Toll 2021 Sustainability Report - Toll Group
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Toll 2021 Sustainability Report
Toll 2021 Contents
Sustainability
Statement from MD 4
FY21 performance at a glance 5
Overview of business 6
Report
Our stakeholders 8
Our material topics 9
Financial performance 10
Our approach to taxation 11
Customer satisfaction 12
About this report Governance 14
Governance structure 14
This report covers Toll Group sustainability performance from 1 April
Anti-bribery and corruption 15
2020 to 31 March 2021, being the Toll Group financial year (FY21). This
report was developed with reference to the Global Reporting Initiative
Cyber security and privacy 17
Standards 2016 (see index p. 48). Our approach to sustainability Crisis management 19
reporting focuses on material issues and aims to be balanced, Responsible and sustainable supply chain 20
transparent, timely and relevant. Unless otherwise stated, disclosures Advocacy, policy and government relations 21
cover Toll Holdings Limited and the entities it controlled during the People 22
financial year. The Global Express division, which was scheduled to
Employee health, safety and wellbeing 22
be divested in August 2021, remains included in the data for this
Labour relations 26
reporting period.
Talent attraction and retention 27
Diversity and inclusion 28
Training and development 29
Environment 30
Energy and greenhouse gas emissions 30
Climate risk and opportunity 34
Environmental management 39
Resource and waste management 40
Community 41
Community health and safety 41
Community impact and engagement 42
Indigenous engagement 43
Data tables 44
People 44
Health and safety 46
Greenhouse gas emissions 47
Appendices 48
GRI index 48
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Statement from MD FY21 performance
At Toll, we move the businesses As a global organisation, we are In 2021, we’ll continue collating
at a glance
that move the world. We are committed to the highest standards strong metrics to further
proud of the vital role we play and working conditions for workers understand our impacts,
in supporting communities and in developing countries. We have measure our progress and offer
powering economic growth. With
clear global shifts in community
established our Environment,
Social and Governance
transparency in our reporting.
Longer-term, this information will
17%
in revenue to 140%
43,000
hours
frameworks to ensure that we help us partner with our customers 66 million in Asia revenue 6.4 billion cyber security
sentiment and expectation, we parcels delivered $9.1 billion litres fuel delivered training
understand and firmly believe that operate ethically and with integrity to reduce our carbon impact.
sustainability and business success in all markets in which we operate.
are closely connected. Our Whistleblower Policy and
However, this doesn’t mean
we can afford to wait for the
51% Record
490
3,000
Modern Slavery and Anti-Human growth in Toll Ambulance
Our customers, employees, and outcome of that data gathering 93,000 ecommerce volumes airfreight Rescue helicopter
charters
Trafficking Policy are two key areas MyToll users at Sydney retail fulfillment centre missions
communities rightly expect us to exercise to take action. We will,
that outline our commitment to
do what we can to make a positive with urgency, continue striving
ethical business practices in our Working
contribution towards a more to make improvements, reduce
operations and supply chains.
our environmental footprint, and
capital 23% 60,000
sustainable future. As a leading $380 Launch of global
$29 million Critical Incident
new members joined training platform
transport and logistics company Diverse teams contribute to a contribute to communities and in procurement savings million Frequency Rate
Toll’s social community 2,000 courses
with operations across Asia Pacific, strong culture and helps ensure areas where our work will have the
Europe and North America we our business remains successful. greatest impact.
recognise the role we have to play. Our vision is to support a diverse
We are proud to demonstrate our
and inclusive organisation where
Safety will always be our top commitments and actions through
differences are valued. The
priority. Our ‘Safety Obsessed’ this sustainability report.
management of these issues is
strategy continues to deliver
intrinsically tied to talent attraction
improvements in our safety
and retention.
performance with continued year-
on-year reductions in incidents Climate change presents an urgent
and injuries. COVID-19 was the challenge for all businesses. As a
great disruptor of FY21 and will player in one of the biggest emitting Thomas Knudsen
continue to impact businesses industries, Toll is actively partnering Managing Director
and communities for some time. with regulators and industry to find June 2021
Our teams across the globe new solutions and technology to
implemented measures to keep our reduce our footprint.
people and customers safe, which
When I think about where Toll
to date, have helped us to achieve
is on our sustainability journey, I
zero workplace transmissions.
am reminded of the adage “what
The pandemic is far from over and gets measured gets done”. We
continues to test our resilience. have spent the past 12 months
The impact of COVID-19 has also gathering data to understand our
shone the spotlight on mental position and baselines. This tells us
health, and our safety approach that we have made good progress
continues to evolve to focus on over the past five years and that
supporting the mental health of our inspires us to do even better.
people through awareness, support
programs and education.
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Overview of business
Our One Toll approach enables us to deliver an integrated supply chain, providing customers with services from
the point of manufacturing to the end customer. At Toll, we do more than just logistics. We move the businesses
that move the world.
Founded in Newcastle, Australia, Toll Holdings Ltd is an Australian Whether we need to provide
Supplier / Warehousing Land Transport Consolidation hub & Export Activities International
in 1888, Toll Group operates an public company, 100% owned warehousing in India, shipping from manufacturer value added processing Ports, stevedoring & Transportation
freight forwarding Sea & Air Freight
extensive global logistics network by Japan Post Co., which is China to Europe or express parcel
across 1,200 locations in more majority owned by the Japanese delivery around the Sydney CBD,
than 50 countries, with over Government and listed on the we have the people, networks and
40,000 employees. We have Tokyo Stock Exchange. world-class experts to do just that.
direct operations in 26 countries,
We operate a full range of logistics
with strong agent partnerships in
and transport solutions – from
countries where we are not directly
warehousing and freight forwarding End Customers Primary / Secondary Warehousing / Local Land Transport De/consolidation hub, Import Activities
present. We provide a diverse range Distribution Manufacturing cross dock & value added Ports & customs
to express parcel delivery and processing clearance
of transport and logistics solutions
project logistics.
covering road, air, sea and rail to
help our customers best meet their
global supply chain needs.
