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Triple Bottom Line


Reporting in Australia
A Guide to Reporting Against
Environmental Indicators

June 2003

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Triple Bottom Line


Reporting in Australia
A Guide to Reporting Against
Environmental Indicators

June 2003

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Commonwealth of Australia 2003


ISBN 0 642 54937 0
Information presented in this document may be reproduced in whole or in part for study or training purposes or to provide wider
dissemination for public response, subject to inclusion of acknowledgment of the source and provided no commercial usage or sale
of the material occurs. Reproduction for purposes other than those given above requires written permission from Environment
Australia. Requests for permission should be addressed to:
First Assistant Secretary
Policy Co-Ordination and Environment Protection Division
Environment Australia
GPO Box 787
Canberra ACT 2601
Disclaimer
While reasonable efforts have been made to ensure the contents of this Guide are factually correct, the Commonwealth does not
accept responsibility for the accuracy or completeness of the contents, and shall not be liable for any loss or damage that may be
occasioned directly or indirectly through the use of, or reliance on, the contents of this Guide.
Reference to any company, product or service in this booklet should not be taken as Commonwealth endorsement of that company,
product or service.
Designed by Racheal Brhn Design
Edited by Agile Communications
Printed by Paragon Printers

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Foreword

Foreword
There is growing recognition that business has a crucial role to play
in helping Australia to become more sustainable. As a result many
Australian organisations are responding by reducing their
environmental impacts and risks, for example by decreasing water
use and minimising greenhouse emissions. In addition, a wide
range of stakeholders, including the finance sector, are beginning
to consider corporate environmental performance in their
purchasing and investment decisions, and thus seek robust
information on an organisations environmental performance.
A number of leading organisations, both internationally and in
Australia, are responding to these opportunities and challenges by
measuring, managing and disclosing their environmental
performance through the publication of public environmental or
triple bottom line reports. These companies are reaping significant
benefits such as an enhanced reputation, attracting and retaining
staff, and a competitive advantage with customers and suppliers,
which of course all add to their financial bottom line.
For the last five years the Howard Government, through Environment Australia, has been at the forefront
of promoting public environmental and triple bottom line reporting in Australia. With the provision of key
publications, such as A Framework for Public Environmental Reporting An Australian Approach, and
working cooperatively with industry, we have seen a steady increase in the number of organisations
publishing environmental reports, from just one in 1993 to approximately 100 in 2003.
During this time there have also been a number of international guides released that have contributed to
the increased reporting in Australia. Of these, the Global Reporting Initiatives Sustainability Reporting
Guidelines enjoys wide industry and government support.

Triple Bottom Line Reporting in Australia A Guide to Reporting Against Environmental Indicators builds
on these existing guides and complements the Global Reporting Initiatives work by providing Australian
organisations with tangible and easy to use methodologies for measuring performance against key
environmental indicators. Through this approach, this guide will assist organisations seeking to improve and
communicate their environmental performance.
With the release of this guide, the Howard Government continues to contribute, at a national level, to the
quality and quantity of public environmental and triple bottom line reporting in Australia.
I commend this guide to you.

Dr David Kemp MP
Minister for the Environment and Heritage

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Table of Contents

Table of Contents
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv
Acknowledgements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v
Part A Why Report on Environmental Performance
Chapter 1

About this Guide. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3


Purpose of this Guide. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Who is this Guide for? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Relationship with Other Reporting Frameworks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
How to Use this Guide. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Chapter 2

Benefits of TBL Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Chapter 3

Environmental Indicators, Methodologies and Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8


Boundary Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Identifying Stakeholders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Identifying and Selecting Environmental Indicators. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Methodologies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Measuring and Presenting Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Part B Detailed Methodologies for Environmental Management and Performance


Chapter 4

Environmental Management Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Chapter 5

Environmental Performance Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20


Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Greenhouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Water. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Waste Solid and Hazardous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Emissions to Air, Land and Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Biodiversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Ozone Depleting Substances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Products and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Compliance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Appendix A Linking this Guide to the Global Reporting Initiative (GRI 2002) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Appendix B Basic Information and Conversion Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Appendix C Further Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Appendix D Participating Organisations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Appendix E Evolution of Triple Bottom Line Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Appendix F Feedback Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

iv

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Acknowledgements

Acknowledgements
Triple Bottom Line Reporting in Australia A Guide to Reporting Against Environmental Indicators was
prepared for Environment Australia by Maunsell Australia Pty Ltd.
In developing this Guide a number of key resources were utilised, in particular:
Environment Australias A Framework for Public Environmental Reporting. An Australian Approach.
The Australian Greenhouse Offices Greenhouse Challenge Factors and Methodologies Workbooks.
The National Pollutant Inventorys Industry Handbooks.
The Global Reporting Initiatives 2002 Sustainability Reporting Guidelines and reporting protocols.
The World Business Council for Sustainable Developments Measuring Eco-Efficiency. A Guide to
Reporting Company Performance.
The United Kingdom Department of Environment, Food and Rural Affairs guides: Environmental
Reporting Guidelines for Company Reporting on Water and Environmental Reporting Guidelines
for Company Reporting on Waste.
Environment Australia gratefully acknowledge Bendigo Bank and Murray Goulburn Co-Operative
Company Limited, who road tested and provided valuable comments on the suitability of the Guides
indicators and methodologies.
Environment Australia would also like to thank those organisations and individuals that contributed
through the stakeholder workshops and/or by providing comments on the exposure draft. Appendix D
contains a list of contributors.

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Part A
Why Report on Environmental Performance

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Chapter

About this Guide


Increasingly, organisations around the world are recognising the value of demonstrating transparency and
accountability beyond the traditional domain of financial performance.
This trend has come about through increased public expectations for organisations to take responsibility
for their non-financial impacts, including impacts on community and the environment.
In response, business, government, academics and Non Government Organisations (NGOs) have begun
developing frameworks addressing these concerns.
These frameworks aim to extend voluntary disclosure to include impacts on natural and human capital, as
well as financial capital.
Triple Bottom Line (TBL) reporting is becoming an accepted approach for organisations to demonstrate
they have strategies for sustainable growth.
It focuses on decision-making and reporting which explicitly considers an organisations economic,
environmental and social performance. As such, TBL can be seen as both as an internal management tool,
and an external reporting framework.
This Guide is one in a series of three produced by the Commonwealth Government to assist with TBL
reporting. Guides providing information on social1 and economic2 indicators are also available.

Purpose of this Guide


This Guide is intended to support voluntary reporting on environmental performance by organisations in
Australia. It does not represent a step towards regulation of TBL reporting in Australia. It aims to provide:
Guidance on selecting suitable environmental indicators.
Simple methodologies, which where possible incorporate existing Australian initiatives and enable
organisations to determine performance in relation to selected indicators, and are consistent with the
Global Reporting Initiatives environmental indicators.
Links to other resources to assist with preparing TBL reports.

Who is this Guide for?


The target audiences for this Guide are managers in business, community and government wishing to
improve the environmental performance of their organisations. It is generally applicable across all industry
sectors, and particularly assists organisations wishing to introduce TBL reporting for the first time.
However, it also includes useful information for experienced reporters, and organisations which are
introducing stand-alone environmental performance reports.
This Guide recognises organisations will have different priorities and methods for environmental reporting,
and therefore presents a range of indicators and information to accommodate a broad spectrum of needs.

The social indicators guide is expected to be available in August 2003.

The economic indicators guide is expected to be available in 2004.

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Relationship with Other Reporting Frameworks


The Global Reporting Initiative
This Guide is aligned to the Global Reporting Initiative (GRI), which provides social, environmental and
economic indicators at an international level. The GRI has emerged as the internationally accepted
framework for sustainability reporting and is widely supported by Australian organisations, making it
suitable as a basis for this Guide.
Founded by the Coalition for Environmentally Responsible Economies (CERES), the GRI is an official
collaborating centre of the United Nations Environment Programme (UNEP), which, since its first
publication in 2000, has focused on assisting reporting organisations and their stakeholders in articulating
their overall contribution to sustainability through the Sustainability Reporting Guidelines. These guidelines
were updated and launched at the September 2002 World Summit on Sustainable Development.
Developed through a multi-stakeholder process, they define an international voluntary reporting
framework for TBL performance.

Other Guidelines
In addition to the GRI, a wide range of initiatives and structures exist within Australia to assist organisations
on disclosing environmental performance to stakeholders.
This Guide aligns with these initiatives, which cover both quantitative and qualitative reports and includes:
Voluntary public environmental reporting initiatives (both national and international).
Mandatory environmental reporting requirements (for example the National Pollutant Inventory (NPI)
and State licensing regimes).
Australian and international Accounting Standards.
Corporate governance initiatives.
This Guide is designed to complement the GRI and initiatives that assist Australian organisations to report
non-financial performance. Complementary projects in train or recently completed include:
Environment Australias A Framework for Public Environmental Reporting, an Australian Approach
a step-by-step guide to reporting specifically tailored to meet the needs of Australian organisations,
which is available online from www.ea.gov.au/industry/finance/per.
The Group of 100s Sustainability: A Guide to Triple Bottom Line Reporting aimed at providing senior
executives with a high level understanding of TBL reporting. It can be ordered online from
www.group100.com.au.
A statement from Commonwealth Government, business and community representatives on the value
of Corporate Social Responsibility and TBL practices for Australia. This statement is an initiative of the
Prime Ministers Community Business Partnership and is expected to be available in August 2003 and
will be available online from www.partnership.zip.gov.au.

A Guide to Social Indicators and Methodologies, prepared by the Commonwealth Department of


Family and Community Services and expected to be released in August 2003 and will be available
online from www.facs.gov.au.
A Guide to Economic Indicators and Methodologies, prepared by the Commonwealth Department of
Family and Community Services and expected to be released in 2004 and will be available online from
www.facs.gov.au.

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Chapter

How to Use this Guide


The adoption of TBL reporting will vary according to each organisation, based on individual needs and
expertise. Adoption will also be influenced by an organisations understanding of its social, environmental
and economic impacts. As such, many organisations commit to TBL reporting on an incremental basis and
progressively report on their impacts in these areas.
Appendix A shows the links between the environmental performance indicators contained in this Guide
and the corresponding GRI indicators. Some minor deviations from the GRI have been adopted to address
Australian conditions, or in response to stakeholder feedback.
Globally, much debate remains on how to actually measure and report TBL performance. This has been
influenced by differing interpretations of terms, varying needs, cultural impacts and organisational
imperatives. While the GRI provides an internationally accepted guide, it does not yet provide
methodologies for many of its indicators, nor does it take into consideration specific Australian conditions,
particularly in relation to established indicators and methodologies.
This Guide aims to assist Australian organisations by providing appropriate background, relevant
information and methodologies for the GRIs set of environmental indicators.
This structure of this Guide is:
Part A Why Report on Environmental Performance
Chapter 1 About this Guide
Chapter 2 Benefits of TBL Reporting
Chapter 3 Environmental Indicators, Methodologies and Data
Part B Detailed Methodologies for Environmental Management and Performance
Chapter 4 Environmental Management Indicators
Chapter 5 Environmental Performance Indicators
Appendices
Appendix A Linking this Guide to the Global Reporting Initiative (GRI 2002)
Appendix B Basic Information and Conversion Factors
Appendix C Further Information
Appendix D Participating Organisations
Appendix E Evolution of Triple Bottom Line Reporting
Appendix F Feedback Form

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Chapter

Benefits of TBL Reporting


This Section outlines some of the benefits TBL reporting can achieve. It covers all three areas of the TBL
social, environmental and economicrather than just environmental reporting. This has been done as
there are strong synergies and benefits in undertaking an integrated approach.

Rationale
Reporting on financial performance may be considered as being limited in accurately representing market
performance. Consequently, there is a growing need for further balanced and enhanced non-financial
disclosure.
In recent years, TBL-based reporting has become a vehicle for such disclosure, based on the premise that
by monitoring and reporting social, economic and environmental performance, organisations can better
prepare for future challenges and opportunities, including those traditionally considered intangible, such as
reputation.
For TBL reporting to be of real value to an organisation, it must be integrated into day-to-day business
operations and be appropriately resourced.
Organisations which have successfully driven change as a result of TBL reporting have identified the
following benefits:
Embedding sound corporate governance and ethics systems throughout all levels of an organisation.
Currently many corporate governance initiatives are focused at the Board level. TBL helps ensure a
values-driven culture is integrated at all levels.
Improved management of risk through enhanced management systems and performance monitoring.
This may also lead to more robust resource allocation decisions and business planning, as risks are
better understood.
Formalising and enhancing communication with key stakeholders such as the finance sector, suppliers,
community and customers. This allows an organisation to have a more proactive approach to
addressing future needs and concerns.
Attracting and retaining competent staff by demonstrating an organisation is focused on values and its
long-term existence.
Ability to benchmark performance both within industries and across industries. This may lead to a
competitive advantage with customers and suppliers, as well as enhanced access to capital as the
finance sector continues to consider non-financial performance within credit and investment decisions.
There is growing evidence to suggest that over time these benefits do contribute to the increased market
value of an organisation.

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International Trends in Reporting


The number of organisations worldwide producing reports containing environmental performance
information continues to grow, particularly amongst larger organisations. The recent KPMG survey
found that 45 percent of the worlds top 250 companies now publish a separate corporate report
with details of environmental and/or social performance, up from 35 percent in 1999.
The survey found the incidence of reporting varies markedly across the world. Of the top 100
companies in each of 19 countries surveyed, Japan has the highest percentage of companies
producing corporate environment or social reports (72 percent), followed by the UK (49 percent),
USA (36 percent) and the Netherlands (35 percent), with Australia ranked 12th on 14 percent.
Whilst direct comparison is difficult due to the different make up of the various countries top 100
companies, this data suggests that Australian companies may be missing out on the significant
organisational gains potentially achieved through reporting.
The report concludes that good environmental stewardship and social responsibility are clear
examples of good management and there is no disputing the clear link between good management
and business performance.
Source: KPMG Global Sustainability Services 2002. KPMG International of Corporate Sustainability Reporting 2002.

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Chapter

Environmental Indicators,
Methodologies and Data
Effective TBL reports contain environmental performance information that is relevant, meaningful and
accurate. They should also contain environmental performance information that is relevant from an
investors perspective. Accordingly, this Chapter has the following sections:
Boundary Issues
Identifying Stakeholders
Identifying and Selecting Environmental Indicators
Methodologies
Measuring and Presenting Data

Boundary Issues
Defining boundaries for the purposes of environmental performance measurement is an important part
of the TBL reporting process. It is typical to define the scope of TBL practice as including operations over
which an organisation has control or influence. Whilst this is straightforward in many cases, it is less clear
for organisations which outsource operations, use contractors extensively, have joint ventures, or
numerous tenants.
Although there is no single approach for determining reporting boundaries, it should be noted that to
remain credible, it may be necessary to consult stakeholders to assess how they perceive the reporting
boundaries of an organisation.
For example, manufacturing businesses must decide whether to address impacts upstream or downstream
from the factory gate in their TBL reports. A strong case could be made for including product distribution
activities on the basis they may cause significant environmental impacts.
In considering where to set reporting boundaries, many organisations report on the basis of management
control. For example, an organisation might choose to report 100 percent of the environmental
performance of operations it exerts direct control over (even though it may not be the only owner), and
choose not to report environmental performance of joint ventures where it is not the operator.
Alternatively, an organisation may choose to report its environmental performance based simply on its
equity interest in joint ventures, irrespective of whether it is the operator or not.
It is critical the boundaries adopted for purposes of reporting are clearly defined and obvious to readers of
reports. Careful boundary definition also ensures a report can be verified and meaningful comparisons can
be made between information from different reporting periods.
Organisations undertaking environmental reporting for the first time often scope their initial report
narrowly, with the aim of broadening reporting boundaries over time as experience develops.

