Wesfarmers Sustainability Report 2012 - Sydney

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Wesfarmers Sustainability Report 2012 - Sydney
Sustainability Report 2012
Wesfarmers Sustainability Report 2012 - Sydney
Contents                                       About Wesfarmers
Managing Director’s welcome           2       The durability of our company is reflected in our history. With origins in 1914 as a Western Australian
Message from the Chairman             3       farmers’ cooperative, Wesfarmers has grown into one of Australia’s largest listed companies. Our
Sustainability at Wesfarmers          4       diverse business operations now include supermarkets; department stores; home improvement and
  Scorecard6                                  office supplies; coal mining; insurance; chemicals, energy and fertilisers; and industrial and safety
  Engaging our stakeholders          10       products. We are one of Australia’s largest employers and have a shareholder base of approximately
  Reconciliation Action Plan         17       500,000 direct shareholders.
  Looking after our environment      18       Sustainability is an important part of our history and is a critical element in our future success.
  Driving our performance            26
Home Improvement and Office Supplies 34       Securities exchange listing
Target42                                      Wesfarmers Limited is a company limited by shares that is incorporated and domiciled in Australia.
Kmart46                                       Australian Securities Exchange (ASX) listing codes:
Insurance50                                   – Wesfarmers (WES)
Resources54                                   – Wesfarmers Partially Protected Shares (WESN)
Chemicals, Energy and Fertilisers    58
Industrial and Safety                62
Other businesses                     66
About this report                    67
Data Bank                            68
Independent Assurance Statement      70
Group structure and feedback form    73

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               Please visit www.wesfarmers .com.au
                                                  years of reporting our
                                                  sustainability performance

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               www.wesfarmers .com.au

Wesfarmers Limited ABN 28 008 984 049
Wesfarmers Sustainability Report 2012 - Sydney
The Wesfarmers story
Wesfarmers has long recognised the value of
sustainable business practices. Sustainability is
integral to how we do business, and we continue
to strive for innovative and efficient approaches
to improve our social, environmental and
economic performance.

                                          Dancer Brooke Widdison-Jacobs,
                                          West Australian Ballet
                                          photographed by Jon Green

                                          Wesfarmers Sustainability Report 2012   1
Wesfarmers Sustainability Report 2012 - Sydney
Managing Director’s welcome
Our commitment to sustainability continues to underpin all our efforts
and while I’m proud of the progress we have made in our environmental,
social and economic performance, the expectations we and others have
for continuous improvement mean we still have plenty of work to do.

                                                                                                    For us, the challenge of reducing
                                                                                                    our greenhouse gas emissions has
                                                                                                    always been driven by much more
                                                                                                    than the prospect of legislative
                                                                                                    change. We have been motivated
                                                                                                    by doing what is right for the
                                                                                                    environment, for our customers
                                                                                                    and for our businesses.
                                                                                                    We have steadily improved our
                                                                                                    preparedness for a world in which
                                                                                                    carbon is priced by continuing
                                                                                                    to invest in energy efficient
                                                                                                    technologies and systems.
                                                                                                    Greenhouse gas emissions from
                                                                                                    processes at our Chemicals,
                                                                                                    Energy and Fertilisers business
                                                                                                    have been reduced thanks to the
                                                                                                    introduction of new technology,
                                                                                                    without restricting productive output.
                                                                                                    Coles supermarkets continue to roll
                                                                                                    out in-store initiatives which improve
                                                                                                    their energy efficiency and enhance
                                                                                                    the shopper experience. These are
                                                                                                    just two examples from within our
                                                                                                    businesses of significant initiatives
                                                                                                    that lower our emissions.
                                                                                                    With the new carbon price laws now
                                                                                                    in place, our focus is on compliance,
                                                                                                    further improving our energy
                                                                                                    efficiency, and greater reductions
                                                                                                    in direct emissions where we can
                                                                                                    do that sensibly.

                                                                                                    Quality people
                    Our commitment                         We recognise that as a major             All the initiatives and programs
                    Wesfarmers has long recognised         employer and participant in              outlined in this report are driven
                    the value of a holistic approach       business in many communities             by our innovative, resourceful
                    to managing our businesses. We         across Australia and New Zealand         and creative team members.
                    started reporting on sustainability-   we have serious obligations to           The sustainability and underlying
                    related matters back in 1998 when      operate in a sustainable way.            success of our operations is, in
                    we stated that we were ‘committed                                               every sense, in the hands of our
                    to continuous improvement in           Carbon price                             people. Their skills constitute our
                    our environmental, health and          One of the most contentious issues       only true competitive advantage
                    safety performance’.                   in Australia over the past year has      and are our most important
                                                           been the introduction of carbon          sustainable resource.
                    This commitment continues to
                                                           pricing and formal carbon emission
                    underpin all our efforts and while                                              With an employee base of some
                                                           caps through implementation of the
                    I’m proud of the progress we have                                               200,000 people, one of the biggest
                                                           federal government’s Clean Energy
                    made in our environmental, social                                               challenges facing our organisation,
                                                           Future legislative package.
                    and economic performance, the                                                   like many others in Australia and
                    expectations we and others have        We have stayed out of the political      New Zealand, is attracting and
                    for continuous improvement mean        debate, but Wesfarmers has               retaining quality team members.
                    we still have plenty of work to do.    consistently supported putting a
                                                           price on carbon as a policy objective.

2   Wesfarmers Sustainability Report 2012
Wesfarmers Sustainability Report 2012 - Sydney
Each of our business units operates        Collectively, these programs make
its human resource function                a significant difference to local
autonomously and has its own               communities all over the country.       Message from
programs to invest in team members’
skills and capabilities, complemented
                                           Wesfarmers understands that our
                                           businesses only exist with strong
                                                                                   the Chairman
by a number of Group programs                                                      As Chairman, I believe our objective must
                                           customer and community support
for executives.                                                                    be to ensure Wesfarmers is successful in
                                           and our programs are designed to
However, the broad Wesfarmers              ensure we remain an integral part       a sustainable way, not only for the benefit
objective is to ensure we provide          of the communities in which we          of our half-a-million shareholders, but
fulfilling and safe workplaces,            live and work.                          for our 200,000 employees, millions of
we reward good performance                                                         customers and thousands of suppliers in
                                           While the customer is at the core of
and provide opportunities for                                                      the communities in which we operate right
                                           all our business endeavours it is the
advancement. This remains our                                                      across Australia and New Zealand.
                                           case that the suppliers of our goods
most significant contribution to                                                   A key aspect of that sustainable business
                                           and services are also a vital part of
the communities we serve.                                                          model is safety and, regardless of current
                                           making Wesfarmers the company
This year we have made some                that it is today. Our over-riding       performance, we should seek every
important improvements in our safety       objective is to ensure our suppliers    opportunity to improve safety in all
performance, but we are still a long       are treated fairly and with integrity   our businesses.
way from our goal of zero harm and         so that their relationship with our     To that end, we have implemented a
we will redouble our efforts to achieve    businesses is mutually beneficial.      Group‑wide review, led by John Gillam,
safer workplaces in the years ahead.                                               Managing Director of Bunnings, focused
Through our Reconciliation Action
                                           My thanks                               on safety performance, real workplace
                                           I would like to thank all the           safety behaviour and improving outcomes.
Plan (RAP), launched in 2009, we
                                           employees of the Wesfarmers Group
committed to a number of initiatives                                               I am confident this will provide us with
                                           who have contributed to the positive
aimed specifically at increasing                                                   a platform for even better results in this
                                           progress we have made with our
employment opportunities for                                                       critical measure of success into the future.
                                           sustainable business strategies over
Aboriginal people within our
                                           the past 12 months.
businesses. Pleasingly, we are
improving in this area, and many of        I am very proud of our actions
our businesses have implemented            and achievements. Last year, our
specific Aboriginal employment             reporting efforts were recognised
programs ranging from cadetships           when we won the Sustainable
to pre-employment training courses.        Company of the Year at the 2011
There is, of course, more work to          Australian Sustainability Awards.
                                                                                   Bob Every AO, Chairman
be done, but as our businesses             This achievement aside, I trust that
continually look for ways to               the readers of this report are able
improve we expect better and               to find the information necessary
better outcomes.                           for them to form their own view of
                                           our progress.
Another important area we continue
to focus on is our community
partnerships. All our businesses have
extensive community contribution and
support programs, many of which are
outlined in this report.
                                           Richard Goyder
We are major sponsors of the
                                           Managing Director
arts, health and medical research,
Indigenous initiatives like the Clontarf
Football Academy, education
programs from school to university,
and a range of national charitable
                                                                                               Wesfarmers Sustainability Report 2012   3
Wesfarmers Sustainability Report 2012 - Sydney
Sustainability at Wesfarmers
  It’s our responsibility. From our origins in 1914 as a Western Australian
  farmers’ cooperative, Wesfarmers has grown into one of Australia’s
  largest publicly-listed companies. This, combined with our diverse
  portfolio of businesses, confers a significant responsibility on us to get
  our sustainability efforts right. This is a responsibility not only towards
  our employees and shareholders, but also our customers, our suppliers,
  our communities and our environment.