Our Toll Way
Our Toll Way brings together our Values, purpose, strategic priorities and culture compass. It’s the common thread that
connects over 40,000 employees across 50 countries. It helps guide our decisions and actions to make sure that we
all work together to deliver the best possible solutions for our customers. We know that good businesses are built on
a clear purpose and strong values that are deeply embedded and guide the right behaviours.
Our Values were shaped with input from our people, capturing what we wanted to preserve and what we wanted
to change at Toll. And they are relevant for every Toll team member, regardless of division, role or location. We
wanted to continue to create an accountability and performance-driven culture; teamwork and a strong customer
focus will drive this. We put our customers at the centre of everything. Our Values put together form our ‘Culture
Compass’ – this drives our culture for today into tomorrow.
During the reporting period, the • Global Forwarding sends products quickly and securely,
business had three main divisions: freight around the world by sea as well as operating Australia’s
and air. We purchase space largest domestic cargo ships
• Global Logistics operates
onboard freighter ships and between Victoria and Tasmania.
state-of-the-art warehouses and
aeroplanes, and clear customs We announced the divestment of
transportation throughout the
to ensure we get our customers’ this business in April 2021.
Asia Pacific region. We manage
goods from A to B reliably and
the needs of many big brands
on-time.
and government departments,
providing logistics solutions to • Global Express is the express
the oil and gas, energy, mining, delivery service of the business,
chemicals, retail, consumer and operating across Australia and
defence industries. In November New Zealand. Our team moves
2020 we sold our Global Logistics eCommerce deliveries, important
warehousing and trucking documents, palletised goods
operations in the United States. and other critical supplies and
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Our stakeholders Our material topics
We engage with our stakeholders through a range of different avenues including regular forums for discussions, In FY21 we undertook an Our materiality assessment was a desktop review of our internal
stakeholder surveys, our website, social media, internal intranet, webinars and corporate communications including assessment to identify and prioritise guided by the Global Reporting documents, peer reporting, industry
this sustainability report. the sustainability topics that matter Initiative Standards 2016. We publications, and media coverage.
to our business performance, that conducted management interviews, Through this process we identified
Toll’s stakeholders See further information matter to our stakeholders, and that customer interviews, employee, 18 material sustainability topics
impact society and the environment. agent and contractor surveys, and under five themes.
Japan Post (parent company)
Customers p. 12 Governance Customers Environment
Employees p. 22 Anti-bribery and corruption Customer satisfaction and engagement Energy and greenhouse gas emissions
Government and regulators p. 21 Technology and innovation Climate risk and opportunity
Media Cyber security and privacy Resource and waste management
People
Business partners and suppliers p. 20 Responsible and sustainable supply chain Environmental management
Employee health, safety and wellbeing
Communities p. 42 Crisis management
Labour relations Community
Environment p. 30 Rapidly evolving marketplace
Talent attraction and retention Community health and safety
Partnerships
Diversity and inclusion Community impact and engagement
Advocacy, policy and government
1. Toll’s key stakeholders relations Training and development Indigenous engagement
Toll depends on effective partnerships to serve
our customers and support our business, from Membership of associations
The materiality assessment process also identified the interdependencies between individual topics as shown below.
subcontractors to agents to suppliers to our
broader industry. We also partner with academic
institutions in both Singapore and Australia to
• Australian Industry Group
support independent research and programs for
• Australian Logistics Council
the benefit of the transport and logistics sector.
• Australian Trucking Association
We work closely with relevant industry
• Regional Aviation Association of Australia
associations to advocate for our sector and
• Freight and Trade Alliance
drive reform. This includes a focus on essential
infrastructure, to ensure that freight can move • International Air Transport Association
efficiently around the country. • Australian Federation of International Freight
Forwarders
• Victorian Transport Association
• Tasmanian Transport Association
• Japanese Chamber of Commerce
and Industry
• Singapore Logistics Association
• Property Council of Australia
• Gas Energy Australia
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Financial performance Our approach to taxation
In FY21 we delivered revenue We will focus on improving The changing operating
of AUD $9.1 billion, a 17% uplift the performance of our key environment – including shifting We are committed to acting as a Our in-house tax function, Group other functions, and via formal
compared to the prior financial businesses, capturing new growth supply chain dynamics, the rise of good corporate citizen, operating Tax, provides support to all Toll sign off processes for internal and
year. Our earnings before income opportunities and ensuring a eCommerce, and the continued with transparency, maintaining Group businesses globally in external transactions.
tax (EBIT) were $13.5 million. smooth transition following the sale rise of Asia as an economic shareholder value and complying relation to tax management issues.
of Global Express. powerhouse – presents exciting with the tax laws in each Tax risks are identified through
We have around $800 million in jurisdiction where we operate. business reporting to Group Tax,
opportunities for Toll’s customers
investment planned for the next In April 2021, we announced liaison between Group Tax and
and employees.
five years, with a clear mandate to the sale of our Global Express
scale up in Asia while continuing to business. The sale will enable Toll
grow our Australian operations. to focus on growing our operations
across the Asia region, while
continuing to build on our strong
competitive position in Australia.
Board tax policy
• Approach to the management of tax risk
• Guides the tax risk classification (routine, low, medium or high)
based on a combination of quantitative and qualitative factors
Tax Risk Management Framework (TRMF)
Applies to Toll Group, including the Board, all Toll Group
employees and any external persons who undertake work for, or
on behalf of, Toll Group.