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Identifying Stakeholders
Prior to selecting indicators, it is essential an organisation considers who they are preparing the report for,
that is, who are their key stakeholders? In identifying stakeholders (remember to include internal players)
an organisation should consider:
Who is impacted or interested in the organisations activities?
Of those impacted or interested by the organisations activities, whose opinion is a priority?
Who currently receives reports or information on activities of interest?
Whose information needs are not being met by current reporting activities?
There are many approaches to stakeholder engagement and consultation. Although these topics are
beyond the scope of this Guide, further references and discussion can be found at:
The Global Reporting Initiatives 2002 Sustainability Reporting Guidelines, available online from
www.globalreporting.org.
Environment Australias A Framework for Public Environmental Reporting. An Australian Approach,
available online from www.ea.gov.au/industry/finance/per.
The Institute of Social and Ethical AccountAbilitys AA1000 Assurance Standard, available at
www.accountability.org.uk.

Identifying and Selecting Environmental Indicators


Indicators are critical to the success of environmental monitoring and reporting as they provide the basis
for objective performance assessment. This Guide provides a means to identify trends, and to make
comparisons between operational sites and between organisations.
Indicators in this Guide have been broadly classified as environmental management indicators and
environmental performance indicators. Management indicators provide information on the adequacy
of management processes. Environmental performance indicators address process inputs and outputs, and
describe environmental quality.
It is desirable to include a blend of management indicators and environmental performance indicators
in a TBL report. This allows the practical environmental performance to be assessed in conjunction with
information on management processes.

Environmental Management Indicators


Management indicators are particularly valuable as they are forward-looking or lead indicators that can
provide a basis to forecast future performance. For example, an organisation that has a process to identify
environmental risk issues is likely to establish control measures addressing significant matters.
Chapter Four of this Guide presents five management indicators. These indicators broadly correspond to
the report content recommendations outlined in the GRIs 2002 Sustainability Reporting Guidelines. For a
full list of these indicators, see page 14.

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Environmental Performance Indicators


The GRI environmental performance indicator set has been used as the starting point for the
environmental performance indicators contained in this Guide. The GRI indicators are underpinned by
a substantial body of work in environmental measurement, and have widespread industry support.
Strong support for the GRI framework was reflected by Australian stakeholders during the development
of this Guide. In some cases, GRI indicators have been modified to incorporate features of Australian
legislation, or to reduce their complexity. Appendix A presents a Table showing correspondence between
environmental performance indicators in this Guide and those proposed in the GRI Guidelines.
This Guide groups environmental performance indicators into 11 separate environmental issues categories.
For a full list of these categories, see Chapter Five of this Guide, page 20. These 11 categories are
considered relevant to a wide range of stakeholders and each category may indicate material risks or
opportunities to a companys shareholder value.
Within the various environmental issue categories, the indicators are classified as either core or additional.
Core indicators are the most important measures of performance.
Additional indicators include measures that can provide a more complete picture of environmental
performance in relation to specific issues that require greater levels of information. The decision to report
using these additional indicators depends on an organisations individual circumstances.
Whilst environmental issues of importance vary between organisations depending on the nature of
activities, it is recommended that first-time reporters begin by working with environmental management
and environmental performance indicators relevant to their particular organisation.
To ensure that indicators selected are appropriate, organisations should review the categories in the light
of known environmental risks and knowledge of stakeholder needs.
Where a report does not include information on a core indicator, either due to a lack of available data or
because the indicator has little relevance to the organisation, it is recommended a clear rationale explaining
why it is omitted is provided to readers.

Selecting Environmental Indicators


Reporting against a large number of indicators does not necessarily enhance or improve overall TBL
performance. A more suitable approach is to report on a small number of relevant indicators and
demonstrate performance improvements.
An organisation may also want to ensure it is not just collecting data for the sake of being able to collect
it. To check the suitability of indicators, consider asking internal and external stakeholders the following:
What is of key importance to stakeholders?
Which environmental issues will impact how we do business tomorrow?
Which risks are relevant to how an organisation operates within the present, as well as the
future context?
What can we collect data on, and what comparative data is available?
Note that the importance and materiality of indicators may change over time and hence management
need to monitor emerging trends and potential reporting needs. For further discussion on materiality and
the process for identifying specific risks, consider reviewing the report compiled by the Association of

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British Insurers (ABI), Investing in Social Responsibility Risks and Opportunities, which is available online
at www.abi.org.uk/Display/File/85/CSR_FullReport.pdf.
Indicators can reflect past performance, or predict future performance. Ideally, TBL reports will contain
a combination of both. This enables report users to understand past performance and to broadly assess
the future outlook.

Methodologies
This Guide contains simple methodologies to enable an organisation to measure its performance in relation
to the various environmental performance indicators. The methodologies are largely based on existing
national and international methods, protocols, and guidelines for environmental performance
measurement.
Wherever possible, methodologies developed or widely used in Australia have been adopted. Some
methodologies have been slightly modified to reduce their complexity and increase their accessibility.
To minimise duplication of effort, current environmental reporting activities of Australian organisations
have been recognised. These include voluntary reporting programs, such as the Greenhouse Challenge,
and mandatory reporting requirements under environmental laws. For example the methodology for
calculating emissions to air, water and land is based on the framework for the National Pollutant Inventory.
Whilst it is recommended that organisations use the methodologies provided in this Guide, it is recognised
that in some cases, alternative methodologies exist for calculating environmental performance.
Methodologies used should be carefully documented to ensure measurements are repeatable and able to
be verified, regardless of whether they are sourced from this Guide or from an alternative source.

Measuring and Presenting Data


Key points to consider when measuring and presenting data include:
Period Covered
Data Measurement and Verification
Data Presentation.

Period Covered
Reporters should clearly specify in a report the period of data they are reporting on. At present
organisations report across varying time periods, ranging from calendar years to annual financial reporting
periods.
Data for the full period should be included and where omitted should be specifically identified. Should an
incident or event occur post-reporting period, it may warrant disclosure in the report to ensure that
performance is accurately represented. This may include events such as an accident, merger or acquisition.

Data Measurement and Verification


With the majority of environmental performance indicators there are definitional questions that must be
addressed to ensure that measurement is repeatable and consistent. This Guide defines key terms
associated with each indicator to provide clarity for reporters. These are only advisory definitions. The
reporter may use an alternative definition if required, but should clearly disclose this variation to readers.

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Organisations may not have access to all of the information required to precisely calculate performance in
relation to relevant indicators. Assumptions and estimates may be required, based on the best available
information. In these cases, assumptions and estimates should be noted in the report.

Verification
Independent verification of TBL reports is increasingly sought by organisations to provide assurance to
stakeholders. Verification of environmental reports can be conducted by a variety of organisations,
ranging from accounting firms and major engineering consultancies, through to smaller social and
environmental consultancies.
The level of verification sought by an organisation will influence the systems used to collect and report
data. It is therefore important to ensure the data systems used are suitable for the level of verification being
sought.
Currently, no generally accepted standards exist relating to verification of TBL reports, and details on the
various methods available are outside the scope of this Guide. Detailed information on verification is
included in the following documents:
The Global Reporting Initiatives 2002 Sustainability Reporting Guidelines, available online from
www.globalreporting.org.
Environment Australias A Framework for Public Environmental Reporting. An Australian Approach,
available online from www.ea.gov.au/industry/finance/per.
The Institute of Social and Ethical AccountAbilitys AA1000 Assurance Standard, available at
www.accountability.org.uk.

Data Presentation
There are many ways to present environmental data. Absolute data is raw performance data collected in
absolute figures in a variety of different units. It is important that data is presented in TBL reports in
absolute terms, as this provides the reader with an understanding of the overall scale of an organisations
environmental impacts and contributions in a regional or global context.
Often data becomes more meaningful when related to other data. In particular, it is useful to present data
in a normalised form.
Normalised data, also termed eco-efficiency or intensity ratios, expresses some measure of output
(product or service value) in relation to a measure of environmental impact, for example, kilograms of
product produced per litre of water used. Data presented in this way brings together the dimensions of
product or service value, and environmental impact.
Normalised data allows an organisation to show it is using resources more efficiently, or reducing pollution
per unit of production. Where the range of product and services delivered by an organisation varies from
year to year, these variations will need to be taken into account when presenting data in a normalised form.
Additional information on normalised data can be found in the World Business Council for Sustainable
Developments guide, Measuring eco-efficiency. A Guide to Reporting Company Performance, available
online at www.wbcsd.org.
It is also recommended that where possible, an organisation shows trends by reporting previous data and
document targets against relevant indicators for the next reporting period.

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Part B
Detailed Methodologies for Environmental
Management and Performance

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Chapter

Environmental Management Indicators


Introduction
Environmental Management indicators help an organisation provide information on how it manages any
environmental impacts of its operations, products and services. They indicate its capacity to monitor and
control material environmental risks, and to capitalise on market opportunities arising from effective
environmental management.
Environmental Management indicators are particularly valuable as they are forward-looking or lead
indicators that can provide a basis for future performance forecasts. For example, an organisation that sets
environmental objectives and targets is likely to show improvement in relation to environmental
performance indicators (for example, energy, water and waste), as the management process is evidence of
planning and resource allocation.
The indicators presented below broadly correspond to the report content recommendations outlined in
the Governance Structure and Management Systems in Part C, Section Three of the GRIs 2002
Sustainability Reporting Guidelines.

Indicators
Indicator

Description

Type

GRI Reference

Page

Environmental Management 1

Environmental Management
System (EMS) Conformance

Core

GRI Guidelines 2002, Part C


Section 3 Governance Structure
and Management Systems

15

Environmental Management 2

Environmental performance
improvement process

Core

GRI Guidelines 2002, Part C


Section 3 Governance Structure

16

and Management Systems

14

Environmental Management 3

Integration of environment
with other business
management systems

Core

GRI Guidelines 2002, Part C


Section 3 Governance Structure
and Management Systems

17

Environmental Management 4

Due diligence processes

Additional

GRI Guidelines 2002, Part C


Section 3 Governance Structure
and Management Systems

18

Environmental Management 5

Environmental liabilities

Additional

GRI Guidelines 2002, Part C


Section 3 Governance Structure
and Management Systems

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Environmental Management Indicator 1:


Environmental Management System (EMS)
Conformance
Background and Rationale
This indicator provides information on how an organisation can report any certifications or compliance it
has for Environmental Management Systems.
Certification provides external stakeholders with a high level of assurance that an organisations
Environmental Management Systems are robust and functional. Organisations with certified systems
should provide details of the business units or elements of their operations covered by certification.
The Environmental Management System Standard ISO 14001 is widely recognised as an effective
framework for environmental management. Whilst many organisations are aligning their environmental
management systems with ISO 14001, not all are seeking to have systems certified.
Organisations should report details of the business units or sites covered by management systems
consistent with ISO 14001. Claims regarding management system alignment should only be made where
they can be verified with documentation.
Organisations may subscribe to industry environmental codes such as the Mineral Councils Code of
Environmental Management, the Electricity Supply Association of Australias Code of Environmental
Practice and the Chemical Industrys Responsible Care Program.
Organisations should report on an organisation-specific basis outlining the code(s) to which they subscribe
and their current compliance status, using the methodologies developed or endorsed by the respective
industry associations.

Possible Information to Report


Status of environmental management system by business unit or operational site, for both systems that
are in compliance and certified.
Details of environmental management system audit programs.
Details of programs for environmental management system development and implementation.
Details of conformance with relevant industry environmental codes or standards.

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Environmental Management Indicator 2:


Environmental Performance
Improvement Process
Background and Rationale
This indicator provides information on how an organisation can identify and assess initiatives it has to
enhance its environmental performance, and demonstrate its commitment to continual improvement.
TBL reports should describe internal processes for identifying and assessing environmental risks to
provide confidence to stakeholders that significant matters have been identified, and are being
appropriately managed.
Objectives and targets in relation to priority environmental issues should also be presented in TBL reports.
The existence of objectives and targets indicate an organisations commitment to performance
improvement. They also provide a focus for the allocation of financial and human resources, and provide
evidence that environmental management planning has been completed.
An organisations willingness to report progress in relation to objectives and targets illustrates an ongoing
commitment to continual improvement. It also demonstrates accountability for environmental
performance and a commitment to managing environmental risks and meeting legal and other obligations.

Possible Information to Report


Details of processes for identifying and assessing environmental risks and opportunities.
Objectives and targets relating to priority environmental issues.
Progress relating to commitments for action on environmental issues outlined in previous reports
or statements.

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CORE

Chapter

Environmental Management Indicator 3:


Integration of Environment with other
Business Management Systems
Background and Rationale
Increasingly, organisations are seeing the benefits of a cross-functional approach to management.
Integrating environmental management systems with core business systems ensures decision-making is
informed by relevant environmental information.
The degree to which an organisation has successfully embedded environmental management within its
corporate structure and day-to-day operations has a bearing on its capacity to identify and address risks
and opportunities associated with environmental issues.

Possible Information to Report


Information on organisational and Board structures showing that environmental management
is approached as a mainstream business issue.
Details of how environmental considerations are built into core business processes, such as product
and service design, procurement, and human resource management.

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Environmental Management Indicator 4:


Due Diligence Processes
Background and Rationale
Providing information on due diligence processes indicates an organisations capacity to address business
risk issues associated with mergers, acquisitions, divestments and closures. In particular, these processes will
include environmental factors associated with these activities that may have a significant financial impact.
Whilst recognising due diligence activities by their nature involve legally and/or commercially sensitive
information, organisations involved in significant mergers, acquisitions, divestments and closures should
consider disclosing summary information regarding the scope of the due diligence reviews undertaken in
relation to such transactions.

Possible Information to Report


Details of key mergers, acquisitions and divestments during the reporting period, along with brief
descriptions of the due diligence processes undertaken for each.
Summaries of material environmental risk issues arising from mergers and acquisitions.

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ADDITIONAL

Chapter

Environmental Management Indicator 5:


Environmental Liabilities
Background and Rationale
Environmental liabilities are important indicators for stakeholders, particularly analysts and investors
trying to determine current and future obligations which may impact upon business sustainability and
profitability.
Environmental liabilities arise when an organisation has specific obligations to rehabilitate or repair
environmental damage (or prevent or reduce environmental damage). These obligations can be either
legal or contractual, or can arise due to public commitments an organisation makes when it accepts
responsibility for remedying environmental damage.
Resource companies, for example, are required to provide progressive provisions over the life of a resource
to cover the costs of closure, removal of fixed assets and site rehabilitation. Such provisions can include
current liabilities (relating to the current financial reporting period) and non-current liabilities (relating to
future financial periods).
Organisations with known environmental liabilities are obliged to report them within their annual financial
statements. Consequently, environmental liabilities disclosed in TBL reports should be based on
information presented in financial statements, or should refer readers to the appropriate sections of those
statements.
Where future liabilities have been identified but are not accurately known, (for example, where
uncertainties exist in the timing and/or the magnitude of rehabilitation and clean-up costs) they are
regarded as contingent liabilities. Even though contingent liabilities are not recognised in the balance sheet,
they should be disclosed in the notes of annual financial statements.
Where known environmental liabilities will not be realised in the near future, organisations may report
clean-up or rehabilitation liabilities as either the current estimated cost or the discounted present value.
Generally Accepted Accounting Principles and Accounting Standards issued by the Australian Accounting
Standards Board (AASB) provide direction for organisations on reporting consolidated financial
statements, including appropriate treatment of environmental liabilities. As the accounting requirements
for environmental liabilities are still evolving, it is recommended organisations include liabilities in their TBL
reports to ensure information is consistent with their financial statements, and that these in turn conform
to current Standards.

Possible Information to Report


Details of known material liabilities associated with matters such as site clean-up, rehabilitation
and litigation.
Details of environmental issues with the potential to result in material liabilities.

