flexible rail transport costs.
Managing climate variability
While it is important that GrainCorp actively
manages its impact on the environment, it is also
necessary for GrainCorp to understand and adapt
to potential impacts that the environment has
on its operations.
As a Company that stores, transports, processes
and trades grain and oilseeds, GrainCorp is
inherently affected by crop production variability.
1 GrainCorp 2018 Sustainability Report, p. 13 (Climate change research on 23 wheat cropping districts in eastern Australia - conducted
by Ndevr Environmental)
Page 16 Page 17
GrainCorp Sustainability Report 2019
People
Talent Capability Developing leadership capability has remained a
focus. In FY19, 200 employees completed the LEAD
& Employee Engagement programme, a customised programme aligned to
As our organisation continues through a period the four levels of leadership within GrainCorp.
of significant change, with an ongoing drought in A “Leaders as Coach” programme was developed
We continued to focus on talent capability, employee parts of eastern Australia and proposed demerger in conjunction with the Positivity Institute, which
of our Malt business, we believe it is the role of provides our leaders with the skills and resources
engagement and diversity and inclusion, each of which our leaders to motivate, support and engage they need to nurture the development of their
our employees. Given the significant change the
are key foundations of GrainCorp’s culture. organisation is going through, we have decided
teams. The programme has been piloted in parts
of the business and will be rolled out more broadly
not to conduct a formal employee engagement in FY20.
survey in FY19. However, several other initiatives to
GrainCorp’s graduate recruitment programme,
strengthen employee communications and establish
now in its third year of operation, is an important
both formal and informal feedback mechanisms
mechanism to ensure a strong talent pipeline.
were introduced, including:
Graduates are introduced to all areas of GrainCorp’s
• A Voice of the Employee survey was conducted business via a structured two-year training plan that
by Australian market research Company Ipsos in spans all business units.
early 2019. The survey interviewed approximately
70 employees across all geographies, businesses iCare
and levels.
• A Culture Survey was undertaken in partnership
with Human Synergistics, an Australian Company
specialising in the development of organisational
cultures. Approximately 600 employees across
GrainCorp’s operations were surveyed.
• Regular conversations are conducted between
leaders and their teams regarding change
initiatives.
• Conducting onboarding, stay and exit interviews
in conjunction with The Interview Group.
Key feedback from these initiatives included
a desire for more streamlined performance
reviews and career development processes,
Employees by Country Employment Type Composition and
as well as for a renewed vision that guides National Reconciliation Week
Leadership Groups1
the purpose of our people. – screening of ‘In My Own Words’
546 59 1 5 1 44 75 5 100 836 530 51 39 2 72 142 836 2 2 9 111 712 836
In response, the business has developed a clear iCARE is GrainCorp’s indigenous inclusion
207 34 405
purpose statement and an aligned Employee Value working group – one of GrainCorp’s employee
1837 6
1437 209 275 2223 5 179 2223 2223 Proposition (EVP) to “find your passion, grow your resource groups that acts to raise awareness
82 4
59
1774
potential, be part of our worldwide team”. of the importance of diversity & inclusion.
6 6
1
123 Underpinning this, our new Human Capital In My Own Words is a film that follows the
Management System (HCMS), PeopleHub, was journey of adult Aboriginal students and their
20
launched in May 2019 for our Australian and New teachers as they discover the transformative
Zealand Grains and Oils employees and will be power of reading and writing for the first time
rolled out to our international Grains operations in their lives.
Australia Canada China Germany India New UK Ukraine USA Total Permanent Permanent Fixed Term Fixed Term Contractor Casual Total Board of Executive CEO People Individual Total
Zealand Full-Time Part-Time Full-Time Part-Time Directors Team Leadership
Group
Leaders Leaders
in FY20. The HCMS provides a single resource for The film raises awareness around indigenous
Male Female Male Female Male Female all employee data, allowing for greater efficiencies education – an area that GrainCorp has
across our people processes. Through PeopleHub, previously supported through its Indigenous
GrainCorp’s female gender workforce participation rate improved to 27 per cent, up from 24 per cent we are introducing a new performance and Art Auctions.
in 2018. development program called Partnering for Success
which allows employees greater control over, and iCARE arranged a series of screenings of the
Note: Data includes employees under Enterprise Agreement and Individual Contracts, excludes External/Agency Contractors.
input into, their own career development. In FY19, film at various GrainCorp sites around Australia
approximately 20 per cent of vacancies were filled with all funds donated to the indigenous
by internal candidates. producers of the film.
