Triple Bottom Line Reporting in Australia.pdf

TTrriippllee BBoottttoomm LLiinneeRReeppoorrttiinngg iinn AAuussttrraalliiaa

A Guide to Reporting Against Environmental Indicators

June 2003

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A Guide to Reporting Against Environmental Indicators

June 2003

TTrriippllee BBoottttoomm LLiinneeRReeppoorrttiinngg iinn AAuussttrraalliiaa

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© Commonwealth of Australia 2003

ISBN 0 642 54937 0

Information presented in this document may be reproduced in whole or in part for study or training purposes or to provide widerdissemination for public response, subject to inclusion of acknowledgment of the source and provided no commercial usage or saleof the material occurs. Reproduction for purposes other than those given above requires written permission from EnvironmentAustralia. Requests for permission should be addressed to:

First Assistant Secretary Policy Co-Ordination and Environment Protection DivisionEnvironment Australia GPO Box 787 Canberra ACT 2601

Disclaimer

While reasonable efforts have been made to ensure the contents of this Guide are factually correct, the Commonwealth does notaccept responsibility for the accuracy or completeness of the contents, and shall not be liable for any loss or damage that may beoccasioned directly or indirectly through the use of, or reliance on, the contents of this Guide.

Reference to any company, product or service in this booklet should not be taken as Commonwealth endorsement of that company,product or service.

Designed by Racheal Brühn Design Edited by Agile CommunicationsPrinted by Paragon Printers

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ForewordThere is growing recognition that business has a crucial role to playin helping Australia to become more sustainable. As a result manyAustralian organisations are responding by reducing theirenvironmental impacts and risks, for example by decreasing wateruse and minimising greenhouse emissions. In addition, a widerange of stakeholders, including the finance sector, are beginningto consider corporate environmental performance in theirpurchasing and investment decisions, and thus seek robustinformation on an organisation’s environmental performance.

A number of leading organisations, both internationally and inAustralia, are responding to these opportunities and challenges bymeasuring, managing and disclosing their environmentalperformance through the publication of public environmental ortriple bottom line reports. These companies are reaping significantbenefits such as an enhanced reputation, attracting and retainingstaff, and a competitive advantage with customers and suppliers,which of course all add to their financial bottom line.

For the last five years the Howard Government, through Environment Australia, has been at the forefrontof promoting public environmental and triple bottom line reporting in Australia. With the provision of keypublications, such as A Framework for Public Environmental Reporting – An Australian Approach, andworking cooperatively with industry, we have seen a steady increase in the number of organisationspublishing environmental reports, from just one in 1993 to approximately 100 in 2003.

During this time there have also been a number of international guides released that have contributed tothe increased reporting in Australia. Of these, the Global Reporting Initiative’s Sustainability ReportingGuidelines enjoys wide industry and government support.

Triple Bottom Line Reporting in Australia – A Guide to Reporting Against Environmental Indicators buildson these existing guides and complements the Global Reporting Initiative’s work by providing Australianorganisations with tangible and easy to use methodologies for measuring performance against keyenvironmental indicators. Through this approach, this guide will assist organisations seeking to improve andcommunicate their environmental performance.

With the release of this guide, the Howard Government continues to contribute, at a national level, to thequality and quantity of public environmental and triple bottom line reporting in Australia.

I commend this guide to you.

Dr David Kemp MPMinister for the Environment and Heritage

iiiiiiTriple Bottom Line Reporting in Australia A Guide to Reporting Against Environmental Indicators

Foreword

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Table of Contents

Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii

Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv

Acknowledgements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v

Part A – Why Report on Environmental Performance

Chapter 1 About this Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Purpose of this Guide. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Who is this Guide for? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Relationship with Other Reporting Frameworks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

How to Use this Guide. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Chapter 2 Benefits of TBL Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Chapter 3 Environmental Indicators, Methodologies and Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Boundary Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Identifying Stakeholders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Identifying and Selecting Environmental Indicators. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Methodologies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Measuring and Presenting Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Part B – Detailed Methodologies for Environmental Management and Performance

Chapter 4 Environmental Management Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Chapter 5 Environmental Performance Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Greenhouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Water. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Waste – Solid and Hazardous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Emissions to Air, Land and Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

Biodiversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Ozone Depleting Substances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

Products and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Appendix A – Linking this Guide to the Global Reporting Initiative (GRI 2002) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

Appendix B – Basic Information and Conversion Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

Appendix C – Further Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

Appendix D – Participating Organisations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

Appendix E – Evolution of Triple Bottom Line Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

Appendix F – Feedback Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

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Table of Contents

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AcknowledgementsTriple Bottom Line Reporting in Australia – A Guide to Reporting Against Environmental Indicators wasprepared for Environment Australia by Maunsell Australia Pty Ltd.

In developing this Guide a number of key resources were utilised, in particular:

Environment Australia’s A Framework for Public Environmental Reporting. An Australian Approach.

The Australian Greenhouse Office’s Greenhouse Challenge Factors and Methodologies Workbooks.

The National Pollutant Inventory’s Industry Handbooks.

The Global Reporting Initiative’s 2002 Sustainability Reporting Guidelines and reporting protocols.

The World Business Council for Sustainable Development’s Measuring Eco-Efficiency. A Guide toReporting Company Performance.

The United Kingdom Department of Environment, Food and Rural Affairs’ guides: EnvironmentalReporting Guidelines for Company Reporting on Water and Environmental Reporting Guidelinesfor Company Reporting on Waste.

Environment Australia gratefully acknowledge Bendigo Bank and Murray Goulburn Co-OperativeCompany Limited, who road tested and provided valuable comments on the suitability of the Guide’sindicators and methodologies.

Environment Australia would also like to thank those organisations and individuals that contributedthrough the stakeholder workshops and/or by providing comments on the exposure draft. Appendix Dcontains a list of contributors.

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Acknowledgements

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11Triple Bottom Line Reporting in Australia A Guide to Reporting Against Environmental Indicators

Part A

Why Report on Environmental Performance

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Chapter


1About this Guide

Increasingly, organisations around the world are recognising the value of demonstrating transparency andaccountability beyond the traditional domain of financial performance.

This trend has come about through increased public expectations for organisations to take responsibilityfor their non-financial impacts, including impacts on community and the environment.

In response, business, government, academics and Non Government Organisations (NGOs) have begundeveloping frameworks addressing these concerns.

These frameworks aim to extend voluntary disclosure to include impacts on natural and human capital, aswell as financial capital.

Triple Bottom Line (TBL) reporting is becoming an accepted approach for organisations to demonstratethey have strategies for sustainable growth.

It focuses on decision-making and reporting which explicitly considers an organisation’s economic,environmental and social performance. As such, TBL can be seen as both as an internal management tool,and an external reporting framework.

This Guide is one in a series of three produced by the Commonwealth Government to assist with TBLreporting. Guides providing information on social1 and economic2 indicators are also available.

Purpose of this Guide

This Guide is intended to support voluntary reporting on environmental performance by organisations inAustralia. It does not represent a step towards regulation of TBL reporting in Australia. It aims to provide:

Guidance on selecting suitable environmental indicators.

Simple methodologies, which where possible incorporate existing Australian initiatives and enableorganisations to determine performance in relation to selected indicators, and are consistent with theGlobal Reporting Initiative’s environmental indicators.

Links to other resources to assist with preparing TBL reports.

Who is this Guide for?

The target audiences for this Guide are managers in business, community and government wishing toimprove the environmental performance of their organisations. It is generally applicable across all industrysectors, and particularly assists organisations wishing to introduce TBL reporting for the first time.However, it also includes useful information for experienced reporters, and organisations which areintroducing stand-alone environmental performance reports.

This Guide recognises organisations will have different priorities and methods for environmental reporting,and therefore presents a range of indicators and information to accommodate a broad spectrum of needs.

1 The social indicators guide is expected to be available in August 2003.

2 The economic indicators guide is expected to be available in 2004.



Relationship with Other Reporting Frameworks

The Global Reporting Initiative

This Guide is aligned to the Global Reporting Initiative (GRI), which provides social, environmental andeconomic indicators at an international level. The GRI has emerged as the internationally acceptedframework for sustainability reporting and is widely supported by Australian organisations, making itsuitable as a basis for this Guide.

Founded by the Coalition for Environmentally Responsible Economies (CERES), the GRI is an officialcollaborating centre of the United Nations Environment Programme (UNEP), which, since its firstpublication in 2000, has focused on assisting reporting organisations and their stakeholders in articulatingtheir overall contribution to sustainability through the Sustainability Reporting Guidelines. These guidelineswere updated and launched at the September 2002 World Summit on Sustainable Development.Developed through a multi-stakeholder process, they define an international voluntary reportingframework for TBL performance.

Other Guidelines

In addition to the GRI, a wide range of initiatives and structures exist within Australia to assist organisationson disclosing environmental performance to stakeholders.

This Guide aligns with these initiatives, which cover both quantitative and qualitative reports and includes:

Voluntary public environmental reporting initiatives (both national and international).

Mandatory environmental reporting requirements (for example the National Pollutant Inventory (NPI)and State licensing regimes).

Australian and international Accounting Standards.

Corporate governance initiatives.

This Guide is designed to complement the GRI and initiatives that assist Australian organisations to reportnon-financial performance. Complementary projects in train or recently completed include:

Environment Australia’s A Framework for Public Environmental Reporting, an Australian Approach – a step-by-step guide to reporting specifically tailored to meet the needs of Australian organisations,which is available online from www.ea.gov.au/industry/finance/per.

The Group of 100’s Sustainability: A Guide to Triple Bottom Line Reporting – aimed at providing seniorexecutives with a high level understanding of TBL reporting. It can be ordered online fromwww.group100.com.au.

A statement from Commonwealth Government, business and community representatives on the valueof Corporate Social Responsibility and TBL practices for Australia. This statement is an initiative of thePrime Minister’s Community Business Partnership and is expected to be available in August 2003 andwill be available online from www.partnership.zip.gov.au.

A Guide to Social Indicators and Methodologies, prepared by the Commonwealth Department ofFamily and Community Services and expected to be released in August 2003 and will be availableonline from www.facs.gov.au.

A Guide to Economic Indicators and Methodologies, prepared by the Commonwealth Department ofFamily and Community Services and expected to be released in 2004 and will be available online fromwww.facs.gov.au.


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55

How to Use this Guide

The adoption of TBL reporting will vary according to each organisation, based on individual needs andexpertise. Adoption will also be influenced by an organisation’s understanding of its social, environmentaland economic impacts. As such, many organisations commit to TBL reporting on an incremental basis andprogressively report on their impacts in these areas.

Appendix A shows the links between the environmental performance indicators contained in this Guideand the corresponding GRI indicators. Some minor deviations from the GRI have been adopted to addressAustralian conditions, or in response to stakeholder feedback.

Globally, much debate remains on how to actually measure and report TBL performance. This has beeninfluenced by differing interpretations of terms, varying needs, cultural impacts and organisationalimperatives. While the GRI provides an internationally accepted guide, it does not yet providemethodologies for many of its indicators, nor does it take into consideration specific Australian conditions,particularly in relation to established indicators and methodologies.

This Guide aims to assist Australian organisations by providing appropriate background, relevantinformation and methodologies for the GRI’s set of environmental indicators.

This structure of this Guide is:

Part A – Why Report on Environmental Performance

Chapter 1 About this Guide

Chapter 2 Benefits of TBL Reporting

Chapter 3 Environmental Indicators, Methodologies and Data

Part B – Detailed Methodologies for Environmental Management and Performance

Chapter 4 Environmental Management Indicators

Chapter 5 Environmental Performance Indicators

Appendices

Appendix A – Linking this Guide to the Global Reporting Initiative (GRI 2002)

Appendix B – Basic Information and Conversion Factors

Appendix C – Further Information

Appendix D – Participating Organisations

Appendix E – Evolution of Triple Bottom Line Reporting

Appendix F – Feedback Form

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Chapter2


Benefits of TBL ReportingThis Section outlines some of the benefits TBL reporting can achieve. It covers all three areas of the TBL—social, environmental and economic—rather than just environmental reporting. This has been done asthere are strong synergies and benefits in undertaking an integrated approach.

Rationale

Reporting on financial performance may be considered as being limited in accurately representing marketperformance. Consequently, there is a growing need for further balanced and enhanced non-financialdisclosure.

In recent years, TBL-based reporting has become a vehicle for such disclosure, based on the premise thatby monitoring and reporting social, economic and environmental performance, organisations can betterprepare for future challenges and opportunities, including those traditionally considered intangible, such asreputation.

For TBL reporting to be of real value to an organisation, it must be integrated into day-to-day businessoperations and be appropriately resourced.

Organisations which have successfully driven change as a result of TBL reporting have identified thefollowing benefits:

Embedding sound corporate governance and ethics systems throughout all levels of an organisation.Currently many corporate governance initiatives are focused at the Board level. TBL helps ensure avalues-driven culture is integrated at all levels.

Improved management of risk through enhanced management systems and performance monitoring.This may also lead to more robust resource allocation decisions and business planning, as risks arebetter understood.

Formalising and enhancing communication with key stakeholders such as the finance sector, suppliers,community and customers. This allows an organisation to have a more proactive approach toaddressing future needs and concerns.

Attracting and retaining competent staff by demonstrating an organisation is focused on values and itslong-term existence.

Ability to benchmark performance both within industries and across industries. This may lead to acompetitive advantage with customers and suppliers, as well as enhanced access to capital as thefinance sector continues to consider non-financial performance within credit and investment decisions.

There is growing evidence to suggest that over time these benefits do contribute to the increased marketvalue of an organisation.


Triple Bottom Line Reporting in Australia A Guide to Reporting Against Environmental Indicators 77

International Trends in Reporting

The number of organisations worldwide producing reports containing environmental performanceinformation continues to grow, particularly amongst larger organisations. The recent KPMG surveyfound that 45 percent of the world’s top 250 companies now publish a separate corporate reportwith details of environmental and/or social performance, up from 35 percent in 1999.

The survey found the incidence of reporting varies markedly across the world. Of the top 100companies in each of 19 countries surveyed, Japan has the highest percentage of companiesproducing corporate environment or social reports (72 percent), followed by the UK (49 percent),USA (36 percent) and the Netherlands (35 percent), with Australia ranked 12th on 14 percent.Whilst direct comparison is difficult due to the different make up of the various countries top 100companies, this data suggests that Australian companies may be missing out on the significantorganisational gains potentially achieved through reporting.

The report concludes that ‘good environmental stewardship and social responsibility are clearexamples of good management and there is no disputing the clear link between good managementand business performance.’

Source: KPMG Global Sustainability Services 2002. KPMG International of Corporate Sustainability Reporting 2002.


Chapter3


Environmental Indicators,Methodologies and Data

Effective TBL reports contain environmental performance information that is relevant, meaningful andaccurate. They should also contain environmental performance information that is relevant from aninvestor’s perspective. Accordingly, this Chapter has the following sections:

Boundary Issues

Identifying Stakeholders

Identifying and Selecting Environmental Indicators

Methodologies

Measuring and Presenting Data

Boundary Issues

Defining boundaries for the purposes of environmental performance measurement is an important partof the TBL reporting process. It is typical to define the scope of TBL practice as including operations overwhich an organisation has control or influence. Whilst this is straightforward in many cases, it is less clearfor organisations which outsource operations, use contractors extensively, have joint ventures, ornumerous tenants.

Although there is no single approach for determining reporting boundaries, it should be noted that toremain credible, it may be necessary to consult stakeholders to assess how they perceive the reportingboundaries of an organisation.