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Chapter

Environmental Performance Indicators


Introduction
Environmental Performance indicators help an organisation calculate and report on the impact its
operations have on the environment, including flora, fauna, land, air and water.
Environmental performance indicators provide a framework to present environmental performance
information in a consistent, comparable and understandable format.
The GRI environmental performance indicator set has been used as the basis point for environmental
performance indicators contained in this Guide. As the GRI indicators are underpinned by a substantial
body of work in environmental measurement, and have widespread industry support, they provide a solid
foundation for this Guide.
Consultation with Australian stakeholders during the development of this Guide also confirmed strong
backing for the GRI framework. In some cases, the GRI indicators have been modified to incorporate
features of Australian legislation or to reduce their complexity. To see the correspondence between
environmental performance indicators in this Guide, and in the GRI Guidelines, see Appendix A.
The Environmental Performance Indicators within this Guide address the following key environmental
issues:
Energy
Greenhouse
Water
Materials
Waste solid and hazardous
Emissions and discharges to air, land and water
Biodiversity
Ozone-depleting substances
Suppliers
Products and services
Compliance

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Energy
Background and Rationale
Energy is fundamental to most activities and processes in modern industrial societies. Energy use and
environmental impacts are closely linked, with the extraction, transport and use of fuels, and generation
and transmission of electricity affecting the environment on global, regional, and local levels.
As the environmental impacts associated with energy use and extraction become more apparent, greater
emphasis is being placed on efforts to optimise the use of non-renewable resources and minimise
environmental impacts, whilst maintaining economic productivity.
Using energy efficiently makes economic and environmental sense. Energy efficient organisations can
realise economic savings, and simultaneously help preserve non-renewable resources and protect the
environment.
Determining an organisations energy use can often lead to identifying efficiency improvement
opportunities. This information allows managers to focus attention on the principal areas of energy
consumption to maximise return on effort.

Australian Context
Australia's non-renewable energy reserves include oil, coal and natural gas. These reserves are large when
compared to the nations annual energy use. In the future, the use of these non-renewable resources may be
constrained more by environmental impacts of extraction and consumption, rather than availability.
Australia is facing a decline in crude oil production over the next decade. Without new discoveries, liquid fuel
self sufficiency is predicted by Geoscience Australia to decline from about 85 percent in 2001, to less than 40
percent in 2010.
To improve environmental outcomes, a range of government initiatives are reducing the greenhouse intensity
of energy supply, and increasing the efficiency of energy use. For example the national Mandatory Renewable
Energy Target (which requires electricity suppliers to produce an additional 9500 GWh (approximately 2
percent) of their electricity from renewable sources by 2010) and industry development strategies, mean
renewable energy is expected to play an increasing role in future energy supplies.
On the demand side, national programs such as Minimum Energy Performance Standards, which improve the
efficiency of standard electrical appliances with overall net savings to consumers, are improving the efficiency
of energy use.

Facts and Figures


The total amount of energy consumed in Australia during 199798 was 4,810 petajoules, a rise of 61 percent
from 197778. This reflects the growth of both the Australian population and the national economy.
In 199798, fossil fuels accounted for 94 percent, or 4,541.8 petajoules, of energy consumed in Australia.
The amount of energy used per capita increased by 24 percent from 209 gigajoules in 197778 to 258
gigajoules in 199798.
Source: ABS 2001. Australias Environment: Issues and Trends 2001. Catalogue number 4613.0.

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Energy Indicators
Description

Units

Type

GRI Equivalent

Page

Energy 1

Direct Energy Use

Joules or multiples
of Joules (kJ, MJ etc)

Core

EN3 Direct Energy Use


segmentedby primary source

22

Energy 2

Indirect Energy Use

Joules or multiples
of Joules (kJ, MJ etc)

Additional

EN4 Indirect energy use

24

Energy 3

Initiatives to use renewable


energy sources and increase
energy efficiency

Not applicable

Additional

EN17 Initiatives to use


renewable energy sources
and increase

25

CORE

Indicator

Energy Indicator 1:
Direct Energy Use (joules or multiples of joules)
This indicator provides information on how an organisation can calculate the financial cost of its energy
consumption for specific activities. This information can be used to identify opportunities to improve
efficiency of energy use and monitor the effectiveness of energy efficiency initiatives.

Methodology
Direct energy use is the energy consumed by an organisation to perform its day-to-day activities. It includes
energy from fossil fuels, purchased electricity and renewable sources, but does not include energy sold by
the organisation for use by others.
There are other potential contributors to direct energy use, such as the purchase of steam from a
neighbouring factory, which are applicable to a small number of organisations. Methodologies for
calculating these sources of energy are not included in this Guide. Please refer to the further information
found at the end of this Section for suitable methodologies.
Energy use associated with staff travel by aircraft or train is not addressed in the methodology, as the
emissions factors needed for such calculations are not readily available. Organisations taking steps to
reduce staff travel may wish to report these initiatives under indicator Energy 3: Initiatives to use
renewable energy sources and increase energy efficiency.
Direct energy used should be reported in absolute terms (for example, kilojoules, megajoules etc.) and
in normalized form to enable tracking and assessment of energy use.

Direct energy use = energy from fossil fuel use + electricity purchased from suppliers
+ energy from renewable sources
energy provided to other organisations (if applicable)

Fossil Fuels
Fossil fuels include petrol, diesel, natural gas, LPG, black and brown coal, oil, kerosene and aviation gasoline.
Fossil fuel will either be purchased from a supplier or sourced internally. The quantities of fossil fuels
purchased during the reporting period can be determined by reviewing invoices from suppliers in
conjunction with fuel inventory information.
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Chapter

Fossil fuels such as natural gas and petroleum products may be piped to site. In these cases the amount
used can be determined by reading the appropriate meters.
Where fossil fuels are obtained from sources owned or managed by the organisation, extraction or
transport records may be used to determine the quantities used. Alternatively, process flow rates may be
used to estimate throughput.
Fossil fuels also include petroleum products purchased for transport requirements, such as distributing
products, providing the transport is directly related to the operations of the reporter (staff travel to work
would not usually be included).
Receipts for purchased fuel can also provide accurate fuel consumption rates. If direct consumption
volumes are unavailable, then travel logs providing distances travelled can be combined with vehicles fuel
efficiency, to calculate fuel used for transport.
The amount of fossil fuel used should be converted to the quantity of energy consumed in kilojoules. This
can be achieved by multiplying the quantity of fuel consumed by the corresponding calorific value of the
fuel (its raw energy content).
Calorific values for a range of fuels can be obtained from the Emissions Estimation Techniques Manual
for Aggregated Emissions from Fuel Combustion publication, available online from the National Pollutant
Inventory (NPI) at www.npi.gov.au/handbooks/aedmanuals/pubs/subcombustion_ff.pdf, and Table
5 of the National Pollutant Inventory Guide Version 2.13 at www.npi.gov.au/handbooks/pubs/
npiguide2-13.pdf. Please note that calorific values are regularly updated as new information becomes
available.

Electricity
Invoices from electricity suppliers will contain details of the amount of electricity purchased. Electricity
invoices usually list usage in kWh (kilowatt hours). To convert kilowatt hours to kilojoules, multiply the
number of kilowatt hours by 3600.

Renewable Energy
When power is produced from renewable sources controlled by a reporting organisation (for example,
solar or wind power) the energy used from these sources should be quantified. This can generally be
determined by reviewing load or design specifications for a plant.

Example
Farm Direct is a supermarket chain operating stores throughout New South Wales and Victoria. The
company uses electricity for lighting and refrigeration, fuel for transport (diesel and petrol), and natural
gas for heating.
The companys electricity and gas bills show it uses 34,440 kWh of electricity and 100 GJ of natural
gas for space heating across its network of stores and offices during its annual reporting period.
From fuel receipts and accounts, Farm Direct knows that 100,000 litres of diesel fuel was consumed
during the year for transporting goods, and 20,000 litres of petrol was used by fleet vehicles and
forklifts. Direct energy use calculations are shown in the Table following.

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Energy Use

Information
Source

Annual
Amount
(relevant unit)

Convert
to Energy
Used

Energy Used
(relevant
energy unit)

Convert
to GJ

Direct
Use (GJ)
Energy

Electricity Lighting
and refrigeration

Retailer bills

34,440 kWh

x 3600
(KWh to KJ)

123,984,000 KJ

/1,000,000

124

Natural Gas
Heating (VIC)
Heating (NSW)

Retailer bills

60 GJ
40 GJ

Fuel1
Petrol
Diesel

Receipts and
accounts
information

20,000 litres
100,000 litres

100

x 34.4
x 38.2

688,000 MJ
3,820,000 MJ

/1,000
/1,000

688
3820

Total

4,732

Densities and calorific values of petrol, diesel and other common fuels are available in Table 5 of the NPI Guide V 2.13

To track energy use efficiency, Farm Direct chooses to report the data in normalised form as revenue ($)
per gigajoule (GJ) of direct energy used. As Farm Directs revenue for the reporting period was $21.2M,
the normalised value is calculated as follows:

ADDITIONAL

Revenue generated per unit of direct energy use

= $21,200,000/4732 GJ
= $4,480 per gigajoule of direct energy

Energy Indicator 2:
Indirect Energy Use (joules or multiples of joules)
This indicator provides information on how an organisation can calculate and present information relating
to the energy its energy suppliers consume to produce the energy the organisation actually uses.
In Australia, methodologies for calculating indirect energy use in relation to electricity are well developed.
However other sources of indirect energy are not readily available, such as natural gas and fuel.
Consequently, indirect energy is defined in this indicator as the energy consumed to produce and transmit
the electricity used by an organisation.
In combination with direct energy use (Energy Indicator 1: Direct Energy Use), this indicator allows
management and stakeholders to compare energy use between organisations. It also provides a basis for
organisations to reduce indirect energy use by purchasing green power or electricity derived from sources
and technologies that have less environmental impact.

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Methodology
Indirect energy use is the energy used to produce and deliver electricity. An understanding of the source
and method used to generate purchased electricity is required to calculate indirect energy use. Electricity
generation efficiency factors exist which are specific to the facilities used to generate the electricity.
Indirect energy used should be reported in absolute terms (for example, joules) but also in normalized
form to enable energy intensity to be tracked and assessed.

Indirect energy use = electricity purchased from suppliers/electricity generator efficiency

Electricity generator efficiencies can be obtained by either contacting your energy retailer, or visiting the
Australian Greenhouse Office web site at www.greenhouse.gov.au/challenge/tools/workbook.
The electricity generator efficiency factors for each State and Territory, available through the above
reference, make allowance for energy losses during transmission.
Where electricity is purchased from renewable sources, indirect energy is considered to be negligible for
the purposes of reporting.

Example
Farm Direct, a supermarket chain, calculates that its total annual electricity use throughout all its stores
is 124 GJ. It contacts its electricity retailer and is informed that the suppliers electricity efficiency factor
is 55 percent.
Hence, to produce 1 GJ of electricity, fuel containing 1.8 GJ of energy was combusted.
Indirect energy use = 124 GJ / 0.55 = 225.5 GJ

Therefore 225.5 GJ of energy was expended by the supplier to deliver 124 GJ of electricity for use by
Farm Direct.
To track indirect energy use efficiency, Farm Direct also reports the data in normalised form as revenue
($) per gigajoule (GJ) of indirect energy used. As Farm Directs revenue for the reporting period was
$21.2M, the normalised value is calculated as follows:

Revenue generated per unit of indirect energy consumed

= $21,200,000/225.5 GJ
= $94,055 per gigajoule

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Energy Indicator 3:
Initiatives to use Renewable Energy Sources and Increase
Energy Efficiency
This indicator provides information on how an organisation can describe projects and programs it has
developed and implemented to use renewable energy sources where possible, and to decrease its overall
energy consumption.

Possible Information to Report


Initiatives that increase the proportion of energy obtained as green power or from renewable sources.
Cogeneration projects.
Energy conservation programs.
Initiatives to track and reduce energy use.
Energy efficiency improvements.

F U R T H E R I N F O R M AT I O N O N E N E RG Y I N D I C AT O R S
AND METHODOLOGI ES
The energy indicators and methodologies within this Guide are closely aligned with the GRI
Energy Protocol. The Protocol contains further details and techniques for measurement of
energy consumption and is available online at www.globalreporting.org.

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Chapter

Greenhouse
Background and Rationale
The atmosphere surrounding the earth is composed of a mixture of gases. Some of the gases such as water
vapour, carbon dioxide and methane are known as greenhouse gases because of their capacity to trap heat,
leading to warming of the lower atmosphere. This natural process maintains the warm conditions needed
on earth to sustain life.
Human activities (for example, burning of fossil fuels, land clearing) over the past 200 years have led to an
increased concentration of greenhouse gases in the atmosphere. The additional heat trapped has increased
the average temperature of the lower atmosphere, producing the so-called enhanced greenhouse effect.
Organisations that understand the greenhouse emissions profile of their operations are well placed to
respond to the challenges and opportunities that may arise from measures to reduce greenhouse gas
emissions. Quantifying greenhouse emissions is therefore a sensible business risk management strategy,
especially for those organisations in greenhouse-intensive industry sectors.
Further, as greenhouse gas emissions are closely linked to consumption of energy and fossil fuels, an
inventory of emissions may highlight cost saving opportunities. Greenhouse emissions management and
reduction can cut energy costs and reduce transport and fuel-related expenditure.

Australian Context
Australia is particularly vulnerable to the impacts of climate change, with significant greenhouse gas emissions
occurring across a range of sectors in the economy, including energy, industrial processes, agriculture, land use
change and forestry, and waste. Forecasts of agricultural impacts of climate change are a key concern because
of the sectors importance to the national economy.
Australia has a comprehensive national domestic greenhouse action agenda that reflects Australias particular
circumstances.
Since 1997, the Commonwealth Government has invested nearly $1 billion in programs aimed at reducing
greenhouse emissions. These initiatives have included promoting renewable energy and the use of alternative
fuels, as well as implementing large-scale greenhouse gas abatement projects and the Greenhouse Challenge.

Facts and Figures1


Australias 2000 net greenhouse gas emissions totalled 535 million tonnes (Mt) of carbon dioxide equivalent.
Total emissions increased by 6.3 percent (32.0 Mt) over the period 1990 to 2000 and by 2.1 percent (11.3 Mt)
between 1999 and 2000.
Stationary Energy use accounted for 49.3 percent of total emissions, followed by Agriculture (18.4 percent),
Transport (14.3 percent), Land Use Change and Forestry (7.1 percent), Fugitive Emissions (5.9 percent), Waste
(3.1 percent) and Industrial Processes (1.9 percent).
Emissions per dollar of GDP were 0.851 kilograms CO2 equivalent in 2000, 24.0 percent lower than in 1990.
Emissions per capita were 27.9 tonnes CO2 equivalent in 2000, 5.3 percent lower than 1990 level.
Source: Australian Greenhouse Office www.greenhouse.gov.au

All figures quoted in this section have been calculated according to the United Nations Framework Convention on Climate
Change (UNFCCC) Inventory accounting provisions

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Greenhouse Indicators
Description

Units

Type

GRI Equivalent

Page

Greenhouse 1

Total greenhouse gas emissions

Tonnes
of CO2 equivalent

Core

EN8 Total
greenhouse emissions

28

Greenhouse 2

Initiatives aimed at reducing


greenhouse gas emissions

Not applicable

Additional

No GRI equivalent

33

CORE

Indicator

Greenhouse Indicator 1:
Total Greenhouse Gas Emissions (tonnes of CO2 equivalent)
This indicator provides information on how an organisation can determine the nature and scale of
greenhouse gas emissions associated with its business operations, and to assess the scope for reducing
them.