• Details the policies and procedures required to meet the
Board’s expectations
• Outlines the framework by which the tax obligations of Toll
Group are to be met from an operational, governance and tax
risk management perspective.
Tax compliance policy
• Summarises the principles contained in the Board Tax Policy
and TRMF, and is available on both the Toll Group intranet and
external website
2 Description of Toll’s tax governance and control framework
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Customer satisfaction Case study – Toll City
Toll City is our next-generation logistics hub. As an integrated local and regional hub, Toll
At Toll we are customer driven. We ‘We are passionate about progress’ report on the metrics that matter to City offers customers the ability to move their goods with minimum on-ground transit time.
listen to our customers, grow with is part of our Culture Compass. them. This is a focus area for our The facility is situated less than 3km from the Tuas Port in Singapore, making it the perfect
them and leverage our expertise Our customers expect us to business, and we will continue to central point for distribution throughout Asia.
and unique assets to meet their compete with the most efficient work with our customers to ensure
Designed to accommodate the latest technology, Toll City is home to new technologies
needs. Our customers demand and innovative technologies on the we can provide the data they need.
such as driverless vehicles, smart-city telematics to track and optimise road fleet in
the best from us, so we harness market to deliver effective, high-
We have developed efficient and real-time, 3D-printing, and Smart RFID cabinets for real-time inventory accuracy and
the very best of ourselves—our quality solutions.
innovative facilities for several of accountability.
passion for logistics, our dedication
our key customers in order to
to operational excellence, and our Toll City has received a Gold Certification in Leadership in Energy and Environmental
drive for innovation—to deliver the How we manage this meet our quality assurance and
Design (LEED). LEED buildings are on average 25%-30% more energy efficient and are
continuous improvement targets.
seamless solutions they need, so Our customers are increasingly proven to contribute to increased productivity with improved ventilation, temperature
This is a process we will continue
they can keep doing, moving and focused on how we can help them control and reduced indoor pollution. LEED initiatives at Toll City include responsible
to build on and learn from, to better
growing. meet their sustainability goals and choices about architectural components, types of paint and adhesives used, choices on
service our customers now and
targets, while delivering excellent cooling and ventilation and rainwater harvesting.
Our customers are at the core of into the future.
our business - Toll is an integral service. There is a lot of opportunity
part of our customers’ value chains for us to grow and improve in this
and essential to meeting their area; the first step is to ensure
supply chain objectives. that we have systems in place to
accurately measure, monitor and
Case study – Nike warehouse
In partnership with Nike and Stockland, our custom-built warehouse in Melbourne’s
Altona North became the first-ever facility in Australia to achieve a whole-of-building
carbon neutral certification under the National Carbon Offset Standard (NCOS). The
certification of the Toll-Nike logistics facility, owned by Stockland, encapsulates our
significant investment in energy efficiency at the site. This included upgrades to a
2.5-kilometre-long conveyor system powered by 145 individual electric motors, and the
retrofitting of 1,300 light fixtures with high efficiency LEDs. This resulted in the site’s total
electricity consumption being halved, exceeding the greenhouse gas reductions required
by NCOS. Marie Varrasso, Nike’s Operations Director, said the success of the facility
reflects its commitment to reducing its carbon footprint whilst delivering efficient solutions
and savings which can be passed on to its customers.
The impacts of COVID-19 put a Looking forward We have begun investing in a new
renewed focus on global supply innovation hub in Singapore, where
chain resilience. We are working In the coming year we will focus we will partner with customers,
closely with our customers to on customer engagement and industry bodies, government, and
improve their supply chain strength, communication, to understand how academic bodies across Asia to
flexibility and transparency. we can better service their needs. create exciting new solutions to
We have published thought Many of our customers are seeking support our customers to grow.
leadership and hosted webinars transparent communication on our
on the impacts of the Regional activities, particularly in relation
Comprehensive Economic to sustainability, so we will build
Partnership (RCEP), to increase a communication strategy with a
customer awareness and focus on transparent and balanced
preparedness. reporting.
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Governance Anti-bribery and corruption
Governance structure Integrity is one of our key values:
we do the right thing, the right way.
Conducting our business ethically
The governance structures
we have in place in relation to
corruption and bribery include:
Our whistleblowing system
enables us to identify misconduct
and improper business practices
and transparently is fundamental which are not consistent with
• Policies and guidelines that all
to our business, reputation, the Toll Way defined in our Code
Toll is committed to sound corporate governance practices, and we believe this is the responsibility of everyone Toll employees must comply
customer retention and employee of Practice. The Toll Disclosure
in Toll, from directors and senior executives to the most recent junior employee. We commit to transparency, with, covering anti-bribery
engagement. Hotline is an independent service
acting with care and diligence, respecting the natural environment, and promoting a safe and healthy workplace. and anti-corruption, gifts,
that gives employees, suppliers
Hence, we are continually focused entertainment and hospitality,
and their relatives the ability
on strengthening our governance conflict of interest, sponsorship,
to confidentially report fraud,
processes and culture to combat donations and charitable
unethical conduct, unlawful
the potential for bribery and activities and other potential
conduct and other improper
Japan Post Co. Ltd corruption and ensure we are compliance issues.
conduct, including breaches of
upholding our values.
• Our Code of Practice, which Toll’s Code of Practice or Supplier
outlines our company standards Code of Practice. Reports can
How we manage this and the way we conduct our be made anonymously. To ensure
Global Leadership
The Board of Toll business. It may not always be accessibility across our workforce
Team Our key areas of focus in anti-
the quickest or easiest way, but and external stakeholders, the
bribery and corruption are the
we uphold that it is the right way. whistleblowing system is available
enhancement of our employees’
All employees must comply with in multiple languages, 24/7, via the
awareness and the management
the Code of Practice. hotline or online.