For example, manufacturing businesses must decide whether to address impacts upstream or downstreamfrom the factory gate in their TBL reports. A strong case could be made for including product distributionactivities on the basis they may cause significant environmental impacts.

In considering where to set reporting boundaries, many organisations report on the basis of managementcontrol. For example, an organisation might choose to report 100 percent of the environmentalperformance of operations it exerts direct control over (even though it may not be the only owner), andchoose not to report environmental performance of joint ventures where it is not the operator.Alternatively, an organisation may choose to report its environmental performance based simply on itsequity interest in joint ventures, irrespective of whether it is the operator or not.

It is critical the boundaries adopted for purposes of reporting are clearly defined and obvious to readers ofreports. Careful boundary definition also ensures a report can be verified and meaningful comparisons canbe made between information from different reporting periods.

Organisations undertaking environmental reporting for the first time often scope their initial reportnarrowly, with the aim of broadening reporting boundaries over time as experience develops.


Triple Bottom Line Reporting in Australia A Guide to Reporting Against Environmental Indicators 99

Identifying Stakeholders

Prior to selecting indicators, it is essential an organisation considers who they are preparing the report for,that is, who are their key stakeholders? In identifying stakeholders (remember to include internal players)an organisation should consider:

Who is impacted or interested in the organisations’ activities?

Of those impacted or interested by the organisation’s activities, whose opinion is a priority?

Who currently receives reports or information on activities of interest?

Whose information needs are not being met by current reporting activities?

There are many approaches to stakeholder engagement and consultation. Although these topics arebeyond the scope of this Guide, further references and discussion can be found at:

The Global Reporting Initiative’s 2002 Sustainability Reporting Guidelines, available online fromwww.globalreporting.org.

Environment Australia’s A Framework for Public Environmental Reporting. An Australian Approach,available online from www.ea.gov.au/industry/finance/per.

The Institute of Social and Ethical AccountAbility’s AA1000 Assurance Standard, available atwww.accountability.org.uk.

Identifying and Selecting Environmental Indicators

Indicators are critical to the success of environmental monitoring and reporting as they provide the basisfor objective performance assessment. This Guide provides a means to identify trends, and to makecomparisons between operational sites and between organisations.

Indicators in this Guide have been broadly classified as environmental management indicators andenvironmental performance indicators. Management indicators provide information on the adequacyof management processes. Environmental performance indicators address process inputs and outputs, anddescribe environmental quality.

It is desirable to include a blend of management indicators and environmental performance indicators in a TBL report. This allows the practical environmental performance to be assessed in conjunction withinformation on management processes.

Environmental Management Indicators

Management indicators are particularly valuable as they are forward-looking or ‘lead’ indicators that canprovide a basis to forecast future performance. For example, an organisation that has a process to identifyenvironmental risk issues is likely to establish control measures addressing significant matters.

Chapter Four of this Guide presents five management indicators. These indicators broadly correspond tothe report content recommendations outlined in the GRI’s 2002 Sustainability Reporting Guidelines. For afull list of these indicators, see page 14.


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Environmental Performance Indicators

The GRI environmental performance indicator set has been used as the starting point for theenvironmental performance indicators contained in this Guide. The GRI indicators are underpinned bya substantial body of work in environmental measurement, and have widespread industry support.

Strong support for the GRI framework was reflected by Australian stakeholders during the developmentof this Guide. In some cases, GRI indicators have been modified to incorporate features of Australianlegislation, or to reduce their complexity. Appendix A presents a Table showing correspondence betweenenvironmental performance indicators in this Guide and those proposed in the GRI Guidelines.

This Guide groups environmental performance indicators into 11 separate environmental issues categories.For a full list of these categories, see Chapter Five of this Guide, page 20. These 11 categories areconsidered relevant to a wide range of stakeholders and each category may indicate material risks oropportunities to a company’s shareholder value.

Within the various environmental issue categories, the indicators are classified as either core or additional.

Core indicators are the most important measures of performance.

Additional indicators include measures that can provide a more complete picture of environmentalperformance in relation to specific issues that require greater levels of information. The decision to reportusing these additional indicators depends on an organisation’s individual circumstances.

Whilst environmental issues of importance vary between organisations depending on the nature ofactivities, it is recommended that first-time reporters begin by working with environmental managementand environmental performance indicators relevant to their particular organisation.

To ensure that indicators selected are appropriate, organisations should review the categories in the lightof known environmental risks and knowledge of stakeholder needs.

Where a report does not include information on a core indicator, either due to a lack of available data orbecause the indicator has little relevance to the organisation, it is recommended a clear rationale explainingwhy it is omitted is provided to readers.

Selecting Environmental Indicators

Reporting against a large number of indicators does not necessarily enhance or improve overall TBLperformance. A more suitable approach is to report on a small number of relevant indicators anddemonstrate performance improvements.

An organisation may also want to ensure it is not just collecting data for the sake of being able to collectit. To check the suitability of indicators, consider asking internal and external stakeholders the following:

What is of key importance to stakeholders?

Which environmental issues will impact how we do business tomorrow?

Which risks are relevant to how an organisation operates within the present, as well as the future context?

What can we collect data on, and what comparative data is available?

Note that the importance and materiality of indicators may change over time and hence managementneed to monitor emerging trends and potential reporting needs. For further discussion on materiality andthe process for identifying specific risks, consider reviewing the report compiled by the Association of

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British Insurers (ABI), Investing in Social Responsibility – Risks and Opportunities, which is available onlineat www.abi.org.uk/Display/File/85/CSR_FullReport.pdf.

Indicators can reflect past performance, or predict future performance. Ideally, TBL reports will contain a combination of both. This enables report users to understand past performance and to broadly assessthe future outlook.

Methodologies

This Guide contains simple methodologies to enable an organisation to measure its performance in relationto the various environmental performance indicators. The methodologies are largely based on existingnational and international methods, protocols, and guidelines for environmental performancemeasurement.

Wherever possible, methodologies developed or widely used in Australia have been adopted. Somemethodologies have been slightly modified to reduce their complexity and increase their accessibility.

To minimise duplication of effort, current environmental reporting activities of Australian organisationshave been recognised. These include voluntary reporting programs, such as the Greenhouse Challenge,and mandatory reporting requirements under environmental laws. For example the methodology forcalculating emissions to air, water and land is based on the framework for the National Pollutant Inventory.

Whilst it is recommended that organisations use the methodologies provided in this Guide, it is recognisedthat in some cases, alternative methodologies exist for calculating environmental performance.Methodologies used should be carefully documented to ensure measurements are repeatable and able tobe verified, regardless of whether they are sourced from this Guide or from an alternative source.

Measuring and Presenting Data

Key points to consider when measuring and presenting data include:

Period Covered

Data Measurement and Verification

Data Presentation.

Period Covered

Reporters should clearly specify in a report the period of data they are reporting on. At presentorganisations report across varying time periods, ranging from calendar years to annual financial reportingperiods.

Data for the full period should be included and where omitted should be specifically identified. Should anincident or event occur post-reporting period, it may warrant disclosure in the report to ensure thatperformance is accurately represented. This may include events such as an accident, merger or acquisition.

Data Measurement and Verification

With the majority of environmental performance indicators there are definitional questions that must beaddressed to ensure that measurement is repeatable and consistent. This Guide defines key termsassociated with each indicator to provide clarity for reporters. These are only advisory definitions. Thereporter may use an alternative definition if required, but should clearly disclose this variation to readers.



Organisations may not have access to all of the information required to precisely calculate performance inrelation to relevant indicators. Assumptions and estimates may be required, based on the best availableinformation. In these cases, assumptions and estimates should be noted in the report.

Verification

Independent verification of TBL reports is increasingly sought by organisations to provide assurance tostakeholders. Verification of environmental reports can be conducted by a variety of organisations,ranging from accounting firms and major engineering consultancies, through to smaller social andenvironmental consultancies.

The level of verification sought by an organisation will influence the systems used to collect and reportdata. It is therefore important to ensure the data systems used are suitable for the level of verification beingsought.

Currently, no generally accepted standards exist relating to verification of TBL reports, and details on thevarious methods available are outside the scope of this Guide. Detailed information on verification isincluded in the following documents:

The Global Reporting Initiative’s 2002 Sustainability Reporting Guidelines, available online fromwww.globalreporting.org.

Environment Australia’s A Framework for Public Environmental Reporting. An Australian Approach,available online from www.ea.gov.au/industry/finance/per.

The Institute of Social and Ethical AccountAbility’s AA1000 Assurance Standard, available atwww.accountability.org.uk.

Data Presentation

There are many ways to present environmental data. Absolute data is raw performance data collected inabsolute figures in a variety of different units. It is important that data is presented in TBL reports inabsolute terms, as this provides the reader with an understanding of the overall scale of an organisation’senvironmental impacts and contributions in a regional or global context.

Often data becomes more meaningful when related to other data. In particular, it is useful to present datain a normalised form.

Normalised data, also termed eco-efficiency or intensity ratios, expresses some measure of output(product or service value) in relation to a measure of environmental impact, for example, kilograms ofproduct produced per litre of water used. Data presented in this way brings together the dimensions ofproduct or service value, and environmental impact.

Normalised data allows an organisation to show it is using resources more efficiently, or reducing pollutionper unit of production. Where the range of product and services delivered by an organisation varies fromyear to year, these variations will need to be taken into account when presenting data in a normalised form.

Additional information on normalised data can be found in the World Business Council for SustainableDevelopment’s guide, Measuring eco-efficiency. A Guide to Reporting Company Performance, availableonline at www.wbcsd.org.

It is also recommended that where possible, an organisation shows trends by reporting previous data anddocument targets against relevant indicators for the next reporting period.



Part B

Detailed Methodologies for Environmental Management and Performance

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Chapter4Environmental Management Indicators

Introduction

Environmental Management indicators help an organisation provide information on how it manages anyenvironmental impacts of its operations, products and services. They indicate its capacity to monitor andcontrol material environmental risks, and to capitalise on market opportunities arising from effectiveenvironmental management.

Environmental Management indicators are particularly valuable as they are forward-looking or ‘lead’indicators that can provide a basis for future performance forecasts. For example, an organisation that setsenvironmental objectives and targets is likely to show improvement in relation to environmentalperformance indicators (for example, energy, water and waste), as the management process is evidence ofplanning and resource allocation.

The indicators presented below broadly correspond to the report content recommendations outlined inthe Governance Structure and Management Systems in Part C, Section Three of the GRI’s 2002Sustainability Reporting Guidelines.

Indicators


Indicator Description Type GRI Reference Page

Environmental Management 1 Environmental Management Core GRI Guidelines 2002, Part C 15

System (EMS) Conformance Section 3 –Governance Structure

and Management Systems

Environmental Management 2 Environmental performance Core GRI Guidelines 2002, Part C 16

improvement process Section 3 –Governance Structure


Environmental Management 3 Integration of environment Core GRI Guidelines 2002, Part C 17

with other business Section 3 –Governance Structure

management systems and Management Systems

Environmental Management 4 Due diligence processes Additional GRI Guidelines 2002, Part C 18

Section 3 –Governance Structure


Environmental Management 5 Environmental liabilities Additional GRI Guidelines 2002, Part C 19

Section 3 –Governance Structure



Environmental Management Indicator 1:Environmental Management System (EMS)Conformance

Background and Rationale

This indicator provides information on how an organisation can report any certifications or compliance ithas for Environmental Management Systems.

Certification provides external stakeholders with a high level of assurance that an organisation’sEnvironmental Management Systems are robust and functional. Organisations with certified systemsshould provide details of the business units or elements of their operations covered by certification.

The Environmental Management System Standard ISO 14001 is widely recognised as an effectiveframework for environmental management. Whilst many organisations are aligning their environmentalmanagement systems with ISO 14001, not all are seeking to have systems certified.

Organisations should report details of the business units or sites covered by management systemsconsistent with ISO 14001. Claims regarding management system alignment should only be made wherethey can be verified with documentation.

Organisations may subscribe to industry environmental codes such as the Mineral Council’s Code ofEnvironmental Management, the Electricity Supply Association of Australia’s Code of EnvironmentalPractice and the Chemical Industry’s Responsible Care Program.

Organisations should report on an organisation-specific basis outlining the code(s) to which they subscribeand their current compliance status, using the methodologies developed or endorsed by the respectiveindustry associations.

Possible Information to Report

Status of environmental management system by business unit or operational site, for both systems thatare in compliance and certified.

Details of environmental management system audit programs.

Details of programs for environmental management system development and implementation.

Details of conformance with relevant industry environmental codes or standards.


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This indicator provides information on how an organisation can identify and assess initiatives it has toenhance its environmental performance, and demonstrate its commitment to continual improvement.

TBL reports should describe internal processes for identifying and assessing environmental risks toprovide confidence to stakeholders that significant matters have been identified, and are beingappropriately managed.

Objectives and targets in relation to priority environmental issues should also be presented in TBL reports.The existence of objectives and targets indicate an organisation’s commitment to performanceimprovement. They also provide a focus for the allocation of financial and human resources, and provideevidence that environmental management planning has been completed.

An organisation’s willingness to report progress in relation to objectives and targets illustrates an ongoingcommitment to continual improvement. It also demonstrates accountability for environmentalperformance and a commitment to managing environmental risks and meeting legal and other obligations.


Details of processes for identifying and assessing environmental risks and opportunities.

Objectives and targets relating to priority environmental issues.

Progress relating to commitments for action on environmental issues outlined in previous reportsor statements.


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Environmental Management Indicator 3:Integration of Environment with otherBusiness Management Systems


Increasingly, organisations are seeing the benefits of a cross-functional approach to management.Integrating environmental management systems with core business systems ensures decision-making isinformed by relevant environmental information.

The degree to which an organisation has successfully embedded environmental management within itscorporate structure and day-to-day operations has a bearing on its capacity to identify and address risksand opportunities associated with environmental issues.


Information on organisational and Board structures showing that environmental managementis approached as a mainstream business issue.

Details of how environmental considerations are built into core business processes, such as productand service design, procurement, and human resource management.


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Environmental Management Indicator 4: Due Diligence Processes


Providing information on due diligence processes indicates an organisation’s capacity to address businessrisk issues associated with mergers, acquisitions, divestments and closures. In particular, these processes willinclude environmental factors associated with these activities that may have a significant financial impact.

Whilst recognising due diligence activities by their nature involve legally and/or commercially sensitiveinformation, organisations involved in significant mergers, acquisitions, divestments and closures shouldconsider disclosing summary information regarding the scope of the due diligence reviews undertaken inrelation to such transactions.


Details of key mergers, acquisitions and divestments during the reporting period, along with briefdescriptions of the due diligence processes undertaken for each.

Summaries of material environmental risk issues arising from mergers and acquisitions.


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Environmental Management Indicator 5: Environmental Liabilities


Environmental liabilities are important indicators for stakeholders, particularly analysts and investorstrying to determine current and future obligations which may impact upon business sustainability andprofitability.

Environmental liabilities arise when an organisation has specific obligations to rehabilitate or repairenvironmental damage (or prevent or reduce environmental damage). These obligations can be eitherlegal or contractual, or can arise due to public commitments an organisation makes when it acceptsresponsibility for remedying environmental damage.

Resource companies, for example, are required to provide progressive provisions over the life of a resourceto cover the costs of closure, removal of fixed assets and site rehabilitation. Such provisions can includecurrent liabilities (relating to the current financial reporting period) and non-current liabilities (relating tofuture financial periods).

Organisations with known environmental liabilities are obliged to report them within their annual financialstatements. Consequently, environmental liabilities disclosed in TBL reports should be based oninformation presented in financial statements, or should refer readers to the appropriate sections of thosestatements.

