SUSTAINABILITY REPORT 2019 - GRAINCORP LIMITED

 
SUSTAINABILITY REPORT 2019 - GRAINCORP LIMITED
GrainCorp Limited

Sustainability
Report 2019

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SUSTAINABILITY REPORT 2019 - GRAINCORP LIMITED
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.

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SUSTAINABILITY REPORT 2019 - GRAINCORP LIMITED
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
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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.

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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.

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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.

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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.

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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
SUSTAINABILITY REPORT 2019 - GRAINCORP LIMITED
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 19
GrainCorp 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 21
GrainCorp 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 23
GrainCorp 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 25
GrainCorp 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 27
GrainCorp 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 29
GrainCorp 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

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Level 28, 175 Liverpool Street
Sydney NSW 2000, Australia

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