Audit and Risk
Occupational Health, Global Express of Third Party risks across Toll’s
Safety and Environment Global Logistics Global Forwading Sale announced April
Committee
Committee 2021
supply chain. Over the past • Our Supplier Code of Practice, The Chief Compliance and Security
financial year, we have reviewed which our key suppliers are Officer has responsibility for reports
our existing governance structures expected to sign and comply regarding compliance, security
with the intention to bring greater with (see further p. 20). and ethical behaviour. All reported
transparency, monitoring and incidents are investigated by our
There is engagement with Toll’s • Audit and Risk Committee • Occupational Health, Safety controls to these areas. security team.
shareholder, Japan Post Co., (ARC) assists the Board to fulfil & Environment (OHS&E) ______________________________________________________________________________
26
Audit & Risk Committee Charteri.
Ltd at various levels throughout its oversight responsibilities Committee supports and
the organisation. Where Toll relating to preparation of advises the Board on health,
has sought consultation with Toll’s financial reports, internal safety, and environment risks
Toll on matters and reporting controls, matters pertaining to and impacts, having regard
related to people, safety and the the external auditor, the work to the law and appropriate
environment, the consultation has of the internal audit function, standards of governance in the
been through the Health, Safety risk management policy and countries in which it operates.
& Environment (HSE) team.  framework and legal, insurance, The OHS&E Committee monitors
Consultation on matters related to regulatory and compliance and supports the activities of
Compliance is through the Group matters. It has responsibility executive management to support
Security and Compliance Team. for the oversight of risk and a high-performance safety and
compliance management environment culture at Toll Group.
Two committees sit underneath the
(including tax); all high tax risks
Board of Toll Holdings Limited: Through the leadership of the
must be assessed and approved
Managing Director, the Global
by the ARC.
Leadership Team (GLT) is
accountable for the development
and implementation of Toll’s
strategic plans across the
14 15
organisation.
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Cyber security and
In addition, Toll encourages • In June 2020 we appointed 39 approach to agent engagement.
employees to raise personal business compliance champions
• We have recruited a subject
employment-related grievances globally, to increase awareness
matter expert in ABC and
privacy
and other day-to-day concerns across the business of our ABC
Modern slavery to reinforce our
at any time with their line program and to monitor the
ABC program by implementing
manager, supervisor or Group HR effective implementation of our
innovative controlling and
representative and appropriate compliance initiatives.
monitoring activities focusing on
action taken.
• We developed in partnership addressing the potential ABC
A suite of policies and procedures with TRACE International, risks. These initiatives will be Breaches of cyber security can 2. Shadow security operations 4. Two-factor authentication:
alone is not enough for effective an automated third-party implemented through our control cause significant disruption to our centre (SOC): A third-party All remote access to our
risk mitigation, management and management system, for our tower team based in Penang, business, our customers and the shadow SOC was implemented, network now requires two-factor
monitoring. In FY21 we developed freight forwarding agent network Malaysia with the support of our wider community. monitoring for security events, authentication for an additional
a strategy aimed at our highest risk to be rolled out in Q3 FY21. business compliance champions augmenting our existing SOC layer of security.
Toll experienced this directly
areas to improve the robustness The management system network. and enhancing our visibility of
following two unrelated These immediate responses
of our anti-bribery and corruption conducts due diligence over events.
• We delivered a range of face- ransomware incidents in 2020. have been followed by a broader
(ABC) program. Implementation of our agent partnerships to track
to-face training to support 3. Additional security platform: resilience program which is greatly
this program commenced in the compliance with Toll’s policies
our people to understand our We purchased an additional increasing our ability to detect,
latter half of the year with additional and procedures. This will ensure
requirements: How we manage this security platform with end control and contain any incidents
measures to be implemented a more efficient process than the
point detection and control. quickly, with minimal disruptions to
from FY22 onwards. The following current manual questionnaire In response to the two cyber
This is a good mitigant against our network and customers.
actions were implemented in FY21: and allows a standardised, security incidents in 2020, Toll
ransomware as well as providing
centralised and transparent immediately shut down our IT The program is reviewed regularly
additional visibility into our
systems and enacted our Business by Toll’s Global Leadership Team
operating environment.
Continuity Plans. Cyber security and Board.
experts were engaged to manage
‘In Person’ training employee attendee numbers detailed forensic investigations
and resources were deployed to
2020 – 2021
bring our systems back online in a
controlled and secure manner, with
priority given to customer-facing
Denied Party Screening
systems.
Gifts, Entertainmnet & Hospitality
Over the past year, Toll has invested
significantly in our cyber security
both through strengthening our
Whistleblower & Conflict of Interest policy update
in-house team and with the support
Key Elements of Foreign Trade Controls, Compliance
of external experts. We implemented
Governance Framework and Foreign Trade Controls an accelerated cyber resilience
program, building on existing
Toll Sanctions Compliance Program (SCP) structures to increase the strength
and durability of our systems. The four
0 200 400 600 800 1000 12001400 1600 1800 immediate key actions taken were:
1. Employee training: cyber
security modules were delivered
with content targeted to improve
Looking forward IT security knowledge across the
Over the coming year we will roll out a third-party management system to business.
cover all agents, bringing greater transparency and accountability to our
operations. We will also roll out refreshed ABC training customized for
our business profile and new whistleblower training for all employees.