Where future liabilities have been identified but are not accurately known, (for example, whereuncertainties exist in the timing and/or the magnitude of rehabilitation and clean-up costs) they areregarded as contingent liabilities. Even though contingent liabilities are not recognised in the balance sheet,they should be disclosed in the notes of annual financial statements.

Where known environmental liabilities will not be realised in the near future, organisations may reportclean-up or rehabilitation liabilities as either the current estimated cost or the discounted present value.

Generally Accepted Accounting Principles and Accounting Standards issued by the Australian AccountingStandards Board (AASB) provide direction for organisations on reporting consolidated financialstatements, including appropriate treatment of environmental liabilities. As the accounting requirementsfor environmental liabilities are still evolving, it is recommended organisations include liabilities in their TBLreports to ensure information is consistent with their financial statements, and that these in turn conformto current Standards.


Details of known material liabilities associated with matters such as site clean-up, rehabilitationand litigation.

Details of environmental issues with the potential to result in material liabilities.


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Environmental Performance Indicators

Introduction

Environmental Performance indicators help an organisation calculate and report on the impact itsoperations have on the environment, including flora, fauna, land, air and water.

Environmental performance indicators provide a framework to present environmental performanceinformation in a consistent, comparable and understandable format.

The GRI environmental performance indicator set has been used as the basis point for environmentalperformance indicators contained in this Guide. As the GRI indicators are underpinned by a substantialbody of work in environmental measurement, and have widespread industry support, they provide a solidfoundation for this Guide.

Consultation with Australian stakeholders during the development of this Guide also confirmed strongbacking for the GRI framework. In some cases, the GRI indicators have been modified to incorporatefeatures of Australian legislation or to reduce their complexity. To see the correspondence betweenenvironmental performance indicators in this Guide, and in the GRI Guidelines, see Appendix A.

The Environmental Performance Indicators within this Guide address the following key environmentalissues:

Energy

Greenhouse

Water

Materials

Waste – solid and hazardous

Emissions and discharges to air, land and water

Biodiversity

Ozone-depleting substances

Suppliers

Products and services

Compliance


Energy


Energy is fundamental to most activities and processes in modern industrial societies. Energy use andenvironmental impacts are closely linked, with the extraction, transport and use of fuels, and generationand transmission of electricity affecting the environment on global, regional, and local levels.

As the environmental impacts associated with energy use and extraction become more apparent, greateremphasis is being placed on efforts to optimise the use of non-renewable resources and minimiseenvironmental impacts, whilst maintaining economic productivity.

Using energy efficiently makes economic and environmental sense. Energy efficient organisations canrealise economic savings, and simultaneously help preserve non-renewable resources and protect theenvironment.

Determining an organisation’s energy use can often lead to identifying efficiency improvementopportunities. This information allows managers to focus attention on the principal areas of energyconsumption to maximise return on effort.

Australian Context

Australia's non-renewable energy reserves include oil, coal and natural gas. These reserves are large whencompared to the nation’s annual energy use. In the future, the use of these non-renewable resources may beconstrained more by environmental impacts of extraction and consumption, rather than availability.

Australia is facing a decline in crude oil production over the next decade. Without new discoveries, liquid fuelself sufficiency is predicted by Geoscience Australia to decline from about 85 percent in 2001, to less than 40percent in 2010.

To improve environmental outcomes, a range of government initiatives are reducing the greenhouse intensityof energy supply, and increasing the efficiency of energy use. For example the national Mandatory RenewableEnergy Target (which requires electricity suppliers to produce an additional 9500 GWh (approximately 2percent) of their electricity from renewable sources by 2010) and industry development strategies, meanrenewable energy is expected to play an increasing role in future energy supplies.

On the demand side, national programs such as Minimum Energy Performance Standards, which improve theefficiency of standard electrical appliances with overall net savings to consumers, are improving the efficiencyof energy use.

Facts and Figures

The total amount of energy consumed in Australia during 1997–98 was 4,810 petajoules, a rise of 61 percentfrom 1977–78. This reflects the growth of both the Australian population and the national economy.

In 1997–98, fossil fuels accounted for 94 percent, or 4,541.8 petajoules, of energy consumed in Australia.

The amount of energy used per capita increased by 24 percent from 209 gigajoules in 1977–78 to 258gigajoules in 1997–98.

Source: ABS 2001. Australia’s Environment: Issues and Trends 2001. Catalogue number 4613.0.



Indicator Description Units Type GRI Equivalent Page

Energy 1 Direct Energy Use Joules or multiples Core EN3 – Direct Energy Use 22

of Joules (kJ, MJ etc) segmentedby primary source

Energy 2 Indirect Energy Use Joules or multiples Additional EN4 – Indirect energy use 24

of Joules (kJ, MJ etc)

Energy 3 Initiatives to use renewable Not applicable Additional EN17 – Initiatives to use 25

energy sources and increase renewable energy sources

energy efficiency and increase

Energy Indicators

Energy Indicator 1:

Direct Energy Use (joules or multiples of joules)

This indicator provides information on how an organisation can calculate the financial cost of its energyconsumption for specific activities. This information can be used to identify opportunities to improveefficiency of energy use and monitor the effectiveness of energy efficiency initiatives.

Methodology

Direct energy use is the energy consumed by an organisation to perform its day-to-day activities. It includesenergy from fossil fuels, purchased electricity and renewable sources, but does not include energy sold bythe organisation for use by others.

There are other potential contributors to direct energy use, such as the purchase of steam from aneighbouring factory, which are applicable to a small number of organisations. Methodologies forcalculating these sources of energy are not included in this Guide. Please refer to the further informationfound at the end of this Section for suitable methodologies.

Energy use associated with staff travel by aircraft or train is not addressed in the methodology, as theemissions factors needed for such calculations are not readily available. Organisations taking steps toreduce staff travel may wish to report these initiatives under indicator Energy 3: Initiatives to userenewable energy sources and increase energy efficiency.

Direct energy used should be reported in absolute terms (for example, kilojoules, megajoules etc.) andin normalized form to enable tracking and assessment of energy use.

Direct energy use = energy from fossil fuel use + electricity purchased from suppliers + energy from renewable sources – energy provided to other organisations (if applicable)

Fossil Fuels

Fossil fuels include petrol, diesel, natural gas, LPG, black and brown coal, oil, kerosene and aviation gasoline.Fossil fuel will either be purchased from a supplier or sourced internally. The quantities of fossil fuelspurchased during the reporting period can be determined by reviewing invoices from suppliers inconjunction with fuel inventory information.


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Fossil fuels such as natural gas and petroleum products may be piped to site. In these cases the amountused can be determined by reading the appropriate meters.

Where fossil fuels are obtained from sources owned or managed by the organisation, extraction ortransport records may be used to determine the quantities used. Alternatively, process flow rates may beused to estimate throughput.

Fossil fuels also include petroleum products purchased for transport requirements, such as distributingproducts, providing the transport is directly related to the operations of the reporter (staff travel to workwould not usually be included).

Receipts for purchased fuel can also provide accurate fuel consumption rates. If direct consumptionvolumes are unavailable, then travel logs providing distances travelled can be combined with vehicles’ fuelefficiency, to calculate fuel used for transport.

The amount of fossil fuel used should be converted to the quantity of energy consumed in kilojoules. Thiscan be achieved by multiplying the quantity of fuel consumed by the corresponding calorific value of thefuel (its raw energy content).

Calorific values for a range of fuels can be obtained from the Emissions Estimation Techniques Manual for Aggregated Emissions from Fuel Combustion publication, available online from the National PollutantInventory (NPI) at www.npi.gov.au/handbooks/aedmanuals/pubs/subcombustion_ff.pdf, and Table5 of the National Pollutant Inventory Guide Version 2.13 at www.npi.gov.au/handbooks/pubs/npiguide2-13.pdf. Please note that calorific values are regularly updated as new information becomesavailable.

Electricity

Invoices from electricity suppliers will contain details of the amount of electricity purchased. Electricityinvoices usually list usage in kWh (kilowatt hours). To convert kilowatt hours to kilojoules, multiply thenumber of kilowatt hours by 3600.

Renewable Energy

When power is produced from renewable sources controlled by a reporting organisation (for example,solar or wind power) the energy used from these sources should be quantified. This can generally bedetermined by reviewing load or design specifications for a plant.

Example

Farm Direct is a supermarket chain operating stores throughout New South Wales and Victoria. Thecompany uses electricity for lighting and refrigeration, fuel for transport (diesel and petrol), and naturalgas for heating.

The company’s electricity and gas bills show it uses 34,440 kWh of electricity and 100 GJ of naturalgas for space heating across its network of stores and offices during its annual reporting period.

From fuel receipts and accounts, Farm Direct knows that 100,000 litres of diesel fuel was consumedduring the year for transporting goods, and 20,000 litres of petrol was used by fleet vehicles andforklifts. Direct energy use calculations are shown in the Table following.


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Energy Use Information Annual Convert Energy Used Convert Direct

Source Amount to Energy (relevant to GJ Use (GJ)

(relevant unit) Used energy unit) Energy

Electricity Lighting Retailer bills 34,440 kWh x 3600 123,984,000 KJ /1,000,000 124and refrigeration (KWh to KJ)

Natural GasHeating (VIC) Retailer bills 60 GJ 100Heating (NSW) 40 GJ

Fuel1 Receipts and 20,000 litresPetrol accounts 100,000 litres x 34.4 688,000 MJ /1,000 688Diesel information x 38.2 3,820,000 MJ /1,000 3820

Total 4,732

1 Densities and calorific values of petrol, diesel and other common fuels are available in Table 5 of the NPI Guide V 2.13

To track energy use efficiency, Farm Direct chooses to report the data in normalised form as revenue ($)per gigajoule (GJ) of direct energy used. As Farm Direct’s revenue for the reporting period was $21.2M,the normalised value is calculated as follows:

Revenue generated per unit of direct energy use = $21,200,000/4732 GJ = $4,480 per gigajoule of direct energy

Energy Indicator 2:

Indirect Energy Use (joules or multiples of joules)

This indicator provides information on how an organisation can calculate and present information relatingto the energy its energy suppliers consume to produce the energy the organisation actually uses.

In Australia, methodologies for calculating indirect energy use in relation to electricity are well developed.However other sources of indirect energy are not readily available, such as natural gas and fuel.Consequently, indirect energy is defined in this indicator as the energy consumed to produce and transmitthe electricity used by an organisation.

In combination with direct energy use (Energy Indicator 1: Direct Energy Use), this indicator allowsmanagement and stakeholders to compare energy use between organisations. It also provides a basis fororganisations to reduce indirect energy use by purchasing green power or electricity derived from sourcesand technologies that have less environmental impact.


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Methodology

Indirect energy use is the energy used to produce and deliver electricity. An understanding of the sourceand method used to generate purchased electricity is required to calculate indirect energy use. Electricitygeneration efficiency factors exist which are specific to the facilities used to generate the electricity.

Indirect energy used should be reported in absolute terms (for example, joules) but also in normalizedform to enable energy intensity to be tracked and assessed.

Indirect energy use = electricity purchased from suppliers/electricity generator efficiency

Electricity generator efficiencies can be obtained by either contacting your energy retailer, or visiting theAustralian Greenhouse Office web site at www.greenhouse.gov.au/challenge/tools/workbook.

The electricity generator efficiency factors for each State and Territory, available through the abovereference, make allowance for energy losses during transmission.

Where electricity is purchased from renewable sources, indirect energy is considered to be negligible forthe purposes of reporting.

Example

Farm Direct, a supermarket chain, calculates that its total annual electricity use throughout all its storesis 124 GJ. It contacts its electricity retailer and is informed that the supplier’s electricity efficiency factoris 55 percent.

Hence, to produce 1 GJ of electricity, fuel containing 1.8 GJ of energy was combusted.

Indirect energy use = 124 GJ / 0.55 = 225.5 GJ

Therefore 225.5 GJ of energy was expended by the supplier to deliver 124 GJ of electricity for use byFarm Direct.

To track indirect energy use efficiency, Farm Direct also reports the data in normalised form as revenue($) per gigajoule (GJ) of indirect energy used. As Farm Direct’s revenue for the reporting period was$21.2M, the normalised value is calculated as follows:

Revenue generated per unit of indirect energy consumed = $21,200,000/225.5 GJ = $94,055 per gigajoule



Energy Indicator 3:

Initiatives to use Renewable Energy Sources and Increase

Energy Efficiency

This indicator provides information on how an organisation can describe projects and programs it hasdeveloped and implemented to use renewable energy sources where possible, and to decrease its overallenergy consumption.


Initiatives that increase the proportion of energy obtained as green power or from renewable sources.

Cogeneration projects.

Energy conservation programs.

Initiatives to track and reduce energy use.

Energy efficiency improvements.

F U R T H E R I N F O R M AT I O N O N E N E RG Y I N D I C ATO R S

A N D M E T H O D O L O G I E S

The energy indicators and methodologies within this Guide are closely aligned with the GRIEnergy Protocol. The Protocol contains further details and techniques for measurement ofenergy consumption and is available online at www.globalreporting.org.


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Greenhouse


The atmosphere surrounding the earth is composed of a mixture of gases. Some of the gases such as watervapour, carbon dioxide and methane are known as greenhouse gases because of their capacity to trap heat,leading to warming of the lower atmosphere. This natural process maintains the warm conditions neededon earth to sustain life.

Human activities (for example, burning of fossil fuels, land clearing) over the past 200 years have led to anincreased concentration of greenhouse gases in the atmosphere. The additional heat trapped has increasedthe average temperature of the lower atmosphere, producing the so-called enhanced greenhouse effect.

Organisations that understand the greenhouse emissions profile of their operations are well placed torespond to the challenges and opportunities that may arise from measures to reduce greenhouse gasemissions. Quantifying greenhouse emissions is therefore a sensible business risk management strategy,especially for those organisations in greenhouse-intensive industry sectors.

Further, as greenhouse gas emissions are closely linked to consumption of energy and fossil fuels, aninventory of emissions may highlight cost saving opportunities. Greenhouse emissions management andreduction can cut energy costs and reduce transport and fuel-related expenditure.

Australian Context

Australia is particularly vulnerable to the impacts of climate change, with significant greenhouse gas emissionsoccurring across a range of sectors in the economy, including energy, industrial processes, agriculture, land usechange and forestry, and waste. Forecasts of agricultural impacts of climate change are a key concern becauseof the sector’s importance to the national economy.

Australia has a comprehensive national domestic greenhouse action agenda that reflects Australia’s particularcircumstances.

Since 1997, the Commonwealth Government has invested nearly $1 billion in programs aimed at reducinggreenhouse emissions. These initiatives have included promoting renewable energy and the use of alternativefuels, as well as implementing large-scale greenhouse gas abatement projects and the Greenhouse Challenge.

Facts and Figures1

Australia’s 2000 net greenhouse gas emissions totalled 535 million tonnes (Mt) of carbon dioxide equivalent.Total emissions increased by 6.3 percent (32.0 Mt) over the period 1990 to 2000 and by 2.1 percent (11.3 Mt)between 1999 and 2000.

Stationary Energy use accounted for 49.3 percent of total emissions, followed by Agriculture (18.4 percent),Transport (14.3 percent), Land Use Change and Forestry (7.1 percent), Fugitive Emissions (5.9 percent), Waste(3.1 percent) and Industrial Processes (1.9 percent).

Emissions per dollar of GDP were 0.851 kilograms CO2 equivalent in 2000, 24.0 percent lower than in 1990.Emissions per capita were 27.9 tonnes CO2 equivalent in 2000, 5.3 percent lower than 1990 level.