                                Driving our                                 Engaging our
                               performance                                  stakeholders
                           • shareholder returns                                  • shareholders
                           • innovation                                           • employees
                           • safety                                               • customers
                           • ethical behaviour                                    • suppliers
                           • accountability               Our                     • communities
                           • developing our           responsibility              • government

                                         Looking after our environment
                                                    • reducing greenhouse   emissions
                                                    • energy efficiency
                                                    • conserving water
                                                    • reducing waste
                                                    • rehabilitation

  Our approach to sustainability                                                          In this report, each of our businesses has
                                                                                          set out the most significant material issues
  Wesfarmers’ objective is to provide a satisfactory                                      influencing their operations. At a Group
  return to our shareholders. We believe to do this                                       level, our material issues are:

  effectively our businesses need to focus on three                                       •P
                                                                                            rotect and enhance our reputation
                                                                                           with stakeholders
  areas to ensure we remain a sustainable business:                                       •L
                                                                                            ook after the safety and development
  engaging our stakeholders; looking after our                                             of our people
  environment; and driving our performance.                                               •C
                                                                                            ontribute positively to the communities
                                                                                           in which we operate
                                                                                          • Minimise our environmental footprint
                                                                                            esponsibly source products across
                                                                                           the Group

• shareholder returns                 Driving our                           Engaging our              • shareholders
• innovation                                                                                          • employees
• safety                            performance                             stakeholders              • customers
   4   Wesfarmers Sustainability Report 2012
• ethical behaviour                                                                                   • suppliers
• accountability                                             Our                                      • communities
Wesfarmers Sustainability Report 2012 - Sydney
For the first time we are reporting on our
environmental performance in both absolute and
relative terms. This allows us a better measure of
progress towards sustainable business operations.

The front section of this report is                                                We set very few public targets,
structured around these key focus                                                  preferring to be judged on our
areas, and is designed to give you an                                              performance, although each business
overview of the Group’s challenges,                                                has relevant internal targets that reflect
initiatives and outcomes over the past                                             its business operations and plans.
year. However, not all of the challenges                                           We have also included some broad
facing our businesses are common across                                            metrics to describe both the Group
the Group, and our business units also                                             and business unit progress over time
report on specific issues unique to their                                          in the areas of greenhouse emissions,
situation and operations.                                                          energy and water use, occupational
Reporting openly and transparently                                                 safety information, as well as
on a large number of key outcomes                                                  community contributions.
allows us to track our progress, and                                               Our performance in these areas is
publicly acknowledge our performance.                                              set out below and the performance
However, we are focused on operating                                               of each of our businesses can be
our businesses for the long term                                                   found in the ‘Scorecard’ section on
without the distraction of relatively                                              the following pages.
short-term forecasts.

Wesfarmers Group data
        Greenhouse gas emissions                                                            Energy use                                                  Water consumption
        Tonnes CO2e:’000                                                                    Petajoules                                                  Megalitres

      7,000                                                                  200            35                                              1,000,000   15,000                                                 0.25
      6,000                                                                                 30

                                                                                                                                            800,000     12,000                                                 0.20



      5,000                                                                                 25


      4,000                                                                  120            20                                              600,000      9,000                                                 0.15



      3,000                                                                  80             15

                                                                                                                                            400,000      6,000                                                 0.10
      2,000                                                                                 10
                                                                             40                                                             200,000      3,000                                                 0.05
      1,000                                                                                  5
          0   08             09          10          11          12          0               0   08        09      10      11      12       0                0   08         09      10       11       12       0.00
                          Greenhouse gas emissions (LHS)                                                 Energy use (LHS)                                                Water consumption (LHS)
                          Tonnes CO 2e per $m of revenue (RHS)                                           Megajoules per $m of revenue (RHS)                              Megalitres per $m of revenue (RHS)

        Safety performance                                                                  Community contributions
        Lost time injury frequency rate                                                     A$m

         15                                                                                 80                                             Direct
                                                                                                                                           09 25.77

                                                                                                                                           10 19.60

         12                                                                                 60


                                                                                                                                           11 33.80

                                                                                                                                           12 31.82




          6                                                                                                                                Indirect
                                                                                                                                           09 31.85
                                                                                            20                                             10 26.18
                                                                                                                                           11 43.77
              08            09           10          11           12                         0   09        10      11      12              12 40.42

                                                                                                                                                        Wesfarmers Sustainability Report 2012                        5
Wesfarmers Sustainability Report 2012 - Sydney
Sustainability at Wesfarmers
This section provides comparative information
on our performance in key sustainability areas.

Retail operations
       Greenhouse gas emissions                                                  Energy use                                               Water consumption
       Tonnes CO2e:’000                                                          Petajoules                                               Megalitres

       3,000                                                               120    8                                            300,000    4,000                                           0.12





                                                                                  6                                                       3,000



       2,000                                                               80                                                                                                             0.08

       1,500                                                                      4                                            150,000    2,000

                                                                           40                                                                                                             0.04

                                                                                  2                                                       1,000
           0   08          09          10          11          12          0      0    08      09      10      11      12      0              0   08      09      10      11      12      0.00
                    Greenhouse gas emissions (LHS)                                        Energy use (LHS)                                           Water consumption (LHS)
                    Tonnes CO2e per $m of revenue (RHS)                                   Megajoules per $m of revenue (RHS)                         Megalitres per $m of revenue (RHS)

       Safety performance                                                        Community contributions
       Lost time injury frequency rate                                           A$m

          20                                                                     25                                           Direct
                                                                                                                              09 12.36
                                                                                 20                                           10 7.32



                                                                                                                              11 15.61

                                                                                 15                                           12 19.04


          10                                                                                                                  Indirect
                                                                                                                              09 7.36

           5                                                                      5                                           10 1.85
                                                                                                                              11 6.70
           0   08          09          10          11          12                 0    09      10      11      12             12 2.88

       Greenhouse gas emissions                                                  Energy use                                               Water consumption
       Tonnes CO2e:’000                                                          Petajoules                                               Megalitres

         250                                                               35    1.0                                            150,000   1,000                                           0.020

                                                                           30    0.8                                            140,000
         200                                                                                                                               800








                                                                                 0.6                                            130,000

         150                                                                                                                               600