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People & Culture
Security Operations
Tools and processes to detect,
analyse and respond to cyber
threats in our environment
Security Architecture
Embedding security requirements
and controls into our technology
projects and solutions.
Asset Management
Identifying, classifying and prioritising our
critical assets
Crisis management
Identification and inventory refresh
Uplifting the cyber security
Design framework Classification framework and control
awareness and culture of our SOC Capability
Secure configuration baselines uplift
workforce. Hybrid SOC Model
Vulnerability Management Network environment Data discovery and management Our customers depend on RESPONSE TO COVID-19 3. Communication with
segregation Patch management
Training and awareness Incident Responsiveness
Threat Hunting Exercises Cryptographic key management Backups us to deliver, no matter what. As a provider of essential customers, suppliers and
Maturity Assessments Lifecycle management
Responding efficiently and services, a major aspect of our stakeholders: Toll continues
effectively to major impacts on our crisis management during the to engage closely with our
operations and supply chains is reporting period was responding stakeholders on our response.
vital to maintaining our ability to to COVID-19. There were four key We operate to and within
continue servicing our customers, components to our approach: impacted areas as local
delivering to communities, and conditions and restrictions allow.
Risk Management & Control Protective Technologies Identity & Access Management
Identifying, assessing, monitoring and Implementing and uplifting tools Improving how we manage and control ensuring the ongoing success of 1. Information monitoring and We monitor and adhere to all
reporting known cyber security risks. to prevent and detect cyber access to our critical systems and
threats. assets. our business. management: We established regulations and guidelines from
Security Governance and Reporting
Risk Management and Governance Cloud protection Multi-factor Authentication
a group-wide Critical Response government authorities, and
Endpoint protection
Network protection
Privileged Access Management
Centralised authentication
Team (CRT) to provide strategic work closely with our customers
Perimeter protection
Email protection
Identity and access governance
How we manage this advice and maintain continuity to provide service updates, either
Application whitelisting of the supply chain. Our HSE directly or via our website, as the
At Toll, we have extensive
team continues to closely situation changes.
experience in facing challenging
monitor guidance by the World
3 Toll’s cyber security program situations that require us to 4. Business continuity plans:
Health Organisation (WHO)
implement contingency plans that We managed our response to
and other government and
maintain our operations. We have COVID-19 in accordance with
public health authorities daily,
We are working to provide Looking forward flexibility across our extensive
and ensure that our business
the existing Toll Critical Incident
transparent communication with network so that we can continue Management and Business
Over the next year we will continue to invest in cyber security. This operations are aligned with their
our customers, including quarterly providing the best service possible Continuity Standard. Business
includes harmonising our approach to cyber security under a single recommendations.
updates on the steps we are taking to our customers. This is supported Continuity Plans (BCPs) are in
to increase the resilience of our management framework, working towards ISO 27001 certification , by a robust crisis management 2. Supporting our people: The place for all Toll business units to
systems. as well as ongoing collaboration with government and industry on this process. health and safety of our teams, ensure we can continue to serve
important topic. customers and community
Cyber security is not something our customers and maintain
We have a Global Crisis Incident is our number one priority.
an organisation does on its own; it health and wellbeing standards
Management Standard which We implemented a series of
requires collaboration. across our operations.
guides our employees in the event physical controls to keep our
Our recent experiences have of a crisis. This is supported by an teams safe, including regular
given Toll a unique and valuable ongoing training program tailored workplace cleaning, work from
perspective on the management for each business unit and level home support and distribution of
and regulation of cyber security of the organisation. These are face masks and hand sanitiser
and data privacy, and we are intended to ensure that each Toll (see further p. 22). We keep our
actively sharing our learnings with employee knows what steps to teams informed on best practice
the wider industry. take if a serious incident occurs. hygiene, travel guidance, new
After any significant incident, policies and guidelines using
Our advocacy has included
we facilitate a debrief with a variety of channels including
contributing to the Australian
key stakeholders to identify emails, teleconferences, team
Government’s 2020 Cyber Security
learnings and improve our crisis briefings, intranet and websites.
Strategy Industry Advisory Panel,
to help ensure that proposed management approach.
legislation is fit for purpose, fair
and appropriate for the business
environment. We are committed
to helping to create a more secure
environment for all organisations.
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19Responsible and Advocacy, policy and
sustainable supply chain government relations
Toll plays a critical role in the These include the suppliers of In FY21 we formed an internal As an international logistics Toll participates in industry-wide Looking forward
supply chains of our customers. products and services used in our Modern Slavery Committee of key company, we operate across consultation processes with
Just as they expect us to operate transport and warehousing activities, stakeholders to drive a responsible numerous jurisdictions. To provide government on a range of issues, Toll will continue to collaborate with
responsibly, sustainably and including trucks, planes, ships, and and sustainable supply chain optimal service to our customers including the development of road governments at a state and federal
transparently, we are also turning helicopters. Our supply chain also workstream. The Committee’s main with minimal disruption, we need and vehicle laws and industry safety. level across Australia to advance
our attention to our own upstream includes the services provided by focus has been the implementation to actively track the shifting policy public policy priorities. Working
When constructing new facilities, both with peak industry bodies and
supply chain. subcontractors and agents, mainly of a formal supply chain human landscape and regulatory changes
we engage with local governments directly, Toll is particularly focusing
for the transport of goods, but also rights risk assessment to assist in each of these and, where
As a global company, we are to ensure that there is adequate on policies that will enhanced
Professional Services covering HR, in the delivery of our modern appropriate, to advocate in the
required to comply with an supporting local infrastructure. environmental sustainability
IT and Safety. In many cases we slavery statement under the United interests of our industry and our
increasing range of supply chain across the transport and logistics
have long- standing relationships Kingdom’s Modern Slavery Act customers. Following our experiences
legislation, including the relevant industry. As an industry leader, Toll
with these businesses, and in other 2015 and Australia’s Modern with cyber-attacks, we have
Modern Slavery legislation in the Regulation of social and is committed to engaging in policy
cases short-term arrangements are Slavery Act 2018 (Cth). actively engaged with the
United Kingdom and Australia. environmental impacts is increasing development that can assist in the
made based on Toll’s or customer Australian government to support
Ten key risks emerged from the globally. In particular, as a transport uptake of the latest technologies
We are continually working to requirements. the development of Critical
supply chain risk assessment (listed business with a significant carbon that will enhance sustainability and
better understand and address our Infrastructure Legislation that is
Our Supplier Code of Practice below), for which the Committee footprint, we must be aware efficiency across the sector. Key
procurement risks more broadly. appropriate and effective to support
sets out expected standards of has developed a mitigation plan. of and be prepared for policy technologies include alternative
a whole of business approach to
behaviour. We have around 470 key We identified several opportunities developments on greenhouse gas fuels (i.e. battery electric and
cyber security (see further p. 17).
