ESG Reporting PWC PDF

Best Practice Environmental
Social and Governance (ESG)

Reporting
Building on Report
Leadership’s publication
Tomorrow’s Reporting Today - November 2006
Report Leadership published Tomorrow’s Reporting Today in November 2006 as a stimulus
to further debate on the relevance and quality of current corporate reporting, and to develop
simple, practical ways to improve narrative and financial reporting. The Report Leadership
group encouraged feedback.
In providing feedback, PricewaterhouseCoopers Australia has focused on the importance of
environmental, social and governance (ESG) information in evaluating the long-term health of
a business. Appreciating that superannuation funds and other long-term investors are looking
for additional analysis, we have sought to enhance the Generico model by integrating and
reporting on performance and future prospects in key ESG areas of business.
If you would like to discuss this further, please contact:
Nick Ridehalgh Scott G Williams
Partner (Australia) Senior Manager (Australia)
+61 2 8266 4899 +61 2 8266 0338
nick.ridehalgh@au.pwc.com scott.g.williams@au.pwc.com
Note to the reader:

The Generico ESG disclosures in this publication are not intended to be a full annual report;
instead we envisage them being considered for inclusion and integrated as part of the full
annual report.
This ESG report should be read in conjunction with the original Report Leadership publication
on www.reportleadership.com.
Contents 02 Background to this report
02-06
Background to this report
04 Modelling the future
09-10
Chief executive’s statement
10 Chief executive’s statement
11 Our markets
11-12
Our markets
13-15
Our group strategy
13 Our group strategy
09 Generico -
example report
16-19
Our delivery of value
16 Our delivery of value
20-37
Our accounts
20 Our accounts
24 Appendix
34 Glossary
36 Bases for calculation
2 Explanatory Notes

This report builds on the Report Leadership publication
Tomorrow’s Reporting Today1 and proposes that additional
financial and narrative information about Generico’s delivery
of its environmental, social and governance (ESG) strategies
– both now and in the future – be included in the annual report.
For the purposes of this report, we consider ESG strategies to
be strategically important activities undertaken by Generico
to improve corporate governance, report and protect the
societies and environment in which it operates, and in so doing
enhance the company’s reputation and overall performance. It
represents in large part the intangible value of the company.
Traditionally, ESG matters have been reported in a stand-
alone ‘sustainability report’, if at all, with little alignment to the
organisation’s core strategy. Sustainability reports are also
mainly in narrative form, without explanatory graphics, and
include limited disclosure of the financial impacts of specific
sustainability activities. (Some activities are hard to value given
available data and/or complex externalities.)
However, our global research tells us that the capital
markets have been sceptical of governance, corporate social
responsibility (CSR) and sustainability reports, and have not
used the information to any great extent when completing
their analysis and recommendations. It appears that while
companies are providing additional information, they are not
explaining its medium to long-term value effectively to their key
stakeholders.
We therefore produced this report to help those preparing
corporate reports explain to key stakeholders the value of their
company’s ESG strategy and performance.
Our proposed reporting framework, which builds on the Report
Leadership publication, is based on four key principles:
1. Clear alignment to corporate strategy
2. Long-term targets and measurement of performance
3. Transparent reporting against ESG milestones
4. Quantification of returns from enhanced ESG reporting.
In addition, we assume that certain standing data (governance
framework, board and management committees, organisation
charts, roles and responsibilities), together with much of the
detail about ESG stories and key measures, will be provided on
the company website. Maintaining the website throughout the
year spreads the sustainability reporting load.
In this report, we have not addressed the question of whether
independent assurance is required over the information
disclosed.
1 www.reportleadership.com
Explanatory Notes 3
02-06
1. Clear alignment to corporate strategy
The chief executive’s statement clearly explains why
responsible and sustainable development of corporate
resources is fundamental to the company’s overall strategy.
ESG factors are embedded in operations and in the business’s
09-10
key strategic drivers.
Our markets details the challenges and successes facing the
company in embedding ESG practices as strategic priorities. It
focuses on the impact of changes to legislation, regulation and
other market activities on the company’s strategy and likely
performance.
2. Long-term targets and measurement

of performance
11-12
Our markets
Our group strategy provides a single point of reference for
all ESG-related key performance indicators (KPIs). These
indicators establish the clear link between strategic priorities
and KPIs. (Some of the ESG measures have been extracted
from the November 2006 report. However, in a comprehensive
and integrated report, they would only be reported once.)
The KPIs are developed based on independent and internal
surveys, workshops and other research so as to address key
13-15
Our group strategy
stakeholder information needs.
3. Transparent reporting against

ESG milestones
Our delivery of value includes reporting and sensitivity analysis
in relation to the assumptions which underpin our base-case
scenario for the coming year. This base-case scenario is used
to determine the targets included in our KPI reporting.
4. Quantification of returns from enhanced

16-19
ESG reporting
Our accounts includes quantification of the net savings from
our enhanced sustainability reporting, benchmarking analysis
and our total tax contribution reporting. An appendix to Our
accounts includes a reference table of GRI G32 disclosures
included in the report. GRI G3 disclosures that are not critical
to this report, but are discussed on our website, are marked
WEB. Other disclosures that are still being researched and may
be provided in future are referred to as ‘future’, and there are a
20-37
Our accounts
few suggested disclosures which are not relevant to Generico.