Page 18 Page 19GrainCorp Sustainability Report 2019
Strong talent pipeline supported through GrainCorp’s Graduate Recruitment Programme GrainCorp supports gender diversity in brewing
– interview with Michelle Ky, Assistant Network Support, Marong, Regional Victoria
Teri Fahrendorf is head of GrainCorp’s malt innovation centre in Vancouver, Washington, and her
When did you start working at GrainCorp What do you enjoy most about working passion for brewing is incredible. Teri has over 20-years’ experience in the brewing industry and
and what attracted you here? at GrainCorp? founded the Pink Boots Society, a not-for-profit organisation that seeks to assist, inspire and
I joined GrainCorp in January 2017 as an IT I love the mix between a desk job and being able encourage women beer industry professionals to advance their careers through education.
graduate in the Sydney office. The graduate to get out and go for a drive. I get to see so much
programme was what attracted me to the of Victoria that I would never have before. I also The Pink Boots Society holds an annual beer festival in the United States and
Company – it was a diverse program, allowing love that my role is so varied and I have learnt fundraiser on March 8 (International Women’s one of the largest in the world.
me to explore different parts of the business. so much, such as how to use power tools!!!!! Day) where teams from all over the world band All funds raised went towards the
Tell me a bit about why you decided to take The people at GrainCorp make it so enjoyable. together and brew a collaboration beer. Pink Boots Society’s scholarship
the role in Marong and what it involves? Everyone is so supportive, cooperative and Great Western Malting gets involved by hosting a programme that supports women
As part of the graduate programme, each person patient – it makes my job really easy. Pink Boots Brew Day, which includes employees in brewing.
undertakes a two-month harvest rotation. Having as well as five local female professional brewers,
I also like the opportunities that GrainCorp
been born and bred in the city, the rural life was supporting connections among the local brewing
provides in terms of trying different roles.
completely unknown to me and it turned out to network. Both Great Western Malting and the
This can be seen through the many secondments
be really exciting! I was sent to Wagga Wagga, Canada Malting Group make a large donation to
that are listed on the careers page, and this was
NSW to help the Network Support Officer there the Pink Boots Society.
something that was encouraged throughout the
and that’s when I realised I really enjoyed doing
graduate programme. Bairds Malt in New Zealand also got on board
‘hands-on’ work. I also enjoyed the travelling.
and donated malt for the event held at Little
Can you see other
Not long after finishing that rotation, I saw the role Creatures Brewery in Hobsonville, Auckland.
opportunities here
for an Assistant Network Support Officer based in Several women from Bairds Malt in Auckland
you would like to take
Marong, VIC on GrainCorp’s internal careers page. took part in the event, gaining valuable insights
advantage of?
Although I’d never been to Marong, I knew the role from other women in the industry about their
While I may not see myself
was something that I was willing to move for. journey and experiences.
moving from this role
The role involves looking after the upcountry sites anytime soon, I would love Teri continues to represent women in brewing
and ports all over Victoria. I get the pleasure of to hopefully one day, have across the United States in various events
driving around the countryside resolving various an opportunity to work for including her role as a judge at the Great
IT issues, replacing and installing IT hardware, GrainCorp at one of their American Beer Festival. The largest ticketed
cabling buildings and getting to know the offices overseas.
different people at each site.
Fostering an inclusive culture groups have been created, with the majority being
open forums, welcoming contributions from any
Diversity and Inclusion (D&I) As part of GrainCorp’s annual performance and
reward processes, several checks are carried out At GrainCorp we believe connection is at the GrainCorp employee.