How we manage this suppliers, that are signatories to to improve our understanding emissions. hydrogen) and the use of vehicle
the Code of Practice. At the same of our supply chain and our due Our advocacy during COVID-19 data (i.e. telematics) to streamline
Toll works with an extensive network time, our procurement practices are diligence. These will be our focus ensured that Toll remained in commercial vehicle usage and
of suppliers, subcontractors and highly disaggregated, with some in FY22. How we manage this business as an essential service, so related traffic congestion.
agents. 20,000 vendors. that our customers could continue
We engage with governments to
with their business. Remaining well
Employees Suppliers Agents support the interests of Toll and our
informed on the different national
customers. Our Donations Policy
• Unfair or disrespectful treatment • Fair employment practices • Fair employment practices rules and the changing restrictions
specifically prohibits any form of
• Unsafe / unhealthy working conditions • Barriers towards freedom of • Barriers towards freedom of enabled us to be agile, shifting our
donation to a political party in any
association / collective bargaining association / collective bargaining processes as needed.
• Unethical, illegal, involuntary or • Unethical, illegal, involuntary or
level of government in any country.
discriminatory recruitment practices discriminatory recruitment practices
Toll’s Head of Government and
• Modern slavery • Modern slavery
Regulatory Affairs manages
1 Identified risks by stakeholder category engagement on individual topics
and projects, reporting to the Chief
In FY21 we have started Looking forward We also aim to concentrate the
Corporate Affairs Officer and other
developing a more holistic number of vendors we engage, to
We are moving towards a more business leaders on an as-needs
approach to vendor evaluations enable better management of risk,
strategic approach to supply chain basis.
which incorporate several strategic cost and sustainability factors.
elements, including social and management, which can also better Many other parts of Toll engage
align with Toll’s sustainability goals. For our critical agent network, we
environmental factors. directly with government policy
are in the process of rolling out a
We are introducing quarterly makers and regulators, coordinated
third-party management system
business reviews with our key by the Head of Government and
to automate our due diligence and
suppliers, encompassing key Regulatory Affairs.
compliance processes.
market trends, innovation and
20 21
sustainability.
| TOLL 2021 SUSTAINABILITY REPORT TOLL 2021 SUSTAINABILITY REPORT | People
4 HSEQ Global Management System
We have established a Global HSE MEASURING OUR
roadmap to outline our delivery 1. Unauthorised movement PERFORMANCE
commitments. Our Annual HSE (heavy vehicles) standard Lag and lead indicators are
Employee health, safety
Plans outline in detail what we will monitored monthly through to
2. Falling freight standard
do, and when, to deliver the vision Board level. To monitor incidents,
and to evaluate the success of our 3. PMP / vehicle / pedestrian
the Critical Incident Frequency rate,
and wellbeing
priorities and activities. interaction standard
our key lag indicator, combines
Our HSE Leadership Team 4. Heavy vehicle operations Serious Safety Incidents, Lost Time
meet monthly to oversee the (NHVL and Toll Group Road Injuries and Medical Treatment
implementation of the plan. They Transport Compliance) standard Injuries. Our lead indicators include
discuss key activities, programs hazard frequency rate, safety
5. Falls from height standard
Around the world, our people work and critical risks to ensure that conversations conducted and
in some of the most challenging, 6. Load restraint standard overdue actions. These help us
the plan is on track, and if it isn’t,
fast-moving environments. The reallocate resources or priorities. 7. Fatigue management standard improve incident prevention and
safety and wellbeing of our teams provide current information about
is our top priority at Toll. CRITICAL RISK MANAGEMENT our effectiveness.
In FY21, our critical incident
It’s why we’re committed to deliver Our Critical Risk Management frequency rate reduced by 23%
a culture that prevents incidents Program ensures each work area from prior year.
and injuries to promote genuine has a clear understanding of
care for the health, safety and potentially fatal risks at that site, TRAINING OUR PEOPLE
wellbeing of our people, customers, and that effective controls are in
communities and the environment. Each site delivers annual HSEQ
place to manage those risks.
training that is compliant with
In FY21 a steering committee was our Competence, Training and
How we manage this established to address and reduce Behaviour procedure. The training
the risk of serious injury and fatality. is a requirement to ensure
Ensuring our people’s health, A total of seven Critical Risks were each individual acquires and
safety and wellbeing goes beyond determined based on FY19–20 maintains the skills, knowledge
compliance; our Safety Obsessed critical incident data. As part of and behaviours to perform the
strategy encompasses many the FY21 HSE Plan, we developed functional requirements of their role
aspects – including culture and Critical Risk Standards for our top in a competent and safe manner.
behaviour, safe work processes Working safely is a condition of all The HSEQ Management System three critical risks: The training plan is recorded within
and technology. employment arrangements. This allows accurate tracking and the Toll learning management
is supported by our health and monitoring of indicators including system and monitored on an
We are promoting a culture of
safety policy, which is embedded not only injuries but also key ongoing basis.