We do not endorse any specific indices or frameworks, and
have designed this report simply to offer guidance in relation to
integrated ESG reporting.
2 See glossary
4 Explanatory Notes
Modelling the future

The problem
Fundamental elements of value creation are not being
adequately addressed through the current corporate reporting
framework.
Specifically, current reporting does not provide all the
information in strategic ESG areas that is required by investors
to accurately model future company performance. Investors
are left to find alternative sources of information and make their
own assumptions. In other words, management may be leaving
it up to other sources (competitors, employees, suppliers) to
explain the company’s ESG risks, mitigation strategies and
upside opportunities.
Traditionally, a company’s financial statements represented
an accurate assessment of the company’s market value,
with most of the value being represented by tangible assets
included on the balance sheet. However, over the last 25 years
there has been a shift in the underlying drivers of a company’s
market value. Recent estimates indicate that as much as 80%
of a company’s market value is now represented by intangibles
and other future growth opportunities3. This does not mean that
the balance sheet should necessarily reflect enterprise value,
“Good management but merely that management needs to more clearly explain the
of environmental, difference between its book and market value.
social and governance Listed public companies are also required to make disclosures
performance, together beyond financial information to fulfil statutory reporting
with reputation, obligations. This includes, in many territories, a review
stakeholder of operations (which are prepared to varying degrees of
adequacy) as well as continuous disclosures4 to the market
relationships and of information which is not generally available but which a
other intangibles, is reasonable person would expect to have a material impact on
fundamentally linked to the value of the company’s shares.
long-term shareholder A narrow focus on historical financial reporting and financial
value.” metrics now needs to be supplemented with relevant and
reliable ESG and other non-financial strategic KPIs to provide a
Westpac 2006 Stakeholder more balanced snapshot of performance against strategy and
Impact Report, from the future prospects.
Chairman and CEO
Clearly, there is a need for a more integrated and inclusive
reporting framework. This report presents an analysis of
the impact of a range of non-financial ESG indicators to
help companies explain more clearly the impact of ESG
performance in delivering strategy and creating value, both
now and in the future.
3 www.clomedia.com/content/templates/clo_article.asp?articleid=1515&zoneid=66
4 In Australia, the Corporations Act 2001 s674 requires the continuous disclosure noted.
Fines and penalties including up to five years imprisonment may be applied for breaches.
Explanatory Notes 5
02-06
What investors want
Based on a decade of research into what information the
capital markets need, we are able to specify the information
data sets required to make investment decisions. Our more
recent global interviews of investors and analysts show an
09-10
interesting divergence of views.
There is almost universal agreement that the boilerplate
governance report or a ‘marketing-style’ CSR report adds no
real value for analysts or investors when making decisions.
That is not to say that analysts are not interested in governance
and CSR matters – they are – but they either do not like the
way it is presented, or do not understand how it has impacted
on performance and how it can be quantified. They therefore
use alternative sources to help them make decisions, if
11-12
Our markets
required.
Clearly there is an opportunity for company management to
explain the value of its ESG activities and help the markets
better assess the company’s overall performance and future
prospects.
ESG issues are being considered seriously by the capital
markets. Major superannuation funds and fund managers are
demanding broader-based reporting and analysis. In Europe,
13-15
Our group strategy
investors are paying a premium under the Enhanced Analytics
Initiative5 for analyst reports which cover a company’s strategic
non-financial performance and outlook more thoroughly. In
addition, many investors and superannuation funds have
signed up to the UN Principles for Responsible Investment6,
in effect demanding broader-based reporting on ESG matters
as an important factor in the allocation of new funds. As
superannuation funds grow, we will see more and more market
focus on medium-term issues. 16-19
Other drivers of change include governments and major
companies requiring suppliers to demonstrate their ESG
credentials before allowing them to tender; and in the tight
global labour market we are seeing employees differentiate
and choose between employers based on ESG performance
and credibility in the market. In addition, consumers in the
community are becoming more selective in which products and
services they buy. As generations X and Y mature, the impact
of these choices will be more visible.
20-37
Our accounts
There is therefore a growing imperative to manage, monitor

