AGL Energy Limited · ASX:AGL
AGL Energy — ESG Presentation (November 2010)
33 slides from AGL Energy's sustainability presentation, Nov 23, 2010
Slide 1: ASX release: AGL releases 2010 Sustainability Report
AGL Energy Limited Locked Bag 1837 Level 22, 101 Miller St T: +61 2 9921 2999 ABN: 74 115 061 375 St Leonards NSW 2065 North Sydney NSW 2060 F: +61 2 9921 2552 AUSTRALIA AUSTRALIA www.agl.com.au ASX release AGL releases 2010 Sustainability Report market presentation 23 November 2010 Attached is AGL’
Slide 2: 2010 Sustainability Report
2010 Sustainability Report AGL Energy Limited| 23 November 2010 | AGL External
Slide 3: Disclaimer
2 Disclaimer The information in this presentation: This presentation is not intended as an offer offer, invitation, invitation solicitation or recommendation with respect to the purchase or sale of any security in the United States or any other jurisdiction. Securities may not be offered or sold in
Slide 4: Agenda
3 Agenda g › AGL’s sustainability strategy › Overview O i off 2009/ 2009/10 0 sustainability i bili performance f » Economic » Customers C t » People » Community » Environment » Climate change › Assurance » 2010 Sustainability Report » 23 November 2010 » AGL External
Slide 5: AGL's sustainability strategy
4 AGL’s sustainability strategy Michael Fraser M Managing i Di Director and d CEO » Presentation Title » February 2008 » AGL Internal
Slide 6: Sustainability and energy markets
5 Sustainability y and energy gy markets › Sustainability has always been critical to AGL’s success » We have h been b operating i since i 1837 83 » We are a provider of an essential service › T Today, d energy policy li makers k are increasingly i i l focused f d on three th global issues: » Climat
Slide 7: Sustainability blueprint
6 Sustainability y blueprint p Economic Climate Change Environment Ongoing g gpprofitability y Carbon risk Environmental risk 2010/11 target: 2010/11 target: 2010/11 target: $450 - $480 million Underlying Profit Emissions intensity > 50% below Update, establish and monitor Australian average environ
Slide 8: Sustainability blueprint
7 Sustainability y blueprint p Customers People Community Customer experience Employee engagement Community engagement 2010/11 target: 2010/11 target: 2010/11 target: Establish new customer satisfaction Engagement score > 65% 100% implementation of community score and target engagement plans Vision:
Slide 9: Overview of 2009/10 sustainability performance
8 Overview of 2009/10 sustainability performance Michael Fraser Managing Director and CEO » Presentation Title » February 2008 » AGL Internal
Slide 10: Economic
9 Economic » Presentation Title » February 2008 » AGL Internal
Slide 11: Ongoing profitability
10 Ongoing g gpprofitability y Underlying Profit Performance 2009/10 AGL delivered an Underlying Profit $ million of $428.9 million for 2009/10, 500 representing a 13.2% increase $480 FY11 compared to 2008/09. forecast 450 range $429 $450 The 2009/10 result was driven by 400 a strong Retail Energy $
Slide 12: Sustainable growth
11 Sustainable growth g Debt capacity Performance 2009/10 In its annual review, S&P reaffirmed AGL’s credit rating of BBB/stable. Additionally, dd ll S&P reduced d d the h amount required to be capitalised for the payment stream arising under wind farm Power Purchase A Agreements f from 100 percent
Slide 13: Customers
12 Customers » Presentation Title » February 2008 » AGL Internal
Slide 14: Customer experience
13 Customer experience p Ombudsman complaints* Performance 2009/10 Performance during 2009/10 has 2009/10** 17,470 been consistently higher than the August 2008 benchmark score of -54.9 percent. NPS for the final quarter off 2009/10 / was -47.3, 2008/09 22,387 slightly lower than the peak score in M
Slide 15: Customer hardship
14 Customer hardship p Staying Connected return customers Performance 2009/10 2% The average level of debt of customers on Staying Connected 8% is $1,382. First time Staying Connected customer Off the h Staying Connected d participants at 30 June 2010, Return Staying 36% have been on the program Con
Slide 16: People
15 People » Presentation Title » February 2008 » AGL Internal
Slide 17: Employee engagement