‘active care’ through leadership and
across our operations, and applies hazards, so they can be addressed
behaviour, supported by one standard
to all our people, from employees before an injury occurs. All hazards
for HSE across the business.
to labour hire to contractors and that are reported, investigated
Fundamental to achieving this is agents. and managed through an Group Critical Incident Frequency Rate (CIFR)
holding each worker – including incident management system.
A GLOBAL WAY OF WORKING
management – accountable for A formal process is in place and 18.64
health and safety. All our people are Our health and safety plan sits documented in the Hazard and
expected to participate in training, within our Global Health, Safety, Risk Management Procedure to 14.69
and actively contribute to our health Environment and Quality (HSEQ) provide a common approach to
and safety culture. Health and Management System, which is managing hazards and risk.
safety is on the agenda of every built to meet the legal requirements
leadership meeting and our people in all countries of operation and
are expected to share safety covers all workers regardless of
moments in all their meetings. employment type. FY20 FY21
22 | TOLL 2021 SUSTAINABILITY REPORT TOLL 2021 SUSTAINABILITY REPORT |
23LOOKING FORWARD This program is focused on We can all take ownership and
embedding safe practices and demonstrate Safety Obsessed
Case study – health and safety under COVID-19 As well as implementation of the
behaviours into our workplace leadership based on these key
new Critical Risk Standards, the
culture. We want to empower all guiding principles.
When the COVID-19 pandemic hit, Toll implemented a series of additional measures to FY22 HSE Plan will include the
our people to speak up and stop
keep our workforce, customers and communities safe. Detailed COVID-safe plans were development of additional Critical Over the next year the program will
work when they feel unsafe.
developed, tailored to the requirements of each site. We distributed over 300,000 face Risk Standards. be launched and implemented in
masks and 15,000 bottles of hand sanitiser to our sites. We are extremely proud that we The Safety Obsessed ‘4S’ more Toll business units.
In FY21 we continued the rollout of
had no cases of workplace transmission. framework (below) guides our
our ‘Safety Obsessed Leadership’
approach to achieving a Safety
Additional precautions include: program to some of our Australian
Obsessed culture and applies to all
teams.
• Sharing advice to our teams about how to stay healthy, including frequent handwashing roles and levels of the organisation.
and social distancing
• Regularly cleaning our workplaces, vehicles and delivery equipment such as scanners
• Encouraging team members to monitor their health and seek medical attention if
they develop flu-like symptoms. Any team member who reports or displays flu-like
symptoms is asked to stay home
• Supporting our teams to follow travel advice and quarantine practices as directed by
local authorities
• Supporting our office teams to work from home.
See p. 19 for more information on our COVID-19 measures.
Investment in technology has been SUPPORTING MENTAL HEALTH In the coming year we will
a priority to reduce the health and AND WELLBEING implement a global health and
safety risks in the business. In Health and safety is not only wellbeing program, with a focus on
FY21 we invested in Driver State physical, but mental as well. mental health and support, including
Sensing, a distraction management We take a holistic approach to general health and wellbeing,
tool which has been beneficial wellness, including mental health support for people in a changing
in reducing vehicle incidents. first aid, employee assistance environment, and acceptable
Automation of key tasks in our programs (EAP), chaplaincy and workplace behaviours (respect and
warehouses has also contributed community programs. support between workers).
to safety outcomes by reducing the
manual load on our people, and
thus the risk of physical injury.
Case study – Healthy Heads in Trucks and Sheds
Toll is founding sponsor and Board member of the Healthy Heads in Trucks and Sheds
foundation. Healthy Heads was established to improve outcomes in areas relating to
psychological safety and physical wellbeing across the road transport, warehousing and
logistics industries in Australia. Mental health is an important issue for this sector due to
long hours, workplace isolation, pressure, and operation of heavy machinery.
Healthy Heads supports mental health training, standardisation of policies and regulation
at transport and logistics facilities and promotes wellness from a diet and mental health
perspective. Recently, Healthy Heads launched a free National Mental Health and
Wellbeing Roadmap for the sector. We are proud to support this organisation and its
important work.
24 | TOLL 2021 SUSTAINABILITY REPORT TOLL 2021 SUSTAINABILITY REPORT |
25Labour relations We depend on our workforce
to service our customers, and
our employees depend on us
Talent attraction and
to provide them with a safe,
supportive and fair working
environment. With over 80% of our
workforce based at the frontline,
retention
regulatory changes relating to
labour laws can have a significant The success of our business is preserve and what we wanted to employee onboarding. This has
material impact on our business directly related to the quality and change at Toll. The Toll Values streamlined our recruitment
and our ability to reliably provide capability of our people. are relevant for every Toll team processes and ensures that all
our services. member, regardless of division, role applicant information is consistently
To attract and retain the best talent,
or location. We want to continue and responsibly stored in one
With events over the past year, we need to provide an attractive
to create an accountability and place.
such as industrial action at employee value proposition with
performance-driven culture;
Australian port terminals due career progression. We also rolled out satisfaction
teamwork and a strong customer
to COVID-19 restrictions, our surveys to hiring managers and
focus will drive this outcome.