Methodology
Greenhouse gas emissions include emissions of the six greenhouse gases listed in the UNFCCC as follows:
carbon dioxide (CO2)
methane (CH4)
nitrous oxide (N2O)
hydrofluorocarbons (HFCs)1
perfluorocarbons (PFCs)2
sulphur hexafluoride (SF6)
Emissions are reported in tonnes of CO2 equivalent (CO2-e) to take account of the varying global warming
potential of different greenhouse gases due to their chemical make-up. The global warming potential
(CO2-e) for each key greenhouse gas is listed in the Table below:

Greenhouse Gas

Global Warming Potential (CO2-e)

carbon dioxide (CO2)

methane (CH4)

21

nitrous oxide (N2O)

310
1

hydrofluorocarbons (HFCs)

140-9,800

perfluorocarbons (PFCs)2

6,500-9,200

sulphur hexafluoride (SF6)

23,900

1,2

28

Note:

the global warming potential for individual HFCs and PFCs vary, and can be found online at the Greenhouse Challenges
web site www.greenhouse.gov.au/challenge

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Chapter

Business activities resulting in greenhouse gas emissions include:


Electricity and gas use.
Transportation.
Waste treatment and disposal.
Industrial processes, including air conditioning, solvents etc.
Electricity generation and transmission.
Coal, gas and petroleum production.
Land use change, forestry and agriculture.
Total greenhouse gas emissions are the sum of emissions from all business sources. Greenhouse gas
emissions should be reported in absolute terms and also as normalised data. The normalised data enables
the greenhouse intensity of business outputs to be tracked and assessed.
Total greenhouse gas emissions =Sum of (emissions of each greenhouse gas x global
warming potential for each greenhouse gas)

It is recommended that organisations calculate greenhouse gas emissions using the methodologies
developed for the Greenhouse Challenge program. Greenhouse Challenge participants should simply
report emissions as determined under the program framework.
Other organisations should identify greenhouse gas emissions sources associated with their operations.
Methodologies for widely applicable sources including electricity and gas use, transportation, and waste
disposal are presented below.
Methodologies to calculate emissions from industry specific sources can be obtained from the Greenhouse
Challenge workbook at www.greenhouse.gov.au/challenge/tools/workbook.

Electricity Use
Greenhouse gas emissions arising from electricity use are calculated using the following formula:
Greenhouse gas emissions (t CO2-e) = electricity used (kWh) x emissions factor/1000
The amount of electricity used in kWh is typically documented in supplier invoices or in some cases is read
from meters. Emissions factors, which vary between State and Territory, are indicators of the relative
greenhouse intensity of each of their electricity supply networks. The emission factors can be found in Table
2 of the Greenhouse Challenge workbook at www.greenhouse.gov.au/challenge/tools/workbook.

Gas Use
Greenhouse gas emissions arising from natural gas use are calculated using the following formula:
Greenhouse gas emissions (t CO2-e) = natural gas used (GJ) x emissions factor/1000

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The amount of natural gas used in GJ is typically documented in supplier invoices, or in some cases, is read
from meters. Emission factors for natural gas use, which vary between State and Territory, can be found
in Tables 6 and 7 of the Greenhouse Challenge workbook at www.greenhouse.gov.au/challenge/
tools/workbook.

Transport
Vehicles powered by fossil fuels create greenhouse gas emissions. There are two options for calculating
greenhouse gas emissions from transport activities, and the approach adopted will depend largely on data
availability.
The first option is based on the quantity of transport fuels consumed by an organisation. Separate
calculations should be carried out for each fuel type.
Greenhouse gas emissions (t CO2-e) = fuel quantity (kL) x energy content of fuel (GJ/kL) x
emission factor (kg CO2-e/GJ)/1000
The quantity of each transport fuel consumed can typically be determined by reviewing supplier invoices
in conjunction with fuel inventory information. The energy content and emission factors for each fuel are
contained in Table 11 of the Greenhouse Challenge workbook at www.greenhouse.gov.au/challenge/
tools/workbook.
Alternatively, the following formula can be used when an organisation has records of kilometres travelled
by its vehicles, but does not know the quantity of fuel consumed:
Greenhouse gas emissions (t CO2-e) = (total km travelled x fuel consumption x
energy content of fuel x emission factor)/106

The total kilometres driven for each type of fleet vehicle can typically be sourced from vehicle records.
Further information for this calculation can be found at www.greenhouse.gov.au/challenge/tools
/workbook.

Waste Disposal
Waste decomposition is a source of greenhouse gas emissions, primarily because it releases methane. The
quantity of emissions depends on the nature of the waste.
Organisations that dispose of waste to landfill should use the formula on page 31 to estimate the
associated greenhouse gas emissions. Separate calculations should be carried out for each waste type.

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Chapter

Greenhouse gas emissions (t CO2-e) = [((waste quantity (tonnes) x DOC x DOCF x F1 x


16/12) - R) x (1-OX)] x GWP CH4
The quantity of solid waste should be determined in accordance with Waste Indicator 1: Total Amount
of Solid Waste by Type and Destination within this Guide.

DOC

The Degradable Organic Carbon (DOC) for various waste types is available online from the Greenhouse
Challenge workbook (Table 9) at www.greenhouse.gov.au/challenge/tools/workbook.

DOCF

The fraction of Degradable Organic Carbon dissimilated (DOCF) has a default value of 0.55 for paper and paper
board, wood and straw and garden and park waste, and 0.77 for other (non-lignin containing) materials

Fl

The carbon fraction of landfill gas (Fl) has a default value of 0.50
16/12 is the conversion factor for carbon to methane

R is the amount of methane recovered in the reporting period (in tonnes)

OX

The Oxidation Factor (OX) has a default value of 0.1

GWP CH4

The global warming potential of methane (GWP CH4) used to convert the quantity
of methane emitted to CO2-e is 21

Example
OzyAir is a regional airline operating 22 aircraft on domestic routes throughout south-eastern
Australia, linking regional centres to Melbourne and Sydney. In the reporting year, the airline flew 7800
sectors and carried 120,000 passengers.
OzyAir core activities are flight operations and passenger services. All support services, including
terminal management, flight catering, line engineering and baggage handling, are contracted out and
not included in its greenhouse gas emissions.
OzyAir is administered from its Melbourne corporate headquarters and performs aircraft maintenance
and repairs from hangars in New South Wales.
Greenhouse gas emissions for the airline are calculated as follows:
Fuel
Total aviation fuel use in 2001 (from supplier invoices) = 800 kL (no fuel is stored)
Fuel: (800kl x 33.1 GJ/kL x 77.2 kgCO2e/GJ)/1000 = 2044 tonnes CO2-e
Electricity
Total electricity use in 2001 (from supplier invoices) = 105 GJ
The breakdown of electricity use was 80 GJ associated with the Melbourne office and 35 GJ for the
maintenance hangars.
Electricity use = 29,170 kWh (22,200kWh from the office and 6,970 kWh from the maintenance hangar)
Using the emission factors for Victoria (corporate headquarters) and NSW (maintenance hangar) sourced
from the Greenhouse Challenge information (for the current year).
22,200 kWh x 1.444/1000 = 32 tonnes CO2-e (office)
6,790 kWh x 1.012/1000 = 7 tonnes CO2-e (maintenance hangar)
Total = 39 tonnes CO2-e

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Waste
Total waste produced in 2001 = 86.4 tonnes
Paper and cardboard = 48.4 tonnes
(4.4 tonnes from the office, 4 tonnes from maintenance and 40 tonnes from in-flight food packaging
Food waste = 18 tonnes
(2 tonnes from the office and maintenance, 16 tonnes from in-flight food service)
Plastics, glass and other = 20 tonnes
(1 tonne from the office, 9 tonnes from maintenance, 10 tonnes from in-flight food packaging and
general services).
Waste = 48.4 tonnes paper and cardboard, 18 tonnes food
Using the emission formulae provided and the values for the individual types of waste in the Greenhouse
Challenge information, emissions from waste total:
GHG emissions (t CO2-e) = [((Q x DOC x DOCF x F1 x 16/12) R ) x 0.9] x 21
Therefore:
paper/cardboard = [((48.4 x 0.4 x 0.55 x 0.5 x 16/12) 0) x 0.9] x 21 = 134 tCO2-e
food waste

= [((18.0 x 0.15 x 0.77 x 0.5 x 16/12) 0) x 0.9] x 21 = 26 tCO2-e

Total

= 160 tonnes CO2-e

Other wastes do not degrade to produce methane and are therefore not calculated against this
formula.
Total emissions for OzyAir
Sector

(tonnes CO2-e)

Fuel Use (avgas)

2044

Electricity (office and maintenance)

39

Waste (in-flight, maintenance and office wastes)

160

Total greenhouse emissions

2243

OzyAir reports greenhouse gas emissions data in both absolute and normalised form. The relevant unit
of production is the number of passenger kilometres flown by the airline, which is calculated annually
by the network operations computer system.
As OzyAirs operations for the reporting period consisted of 26.66 million passenger kilometres, the
normalised value is calculated as follows:

Number of passenger kilometres per tonne of greenhouse gas emissions =


26,660,000/2243 tCO2-e = 11,886 passenger kilometres per tCO2-e.

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ADDITIONAL

Chapter

Greenhouse Indicator 2:
Initiatives Aimed at Reducing Greenhouse Emissions
This indicator provides an organisation with information on how to describe the projects and programs it
has developed and implemented to reduce greenhouse gas emissions.

Possible Information to Report


Operational improvements that cut emissions of greenhouse gases including cleaner
production initiatives.
Measures to transform greenhouse gases into less greenhouse-intensive outputs (for example,
methane to CO2) and initiatives to reduce fugitive emissions.
Efforts to conserve energy such as energy awareness programs, cogeneration, insulation, replacement
or modification of equipment and facilities.
Initiatives to offset greenhouse gas emissions from operations, including emissions
trading and sequestration.
Any reduction targets for emissions.
Any voluntary reduction programs or protocols to which an organisation subscribes
(for example, Greenfleet or the Greenhouse Challenge).
Further information on greenhouse gas abatement actions is available online at www.greenhouse.gov.au
/challenge.

F U R T H E R I N F O R M AT I O N O N G R E E N H O U S E I N D I C AT O R S
AND METHODOLOGI ES
The information and methodologies within this Section of the Guide are closely aligned with
the Greenhouse Challenge Program. Further information is available online from the
Australian Greenhouse Office at www.greenhouse.gov.au/challenge.
The World Business Council for Sustainable Development (WBCSD) has developed
a Greenhouse Gas Protocol comprising greenhouse gas accounting and reporting standards
and guidelines for companies and other types of organisations. It addresses the accounting
and reporting of the six major greenhouses gases. The WBCSD Greenhouse Gas Protocol
is available online at www.ghgprotocol.org.

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Water
Background and Rationale
Water is a precious and finite resource. About one-third of the world's population lives in regions with
moderate to high water stress. If present consumption trends continue, two of every three people on earth
will live in water-stressed conditions by the year 2025.
Water scarcity is a major constraint to industrial and economic growth. Consequently, the need to meet
increasing demands for freshwater resources is likely to be a significant issue on environment and
development agendas over coming decades.
An organisation which understands water use associated with its operations has a sound basis to begin
identifying opportunities to reduce its consumption, and in many cases, to implement water efficiencies
across its operations. For example, initiatives to capture and use treated wastewater or stormwater can
decrease fresh water use and provide significant cost savings.
A proactive stance on water management also enables an organisation to demonstrate it shares general
community concerns regarding careful management of water resources.

Australian Context
Australia is the worlds driest inhabited continent, with over 80 percent of its land recording an average rainfall
of less than 600 mm annually. The nations inland waters are essential to society and the national economy,
providing water for drinking, agriculture and industry.
Pressures facing the health of Australia's water resources include: increases in water extraction, clearing of
catchment and riparian vegetation, pollution discharge, algal blooms, and the increase in areas affected by
dryland salinity.
In Australia, the need to balance the interests of business, the community and the environment for water
resources has emerged as a major challenge. Growing demand for water places pressure on catchments, and
creates a need to use water more effectively across the entire economy.

Facts and Figures


Total annual water use in Australia between 1985 and 1996/97 has increased by 65 percent to 24,058 GL
(approximately 24 billion cubic metres) annually. Surface water extraction accounts for 79 percent of total
water use, while groundwater accounts for 21 percent of total use.
Over the past 20 years, the area of irrigated land has almost doubled in New South Wales and Queensland.
There has been a 75 percent increase in the annual volume of water used for irrigation between 1985 and
1996/97.
Urban and industrial water users account for 20 percent of total water use in Australia, and increased
55 percent between 1985 and 1996/97.
Source: Environment Australia 2001. Inland Waters Theme Report Australia State of the Environment Report 2001.
ISBN 0 643 06750 7.

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Chapter

Water Indicators
Indicator

CORE

Water 1

Description
Total water use

Units

Type

GRI Equivalent

Page

Core

EN5 Total water use

35

Cubic metres (m )

Water 2

Total water reused

Cubic metres (m )

Additional

EN22 Total recycling and


reuse of water

36

Water 3

Initiatives to decrease
water consumption or
increase water reuse

Not applicable

Additional

No GRI equivalent

37

Water Indicator 1:
Total Water Use (cubic metres m3)
This indicator provides information on how an organisation can calculate and report on the amount of its
freshwater use, and assess any scope for reducing water consumption and costs.

Methodology
Total water use is the sum of water purchased from water suppliers and water extracted from surface and
groundwater sources. It includes water used for cooling purposes but excludes seawater.
It should be measured and reported in the following categories:
Potable water (potable water received from a local/municipal supplier).
Surface water (water obtained from surface water sources such as streams and creeks, including
stormwater and collected runoff).
Groundwater (water obtained from groundwater sources such as wells and bores).
Total water use = potable water + water obtained from surface sources + water obtained
from groundwater sources

Potable Water
Generally, all water supplied by retailers is of potable quality.
The volume of water purchased from retailers is typically recorded in invoices from those suppliers.
If water purchased is of another quality classification (for example, cooling water or treated effluent) it will
be necessary to include additional categories in total water used.

Surface and Ground Water


Water from surface water or groundwater sources is usually extracted by pump. Where extraction is
metered through the pump, the volume of water consumed can be determined by reading the meter.
In the absence of a meter, consumption may be estimated by multiplying the pump flow rate by the
duration of pumping operations. If tanks are gravity driven, flow rates and hours of discharge may be
estimated.

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Example
CrackerJacks Pty. Ltd. manufactures crackers at its factory located adjacent to a river. In the reporting
year the company produced 184,000 boxes of crackers for the domestic market.
CrackerJacks has a licence to pump some water from the river and is also connected to the town
supply. Cracker ingredients are mixed with water supplied by the local retailer and all other water,
except for drinking and kitchen purposes, is supplied by a gravity-fed tank filled by pump from the river.
The river water is not considered suitable for drinking.
The retailers invoice indicates the potable water use from the town supply for the year was 5,260kL or
5,260m3.
The pump operates for two hours twice daily to fill the gravity tank and pumps at a known rate of 30
litres per minute. Therefore, annually, the pump will transfer 2,630m3 of surface water (2 x 2 (hrs) x 60
(mins/hr) x 30 (litres/min) x 365 (days/yr) / 1000 (litres/m3) = 2,630m3).
Total water use
Potable water

5,260m3

Surface water

2,630m3

Total

7890 m3

CrackerJacks reports water use data in absolute and normalised form. Water use efficiency is tracked
by monitoring the amount of water used per box of finished product. As the company produced
184,000 boxes of crackers during the reporting period, the normalised water use is calculated as
follows:

ADDITIONAL

Boxes of biscuits produced per m3 of water = 184,000/7890m3 = 23.32 boxes of biscuits


per m3 of water.

Water Indicator 2:
Total Water Reused (cubic metres m3)
This indicator provides information on how an organisation can collect and measure data which
demonstrates the effectiveness of its water reuse strategies.
Water reuse is clearly an effective way to reduce consumption of fresh water, while simultaneously
delivering economic benefits to an organisation.