Source: Australian Greenhouse Office www.greenhouse.gov.au

1 All figures quoted in this section have been calculated according to the United Nations Framework Convention on Climate Change (UNFCCC) Inventory accounting provisions




Greenhouse 1 Total greenhouse gas emissions Tonnes Core EN8 – Total 28

of CO2 equivalent greenhouse emissions

Greenhouse 2 Initiatives aimed at reducing Not applicable Additional No GRI equivalent 33

greenhouse gas emissions

Greenhouse Indicators

Greenhouse Indicator 1:

Total Greenhouse Gas Emissions (tonnes of CO2 equivalent)

This indicator provides information on how an organisation can determine the nature and scale ofgreenhouse gas emissions associated with its business operations, and to assess the scope for reducingthem.

Methodology

Greenhouse gas emissions include emissions of the six greenhouse gases listed in the UNFCCC as follows:

carbon dioxide (CO2)

methane (CH4)

nitrous oxide (N2O)

hydrofluorocarbons (HFC’s)1

perfluorocarbons (PFC’s)2

sulphur hexafluoride (SF6)

Emissions are reported in tonnes of CO2 equivalent (CO2-e) to take account of the varying global warmingpotential of different greenhouse gases due to their chemical make-up. The global warming potential(CO2-e) for each key greenhouse gas is listed in the Table below:

Greenhouse Gas Global Warming Potential (CO2-e)

carbon dioxide (CO2) 1

methane (CH4) 21

nitrous oxide (N2O) 310

hydrofluorocarbons (HFC’s)1 140-9,800

perfluorocarbons (PFC’s)2 6,500-9,200

sulphur hexafluoride (SF6) 23,900

1,2 Note: the global warming potential for individual HFCs and PFCs vary, and can be found online at the Greenhouse Challenge’s web site www.greenhouse.gov.au/challenge


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Business activities resulting in greenhouse gas emissions include:

Electricity and gas use.

Transportation.

Waste treatment and disposal.

Industrial processes, including air conditioning, solvents etc.

Electricity generation and transmission.

Coal, gas and petroleum production.

Land use change, forestry and agriculture.

Total greenhouse gas emissions are the sum of emissions from all business sources. Greenhouse gasemissions should be reported in absolute terms and also as normalised data. The normalised data enablesthe greenhouse intensity of business outputs to be tracked and assessed.

Total greenhouse gas emissions =Sum of (emissions of each greenhouse gas x global warming potential for each greenhouse gas)

It is recommended that organisations calculate greenhouse gas emissions using the methodologiesdeveloped for the Greenhouse Challenge program. Greenhouse Challenge participants should simplyreport emissions as determined under the program framework.

Other organisations should identify greenhouse gas emissions sources associated with their operations.Methodologies for widely applicable sources including electricity and gas use, transportation, and wastedisposal are presented below.

Methodologies to calculate emissions from industry specific sources can be obtained from the GreenhouseChallenge workbook at www.greenhouse.gov.au/challenge/tools/workbook.

Electricity Use

Greenhouse gas emissions arising from electricity use are calculated using the following formula:

Greenhouse gas emissions (t CO2-e) = electricity used (kWh) x emissions factor/1000

The amount of electricity used in kWh is typically documented in supplier invoices or in some cases is readfrom meters. Emissions factors, which vary between State and Territory, are indicators of the relativegreenhouse intensity of each of their electricity supply networks. The emission factors can be found in Table2 of the Greenhouse Challenge workbook at www.greenhouse.gov.au/challenge/tools/workbook.

Gas Use

Greenhouse gas emissions arising from natural gas use are calculated using the following formula:

Greenhouse gas emissions (t CO2-e) = natural gas used (GJ) x emissions factor/1000



The amount of natural gas used in GJ is typically documented in supplier invoices, or in some cases, is readfrom meters. Emission factors for natural gas use, which vary between State and Territory, can be foundin Tables 6 and 7 of the Greenhouse Challenge workbook at www.greenhouse.gov.au/challenge/tools/workbook.

Transport

Vehicles powered by fossil fuels create greenhouse gas emissions. There are two options for calculatinggreenhouse gas emissions from transport activities, and the approach adopted will depend largely on dataavailability.

The first option is based on the quantity of transport fuels consumed by an organisation. Separatecalculations should be carried out for each fuel type.

Greenhouse gas emissions (t CO2-e) = fuel quantity (kL) x energy content of fuel (GJ/kL) xemission factor (kg CO2-e/GJ)/1000

The quantity of each transport fuel consumed can typically be determined by reviewing supplier invoicesin conjunction with fuel inventory information. The energy content and emission factors for each fuel arecontained in Table 11 of the Greenhouse Challenge workbook at www.greenhouse.gov.au/challenge/tools/workbook.

Alternatively, the following formula can be used when an organisation has records of kilometres travelledby its vehicles, but does not know the quantity of fuel consumed:

Greenhouse gas emissions (t CO2-e) = (total km travelled x fuel consumption x energy content of fuel x emission factor)/106

The total kilometres driven for each type of fleet vehicle can typically be sourced from vehicle records.Further information for this calculation can be found at www.greenhouse.gov.au/challenge/tools/workbook.

Waste Disposal

Waste decomposition is a source of greenhouse gas emissions, primarily because it releases methane. Thequantity of emissions depends on the nature of the waste.

Organisations that dispose of waste to landfill should use the formula on page 31 to estimate theassociated greenhouse gas emissions. Separate calculations should be carried out for each waste type.



Chapter

Greenhouse gas emissions (t CO2-e) = [((waste quantity (tonnes) x DOC x DOCF x F1 x 16/12) - R) x (1-OX)] x GWP CH4

The quantity of solid waste should be determined in accordance with Waste Indicator 1: Total Amountof Solid Waste by Type and Destination within this Guide.

DOC The Degradable Organic Carbon (DOC) for various waste types is available online from the Greenhouse Challenge workbook (Table 9) at www.greenhouse.gov.au/challenge/tools/workbook.

DOCF The fraction of Degradable Organic Carbon dissimilated (DOCF) has a default value of 0.55 for paper and paper board, wood and straw and garden and park waste, and 0.77 for other (non-lignin containing) materials

Fl The carbon fraction of landfill gas (Fl) has a default value of 0.50

16/12 is the conversion factor for carbon to methane

R R is the amount of methane recovered in the reporting period (in tonnes)

OX The Oxidation Factor (OX) has a default value of 0.1

GWP CH4 The global warming potential of methane (GWP CH4) used to convert the quantity of methane emitted to CO2-e is 21

Example

OzyAir is a regional airline operating 22 aircraft on domestic routes throughout south-easternAustralia, linking regional centres to Melbourne and Sydney. In the reporting year, the airline flew 7800sectors and carried 120,000 passengers.

OzyAir core activities are flight operations and passenger services. All support services, includingterminal management, flight catering, line engineering and baggage handling, are contracted out andnot included in its greenhouse gas emissions.

OzyAir is administered from its Melbourne corporate headquarters and performs aircraft maintenanceand repairs from hangars in New South Wales.

Greenhouse gas emissions for the airline are calculated as follows:

Fuel

Total aviation fuel use in 2001 (from supplier invoices) = 800 kL (no fuel is stored)

Fuel: (800kl x 33.1 GJ/kL x 77.2 kgCO2e/GJ)/1000 = 2044 tonnes CO2-e

Electricity

Total electricity use in 2001 (from supplier invoices) = 105 GJ

The breakdown of electricity use was 80 GJ associated with the Melbourne office and 35 GJ for themaintenance hangars.

Electricity use = 29,170 kWh (22,200kWh from the office and 6,970 kWh from the maintenance hangar)

Using the emission factors for Victoria (corporate headquarters) and NSW (maintenance hangar) sourced from the Greenhouse Challenge information (for the current year).

22,200 kWh x 1.444/1000 = 32 tonnes CO2-e (office)6,790 kWh x 1.012/1000 = 7 tonnes CO2-e (maintenance hangar)

Total = 39 tonnes CO2-e



Waste

Total waste produced in 2001 = 86.4 tonnes

Paper and cardboard = 48.4 tonnes

(4.4 tonnes from the office, 4 tonnes from maintenance and 40 tonnes from in-flight food packaging

Food waste = 18 tonnes

(2 tonnes from the office and maintenance, 16 tonnes from in-flight food service)

Plastics, glass and other = 20 tonnes

(1 tonne from the office, 9 tonnes from maintenance, 10 tonnes from in-flight food packaging andgeneral services).

Waste = 48.4 tonnes paper and cardboard, 18 tonnes food

Using the emission formulae provided and the values for the individual types of waste in the GreenhouseChallenge information, emissions from waste total:

GHG emissions (t CO2-e) = [((Q x DOC x DOCF x F1 x 16/12) – R ) x 0.9] x 21

Therefore:

paper/cardboard = [((48.4 x 0.4 x 0.55 x 0.5 x 16/12) – 0) x 0.9] x 21 = 134 tCO2-e

food waste = [((18.0 x 0.15 x 0.77 x 0.5 x 16/12) – 0) x 0.9] x 21 = 26 tCO2-e

Total = 160 tonnes CO2-e

Other wastes do not degrade to produce methane and are therefore not calculated against thisformula.

Total emissions for OzyAir

Sector (tonnes CO2-e)

Fuel Use (avgas) 2044

Electricity (office and maintenance) 39

Waste (in-flight, maintenance and office wastes) 160

Total greenhouse emissions 2243

OzyAir reports greenhouse gas emissions data in both absolute and normalised form. The relevant unitof production is the number of passenger kilometres flown by the airline, which is calculated annuallyby the network operations computer system.

As OzyAir’s operations for the reporting period consisted of 26.66 million passenger kilometres, thenormalised value is calculated as follows:

Number of passenger kilometres per tonne of greenhouse gas emissions =26,660,000/2243 tCO2-e = 11,886 passenger kilometres per tCO2-e.



Chapter

Greenhouse Indicator 2:

Initiatives Aimed at Reducing Greenhouse Emissions

This indicator provides an organisation with information on how to describe the projects and programs ithas developed and implemented to reduce greenhouse gas emissions.


Operational improvements that cut emissions of greenhouse gases including cleaner production initiatives.

Measures to transform greenhouse gases into less greenhouse-intensive outputs (for example,methane to CO2) and initiatives to reduce fugitive emissions.

Efforts to conserve energy such as energy awareness programs, cogeneration, insulation, replacementor modification of equipment and facilities.

Initiatives to offset greenhouse gas emissions from operations, including emissions trading and sequestration.

Any reduction targets for emissions.

Any voluntary reduction programs or protocols to which an organisation subscribes(for example, Greenfleet or the Greenhouse Challenge).

Further information on greenhouse gas abatement actions is available online at www.greenhouse.gov.au/challenge.

F U R T H E R I N F O R M AT I O N O N G R E E N H O U S E I N D I C ATO R S


The information and methodologies within this Section of the Guide are closely aligned withthe Greenhouse Challenge Program. Further information is available online from theAustralian Greenhouse Office at www.greenhouse.gov.au/challenge.

The World Business Council for Sustainable Development (WBCSD) has developeda Greenhouse Gas Protocol comprising greenhouse gas accounting and reporting standardsand guidelines for companies and other types of organisations. It addresses the accountingand reporting of the six major greenhouses gases. The WBCSD Greenhouse Gas Protocolis available online at www.ghgprotocol.org.


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Water


Water is a precious and finite resource. About one-third of the world's population lives in regions withmoderate to high water stress. If present consumption trends continue, two of every three people on earthwill live in water-stressed conditions by the year 2025.

Water scarcity is a major constraint to industrial and economic growth. Consequently, the need to meetincreasing demands for freshwater resources is likely to be a significant issue on environment anddevelopment agendas over coming decades.

An organisation which understands water use associated with its operations has a sound basis to beginidentifying opportunities to reduce its consumption, and in many cases, to implement water efficienciesacross its operations. For example, initiatives to capture and use treated wastewater or stormwater candecrease fresh water use and provide significant cost savings.

A proactive stance on water management also enables an organisation to demonstrate it shares generalcommunity concerns regarding careful management of water resources.

Australian Context

Australia is the world’s driest inhabited continent, with over 80 percent of its land recording an average rainfallof less than 600 mm annually. The nation’s inland waters are essential to society and the national economy,providing water for drinking, agriculture and industry.

Pressures facing the health of Australia's water resources include: increases in water extraction, clearing ofcatchment and riparian vegetation, pollution discharge, algal blooms, and the increase in areas affected bydryland salinity.

In Australia, the need to balance the interests of business, the community and the environment for waterresources has emerged as a major challenge. Growing demand for water places pressure on catchments, andcreates a need to use water more effectively across the entire economy.

Facts and Figures

Total annual water use in Australia between 1985 and 1996/97 has increased by 65 percent to 24,058 GL(approximately 24 billion cubic metres) annually. Surface water extraction accounts for 79 percent of totalwater use, while groundwater accounts for 21 percent of total use.

Over the past 20 years, the area of irrigated land has almost doubled in New South Wales and Queensland.There has been a 75 percent increase in the annual volume of water used for irrigation between 1985 and1996/97.

Urban and industrial water users account for 20 percent of total water use in Australia, and increased 55 percent between 1985 and 1996/97.

Source: Environment Australia 2001. Inland Waters Theme Report Australia State of the Environment Report 2001. ISBN 0 643 06750 7.




Water 1 Total water use Cubic metres (m3) Core EN5 – Total water use 35

Water 2 Total water reused Cubic metres (m3) Additional EN22 – Total recycling and 36

reuse of water

Water 3 Initiatives to decrease Not applicable Additional No GRI equivalent 37

water consumption or

increase water reuse

Chapter

Water Indicators

Water Indicator 1:

Total Water Use (cubic metres – m3)

This indicator provides information on how an organisation can calculate and report on the amount of itsfreshwater use, and assess any scope for reducing water consumption and costs.

Methodology

Total water use is the sum of water purchased from water suppliers and water extracted from surface andgroundwater sources. It includes water used for cooling purposes but excludes seawater.

It should be measured and reported in the following categories:

Potable water (potable water received from a local/municipal supplier).

Surface water (water obtained from surface water sources such as streams and creeks, includingstormwater and collected runoff).

Groundwater (water obtained from groundwater sources such as wells and bores).

Total water use = potable water + water obtained from surface sources + water obtained from groundwater sources

Potable Water

Generally, all water supplied by retailers is of potable quality.

The volume of water purchased from retailers is typically recorded in invoices from those suppliers.

If water purchased is of another quality classification (for example, cooling water or treated effluent) it willbe necessary to include additional categories in total water used.

Surface and Ground Water

Water from surface water or groundwater sources is usually extracted by pump. Where extraction ismetered through the pump, the volume of water consumed can be determined by reading the meter.

In the absence of a meter, consumption may be estimated by multiplying the pump flow rate by theduration of pumping operations. If tanks are gravity driven, flow rates and hours of discharge may beestimated.


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Example

CrackerJacks Pty. Ltd. manufactures crackers at its factory located adjacent to a river. In the reportingyear the company produced 184,000 boxes of crackers for the domestic market.

CrackerJacks has a licence to pump some water from the river and is also connected to the townsupply. Cracker ingredients are mixed with water supplied by the local retailer and all other water,except for drinking and kitchen purposes, is supplied by a gravity-fed tank filled by pump from the river.The river water is not considered suitable for drinking.

The retailer’s invoice indicates the potable water use from the town supply for the year was 5,260kL or5,260m3.