stakeholders are increasingly candidates so we can better
interested in our management
How we manage this We are in the process of understand their experiences and
of labour relations. A strike has To become a more attractive consolidating our people in what areas we can improve.
the potential cause disruptions workplace, we’re transforming management across our global
We know we can do better at
across our value chain, impacting our culture to become a purpose- operations. We want to have a
recognising and rewarding our
our services and as a result, our and values-led organisation. Our consistent and aligned human
high performing employees
customers’ operations. vision is to build an engaged and resources approach. The first
to incentivise them to stay
high-performing workforce with phase of this was to document our
with our business and keep it
passionate people. We want to processes and policies. In FY21 we
successful. As part of our culture
How we manage this attract the best talent through our finalised our Internal Mobility Policy
transformation we are focussed on
offering of a friendly, global culture, to ensure that all our people have
We are committed to fair objective setting and performance
partnerships for innovation and access to the information they need
working conditions to protect development processes to
opportunity for growth through to move roles within the business.
our employees. In FY21, our empower our people, drive
diverse challenges.
human resources team initiated We recently implemented an accountability, and support them to
a global review of procedures In FY21 we refreshed our Values, integrated system which manages develop the career they want.
for engagement of labour and drawing on input from our people our employee recruitment from
recruitment practices, with the aim to capture what we wanted to advertising a role through to
of developing a unified approach Looking forward
across our growing global
We are currently in the process
operations.
of extending the use of our
As part of this review, additional recruitment system beyond the
controls are being implemented to contract signing phase to facilitate
mitigate labour risks - for example, the onboarding process up to
we are working towards reducing day 90 for new employees, to
our use of recruitment agencies support them in navigating Toll,
to bring greater transparency and understanding the systems, and
consistency to the hiring process. the provisioning of equipment.
In FY22 we will finalise a global
employee referral program,
because we know the best way to
get the right talent is through our
existing employee base.
26 | TOLL 2021 SUSTAINABILITY REPORT TOLL 2021 SUSTAINABILITY REPORT |
27Diversity and inclusion Training and development
The transport and logistics sector, We want to create a sense of • We are sponsoring the Wayfinder As global supply chains and the
including Toll, has lagged behind purpose with a value-driven initiative tackling gender diversity logistics sector are constantly
other sectors in establishing an workplace. Our vision is to support in the supply chain and logistics evolving, so must the skillset of our
employee base and leadership a diverse and inclusive organisation sector employees. By training our people
team that is representative of the where differences are valued, we are building an agile workforce
• We have established gender
customers and communities that and employees act ethically and that is equipped to navigate the
targets and pay equality
we serve. This is increasingly a respectfully. rapidly changing landscape. Our
measures for Toll’s Graduate
focus of our stakeholders; it is an focus is to implement Learning
Our Diversity and Equal Program
expectation that we act not only and Development programs
Opportunity Policy commits the • We have established the Toll
on gender diversity but also on and initiatives that support the
business to an inclusive workforce Thailand Diversity Program to
diversity of culture, language and achievement of Toll’s business
that is fair, equitable and respectful, support the entry of women into
ability. priorities, are underpinned by our
free from discrimination, bullying our industry Toll Values and ensure we have
A work environment that is inclusive and harassment.
• A traineeship program has the capabilities required to sustain
of those from diverse backgrounds
The Division and business unit commenced to diversify our the business. We are committed
contributes to high performance,
leaders within Toll have the talent pool to investing in the development of
and will help ensure our business
responsibility of communicating our employees and believe this will
remains successful. • Our workplaces celebrate
this Policy to all employees, and achieve better outcomes for our
cultural diversity through events
contractors and must uphold customers and our people.
such as Japan Day and Lunar
How we manage this this Policy in their day-to-day
New Year celebrations
management of people. We also implemented an online couldn’t participate in learning,
We believe that addressing our
How we manage this learning platform to Toll employees and a managerial learning support
• We are implementing and
culture is the first step towards Below is just some of the activities
improving family-friendly facilities While our business units manage globally providing them with access portal to build accountability and
achieving our goal of a diverse that Toll has underway to promote
within our workplaces e.g. their own technical and systems to over 2,000 courses, videos and support from leaders of learners. In
workplace culture, and that has inclusion and increase diversity in
parents rooms training, our Group Learning and learning resources to enable them the span of one year, we delivered
been our focus in FY21. the workplace:
Development team is responsible to learn anywhere, anytime. these blended learning, multi-
for driving enterprise learning topic learning journeys to 1,379
We achieved a 220% increase
and development initiatives. This leaders across 15 countries, in five
year-on-year in leadership
included compliance training, languages.
training programs completed
leadership development,
and approximately 50 of our
professional development,
and career and performance
top leaders attended a strategic Looking forward
leadership program encompassing
development. Over the next year we will expand
change management, enterprise
All Leadership Development leadership and customer first the scope of our enterprise
programs are underpinned by our modules. Our Frontline Leader leadership development and
Toll Values. Program and Leading My Team professional development offerings
programs were deployed on and create multiple learning
Looking forward In FY21 we pivoted to micro and
a global scale. Both programs pathways utilising digital platforms.
virtual learning offerings to achieve
incorporated best practices and
In FY22 we will establish a a broader reach. All existing
modern learning methodologies
Diversity and Inclusion Council programs were adapted to be
including personalised online
comprised of people from across offered in a virtual format
learning to supplement formal
the organisation, with Board (a first for the organisation) and
workshops, interactive electronic
sponsorship. The Council will have new programs were launched.
materials to be sustainable and
multiple streams of focus but will
tech-enabled, Zoom virtual
begin with gender diversity. The
workshops to provide learning
Council will support diversity in
28 29
access to regions which previously
hiring practices and succession
planning across the business.
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