Methodology
Reused water is water reintroduced to the same process after initial use, or water introduced to another
process within an organisations operations after initial use. The water may have been treated
between uses.
To determine the quantity of water reused, a detailed knowledge of operational processes is required. It
can be calculated by measuring the flows of used water into the subsequent process, or by determining the
reduction in fresh water use (assuming other process conditions remain constant).

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Chapter

Example
CrackerJacks implemented a water recycling system during its last reporting period, to reuse cooling
water twice before release. Prior to implementation of the recycling program, the companys cooling
system used 4,500m3 of water annually.

ADDITIONAL

As a consequence of recycling, the quantity of river water used for cooling purposes has dropped from
4,500m3 to 1,500m3. Assuming negligible water lost as steam, 3,000m3 of water is reused.

Water Indicator 3:
Initiatives to Decrease Water Consumption
or Increase Water Reuse
This indicator provides information on how an organisation can describe projects and programs it has
developed and implemented to decrease water consumption, demonstrating its commitment to efficiently
managing water resources.

Possible Information to Report


Process changes directed at reducing water consumption.
Initiatives to recycle or reuse water.
Programs to raise staff awareness of water conservation.

F U R T H E R I N F O R M AT I O N O N WAT E R I N D I C AT O R S
AND METHODOLOGI ES
The information and methodologies within this Section of the Guide are closely aligned with
the GRI Water Protocol. The Protocol contains further details and techniques for
measurement of water use and is available online at www.globalreporting.org.
The UK Department of the Environment, Transport and the Regions has prepared
Guidelines for Company Reporting on Water (2000). These guidelines are available online
at www.defra.gov.uk/environment/envrp/water/pdf/water.pdf.

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Materials
Background and Rationale
The trend of our society today is toward to an increasing consumption of natural resources and materials.
Meeting consumer demand for goods requires using and transforming raw materials extracted from the
environment.
Using material inputs efficiently not only reduces pressures on the environment, but can result in financial
savings. Producers can use materials more efficiently through strategies such as lightweighting, using
recycled wastes as inputs, and enhancing the recyclability of their products. These approaches increase the
service intensity, or value, from each unit of raw material.
Monitoring material inputs is a fundamental business management process. Inventory control and
maximising the use of material inputs are critical cost-control issues given considerable attention by many
organisations. An understanding of material inputs assists them in identifying opportunities for material
substitution, and product or service redesign with the potential to deliver financial and environmental
benefits.

Australian Context
Australias economy is highly dependent on material inputs for the production of goods and services, requiring
a total material flow of about 180 tonnes per person annually.
In Australia, despite the growth of the services sector, material use is increasing in both gross and per capita
terms. This creates substantial environmental consequences, along with challenges for a reduction in our use
of materials. Much is being done in industry to reduce negative environmental impacts, but reduction at
source, through lower material use, is also important.
Industrys efforts to increase material efficiency are supported by a range of public sector initiatives that
encourage the uptake of eco-efficiency and cleaner production. Further, government waste management
agencies are promoting and facilitating use of wastes as material inputs for industrial processes. Numerous
products composed of fully or partially recycled materials are now available in Australia.

Facts and Figures


Iron and steel consumption is spread across all industry sectors, but is dominated by metal products
manufacturers (33 percent of total consumption), machinery and equipment (17 percent), transport (16
percent), and building and construction (12 percent).
Non-ferrous metals (for example, aluminium and copper) are used extensively in electrical equipment and
appliances (over 25 percent of total consumption).
Construction materials are predominantly used in the building, infrastructure and construction sectors
(approximately 90 percent of total consumption).
Agricultural produce is used mainly for providing meat and meat products (over 50 percent of total
consumption), while other food products make up most of the remainder, excluding 7 percent used in the
textile industry.

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Chapter

Facts and Figures (continued)


Timber products, excluding paper-based products, are predominantly used in residential buildings (55 percent
of total consumption), with only small quantities used in other sectors such as furniture (12 percent), other
construction and wholesale trade.
Paper production is largely used for printed and published media (57 percent of total consumption), the
remainder being consumed largely in packaging applications (23 percent). The use of paper in Australia
steadily increased from 2808 kt in 198889 to 3461 kt in 199899, with newsprint, and publishing and writing
papers, representing just over 50 percent of consumption by weight.
Plastic products are diverse, with a wide range of applications across other industry sectors. Packaging is the
largest consumer of plastic (37 percent of total consumption), with significant uses also in building and
construction (27 percent) and manufacturing (13 percent).
Source: Environment Australia 2001. Human Settlements Theme Report Australia State of the Environment Report 2001.
ISBN 0 643 06747 7

CORE

Materials Indicators
Indicator

Description

Units

Type

GRI Equivalent

Page

Materials 1

Total material use

Tonnes

Core

EN1 Total material use other


than water by type

39

Materials 2

Initiatives aimed at using


post consumer recycled
materials and waste from
industrial sources

Not applicable

Additional

EN2 Percentage of materials


used that are wastes (processed or
unprocessed) from sources external
to the reporting organisation

41

Materials Indicator 1:
Total Material Use (tonnes)
This indicator provides information on how an organisation can determine the nature and scale of
materials-use associated with its business operations, and how to assess the scope for reducing material
consumption and costs.

Methodology
Total material use is the weight of all materials purchased or obtained from other sources, including raw
materials for conversion to product or service, associated process materials, and semi-manufactured goods
or parts. It excludes water and materials used to generate energy.
Total material use should be reported in absolute terms and also normalised in relation to an organisations
product or service output. For organisations with numerous inputs, estimating consumption for all
materials is potentially onerous.
In the interests of maximising return on effort, it is recommended that organisations focus on identifying
and quantifying their key material inputs. This can be achieved by reviewing procurement and financial
records to reveal items used in large quantities or purchases of high value. It is also important to ensure
materials with high environmental impacts, which contribute to an organisations risk profile, are also
included.
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The following equation should be used to determine total material use:


Total material use = input material from suppliers + input material from owned source

Input Material from Suppliers


Material use should be reported by material type where possible. This aids understanding, as the
environmental significance of materials varies considerably.
Details of quantities of materials supplied during the reporting period can typically be obtained from
supplier invoices. This information, in conjunction with inventory information, can be used to determine
quantities consumed during the reporting period.

Input Material from Owned Sources


For some industries, raw materials are sourced from within property owned by the organisation. This is
especially true in the mining, forestry and agricultural sectors. In these cases, quantities of materials may
be determined by investigating extraction or weighbridge records, or estimated using process flow
information.

Example
AutoSteer manufactures automotive steering wheels, columns and housings and purchases its input
materials in either component or refined material form (either complete components such as bearings
or metal sheet to press into components).
AutoSteer identifies three materials that account for over 90 percent of its material use in product
production. These materials are steel, aluminium and plastic.
Whilst recognising that other materials are used in its production manufacturing, these other materials
are not particularly environmentally sensitive and are consumed in much smaller volumes.
AutoSteer reports that it purchases 65 tonnes of steel and 48 tonnes of aluminium annually from its
supplier (sourced from invoicing). Its seven suppliers of plastic components provide 120 tonnes of
plastics (sourced from invoicing, volumes quoted per unit and by total mass).
AutoSteer reports material use data in absolute and normalised form. By relating the weight of the
three primary raw materials to the weight of finished product, the efficiency of materials use can be
monitored. As the company produced 198 tonnes of finished products during the reporting period, the
normalised indicator is calculated as follows:

Tonnes of finished product as a ratio of the three primary raw material inputs:
Steel 198 tonnes of finished product / 65 tonnes of steel = 3.05
Aluminium 198 tonnes / 48 tonnes of aluminium = 4.13
Plastic 198 tonnes / 120 tonnes of plastic = 1.65

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ADDITIONAL

Chapter

Materials Indicator 2:
Initiatives Aimed at Using Post Consumer Recycled Materials
and Waste from Industrial Sources
This indicator provides information on how an organisation can describe projects and programs it has
developed and implemented to increase its use of post-consumer recycled materials, and waste from
industrial sources. It can demonstrate an organisations commitment to improving its use of materials.

Possible Information to Report


Initiatives to improve material use efficiency by substituting raw materials with post-consumer recycled
material or waste from industrial sources.
Cleaner production projects directed at reducing waste and using raw materials more efficiently.
Product reformulation or redesign efforts to facilitate use of wastes as raw materials or to increase
product recyclability.

F U R T H E R I N F O R M AT I O N O N M AT E R I A L I N D I C AT O R S
AND METHODOLOGI ES
Organisations seeking to purchase products containing recycled content can consult the
Waste Wise Purchasing Guide for Government and Industry 2000, available from
EcoRecycle Victoria online at www.ecorecycle.vic.gov.au. This guide contains an extensive
list of products, supplier contacts and details of recycled content.

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Waste Solid and Hazardous


Background and Rationale
Developing strategies and practices to manage the huge quantities of waste generated globally is a key
environmental challenge. Population growth, patterns of increased consumption, and industrialisation of
developing nations are placing additional pressures on systems that manage waste.
Traditional approaches to waste management rely on the natural environment to absorb and assimilate
unwanted by-products. Environmental impacts associated with waste disposal include land contamination,
methane emissions, leachate discharges, odour, flammability, toxicity, and consumption of land resources.
Organisations are finding waste disposal costs have risen substantially in recent decades, adding to overall
business costs. Accordingly, compelling financial incentives, as well as environmental drivers, exist for
organisations to monitor and minimise the waste they generate.

Australian Context
Historically, the majority of Australias solid waste has been dumped in landfill. Despite the enthusiastic
embracing of waste recycling schemes, Australians currently contribute about one tonne of waste per person
annually to landfill. Much of this waste can potentially be recovered and used as raw materials.
Considerable pressure exists to better manage and reduce waste across States and Territories, driven by
community demand, government expectations and industry initiative. Further, the sheer volume of waste
produced, along with scarcity of suitable landfill sites in major cities, are prompting a rethink of traditional
waste management practices.
Legislation and policy arrangements are primarily the responsibility of State and Territory governments.
A number of jurisdictions have established systems to track hazardous wastes from place of origin to disposal
destinations. These programs have significantly reduced inappropriate dumping of harmful wastes. The
transportation of hazardous waste in and out of Australia is controlled by the Commonwealth Government
under its Hazardous Waste Act 1989.

Facts and Figures


For 199697, the Australian Bureau of Statistics (ABS) estimated that 21.2 million tonnes of solid wastes were
received and disposed at landfills nationwide.
Overall waste composition across Australia is 40 percent domestic waste, 23 percent commercial and
industrial waste, and 37 percent construction and demolition waste.
The primary sources of commercial and industrial wastes are non-biodegradable wastes from industrial and
manufacturing processes.
The majority of hazardous or prescribed wastes are generated by the commercial, industrial and trade sectors.
Sources of prescribed industrial wastes include hospitals, food outlets, chemical, paint and plastic
manufacturers, and food processing plants.
Data from New South Wales and Victoria suggests more than 50 percent of hazardous and prescribed wastes
are generated from the manufacturing sector.
Source: Environment Australia 2001. Human Settlements Theme Report Australia State of the Environment
Report 2001. ISBN 0 643 06747 7

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Chapter

Waste Solid and Hazardous Indicators


Indicator

Description

Units

Type

GRI Equivalent

Page

Waste 1

Total amount of solid waste


by type and destination

Tonnes

Core

EN11 Total amount of waste


by type and destination

43

Waste 2

Total amount of hazardous


waste produced (as defined
by the Hazardous Waste Act
or State waste regulations)

Tonnes

Core

EN31 All production, transport,


import, or export of any waste
deemed hazardous under the
terms of the Basel Convention

45

Annex I, II, III and VIII


Waste 3

Initiatives and improvements

Not applicable

Additional

No GRI equivalent

46

CORE

Note: Wastewater is dealt with under indicator Emissions 2. Significant discharges to water by discharge type.

Waste Indicator 1:
Total Amount of Solid Waste by Type and Destination (tonnes)
This indicator provides information on how an organisation can calculate and report on the amount of waste
it produces and the destination of that waste.
This indicator can also help an organisation identify other opportunities to minimise the amount of waste
it produces.

Methodology
Solid waste is defined as unwanted solid material which no longer serves a purpose in the production or
service delivery operations of an organisation. It includes waste to landfill, and waste to be recycled or
reused directly, but excludes waste deemed hazardous, which is measured under Waste Indicator 2: Total
Amount of Hazardous Waste Produced.
Waste produced should be reported by disposal destination. For most companies a split between landfilled
and recycled or reused waste will exist. The recycled or reused waste can be further segmented into various
recycling or reuse streams, such as paper, plastics, metals, glass and organic waste.
Waste data should be reported in absolute terms (for example, tonnes of waste landfilled) and also in
normalised form (for example, tonnes of product sold per tonne of waste landfilled). Normalised data
allows tracking and assessment of waste products.
Most organisations engage waste contractors to remove solid waste. In some cases, contractor records will
provide volumes or weights of waste removed, and this data can be used to determine overall quantities
for reporting purposes.
Under most arrangements, waste contractors record only the number and size of bins collected. In these
instances, information on waste density and average volumes of waste removed are needed to estimate
waste amounts.
Waste densities can be determined by weighing a representative sample of bins, or alternatively, typical
waste densities can be obtained from the United Kingdom Department of Environment, Food and Rural
Affairs Environmental Reporting Guidelines for Company Reporting on Waste, available online at
www.defra.gov.uk/environment/envrp/waste/pdf/cowaste.pdf.
Using this information, waste removed can be calculated using the formula below. Separate calculations
should be done for each waste destination.

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Weight of waste (tonnes) = Bin size (m3) x Waste density (t/m3) x % full x
No. of pickups per year

The percentage fullness of bins is best determined by checking bins just prior to pickup over several weeks.
The extent of the survey required to calculate an average value depends on whether waste production
rates are relatively constant, or whether they vary considerably week to week.

Example
Angley Homes is a residential construction company. During the reporting period the company built
1,800 homes across Australia.
Waste from Angley work sites is separated into two streams waste destined for landfill, and timber
waste for recycling. The company contracts a waste management service provider to supply 3m3 skips
and perform waste pickups. Landfill waste skips are removed once per fortnight and timber waste skips
are removed on demand when full. The waste contractor includes details of the number of skips
removed in invoices, as this data is the basis for service charges.
From a survey of landfill waste skips, it is established the skips average 70 percent full upon removal.
Timber waste skips are assumed to be 100 percent full as they are removed on demand. With the
assistance of the waste contractor, a number of full landfill waste and timber waste bins are weighed.
From this exercise it determined that an average full landfill skip contains 1.6 tonnes and a full timber
skip contains 2.1 tonnes. Waste densities are therefore 0.533 and 0.7 respectively.
From waste invoices, Angley Homes established that 8400 landfill skips and 600 timber skips were
removed during 2001. The calculated amount of waste by destination is shown in the Table below.
No of 3m3 skips

Skip volume (m3)

Average
% full

Waste volume (m3)

Waste density

Mass of waste (t)

25,200

70

17,640

0.533

9,408

1,800

100

1,800

0.7

1,260

Landfill
8,400 skips
Timber Recycling
600 skips

Angley Homes reports waste disposal data in absolute and normalised form. As the company built
1,800 homes during the reporting period, the normalised information is calculated as follows:
Landfill waste produced per home = 9,408 tonnes/1800 = 5.23 tonnes per home
Timber waste recycled per home = 1,260 tonnes/1800 = 0.7 tonnes per home

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CORE

Chapter

Waste Indicator 2:
Total Amount of Hazardous Waste Produced (as defined by the
Hazardous Waste Act or State Waste Regulations) (tonnes)
This indicator provides information on how an organisation can calculate and report the amount of
hazardous waste its operations produce.