GrainCorp aims to foster a diverse and inclusive to identify and minimise bias in decision making heart of an inclusive culture and to support this
Another way in which GrainCorp fosters a more
workplace that facilitates opportunity, respect and by managers. These include: we introduced an online platform, Workplace,
inclusive culture is by providing opportunities for
innovation, helping our people, customers and in the second half of FY19. Workplace is a hub
• An annual internal pay equity analysis to identify employees to get involved in the various days of
communities to prosper and grow. that all employees have access to and serves to
employees who are paid significantly less or more significance that occur throughout the year. Days
During the year we conducted an assessment of than others doing the same job at the same level. connect those in offices with those on sites who
of recognition that GrainCorp supports include:
GrainCorp’s D&I practices against the Australian Should differences emerge that are deemed might otherwise never meet, effectively allowing
Human Resource Institute (AHRI) D&I maturity for the creation of communities within GrainCorp. • National reconciliation week (Australia)
significant and unexplained, appropriate action
model, with the findings highlighting a need to Additionally, it allows for a more informal flow of • International day against homophobia,
is taken.
embed D&I into all of our people’s mindsets information across the business with members biphobia and transphobia
• An unconscious bias assessment is undertaken
and behaviours. able to share information in real-time on matters of • National aboriginal day (Canada)
as part of the year-end performance and
Improved diversity starts at the top of an remuneration review. Outcomes are assessed interest. It is also an excellent tool enabling leaders • NAIDOC week (Australia)
organisation and during the year GrainCorp’s against several criteria to identify any unconscious to connect with their teams more frequently and via • Maori language week (NZ)
Diversity & Inclusion Committee’s membership bias. To date, no unconscious bias has been a less formal medium. Importantly, Workplace gives • International day of persons with disabilities
was strengthened to include more senior leaders. identified on the basis of gender, age or tenure. our people the opportunity to join or create the • National agriculture day (Australia)
The governance structure was also adjusted to special interest groups that represent them. • International Stop for Safety day
enable more efficient and effective decision
Engagement with Workplace has surpassed • R U OK? Day (Australia)
making and resource allocation.
expectations with 58 per cent of employees having • Wear it purple day (Australia)
active accounts. More than 60 special interest • International women’s day
Page 20 Page 21GrainCorp Sustainability Report 2019
Community
GrainCorp supports Camp Fire in Northern California
We believe GrainCorp’s strong ties to the communities in In November 2018, California experienced North America to donate pale and caramel malt
the deadliest and most destructive wildfire for production of a one-time release beer called
which we live and work help to create a strong organisational in its history. Resilience IPA. 100 per cent of the proceeds
culture. To support community involvement, we recently With customers in go directly to the Camp Fire relief fund to help
rebuild communities and support victims.
the area, GrainCorp’s
introduced paid volunteer leave as an option for our people businesses in North • GrainCorp donated USD25,000 on behalf of
Great Western Malting, Canada Malting and
to contribute to their communities. We also support local America rallied to
support victims in Country Malt Group.
communities through corporate donations, sponsorships and three ways: • GrainCorp also organised a fundraising campaign
where our people could donate directly to the
fundraising activities. • GrainCorp partnered
with breweries across Sierra Nevada Brewery Camp Fire Relief Fund.
Fundraising and volunteering opportunities
We encourage and support our people to give what they can of their time and other resources,
to support the charities that have meaning to them and their communities.
GrainCorp Malt in Calgary
supports underprivileged locals
During the year, a team from
GrainCorp Malt in Calgary, Canada
spent time at the Calgary Drop-In
Centre, a provider of health services
Corporate Donations and products, employment training
and housing support to vulnerable
We believe it is important that GrainCorp people. GrainCorp employees who
plays an active role in the communities were unable to donate their time
in which we live and work. participated in a clothing drive,
collecting items of clothing, toys and
We support our local communities in different
hygiene products for the Centre.
ways, including through volunteering and
The group continues to support the
the provision of financial and other forms of
Centre, often visiting to make lunches
support. During the year, donations were made
for those in need.
to the Moorilim Fire Brigade in Central Victoria,
the Thunder Bay Christmas Cheer Fund in
Canada and the Port of Brisbane’s Police Youth
Citizen’s Club, among others. GrainCorp also
donated equipment and services to support
community events including generators for
use at show days in regional Australia and
tarpaulins to local sporting clubs.