         100                                                               15    0.4                                            120,000    400
                                                                           10                                                                                                             0.005
          50                                                                     0.2                                            110,000    200
           0   08          09          10           11         12          0      0    08      09      10      11      12       100,000       0   08      09      10      11      12      0.000
                     Greenhouse gas emissions (LHS)                                       Energy use (LHS)                                           Water consumption (LHS)
                     Tonnes CO2e per $m of revenue (RHS)                                  Megajoules per $m of revenue (RHS)                         Megalitres per $m of revenue (RHS)

       Safety performance                                                        Community contributions
       Lost time injury frequency rate                                           A$m

          15                                                                     40                                           Direct
                                                                                                                              09 3.61

                                                                                                                              10 2.03



                                                                                 30                                           11 3.28

          10                                                                                                                  12 2.82


           5                                                                                                                  09 11.92

                                                                                 10                                           10 18.06
                                                                                                                              11 23.09
           0   08          09          10           11         12                 0    09      10      11      12             12 24.97

6   Wesfarmers Sustainability Report 2012
Wesfarmers Sustainability Report 2012 - Sydney
Office Supplies
   Greenhouse gas emissions                                                                     Energy use                                                   Water consumption
   Tonnes CO2e:’000                                                                             Petajoules                                                   Megalitres

    80                                                                     50                   0.25                                             200,000      60                                  0.05

                                                                           40                   0.20                                                          50                                  0.04






                                                                                                                                                              40                                  0.03
                       55,522                                              30                   0.15

    40                                                                                                                                           150,000      30

                                                                           20                   0.10                                                                                              0.02



    20                                                                     10                   0.05                                                                                              0.01
     0    08           09           10           11           12           0                      0      08       09      10       11    12      100,000        0   08    09    10    11    12    0.00
              Greenhouse gas emissions (LHS)                                                               Energy use (LHS)                                           Water consumption (LHS)
              Tonnes CO2e per $m of revenue (RHS)                                                          Megajoules per $m of revenue (RHS)                         Megalitres per $m of revenue (RHS)

    Safety performance                                                                          Community contributions
    Lost time injury frequency rate                                                             A$m

    15                                                                                           1.5                                            Direct
                                                                                                                                                09 0.49
    12                                                                                           1.2                                            10 0.51

                                                                                                                                                11 0.97


                                                                                                 0.9                                            12 1.01



                                                                                                 0.6                                            Indirect
     6                                                                                                                                          09 n/r
     3                                                                                           0.3                                            10 0.00
                                                                                                                                                11 0.38
     0    08           09           10           11           12                                   0    09        10       11     12            12 0.05

   Greenhouse gas emissions                                                                      Energy use                                                  Water consumption
   Tonnes CO2e:’000                                                                              Petajoules                                                  Megalitres

   250                                                                     120                   1.0                                             220,000     350                                  0.2









                                                                           80                                                                                250

   150                                                                                           0.6                                                         200
                                                                                                                                                 110,000                                          0.1
   100                                                                                           0.4                                                         150

    50                                                                                           0.2
     0    08           09           10           11           12           0                      0     08        09      10      11     12      0             0    08    09    10    11    12    0.0
              Greenhouse gas emissions (LHS)                                                                   Energy use (LHS)                                       Water consumption (LHS)
              Tonnes CO2e per $m of revenue (RHS)                                                              Megajoules per $m of revenue (RHS)                     Megalitres per $m of revenue (RHS)

    Safety performance                                                                          Community contributions
    Lost time injury frequency rate                                                              A$m

    10                                                                                           3.5                                            Direct
                                                                                                                                                09 0.99

                                                                                                 3.0                                            10 1.44




                                                                                                 2.5                                            11 1.10



     6                                                                                                                                          12 1.38
                                                                                                 1.5                                            Indirect
                                                                           * Figure restated                                                    09 1.68
                                                                             due to a
                                                                                                 1.0                                            10 1.64
                                                                             reclassification    0.5                                            11 2.02
     0    08           09           10            11          12             of claims.            0    09        10       11     12            12 2.05

   Greenhouse gas emissions                                                                      Energy use                                                  Water consumption
   Tonnes CO2e:’000                                                                              Petajoules                                                  Megalitres

   350                                                                         100               1.2                                             300,000     800                                  0.20
   300                                                                                                                                                       700





                                                                               75                                                                                                                 0.15


    250                                                                                          0.8

   200                                                                         50                0.6                                             250,000                                          0.10
    150                                                                                          0.4                                                         300

                                                                               25                                                                                                                 0.05

     50                                                                                          0.2                                                         100
      0      08           09           10           11           12            0                   0    08        09      10      11     12      200,000       0    08    09    10    11    12    0.00
                    Greenhouse gas emissions (LHS)                                                         Energy use (LHS)                                           Water consumption (LHS)
                    Tonnes CO2e per $m of revenue (RHS)                                                    Megajoules per $m of revenue (RHS)                         Megalitres per $m of revenue (RHS)

    Safety performance                                                                           Community contributions
    Lost time injury frequency rate                                                              A$m

     12                                                                                          12                                           Direct
                                                                                                                                              09 1.02



     10                                                                                                                                       10 2.35

                                                                                                                                              11 0.74
      8                                                                                           8

                                                                                                                                              12 1.15
      6                                                                                           6

      4                                                                                           4                                           09 10.83
                                                                                                                                              10 4.53
      2                                                                                           2                                           11 10.57
      0      08           09          10            11           12                               0    09        10      11      12           12 10.41

                                                                                                                                                           Wesfarmers Sustainability Report 2012          7
Wesfarmers Sustainability Report 2012 - Sydney
Sustainability at Wesfarmers
Scorecard (continued)

Industrial and other businesses
       Greenhouse gas emissions                                                         Energy use                                            Water consumption
       Tonnes CO2e:’000                                                                 Petajoules                                            Megalitres

        15                                                      10.0                   0.10                                       35,000      120                                                       0.04


        12                                                                             0.08                                       28,000







         9                                                                                                                                      80
                                                                                       0.06                                       21,000
                                                                5.0                                                                             60                                                      0.02

         6                                                                             0.04                                       14,000
         3                                                      2.5                    0.02                                                                                                             0.01
                                                                                                                                  7,000         20
         0    08        09        10        11        12        0.0                    0.00   08     09     10     11     12      0              0       08        09        10       11       12       0.00
                  Greenhouse gas emissions (LHS)                                                 Energy use (LHS)                                         Water consumption (LHS)
                  Tonnes CO2e per FTE employed (RHS)                                             Megajoules per FTE employed (RHS)                        Megalitres per FTE employed (RHS)

        Safety performance                                                              Community contributions
        Lost time injury frequency rate                                                 A$m

        4.0                                                                             1.0                                      Direct
                                                                                                                                 09 0.84

                                                                                        0.8                                      10 0.96


        3.0                                                                                                                      11 0.41
                                                                                        0.6                                      12 0.38





                                                                                                                                 09 n/r

        1.0                                                                                                                      10 0.00
                                                                                                                                 11 0.03
         0    08        09        10        11        12                                  0   09     10     11     12            12 0.00

       Greenhouse gas emissions                                                         Energy use                                            Water consumption
       Tonnes CO2e:’000                                                                 Petajoules                                            Megalitres

       800                                                      10.0                     6                                        30          4,000                                                       350
                                                                                         5                                        24






       500                                                                                                                                                                                                300

                                                                                         4                                        18




       400                                                      5.0                                                                           2,000

       300                                                                               3                                        12
       200                                                                                                                                                                                                250
                                                                2.5                                                               6           1,000
       100                                                                               2
         0    08        09        10         11       12        0.0                      0    08     09     10     11     12      0                        08        09       10       11       12
                                                                                                                                                     0                                                    200
                  Greenhouse gas emissions (LHS)                                                Energy use (LHS)                                               Water consumption (LHS)
                  Kilograms CO2e per Bank Cubic Metre moved (RHS)                               Megajoules per Bank Cubic Metre moved (RHS)                    Megalitres per million tonnes
                                                                                                                                                               of coal produced (RHS)

        Safety performance                                                              Community contributions
        Lost time injury frequency rate                                                 A$m

        8.0                                                                             1.0                                      Direct
                                                                                                                                 09 0.86
                                                                                        0.8                                      10 0.68


        6.0                                                                                                                      11 0.83
                                                                                                                                 12 0.55



        4.0                                                                                                                      Indirect


                                                                                                                                 09 n/r
        2.0                                                     *Figure restated due    0.2                                      10 0.03
                                                                 to reclassification                                             11 0.04      *Resources divested Premier Coal in December 2011
         0    08        09        10        11        12         of claims.              0    09     10     11     12            12 0.05       and data is excluded for FY12.

