## Working together for a sustainable future 

175 years into our journey, AGL is committed to building a sustainable future for all of our stakeholders – our customers, ouremployees, our investors, the community and the environment. 

## Sustainability strategy 

The material risks that influence AGL’s business priorities include: 

> Economic performance  – delivering AGL’s integrated strategy and managing longer term challenges that may affect sustainable returns to investors. 

> Customers – delivering excellent service and value to customers and providing access to energy for vulnerable customers. 

> Community  – engaging with local communities about our development activities, and responding to broader community needs. 

> People and safety – providing a safe workplace environment and developing the skills and talents of employees to deliver outstanding business results. 

> Climate change  – structuring AGL’s portfolio of assets in readiness for a carbon constrained future. 

> Environment  – managing the environmental impacts of supplying energy to customers, throughout the energy supply chain. 

## Sustainability reporting 

AGL reports on sustainability performance to give stakeholders an understanding of the social, environmental and economic challenges facing it and the energy industry, and the steps that AGL is taking to protect and grow the long-term value of its business. AGL has published an annual Sustainability Performance Report since 2004 to communicate sustainability performance in the areas of customers, community, people, economic, climate change and environment. 

AGL has established 12 strategic indicators of success to track our performance over time, together with visions to guide our actions in the longer term. Performance in each of these areas is monitored on a quarterly basis by the Board’s Safety, Sustainability and Corporate Responsibility Committee. 

The following pages provide an account of AGL’s performance against each of the 12 strategic sustainability targets. They also set new targets for FY2013. This is the third year this framework has been used to measure our performance. Further sustainability performance data will be available in the 2012 Sustainability Performance Report, which will be published online around November 2012. 

## Sustainability performance data 

This report covers the activities and facilities over which AGL had operational control for all, or part of, the financial year ended 30 June 2012, other than Loy Yang which was only acquired on 29 June 2012. Data relates to FY2012 unless otherwise stated. 

Net Balance Management Group (Net Balance) has provided assurance over the 12 strategic sustainability indicators in this report using the AA1000 Assurance Standard (2008). Net Balance will be carrying out independent assurance over the 2012 Sustainability Performance Report and conducting a third-party application level check against the Global Reporting Initiative’s (GRI) G3 Sustainability Reporting Guidelines. 

## Loy Yang acquisition 

On 29 June 2012, AGL completed its acquisition of the Loy Yang A power station and adjacent coal mine in Victoria’s LaTrobe Valley. 

Loy Yang will increase AGL’s operational greenhouse gas emissions footprint from around 1.5 million tonnes per annum to around 20 million tonnes per annum. The increase in AGL’s operational emissions will not result in an increase in total emissions from the energy sector. 

AGL’s investment strategy will not change as a result of the acquisition of Loy Yang. Our goal is to be the largest renewable energy company in Australia. Cashflows generated by Loy Yang will fund our pipeline of renewable energy and low emission projects. 

## Energy for Life 

AGL’s corporate citizenship program is called Energy for Life. We give our employees opportunities to make charitable donations through payroll giving (Employee Giving), or to take a day of paid volunteer leave to assist a community organisation (Employee Volunteering). 

In FY2012, an internal review of Energy for Life resulted in the introduction of a range of new charity partners and the establishment of a more strategic framework for AGL’s community contributions. 

Over the next 6 years, AGL will invest more than $3 million in a number of community partnerships working to support families experiencing or at risk of energy- related financial hardship and to promote household safety. We aim to support households experiencing hardship through prevention and education; intervention and capacity building; and crisis support. 