and report on ESG matters.
5 See glossary
6 See glossary
6 Explanatory Notes
Modelling the future continued
So what ESG information should a company

consider providing?
• A clear explanation of the company’s ESG strategic
priorities, integrated and aligned with the overall
corporate strategy
• A clear explanation of the key measures of success for each
ESG strategic priority, including shorter-term milestones
where required
• KPIs for each ESG strategic priority for prior periods (trend
line) and quantified targets for the future
• Summary of key risks and assumptions underpinning future
outlook and a level of sensitivity analysis
• Quantification, where possible, of both the cost and the
financial (and non-financial) benefits of implementation of
the ESG strategy. (This will help the investor, for example,
factor the impact of the ESG performance into their financial
model or into their underlying risk assumptions.)
More than just financial reporting
For the reasons outlined above, companies need to assist
the capital markets in understanding how ESG activities
and performance is core to the company’s overall strategic
plan. The UN Principles for Responsible Investment provide
a framework for investor decision making; however, there is
currently no standardised framework for reporting the financial
and non-financial information required.
This report, building on the Report Leadership publication,
aims to start the discussion on such an integrated framework.
What we’ve done to make it work

• Provided specific sections on ESG strategy, performance
measurement, disclosure and reporting
• Included key measures for assessing value creation in
relation to ESG
• Provided guidance on alternative scenarios and sensitivity
analysis on key ESG non-financial measures, to help users
model the future
• Applied consistent terminology and a forward-looking
orientation (including disclosure of targets)
• Provided non-GAAP non-financial KPIs and other
information in line with global best practice reporting
• Quantified net savings from implementation of enhanced
ESG strategy, where possible
• Compared performance to globally recognised indices
where available.
Chief executive’s statement Our markets Our group strategy Our delivery of value Our accounts
09-10 11-12 13-15 16-19 20-37
7
Generico Annual Report 2007
8 Generico Annual Report 2007
Generico Annual Report 2007 9
Generico example report
02-06
ESG extracts to be aligned with and integrated into a single
Generico performance report
09-10
In this section we address these key points:
BÊChief executive statement
BÊOur markets
BÊOur group strategy
BÊOur delivery of value
11-12
Our markets
BÊOur accounts
13-15
Our group strategy
Note to the reader:
The Generico ESG disclosures in this publication are not intended to be a full annual report;
instead we envisage them being considered for inclusion and integrated as part of the full
annual report.
16-19
This ESG report should be read in conjunction with the original Report Leadership publication
on www.reportleadership.com.
20-37
Our accounts

Environmental, social and governance (ESG) factors are core
to our business strategy. We place great importance on their
value, and manage our corporate ESG responsibilities as part
of our daily business operations. In this report we explain how
we do that and what we have achieved this year.
We have established key performance indicators that we use
to track our performance in relation to ESG matters (see Our
group strategy). We continue to reduce our greenhouse gas
(GHG) footprint, taking out a further 8,000t CO2-e this year as
we strive towards our 2020 target. At this stage we are behind
in our reduction plan by 1,000t C02-e, but are putting plans in
place to rectify the overall position by the end of this year.
In addition, to ensure we are performing in line with – if not
better than – our industry peers, we have conducted detailed
benchmarking on our sustainability and corporate responsibility
performance, and I am delighted to report that we are tracking
well (see Our accounts).
We comply with all legal and regulatory obligations, but in
order to make investment decisions we focus on options
which provide a positive return to our shareholders (as well as
a positive impact on our reputation with other stakeholders) in
the short to medium term. In Our accounts we have quantified
the expected net savings arising from our ESG activities
planned for 2008, as well as the other expected benefits.
Overall, we expect our ESG strategy to provide an additional
net return of 5%.
Finally, in Our accounts we report our total tax contribution,
which is a comprehensive and transparent measure of the
total tax we have paid and collected this year. We have also
included benchmarking of our total tax rate and total tax
contribution by component against country, regional and global
benchmarks. Again, I am pleased to report that we are at or
near best practice in most measures.
In preparing this report we have used the UN Global Compact
principles7 as our guidance for managing ESG issues across
the business, and the Global Reporting Initiative (GRI) G3 draft
reporting guidance as our reference point for disclosure.
7 See Glossary
Our markets
02-06
Key points
B Climate change risk analysis completed in accordance with
the Global Framework for Climate Risk Disclosures
B ESG Board sub-committee established headed by the
09-10
Chairman and supported by an ESG expert
Challenges and success factors