8   Wesfarmers Sustainability Report 2012
Chemicals, Energy and Fertilisers (WesCEF)*
   Greenhouse gas emissions                                                  Energy use                                                     Water consumption
   Tonnes CO2e:’000                                                          Petajoules                                                     Megalitres

  2,500                                                               5       20                                              30,000        5,000                                                   6

  2,000                                                                                                                                     4,000




                                                                                                                              20,000                                                                4


  1,500                                                               3



  1,000                                                               2                                                                     2,000
                                                                                                                              10,000                                                                2
                                                                      1        5
   500                                                                                                                                       1,000
      0   08          09          10          11          12          0        0    08      09      10      11      12        0                   0     08       09       10       11       12      0
               Greenhouse gas emissions (LHS)                                          Energy use (LHS)                                                    Water consumption (LHS)
               Tonnes CO 2e per tonne of chemicals produced (RHS)                      Megajoules per tonne of chemicals produced (RHS)                    Megalitres per thousand tonnes
                                                                                                                                                           of chemicals produced (RHS)

    Safety performance                                                      Community contributions
    Lost time injury frequency rate                                         A$m

     8                                                                       0.8                                            Direct
                                                                                                                            09 0.69
                                                                                                                            10 0.44

     6                                                                       0.6                                            11 0.29

                                                                                                                            12 0.49


     4                                                                       0.4



                                                                                                                            09 0.00

     2                                                                       0.2                                            10 0.01
                                                                                                                            11 0.00         *WesCEF divested the enGen business in
     0    08          09          10          11          12                   0    09      10      11      12              12 0.00          August 2011 and data is excluded for FY12.

Industrial and Safety*
    Greenhouse gas emissions                                                 Energy use                                                     Water consumption
    Tonnes CO2e:’000                                                         Petajoules                                                     Megalitres

   250                                                                250     1.5                                             800,000      300                                                0.16


   200                                                                200     1.2
                                                                                                                              600,000                                                         0.12




   150                                                                150     0.9
                                                                                                                              400,000      150                                                0.08

                                                                      100     0.6





                                                                                                                              200,000                                                         0.04
    50                                                                50      0.3                                                           50
      0   08          09          10          11          12          0         0   08      09      10      11      12        0              0    08        09      10        11      12      0.00
               Greenhouse gas emissions (LHS)                                          Energy use (LHS)                                               Water consumption (LHS)
               Tonnes CO2e per $m of revenue (RHS)                                     Megajoules per $m of revenue (RHS)                             Megalitres per $m of revenue (RHS)

    Safety performance                                                      Community contributions
    Lost time injury frequency rate                                         A$m

      5                                                                       1.5                                           Direct
                                                                                                                            09 0.13
      4                                                                       1.2                                           10 0.17


                                                                                                                            11 0.38
      3                                                                       0.9                                           12 0.22

      2                                                                       0.6



                                                                                                                            09 0.05

                                                                                                                            10 0.04
      1                                                                       0.3                                           11 0.93         *Data includes Coregas from July 2010; it was
      0   08          09          10          11          12                    0   09      10      11      12              12 0.00          previously part of the (then) Energy division.

Wesfarmers Corporate Office
    Greenhouse gas emissions                                                 Energy use                                                     Water consumption
    Tonnes CO2e:’000                                                         Petajoules                                                     Megalitres

      6                                                               30    0.025                                             80,000         8                                                 0.05
      5                                                               24    0.020                                                                                                              0.04


                                                                                                                              60,000         6

                                                                      18    0.015                                                                                                              0.03
      3                                                                                                                       40,000         4

                                                                      12    0.010                                                                                                              0.02








                                                                                                                              20,000         2

      1                                                               6     0.005                                                                                                              0.01
      0   08          09          10           11         12          0         0   08      09      10      11      12        0              0    08        09      10        11      12       0.00
               Greenhouse gas emissions (LHS)                                          Energy use (LHS)                                               Water consumption (LHS)
               Tonnes CO2e per FTE employed (RHS)                                      Megajoules per FTE employed (RHS)                              Megalitres per FTE employed (RHS)

    Safety performance                                                      Community contributions
    Lost time injury frequency rate                                         A$m

      5                                                                       10                                            Direct
                                                                                                                            09 4.78

      4                                                                         8                                           10 3.70
                                                                                                                            11 10.19

                                                                                6                                           12 4.78


      2                                                                         4                                           09 0.01



      1                                                                                                                     10 0.02
                                                                                2                                           11 0.01
      0   08          09          10          11          12                    0   09      10      11      12              12 0.01

                                                                                                                                          Wesfarmers Sustainability Report 2012                        9
Engaging our stakeholders
  Working with our stakeholders, including
  suppliers, customers, employees, interest
  groups and community partners helps ensure
  we create long-term value – and provide
  satisfactory returns for our shareholders.

During the year, several hundred employees enjoyed a family event at the Art Gallery
of Western Australia’s exhibition Picasso to Warhol: Fourteen Modern Masters from
The Museum of Modern Art, New York
*All works by Giorgio de Chirico, courtesy The Museum of Modern Art, New York and Art Gallery of Western Australia. For full artwork credits, see page 72.

