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GRI Sustainability Reporting Standards (GRI Standards)

AGL's FY20 Annual Report and data centre has been prepared in accordance with the GRI Standards: Core option. The GRI Standards are designed to be used by organisations to report about their impacts on the economy, the environment and/or society.

Foundation and general disclosures

GRI Standard

Chosen disclosure(s)

Response

Omission

GRI 102: General Disclosures 2016

102-1: Name of the organization

AGL Energy Limited

102-2: Activities, brands, products, and services

The principal activities of AGL during FY20 consisted of the operation of energy businesses, and investments, including electricity generation, gas storage and the sale of electricity and gas to residential, business and wholesale customers. The acquisition of Southern Phone Company in December 2019 expanded AGL’s activities to include the retailing of broadband and mobile services. Refer to How we create value section in the FY20 Annual Report, as well as our map of assets on the Infrastructure scorecard.

102-3: Location of headquarters

AGL's head office is located at L24/200 George Street, Sydney, NSW, 2000. Refer also to the Contact us section of the AGL website.

102-4: Location of operations

AGL operates in Australia. While AGL undertakes some activities in some overseas jurisdictions it has no assets, customers nor direct employees outside of Australia.

102-5: Ownership and legal form

Refer to Shareholding information.

102-6: Markets served

AGL sells gas and electricity to customers in New South Wales, Victoria, South Australia, Queensland, and Western Australia. AGL services residential, business, commercial and industrial, and wholesale market segments. The acquisition of Southern Phone Company in December 2019 expanded AGL’s activities to include the retailing of broadband and mobile services. Refer to the Customer services data series for further information.

102-7: Scale of the organization

Total number of employees is reported in Employees by location. Assets are displayed on the map in the Infrastructure scorecard. Key financial data is available in the Financial review. The quantity of energy sold is reported in Energy sold.

102-8: Information on employees and other workers

The Employees by employment status chart shows a breakdown of permanent versus fixed term and full-time versus part-time employee by gender. This information is not broken down by region, however the Employees by location chart provides a breakdown of all employee types by location and gender. The number of hours worked by contractors versus the number of hours worked by employees is available in the Health and safety - contractors and Health and safety - employees charts respectively. Footnotes provided for each chart detail any relevant assumptions.

The number of employees is separately broken down by contract type, location, employment status and gender. Providing additional combinations of breakdowns is considered not applicable to our organisation, as these disclosures do not cover the specific impacts that make the topic material.

102-9: Supply chain

AGL's supply chain extends to in excess of 3,000 vendors (refer to Supplier profile). Location information on suppliers is available in the First tier suppliers table. AGL has embedded a Supplier Code of Conduct into procurement practices. Details of supplier performance against the Code of Conduct can be found in the Supplier performance table.

102-10: Significant changes to the organization and its supply chain

Changes to AGL's Board composition during FY20 are outlined in the Governance summary. Acquisition of subsidiaries and businesses and Disposal of subsidiaries and businesses is detailed in section 1.1.3 of the FY20 Annual Report. Issued Capital of AGL at 20 July 2020 is available in Shareholding information. AGL has not had significant changes in location of suppliers, the structure of supply chain or relationships with suppliers in FY20.

102-11: Precautionary Principle or approach

AGL's approach to risk management and business resilience is provided in the Operating environment section of the Annual Report. Our HSE Policy generally reflects the precautionary approach to environmental issues.

102-12: External initiatives

AGL is a signatory to a number of external initiatives, including:
- United Nations Global Compact (from FY17). Refer to the UNGC Communication on Progress.
- We Mean Business coalition (AGL has signed up to three commitments from FY16).
- The Energy Charter (from 1 January 2019) is a whole-of-industry initiative to embed customer-centric culture and conduct in energy businesses to create real improvements in affordability and service delivery.

These are non-binding, voluntary initiatives.

102-13: Membership of associations

Industry associations which AGL is a member of are listed in the Industry associations table.

102-14: Statement from senior decision-maker

Refer to the Managing Director and CEO's Report in the FY20 Annual Report.

102-15: Key impacts, risks, and opportunities

AGL's approach to risk management and business resilience is provided in the Operating environment section of the FY20 Annual Report.

102-16: Values, principles, standards, and norms of behaviour

AGL's purpose and values are outlined in the Purpose, values & strategy section in the FY20 Annual Report.

AGL's Code of Conduct is included in the induction pack for all our new starters. We run a structured induction program that requires the completion of compulsory compliance training modules. Each compliance module includes a quiz to test understanding, with defined pass mark requirements. On an annual basis, our people are required to complete mandatory compliance training topics. Refer to Training data in the data centre. Our people are also required to make an annual declaration indicating whether or not they have any actual or potential conflicts of interest.

102-18: Governance structure

An overview of governance and board committees is provided in the Governance summary.

102-40: List of stakeholder groups

A list of stakeholder groups is detailed in the Communities and relationships scorecard.