We face the challenge of remaining best-in-class in relation
to the information we report to our stakeholders. While the
majority of ESG requirements remain voluntary, Generico
intends to become a full signatory to the UN Global Compact
and the Carbon Disclosure Project by 31 December 2008, and
has already commenced the process of ensuring that our ESG
11-12
Our markets
disclosures comply with the GRI G3 draft reporting guidance.
Legislation
We have registered with the Department of Industry, Tourism
and Resources to comply with the requirements of the Energy
Efficiencies Opportunities Act 2006 (the Act)8. Our energy
usage in the last calendar year exceeded 0.5 PJ9; we are
currently drafting an assessment and reporting schedule to
cover the first five-year reporting cycle. We are confident that
our rigorous assessment of energy saving opportunities will
13-15
Our group strategy
lead to significant energy savings and allow us to meet the
strict energy reduction KPI we have set ourselves for future
years to 2020. This effort will be co-ordinated by an ESG sub-
committee, as described on our website www.generico.com/
environment/EEO.
It was pleasing to note that we incurred no fines or penalties
for legal or regulatory breaches.
Environment
16-19
Despite increasing public pressure on organisations to reduce
carbon emissions, reduce waste and protect our water
supplies, there has been no significant new legislation or
regulation affecting us in 2007. However, we are undertaking
voluntary measures to remain best-in-class in all these
important environmental areas, including our recent decision
to be carbon-neutral by December 2009 (see KPIs for current
performance in each of these areas in Our group strategy).
In our approach to climate change and emissions management
20-37
Our accounts
and reporting, we have followed the guidance of the Global

Framework for Climate Risk Disclosures10 (which is supported
by the Carbon Disclosure Project annual survey results).
8 Note: This is Australian legislation. Companies will need to tailor this section in line with their local legislation
9 PJ = Petajoule (1000 trillion joules of energy), equivalent to 30,000 MWh
10 See glossary
Our markets continued
To date we have produced:

• a climate change statement
• an emissions management statement
• a ‘strategic, physical and regulatory risks of climate change’
analysis.
Our environmental charter, policies, procedures and
responsibilities, as well as detailed explanations of our various
activities during the year, are available on our website
www.generico.com/environment.
Social
Despite no significant changes to the law in 2007, recent
litigation has demonstrated the potential cost (not only
financial, but also in terms of corporate and executive
reputation) of poorly performing OH&S systems, processes
and controls. Compared to our competitors, we remain in the
lowest national quartile for Days Lost Through Injury11, and are
continually striving to improve.
In Our group strategy, we have continued to train our people
in anti-corruption policies to further protect our customers
and community from, in particular, inappropriate business
arrangements.
We have also continued to provide significant support to
our local communities through the gift of time, money and
resources.
Our social charter, policies, procedures and responsibilities, as
well as detailed explanations of our various activities during the
year, are available on our website www.generico.com/social.
Governance
We comply with the principles outlined by the ASX Governance
Council12. We have contributed several public submissions
to recent government enquiries, in which we have advocated
increasing the level of transparency currently provided through
the corporate reporting framework.
During 2007, the Generico board established an ESG sub-
committee headed by the Chairman and supported by an ESG
expert.
Details about our organisational structure, governance
framework, board and board committees (including relevant
charters, policies, procedures and accountabilities) are
available on our website www.generico.com/governance.
11 Reported in the Generico 2007 Annual Report, p21

12 Refer to the guidance issued by the relevant regulatory body in your country/territory; for example the ASX
Governance Council Best Practice Recommendations in Australia; the London Stock Exchange Combined Code
on Corporate Governance in the UK
Our group strategy
02-06
Key points
B 8,000t CO2-e reduction in greenhouse gas emissions, not
quite on track to 2020 target but remediation plan in place
B Continued increase in recycled input material at 29%
09-10
B Employee retention slipped with turnover at 28%
Strategy progress statement
To implement our strategy successfully, we need to measure
our progress in meeting its objectives. To be able to do that we
need to establish and monitor key performance indicators.
Responsibility for developing and implementing the key ESG
performance indicators has been delegated by the board ESG
11-12
Our markets
sub-committee to the ESG management team. To indicate
the level of importance placed on this role by the board, the
head of the ESG management team is an executive whose
remuneration is linked to achieving operational objectives.
Within the existing corporate governance framework and in
accordance with the board’s overarching corporate strategy,
the board ESG sub-committee and ESG management team
develop and implement the ESG strategic priorities and set
the relevant KPIs. These strategic priorities and KPIs are
13-15
Our group strategy
formulated based on independent and internal research
including:
• independent employee surveys
• independent customer surveys
• in-house workshops with key stakeholders, including NGOs,
customers, community representatives, employees
and others.
We also survey institutional and retail shareholders to ensure
16-19
we understand and provide the information they need to make
their decisions.
Our KPIs for each ESG priority are listed in the table overleaf.
It details the specific ESG metric targeted, measures of our
performance to date, and our targets for 2008 (and beyond
where applicable). We also list potential challenges to success
and the action that we are taking to overcome them.
20-37
Our accounts
Strategic priority Key performance indicators