10    Wesfarmers Sustainability Report 2012
Sustainability at Wesfarmers

                                                   • Employees – various internal employee          which has assisted in broadening
 Engaging our                                        groups (such as the Community
                                                     Involvement Committee and the
                                                                                                    the range of phosphate rock that
                                                                                                    can be sourced. Phosphate rock
 stakeholders                                        Wesfarmers Indigenous Network),
                                                     regular updates from the Group
                                                                                                    from the Western Sahara is not part
                                                                                                    of WesCEF’s import program for the
                                                     Managing Director available online             coming production year. WesCEF
                                                     via webcast, the ‘big Aussie BBQ’ for          reports further on this issue in its
                                                     the Queen during the Commonwealth              business unit report on page 58.
                                                     Heads of Government Meeting in Perth,
                                                                                                 • The role of Coles in the milk supply
                                                     Leadership Conference, the Wesfarmers
                                                                                                   chain in Australia was subject to
                                                     Arts program.
                                                                                                   questioning and criticism from some
                                                   • Shareholders – annual general meeting,        stakeholders. The issue related to
                                                     meetings with institutional investors,        Coles reducing the shelf price of its
                                                     bi‑annual investor briefings, quarterly       own brand milk across Australia as part
                                                     retail sales briefings and other updates.     of the ‘Down Down’ prices campaign
                                                   • Suppliers – meetings with key industry        and the suggested impact this may
                                                     groups, audit and review systems for          have on some dairy farmers. Coles and
Stakeholder engagement                                                                             Wesfarmers have spent considerable
Wesfarmers and its businesses have a                 responsible sourcing.
                                                                                                   time and resources working through
large number of stakeholders with varying          • Government and regulators                     this issue and Coles reports on the
interests across a number of different               – meetings with state and federal             matter in its business unit report on
countries. Engaging these stakeholders               government representatives, federal           page 33.
is an important part of our business.                regulators, trade associations.
                                                                                                 • Stakeholders requested more detail
All of our business units nurture and              • Non-government organisations                  on employee satisfaction information
manage their own relationships specific              – joint projects and initiatives,             collected by the Group. Each of
to their operations – whether it’s in stores,        visits and meetings.                          our businesses regularly conducts
at mine sites, offices or industrial facilities.                                                   employee satisfaction or other surveys
                                                   During the year, Wesfarmers also engaged
In the business unit reports (which start                                                          for a variety of purposes consistent
                                                   a third party to conduct a Stakeholder
on page 28) there are many references                                                              with the business objectives and the
                                                   Engagement Survey in relation to its
to these different types of engagement                                                             issues they are managing. There are
                                                   sustainability performance and reporting.
with customers, suppliers, regulators,                                                             several different styles of surveys used,
                                                   The executive summary of this report is
community groups, or public interest                                                               with varied objectives and different
                                                   published on our website. Some of the
groups relevant to each operation.                                                                 timings so it is difficult to provide a
                                                   key outcomes and comments from the
All of our businesses operate in accord                                                            snapshot of employee satisfaction
                                                   report are set out below.
with the ethical approach required by                                                              in the Group at any one time.
our Code of Conduct (available on our              • The survey indicated we currently have
website), including having a transparent             positive stakeholder relationships.         • The stakeholder survey also suggested
and honest approach when working                                                                   that each business unit should disclose
                                                   • WesCEF’s sourcing of some of its              material issues specific to its business,
with stakeholders.                                   rock phosphate (for the production            and also more information on how we
At a Group level, Wesfarmers is also                 of superphosphate fertiliser) from            are improving our supply chains.
engaged with a wide cross-section of                 the Western Sahara region in north
stakeholders. In addition to the various             west Africa was raised by some              The survey also demonstrated that our
ongoing connections we have with these               stakeholders. WesCEF has engaged            performance on sustainability issues was
stakeholders, the following summary                  with interested parties for several years   important to the future of our company.
covers the major contact we have had.                about the sourcing of phosphate rock              ur Code of Conduct and
                                                     from Western Sahara, and our trade               the executive summary of our
• Customers – feedback via letters,
                                                     is in accordance with applicable laws.           Stakeholder Engagement Survey
  email and website.
                                                     WesCEF has invested more than                    are available on our website
                                                     $5 million in a technology seeking               www.wesfarmers  .com.au
                                                     to reduce odours created by the
                                                     manufacturing process when using
                                                     phosphate rock from other sources,

                                                                                                     Wesfarmers Sustainability Report 2012 11
Sustainability at Wesfarmers
Engaging our stakeholders (continued)

 Doing the right thing –                     Our people                                           We establish inclusive cultures through
 Bunnings’ timber actions                    As one of Australia’s largest private                a variety of Group-wide policies and
                                             employers, with diverse domestic and                 processes, including a Code of Conduct,
 Legally sourced quality products
                                             international businesses, we consider                a Group Whistleblower Policy, and Equal
 that can be trusted by all customers
                                             our team members to be central to our                Employment Opportunity Policy.
 is a central platform in Bunnings’
                                             success. Employing outstanding people                Gender diversity continues to be a
 approach towards sustainable timber
                                             and providing opportunities for them                 priority for the Group. As at the end
 procurement. With a zero tolerance
                                             to apply their talents is critical to our            of the reporting year, 57 per cent of
 approach to illegal timber in its
                                             sustainability. While strong assets and              our employees are women. Two of
 supply chain for a decade, Bunnings
                                             strategies are important, it is our people           our eight non-executive directors
 has been proactively engaging with
                                             who deliver results.                                 (25 per cent), 21 per cent of Wesfarmers’
 key suppliers, industry groups and
 government to continually look for                                                               senior executives (general manager
 opportunities for improvement in            Who are we and where do we work?                     level or above), and 28 per cent of all
 sourcing sustainable timber.                The majority of our workforce is located             management and professional employees
                                             in Australia and New Zealand (see                    across the Group are women. The
 In 2004, Bunnings became the first          figure 1) and our employees worked more              Wesfarmers Diversity Policy outlines
 retail partner of the WWF Global            than 219 million hours. This equates to              four core objectives which are used
 Forest Trade Network, an organisation       approximately 115,000 full-time equivalent           to measure performance in this area.
 established to end illegal logging and      team members.
 unacceptable timber practices.                                                                   • Foster an inclusive culture –
                                             Wesfarmers is committed to continually                 Wesfarmers divisions undertake
 In June 2009, Bunnings was the              improving the attraction, development and              different initiatives and practices based
 lead signatory to a joint industry,         retention of talented people. We do this by            on the needs of their business, such
 community and conservation group            providing great job opportunities, rewards             as flexible work practices at senior
 statement (led by Greenpeace) which         for good performance, and safe working                 levels and paid parental leave. Specific
 called for a federal government ban         environments. Wesfarmers recognises the                targets are linked to senior executive
 on the importation of illegally logged      importance of being an inclusive employer,             key performance objectives under
 timber into Australia. Bunnings was         because a diverse workforce delivers                   the annual incentive plan.
 also part of a Common Platform              significant social and commercial value.
 supporting the Illegal Logging
 Prohibition Bill, which was presented
 to the federal government in April 2011.
 Bunnings now sits on the Advisory
 Panel for the proposed legislation.         Figure 1: Employee numbers in various locations (as at 30 June 2012)

 Most recently, Bunnings partnered
                                                          China, India,
 with WWF in the ‘Love Your Forests’               ASIA   Bangladesh
 campaign aimed at building customer                      and Indonesia
 awareness on the benefits of certified
 timber products. Bunnings also played
 a significant role in a joint timber                                                                                       New
 industry, retailer and non-government                                                                                       1
 organisation steering group led by                                                        NT
 Planet Ark, which developed the first                                                    1,954
 national wood products forum and                                                                            39,403
 workshop in May 2012.
                                                                            23,556           SA
 With this ongoing commitment to                                                           12,377                NSW
 timber procurement, more than                                                                                  55,215
 99 per cent of Bunnings’ whole
 timber products are now legally                                                                     VIC
 sourced from low-risk plantations                                                                                2,813
 or other verified forest operations.                                                                                                  NZ
                                                   UK                                                                                 6,136
                                                   156                                                 TAS

12   Wesfarmers Sustainability Report 2012
As one of Australia’s largest private employers, with diverse domestic
and international businesses, we consider people to be central to our
success. Employing outstanding people and providing opportunities for
them to apply their talents is critical to our sustainability. While strong
assets and strategies are important, it is our people who deliver results.