Page 22 Page 23GrainCorp Sustainability Report 2019
Silo Art Trail
GrainCorp offices in Hamilton and
From paddock to port tour
Toowoomba, Queensland support
world Epilepsy’s Purple Day In July 2019, the Central Highlands Development Corporation
and the Queensland Department of Agriculture and Fisheries
GrainCorp’s
ran their second tour of the Port of Townsville, Port of
Hamilton, VIC and
Mackay and Gladstone Port Corporation facilities for a
Toowoomba, QLD
group of 20 exporters, aspiring exporters and value chain
sites held morning
members. GrainCorp was proud to be a sponsor.
teas in March to
support Epilepsy The tours allow participants to hear from key supply chain
Queensland, raising personnel and local producers who use the ports. They also
over $1,000. provide an opportunity for people growing, processing,
freighting and exporting products to connect. They are an
The morning teas In 2016, GrainCorp began allowing its silos
important way for GrainCorp to help facilitate the flow of
were spearheaded to be used as the canvas for public artworks
communication among industry participants.
by GrainCorp Sales as well as providing financial support for
Manager Sam Bryce, who was diagnosed with associated legal fees and maintenance
epilepsy as a teenager, and whose son Stirling and publicity services. The artworks are
was also recently diagnosed before his first not only stunning but have reinvigorated
birthday. Sam recently joined the board of some of Australia’s small regional towns,
Epilepsy Queensland and he pledged that his with communities reporting an increase in Community
family would match the money raised at the
morning teas, dollar for dollar.
local business activity as well as nationwide
media attention. Key Achievements 2019
The morning teas were organised as part GrainCorp recently ran a competition on
of a global ‘Wear it Purple’ initiative to raise our social media pages for a silo art fan to
awareness about the disorder. win a framed photograph of their favourite
“It’s important for everyone to understand artwork by telling us which site they like the
that people of all ages with epilepsy can lead most. We received almost 400 entries!
very healthy and active lives,” Sam said. GrainCorp also provides light projectors at
“Most forms of epilepsy are controllable and its silos in Parkes and Newcastle in NSW, Continued to support local communities Introduced paid volunteer leave – employees
funds raised on Purple Day directly support where the silos are illuminated in different through donations and sponsorships continued to contribute to their communities via
individuals with epilepsy and educate the colours to celebrate days of significance skilled volunteering and fundraising
carers, families and broader community like Breast Cancer Awareness (pink) and
about epilepsy awareness.” National Agriculture Day (green).
Page 24 Page 25GrainCorp Sustainability Report 2019
Governance
Sustainability Governance
GrainCorp’s Board of Directors (Board) is
responsible for the oversight of GrainCorp’s
sustainability performance.
GrainCorp’s Executive Leadership Team is
responsible for developing the sustainability
framework and monitoring performance.
Sustainability is embedded Sustainability is embedded within our business
within our business practices practices through Our Code of Conduct and
Our Values.
through Our Code of Conduct
and Our Values. Corporate Governance
The Board has overall responsibility for
corporate governance. GrainCorp’s Corporate
Governance Statement is available on its website
www.graincorp.com.au
The Board is supported by Board
committees including:
• Business Risk Committee (BRC)
• Audit Committee
• People Remuneration and Nominations Committee
• Safety Health Environment and Governance
Committee (SHEGC)
The Committees are comprised of a majority of
Non-executive Directors and meetings for each
Committee are held at least four times per year.
Each Committee is governed by a Charter, which is
approved by the Board and reviewed periodically.
The BRC oversees all aspects of risk within
GrainCorp except for financial risks, which remain
the responsibility of the Audit Committee, and SHE
The SHEGC has specific oversight of the
risks, which are the responsibility of the SHEGC.