16 Employee p y engagement g g Employee engagement Performance 2009/10 AGL set a target to increase engagement by 7% compared to 2008/09, and exceeded this target with a 10.7% increase. Target 2010/11 2006/07 2007/08 2008/09 2009/10 2010/11 Engagement g g score at ‘best Engagement score Target Hewit
Slide 18: Organisational safety
17 Organisational g safety y Total injury frequency rate Performance 2009/10 8.0 In 2009/10, AGL performed better 7.3 than the total injury frequency 7.0 rate (TIFR) target of 3.9, 6.0 6.0 achieving a result of 2.7. 5.0 The 2009/10 TIFR of 2.7 represents a 58% improvement 4.0 on 2008/09 results. 3.0
Slide 19: Community
18 Community » Presentation Title » February 2008 » AGL Internal
Slide 20: Community engagement
19 Community y engagement g g Community feedback at Burra Information Performance 2009/10 Centre 30 1,200 AGL’s Power Development group implemented a new Project plainants 25 1,000 Management Framework requiring community engagement plans to b d be developed l d as part off the h Number of issues/co
Slide 21: Community contribution
20 Community y contribution Community contribution Performance 2009/10 Building our brand Using the London Benchmarking 4% Group model, AGL’s total 4% community investment (including Supporting the local 7% cash, staff volunteering and in community k d contributions) kind b ) in 2009/10 / Partnershi
Slide 22: Environment
21 Environment Sue Brown AGL Environment E i Manager » Presentation Title » February 2008 » AGL Internal
Slide 23: Environmental risk
22 Environmental risk Noise › The generation of noise is an unavoidable characteristic of Performance 2009/10 some of AGL’s business activities, notably y thermal generation of electricity, and drilling undertaken as part of AGL’s environmental risk profile coal seam gas (CSG) and geothermal project
Slide 24: Water management
23 Water management g Consumed water Produced water Performance 2009/10 IIn recognition iti off th the priority i it given i 33% potable water Water produced from to the need to understand and 67% groundwater coal seam gas projects manage the water issues associated with coal seam gas projects, j t
Slide 25: Climate change
24 Climate change Tim Nelson Head of Economic Policy and Sustainability » Presentation Title » February 2008 » AGL Internal
Slide 26: Carbon risk
25 Carbon risk Carbon intensity of operated generation Performance 2009/10 portfolio tCO2e/MWh The carbon intensity of AGL’s 1 operated portfolio fell in 2009/10, 0.9 after reaching a plateau over the 58% > 50% 0.8 last two years. 0.7 0.6 AGL’s intensity is currently 58% 0.5 below the Australian ele
Slide 27: Energy generation sources
26 Energy gy generation g sources Installed capacity of operated electricity Performance 2009/10 generation MW A further 223.5 MW of renewable 3,000 energy generation projects commenced commercial operation 2,500 in 2009/10. 2,000 45% 37% 43% The deployment of Bogong Hydro Power Station and the AGL
Slide 28: External recognition
27 External recognition » Presentation Title » February 2008 » AGL Internal
Slide 29: AGL recognised as an industry leader
28 AGL recognised g as an industry y leader Dow Jones AGL is a constituent company in the Dow Jones Sustainability World Sustainability World Index (DJSI World) 2010/11, and the Index Asia Pacific Dow Jones Sustainability Index (DJSI Asia Pacific) 2010/11. FTSE4Good Index AGL is a constituent compan
Slide 30: Assurance
29 Assurance » Presentation Title » February 2008 » AGL Internal
Slide 31: Assurance
30 Assurance Independent Assurance provided by Net Balance Management Group to the AA1000 2008 Assurance Standard › A ‘Type 2 – Moderate Level’ of assurance was undertaken which both assesses how well AGL meets the AA1000 2008 AccountAbility Principles of Inclusively, Inclusively Materiality and Res
Slide 32: Questions
31 Questions » Presentation Title » February 2008 » AGL Internal
Slide 33: Further information
32 Further information. Website: www.agl.com.au S Sustainability i bili bl blog: www.aglblog.com.au lbl Contact details: John Hobson Nathan Vass Head of Capital Markets Head of Media phone: +61 2 9921 2789 phone: +61 2 9921 2264 mobile: + 61 (0) 488 002 460 mobile: + 61 (0) 405 040 133 e-mail: john.