The pump operates for two hours twice daily to fill the gravity tank and pumps at a known rate of 30litres per minute. Therefore, annually, the pump will transfer 2,630m3 of surface water (2 x 2 (hrs) x 60(mins/hr) x 30 (litres/min) x 365 (days/yr) / 1000 (litres/m3) = 2,630m3).

Total water use

Potable water 5,260m3

Surface water 2,630m3

Total 7890 m3

CrackerJacks reports water use data in absolute and normalised form. Water use efficiency is trackedby monitoring the amount of water used per box of finished product. As the company produced184,000 boxes of crackers during the reporting period, the normalised water use is calculated asfollows:

Boxes of biscuits produced per m3 of water = 184,000/7890m3 = 23.32 boxes of biscuitsper m3 of water.

Water Indicator 2:

Total Water Reused (cubic metres – m3)

This indicator provides information on how an organisation can collect and measure data whichdemonstrates the effectiveness of its water reuse strategies.

Water reuse is clearly an effective way to reduce consumption of fresh water, while simultaneouslydelivering economic benefits to an organisation.

Methodology

Reused water is water reintroduced to the same process after initial use, or water introduced to anotherprocess within an organisation’s operations after initial use. The water may have been treatedbetween uses.

To determine the quantity of water reused, a detailed knowledge of operational processes is required. Itcan be calculated by measuring the flows of used water into the subsequent process, or by determining thereduction in fresh water use (assuming other process conditions remain constant).


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Example

CrackerJacks implemented a water recycling system during its last reporting period, to reuse coolingwater twice before release. Prior to implementation of the recycling program, the company’s coolingsystem used 4,500m3 of water annually.

As a consequence of recycling, the quantity of river water used for cooling purposes has dropped from4,500m3 to 1,500m3. Assuming negligible water lost as steam, 3,000m3 of water is reused.

Water Indicator 3:

Initiatives to Decrease Water Consumption

or Increase Water Reuse

This indicator provides information on how an organisation can describe projects and programs it hasdeveloped and implemented to decrease water consumption, demonstrating its commitment to efficientlymanaging water resources.


Process changes directed at reducing water consumption.

Initiatives to recycle or reuse water.

Programs to raise staff awareness of water conservation.

F U R T H E R I N F O R M AT I O N O N WAT E R I N D I C ATO R S


The information and methodologies within this Section of the Guide are closely aligned withthe GRI Water Protocol. The Protocol contains further details and techniques formeasurement of water use and is available online at www.globalreporting.org.

The UK Department of the Environment, Transport and the Regions has preparedGuidelines for Company Reporting on Water (2000). These guidelines are available onlineat www.defra.gov.uk/environment/envrp/water/pdf/water.pdf.


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Materials


The trend of our society today is toward to an increasing consumption of natural resources and materials.Meeting consumer demand for goods requires using and transforming raw materials extracted from theenvironment.

Using material inputs efficiently not only reduces pressures on the environment, but can result in financialsavings. Producers can use materials more efficiently through strategies such as lightweighting, usingrecycled wastes as inputs, and enhancing the recyclability of their products. These approaches increase theservice intensity, or value, from each unit of raw material.

Monitoring material inputs is a fundamental business management process. Inventory control andmaximising the use of material inputs are critical cost-control issues given considerable attention by manyorganisations. An understanding of material inputs assists them in identifying opportunities for materialsubstitution, and product or service redesign with the potential to deliver financial and environmentalbenefits.

Australian Context

Australia’s economy is highly dependent on material inputs for the production of goods and services, requiringa total material flow of about 180 tonnes per person annually.

In Australia, despite the growth of the services sector, material use is increasing in both gross and per capitaterms. This creates substantial environmental consequences, along with challenges for a reduction in our useof materials. Much is being done in industry to reduce negative environmental impacts, but reduction atsource, through lower material use, is also important.

Industry’s efforts to increase material efficiency are supported by a range of public sector initiatives thatencourage the uptake of eco-efficiency and cleaner production. Further, government waste managementagencies are promoting and facilitating use of wastes as material inputs for industrial processes. Numerousproducts composed of fully or partially recycled materials are now available in Australia.

Facts and Figures

Iron and steel consumption is spread across all industry sectors, but is dominated by metal productsmanufacturers (33 percent of total consumption), machinery and equipment (17 percent), transport (16percent), and building and construction (12 percent).

Non-ferrous metals (for example, aluminium and copper) are used extensively in electrical equipment andappliances (over 25 percent of total consumption).

Construction materials are predominantly used in the building, infrastructure and construction sectors(approximately 90 percent of total consumption).

Agricultural produce is used mainly for providing meat and meat products (over 50 percent of totalconsumption), while other food products make up most of the remainder, excluding 7 percent used in thetextile industry.




Materials 1 Total material use Tonnes Core EN1 – Total material use other 39

than water by type

Materials 2 Initiatives aimed at using Not applicable Additional EN2 – Percentage of materials 41

post consumer recycled used that are wastes (processed or

materials and waste from unprocessed) from sources external

industrial sources to the reporting organisation

Chapter

Facts and Figures (continued)

Timber products, excluding paper-based products, are predominantly used in residential buildings (55 percentof total consumption), with only small quantities used in other sectors such as furniture (12 percent), otherconstruction and wholesale trade.

Paper production is largely used for printed and published media (57 percent of total consumption), theremainder being consumed largely in packaging applications (23 percent). The use of paper in Australiasteadily increased from 2808 kt in 1988–89 to 3461 kt in 1998–99, with newsprint, and publishing and writingpapers, representing just over 50 percent of consumption by weight.

Plastic products are diverse, with a wide range of applications across other industry sectors. Packaging is thelargest consumer of plastic (37 percent of total consumption), with significant uses also in building andconstruction (27 percent) and manufacturing (13 percent).

Source: Environment Australia 2001. Human Settlements Theme Report Australia State of the Environment Report 2001.ISBN 0 643 06747 7

Materials Indicators

Materials Indicator 1:

Total Material Use (tonnes)

This indicator provides information on how an organisation can determine the nature and scale ofmaterials-use associated with its business operations, and how to assess the scope for reducing materialconsumption and costs.

Methodology

Total material use is the weight of all materials purchased or obtained from other sources, including rawmaterials for conversion to product or service, associated process materials, and semi-manufactured goodsor parts. It excludes water and materials used to generate energy.

Total material use should be reported in absolute terms and also normalised in relation to an organisation’sproduct or service output. For organisations with numerous inputs, estimating consumption for allmaterials is potentially onerous.

In the interests of maximising return on effort, it is recommended that organisations focus on identifyingand quantifying their key material inputs. This can be achieved by reviewing procurement and financialrecords to reveal items used in large quantities or purchases of high value. It is also important to ensurematerials with high environmental impacts, which contribute to an organisation’s risk profile, are alsoincluded.


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The following equation should be used to determine total material use:

Total material use = input material from suppliers + input material from owned source

Input Material from Suppliers

Material use should be reported by material type where possible. This aids understanding, as theenvironmental significance of materials varies considerably.

Details of quantities of materials supplied during the reporting period can typically be obtained fromsupplier invoices. This information, in conjunction with inventory information, can be used to determinequantities consumed during the reporting period.

Input Material from Owned Sources

For some industries, raw materials are sourced from within property owned by the organisation. This isespecially true in the mining, forestry and agricultural sectors. In these cases, quantities of materials maybe determined by investigating extraction or weighbridge records, or estimated using process flowinformation.

Example

AutoSteer manufactures automotive steering wheels, columns and housings and purchases its inputmaterials in either component or refined material form (either complete components such as bearingsor metal sheet to press into components).

AutoSteer identifies three materials that account for over 90 percent of its material use in productproduction. These materials are steel, aluminium and plastic.

Whilst recognising that other materials are used in its production manufacturing, these other materialsare not particularly environmentally sensitive and are consumed in much smaller volumes.

AutoSteer reports that it purchases 65 tonnes of steel and 48 tonnes of aluminium annually from itssupplier (sourced from invoicing). Its seven suppliers of plastic components provide 120 tonnes ofplastics (sourced from invoicing, volumes quoted per unit and by total mass).

AutoSteer reports material use data in absolute and normalised form. By relating the weight of thethree primary raw materials to the weight of finished product, the efficiency of materials use can bemonitored. As the company produced 198 tonnes of finished products during the reporting period, thenormalised indicator is calculated as follows:

Tonnes of finished product as a ratio of the three primary raw material inputs:

Steel – 198 tonnes of finished product / 65 tonnes of steel = 3.05

Aluminium – 198 tonnes / 48 tonnes of aluminium = 4.13

Plastic – 198 tonnes / 120 tonnes of plastic = 1.65



Chapter

Materials Indicator 2:

Initiatives Aimed at Using Post Consumer Recycled Materials

and Waste from Industrial Sources

This indicator provides information on how an organisation can describe projects and programs it hasdeveloped and implemented to increase its use of post-consumer recycled materials, and waste fromindustrial sources. It can demonstrate an organisation’s commitment to improving its use of materials.


Initiatives to improve material use efficiency by substituting raw materials with post-consumer recycledmaterial or waste from industrial sources.

Cleaner production projects directed at reducing waste and using raw materials more efficiently.

Product reformulation or redesign efforts to facilitate use of wastes as raw materials or to increaseproduct recyclability.

F U R T H E R I N F O R M AT I O N O N M AT E R I A L I N D I C ATO R S


Organisations seeking to purchase products containing recycled content can consult theWaste Wise Purchasing Guide for Government and Industry 2000, available fromEcoRecycle Victoria online at www.ecorecycle.vic.gov.au. This guide contains an extensivelist of products, supplier contacts and details of recycled content.


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Waste – Solid and Hazardous


Developing strategies and practices to manage the huge quantities of waste generated globally is a keyenvironmental challenge. Population growth, patterns of increased consumption, and industrialisation ofdeveloping nations are placing additional pressures on systems that manage waste.

Traditional approaches to waste management rely on the natural environment to absorb and assimilateunwanted by-products. Environmental impacts associated with waste disposal include land contamination,methane emissions, leachate discharges, odour, flammability, toxicity, and consumption of land resources.

Organisations are finding waste disposal costs have risen substantially in recent decades, adding to overallbusiness costs. Accordingly, compelling financial incentives, as well as environmental drivers, exist fororganisations to monitor and minimise the waste they generate.

Australian Context

Historically, the majority of Australia’s solid waste has been dumped in landfill. Despite the enthusiasticembracing of waste recycling schemes, Australians currently contribute about one tonne of waste per personannually to landfill. Much of this waste can potentially be recovered and used as raw materials.

Considerable pressure exists to better manage and reduce waste across States and Territories, driven bycommunity demand, government expectations and industry initiative. Further, the sheer volume of wasteproduced, along with scarcity of suitable landfill sites in major cities, are prompting a rethink of traditionalwaste management practices.

Legislation and policy arrangements are primarily the responsibility of State and Territory governments. A number of jurisdictions have established systems to track hazardous wastes from place of origin to disposaldestinations. These programs have significantly reduced inappropriate dumping of harmful wastes. Thetransportation of hazardous waste in and out of Australia is controlled by the Commonwealth Governmentunder its Hazardous Waste Act 1989.

Facts and Figures

For 1996–97, the Australian Bureau of Statistics (ABS) estimated that 21.2 million tonnes of solid wastes werereceived and disposed at landfills nationwide.

Overall waste composition across Australia is 40 percent domestic waste, 23 percent commercial andindustrial waste, and 37 percent construction and demolition waste.

The primary sources of commercial and industrial wastes are non-biodegradable wastes from industrial andmanufacturing processes.

The majority of hazardous or prescribed wastes are generated by the commercial, industrial and trade sectors.Sources of prescribed industrial wastes include hospitals, food outlets, chemical, paint and plasticmanufacturers, and food processing plants.

Data from New South Wales and Victoria suggests more than 50 percent of hazardous and prescribed wastesare generated from the manufacturing sector.

Source: Environment Australia 2001. Human Settlements Theme Report Australia State of the Environment Report 2001. ISBN 0 643 06747 7




Waste 1 Total amount of solid waste Tonnes Core EN11 – Total amount of waste 43

by type and destination by type and destination

Waste 2 Total amount of hazardous Tonnes Core EN31 – All production, transport, 45

waste produced (as defined import, or export of any waste

by the Hazardous Waste Act deemed “hazardous” under the

or State waste regulations) terms of the Basel Convention

Annex I, II, III and VIII

Waste 3 Initiatives and improvements Not applicable Additional No GRI equivalent 46

Note: Wastewater is dealt with under indicator Emissions 2. Significant discharges to water by discharge type.

Chapter

Waste – Solid and Hazardous Indicators

Waste Indicator 1:

Total Amount of Solid Waste by Type and Destination (tonnes)

This indicator provides information on how an organisation can calculate and report on the amount of wasteit produces and the destination of that waste.

This indicator can also help an organisation identify other opportunities to minimise the amount of wasteit produces.

Methodology

Solid waste is defined as unwanted solid material which no longer serves a purpose in the production orservice delivery operations of an organisation. It includes waste to landfill, and waste to be recycled orreused directly, but excludes waste deemed hazardous, which is measured under Waste Indicator 2: TotalAmount of Hazardous Waste Produced.

Waste produced should be reported by disposal destination. For most companies a split between landfilledand recycled or reused waste will exist. The recycled or reused waste can be further segmented into variousrecycling or reuse streams, such as paper, plastics, metals, glass and organic waste.

Waste data should be reported in absolute terms (for example, tonnes of waste landfilled) and also innormalised form (for example, tonnes of product sold per tonne of waste landfilled). Normalised dataallows tracking and assessment of waste products.

Most organisations engage waste contractors to remove solid waste. In some cases, contractor records willprovide volumes or weights of waste removed, and this data can be used to determine overall quantitiesfor reporting purposes.

Under most arrangements, waste contractors record only the number and size of bins collected. In theseinstances, information on waste density and average volumes of waste removed are needed to estimatewaste amounts.

Waste densities can be determined by weighing a representative sample of bins, or alternatively, typicalwaste densities can be obtained from the United Kingdom Department of Environment, Food and RuralAffairs’ Environmental Reporting Guidelines for Company Reporting on Waste, available online atwww.defra.gov.uk/environment/envrp/waste/pdf/cowaste.pdf.

Using this information, waste removed can be calculated using the formula below. Separate calculationsshould be done for each waste destination.


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Weight of waste (tonnes) = Bin size (m3) x Waste density (t/m3) x % full x No. of pickups per year

The percentage fullness of bins is best determined by checking bins just prior to pickup over several weeks.The extent of the survey required to calculate an average value depends on whether waste productionrates are relatively constant, or whether they vary considerably week to week.

Example

Angley Homes is a residential construction company. During the reporting period the company built1,800 homes across Australia.

Waste from Angley work sites is separated into two streams — waste destined for landfill, and timberwaste for recycling. The company contracts a waste management service provider to supply 3m3 skipsand perform waste pickups. Landfill waste skips are removed once per fortnight and timber waste skipsare removed on demand when full. The waste contractor includes details of the number of skipsremoved in invoices, as this data is the basis for service charges.

From a survey of landfill waste skips, it is established the skips average 70 percent full upon removal.Timber waste skips are assumed to be 100 percent full as they are removed on demand. With theassistance of the waste contractor, a number of full landfill waste and timber waste bins are weighed.From this exercise it determined that an average full landfill skip contains 1.6 tonnes and a full timberskip contains 2.1 tonnes. Waste densities are therefore 0.533 and 0.7 respectively.

From waste invoices, Angley Homes established that 8400 landfill skips and 600 timber skips wereremoved during 2001. The calculated amount of waste by destination is shown in the Table below.

