Highlights

Environmental

Since the creation of Origin Energy in 2000, we have factored into all our major investment decisions a cost to emitting greenhouse gases into the atmosphere in anticipation that, for a long-term business like our own, this would reflect the community's response to the long-term challenges of climate change

Consistent with that long-term view, we have developed over ten years a portfolio of owned and operated power plants that generate electricity with about half the emissions of the Australian average much lower than the other major Australian electricity retailers that own and operate their own electricity generation.

We have also invested hundreds of millions of dollars over that time in developing new forms of large-scale renewable energy:

• As a joint venture partner with Geodynamics Limited, Origin has been investing in cutting-edge technology to develop baseload renewable electricity from the hot rocks of the Australian desert
• After many years working to refine the SLIVER® concept first developed at the Australian National University, we recently announced the Transform Solar joint venture with microchip manufacturer Micron to explore the large-scale production of more efficient and affordable solar panels
• We are in the feasibility stage of a joint venture partnership with PNG Energy Developments Limited to transform power generation on the Australian mainland, providing access for the first time to a large-scale year-round source of renewable baseload power by building a hydro power station in the Wabo region of Papua New Guinea for use both there and in Australia
• We own 52.8% of Contact Energy in New Zealand which is one of the world's top 10 generators of geothermal electricity - baseload renewable energy powered by New Zealand's hot underground aquifers
• We also invest in wind farms, with one of the largest development portfolios in Australia and, at Stockyard Hill, Australia's largest permitted windpower development

For our customers, we continue to develop new products and services to broaden the choices we make available to people concerned about their carbon emissions:

• For a long time we have been Australia's leading provider of GreenPower, both by market share and by the percentage of our customer base who choose GreenPower, and the leading innovator in the development of new GreenPower products and carbon offsets (for example we are the only provider of a green gas product)
• Our Energy Institute provides advice and easy access to third party resources for home and business owners seeking to learn more about energy efficiency and reduce their own consumption
• In May 2010 we helped introduce Australia's first public on-street electric vehicle charging station, which utilises 100 per cent GreenPower provided by Origin. The charging station was introduced as part of a trial initiative between GoGet CarShare, ChargePoint Australia, the City of Sydney and Origin
• Our Cogent business provides carbon-efficient tri-generation for large buildings and local precincts, and recently co-developed the City of Sydney's Decentralised Energy Master Plan - Trigeneration, a key component of Sustainable Sydney 2030
• Origin has formed a $12.7 million partnership with the Australian Carbon Trust to accelerate the uptake of energy efficiency technologies and practices by Australian businesses through the reduction of upfront capital expenditure.

Social

Origin's first priority in everything we do is the safety of our people. We report every year our aspirations and our progress in making Origin a safe place for all our employees and contractors to work. There remains a lot of work to do, however, to meet our long-term aspiration of zero harm and the shorter-term goals we have set ourselves. You can see our progress over the last four years and a case study of one successful initiative in 2010.

As Origin has grown, so too has our Power On program, which provides over $3 million in financial support and energy efficiency advice to customers experiencing financial difficulty and was recently expanded by another $1 million.

Our Schools energy programs have educated 500,000 kids and their families about using energy wisely.

In addition to a limited number of sponsorships designed to help us engage with regional communities (for example Townsville's Eco fiesta and the Chinchilla Melon Festival) we seek to make a lasting contribution in communities where we have a significant direct impact. Examples include:

• the Community Skills scholarships we provide for local trainees in our coal seam gas communities so they can build a career in their home town; and
• our CARS road safety partnership with the Royal Automobile Club of Queensland, which provides driver training free of charge to all adults who request it around the areas of Dalby, Chinchilla, Miles and Roma
• A long-term partnership with the Bishops Action Foundation to develop a collaborative social services house in the Harewa community near our Kupe Joint Venture production facilities in New Zealand
• Funding and volunteer time, in association with Conservation Volunteers, to help protect the native Coastal Bitter-bush, a threatened species in the area adjacent to our Quarantine Power Station on Torrens Island in South Australia
• Ongoing support of environmental projects identified by the community within the Heytesbury District Landcare Network area neighbouring our Otway facilities and Mortlake Power Station project
• We work with indigenous communities in a range of ways in our areas of operation. We also offer a housing support service, operated in conjunction with The Salvation Army's Indigenous Division, which provides support to over 50 families across eastern Australia in 2010, 23 of which have now progressed into long-term housing units from being recently homeless

In February 2010 it was announced that Origin would put aside $50 million to establish the Origin Foundation  with its Board of Directors. The Origin Foundation invests the proceeds of the returns on that $50 million to fund a variety of philanthropic activities. Consistent with Origin's focus on investing for the long-term, the Foundation has decided to focus its activities in the area of education and training, building a brighter future for the individuals we support and the communities of which they are a part. Its first divestments were announced in late 2010. Origin pays for all staff and running costs of the Foundation, allowing the full proceeds of the return on $50 million to be invested in philanthropic activities

In everything we do, it is not just the money we invest but the way we engage with customers and communities that makes a difference. While our form of engagement varies across the local communities in which we have major operations, it is a priority in all locations. View a summary of our actions in FY 2010. We also meet twice a year with NGOs and other representatives of the social sector through our National Customer Consultative Council.

Economic

The Total Shareholder Returns to shareholders in Origin over the period 2005-2010 was 127%, compared to an average of 26% across all ASX top 100 companies.

In the smaller communities in which we operate our coal seam gas and other major projects, our investments contribute to the economic wellbeing of those towns and we seek where we can to use local people and local suppliers.

In FY 2010 we paid $743 million in taxes and government charges to all levels of Australian government and approximately $449 million in employee wages, salaries and superannuation.