Metrics Definition/source
Market Health, safety and Percentage of new products assessed for improvements in relation to
competitiveness environmental impacts life cycle, health, safety and environmental impact
of new products
Developing next-
generation products
Meeting the Risk of corruption reviews Percentage of employees trained in Generico’s anti-corruption
expectations of our policies and procedures
customers
Operational Financial impact of climate Total greenhouse gas emissions across all business units,
excellence change including emissions from energy usage, vehicle fleet, air travel and
materials consumption (for basis of calculation refer to glossary)
Financial impact of energy and Energy consumption is based on total energy consumption across all
water consumption business units per FTE
Total water usage is the aggregate water usage based on data

provided by our water suppliers in each operational territory
Financial impact of materials Two metrics are used:

usage 1. Weight of total materials used in production
2. % of materials used that are recycled input materials
Employee retention (turnover %) Calculated using the formula:

(# staff leaving/average headcount)*100
Indirect economic impact on Total community investment expenditure, including employee

communities volunteering, in-kind support and community impact assessment on
operations
02-06
Performance Potential challenges/response GRI
reference
New products assessed for life cycle impacts (%) BÊ Disappointing product performance resulting EN26,
from unsafe or environmentally unfriendly PR1
05 40
product development
Focus on three key areas in product R&D:
06 50
• Minimise emissions resulting from production
07 60 • Develop low-emission products
• Work with customers to reduce their footprint
09-10
08 target 70
Employees trained in anti-corruption policies and procedures (%) BÊÊÊÊReputational impact on key stakeholders S02,
and exposure to monetary fines and non- S03
05 57 monetary sanctions
Roll out training to all employees
06 58
Regular communication on progress to
stakeholders
07 63
08 target 70
Total GHG emissions (‘000 tonnes) BÊÊÊÊLoss of comparative advantage EN3,
11-12
Our markets
Physical and risk analysis of climate change EN4,
490
00
impacts EN8
05 479 Comprehensive program of GHG emission
06 473
reduction
Carbon neutral by 2009
07 465
Climate change physical and financial risk
*08 target 455 analysis
2020 target 245 Review of supply chain
Energy consumption Total water usage (gigalitres) BÊÊÊÊExposure to increasingly volatile world EC2,
(MWh per FTE) Total water usage (gigalitres) energy and water markets EN16,
00 520 Progressive switch to accredited renewable EN17
05 1275
energy sources
13-15
Our group strategy
05 489
Investment in energy-efficient production
06 1295
06 444 technology
07 434
Water recycling plants operational by 2009
07 1260
*08 target 425
*08 target 1060

2020 target 220
BÊÊÊÊReputational and financial impact of EN1,

Weight of total materials (‘000 tonnes) Recycled input materials (%)
inefficient production EN2
97 Operational focus on materials reduction
05
24 Work with supply chain to increase recycled
06
99 input
26 Packaging Reduction Program (PRP) 16-19
07
96 Our delivery of value
29
90
*08 target
35
Employee retention (%) BÊÊÊÊLoss of skilled operators LA2

ORTS incentive scheme
05 22
06 25
07 28
*08 target 25
20-37
Our accounts
Community investment expenditure (% of pre-tax profit) BÊÊÊÊPositive community contribution and EC8,
stakeholder engagement EC9,
05 0.7 Invest in employee volunteering schemes S01
Develop community partnership
06 0.9 Expand strategic charitable giving programs
Generico Foundation
07 1.0
08 target 1.2
* = Financial impact of FY08 potential savings described in Our accounts


Key points
B Market competitiveness – increase in extreme weather
events is driving growth in maritime safety products
B Operational effectiveness – continued focus on emissions
reduction and responsible use of water and other natural
resources continues to drive down costs
How do we measure value creation?