No of 3m3 skips Skip volume (m3) Average Waste volume (m3) Waste density Mass of waste (t)

% full

Landfill

8,400 skips 25,200 70 17,640 0.533 9,408

Timber Recycling

600 skips 1,800 100 1,800 0.7 1,260

Angley Homes reports waste disposal data in absolute and normalised form. As the company built1,800 homes during the reporting period, the normalised information is calculated as follows:

Landfill waste produced per home = 9,408 tonnes/1800 = 5.23 tonnes per home

Timber waste recycled per home = 1,260 tonnes/1800 = 0.7 tonnes per home



Chapter

Waste Indicator 2:

Total Amount of Hazardous Waste Produced (as defined by the

Hazardous Waste Act or State Waste Regulations) (tonnes)

This indicator provides information on how an organisation can calculate and report the amount ofhazardous waste its operations produce.

Methodology

Under the various State and Territory regulations, hazardous waste producers are required to completewaste transport certificates to allowing tracking of consignments from place of origin to disposal location.Waste transport documentation provides a relatively simple means for organisations to collate informationon hazardous wastes for reporting purposes.

Quantities entered into waste transport documentation can be extracted to determine an aggregate ofhazardous waste production for the reporting period. Data should be reported by hazardous waste types.

Hazardous waste data should be reported in absolute terms (for example, tonnes of waste produced) andalso in normalised form (for example, tonnes of product sold per tonne of waste produced). Normaliseddata allows an organisation to track and assess its hazardous waste.

Substances and materials classified as hazardous waste vary between States and Territories. In general,hazardous waste includes chemical residues, solutions, sludges, and used chemical containers. For specificdetails, the relevant State or Territory environmental agency should be consulted.

Example

Maxwells Plastics produces a significant quantity of hazardous solid waste as by-products of PVC pipemanufacture. The waste is removed from site for disposal by a licensed contractor.

The waste transport receipts provided to Maxwells by its waste contractor are used to determine thequantity of hazardous waste produced at the facility. The receipts show that Maxwells generated:

277 tonnes of hydrocarbon resin.

23 tonnes of filter cake.

80 tonnes of chemical residues.

Accordingly, Maxwells established it disposed of 380 tonnes of hazardous waste over 2001. Thisinformation can also be presented in normalised form to track efforts to reduce hazardous waste inrelation to production output.

As the output from Maxwells’ facilities over the reporting period was 23,600 tonnes of product, thenormalised indicator is calculated as follows:

Tonnes of hazardous waste per tonne of product = 380 tonnes/ 23,600 tonnes= 0.016 tonnes of hazardous waste

per tonne of product


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Waste Indicator 3:

Initiatives and Improvements

This indicator provides information on how an organisation can document and demonstrate specificinitiatives it has developed and implemented to minimise waste produced from its operations.


Minimise solid waste, including programs to reduce, reuse and recycle waste.

Minimise hazardous waste production, including cleaner production initiatives.

Where possible, waste reductions achieved should be quantified and reported.

F U R T H E R I N F O R M AT I O N O N WA S T E – S O L I D A N D H A Z A R D O U S

I N D I C ATO R S A N D M E T H O D O L O G I E S

Information on classifying wastes and recyclable materials, and on the challenges andopportunities waste and recycling presents, is available online from EcoRecycle Victoria atwww.ecorecycle.vic.gov.au.

State and Territory environment protection agencies have primary responsibility fordeveloping waste management policy and administering waste regulations in Australia.These agencies provide details of obligations under local hazardous waste regulations.

The Hazardous Waste Act 1989 was developed to enable Australia to comply withobligations under the Basel Convention on the Control of the Transboundary Movementsof Hazardous Wastes. The legislation is available online at www.ea.gov.au/industry/hwa/legislation.html.


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Emissions to Air, Land and Water


Pollution of air, land and water are high-ranking environmental concerns for communities. Impacts ofpollution include human health effects, degradation of natural ecosystems, and loss of productive landresources.

Characterising its emissions to air, land, and water can provide an organisation with a better understandingof its operations, and often reveals opportunities to improve its operating processes. For example, anorganisation using volatile organic chemicals as production inputs may begin viewing emissions of thesesubstances as raw material losses. Schemes to recycle or capture the emissions for use have the potentialto deliver significant financial benefits.

Management of emissions is also an environmental protection issue. Minimising its adverse impacts on air,land and water provides an organisation with opportunities to build and maintain community andregulatory support for its ongoing operations.

Australian Context

Clean air and clean water are critical to Australia for a wide range of commercial, lifestyle, ecological andhuman health reasons. To achieve environmental protection goals, emissions to air, land and water are closelyregulated under State and Territory environmental laws. At a national level, the National EnvironmentProtection Council (NEPC) establishes consistent standards for environmental quality across all States andTerritories.

The National Pollutant Inventory (NPI) is a database of key emissions sources in Australia. The NPI providespublic access to information on pollutant emissions at a neighbourhood level to assist governments withplanning issues, and to encourage cleaner production. Organisations which emit quantities of certainsubstances above specified thresholds are required to report details of their annual emissions to the NPI.

Facts and Figures

Three substances – sulphur dioxide, oxides of nitrogen and carbon monoxide – accounted for more than 90 percent of all atmospheric pollution recorded by the NPI.

Sulfur dioxideTotal emissions to air totalled 1.4 million tonnes, of which 1.3 million tonnes is from industry sources (42 percent from the electricity supply industry, 35 percent from the basic non-ferrous metal manufacturingindustry, and 19 percent from the petroleum refining industry).

Total emissions to water was 2.3 tonnes, which was from the paper and paper manufacturing industry.

Oxides of Nitrogen Total emissions were 1.3 million tonnes all of which were to air, with 0.69 million tonnes attributed to industry(71 percent from the electricity supply industry).

Carbon Monoxide Total emissions were 4.9 million tonnes of which 14 percent were from industry sources.

Sources: National Pollutant Inventory – www.npi.gov.au




Emissions 1 Significant emissions Tonnes Core EN10 – NOX, SOX, and other 48

to air and land significant air emissions by type

Emissions 2 Significant discharges Tonnes Core EN12 – Significant discharges 49

to water by discharge type to water by type

Emissions 3 Initiatives to reduce Not applicable Additional No GRI equivalent 51

emissions and discharges

Emissions to Air, Land and Water Indicators

Emissions Indicator 1:

Significant Emissions to Air and Land (tonnes)

This indicator provides information on how an organisation can calculate and report on the significantemissions to air and land associated with its business operations.

This indicator does not include discharges to water, which are addressed in Emissions Indicator 2:Significant Discharges to Water by Discharge Type.

Methodology

Significant emissions to air and land are emissions with potential to cause significant environmental impactor stakeholder concern. In practice, organisations that trigger reporting obligations under the NationalPollutant Inventory (NPI) are recommended to use NPI data as a basis for emissions information in theirTBL reports. The list of NPI substances and their associated reporting triggers is available online atwww.npi.gov.au/about/list_of_subst.html.

Use of the NPI framework will minimise duplication of effort and draws upon industry-specificmethodologies developed for the NPI. NPI methodologies are incrementally updated and extended tocover a wide range of industry sectors. NPI industry specific methodologies are available online atwww.npi.gov.au/handbooks.

Emissions data should be reported as absolute amounts (for example, tonnes of pollutant emitted) and benormalised in terms of the service or product value produced (for example, tonnes of product producedper tonnes of pollutant emitted). Normalised data can be used to demonstrate efficiency improvements.

Significant emissions to air and water = NPI reporting requirements

For organisations not required to report for the NPI, it is less likely that emissions to air and land are asignificant environmental issue associated with business activities. However, organisations may choose toreport emissions that do not trigger NPI reporting obligations, for example where emissions occur in theproximity of sensitive receiving environments. Stakeholder engagement will assist organisations to decidewhich emissions to report.


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Example

Ink Magic Pty. Ltd. produces approximately 1,400 tonnes of ink and ink products annually. It hasreported emissions to the NPI for several years, and enters NPI data directly into its environmentalreport. Data is listed in the Table below.

Emitted Substance (NPI Categories) Amount (tonnes) emitted to air

Cyclohexane 1.5

Ethanol 5.0

Ethyl Acetate 1.0

Methyl Ethyl Ketone 3.0

Methyl Isobutyl Ketone 0.6

Toluene (Methylbenzene) 2.4

Xylenes (individual or mixed isomers) 3.2


Significant Discharges to Water by Discharge Type (tonnes)

This indicator provides information on how an organisation can calculate and report on significantdischarges to water associated with its business operations.

Methodology

Significant discharges to water are discharges an organisation has which have the potential to causeenvironmental impact and /or stakeholder concern. To identify significant discharges, organisations shouldinvestigate discharges to waterways and marine waters. The volume, concentration, temperature andtoxicity of discharges should be considered when identifying significant discharges.

Discharge load should be reported in absolute terms and also normalised terms in relation to a suitablemeasure of product or service output.

Where practicable, the pollutant load in water discharges should be calculated using the below formula. In most cases, laboratory analyses will be required to determine the concentration of the substances ofinterest in the discharge stream.

Discharge load (tonnes) = (concentration of the substance discharged) x (discharge flowrate) x (discharge duration)

Organisations should provide some commentary on impacts associated with discharges, such as nutrients,acid or alkalis, suspended or dissolved solids, metals, radioactive substances, pesticides, herbicides orfungicides, hydrocarbons, oils or other chemicals.


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Example

Panmac Mining discharges treated water from its tailings storage facility during high rainfall events intoa local river. Discharges are tested by a NATA approved laboratory in accordance with its operatinglicence.

On average, the discharge water contains the following:

Copper 23mg/l

Zinc 5mg/l

Iron 16mg/l

Monitoring at the spillway during the reporting year revealed wastewater was released at anapproximate flow rate of 3m3 per minute over three days of high rainfall, resulting in a total of 12,960m3 of discharged wastewater.

Multiplying annual flow volume by average concentration, inputs to the river from the mine dischargesare as follows:

300 kilograms of copper.

65 kilograms of zinc.

210 kilograms of iron annually.

Pollution is impacting the local aquatic ecosystem. Macro-invertebrate monitoring performed inaccordance with guidelines for assessing stream conditions indicates that stream health is ‘average’upstream of the mine, and ‘poor’ downstream of the discharge point. While the information relates tobiodiversity impacts, it is noted here for purposes of the example.

The mine produces 4,000 tonnes of copper annually, so in normalised form it releases to water:

75 g of copper per tonne copper produced.

16 g of zinc per tonne copper produced.

53 g of iron per tonne copper produced.



Chapter


Initiatives to Reduce Emissions and Discharges

This indicator provides information on how an organisation can describe the management of its significantemissions and discharges, and document the steps it has taken to improve environmental quality bylessening its impacts.


Installation of pollution control systems and cleaner production technology.

Strategies that reduce emissions and discharges.

Infrastructure that changes the discharge destination to a less environmentally sensitive system (for example, from local systems to sewer).

Initiatives to reduce the toxicity, concentration or impacts of emissions.

It would be appropriate to report details of key initiatives undertaken, the resulting dischargeimprovements, and the associated environmental quality improvements expected.

F U R T H E R I N F O R M AT I O N O N E M I S S I O N S TO A I R , L A N D

A N D WAT E R I N D I C ATO R S A N D M E T H O D O L O G I E S

Details of reporting thresholds and industry specific methodologies for the NPI are availableonline at www.npi.gov.au.

The GRI Water Protocol provides further information relating to water pollution and waterdischarges, and is available online at www.globalreporting.org.


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Biodiversity


Biodiversity is defined as the variety of life on earth, including plants, animals and micro-organisms, alongwith the genetic material they contain and the ecological systems in which they occur. Population growthand development are steadily eroding global biodiversity through:

Clearance of native vegetation.

Pollution of air, land and water.

Overuse, misuse or inappropriate use of land and habitat areas.

Disruption of natural ecological cycles such as breeding patterns.

Invasion of exotic weeds and pests.

Depletion of forests, fisheries and other natural resources.

Where business operations interface with natural systems, potential exists for ecological pressures to occur.The quantity and characteristics of the land, inland and marine water an organisation controls thereforeprovides a sense of its potential to impact upon biodiversity. Details of any impacts on, or improvementsto, natural systems provide stakeholders an appreciation of an organisation’s performance.

Australian Context

Australia is among the most biologically diverse nations in the world, with a large number of species foundnowhere else. The value this biodiversity provides to the national economy has received increasing attention,yet it remains difficult to calculate in real terms.

One estimate in 1997 valued terrestrial Australian ecosystems at US$245 billion annually and US$640 billionannually for marine ecosystems. While these figures are relatively coarse, they emphasise the majorcontribution biodiversity makes to healthy and functioning landscapes.

In 1992, Commonwealth, State, Territory and Local governments agreed on the National Strategy for theConservation of Australia’s Biological Diversity to provide a framework for protecting Australia's biodiversity.A review in 2001 of progress in implementing this Strategy led to the agreement of the National Objectivesand Targets for Biodiversity Conservation, 2001–2005. These specific, time-bound targets were developed tobridge the gap between current activities and the measures necessary to conserve Australia's biologicaldiversity.

A key mechanism for biodiversity protection in Australia is the Environment Protection and BiodiversityConservation Act 1999 (EPBC Act). The Act covers a range of key areas of biodiversity conservation, includingAustralia's obligations under the Convention for the Protection of World Cultural and Natural Heritage.




Biodiversity 1 Location and size of land and Hectares Core EN6 – Location and size of land 53

water owned, leased or owned, leased or managed

managed in biodiversity-rich in biodiversity-rich habitats

or ecologically significant

habitat areas

Biodiversity 2 Major impacts on land, water Not applicable Core EN7 – Description of the major 55

and biodiversity associated impacts on biodiversity associated

with an organisation’s with an organisation’s activities,

activities, products products and services on terrestrial,

and services freshwater and marine

environments

Biodiversity 3 Initiatives and improvements Not applicable Additional No GRI equivalent 56

Chapter

Facts and Figures

The estimated total number of Australian flora (plants and fungi) species is 290,000.

The estimated total number of Australian fauna species is 200,000 – about 192,000 invertebrate species and8 000 vertebrate species.

For many groups, particularly the invertebrates, it is estimated more than 50 percent of species remainundescribed.

Due to Australia’s size, age and geological and evolutionary isolation, over 80 percent of mammal, reptile,flowering plant, fungi, mollusc and insect species in Australia are endemic.

There are 1478 species and 27 ecological communities listed under the Environment Protection andBiodiversity Conservation Act 1999 (EPBC Act) in February 2001, as either endangered or vulnerable at thenational level.

Source: Environment Australia 2001. Biodiversity Theme Report Australia State of the Environment Report 2001. ISBN 0 643 06749 3

Biodiversity Indicators

Biodiversity Indicator 1:

Location and Size of Land and Water Owned, Leased or Managed

in Biodiversity-Rich or Ecologically Significant Habitats (hectares)

This indicator provides information on how an organisation can determine the nature and size ofbiodiversity-rich and ecologically-significant habitats within its scope of operations and control.

Whilst having control of large areas of biodiversity rich habitat does not mean these areas are beingdegraded, it does indicate potential for an organisation to negatively impact on these areas.


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Methodology

Biodiversity-rich and ecologically significant habitats include:

World Heritage properties.

Wetlands of international importance (for example, the Ramsar wetlands).

Areas where listed threatened species or communities or listed migratory species occur.

Commonwealth Marine protected areas.

Critical habitats listed under the Environment Protection and Biodiversity Conservation Act 1999.

Commonwealth national parks, reserves and botanic gardens.