Methodology
Under the various State and Territory regulations, hazardous waste producers are required to complete
waste transport certificates to allowing tracking of consignments from place of origin to disposal location.
Waste transport documentation provides a relatively simple means for organisations to collate information
on hazardous wastes for reporting purposes.
Quantities entered into waste transport documentation can be extracted to determine an aggregate of
hazardous waste production for the reporting period. Data should be reported by hazardous waste types.
Hazardous waste data should be reported in absolute terms (for example, tonnes of waste produced) and
also in normalised form (for example, tonnes of product sold per tonne of waste produced). Normalised
data allows an organisation to track and assess its hazardous waste.
Substances and materials classified as hazardous waste vary between States and Territories. In general,
hazardous waste includes chemical residues, solutions, sludges, and used chemical containers. For specific
details, the relevant State or Territory environmental agency should be consulted.

Example
Maxwells Plastics produces a significant quantity of hazardous solid waste as by-products of PVC pipe
manufacture. The waste is removed from site for disposal by a licensed contractor.
The waste transport receipts provided to Maxwells by its waste contractor are used to determine the
quantity of hazardous waste produced at the facility. The receipts show that Maxwells generated:
277 tonnes of hydrocarbon resin.
23 tonnes of filter cake.
80 tonnes of chemical residues.
Accordingly, Maxwells established it disposed of 380 tonnes of hazardous waste over 2001. This
information can also be presented in normalised form to track efforts to reduce hazardous waste in
relation to production output.
As the output from Maxwells facilities over the reporting period was 23,600 tonnes of product, the
normalised indicator is calculated as follows:
Tonnes of hazardous waste per tonne of product = 380 tonnes/ 23,600 tonnes
= 0.016 tonnes of hazardous waste
per tonne of product

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Waste Indicator 3:
Initiatives and Improvements
This indicator provides information on how an organisation can document and demonstrate specific
initiatives it has developed and implemented to minimise waste produced from its operations.

Possible Information to Report


Minimise solid waste, including programs to reduce, reuse and recycle waste.
Minimise hazardous waste production, including cleaner production initiatives.
Where possible, waste reductions achieved should be quantified and reported.

F U R T H E R I N F O R M AT I O N O N WA S T E S O L I D A N D H A Z A R D O U S
I N D I C AT O R S A N D M E T H O D O L O G I E S
Information on classifying wastes and recyclable materials, and on the challenges and
opportunities waste and recycling presents, is available online from EcoRecycle Victoria at
www.ecorecycle.vic.gov.au.
State and Territory environment protection agencies have primary responsibility for
developing waste management policy and administering waste regulations in Australia.
These agencies provide details of obligations under local hazardous waste regulations.
The Hazardous Waste Act 1989 was developed to enable Australia to comply with
obligations under the Basel Convention on the Control of the Transboundary Movements
of Hazardous Wastes. The legislation is available online at www.ea.gov.au/industry/hwa
/legislation.html.

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Chapter

Emissions to Air, Land and Water


Background and Rationale
Pollution of air, land and water are high-ranking environmental concerns for communities. Impacts of
pollution include human health effects, degradation of natural ecosystems, and loss of productive land
resources.
Characterising its emissions to air, land, and water can provide an organisation with a better understanding
of its operations, and often reveals opportunities to improve its operating processes. For example, an
organisation using volatile organic chemicals as production inputs may begin viewing emissions of these
substances as raw material losses. Schemes to recycle or capture the emissions for use have the potential
to deliver significant financial benefits.
Management of emissions is also an environmental protection issue. Minimising its adverse impacts on air,
land and water provides an organisation with opportunities to build and maintain community and
regulatory support for its ongoing operations.

Australian Context
Clean air and clean water are critical to Australia for a wide range of commercial, lifestyle, ecological and
human health reasons. To achieve environmental protection goals, emissions to air, land and water are closely
regulated under State and Territory environmental laws. At a national level, the National Environment
Protection Council (NEPC) establishes consistent standards for environmental quality across all States and
Territories.
The National Pollutant Inventory (NPI) is a database of key emissions sources in Australia. The NPI provides
public access to information on pollutant emissions at a neighbourhood level to assist governments with
planning issues, and to encourage cleaner production. Organisations which emit quantities of certain
substances above specified thresholds are required to report details of their annual emissions to the NPI.

Facts and Figures


Three substances sulphur dioxide, oxides of nitrogen and carbon monoxide accounted for more than
90 percent of all atmospheric pollution recorded by the NPI.
Sulfur dioxide
Total emissions to air totalled 1.4 million tonnes, of which 1.3 million tonnes is from industry sources
(42 percent from the electricity supply industry, 35 percent from the basic non-ferrous metal manufacturing
industry, and 19 percent from the petroleum refining industry).
Total emissions to water was 2.3 tonnes, which was from the paper and paper manufacturing industry.
Oxides of Nitrogen
Total emissions were 1.3 million tonnes all of which were to air, with 0.69 million tonnes attributed to industry
(71 percent from the electricity supply industry).
Carbon Monoxide
Total emissions were 4.9 million tonnes of which 14 percent were from industry sources.
Sources: National Pollutant Inventory www.npi.gov.au

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Emissions to Air, Land and Water Indicators


Description

Units

Type

GRI Equivalent

Page

Emissions 1

Significant emissions
to air and land

Tonnes

Core

EN10 NOX, SOX, and other


significant air emissions by type

48

Emissions 2

Significant discharges
to water by discharge type

Tonnes

Core

EN12 Significant discharges


to water by type

49

Emissions 3

Initiatives to reduce
emissions and discharges

Not applicable

Additional

No GRI equivalent

51

CORE

Indicator

Emissions Indicator 1:
Significant Emissions to Air and Land (tonnes)
This indicator provides information on how an organisation can calculate and report on the significant
emissions to air and land associated with its business operations.
This indicator does not include discharges to water, which are addressed in Emissions Indicator 2:
Significant Discharges to Water by Discharge Type.

Methodology
Significant emissions to air and land are emissions with potential to cause significant environmental impact
or stakeholder concern. In practice, organisations that trigger reporting obligations under the National
Pollutant Inventory (NPI) are recommended to use NPI data as a basis for emissions information in their
TBL reports. The list of NPI substances and their associated reporting triggers is available online at
www.npi.gov.au/about/list_of_subst.html.
Use of the NPI framework will minimise duplication of effort and draws upon industry-specific
methodologies developed for the NPI. NPI methodologies are incrementally updated and extended to
cover a wide range of industry sectors. NPI industry specific methodologies are available online at
www.npi.gov.au/handbooks.
Emissions data should be reported as absolute amounts (for example, tonnes of pollutant emitted) and be
normalised in terms of the service or product value produced (for example, tonnes of product produced
per tonnes of pollutant emitted). Normalised data can be used to demonstrate efficiency improvements.

Significant emissions to air and water = NPI reporting requirements

For organisations not required to report for the NPI, it is less likely that emissions to air and land are a
significant environmental issue associated with business activities. However, organisations may choose to
report emissions that do not trigger NPI reporting obligations, for example where emissions occur in the
proximity of sensitive receiving environments. Stakeholder engagement will assist organisations to decide
which emissions to report.

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Chapter

Example
Ink Magic Pty. Ltd. produces approximately 1,400 tonnes of ink and ink products annually. It has
reported emissions to the NPI for several years, and enters NPI data directly into its environmental
report. Data is listed in the Table below.

CORE

Emitted Substance (NPI Categories)

Amount (tonnes) emitted to air

Cyclohexane

1.5

Ethanol

5.0

Ethyl Acetate

1.0

Methyl Ethyl Ketone

3.0

Methyl Isobutyl Ketone

0.6

Toluene (Methylbenzene)

2.4

Xylenes (individual or mixed isomers)

3.2

Emissions Indicator 2:
Significant Discharges to Water by Discharge Type (tonnes)
This indicator provides information on how an organisation can calculate and report on significant
discharges to water associated with its business operations.

Methodology
Significant discharges to water are discharges an organisation has which have the potential to cause
environmental impact and /or stakeholder concern. To identify significant discharges, organisations should
investigate discharges to waterways and marine waters. The volume, concentration, temperature and
toxicity of discharges should be considered when identifying significant discharges.
Discharge load should be reported in absolute terms and also normalised terms in relation to a suitable
measure of product or service output.
Where practicable, the pollutant load in water discharges should be calculated using the below formula.
In most cases, laboratory analyses will be required to determine the concentration of the substances of
interest in the discharge stream.

Discharge load (tonnes) = (concentration of the substance discharged) x


(discharge flowrate) x (discharge duration)

Organisations should provide some commentary on impacts associated with discharges, such as nutrients,
acid or alkalis, suspended or dissolved solids, metals, radioactive substances, pesticides, herbicides or
fungicides, hydrocarbons, oils or other chemicals.

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Example
Panmac Mining discharges treated water from its tailings storage facility during high rainfall events into
a local river. Discharges are tested by a NATA approved laboratory in accordance with its operating
licence.
On average, the discharge water contains the following:

Copper

23mg/l

Zinc

5mg/l

Iron

16mg/l

Monitoring at the spillway during the reporting year revealed wastewater was released at an
approximate flow rate of 3m3 per minute over three days of high rainfall, resulting in a total of 12,960
m3 of discharged wastewater.
Multiplying annual flow volume by average concentration, inputs to the river from the mine discharges
are as follows:
300 kilograms of copper.
65 kilograms of zinc.
210 kilograms of iron annually.
Pollution is impacting the local aquatic ecosystem. Macro-invertebrate monitoring performed in
accordance with guidelines for assessing stream conditions indicates that stream health is average
upstream of the mine, and poor downstream of the discharge point. While the information relates to
biodiversity impacts, it is noted here for purposes of the example.
The mine produces 4,000 tonnes of copper annually, so in normalised form it releases to water:
75 g of copper per tonne copper produced.
16 g of zinc per tonne copper produced.
53 g of iron per tonne copper produced.

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ADDITIONAL

Chapter

Emissions Indicator 3:
Initiatives to Reduce Emissions and Discharges
This indicator provides information on how an organisation can describe the management of its significant
emissions and discharges, and document the steps it has taken to improve environmental quality by
lessening its impacts.

Possible Information to Report


Installation of pollution control systems and cleaner production technology.
Strategies that reduce emissions and discharges.
Infrastructure that changes the discharge destination to a less environmentally sensitive system
(for example, from local systems to sewer).
Initiatives to reduce the toxicity, concentration or impacts of emissions.
It would be appropriate to report details of key initiatives undertaken, the resulting discharge
improvements, and the associated environmental quality improvements expected.

F U R T H E R I N F O R M AT I O N O N E M I S S I O N S T O A I R , L A N D
A N D WAT E R I N D I C AT O R S A N D M E T H O D O L O G I E S
Details of reporting thresholds and industry specific methodologies for the NPI are available
online at www.npi.gov.au.
The GRI Water Protocol provides further information relating to water pollution and water
discharges, and is available online at www.globalreporting.org.

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Biodiversity
Background and Rationale
Biodiversity is defined as the variety of life on earth, including plants, animals and micro-organisms, along
with the genetic material they contain and the ecological systems in which they occur. Population growth
and development are steadily eroding global biodiversity through:
Clearance of native vegetation.
Pollution of air, land and water.
Overuse, misuse or inappropriate use of land and habitat areas.
Disruption of natural ecological cycles such as breeding patterns.
Invasion of exotic weeds and pests.
Depletion of forests, fisheries and other natural resources.
Where business operations interface with natural systems, potential exists for ecological pressures to occur.
The quantity and characteristics of the land, inland and marine water an organisation controls therefore
provides a sense of its potential to impact upon biodiversity. Details of any impacts on, or improvements
to, natural systems provide stakeholders an appreciation of an organisations performance.

Australian Context
Australia is among the most biologically diverse nations in the world, with a large number of species found
nowhere else. The value this biodiversity provides to the national economy has received increasing attention,
yet it remains difficult to calculate in real terms.
One estimate in 1997 valued terrestrial Australian ecosystems at US$245 billion annually and US$640 billion
annually for marine ecosystems. While these figures are relatively coarse, they emphasise the major
contribution biodiversity makes to healthy and functioning landscapes.
In 1992, Commonwealth, State, Territory and Local governments agreed on the National Strategy for the
Conservation of Australias Biological Diversity to provide a framework for protecting Australia's biodiversity.
A review in 2001 of progress in implementing this Strategy led to the agreement of the National Objectives
and Targets for Biodiversity Conservation, 20012005. These specific, time-bound targets were developed to
bridge the gap between current activities and the measures necessary to conserve Australia's biological
diversity.
A key mechanism for biodiversity protection in Australia is the Environment Protection and Biodiversity
Conservation Act 1999 (EPBC Act). The Act covers a range of key areas of biodiversity conservation, including
Australia's obligations under the Convention for the Protection of World Cultural and Natural Heritage.

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Facts and Figures


The estimated total number of Australian flora (plants and fungi) species is 290,000.
The estimated total number of Australian fauna species is 200,000 about 192,000 invertebrate species and
8 000 vertebrate species.
For many groups, particularly the invertebrates, it is estimated more than 50 percent of species remain
undescribed.
Due to Australias size, age and geological and evolutionary isolation, over 80 percent of mammal, reptile,
flowering plant, fungi, mollusc and insect species in Australia are endemic.
There are 1478 species and 27 ecological communities listed under the Environment Protection and
Biodiversity Conservation Act 1999 (EPBC Act) in February 2001, as either endangered or vulnerable at the
national level.
Source: Environment Australia 2001. Biodiversity Theme Report Australia State of the Environment Report 2001.
ISBN 0 643 06749 3

Biodiversity Indicators
Indicator

Description

Units

Type

GRI Equivalent

Page

Biodiversity 1

Location and size of land and


water owned, leased or
managed in biodiversity-rich
or ecologically significant
habitat areas

Hectares

Core

EN6 Location and size of land


owned, leased or managed
in biodiversity-rich habitats

53

Biodiversity 2

Major impacts on land, water


and biodiversity associated

Not applicable

Core

EN7 Description of the major


impacts on biodiversity associated

55

with an organisations
activities, products
and services

CORE

Biodiversity 3

Initiatives and improvements

with an organisations activities,


products and services on terrestrial,
freshwater and marine
environments
Not applicable

Additional

No GRI equivalent

56

Biodiversity Indicator 1:
Location and Size of Land and Water Owned, Leased or Managed
in Biodiversity-Rich or Ecologically Significant Habitats (hectares)
This indicator provides information on how an organisation can determine the nature and size of
biodiversity-rich and ecologically-significant habitats within its scope of operations and control.
Whilst having control of large areas of biodiversity rich habitat does not mean these areas are being
degraded, it does indicate potential for an organisation to negatively impact on these areas.

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Methodology
Biodiversity-rich and ecologically significant habitats include:
World Heritage properties.
Wetlands of international importance (for example, the Ramsar wetlands).
Areas where listed threatened species or communities or listed migratory species occur.
Commonwealth Marine protected areas.
Critical habitats listed under the Environment Protection and Biodiversity Conservation Act 1999.
Commonwealth national parks, reserves and botanic gardens.
Areas providing significant ecosystem services, such as pollination, water filtration,
water table control and fish hatcheries.
The location and size of land and water owned, leased or managed by an organisation in biodiversity-rich
or ecologically significant habitats should be reported in hectares. The report should also describe the
nature and extent of an organisations operations in these areas.
Links to databases containing location details for ecologically important areas are provided in the Table
below. The area of land owned, leased or managed which is rich in biodiversity can be determined by
reviewing the databases in relation to areas under an organisations control.