Traditional financial measures take into account some
elements of the value we have created as a company, but
fail to take into account important non-financial returns. For
this reason, in order to assess Generico’s performance in
creating non-financial value, we have quantified the returns
from implementing strategies relating to sustainable business
development and the management of ESG challenges.
Modelling the future

ESG reporting
We believe the action we are taking is making our business
increasingly robust and, as a result, our vulnerability to
unexpected events should diminish over time.
We intend to publish ‘sensitivity’ tables each year so that
investors and other stakeholders can track the potential
impacts of deviations from our strategic plan.
In these sensitivity tables we highlight key elements in our
strategic priorities that have the greatest impact on our
performance. For each element we assess the financial impact
of ‘best-case’ and ‘worst-case’ variations from our base-case
assumptions. The assumptions underpinning our base case
represent a conservative assessment of the opportunities
for growth in both revenue and gross profit, and are used to
determine the targets included in this report.
02-06
Market competitiveness
Base case 2008
- Reduce customer churn rate by 10% through increased
focus on life cycle assessments of health, safety and
09-10
environmental impacts of products with a 15% increase in
the number of new products, assessed for impacts, and
publication of results
- Increase training in anti-corruption policies and procedures
to improve brand reputation and meet target of winning
30% of contracts currently out for tender
- Declining growth in boat sales, offset by increased market
focus on maritime risks arising from climate change;
extreme weather events to increase market penetration by
11-12
Our markets
10%
Best case 2008

- Customer churn rate reduced by 20% through successful
market awareness campaign on life cycle assessments of
health, safety and environmental impacts
- Company’s strategic focus on sustainable development
and transparent reporting of ESG issues results in
significant increase in brand reputation, driving wins on
40% of contracts currently out for tender
13-15
Our group strategy
- Boat sales in key North American market stabilise as
household wealth outlook remains positive. Company’s
strategic focus on addressing climate change risks results
in 20% increase in market penetration
Worst case 2008

- Customer churn remains steady with no discernible
change in purchasing trends arising from company’s
improvements in relation to assessments of life cycle 16-19
impacts of new products
- 10% of contracts out for tender won and market
penetration levels decline by 10% as boat sales in all
markets continue to decline
Change in Financial impact

assumption
(for FY08 only)
Market +/- 1% +/- $5m (Revenue):
20-37
Our accounts
share +/-$2m (Gross profit)

Revenue +/- 7% +/- $8m (Revenue):
growth +/-$3m (Gross profit)
A 1% rise or fall in market share, or a 7% rise or fall in
revenue growth assumptions impact on revenue by +/- $5m
and +/-$8m respectively. Related impact on gross profit
would be +/-$2m and +/-$3m.
Delivery of value continued
Operational effectiveness
Base case 2008
- 7% reduction in GHG emissions using 2000 as the base
year for comparison
- Reduction in energy usage of 8,000 MWh per year
- Water usage reduced by 200 gigalitres per year
- Reduce materials waste by 2,000 tonnes per year from
redesigning production processes to drive reduced
materials recycling cost
- Reduction in employee turnover of 3% driven by active
promotion of company ESG activity and resultant
employee satisfaction
Best case 2008

- 9% reduction in GHG emissions (25% above base case)
with efficiency break-throughs implemented, especially in
production and transport emissions
- Energy efficiency maximised by bringing all pipeline R&D
improvements into full production environment, resulting in
additional 25% reduction in energy usage above
base case
- Water usage reduction 25% greater than base case as a
result of comprehensive water infrastructure assessment
completed ahead of schedule
- Materials waste from production significantly reduced
driving additional 25% reduction below base case
- Reduction in employee turnover of 5%, as ESG activities
capture employee imagination and drive increased
participation
Worst case 2008
- GHG emissions reduction plans are implemented across
only half the organisation
- Complications with implementation of recommended
R&D improvements drives 50% less energy usage and
materials waste reduction than base case
- Reductions in water usage only reach 50% of base case
- Reduction in employee turnover of 1%, as little change
experienced from ESG activities
Change in Financial impact

assumption
(for FY2008 only)
Operating +/- 25% +/- $7m (Revenue):
margin +/- $3m (Gross profit)
A 25% rise or fall in operating margin improvement
assumptions would have a +/-$7m impact on revenue and a
+/-$3m impact on gross profit.
02-06
Ongoing activities
Market competitiveness and operational effectiveness are both
significantly impacted by the sustainability of our business
practices. We have developed KPIs, with support from our key
09-10
stakeholders (Our group strategy), to assess our performance
in embedding such practices throughout our organisation. We
have also begun the journey towards full transparent reporting
and disclosure of our performance in addressing the key ESG
challenges facing us now and in the future.
Our ongoing activities are focused on improving our reporting
to stakeholders to ensure that we comply, as appropriate
for a company of our size and complexity, with the following
voluntary global initiatives:
11-12
Our markets
- UN Global Compact Communication of Progress
- Global Reporting Initiative G3 draft reporting guidance
(certain disclosures are considered ‘not relevant’ (NR)
for Generico; others are disclosed on the company website
(WEB) or being considered for future reporting (future)).
To evaluate the consistency of our approach to ESG
measurement, reporting and disclosure against both
international and local best practice, we are participants in and
13-15
Our group strategy
benchmark our performance against the following13:
- Dow Jones Sustainability Index (DJSI)
- FTSE4 Good Index
- Governance Metrics International
- Corporate Responsibility Index (CRI)
- Climate Leaders Index (output of the Carbon Disclosure
Project surveys). 16-19
Our performance against the DJSI and CRI benchmarks is
provided in the Our accounts section.
Our focus remains on ensuring that our reporting to
stakeholders is transparent and enables informed investment
decision making.
13 Refer to the glossary for details of these benchmarks