Areas providing significant ecosystem services, such as pollination, water filtration, water table control and fish hatcheries.

The location and size of land and water owned, leased or managed by an organisation in biodiversity-richor ecologically significant habitats should be reported in hectares. The report should also describe thenature and extent of an organisation’s operations in these areas.

Links to databases containing location details for ecologically important areas are provided in the Tablebelow. The area of land owned, leased or managed which is rich in biodiversity can be determined byreviewing the databases in relation to areas under an organisation’s control.

Biodiversity-rich habitat type Information sources

Protected and Environment Protection and Biodiversity Conservation Act.biodiversity-rich areas www.ea.gov.au/epbc

Wetlands of international Ramsar Database:significance www.wetlands.org

Habitat of endangered flora Convention on International Trade in Endangered Species and fauna of Wild Fauna and Flora (CITES):

www.cites.org

Critical Australian habitat Environment Australia :for endangered and rare species www.ea.gov.au/cgibin/sprat/public/publicregisterofcriticalhabitat.pl,

Marine protected areas Environment Australia database:www.ea.gov.au/coasts/mpa/commonwealth.html

Commonwealth National Parks, www.ea.gov.au/parks/commonwealth/index.htmlReserves and Botanic Gardens

Example

The Australian Wilderness Experience Group manages four chalets within Australian wilderness orworld heritage areas. Whilst the impacts of operations such as habitat destruction and interferencewith wildlife feeding and breeding have been minimised by diligent management, the Groupacknowledges it operates within 36 hectares of ecologically significant habitat.



Chapter


Major Impacts on Land, Water and Biodiversity Associated

with an Organisation’s Activities, Products and Services

This indicator provides information on how an organisation can identify and describe the major impacts ofits activities, products and services on land, water and biodiversity.

Methodology

Land, water and biodiversity impacts include removal of significant habitat, ecosystem damage, speciesreduction, changes to the pattern and quantity of environmental water flows, and spread of landdegradation, including salinity and weed infestation.

Biodiversity impacts should be reported in relevant units – numbers of species, annual species populationchange, percentage of rehabilitated land or habitat change, percentage of exotic species present.

Understanding biodiversity impacts often requires detailed investigation and specialist input.

The Flowchart below outlines a process typically followed by organisations to investigate and addressbiodiversity matters associated with their operations. The green and yellow boxes in the Flowchart provideguidance on the nature and extent of information which should be included in a TBL report.

Where potential exists for biodiversity impacts to occur, an investigation to characterise the issues wouldbe performed. In the light of completed investigations, an organisation would initiate monitoring andmitigation activities to address significant impacts.


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NO No reporting necessary against Biodiversity 2

NO Address identified stakeholder concerns in PER and report findings of investigations if desired

NO Report current environmental situation. If stakeholder concern is high,address these concerns potentially outling why mitigation is not planned

YES Report current environmental situation. Report to stakeholders:• Actions taken (and degree of implemention)• Expected or proven environmental benefitsComment if desired on how this addresses stakeholder concern

Is the organisation seeking to monitor

and/or mitigate its impacts on terrestrial,

marine or freshwater environments?

Investigate further. Is the biodiversity

issue significant?

YES Report these issues where appropriate

YES Outline identified environmental impacts and how the organisation’s operations cause these impacts where appropriate

Is there a biodiversity issue?

Investigate if there is an ecological risk

or stakeholder concern

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Example

JDG Feedlots have operated on the edge of Westernport Bay, a Ramsar wetland, for several years It hasreasonably efficient effluent control, but a small quantity of sediment and nutrients escape into atributary discharging directly into Westernport Bay.

Independent studies have found the local seagrass beds are diminishing and sediment and nutrients area primary cause of this loss. Testing reveals that JDG Feedlots is responsible for about a fifth of thesediment and nutrient loading on the system, although it is remains within its licensed operatingconditions.

Whilst JDG Feedlots acknowledges and reports the effects its operations have in conjunction with otherupstream uses, it initiated a response plan to eliminate 90 percent of the sediment and 50 percent of thenutrients from its effluent by the middle of the following year.


Initiatives and Improvements

This indicator provides information on how an organisation can demonstrate its commitment toprotecting and improving biodiversity.


Projects to rehabilitate disturbed or contaminated land, enhance existing habitat through removal ofexotic species (weeds or feral animals), or to promote natural habitat (through native seed cultivationand fencing to allow regeneration etc.).

Initiatives to relocate operations to less ecologically sensitive places.

Area rehabilitated compared to total area disturbed.

Research conducted into impacts and mitigation measures.

Development of policies that reinforce an organisation’s commitment to biodiversity protection.

F U R T H E R I N F O R M AT I O N O N B I O D I V E R S I T Y I N D I C ATO R S


State, Territory and Commonwealth government environment protection agencies andnatural resource departments can assist organisations to characterise ecological issuesrelevant to their operations.

At the time of publishing this Guide, the GRI was developing a Biodiversity Protocol. Whencompleted, the Protocol will be available online at www.globalreporting.org.

General information from Environment Australia on various aspects of national biodiversityis available online at www.ea.gov.au/biodiversity/index.html.

This website also provides links to the National Strategy for the Conservation of Australia’sBiological Diversity, National Objectives and Targets for Biodiversity Conservation,2001–2005, and other information on various biodiversity subjects, including WorldHeritage, Australian Bio-regions, Ramsar Wetlands, and flora and fauna of National andState significance.

In addition, the Earthwatch Institute provides an online biodiversity guide, Business andBiodiversity. An Australian Business Guide for Understanding and Managing Biodiversity atwww.earthwatch.org.


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Ozone-Depleting Substances


The ozone layer acts as a shield to protect the earth’s inhabitants from ultra violet rays, a principal causeof skin cancer. Evidence of damage to the ozone layer and existence of a significant ‘ozone hole’ hasprompted a decisive international response.

Substances implicated in ozone layer destruction include the chemical families known aschlorofluorocarbons (CFCs), hydrochlorofluorocarbons (HCFCs) and halons, which have potential uses inrefrigeration, fire suppression, fumigation, laboratory operations and chemical processes.

Significant global progress has been made toward phasing out the use of these substances through aninternational treaty, the Montreal Protocol on Substances that Deplete the Ozone Layer. In Australia, lawshave been established to phase out or limit the use of ozone-depleting substances in accordance with thisTreaty.

Australian Context

The Commonwealth Department of Environment and Heritage (Environment Australia) fulfils Australia'sinternational obligations under the Montreal Protocol on Substances that Deplete the Ozone Layer.

The Department administers and enforces the Ozone Protection Act 1989 and matching regulations, and hasdeveloped national strategies to phase out the use of ozone-depleting substances such as halons, methylbromide, hydrochlorofluorocarbons (HCFCs), and chlorofluorocarbons (CFCs).

Ozone-Depleting Substances Indicator

Indicator 1: Ozone-Depleting Substances (ODS) Emissions

This indicator provides information on how an organisation can identify, calculate and report emissions ofozone-depleting substances associated with its activities, products and services.

Methodology

Every ozone-depleting substance has an ozone-depleting potential, based on its chemical composition thatreflects its capacity to damage the ozone layer. CFC-11 has an ozone-depleting potential of one.

To provide a consistent approach, ozone-depleting potentials are used to convert total emissions of ozone-depleting substances to tonnes of CFC-11 equivalent.

Losses or use of ozone-depleting substances are generally tracked by monitoring purchases of thesubstances, or through monitoring inventory changes. Once losses of individual substances aredetermined, emissions are converted to tonnes of CFC-11 equivalent using the following equation:

Indicator Name Units Type GRI Equivalent Page

Ozone Depleting Ozone depleting substances tonnes of CFC-11 Core EN9. Use and emissions 57

Substances 1 (ODS) emissions equivalent of ozone-depleting substances

Ozone-Depleting Substances

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Total ozone depleting substance emissions = Sum of (emissions of each ozone-depleting substance x ozone-depleting potential for each substance).

Ozone-depleting substances which should be included in emissions estimations are listed online within theMontreal Protocol on Substances that Deplete the Ozone Layer at www.unep.org/ozone/montreal.shtml. This publication also includes a list of the ozone-depleting potentials for the various substances.

Example

OzyAir is a regional airline operating 22 aircraft on domestic routes throughout south-easternAustralia, linking regional centres to Melbourne and Sydney.

OzyAir uses two ozone-depleting substances for its operations. The airline has a permit to use halon1301 as a fire suppressant within aircraft, and uses HCFC-22 as a refrigerant within cool rooms torefrigerate fresh produce transported by air.

OzyAir acquires halon 1301 and HCFC-22 on demand to replace gas losses. The airline purchased0.005 tonnes of halon 1301 and 0.0405 tonnes of HCFC-22 during the reporting period.

The ozone-depleting potential of halon 1301 and HCFC-22 are 10 and 0.055, respectively. The quantityof emissions in tonnes of CFC-11equivalent is calculated as follows:

Ozone depleting substance emissions = 0.005 x 10 +0.0405 x 0.055 = 0.052 tonnes of CFC-11equivalent

F U R T H E R I N F O R M AT I O N O N OZ O N E - D E P L E T I N G S U B S TA N C E S

I N D I C ATO R S A N D M E T H O D O L O G I E S

Additional information on the Montreal Protocol on Substances that Deplete the OzoneLayer and relevant Australian initiatives is available online from Environment Australia atwww.ea.gov.au/atmosphere/ozone.



Indicator Name Units Type GRI Equivalent =

Suppliers 1 Initiatives to encourage N/A Additional EN33. Performance of suppliers =

improved environmental relative

to environmental components

performance of suppliers

of programmes and procedures

describd in response to Governance

Structure and Management Systems

section (Section 3.16)

Chapter

Suppliers


There is growing recognition that activities upstream and downstream of an organisation’s core operationshave potential to cause environmental impact.

As sustainability strategies mature, some organisations are seeking to align with suppliers that share acommitment to careful management of environmental issues.

In practice, this is achieved by incorporating environmental criteria into supplier evaluation processes, andin some cases, by setting minimum environmental management standards such as ISO14001 accreditation.

Several automotive manufacturing companies require key suppliers to have a program for ISO 14001implementation. To lead the process, these companies often provide environmental awareness trainingpackages to assist with the introduction of environmental management systems.

Arrangements with suppliers can be structured to add value by simultaneously reducing costs andenvironmental impacts. For example, rather than a waste disposal contract that rewards the contractor forincreases in waste produced, some organisations are realising the benefits of programs where the wastecontractor shares in savings from waste minimisation. Agreements of this type are beneficial for bothbusiness and the environment, foster innovation, and build strong relationships between organisations andservice providers.

Suppliers Indicator


Processes that identify and characterise environmental impacts associated with the activities of suppliers.

Environmental performance criteria standards for suppliers, and in supplier selection procedures.

Contract arrangements which align environmental and economic benefits

Environmental performance checks.


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Products and Services


Environmental impacts occur at various stages of the lifecycle of products or services. For example, tounderstand the complete environmental implications of a motor vehicle, it is necessary to consider impactsassociated with:

Extracting the metals used to form vehicle components.

Consumption of raw materials, energy and water.

Emissions and discharges from the manufacturing process.

Emissions arising from vehicle use.

The likely method of disposal at end of life.

It is clear that integrating environmental considerations with product and service design and developmentprocesses is a key opportunity for organisations today.

Intervention at this stage is an effective and efficient way to reduce the ecological footprint of productsand services, and has potential to open up new markets.

Examples of new products developed from a desire for environmental impact reduction include thecompact fluorescent light, and water efficient shower heads.

Lifecycle assessment is a holistic approach towards examining environmental effects of products andservices. This tool can be used by organisations to make decisions regarding production technologies,materials, packaging and service delivery methods. The scale and complexity of lifecycle assessments willvary according to the nature of products and services.

Environment Australia has released several publications focusing on designing for the environment, andenvironmentally-friendly products, including Product Innovation – The Green Advantage and Shop SmartBuy Green. These references are available online at: www.ea.gov.au/industry/eecp/tools/tools6.html#links. The ecological footprint concept is further developed by the Victorian EPA athttp://www.epa.vic.gov.au/eco-footprint.

Products and Services Indicators

Indicator Name Units Type GRI Equivalent

Products and Describe where relevant, major Not applicable Core EN14. Significant environmental Services 1 environmental impacts at each stage impacts of principal products

of the life cycle of principal products and servicesand services

Products and Product and service stewardship Not applicable Core EN15. Percentage of the weightServices 2 initiatives including efforts to improve of products sold that is reclaimable

product design and lessen impacts at the end of the products’ useful life associated with manufacturing, and the percentage that use and disposal is actually reclaimed


Processes that identify and characterise environmental impacts associated with each stage of the lifecycle of products and services.

Initiatives that mitigate environmental impacts of specific stages of product or service life cycle.

Any integration of environmental assessment criteria with product or service design processes.



Chapter

Compliance


A wide variety of environmental legislation exists in Australia to provide a legal basis for environmentalprotection. Compliance with environmental laws is a fundamental requirement of sound and responsibleenvironmental management.

In Australia, States and Territories administer the majority of legislation in relation to management of wasteand emissions to air, land and water. For the purposes of this indicator, applicable laws include all legislation,regulatory agreements, permits or licences. Non-compliance occurs when an organisation is served anotice or prosecuted by an authorised regulatory agency.

Compliance performance is generally reported either as the number of breaches of environmental laws orthe total financial penalty arising from those breaches. There are merits in both approaches. The numberof breaches is an indicator of the organisation’s compliance culture, whilst the scale of fines indicates themateriality of legislative breaches.

Where an organisation is large and has a number of regulatory breaches across its operations, it is useful toreport these in relation to defined severity categories. As the gravity of breaches can vary considerably, thisapproach enables the report audience to assess the seriousness of non-compliance issues.

Spills of oils, fuels, chemicals or liquid waste can potentially lead to non-compliance with environmentallaws. When spilt material is discharged to land or waterways, regulatory action may result. An organisation'srecord regarding occurrence of spills is therefore an indicator of its ongoing capacity to comply withregulatory requirements.

Compliance Indicators

Indicator Name Units Type GRI Equivalent

Compliance 1 Incidences of and penalties for Not applicable Core EN16. Incidents of and fines

non-compliance with applicable laws for non-compliance with all applicable

international declarations/conventions/

treaties, and national, sub-national,

regional, and local regulations associated

with environmental issues

Compliance 2 Significant spills of chemicals, oils Litres Core EN13. Significant spills of chemicals,

and fuels in terms of total number oils and fuels in terms of total number

and total volume and total volume


The number of regulatory breaches.

Details relating to significant regulatory breaches.

The sum of all financial penalties for regulatory breaches.

The number of spills and volume of spilt material by spill type.



AppendixALinking this Guide to the Global ReportingInitiative (GRI 2002)

The suite of indicators in this Guide is closely aligned to the environmental indicators contained within theGlobal Reporting Initiative’s (GRI) 2002 Sustainability Reporting Guidelines. The process proposedtherefore provides a basis for organisations to report in a manner that focuses on Australian needs andconditions, whilst being consistent with the GRI.

The Table below shows the links between indicators contained in this Guide and corresponding GRIindicators. Some minor deviations from the GRI have been adopted to adapt the GRI for Australianconditions, or in response to stakeholder feedback. Differences are explained in the right hand column ofthe Table.


Category Guide Indicator GRI 2002Indicator Comment

Energy Energy 1: EN3. Direct energy use This Guide indicator corresponds broadly to the GRI indicator Direct energy use (kJ) segmented by primary source and is in general alignment with the GRI draft Energy Protocol

Energy 2: EN4. Indirect energy use This Guide indicator corresponds broadly to the GRI indicator Indirect energy use (kJ) except that ‘energy used to deliver energy products’ is for

simplicity limited to the energy used to produce electricity consumed.