Group’s safety, health, environment and
The BRC supports and advises the Board in relation
corporate governance responsibilities,
to material and emerging risks that may affect the
as delegated by the Board.
achievement of the Group’s corporate strategies and
operations. The BRC also reviews the effectiveness The SHEGC’s objectives are to review,
of GrainCorp’s risk management framework, monitor and report to the Board on the
processes and controls. following matters:
The purpose of the Audit Committee is to assist - Safety, health and environment risks and
the Board in fulfilling its oversight responsibilities performance including systems of audit,
especially in respect of financial reporting and policies, processes and controls; and
internal control. The Audit Committee reviews the - Compliance with all applicable laws and
financial reporting process, the system of internal regulations, including continuous disclosure
control and management of financial risks, and the obligations, share trading and other
process, coverage, performance and independence corporate governance responsibilities.
of the internal and external audit. Further information on the tasks the SHEGC can
The purpose of the PRNC is to assist the Board be found in GrainCorp’s Corporate Governance
in the consideration of human resource and Statement, available on its website.
remuneration issues within the Company.
Page 26 Page 27GrainCorp Sustainability Report 2019
GrainCorp’s Code of Conduct Certifications and Charterships
GrainCorp’s Code of Conduct is founded on GrainCorp subscribes to a number of economic, • Halal and/or Kosher certification
our Values which define how we should behave environmental and social charters. We have indicated (at various sites globally)
toward each other, our customers, other relevant in brackets whether these apply to a specific • International Sustainability and Carbon
stakeholders, the community and our environment. geographical area or to a particular business unit: Certification for Sustainable Canola
The Code of Conduct naturally requires compliance • ASX Corporate Governance Council’s Corporate • National Code of Practice for the control
with all laws, but goes beyond that, requiring Governance Principles and Recommendations of Workplace Hazardous Substances
our employees to hold themselves to the highest (Australia)
standard of personal and professional ethical • National Greenhouse Energy Reporting (Australia)
• Corporate Social Responsibility reporting through
behaviour. The Code of Conduct • TRACE International
SEDEX (not for profit membership organisation
is approved by the Board. • ISO 9001 Quality Management Systems
dedicated to driving improvements in ethical
Every employee in GrainCorp is required to complete and responsible business practices in global (Australia & New Zealand (Oils), UK (Malt))
Code of Conduct training at the commencement of supply chains) • ISO 14001 Environmental Management Systems
their employment. The training is delivered via an (Australia, United Kingdom and New Zealand)
• National Pollutant Inventory (Australia)
online e-module, or in a face-to-face setting in some • AS/NZ 4801 Safety Management Systems
situations. The training program is administered by • Biomass and Biofuel Sustainability Voluntary
Scheme (Grains) (Australia and New Zealand)
the Learning & Development team and is part of a
• ONSR accreditation for rail in QLD, NSW and VIC • OHSAS 18001 Occupational Health and Safety
broader group of induction training modules. Re-
(Grains) Standard (Australia, UK, Canada, USA and
fresher training is provided periodically. GrainCorp’s
New Zealand)
Code of Conduct is published on the Company’s • Certified Sustainable Palm Oil (Oils, Grains)
website and is available to the public. • ISO 22000 Food Safety Management System
• Hazard Analysis and Critical Control Points
(Germany)
(Malt, Oils)
• ISO26000 Social Responsibility (Malt)
• FSSC 20000, Food Safety System (Canada)
GrainCorp’s Policies Industry Associations
GrainCorp’s Code of Conduct and other policies to a confidential third-party whistleblower reporting We proactively engage with relevant
have been developed to align with our Values to service that provides a confidential and anonymous stakeholders across all levels of Government
ensure that we observe the highest standards way to report concerns. and various industry associations including:
of fair dealing, honesty and integrity in our In preparation for reporting under the • Grain Trade Australia – nominated GrainCorp
business activities. Commonwealth Modern Slavery Act 2018, GrainCorp employees are members of Committees
GrainCorp takes a zero-tolerance approach to has developed a Modern Slavery Policy Statement established by the Grain Trade Australia
bribery and corruption. We are committed to which builds on existing commitments in its Code Board of Directors. Currently GrainCorp is
conducting our operations legitimately, ethically of Conduct. This policy statement articulates represented on the “Trade and Market Access
and in compliance with all applicable laws including GrainCorp’s commitment to human rights and to Committee” and the “Standards Committee”.