20-37
Our accounts
Our accounts
Key points
B Forecast additional net savings of 5% resulting from 2008
ESG strategy
B Continued focus on non-financial opportunities arising from

transparent ESG reporting
Net savings from ESG strategy

In order to understand the financial implications of our ESG
strategy for FY08 and beyond, we have attempted to quantify
the implications of our strategic actions by setting out the
capital cost in year 1 (FY08) and the ongoing indicative annual
saving and operating cost based on the FY08 currency values
(i.e. undiscounted). The basis of our calculation14 and our
sources are also included to enable external verification.
We have not factored in cost benefits from any future ESG
activities or other non-financial benefits (i.e. brand, reputation).
Key performance indicators

Target
Carbon carbon Non-
FY08 capital Annual Annual Net annual
Metrics Scenario price reduction financial
expenditure saving OPEX saving
(per tonne) by FY08 impact
(tonnes)
Financial Best $60,000 $12 12,500 $150,000 -$38,000 $112,000 Reputation
impact of
Regulatory
climate
Base $60,000 $12 10,000 $120,000 -$38,000 $82,000 risk
change
Employee
(GHG
Worst $60,000 $12 5,000 $60,000 -$38,000 $22,000 engagement
emissions)
Source: Carbon price – refer to glossary
Target
Wholesale
energy Non-
FY08 capital electricity Annual Annual Net annual
Metrics Scenario usage financial
expenditure price (per saving OPEX saving
reduction by impact
MWh)
FY08 (MWh)
Financial
Best $275,000 $40 10,000 $400,000 -$180,000 $220,000
impact of Reputation
energy and Supply
water Base $275,000 $40 8,000 $320,000 -$180,000 $140,000 chain
consump- Employee
tion (energy engagement
Worst $275,000 $40 4,000 $160,000 -$180,000 -$20,000
usage)
Source: www.nemmco.com.au
Target
Retail water Non-
FY08 capital water usage Annual Annual Net annual
Metrics Scenario price (per financial
expenditure reduction by saving OPEX saving
GL) impact
FY08 (GL)
Financial Best $93,000 $1,200 250 $300,000 -$127,500 $172,500
impact of Reputation
energy and Supply
water Base $93,000 $1,200 200 $240,000 -$127,500 $112,500 chain
consump- Employee
tion (water Worst $93,000 $1,200 100 $120,000 -$127,500 -$7,500 engagement
usage)
Source: www.sydneywater.com.au
14 Our basis of calculation is provided in the glossary

02-06
Target
waste for
Recycling Non-
FY08 capital recycling Annual Annual Net annual
Metrics Scenario cost (per financial
expenditure reduction saving OPEX saving
tonne) impact
by FY08
(tonnes)
09-10
Financial Best $76,000 $150 2,500 $375,000 -$108,000 $267,000
impact of
Reputation
materials
Base $76,000 $150 2,000 $300,000 -$108,000 $192,000 Employee
usage
engagement
(waste
recycling) Worst $76,000 $150 1,000 $150,000 -$108,000 $42,000
Source: Refer to www.generico.com/environment/KPI calculations/recycling for details