Energy 3: Initiatives to use EN17. Initiatives to use This Guide indicator corresponds directly to the GRI indicatorrenewable energy sources and renewable energy sources and increase energy efficiency to increase energy efficiency

Greenhouse Greenhouse 1: EN8. Greenhouse gas emissions. This Guide indicator is closely aligned to the GRI indicator Total greenhouse gas emissions (CO2, CH4, N2O, HFCs, although the Guide adopts a simplified Australian calculation (tonnes CO2 equivalent) PFCs, SF6) methodology

Greenhouse 2: No GRI equivalent aimed at reducing This Guide indicator allows organisations to report on specific Initiatives greenhouse gas emissions initiatives to decrease greenhouse gas emissions

Water Water 1: Total water use (m3) EN5. Total water use This Guide indicator corresponds directly to the GRI indicator

Water 2: EN22. Total recycling and This Guide indicator corresponds broadly Total water reused (m3) reuse of water with the GRI indicator

Water 3: Initiatives No GRI equivalent This Guide indicator, not included in the GRI allows to decrease water consumption organisations to report initiatives to minimise water or increase water reuse consumption

Materials Materials 1: EN1. Total materials use other This Guide indicator corresponds broadly with the GRI Total material use (tonnes) than water by type indicator, although fuel is excluded from the definition

of ‘material’ in this instance

Materials 2: EN2. Percentage of materials This Guide indicator is a simplified version of the Initiatives aimed at using post- used that are wastes (processed or GRI indicator to allow qualitative or quantitative assessment consumer recycled material and unprocessed) from sources external of material reusewaste from industrial sources to the reporting organisation

Waste Waste 1: Total amount of solid EN11. Total amount of waste This Guide indicator directly corresponds waste by type and destination. by type and destination to the GRI indicator

Waste 2: EN31. All production, transport, This Guide indicator modifies the wording of the Total amount of hazardous import, or export of any waste GRI indicator to adapt it for Australian conditions. Reference waste produced (as defined deemed “hazardous” under the to the Basel Convention has been removed and local by the Hazardous Waste Act terms of the Basel Convention definitions includedor State regulations) (tonnes) Annex I, II, III and VIII

Waste 3: No GRI equivalent This Guide indicator allows organisations to report specific Initiatives and improvements steps they have taken to minimise waste


Category Guide Indicator GRI 2002Indicator Comment

Emissions Emissions 1: EN10. NOx, SOx and other This Guide indicator corresponds to the GRI indicator, to Air, Land Significant emissions significant air emissions by type but is adapted to suit Australian statutory reporting and Water to air and land (tonnes) of the National Pollutant Inventory requirements performed by many organisations

(generally applicable to NPI reporters) as a requirement

Emissions 2: EN12. Significant discharges This Guide indicator is closely aligned to the GRI indicatorSignificant discharges to water to water by discharge by type

type (tonnes)

Emissions 3: Initiatives to No GRI equivalent This Guide indicator allows reporters to highlight specific reduce discharges and emissions initiatives to reduce pollution discharges and emissions

Biodiversity Biodiversity 1: EN6. Location and size of land , This Guide indicator is closely aligned to the GRI indicator Location and size of land owned leased, or managed and references the forthcoming GRI Biodiversity Protocolowned,leased or managed in in biodiversity-rich habitatsbiodiversity-rich or ecologically significant habitat areas (hectares)

Biodiversity 2: EN7. Description of the major This Guide indicator is closely aligned to the GRI indicatorMajor impacts on land owned, impacts on biodiversity associated biodiversity associated with the with activities and/or products and organisation’s activities, services in terrestrial, fresh-water, products and services and marine environments

Biodiversity 3: EN27. Objectives, programmes and This Guide indicator broadly corresponds to GRI indicatorInitiatives and Improvements targets for protecting and restoring (biodiversity) native ecosystems and species

in degraded areas

Ozone Ozone Depleting Substances 1: EN9. Use and emissions of ozone- This Guide indicator corresponds to GRI Indicator EN9 Depleting Ozone-depleting substance depleting substances emissions although for simplicity the Guide indicator suggests Substances (tonnes of CFC-11 equivalent) reporting ODS use utilising data that is relatively easy

to obtain (eg. inventory changes, purchase quantities)

Suppliers Suppliers 1: EN33. Performance of suppliers This Guide indicator broadly corresponds to GRI indicatorInitiatives to encourage relative to environmental compon-improved environmental ents of programmes and procedures performance of suppliers described in response to Governance

Structure and Management Systems section (Section 3.16 in GRI 2002)

Products Products and Services 1: EN14. Significant environmental This Guide indicator broadly corresponds to GRI indicatorand Services Describe where relevant major impacts of principal products

environmental impacts at each and servicesstage of the life cycle of principal products and services

Products and Services 2: EN15. Percentage of the weight This Guide indicator broadly corresponds to GRI indicator, Product and service stewardship of products sold that is reclaimable and includes scope to discuss initiatives where applicableinitiatives including efforts at the end of the products’ useful to improve product design and life and percentage that is actuallylessen impacts associated with reclaimedmanufacturing, use and disposal

Compliance Compliance 1: EN16. Incidents of and fines or non- This Guide indicator corresponds strongly with the GRI. Incidences of and penalties compliance with all applicable inter- Simplified language for Australian first time reportersfor non-compliance with national declarations/conventions/applicable laws treaties, and national, sub-national,

regional, and local regulations associated with environmental issues

Compliance 2: EN 13. Significant spills of chemicals, This Guide indicator directly corresponds to GRI indicatorSignificant spills of chemicals, oils, and fuels in terms of total oils and fuels in terms of number and total volumetotal number and total volume



AppendixBBasic Information and Conversion Factors

Calorific value The quantity of heat produced by a given mass of fuel upon complete combustion, generally expressed in joules per kilogram

Joule A unit of energy or work

Kilowatt hour A unit of work equivalent to the work done when a rate of work of 1,000 watts is maintained for one hour

Watt Unit of power (rate of energy use)

Abbreviations

Abbreviation Prefix Symbol

109 Giga (billion – 1,000,000,000) G

106 Mega (million – 1,000,000) M

103 kilo (thousand – 1,000) k

Equivalences

1 Watt 1 Joule/Second

1 Watt-hour 3600 Joules

1000 Watt-hours 1 Kilowatt hour (kWh)

1000 kilograms 1 tonne

1,000,000,000 Joules 1 Gigajoule (GJ)

1,000,000 litres 1 Megalitre (Ml)

1 Megalitre 1 cubic metre

Conversion Factors

Conversion Formula Units

kWh to J kWh x 3.6x106 Joules

J to kWh J x 1/3.6 x 10-6 kWh

kWh to MJ kWh x 3.6 MJ

MJ to kWh MJ x 0.278 kWh

kWh to GJ kWh x 3.6 x 10-3 GJ

GJ to kWh GJ x 278 kWh



Appendix


CFurther Information

Australian Greenhouse Office (AGO)

The AGO site is the principal source of information relating to greenhouse and ozone issues in Australia. The AGOadministers the Greenhouse Challenge program, which includes detailed methodologies for calculating greenhousegas emissions.

www.greenhouse.gov.au

The Commonwealth Department of Environment and Heritage (Environment Australia)

Environment Australia has implemented a number of initiatives to assist business with environmental reporting. The following two publications provide step-by-step guidance on preparing public environmental reporting.

A Framework for Public Environment Reporting: An Australian Approach. Environment Australia (March 2000) (also available online) www.ea.gov.au/industry/finance/publications/framework

Environmental Reporting: Handbook for Small and Medium Size Businesses. Australian Business Limited (June 2001)(also available online)

http://www.ea.gov.au/industry/finance/publications/smehandbook.html

Commonwealth Department of Family and Community Services (FaCS)

FaCS is developing two guides to assist Australian organisations to report on their social and economic performance.

www.facs.gov.au

Environment Protection and Biodiversity Conservation Act

This site contains relevant information pertaining to the EPBC Act 1999, in particular, guidance on biodiversityindicators for nationally significant flora, fauna and sites of ecological significance.

www.ea.gov.au/epbc

Global Reporting Initiative (GRI)

The Global Reporting Initiative (GRI) is an international, multi-stakeholder initiative aimed at creating a common globalframework for voluntary reporting of the economic, environmental and social impact of organisation-level activity. TheGRI mission is to elevate the comparability and credibility of sustainability reporting practices worldwide.

www.globalreporting.org

The Institute of Social and Ethical AccountAbility

AccountAbility is an international, not-for-profit, professional institute dedicated to promoting social, ethical andoverall organisational sustainability. Its AA1000 series provides a framework to assist organisations to buildaccountability and social responsibility through quality social and ethical accounting, auditing and reporting.

www.accountability.org.uk

ISO 14000 Standards

The ISO 14000 series of Standards provides management tools to assist organisations to address environmental risksassociated with their operations. The environmental management systems standard ISO 14001 provides a frameworkto identify significant environmental aspects and impacts, and provides a basis for performance improvement.

ISO 14031 provides guidance on how organisations can evaluate their environmental performance. The standardaddresses the selection of suitable performance indicators as a basis for internal and external environmental reporting.

ISO Standards are not available free of charge, however information relevant to the Standards and purchase details areavailable online.

www.iso.org/iso/en/ISOOnline.frontpage



National Pollutant Inventory (NPI)

The NPI is a database of key pollution sources across Australia. It contains information for NPI reporters, includingaccess to methodologies for emissions calculations.

www.npi.gov.au

National Round Table on the Environment and the Economy (Canada)

The NRTEE provides a simple framework and methodologies guide for organisations wishing to report eco-efficiencyindicators in public environmental reports. It focuses on core eco-efficiency indicators of energy, waste and waterintensity.

www.nrtee-trnee.ca/eng/programs/Current_Programs/Eco-efficiency/eco-efficiency_e.htm

Prime Minister’s Community Business Partnership

The Prime Minister has asked the Partnership to take forward a national framework of triple bottom line reporting forthe corporate sector. In this context the Partnership is currently developing and information statement on TBL thatwill describe the economic and social value of TBL for Australia from the perspective of business government andcommunity organisations.

www.partnership.zip.gov.au

SustainAbility

SustainAbility is a consultancy focusing on sustainable development practices. It provides many relevant onlinedocuments regarding how sustainable development philosophies and practices fit within business strategy and theTriple Bottom Line.

www.sustainability.com

United Kingdom Department of Environment, Food and Rural Affairs (DEFRA)

DEFRA coordinates environmental protection in the United Kingdom. Similar to Environment Australia, it providesonline links to United Kingdom strategies and protocols for environmental management.

www.defra.gov.uk

United Kingdom Government Sustainable Development

The United Kingdom government has established a Sustainable Development section within its Department ofEnvironment, Food and Rural Affairs to provide leadership to industry and commerce on sustainable development.

www.sustainable-development.gov.uk/

United Nations Department of Economic and Social Development

The UN Department of Economic and Social Development administers a range of programs across economic,environmental and social dimensions. It provides online links to UN initiatives and programs in sustainability, theenvironment and public reporting, along with links to information and guidance on international environmental andsustainability law, including the Montreal Protocol, the Basel Convention and the Kyoto Protocol.

www.un.org/esa/index.html

World Business Council for Sustainable Development (WBCSD)

The WBCSD is a coalition of 160 international companies united by a shared commitment to sustainable developmentvia the three pillars of economic growth, ecological balance and social progress. The WSBC has prepared Eco-efficiencyGuidelines to assist businesses to report on environmental influences in relation to product and service value. Theseguidelines are available online.

www.wbcsd.org


Appendix


DParticipating Organisations

• Australian Chamber of Commerce and Industry

• Aurion Gold

• Avcare

• Australian Greenhouse Office

• Australian Bureau of Statistics

• Barton Group

• Bendigo Bank

• BP Australia

• Canegrowers Association

• Centre for Australian Ethical Research

• Commerce Queensland

• Connell Wagner

• Consolidated Rutile

• CSR

• Commonwealth Department of Employmentand Workplace Relations

• Commonwealth Department of Family and Community Services

• Commonwealth Department of Industry,Tourism and Resources

• Commonwealth Department of NaturalResources and Environment

• Victorian Department of Transport and Regional Services

• Commonwealth Department of Treasury

• Durham Davis & Associates

• EcoSTEPS

• Energex

• Ford Motor Company of Australia

• Global Reporting Initiative

• Insurance Group Australia

• KPMG

• Melbourne Port Corporation

• Melbourne Water

• Monash Sustainability Enterprises

• MIM Holdings

• Minerals Council of Australia

• Murray Goulburn Co-operative Company

• National Pollutant Inventory

• Ocean Watch

• Origin Energy

• Quality Assurance Services

• Queensland Environmental Protection Agency

• Resources NSW

• Rio Tinto

• Sustainable Energy Authority Victoria

• SIRIS

• Sinclair Knight Merz

• Sydney Water Corporation

• Thiess

• Toyota

• University of Western Sydney

• Victorian Water Industry Association

• VicRoads

• Victorian Environment Protection Authority

• Westpac

• Westpac Governance Advisory Service

• Worthwhile Projects


AppendixEEvolution of Triple Bottom Line Reporting

The concept of public environmental reporting emerged strongly from the United Nations Conference onEnvironment and Development held in Rio de Janeiro in 1992. It was a significant contribution from thebusiness community and was an important step forward, as it allowed organisations to engage withsustainability. In the following decade, leading businesses recognised potential benefits of environmentalreporting and began voluntarily disclosing environmental performance in public documents.

In response to calls from business and industry in Australia, the Commonwealth Government publishedthe Australian Public Environmental Reporting Framework in 2000. The framework is a step-by-stepmanual for organisations wishing to prepare a public environmental report.

The next evolution in voluntary reporting was to expand environmental reporting to include social andeconomic criteria – the Triple Bottom Line (TBL). During the late 1990’s an intense international multi-stakeholder effort focused on developing a consistent set of TBL indicators for reports led to the releasein 2000 of the Global Reporting Initiative’s first Sustainability Reporting Guidelines.

In September 2002, the GRI updated its Sustainability Reporting Guidelines. These guidelines, which werelaunched at the World Summit on Sustainable Development in Johannesburg, have been well received byboth business and government. Changes include a significantly expanded suite of social and economicindicators, a cross-referenced table so readers can track content and compare reports more readily, and arevised discussion on the principles that underpin sustainability reporting.


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Appendix

Feedback FormIf you have used this Guide or simply would like to contribute to its further evolution so it can moreeffectively meet the needs of reporting organisations and their stakeholders, we would like to receive yourfeedback. This can be done either by contacting Environment Australia directly or completing appropriatesections of this form and returning it to:

DirectorIndustry Partnerships Team Policy Co-Ordination and Environment Protection DivisionEnvironment AustraliaPO Box 787 CANBERRA ACT 2601

or email [email protected]

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Have you used this Guide in developing or assisting your organisation’s environmental reporting program? Has it been useful?

Is the information in Part A – Why Report on Environmental Performance appropriate and useful for reporters or stakeholders?What additional information could be included to improve this part?

Are the environmental management indicators and methodologies appropriate and useful for reporters and stakeholders? How could they be improved?

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Are the environmental issues categories appropriate and useful for reporters and stakeholders? How could they be improved?

Are there any additional environmental issues and environmental management and performance indicators and methodologiesthat should be included? If so please provide details.

How can Environment Australia further assist and promote TBL reporting?

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