the United Nations Convention against Corruption. minimising the risk of modern slavery in its business GrainCorp Operations Limited is a general
GrainCorp has an Anti-Bribery and Corruption Policy operations and supply chain. GrainCorp will be “Level A3” Member of Grain Trade Australia.
that articulates our values and position on bribery required to report under the Modern Slavery Act, • Grain and Feed Trade Association
and corruption and guides employees to identify, with its first public report due by 31 March 2021. (GAFTA) – GrainCorp’s Technical Services
investigate and prevent all dealings under their department is an accredited GAFTA
effective control concerning acts of bribery “Analyst” in Australia, and GrainCorp
and corruption. Operations Limited is an approved GAFTA
Further, GrainCorp’s Whistleblower Policy is in place “Trader” in Australia and abroad.
to ensure employees and certain others can raise • Australian Food & Grocery Council –
concerns regarding any misconduct, improper state GrainCorp employees participate in the
of affairs or circumstances (including unethical, AFGC Agribusiness Forum, which provides a
illegal, corrupt or other inappropriate conduct) strong voice and leadership on critical issues
without being subject to victimisation, harassment affecting agribusiness processors operating
or discriminatory treatment. GrainCorp subscribes between the farm and manufacturing gate.
Page 28 Page 29GrainCorp Sustainability Report 2019
Corporate Directory
Chairman GrainCorp Limited
Graham J Bradley AM ABN 60 057 186 035
Chief Executive Officer Registered Office
Mark L Palmquist Level 28
175 Liverpool Street
Non-executive Director Sydney NSW 2000
Rebecca P Dee-Bradbury +61 2 9325 9100
Non-executive Director Company Website
Barbara J Gibson www.graincorp.com.au
Non-executive Director ASX Company Code:
Peter J Housden GNC
Non-executive Director Share Registry
Donald G McGauchie AO Link Market Services Limited
Level 12
Non-executive Director
680 George Street
Daniel J Mangelsdorf
Sydney NSW 2000
Non-executive Director 1300 883 034 (within Australia)
Peter I Richards +61 1300 883 034 (outside Australia)
Non-executive Director Auditors
Stakeholders Simon L Tregoning PricewaterhouseCoopers
We recognise that stakeholders are those who have a direct or indirect impact on our business, Company Secretaries
or who are directly or indirectly affected by our business. We understand that stakeholders have Stephanie Belton
the ability to influence our business outcomes, both positively and negatively, and that we need to Annerley Squires
establish and build mutually beneficial relationships.
Stakeholders How we engage Areas of interest
GrainCorp complies with
• Community bodies In the past year we have
its disclosure obligations
• Customers engaged with stakeholders
and frequently updates
on issues including financial
• Debt capital providers stakeholders with information Feedback and further information
and operational performance,
• Employees relating to additional areas of For further information or to provide feedback on this report, please contact the following:
strategic matters, regulation,
• Equity Research Analysts interest. Luke Thrum, Senior Manager Corporate Affairs and Investors Relations.
corporate governance and
• Government We engage with stakeholders community relations activities. +61 2 9266 9217 or luke.thrum@graincorp.com.au
• Growers directly and indirectly
through market updates and
• Grower representative
briefings, written updates,
organisations
media statements, formal
• Industry bodies engagement processes,
• Investors participating in committees
• Media – national and local and governance forums, formal
submissions and community
• Proxy and governance
partnership activities.
advisors
• Regulators
• Suppliers
Page 30 Page 31Level 28, 175 Liverpool Street Sydney NSW 2000, Australia graincorp.com.au
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