About this Report
AGL recognises that transparent reporting about our strategy, our performance and our challenges is an essential part of our responsibility to our shareholders and other stakeholders, and to maintaining our licence to operate.
This report is designed to be read in its entirety. The required elements of the Directors’ Report, including the Operating and Financial Review (OFR) as required by ASIC Regulatory Guide 247, are covered on pages Managing Director & CEO’s Report to Approval of Directors’ Report . Commentary on AGL’s financial performance specifically is contained on pages Financial Review to Portfolio review reconciliation and references information reported in the Financial Report (pages Financial Report to Directors’ Declaration ). Note, the declaration forms part of the Financial Report under the Corporations Act.
This report has been prepared with reference to the International Integrated Reporting Council’s (IIRC) International Integrated Reporting Framework, as we believe it provides a useful basis for disclosing how we create sustainable value for our shareholders and other stakeholders over time. We have used the framework to demonstrate how consideration of risks and opportunities (both those arising from our business and those that exist in a broader operational context), our purpose and our values drive our strategy. We have also considered how the execution of our strategy creates value, applying a lens that is broader than financial performance alone.
AGL follows the guidance provided by the Financial Stability Board's Task Force on Climate-Related Financial Disclosures voluntary disclosure framework (TCFD Framework). 'Pathways to 2050', our FY20 TCFD report which accompanies the Annual Report, details how we consider governance, risk management, strategy, and metrics and targets in relation to climate change. A summary of the TCFD disclosures is also included as part of the Environment Business Value Driver scorecard on page Climate scenario analysis .
This is the first year that AGL has aligned our disclosures to the Sustainability Accounting Standards Board (SASB) standards for Electrical Utilities and Power Generators and Gas Utilities. A SASB index is included in the ESG data centre on our website which identifies the extent to which each SASB disclosure requirement has been applied. In addition, AGL has continued to prepare our disclosures in accordance with the GRI Standards: Core option. The ESG data centre includes a GRI index that outlines which topic-specific GRI standards have been used in the preparation of this report.
The Remuneration Report (page Remuneration Report to KMP share ownership ) and the Financial Report (page Financial Report to Independent Auditor's Report of the Financial Report ) have been audited by Deloitte. Deloitte was also engaged to undertake limited assurance of the Key Performance Indicators included in each Business Value Driver scorecard (page Customers to Finance in accordance with the Australian Standard on Assurance Engagements ASAE 3000 Assurance Engagements other than Audits or Reviews of Historical Financial Information issued by the Australian Auditing and Assurance Standards Board (ASAE 3000). The Key Performance Indicators are to be read in conjunction with the definitions in the Glossary . Full details of the assurance process and outcome are included in the Assurance statement .
Business Value Drivers
The International Integrated Reporting Framework describes six forms of capital (financial, manufactured, intellectual, human, social and relationship and natural) but encourages organisations to adopt a categorisation and terminology appropriate to their business. In this report, AGL has grouped and defined these capitals into the seven distinct Business Value Drivers outlined below. Icons are used throughout this report to demonstrate how each Business Value Driver links to strategy, risk management and remuneration, and to demonstrate key relationships and trade-offs between Business Value Drivers.
Social and relationship capital
Effective and trusted relationships with residential, business, and wholesale customers.
COMMUNITIES & RELATIONSHIPS
Social and relationship capital
The strength of working relationships and trust with key stakeholders; brand and reputation.
The competencies, experience, behaviours, engagement and wellbeing of AGL’s people.
Access to and stewardship and use of scarce natural resources, and AGL’s impact on the natural environment, both directly and as a result of the products and services provided.
Effective and efficient use of assets throughout the value chain that AGL uses, owns or has control of, to enable delivery of energy to the market and to customers.
SYSTEMS & PROCESSES
Availability and development of processes, knowledge, insights, systems and data, including energy portfolio management and customer analytics, to support and enhance business activities.
Access to and management of financial capital to support execution of strategy and investment in growth opportunities through retaining financial market support.
Information about our performances and outlook in respect of each Business Value Driver can be found
on this page.
Forward looking statements
This report includes information about AGL’s performance for the period 1 July 2019 to 30 June 2020. Any forward-looking statements are based on AGL's current expectations, best estimates and assumptions as at the date of preparation, many of which are beyond AGL’s control. These forward-looking statements are not guarantees or predictions of future performance, and involve known and unknown risks, which may cause actual results to differ materially from those expressed in the report.
Sustainable Development Goals
The United Nations Sustainable Development Goals (SDGs) are a set of 17 interconnected goals that form a global benchmark for achieving a sustainable future for all. While many of the SDGs intersect with AGL's operations, the three SDGs we assess as most material to our strategy and operations comprise SDG 13 – Climate Action; SDG 7 – Affordable and Clean Energy; and SDG 9 – Industry, Innovation and Infrastructure.