Stakeholder Engagement.

Employees

To remain competitive we need a high performance culture where people are safe, engaged, accountable, empowered, recognised and rewarded

Formal and informal engagement including:

Employee Engagement Survey
The AGL Engagement Survey is undertaken annually, and  provides employees with the opportunity to provide feedback about the organisation, and make suggestions for improvement.  The results from the survey are analysed in a number of ways, including the determination of an overall 'Engagement Score' for the organisation.

360^o feedback program for senior executives, which collects feedback on executive performance from a range of employees, including peers, direct reports and senior management.

Senior Leadership Group forum, which provides a forum to inform and update leaders across the business.

CEO round table events
CEO round table events provide selected employees with an opportunity to discuss current projects and concerns with the CEO.  During 2008/09 eight events were held, involving more than 76 employees. 

Monthly/ quarterly business unit “Town Halls” (employee updates).

Employee “Roadshows”
Semi-annual Employee Roadshows are held to present information to employees, including financial results and operational highlights, and outline AGL's planned business strategies for the next 12 months.  The Roadshows provide employees with the opportunity to receive relevant and timely information about AGL’s performance and strategies, and to ask questions of relevant personnel, including executives and the CEO.

Energy for Life survey and focus groups, which collected employee feedback about the continued relevance of the charities and causes supported through the Energy for Life program. 

Investment Community

Investors are increasingly interested in companies’ responses to social and environmental risks, and in particular, in AGL’s preparation for a carbon-constrained future. In addition to our market disclosure obligations, we recognise the importance of engaging with the investment community about the non-financial risks and opportunities that may influence the company’s performance and growth in the longer-term.

Annual General Meeting (AGM)
The AGM provides Shareholders with the opportunity to review financial results, and to vote on a range of issues, including Director remuneration, the election of directors, and constitutional conditions.  The AGM also provides the opportunity for Shareholders to ask questions of AGL's Directors concerning performance and strategy.  It is a legal requirement for AGL to conduct an Annual General Meeting each year.

ASX announcements
AGL makes regular announcements to the ASX concerning significant matters including financial results, acquisitions, and divestments so that the investment community has timely access to material data and other information that may affect investment decisions.  During 2008/09, AGL made over 70 ASX announcements.

Annual Report and Sustainability Report
AGL publishes an Annual Report and Sustainability Report each year to provide AGL's stakeholders (including investors) with relevant financial and non-financial results for the year, and to provide a summary of AGL's business strategies and plans for the next year.  Producing an Annual Report is a legal requirement for AGL, and Shareholders are able to provide direct feedback on the results contained within the report at the Annual General Meeting.  AGL voluntarily publishes an annual sustainability report to provide a broader spectrum of performance information regarding sustainability.

Institutional Investor and Equity Analyst events

Investor questionnaires
The Dow Jones Sustainability Index, the Carbon Disclosure Project and the FTSE4Good Index allow the investment community to collect relevant financial and non-financial information to facilitate informed investment decisions.  The collected information is published in a range of publicly available benchmarking reports, indexes and rankings.

Independent qualitative and quantitative surveys of our equity investors (including semi-annual corporate confidence index)

Government

Governments have responsibility for the provision of essential services such as energy, and directing Australia’s response to climate change.

AGL’s business is affected by policy decisions of the Energy and Environment/Climate Change departments of the Australian Federal Government and the New South Wales, Victorian, Queensland and South Australian State Governments. 

AGL's Government Affairs personnel have regular dialogue with relevant State and Federal Governments in relation to a range of policy issues - including meetings, policy submissions, and briefings.

Policy submissions to relevant government departments (both directly and via industry associations).

Membership of Labour and Liberal political networking forums where these are established in each State where AGL operates.  These comprise Progressive Business Victoria (ALP), Progressive Business South Australia (ALP), Business Dialogue New South Wales (ALP) and the Millennium Forum New South Wales (Liberal).

Regulators

State energy regulators are responsible for price regulation, and their decisions can have a significant influence on our business.

A consistent, efficient, national regulatory framework for Australia’s energy markets would reduce the regulatory burden and provide retailers with the opportunity to deliver more effective and consistent services to customers.

Meetings and submissions with New South Wales, Victorian, Queensland and South Australian energy regulatory bodies, including direct engagement and activities undertaken as part of industry associations

Investment partners, joint ventures and suppliers

We have a range of investments in upstream electricity generation and gas production.

Varies by investment. Mechanisms include meetings and correspondence, as well as more formal arrangements including representation on the Loy Yang Power Board as well as the Environment Committee. 