102-41: Collective bargaining agreements

The percentage of people employed under enterprise bargaining agreements is available in the Awarded employees chart.

102-42: Identifying and selecting stakeholders

Refer to the Operating environment section and Communities & relationships scorecard.

102-43: Approach to stakeholder engagement

Refer to the Operating environment section and Communities & relationships scorecard.

102-44: Key topics and concerns raised

Refer to the Operating environment section and Communities & relationships scorecard.

102-45: Entities included in the consolidated financial statements

Entities included in the consolidated financial statements are available in AGL's Financial Report.

102-46: Defining report content and topic Boundaries

Refer to 103-1 for each of the material topics below.

102-47: List of material topics

AGL has in the past undertaken an independently facilitated materiality review every alternate year involving stakeholder surveys and interviews. Material issues identified formed the basis of areas of focus for AGL’s sustainability reports. While this process was fit for purpose at the time, undertaking a stand-alone survey is now considered to be unnecessary due to the maturation of stakeholder engagement and risk processes, both outlined in the Operating environment section of the FY20 Annual Report. AGL has leveraged and combined the outputs of its Tier 1 Strategic Risk identification process, stakeholder engagement surveys and investor feedback and consolidated this into a list of six material topics for the purposes of GRI reporting: climate change; energy policy; social licence; affordability; reliability; and transition. This list of material topics was reviewed by the Audit & Risk Management Committee during FY20. Each of these material topics have impacts both inside and outside of the organisation, and many cut across AGL's seven Business Value Drivers.

102-48: Restatements of information

Any restatements of previous years’ data are identified within footnotes to charts or tables. The effects of any such re-statements are not considered to be material to stakeholders.

102-49: Changes in reporting

Refer to About this report section.

102-50: Reporting period

1 July 2019 - 30 June 2020

102-51: Date of most recent report

8 August 2019

102-52: Reporting cycle

Annual

102-53: Contact point for questions regarding the report

Social media contact points are available in the Connect section.

102-54: Claims of reporting in accordance with the GRI Standards

This report has been prepared in accordance with the GRI Standards: Core option. Refer also to the About this report section.

102-55: GRI content index

This index meets the requirements of 102-55.

102-56: External assurance

Refer to the Assurance section in About this report. It is AGL's intention to continue to have future sustainability disclosures assured to the AA1000 Assurance Standard and/or ASAE 3000 Standard.

Reliability

GRI Standard

Chosen disclosure(s)

Response

Omission

GRI 103: Management Approach 2016

103-1: Explanation of the material topic and its boundaries

Refer to the Infrastructure scorecard.

Reliability of energy is experienced externally by our customers in the states in which we operate. The reliability of our own assets also impacts AGL's financial performance.

We have some direct control on reliability, such as maintaining our existing generation assets and investing in new, reliable forms of generation. Other contributing impacts include energy policy; regulation; and availability and reliability of generation provided by other players in the energy market.

103-2: The management approach and its components

Refer to the Infrastructure scorecard.

103-3: Evaluation of the management approach

Refer to Infrastructure scorecard and the Infrastructure section of the data centre for performance measures and discussion.

Social licence

GRI Standard

Chosen disclosure(s)

Response

Omission

GRI 103: Management Approach 2016

103-1: Explanation of the material topic and its boundaries

Refer to the Purpose, values and strategy section and Communities and relationships scorecard.

AGL recognises that community trust in institutions, including energy companies, is low. Social licence is one of AGL's three strategic priorities, and demonstrates our commitment to driving the cultural change necessary to gain the increased trust of our customers and the community, which, in turn, is needed to deliver long-term sustainable value for our shareholders. Managing our social licence enables us to pursue our growth agenda and requires a commitment to transparency and investment in the community.

The impacts of social licence to operate are experienced internally and outside of the organisation. We engage directly with shareholders, customers, local communities, and the broader society to develop trust in the community.

103-2: The management approach and its components

Refer to the Communities and relationships scorecard.

AGL's external policies include:
Political Donations Policy
Community Engagement Policy
Industry Associations Policy
Community Complaints and Feedback Policy
AGL Supplier Code of Conduct

AGL has also established the following internal policies:
• Tax Risk Management Policy: sets out clear objectives and accountabilities for managing tax risk. The policy is endorsed by the Board and reviewed every two years.

103-3: Evaluation of the management approach

Refer to Communities and relationships scorecard for performance measures and discussion.

GRI 413: Local communities

413-1: Operations with local community engagement, impact assessments, and development programs

100% of AGL's operational assets have publicly available environmental impact assessments, local community development programs and formal local community grievance processes.

Affordability

GRI Standard

Chosen disclosure(s)

Response

Omission

GRI 103: Management Approach 2016

103-1: Explanation of the material topic and its boundaries

Refer to the Customers scorecard and COVID-19 response section.