• Improve talent management – at least        Investing in our people                        The safety of our employees
  once a year, the Group Managing             Given the autonomous nature of our             Workplace safety remains Wesfarmers’
  Director meets with each division to        Group operating structure, training            highest priority and we have an obligation
  review: senior leader performance           and development is a core responsibility       to do all we can to ensure the safety in the
  and development; succession plans           of the business units. Our recorded            workplace of everyone who works for our
  for critical roles; and the pipeline of     commitment in training and development         company, our visitors and customers.
  high-potential leaders. During the          exceeded 2.2 million hours across              To that end, we have implemented a
  2012 financial year, talent reviews         the Group. In addition, key human              Group-wide review focused on safety
  were conducted with all divisions for       capital development policies and               performance, workplace safety behaviour
  senior manager level employees and          practices, including those focused on          and improving outcomes.
  above and included 138 women.               senior management remuneration,
                                                                                             We have a Group target of reducing
  This is in addition to detailed talent      development and succession planning,
                                                                                             accident rates by 50 per cent each year
  reviews conducted with employees            are managed at a Group level.
                                                                                             towards a goal of zero. The primary
  by individual businesses within the
                                                                                             measures are the lost time injury
  Wesfarmers Group. Throughout the
                                                                                             frequency rate (LTIFR) and the total
                                                                  2.2 million
  Group, all high-potential leaders benefit
                                                                                             recordable injury frequency rate (TRIFR).
  from development opportunities, such
  as internal and external development                            hours of training          For the reporting period, the Group
  programs, stretch assignments,                                 and development             LTIFR was 10.90 (see figure 2 on page 14),
  action learning projects, coaching,                                                        down from 12.89 for the previous year.
  mentoring and 360-degree feedback.                                                         The TRIFR at year end had increased to
                                                                                             42.67, compared to 40.94 in July 2011.
• Enhance recruitment practices – during      Innovation is also important to the success
  the year, 37 per cent of externally         of our businesses. If our people continually
  recruited positions and 30 per cent of      innovate, providing better products,
  internal promotions (all manager level
  and above roles) were filled by women.
                                              services or solutions to our customers,
                                              sustainable growth will be generated.
                                                                                                               decrease in LTIFR
• Ensure pay equity – a pay audit is          Wesfarmers seeks to develop a
  conducted annually on a Group basis         culture that encourages the boldness
  (which includes a review of gender          and creativity necessary to drive
  pay equity). Results are reviewed by        innovation. This year, for the first time
  the Board and divisional managing                                                          There were 2,395 lost time injuries (LTIs)
                                              we implemented an Innovation Awards
  directors. In addition, a pay equity                                                       over the year across all businesses in the
                                              program. The initiative was run across
  review of all Wesfarmers divisions was                                                     Group and 9,378 total recordable injuries
                                              the Group and focused on five categories:
  undertaken during the year, in line with                                                   (TRIs), which include LTIs and medical
                                              environment, customer, commercial,
  previous years, which did not indicate                                                     treatment injuries. While the improvements
                                              safety and people. The response was
  any observable discrepancies in pay                                                        in LTIFR and the number of LTIs are
                                              excellent, with the entries all reflecting a
  across each level, after taking into                                                       pleasing, we continue to believe that
                                              high level of innovation quality.
  account performance, experience,                                                           greater performance is both possible
  location and job nature.                    In September 2012, we held the                 and necessary.
                                              Wesfarmers Leadership Conference,
In respect to workplace relations,                                                           LTIFR and TRIFR remain the main
                                              which brought together approximately
we recognise the right of those we                                                           Group-wide measures of safety
                                              400 senior leaders from across the
employ to negotiate either individually                                                      performance. However, operating
                                              Group. The conference provided an
or collectively, with or without the                                                         businesses are encouraged to use a
                                              opportunity to reinforce expectations
involvement of third parties. The large                                                      range of broader measures to promote
                                              for our leadership culture, introduce
majority of our employees (more than                                                         a more proactive approach and support
                                              key leadership insights and opportunities
80 per cent) are covered by collective                                                       a culture of safe work practices.
                                              for growth, share best practices across
agreements. At the same time, the             the businesses, and recognise the              The number of workers’ compensation
company believes in maximising the            Innovation Award winners.                      claims increased slightly from 9,334 in
flexibility of workplace arrangements                                                        2011 to 9,380 this year and the Group
available to employees and                                                                   data is shown in figure 3 on page 14.
their managers.

                                                                                                 Wesfarmers Sustainability Report 2012 13
Sustainability at Wesfarmers
Engaging our stakeholders (continued)

 Figure 2: Lost time injury                                         • the team from the Blackwoods                  • a campaign titled ‘Simply Safer’ was
 frequency rate (LTIFR)                                               Protector distribution centre in                run across Bunnings in March 2012
                       15                                             Highbrook, New Zealand, developed               to seek ideas from team members on
                                                                      a drum trolley to move heavy drums.             improving health and safety. More than

                                                                      This has had a significant effect               1,200 ideas were received with many


                                                                      in reducing the number of manual                being implemented immediately.

                        6                                             handling injuries
                                                                                                                          he safety outcomes of our business
     10.90              3
                                                                    • a new positive performance safety                  units, and the Group data, can be
                        0   08      09      10      11      12
                                                                      indicator was introduced at Kmart.                 found in the Data Bank on page 69.
                                                                      It was implemented to provide
                                                                      feedback to stores on their compliance        Our community
 Figure 3: Workers’ compensation                                      to the operational safety plan.               Community contributions
 claims                                                                                                             and partnerships
                                                                      This assisted with focusing store
                                                                      efforts and identifying opportunities         The continuing successful operation of
                   9,350                                              for improvement                               the Group’s businesses, in an ethical and

                                                                                                                    socially responsible way, is the cornerstone

                                                                    • at CSBP, a business within WesCEF,            of our contributions to the community.
                   9,050                                              a strategy was completed to move

                                                                                                                    We believe in supporting the communities
     9,380         8,900                                              to a best practice solution for
                                                                                                                    in which we operate by direct and
                   8,750     08     09      10      11      12        medical, health, injury management,
                                                                      fitness to work and manual handling           indirect assistance to organisations and
 Note: For definitions of LTIFR and TRIFR please refer to
                                                                      risk management in an industrial              activities that provide a public benefit. The
 the Glossary on page 72.
                                                                      environment                                   Wesfarmers Board, in relation to its direct
                                                                                                                    community contributions, gives preference
                                                                    • the launch of a ‘Target your Safety’          to activities focused on medical research
To meet the ongoing challenges of                                     DVD at Target, raising team member            and health, Indigenous partnerships,
creating a safe environment for all the                               awareness of the major mechanisms             education and the Wesfarmers Arts
people in our workplaces, there have been                             of injury; manual handling, hitting           program. Our individual businesses may
a number of initiatives across the Group                              stationary objects and slips, trips           also provide support in these general
which have resulted in positive change.                               and falls                                     areas, but in addition have community
Some of the highlights included:
                                                                                                                    support programs tailored to their
                                                                                                                    business activities, customer base and the
                                                                                                                    communities in which they operate.

                                                                     Safety training at WesCEF
                                                                     Safety at WesCEF is supported through employee competence in operating complex
                                                                     facilities. This is achieved through training supported by a technical and safety training
                                                                     group within the WesCEF Health, Safety and Environment team. A new model for
                                                                     developing technical training in the Kleenheat Gas Kwinana production facility has been
                                                                     so successful in the last 12 months that the same model is being used in other areas
                                                                     of the business. During 2011, a need to improve knowledge management and develop
                                                                     high-quality training material for plant operations at the Kwinana gas production facility
                                                                     was identified. After struggling to build momentum it was established that the volume
                                                                     of improvement projects combined with the objective to develop competency‑based
                                                                     training quickly meant external resourcing was necessary. A registered training
                                                                     organisation (RTO) was engaged to gather information from the experts (engineers,
                                                                     supervisors and operators) and develop training modules. What would have been
                                                                     a five-year project using existing training development models has become a two‑year
                                                                     project. Working with the RTO has also enabled training materials to be aligned
                                                                     to National Standards. The developed model has since been used in Kleenheat
                                                                     Gas’s Kwik-Gas plants, with similar success, and will soon be used in other areas
                                                                     of the business.

14   Wesfarmers Sustainability Report 2012
Wesfarmers has long held the belief that to have
a healthy business, you must have strong, vibrant
communities in which to live and work.

Our direct and indirect community               Figure 4: Focus of our direct
partnerships and contributions                  community contributions in 2012 ($m)
were $72.24 million in 2011/12. Our
direct community contributions were
0.9 per cent of earnings before interest
and tax ($3,549 million) and 1.5 per cent
of net profit after tax ($2,126 million).