AGL’s Purchasing Policy is available on the website. The AGL Purchasing Policy expresses our commitment to purchase goods and services which are produced and delivered under conditions that do not involve the abuse or exploitation of any persons and which have the least negative environmental consequences.

Energy Industry

AGL plays an active role in leading industry support for renewable and greenhouse initiatives within the Australian energy industry. 

During 2008/09, AGL continued to participate in the Business Council of Australia, the National Generators Forum, the Australian Financial Markets Association, the Energy Retailers Association of Australia and the Clean Energy Council.  AGL is also a member of the Energy Supply Association of Australia (esaa) and is a signatory to the esaa Sustainable Practice Framework. 

Residential customers

To maintain and improve our market share within Australia’s highly competitive energy market, it is essential that we act and respond to customer feedback, as well as working internally to improve the service delivered to our customers

AGL Customer Council
As part of AGL’s commitment to customer service, the AGL Customer Council was formed in June 1998.  The Council includes representatives from a range of community and consumer groups.  The continuing aim of the Council is to act as a forum for communication between AGL and representatives of our residential and small business customers.  The Customer Council meets on a quarterly basis and is briefed on a wide range of matters that affect AGL customers and the communities in which AGL operates.  In 2008/09 the possible consequences of the introduction of the proposed Carbon Pollution Reduction Scheme (CPRS) were discussed with the Customer Council. 

Customer focus groups

Qualitative and quantitative customer surveys

Feedback mechanisms available to customers include an on-line information request facility

AGL’s Customer Advocacy team also deals directly with customer concerns

Vulnerable customers

Energy retailers, government and the community sector need to work collaboratively to support customers who are experiencing difficulty accessing and affording essential services such as energy.

AGL Customer Council
The AGL Customer Council includes representatives from a range of community and consumer groups such as UnitingCare, St Vincent de Paul and the Consumer Law Advocacy Centre. The Customer Council takes particular interest in the Staying Connected program, and other issues relating particularly to vulnerable customers.
The Customer Council provides feedback on AGL’s sustainability strategy and reporting and Customer Council Sustainability Workshops (Stage 1) were held in during 2008/09.  

Staying Connected Market Research

Industrial and Commercial customers

We intend to assist our major customers by helping them maintain their competitiveness in view of emerging changes in energy efficiency and carbon regulation

Major customer briefing days

Baseline engagement assessment of Top 100 customers

Community and General Public

Our success is shaped and measured not only by the financial outcomes of what we do, but also by the social and environmental consequences our decisions and actions have on the wider community.

We recognise that making a contribution to the communities in which we work and live grows and strengthens that community, an outcome from which everyone benefits.

Partnerships and consultation with advocacy and special interest groups

Local Communities

Engaging with the community on development projects is vital to the long-term success of our business. Only by engaging the community at every stage of the development process, with transparency, accountability and regular communication, are we able to deliver and operate those projects and maintain our reputation

We consult with and obtain feedback from local communities as part of the development approval and construction processes for each major project.

Community Consultation Committees
Community Consultation Committees (CCCs) for upstream gas projects, including the Camden Gas Project, the Hunter Gas Project and the Gloucester Gas Project.  Each CCC is chaired by an independent chairperson and includes local council appointed representatives, local residents, local environment groups and AGL representatives.  The CCCs form a key forum for community involvement. 

Hallett Wind Farm Community
In Hallett, South Australia, AGL is operating one wind farm, a second is being commissioned, a third is in construction, and two additional wind farms are potentially being developed. AGL has established the AGL Hallett Wind Farm Community Fund. Through the Community Fund, AGL aims to provide annual grants to local community-based projects and groups for the next 25 years.  AGL will provide $15,000 for each wind farm (following development approval) each year for the next 25 years, indexed at CPI.

AGL opened the AGL Information Centre in Burra in January 2009 to engage with the local community about the construction and operation of the wind farms. 

NGOs

Non government organisations (NGO) represent a range of community interests, including social welfare and environmental conservation

AGL Climate Change Council
The AGL Climate Change Council was established during 2008/09 and includes representatives from AGL and NGOs such as the WWF, Australian Conservation Foundation and the Climate Institute, to enable discussion and constructive dialogue on a range of issues relating to climate change, including government policy, emission reduction targets and program implementation.  The Climate Change Council meets quarterly.

Participation in NGO initiatives, including Green Electricity Watch and Earth Hour

AGL Customer Council