Our approach to sustainability is anchored in our Compass
A reliable, safe and competitively priced supply of energy is important to the development of the communities we live in.
Access to energy is a key contributor to the development of strong and prosperous economies. Today, access to a reliable supply of energy is considered a basic right in most developed countries, and it underpins our modern standard of living. The community at large has come to expect a reliable and competitively priced energy supply, and is increasingly expecting that this energy is produced and consumed on a more sustainable basis.
Origin produces and procures energy to supply to customers. In so doing, we often face complex choices as we try to meet the expectations of our stakeholders. We approach these challenges with confidence, knowing that our Compass will help us to make good decisions today, and every day.
In 2013 we introduced a new approach to our sustainability measurement and performance, taking guidance from the Global Reporting Initiative, in identifying and reporting against Material Aspects. Our Managing Director, Grant King, outlines our approach in the video above.
We define Material Aspects as activities which are most important and of most interest to us and to our stakeholders. We believe that if we manage these Material Aspects well, and are able to demonstrate how we have met the standard of due care, then we can be confident our business is being managed sustainably.
Initially we reported on the Material Aspects most relevant and topical for the 2013 Financial Year (FY13), and we expect to be able to report on more Material Aspects in the future.
In our online-only DataZone we disclose additional and more detailed information for FYI3, according to the guidelines of the most recent version of the Global Reporting Initiative, G4.
Highlights of our recent performance include:
an increase of $2bn on prior year.
spent on goods and services by the Australia Pacific LNG project, the majority of which has occurred in Australia.
15% improvement in Total Recordable Injury Frequency Rate in 2013.
Origin finds, develops, produces and procures energy from a range of sources including natural gas, coal, geothermal, hydro and wind. Development of these resources involves large, capital-intensive projects, which tend to occur in rural and regional communities. This brings Origin into contact with a diverse range of stakeholders, from local communities and landholders, to community representatives such as governments and media.
Our developments can both impact and create benefits for our stakeholders. For Australia Pacific LNG, the largest project we're involved in, land access and protection of water resources are very important. In our 2013 Sustainability Report we also look at impacts such as housing availability, and environmental issues such as the role of natural gas as a cleaner energy source.
Wherever we operate, we respect the rights and interests of the communities in which we operate, by listening to them, understanding and managing the environmental, economic and social impacts of our activities. Our Human Rights Policy outlines specific commitments and the international standards by which we are guided.
Origin is the leading Australian energy provider. We have 4.3 million customer accounts across electricity, natural gas and LPG. We are also one of the largest power generators, representing approximately 13 per cent of total National Electricity Market (NEM) capacity.
We therefore play an important role in the delivery of reliable, affordable and cleaner energy supply which millions of households rely on every day. Over the past year, we faced some social challenges in the delivery of energy; particularly as we sought to help our customers manage rising costs. This created a range of associated challenges for our business, including the delivery of competitive tariffs and offers, assisting those in hardship and improving customer service.
As well as delivering customers a secure, reliable and affordable supply of energy today, we continue to carefully examine a range of opportunities - both domestically and further afield - that will enable us to create tomorrow's energy solutions. We continue to progress a range of future energy opportunities, with a primary focus on natural gas and renewable fuels including hydro and geothermal.
Origin employs approximately 6,000 people predominantly across Australia, New Zealand and the Pacific. We also employ a similar number of contractors on our various energy developments. There are a number of activities we need to do well in order to ensure effective management of our business. This includes activities associated with our finance, legal, information technology, people and culture, public policy and other corporate functions.
The activities currently most important to the effective management of our business are the safety of our people, the Company's financial performance, our efforts to improve gender diversity and advocating for efficient and effective policy settings from governments.
We strive to grow our business and create value to share sustainably with all of our stakeholders. As a business, we believe it is important to create and sustainably distribute value among our key stakeholders. Our Board and management are committed to meeting the expectations of stakeholders through sound corporate governance. Our success as a business can bring important flow on benefits to other companies and the Australian economy too, particularly as we pay for products and services from other businesses such as energy network providers, infrastructure owners, engineers and construction companies. This year, there was a substantial increase in the value we distributed to key stakeholders. We distributed $15.1 billion, which was up from $13.1 billion in the prior year.
The Origin Foundation is our philanthropic foundation, which was founded in 2010 as part of the 10 year anniversary of Origin listing on the Australian Securities Exchange. The performance of the Origin Foundation is reported annually. We look forward to the continued growth and development of the Foundation's activities in coming years.