                   Direct and indirect
                                                    Community                              74.76%
                 community partnerships
                                                    Health                                 12.55%
                   and contributions
                                                    Arts and culture                        4.62%
                                                    Education                               2.80%        The Woorabinda community
To ensure consistent reporting on                   Environment                             2.32%
                                                                                                         With the diversity of our operations,
our Group community contributions,                  Indigenous people1                      1.51%        and the broad network of our
Wesfarmers engages the London                       Other                                   1.16%        locations, we have many touch points
Benchmarking Group (LBG). This allows               Emergency relief                        0.28%        with local communities across both
organisations to define their community                                                                  Australia and New Zealand. As a
contributions according to standard             1 Contributions to Indigenous people in this table       result, while Wesfarmers Limited has
definitions and policies.                         represents only that support that can be separately
                                                                                                         a number of significant partnerships,
                                                  identified. Support in other categories also goes in
LBG undertakes a verification process             part to Indigenous people and organisations.           all of the business units also have
across the Wesfarmers Group excluding                                                                    their own partnerships and initiatives
Home Improvement and Office Supplies                                                                     which have been developed directly
(HIOS) and provides a report, as well as a     The business unit sections in this                        with their local community groups.
verification statement which can be found      report provide more detail on the
                                               major community partnerships that our                     At Wesfarmers Resources, the
on page 67.                                                                                              operations at Curragh have engaged
                                               businesses are involved with. The major
The community contributions from HIOS          partners are a large number of community,                 positively with the Woorabinda
were assured by Net Balance as part            education and sporting groups in local                    community in the Bowen Basin for
of its overall assurance of this report.       communities, organisations supporting                     several years by supporting job
The Assurance Statement on page 70             children, community support and welfare                   expos, training initiatives at the mine
provides specific comment on their             organisations, organisations supporting                   providing career opportunities,
community contributions.                       health outcomes and research and support                  supporting the delivery of drug and
                                               for education and literacy initiatives.                   alcohol education to primary school
Our total direct community contributions
                                                                                                         children through Life Education
this year decreased from 2011, primarily
                                                     ore information on LBG’s
                                                    M                                                    Australia and by visits by the
because fortunately there have not been
                                                    standard definitions and policies                    Queensland Theatre Company,
any large-scale disasters in Australia
                                                    is available at the LBG website                      which has brought the arts and
and New Zealand. In the previous years,
                                                    www.lbg-australia  .com                              skills workshops to the children
Wesfarmers and its businesses made
                                                                                                         of Woorabinda.
significant contributions to emergency               urther information on our community
relief and recovery following major fire,           contributions can be found in the
flood and earthquake disasters.                     Data Bank on page 69.
The large majority of our indirect community
contributions were focused on community
support, but we are unable to assure this
to the level necessary, because most of
the funds we facilitate are spent by our
partner organisations.

                                                                                                            Wesfarmers Sustainability Report 2012 15
Sustainability at Wesfarmers
Engaging our stakeholders (continued)

Wesfarmers Arts
The award-winning Wesfarmers Arts
program continues to provide major
ongoing support to a number of premier
Australian arts companies. With a focus
on increasing the opportunities for
the community to experience quality
art and culture from Australia and the
world, Wesfarmers has been working
in partnership with both national and
Western Australian arts companies since
1985. Our belief is that a vibrant cultural
sector makes a positive contribution to
the lives of all Australians.
Highlights of the Wesfarmers Arts program
included the launch of Wesfarmers Arts as
Indigenous Art Partner with the National
Gallery of Australia, presenting the Gallery’s
national schedule of exhibitions and public      Responsible sourcing                          At 30 June 2012 we had approximately
programs and Indigenous art education to         While the majority of our expenditure on      3,316 direct importers across the Group
communities across Australia. Wesfarmers         products, employee costs and services is      and during the year 1,497 of these
Arts was also announced Principal Partner        in Australia and New Zealand, many of our     (45.1 per cent) had been engaged in
of the West Australian Symphony Orchestra        businesses source products from other         our verification or audit processes.
from 2012 and took on the role as Lead           countries, predominantly Asia and India,      Audit processes were completed either by
Donor in the development of the new State        but also from Europe, Africa and South        our employees or qualified auditors acting
Ballet Centre in Western Australia.              America. In our industrial businesses, this   directly for our businesses. The purpose
                                                 sourcing is mainly complex engineering        of the audits is generally to check
In addition to the arts support program, the
                                                 products, bulk fertilisers and chemicals      compliance and work with suppliers to
company’s nationally recognised Collection
                                                 or other raw materials.                       rectify any issues found. During the year,
of Australian Art is shared with the public
through exhibitions and loans to galleries       Most of our sourcing of products from         11 factories were deregistered due to
across the country. In recent years, in          other countries is undertaken by our retail   poor social compliance or other reasons.
recognition of the company’s increasing          businesses and Wesfarmers Industrial          These instances are reported in the
business presence in New Zealand, the            and Safety. Each of these businesses has      relevant business unit section of this report.
scope of the collection has broadened            detailed policies and codes that govern
to encompass the work of significant             their responsible sourcing activities in
contemporary New Zealand artists.
Wesfarmers also supports the arts through
                                                 other countries, whether the sourcing is
                                                 directly through manufacturers working                                45.1%
                                                 for our businesses, or indirectly through                       Percentage of our direct
various business unit initiatives such as                                                                       importers engaged in our
                                                 other suppliers. These policies and codes
sponsorship of the Queensland Theatre                                                                             assurance processes
                                                 are supported by extensive audit and
Company’s regional program by our
                                                 review systems conducted either by our
Resources division and the acquisition
                                                 businesses themselves, or through relying
of Indigenous art works by the Industrial                                                      In addition, the phosphate rock (a key input
                                                 on mutual accreditation audit systems
and Safety business unit.                                                                      for superphosphate manufacture) sourced
                                                 with other international retailers. Each
                                                 retail business provides some detail on       from a mine in Western Sahara (where
                                                 their approach to responsible sourcing        CSBP buys about three per cent of the
                                                 in their section of this report and our       mine output) is the subject of international
                                                 progress in this area is regularly reported   comment in relation to the status of the
                                                 to the Wesfarmers Board through the           Indigenous Saharawi people of the region.
                                                 Audit Committee.                              We have reported on this in previous
                                                                                               reports and the WesCEF section of this
                                                                                               report again provides an update on
                                                                                               our approach.

16   Wesfarmers Sustainability Report 2012
Sustainability at Wesfarmers
Reconciliation Action Plan
As a large employer, we realise the role we can have in providing genuine,
sustainable employment opportunities for all Australians, including Aboriginal
Australians. We are committed to ensuring that our businesses are places
where Aboriginal and Torres Strait Islander people feel welcome and valued,
as employees, customers, suppliers and citizens.

                                                Outcome of workforce surveys (RAP)

                                                                                     Self-identified Aboriginal employees
                                                                                                                Survey response
                                                Business unit                         Number                            rate (%)                            % of respondents
                                                                                    2011          2012                     2012                                         2012
                                                Coles                                 424           695*                      NA                                          NA
                                                Bunnings                               43           121*                      NA                                          NA
                                                Office Supplies                        36            53                       87                                         1.1
                                                Target                                295           103                       22                                         2.1
                                                Kmart                                 123           105                       54                                          0.7
                                                Insurance                              16            12                       85                                          0.6
                                                Resources                              24            17                       98                                          2.6
                                                WesCEF                                  9             9                       54                                          1.2
                                                Industrial and Safety                  41            47                       83                                          1.9
                                                Corporate Office                        1             2                       80                                          1.1
                                                Group total                         1,012         1,164                       62                                          1.1
                                                *	Survey not conducted in 2012. This data represents 2011 data plus new employees in FY12 who self-identify as Aboriginal.

