UN Global Compact: Communication on Progress
I am pleased to affirm my support for the ten Principles of the United Nations Global Compact covering the areas of Human Rights, Labour, Environment and Anti-Corruption.
Since becoming a signatory to the United Nations Global Compact (UNGC) in 2016, AGL is proud to be one of over 9,500 business signatories to the UNGC across 160 countries, including over 150 actively participating organisations in Australia.
Managing Director & CEO, AGL Energy Limited
13 August 2020
Below, you will find our FY20 UNGC Content Index, designed to provide our stakeholders with an overview of how we are meeting or implementing the UNGC principles through links to relevant sections of AGL’s FY20 reporting suite.
Response or link to 2019 Reporting Suite
Businesses should support and respect the protection of internationally proclaimed human rights
During FY20, AGL released its Human Rights Policy. This Policy applies to all our businesses and transactions in all countries within which we operate, and covers: AGL and all subsidiary and affiliate entities over which we exercise control; and all directors, officers and employees of AGL.
AGL operates in Australia only in accordance with the laws of Australia.
Make sure that they are not complicit in human rights abuses
Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining
AGL upholds the freedom of association and the right to collective bargaining, as set out in AGL’s Human Rights Policy. As at end of FY20, more than 44% of AGL's workforce was covered by collective bargaining agreements.
The elimination of all forms of forced and compulsory labour
AGL operates in Australia only in accordance with the labour laws of Australia and AGL’s Code of Conduct which is underpinned by the Company Values.
AGL's Supplier Code of Conduct, which was updated during FY20, prohibits our suppliers from engaging in any form of child, forced or involuntary labour, and requires them to adhere to all international standards and domestic regulations relating to the employment of children.
The Supplier Code of Conduct also makes clear that AGL expects its suppliers to comply with modern slavery laws and regulations, and identify, address and report on risks of modern slavery practices in their business operations and supply chains. AGL will be reporting its first Modern Slavery Statement in accordance with the Commonwealth Modern Slavery Act 2018 in December 2020.
The effective abolition of child labour
The elimination of discrimination in respect of employment and occupation
The People scorecard within AGL's Annual Report describes our approach to diversity and inclusion, and the removal of discrimination, and how these attributes are promoted and embedded throughout our business. Further information on our approach to diversity and inclusion is also available on our website.
Our Supplier Code of Conduct requires our suppliers to promote an inclusive workplace free of discrimination, harassment, bullying and other unlawful behaviour on discriminatory grounds.
Businesses should support a precautionary approach to environmental challenges
AGL’s Health, Safety and Environment Policy, which was revised in FY20, sets out our commitment to conduct our business in a way that minimises our impact on the environment.
Our approach to climate change is reflected in AGL’s Climate Statement, released in FY20, which confirms AGL’s target of net zero emissions by 2050. We expand on our approach to climate change in the Environment scorecard in our FY20 Annual Report, and in our supplementary FY20 ‘Pathways to 2050’ Report, which is prepared in accordance with the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) voluntary disclosure framework.
Undertake initiatives to promote greater environmental responsibility
We are committed to playing our part as Australia transitions toward full decarbonisation by 2050, including through the five commitments we have made through the AGL Climate Statement.
Encourage the development and diffusion of environmentally friendly technologies
Businesses should work against corruption in all its forms, including extortion and bribery
AGL has embedded risk-based anti-bribery and corruption controls throughout our processes and policies, including within the AGL Code of Conduct and the Anti-Bribery Corruption and Fraud (ABCF) Policy. Work is currently underway to identify areas of opportunity for aligning AGL’s ABCF strategy with the best practices recommended by the standards ISO 37001 Anti-bribery Management Systems and AS 8001 Fraud and Corruption Controls.
We also have a comprehensive Anti-Money Laundering / Counter-Terrorism Financing Compliance Program and an Australian Financial Services Licence Compliance Program within our wholesale markets (energy trading) areas. In this regard we conduct regular risk assessments to determine the adequacy of the controls that are in place.