Biodiversity-rich habitat type

Information sources

Protected and
biodiversity-rich areas

Environment Protection and Biodiversity Conservation Act.


www.ea.gov.au/epbc

Wetlands of international
significance

Ramsar Database:
www.wetlands.org

Habitat of endangered flora


and fauna

Convention on International Trade in Endangered Species


of Wild Fauna and Flora (CITES):
www.cites.org

Critical Australian habitat


for endangered and rare species

Environment Australia :
www.ea.gov.au/cgibin/sprat/public/publicregisterofcriticalhabitat.pl,

Marine protected areas

Environment Australia database:


www.ea.gov.au/coasts/mpa/commonwealth.html

Commonwealth National Parks,


Reserves and Botanic Gardens

www.ea.gov.au/parks/commonwealth/index.html

Example
The Australian Wilderness Experience Group manages four chalets within Australian wilderness or
world heritage areas. Whilst the impacts of operations such as habitat destruction and interference
with wildlife feeding and breeding have been minimised by diligent management, the Group
acknowledges it operates within 36 hectares of ecologically significant habitat.

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CORE

Chapter

Biodiversity Indicator 2:
Major Impacts on Land, Water and Biodiversity Associated
with an Organisations Activities, Products and Services
This indicator provides information on how an organisation can identify and describe the major impacts of
its activities, products and services on land, water and biodiversity.

Methodology
Land, water and biodiversity impacts include removal of significant habitat, ecosystem damage, species
reduction, changes to the pattern and quantity of environmental water flows, and spread of land
degradation, including salinity and weed infestation.
Biodiversity impacts should be reported in relevant units numbers of species, annual species population
change, percentage of rehabilitated land or habitat change, percentage of exotic species present.
Understanding biodiversity impacts often requires detailed investigation and specialist input.
The Flowchart below outlines a process typically followed by organisations to investigate and address
biodiversity matters associated with their operations. The green and yellow boxes in the Flowchart provide
guidance on the nature and extent of information which should be included in a TBL report.
Where potential exists for biodiversity impacts to occur, an investigation to characterise the issues would
be performed. In the light of completed investigations, an organisation would initiate monitoring and
mitigation activities to address significant impacts.

Is there a biodiversity issue?


Investigate if there is an ecological risk
or stakeholder concern

YES

NO

Address identified stakeholder


concerns in PER and report findings
of investigations if desired

Outline identified environmental impacts and how the organisations operations


cause these impacts where appropriate

Is the organisation seeking to monitor


and/or mitigate its impacts on terrestrial,
marine or freshwater environments?

YES

No reporting necessary against


Biodiversity 2

Report these issues where appropriate

Investigate further. Is the biodiversity


issue significant?

YES

NO

NO

Report current environmental


situation. If stakeholder concern is high,
address these concerns potentially
outling why mitigation is not planned

Report current environmental situation. Report to stakeholders:


Actions taken (and degree of implemention)
Expected or proven environmental benefits
Comment if desired on how this addresses stakeholder concern

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Example
JDG Feedlots have operated on the edge of Westernport Bay, a Ramsar wetland, for several years It has
reasonably efficient effluent control, but a small quantity of sediment and nutrients escape into a
tributary discharging directly into Westernport Bay.
Independent studies have found the local seagrass beds are diminishing and sediment and nutrients are
a primary cause of this loss. Testing reveals that JDG Feedlots is responsible for about a fifth of the
sediment and nutrient loading on the system, although it is remains within its licensed operating
conditions.

ADDITIONAL

Whilst JDG Feedlots acknowledges and reports the effects its operations have in conjunction with other
upstream uses, it initiated a response plan to eliminate 90 percent of the sediment and 50 percent of the
nutrients from its effluent by the middle of the following year.

Biodiversity Indicator 3:
Initiatives and Improvements
This indicator provides information on how an organisation can demonstrate its commitment to
protecting and improving biodiversity.

Possible Information to Report


Projects to rehabilitate disturbed or contaminated land, enhance existing habitat through removal of
exotic species (weeds or feral animals), or to promote natural habitat (through native seed cultivation
and fencing to allow regeneration etc.).
Initiatives to relocate operations to less ecologically sensitive places.
Area rehabilitated compared to total area disturbed.
Research conducted into impacts and mitigation measures.
Development of policies that reinforce an organisations commitment to biodiversity protection.

F U R T H E R I N F O R M AT I O N O N B I O D I V E R S I T Y I N D I C AT O R S
AND METHODOLOGI ES
State, Territory and Commonwealth government environment protection agencies and
natural resource departments can assist organisations to characterise ecological issues
relevant to their operations.
At the time of publishing this Guide, the GRI was developing a Biodiversity Protocol. When
completed, the Protocol will be available online at www.globalreporting.org.
General information from Environment Australia on various aspects of national biodiversity
is available online at www.ea.gov.au/biodiversity/index.html.
This website also provides links to the National Strategy for the Conservation of Australias
Biological Diversity, National Objectives and Targets for Biodiversity Conservation,
20012005, and other information on various biodiversity subjects, including World
Heritage, Australian Bio-regions, Ramsar Wetlands, and flora and fauna of National and
State significance.
In addition, the Earthwatch Institute provides an online biodiversity guide, Business and
Biodiversity. An Australian Business Guide for Understanding and Managing Biodiversity at
www.earthwatch.org.

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Chapter

Ozone-Depleting Substances
Background and Rationale
The ozone layer acts as a shield to protect the earths inhabitants from ultra violet rays, a principal cause
of skin cancer. Evidence of damage to the ozone layer and existence of a significant ozone hole has
prompted a decisive international response.
Substances implicated in ozone layer destruction include the chemical families known as
chlorofluorocarbons (CFCs), hydrochlorofluorocarbons (HCFCs) and halons, which have potential uses in
refrigeration, fire suppression, fumigation, laboratory operations and chemical processes.
Significant global progress has been made toward phasing out the use of these substances through an
international treaty, the Montreal Protocol on Substances that Deplete the Ozone Layer. In Australia, laws
have been established to phase out or limit the use of ozone-depleting substances in accordance with this
Treaty.

Australian Context
The Commonwealth Department of Environment and Heritage (Environment Australia) fulfils Australia's
international obligations under the Montreal Protocol on Substances that Deplete the Ozone Layer.
The Department administers and enforces the Ozone Protection Act 1989 and matching regulations, and has
developed national strategies to phase out the use of ozone-depleting substances such as halons, methyl
bromide, hydrochlorofluorocarbons (HCFCs), and chlorofluorocarbons (CFCs).

CORE

Ozone-Depleting Substances Indicator


Indicator

Name

Units

Type

GRI Equivalent

Page

Ozone Depleting
Substances 1

Ozone depleting substances


(ODS) emissions

tonnes of CFC-11
equivalent

Core

EN9. Use and emissions


of ozone-depleting substances
Ozone-Depleting Substances

57

Indicator 1:
Ozone-Depleting Substances (ODS) Emissions
This indicator provides information on how an organisation can identify, calculate and report emissions of
ozone-depleting substances associated with its activities, products and services.

Methodology
Every ozone-depleting substance has an ozone-depleting potential, based on its chemical composition that
reflects its capacity to damage the ozone layer. CFC-11 has an ozone-depleting potential of one.
To provide a consistent approach, ozone-depleting potentials are used to convert total emissions of ozonedepleting substances to tonnes of CFC-11 equivalent.
Losses or use of ozone-depleting substances are generally tracked by monitoring purchases of the
substances, or through monitoring inventory changes. Once losses of individual substances are
determined, emissions are converted to tonnes of CFC-11 equivalent using the following equation:
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Total ozone depleting substance emissions = Sum of (emissions of each ozone-depleting


substance x ozone-depleting potential for
each substance).

Ozone-depleting substances which should be included in emissions estimations are listed online within the
Montreal Protocol on Substances that Deplete the Ozone Layer at www.unep.org/ozone/montreal.
shtml. This publication also includes a list of the ozone-depleting potentials for the various substances.

Example
OzyAir is a regional airline operating 22 aircraft on domestic routes throughout south-eastern
Australia, linking regional centres to Melbourne and Sydney.
OzyAir uses two ozone-depleting substances for its operations. The airline has a permit to use halon
1301 as a fire suppressant within aircraft, and uses HCFC-22 as a refrigerant within cool rooms to
refrigerate fresh produce transported by air.
OzyAir acquires halon 1301 and HCFC-22 on demand to replace gas losses. The airline purchased
0.005 tonnes of halon 1301 and 0.0405 tonnes of HCFC-22 during the reporting period.
The ozone-depleting potential of halon 1301 and HCFC-22 are 10 and 0.055, respectively. The quantity
of emissions in tonnes of CFC-11equivalent is calculated as follows:

Ozone depleting substance emissions = 0.005 x 10 +0.0405 x 0.055 = 0.052 tonnes


of CFC-11equivalent

F U R T H E R I N F O R M AT I O N O N OZ O N E - D E P L E T I N G S U B S TA N C E S
I N D I C AT O R S A N D M E T H O D O L O G I E S
Additional information on the Montreal Protocol on Substances that Deplete the Ozone
Layer and relevant Australian initiatives is available online from Environment Australia at
www.ea.gov.au/atmosphere/ozone.

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Chapter

Suppliers
Background and Rationale
There is growing recognition that activities upstream and downstream of an organisations core operations
have potential to cause environmental impact.
As sustainability strategies mature, some organisations are seeking to align with suppliers that share a
commitment to careful management of environmental issues.
In practice, this is achieved by incorporating environmental criteria into supplier evaluation processes, and
in some cases, by setting minimum environmental management standards such as ISO14001 accreditation.
Several automotive manufacturing companies require key suppliers to have a program for ISO 14001
implementation. To lead the process, these companies often provide environmental awareness training
packages to assist with the introduction of environmental management systems.
Arrangements with suppliers can be structured to add value by simultaneously reducing costs and
environmental impacts. For example, rather than a waste disposal contract that rewards the contractor for
increases in waste produced, some organisations are realising the benefits of programs where the waste
contractor shares in savings from waste minimisation. Agreements of this type are beneficial for both
business and the environment, foster innovation, and build strong relationships between organisations and
service providers.

Suppliers Indicator
Indicator

Name

Units

Type

GRI Equivalent

Suppliers 1

Initiatives to encourage

N/A

Additional

EN33. Performance of suppliers


improved environmental relative
to environmental components
performance of suppliers
of programmes and procedures
describd in response to Governance
Structure and Management Systems
section (Section 3.16)

Possible Information to Report


Processes that identify and characterise environmental impacts associated with the activities
of suppliers.
Environmental performance criteria standards for suppliers, and in supplier selection procedures.
Contract arrangements which align environmental and economic benefits
Environmental performance checks.

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Products and Services


Background and Rationale
Environmental impacts occur at various stages of the lifecycle of products or services. For example, to
understand the complete environmental implications of a motor vehicle, it is necessary to consider impacts
associated with:
Extracting the metals used to form vehicle components.
Consumption of raw materials, energy and water.
Emissions and discharges from the manufacturing process.
Emissions arising from vehicle use.
The likely method of disposal at end of life.
It is clear that integrating environmental considerations with product and service design and development
processes is a key opportunity for organisations today.
Intervention at this stage is an effective and efficient way to reduce the ecological footprint of products
and services, and has potential to open up new markets.
Examples of new products developed from a desire for environmental impact reduction include the
compact fluorescent light, and water efficient shower heads.
Lifecycle assessment is a holistic approach towards examining environmental effects of products and
services. This tool can be used by organisations to make decisions regarding production technologies,
materials, packaging and service delivery methods. The scale and complexity of lifecycle assessments will
vary according to the nature of products and services.
Environment Australia has released several publications focusing on designing for the environment, and
environmentally-friendly products, including Product Innovation The Green Advantage and Shop Smart
Buy Green. These references are available online at: www.ea.gov.au/industry/eecp/tools/tools6.html
#links. The ecological footprint concept is further developed by the Victorian EPA at
http://www.epa.vic.gov.au/eco-footprint.

Products and Services Indicators


Indicator

Name

Units

Type

GRI Equivalent

Products and
Services 1

Describe where relevant, major


environmental impacts at each stage
of the life cycle of principal products
and services

Not applicable

Core

EN14. Significant environmental


impacts of principal products
and services

Products and
Services 2

Product and service stewardship


initiatives including efforts to improve
product design and lessen impacts
associated with manufacturing,
use and disposal

Not applicable

Core

EN15. Percentage of the weight


of products sold that is reclaimable
at the end of the products useful life
and the percentage that
is actually reclaimed

Possible Information to Report


Processes that identify and characterise environmental impacts associated with each stage of the life
cycle of products and services.
Initiatives that mitigate environmental impacts of specific stages of product or service life cycle.
Any integration of environmental assessment criteria with product or service design processes.

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Chapter

Compliance
Background and Rationale
A wide variety of environmental legislation exists in Australia to provide a legal basis for environmental
protection. Compliance with environmental laws is a fundamental requirement of sound and responsible
environmental management.
In Australia, States and Territories administer the majority of legislation in relation to management of waste
and emissions to air, land and water. For the purposes of this indicator, applicable laws include all legislation,
regulatory agreements, permits or licences. Non-compliance occurs when an organisation is served a
notice or prosecuted by an authorised regulatory agency.
Compliance performance is generally reported either as the number of breaches of environmental laws or
the total financial penalty arising from those breaches. There are merits in both approaches. The number
of breaches is an indicator of the organisations compliance culture, whilst the scale of fines indicates the
materiality of legislative breaches.
Where an organisation is large and has a number of regulatory breaches across its operations, it is useful to
report these in relation to defined severity categories. As the gravity of breaches can vary considerably, this
approach enables the report audience to assess the seriousness of non-compliance issues.
Spills of oils, fuels, chemicals or liquid waste can potentially lead to non-compliance with environmental
laws. When spilt material is discharged to land or waterways, regulatory action may result. An organisation's
record regarding occurrence of spills is therefore an indicator of its ongoing capacity to comply with
regulatory requirements.

Compliance Indicators
Indicator

Name

Units

Type

Compliance 1

Incidences of and penalties for


non-compliance with applicable laws

Not applicable Core

EN16. Incidents of and fines


for non-compliance with all applicable
international declarations/conventions/
treaties, and national, sub-national,
regional, and local regulations associated
with environmental issues

Compliance 2

Significant spills of chemicals, oils


and fuels in terms of total number
and total volume

Litres

EN13. Significant spills of chemicals,


oils and fuels in terms of total number
and total volume

Core

GRI Equivalent

Possible Information to Report


The number of regulatory breaches.
Details relating to significant regulatory breaches.
The sum of all financial penalties for regulatory breaches.
The number of spills and volume of spilt material by spill type.

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Appendix

Linking this Guide to the Global Reporting


Initiative (GRI 2002)
The suite of indicators in this Guide is closely aligned to the environmental indicators contained within the
Global Reporting Initiatives (GRI) 2002 Sustainability Reporting Guidelines. The process proposed
therefore provides a basis for organisations to report in a manner that focuses on Australian needs and
conditions, whilst being consistent with the GRI.
The Table below shows the links between indicators contained in this Guide and corresponding GRI
indicators. Some minor deviations from the GRI have been adopted to adapt the GRI for Australian
conditions, or in response to stakeholder feedback. Differences are explained in the right hand column of
the Table.
Category

Guide Indicator

GRI 2002Indicator

Comment

Energy

Energy 1:
Direct energy use (kJ)

EN3. Direct energy use


segmented by primary source

This Guide indicator corresponds broadly to the GRI indicator


and is in general alignment with the GRI draft Energy Protocol

Energy 2:
Indirect energy use (kJ)

EN4. Indirect energy use

This Guide indicator corresponds broadly to the GRI indicator


except that energy used to deliver energy products is for
simplicity limited to the energy used to produce electricity
consumed.

Energy 3: Initiatives to use


renewable energy sources and
increase energy efficiency

EN17. Initiatives to use


renewable energy sources and
to increase energy efficiency

This Guide indicator corresponds directly to the GRI indicator

EN8. Greenhouse gas emissions.