Our Reconciliation Action Plan (RAP)            Building relationships                                                We appreciate the critical importance of
outlines the measurable actions we are          All of our business units had team                                    strong leadership in relation to our RAP.
committed to across the Wesfarmers              members who participated in the Jawun                                 We have prioritised activities that build
Group, with an overarching goal of having       Secondment Program. This year we                                      the cross-cultural competence of our
a workforce that reflects the diversity of      provided 18 one-month secondees and                                   leaders; to date, senior managers in six
the communities in which we operate.            one three-month secondee. We also                                     business units have completed cultural
                                                sponsored the inaugural Jawun Emerging                                awareness training.
Main highlights                                 Leaders Tour, in which 11 emerging leaders
                                                                                                                      Welcome to Country and Acknowledgement
Creating opportunities                          from four Jawun regions were involved in a
                                                                                                                      of Country protocols were observed at
Over the past year, three business units        specialised regional tour, sharing learnings
                                                                                                                      major events, including the Wesfarmers
and Corporate Office implemented                and receiving leadership training.
                                                                                                                      2011 Annual General Meeting.
Aboriginal employment programs with
                                                Many business units have been focused
customised recruitment, training and                                                                                  Wesfarmers continues to support Aboriginal
                                                on developing relationships with Aboriginal
support mechanisms. An additional four                                                                                communities and cultures through its Arts
                                                community members, organisations
business units supported community-                                                                                   program. During the year, Wesfarmers was
                                                and service providers to support their
driven Aboriginal employment programs.                                                                                announced as the inaugural Indigenous Art
                                                Aboriginal engagement and employment
As a result, our overall Aboriginal employee                                                                          Partner of the National Gallery of Australia,
                                                strategies. For example, WesCEF team
numbers increased from 1,012 to 1,164.                                                                                presenting the Gallery’s national schedule of
                                                members participated in Kwinana,
This is 0.6 per cent of our total employees.                                                                          Aboriginal exhibitions, public programs and
                                                (Western Australia) Aboriginal community
                                                                                                                      education. The Wesfarmers Arts National
                                                events and the Wesfarmers Industrial and
                                                                                                                      Indigenous Arts Fellowship program, also
                         15%                    Safety Indigenous Steering Committee
                                                held a meeting at the National Centre of
                                                                                                                      in association with the National Gallery,
                                                                                                                      entered its third year, with 32 individuals
                  increase in employees         Indigenous Excellence in Redfern, Sydney.
                                                                                                                      from Aboriginal communities across
                     self-identifying as
                                                Within the Wesfarmers Group, we have                                  Australia participating in the Fellowship
                                                an established Wesfarmers Indigenous                                  Leadership program since its inception
                                                Network, a forum where all business units                             in 2010.
                                                can share Aboriginal engagement and
Nearly all of our business units entered into   employment learnings.                                                         ur full report against the actions
purchasing relationships with businesses                                                                                     identified in our 2012 RAP and
certified by the Australian Indigenous          Fostering respect                                                            the 2013 RAP can be found
Minority Supplier Council (AIMSC).              Building respect and understanding                                           under the ‘Reports’ section
                                                of Aboriginal people and their cultures                                      at www.wesfarmers  .com.au
                                                within our businesses is an important
                                                aspect of our RAP.

                                                                                                                            Wesfarmers Sustainability Report 2012 17
Looking after our environment
     A healthy environment is a fundamental right and expectation of all communities.
     With operations that include retail outlets, coalmines, chemical, energy and
     fertiliser manufacturing, and insurance, Wesfarmers’ activities are complex and
     widespread. We have a responsibility to all of our stakeholders to manage our
     operations in such a way that it reduces our environmental footprint.

18   Wesfarmers Sustainability Report 2012
Sustainability at Wesfarmers

 Looking after                                   What does our greenhouse emission reporting cover?
                                                 Reporting greenhouse emissions across many different business activities, under
 our environment                                 a variety of legal and voluntary reporting mechanisms, has the potential to create
                                                 confusion in understanding our emissions. We are continually trying to improve both
                                                 the methodology we use to calculate our emissions and the communication of that
                                                 information, while maintaining the accuracy required for our corporate governance and
                                                 the requirements of the external assurance and auditing we undertake. The basis of our
                                                 greenhouse emission and energy use data in this report is the National Greenhouse
                                                 and Energy Reporting Act 2007 (NGER Act) in Australia (where more than 99 per cent
                                                 of our emissions occur). The NGER Act covers only Scope 1 and 2 emissions, but does
                                                 not include some significant emission sources (such as the sodium cyanide business at
                                                 our Kwinana operations). The data under the NGER Act is also bound by the concept
                                                 of operational control which means, for example, that emissions from a business
                                                 part-owned by Wesfarmers but operated by a third party is not included (an example is
                                                 Air Liquide WA within WesCEF which is reported by Air Liquide Australia). However, to
                                                 assist in understanding our total emissions profile we include various Scope 3 emissions
Minimising our environmental                     in this report (including electricity and gas transmission; waste disposal and waste water
footprint                                        treatment; air travel emissions; an estimate of transport emissions in our supply chains;
Looking for innovative solutions with good       and the Scope 3 emissions associated with liquid and gaseous fuel use). The diagram
commercial and environmental outcomes            below provides a summary of these emissions and how they are additional to our NGER
is critical to the sustainable success                  Greenhouse
                                                 Act reports.           gassome
                                                               As a result,  emissions
                                                                                   of our data is not directly comparable year on year, but
of our businesses. Taking a long-term            where possible this is explained.
approach to managing our businesses
is not only good for the environment,
but it contributes to the resilience and         Greenhouse gas emissions                        NGER Act1
sustainability of our businesses as well.                                                    Scope 1 & 2 emissions
With the diversity of our Group, each of                                                            tonnes CO2e
our businesses face different challenges
in their management of the environment,                                                                68.4%
which in turn means our responses
vary widely.
This year for the first time, we are reporting            Transport emissions                                                      Non-NGER Act2
                                                            in supply chain5                   Wesfarmers Group                  Scope 1 & 2 emissions
both absolute and relative metrics for our
greenhouse gas emissions, water use                             650,925                              total                                  286,214
and energy use. Using relative measures
                                                               tonnes CO2e
                                                                                                 6,818,568                              tonnes CO2e

provides a more accurate comparative                               9.6%                            tonnes CO2e                               4.2%
measure across a number of years,
                                                                                               FY11 = 7,698,837
despite potential changes in business
operations, for both our company and in                                                        11.4% reduction
comparison to other similar organisations.
During the year, Wesfarmers sold two
subsidiaries: Wesfarmers Premier Coal                                      Equity share
                                                                         of joint venture/                                 Scope 3
Limited (Premier Coal) in December 2011;                              investment emissions4                               emissions3
and Energy Generation Pty Ltd (enGen) in                                      347,018                                     868,215
August 2011. Data covering the ownership                                      tonnes CO2e                                 tonnes CO2e
period is included in the Data Bank on
                                                                                  5.1%                                       12.7%
pages 68 and 69. However, it is not
included throughout the rest of the report.           1   Audited by Ernst & Young (FY11: 5,044,231).
                                                      2   Assured by Net Balance (FY11: 564,978).
                                                      3   Assured by Net Balance (FY11: 740,082).
                                                      4   Provided by entities from their FY12 NGER Act records (FY11: 589,546).
                                                      5   Estimate based on data and assumptions, assured by Net Balance (FY11: 760,000).

                                                                                                                   Wesfarmers Sustainability Report 2012 19
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