Affordability is an issue experienced externally by our customers in the states in which we operate. We have some direct control on energy prices and affordability. Other contributing impacts include energy policy, regulation, wholesale energy costs, and transmission costs.

103-2: The management approach and its components

Refer to Customers scorecard.

AGL has the following external policies:
Customer Hardship Policy (Staying Connected)
AGL Dispute Resolutions Policy
Customer Charter

AGL has also established the following internal policies:
• Domestic violence policy: ensures calls are transferred to hardship specialists, ensures the availability of flexible payment arrangements and debt relief on a case-by-case basis, and provides for additional steps being taken to protect account privacy.

Also refer to AGL's disclosures under the Energy Charter, available at theenergycharterpanel.com.au/industry-disclosures

103-3: Evaluation of the management approach

Refer to Customers scorecard as well as COVID-19 response section for performance measures and discussion.

Also refer to AGL's disclosures under the Energy Charter, available at theenergycharterpanel.com.au/industry-disclosures

Climate change

GRI Standard

Chosen disclosure(s)

Response

Omission

GRI 103: Management Approach 2016

103-1: Explanation of the material topic and its boundaries

Refer to the Environment scorecard in the Annual Report.

The impacts of climate change are experienced within and outside our organisation. Impacts of climate change are also experienced outside the organisation, by customers, communities, and the environment in Australia and globally. We engage directly with the issue of climate change. Our Climate Statement sets out clear commitments for our operations and future investments.

AGL's greenhouse gas emissions are provided in the Greenhouse and energy section of the data centre.

103-2: The management approach and its components

Refer to the Environment scorecard in the Annual Report, the AGL Climate Statement and AGL's Pathways to 2050 TCFD report.

103-3: Evaluation of the management approach

Refer to the Environment scorecard in the Annual Report and AGL's Pathways to 2050 TCFD report for performance measures and discussion.

GRI 305: Emissions 2016

305-1: Direct (Scope 1) GHG emissions

Refer to the Operational greenhouse gas footprint and net energy production chart in the data centre.

Greenhouse gases included in AGL's footprints include CO2, CH4, N2O, HFCs, PFCs and SF6.

Emission factors and global warming potentials are sourced from the National Greenhouse and Energy Reporting (Measurement) Determination 2008, as amended for the relevant reporting year.

AGL does not report emissions of CO2 from biogenic sources as these emissions are considered immaterial to AGL's operational greenhouse gas footprint. Furthermore, there is no requirement (or associated methodology) for reporting these emissions under the National Greenhouse and Energy Reporting Act 2007.
Therefore, this disclosure is considered not applicable, because it does not cover the specific impacts that make the topic material to our organisation.

305-2: Energy indirect (Scope 2) GHG emissions

Refer to the Operational greenhouse gas footprint and net energy production chart in the data centre.

305-3: Other indirect (Scope 3) GHG emissions

Refer to the Energy supply greenhouse gas footprint in the data centre for further information.

All emissions data are calculated in CO2 equivalent. Breakdown of this data by specific greenhouse gas is not available.

AGL does not report emissions of CO2 from biogenic sources as these emissions are considered immaterial to AGL's indirect (scope 3) emissions footprint.
Other indirect (scope 3) emissions are considered immaterial to AGL's indirect (scope 3) emissions footprint.
Therefore, disclosure of biogenic and other indirect (scope 3) emissions is considered not applicable, because they do not cover the specific impacts that make the topic material to our organisation.

305-4: GHG emissions intensity

Refer to the Carbon intensity of operated and controlled generation assets chart in the data centre.

Energy policy

GRI Standard

Chosen disclosure(s)

Response

Omission

GRI 103: Management Approach 2016

103-1: Explanation of the material topic and its boundaries

Refer to Communities and relationships scorecard. The impact of energy policy is experienced internally and outside the organisation.

103-2: The management approach and its components

Refer to Communities and relationships scorecard.

103-3: Evaluation of the management approach

Refer to Communities and relationships scorecard.

GRI 415: Public Policy 2016

415-1: Political contributions

Refer to Communities and relationships scorecard. No political donations (monetary or in-kind) were made during FY20, nor were any political donations made through third parties.

Transition

GRI Standard

Chosen disclosure(s)

Response

Omission

GRI 103: Management Approach 2016

103-1: Explanation of the material topic and its boundaries

Refer to the Communities and relationships, Environment and Infrastructure scorecards. The impact of the energy transition are experienced internally and outside the organisation.

103-2: The management approach and its components

Refer to the Communities and relationships, Environment and Infrastructure scorecards.

103-3: Evaluation of the management approach

Refer to the Communities and relationships, Environment and Infrastructure scorecards.

Notes

  • Further information about the GRI Standards is available at the GRI website.

  • For the purposes of applying the GRI Standards, the material themes we identified have been mapped back to the available topic-specific GRI Standards. The table outlines which topic-specific GRI Standards (and associated Disclosures) have been used to compile this report, and the topic boundaries for each material issue.

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