(CO2, CH4, N2O, HFCs,
PFCs, SF6)

This Guide indicator is closely aligned to the GRI indicator


although the Guide adopts a simplified Australian calculation
methodology

Greenhouse Greenhouse 1:
Total greenhouse gas emissions
(tonnes CO2 equivalent)

Water

Materials

Waste

62

Greenhouse 2:
Initiatives

No GRI equivalent aimed at reducing This Guide indicator allows organisations to report on specific
greenhouse gas emissions
initiatives to decrease greenhouse gas emissions

Water 1: Total water use (m3)

EN5. Total water use

This Guide indicator corresponds directly to the GRI indicator

Water 2:
Total water reused (m3)

EN22. Total recycling and


reuse of water

This Guide indicator corresponds broadly


with the GRI indicator

Water 3: Initiatives
to decrease water consumption
or increase water reuse

No GRI equivalent

This Guide indicator, not included in the GRI allows


organisations to report initiatives to minimise water
consumption

Materials 1:
Total material use (tonnes)

EN1. Total materials use other


than water by type

This Guide indicator corresponds broadly with the GRI


indicator, although fuel is excluded from the definition
of material in this instance

Materials 2:
Initiatives aimed at using postconsumer recycled material and
waste from industrial sources

EN2. Percentage of materials


used that are wastes (processed or
unprocessed) from sources external
to the reporting organisation

This Guide indicator is a simplified version of the


GRI indicator to allow qualitative or quantitative assessment
of material reuse

Waste 1: Total amount of solid


waste by type and destination.

EN11. Total amount of waste


by type and destination

This Guide indicator directly corresponds


to the GRI indicator

Waste 2:
Total amount of hazardous
waste produced (as defined
by the Hazardous Waste Act
or State regulations) (tonnes)

EN31. All production, transport,


import, or export of any waste
deemed hazardous under the
terms of the Basel Convention
Annex I, II, III and VIII

This Guide indicator modifies the wording of the


GRI indicator to adapt it for Australian conditions. Reference
to the Basel Convention has been removed and local
definitions included

Waste 3:
Initiatives and improvements

No GRI equivalent

This Guide indicator allows organisations to report specific


steps they have taken to minimise waste

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Category

Guide Indicator

GRI 2002Indicator

Comment

Emissions
to Air, Land
and Water

Emissions 1:
Significant emissions
to air and land (tonnes)

EN10. NOx, SOx and other


significant air emissions by type
of the National Pollutant Inventory
(generally applicable to NPI reporters)

This Guide indicator corresponds to the GRI indicator,


but is adapted to suit Australian statutory reporting
requirements performed by many organisations
as a requirement

Emissions 2:
Significant discharges

EN12. Significant discharges


to water to water by discharge
type (tonnes)

This Guide indicator is closely aligned to the GRI indicator


by type

Emissions 3: Initiatives to
reduce discharges and emissions

No GRI equivalent

This Guide indicator allows reporters to highlight specific


initiatives to reduce pollution discharges and emissions

Biodiversity

Biodiversity 1:
EN6. Location and size of land ,
Location and size of land
owned leased, or managed
owned,leased or managed in
in biodiversity-rich habitats
biodiversity-rich or ecologically
significant habitat areas (hectares)
Biodiversity 2:
Major impacts on land owned,
biodiversity associated with the
organisations activities,
products and services

EN7. Description of the major


impacts on biodiversity associated
with activities and/or products and
services in terrestrial, fresh-water,
and marine environments

This Guide indicator is closely aligned to the GRI indicator

Biodiversity 3:
Initiatives and Improvements
(biodiversity)

EN27. Objectives, programmes and


targets for protecting and restoring
native ecosystems and species
in degraded areas

This Guide indicator broadly corresponds to GRI indicator

Ozone
Depleting
Substances

Ozone Depleting Substances 1: EN9. Use and emissions of ozoneOzone-depleting substance


depleting substances emissions
(tonnes of CFC-11 equivalent)

Suppliers

Suppliers 1:
Initiatives to encourage
improved environmental
performance of suppliers

This Guide indicator corresponds to GRI Indicator EN9


although for simplicity the Guide indicator suggests
reporting ODS use utilising data that is relatively easy
to obtain (eg. inventory changes, purchase quantities)

EN33. Performance of suppliers


This Guide indicator broadly corresponds to GRI indicator
relative to environmental components of programmes and procedures
described in response to Governance
Structure and Management Systems
section (Section 3.16 in GRI 2002)
EN14. Significant environmental
impacts of principal products
and services

This Guide indicator broadly corresponds to GRI indicator

Products and Services 2:


Product and service stewardship
initiatives including efforts
to improve product design and
lessen impacts associated with
manufacturing, use and disposal

EN15. Percentage of the weight


of products sold that is reclaimable
at the end of the products useful
life and percentage that is actually
reclaimed

This Guide indicator broadly corresponds to GRI indicator,


and includes scope to discuss initiatives where applicable

Compliance 1:
Incidences of and penalties
for non-compliance with
applicable laws

EN16. Incidents of and fines or noncompliance with all applicable international declarations/conventions/
treaties, and national, sub-national,
regional, and local regulations
associated with environmental issues

This Guide indicator corresponds strongly with the GRI.


Simplified language for Australian first time reporters

Compliance 2:
Significant spills of chemicals,
oils and fuels in terms of
total number and total volume

EN 13. Significant spills of chemicals,


oils, and fuels in terms of total
number and total volume

This Guide indicator directly corresponds to GRI indicator

Products
Products and Services 1:
and Services Describe where relevant major
environmental impacts at each
stage of the life cycle of principal
products and services

Compliance

This Guide indicator is closely aligned to the GRI indicator


and references the forthcoming GRI Biodiversity Protocol

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Appendix

Basic Information and Conversion Factors


Calorific value

The quantity of heat produced by a given mass of fuel upon


complete combustion, generally expressed in joules per kilogram

Joule

A unit of energy or work

Kilowatt hour

A unit of work equivalent to the work done when a rate


of work of 1,000 watts is maintained for one hour

Watt

Unit of power (rate of energy use)

Abbreviations
Abbreviation

Prefix

Symbol

Giga (billion 1,000,000,000)

10

Mega (million 1,000,000)

103

kilo (thousand 1,000)

10

Equivalences
1 Watt

1 Joule/Second

1 Watt-hour

3600 Joules

1000 Watt-hours

1 Kilowatt hour (kWh)

1000 kilograms

1 tonne

1,000,000,000 Joules

1 Gigajoule (GJ)

1,000,000 litres

1 Megalitre (Ml)

1 Megalitre

1 cubic metre

Conversion Factors
Conversion
kWh to J

64

Formula

Units
6

Joules

-6

kWh x 3.6x10

J to kWh

J x 1/3.6 x 10

kWh

kWh to MJ

kWh x 3.6

MJ

MJ to kWh

MJ x 0.278

kWh

kWh to GJ

kWh x 3.6 x 10-3

GJ

GJ to kWh

GJ x 278

kWh

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Appendix

Further Information
Australian Greenhouse Office (AGO)
The AGO site is the principal source of information relating to greenhouse and ozone issues in Australia. The AGO
administers the Greenhouse Challenge program, which includes detailed methodologies for calculating greenhouse
gas emissions.
www.greenhouse.gov.au

The Commonwealth Department of Environment and Heritage (Environment Australia)


Environment Australia has implemented a number of initiatives to assist business with environmental reporting.
The following two publications provide step-by-step guidance on preparing public environmental reporting.

A Framework for Public Environment Reporting: An Australian Approach. Environment Australia (March 2000)
(also available online) www.ea.gov.au/industry/finance/publications/framework
Environmental Reporting: Handbook for Small and Medium Size Businesses. Australian Business Limited (June 2001)
(also available online)
http://www.ea.gov.au/industry/finance/publications/smehandbook.html

Commonwealth Department of Family and Community Services (FaCS)


FaCS is developing two guides to assist Australian organisations to report on their social and economic performance.
www.facs.gov.au

Environment Protection and Biodiversity Conservation Act


This site contains relevant information pertaining to the EPBC Act 1999, in particular, guidance on biodiversity
indicators for nationally significant flora, fauna and sites of ecological significance.
www.ea.gov.au/epbc

Global Reporting Initiative (GRI)


The Global Reporting Initiative (GRI) is an international, multi-stakeholder initiative aimed at creating a common global
framework for voluntary reporting of the economic, environmental and social impact of organisation-level activity. The
GRI mission is to elevate the comparability and credibility of sustainability reporting practices worldwide.
www.globalreporting.org

The Institute of Social and Ethical AccountAbility


AccountAbility is an international, not-for-profit, professional institute dedicated to promoting social, ethical and
overall organisational sustainability. Its AA1000 series provides a framework to assist organisations to build
accountability and social responsibility through quality social and ethical accounting, auditing and reporting.
www.accountability.org.uk

ISO 14000 Standards


The ISO 14000 series of Standards provides management tools to assist organisations to address environmental risks
associated with their operations. The environmental management systems standard ISO 14001 provides a framework
to identify significant environmental aspects and impacts, and provides a basis for performance improvement.
ISO 14031 provides guidance on how organisations can evaluate their environmental performance. The standard
addresses the selection of suitable performance indicators as a basis for internal and external environmental reporting.
ISO Standards are not available free of charge, however information relevant to the Standards and purchase details are
available online.
www.iso.org/iso/en/ISOOnline.frontpage

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National Pollutant Inventory (NPI)


The NPI is a database of key pollution sources across Australia. It contains information for NPI reporters, including
access to methodologies for emissions calculations.
www.npi.gov.au

National Round Table on the Environment and the Economy (Canada)


The NRTEE provides a simple framework and methodologies guide for organisations wishing to report eco-efficiency
indicators in public environmental reports. It focuses on core eco-efficiency indicators of energy, waste and water
intensity.
www.nrtee-trnee.ca/eng/programs/Current_Programs/Eco-efficiency/eco-efficiency_e.htm

Prime Ministers Community Business Partnership


The Prime Minister has asked the Partnership to take forward a national framework of triple bottom line reporting for
the corporate sector. In this context the Partnership is currently developing and information statement on TBL that
will describe the economic and social value of TBL for Australia from the perspective of business government and
community organisations.
www.partnership.zip.gov.au

SustainAbility
SustainAbility is a consultancy focusing on sustainable development practices. It provides many relevant online
documents regarding how sustainable development philosophies and practices fit within business strategy and the
Triple Bottom Line.
www.sustainability.com

United Kingdom Department of Environment, Food and Rural Affairs (DEFRA)


DEFRA coordinates environmental protection in the United Kingdom. Similar to Environment Australia, it provides
online links to United Kingdom strategies and protocols for environmental management.
www.defra.gov.uk

United Kingdom Government Sustainable Development


The United Kingdom government has established a Sustainable Development section within its Department of
Environment, Food and Rural Affairs to provide leadership to industry and commerce on sustainable development.
www.sustainable-development.gov.uk/

United Nations Department of Economic and Social Development


The UN Department of Economic and Social Development administers a range of programs across economic,
environmental and social dimensions. It provides online links to UN initiatives and programs in sustainability, the
environment and public reporting, along with links to information and guidance on international environmental and
sustainability law, including the Montreal Protocol, the Basel Convention and the Kyoto Protocol.
www.un.org/esa/index.html

World Business Council for Sustainable Development (WBCSD)


The WBCSD is a coalition of 160 international companies united by a shared commitment to sustainable development
via the three pillars of economic growth, ecological balance and social progress. The WSBC has prepared Eco-efficiency
Guidelines to assist businesses to report on environmental influences in relation to product and service value. These
guidelines are available online.
www.wbcsd.org

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Appendix

Participating Organisations
Australian Chamber of Commerce
and Industry
Aurion Gold

Melbourne Port Corporation


Melbourne Water
Monash Sustainability Enterprises

Avcare

MIM Holdings

Australian Greenhouse Office

Minerals Council of Australia

Australian Bureau of Statistics

Murray Goulburn Co-operative Company

Barton Group

National Pollutant Inventory

Bendigo Bank

Ocean Watch

BP Australia

Origin Energy

Canegrowers Association

Quality Assurance Services

Centre for Australian Ethical Research


Commerce Queensland

Queensland Environmental
Protection Agency

Connell Wagner

Resources NSW

Consolidated Rutile

Rio Tinto

CSR

Sustainable Energy Authority Victoria

Commonwealth Department of Employment


and Workplace Relations

SIRIS

Commonwealth Department of Family


and Community Services
Commonwealth Department of Industry,
Tourism and Resources
Commonwealth Department of Natural
Resources and Environment
Victorian Department of Transport
and Regional Services
Commonwealth Department of Treasury

Sinclair Knight Merz


Sydney Water Corporation
Thiess
Toyota
University of Western Sydney
Victorian Water Industry Association
VicRoads
Victorian Environment Protection Authority
Westpac

Durham Davis & Associates

Westpac Governance Advisory Service

EcoSTEPS

Worthwhile Projects

Energex
Ford Motor Company of Australia
Global Reporting Initiative
Insurance Group Australia
KPMG

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Appendix

Evolution of Triple Bottom Line Reporting


The concept of public environmental reporting emerged strongly from the United Nations Conference on
Environment and Development held in Rio de Janeiro in 1992. It was a significant contribution from the
business community and was an important step forward, as it allowed organisations to engage with
sustainability. In the following decade, leading businesses recognised potential benefits of environmental
reporting and began voluntarily disclosing environmental performance in public documents.
In response to calls from business and industry in Australia, the Commonwealth Government published
the Australian Public Environmental Reporting Framework in 2000. The framework is a step-by-step
manual for organisations wishing to prepare a public environmental report.
The next evolution in voluntary reporting was to expand environmental reporting to include social and
economic criteria the Triple Bottom Line (TBL). During the late 1990s an intense international multistakeholder effort focused on developing a consistent set of TBL indicators for reports led to the release
in 2000 of the Global Reporting Initiatives first Sustainability Reporting Guidelines.

Please cut along here

In September 2002, the GRI updated its Sustainability Reporting Guidelines. These guidelines, which were
launched at the World Summit on Sustainable Development in Johannesburg, have been well received by
both business and government. Changes include a significantly expanded suite of social and economic
indicators, a cross-referenced table so readers can track content and compare reports more readily, and a
revised discussion on the principles that underpin sustainability reporting.

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Appendix

Feedback Form
If you have used this Guide or simply would like to contribute to its further evolution so it can more
effectively meet the needs of reporting organisations and their stakeholders, we would like to receive your
feedback. This can be done either by contacting Environment Australia directly or completing appropriate
sections of this form and returning it to:
Director
Industry Partnerships Team
Policy Co-Ordination and Environment Protection Division
Environment Australia
PO Box 787 CANBERRA ACT 2601
or email fspt@ea.gov.au

Have you used this Guide in developing or assisting your organisations environmental reporting program? Has it been useful?

.................................................................................................
.................................................................................................
.................................................................................................
.................................................................................................
.................................................................................................
.................................................................................................
Is the information in Part A Why Report on Environmental Performance appropriate and useful for reporters or stakeholders?
What additional information could be included to improve this part?

.................................................................................................
.................................................................................................
.................................................................................................
.................................................................................................
.................................................................................................
.................................................................................................
Are the environmental management indicators and methodologies appropriate and useful for reporters and stakeholders?
How could they be improved?

.................................................................................................
.................................................................................................
Please cut along here

.................................................................................................
.................................................................................................
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Are the environmental issues categories appropriate and useful for reporters and stakeholders? How could they be improved?

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Are the environmental performance indicators and methodologies appropriate and useful for reporters and stakeholders?
How could they be improved?

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Are there any additional environmental issues and environmental management and performance indicators and methodologies
that should be included? If so please provide details.

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How can Environment Australia further assist and promote TBL reporting?

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Please cut along here

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EA/Triple Bottom Cover.FA2

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