Turnover
Average
reduction Non-
FY08 capital recruitment Annual Annual Net annual
Metrics Scenario target by financial
expenditure cost (per saving OPEX saving
FY08 impact
employee)
(turnover)
11-12
Our markets
Best Nil $35,000 5% $1,531,250 -$250,000 $1,281,250
Employee
Base Nil $35,000 3% $918,750 -$250,000 $668,750 Recruitment
retention
Worst Nil $35,000 1% $306,250 -$250,000 $56,250
Source: Annual Report p23 & p31
FY08 capital Reported Annual Annual Net annual
% of pre-tax
Metrics Scenario expenditure pre-tax saving OPEX saving
profit
($’000) profit ($’000) ($’000) ($’000) ($’000)
TOTAL Best $444 $26,005 $2,756 -$704 $2,053 8%
Base $444 $26,005 $1,899 -$704 $1,195 5%
13-15
Our group strategy
Worst $444 $26,005 $796 -$704 $93 0%
The strategic KPIs outlined in Our group strategy all impact on the ESG performance of Generico
year on year. If we implement our strategy and achieve our targets, Generico will experience
certain intangible but important non-financial benefits including:
Reputation
Reputation is a key component of Generico’s brand value. Although not specifically valued, any
activity enhancing reputation will anecdotally enhance corporate value.
16-19
Regulatory risk
Tight management of regulated activities (such as emissions) prevents fines and penalties which
damage reputation.
Employee engagement
Activities undertaken by the company which engage the full cooperation of the work force tend to
drive productivity and effort, thereby improving output and returns.
Supply chain
20-37
Our accounts
Reduction in usage of scarce resources, while working with key suppliers, cuts costs and
improves working relationships, thereby enhancing results.
Recruitment
Good retention rates usually mean an engaged workforce – a place people enjoy working at. As
this becomes known, the company receives more applications and recruitment is comparatively
easier and less costly.
Our accounts continued
Total
Benchmarking analyses
sustainability
score
Sustainability benchmarking
Generico takes part in the annual assessments of the Dow
Environment
score Jones Sustainability Indexes. These are global indexes which
track the financial performance of the leading sustainability-
Social
score
driven companies worldwide15. As can be seen in the table,
Generico is above or at ‘best practice’ level for all companies
Economic and for all light manufacturing companies. Our economic score
score
is below market, and management is focusing on this in line
0% 20% 40% 60% 80% 100% with our strategic priority to be even more competitive and to
tighten our operations. We are aiming to further improve our
All companies
Light manufacturing sector
economic score by the end of FY08.
Generico
Further detail on the indexes is available at www.sustainability-
index.com.
Corporate responsibility benchmarking

Generico is a participant in the Corporate Responsibility Index.
Overall
This index is a benchmarking tool to enhance the capacity
Integration of
of the business to develop, measure and communicate best
sustainability practice in the field of corporate responsibility16. Generico is
above market on all corporate responsibility measures, and
Management
practice intends to remain at this level for FY08.
Corporate
strategy
Total Tax Contribution (TTC)
TTC17 is a globally accepted methodology which we have
Performance
and impact adopted to accurately report our contribution to the community
through all forms of business tax. It identifies all direct and
0 20 40 60 80 100 indirect business taxes paid by a company as well as those
All companies collected on behalf of the government. Although TTC is not a
Light manufacturing sector traditional GRI disclosure and is not a key ESG metric for us,
Generico we believe it is an important measure of our total contribution
to the tax system and the markets in which we operate.
TTC makes it easier for us to identify all taxes paid and
Total Tax Rate19 benchmarking analysis collected, highlights potential areas of risk, and allows
100% us to communicate to our stakeholders on our overall
tax contribution. It also enables us to benchmark our tax
80% contribution against industry, regional and international
60%
averages. The World Bank is using the TTC methodology in
its annual global survey of 175 countries, which will provide a
40% global reference point for survey participants18.
20%
15 www.sustainability-index.com
0% 16 www.corporate-responsibility.com.au
Generico UK OECD Global
17 www.pwc.com/uk/ttc
2007 average average average
18 The latest World Bank and PricewaterhouseCoopers Global Total Tax Contribution report is Paying Taxes: The
Other taxes Global Picture. The report is available at www.worldbank.org/reference
(Customs duties, excise duties, GST/VAT) 19 See glossary
Employment taxes (FBT, Payroll)
Corporate income tax
02-06
What is our Total Tax Contribution? Tax rate %
Our TTC is the direct and indirect taxes paid by the company, 60%
as well as those collected on behalf of the Government. 50%

Importantly, TTC makes it easier for the company to identify
all the taxes paid and collected, highlights potential areas of 40%
09-10
risk and allow us to communicate holistically on our overall tax 30%
contribution to our stakeholders.
20%
As represented in the table below, our TTC includes an
10%
additional 29.4% (2006: 29.6%) of taxes other than the
corporate income tax expense reported in our financial 0%
statements.
Generico 2007 OECD average
Total Tax Contribution for Generico Generico 2006

UK average
Global average
11-12
Our markets
2007 (‘000) 2006 (‘000)
Capital Corporate income tax 7,399 6,013
Irrecoverable GST 520 460
TTC for Generico
People Fringe benefits taxes 910 720
Payroll taxes 1,045 890
Other
taxes
Products Customs duties 390 310
IrreST
G
busine
co
ve
Excise duties 215 150 Pay
rab
roll
ss
tax
Total 10,479 8,543 le
13-15
Our group strategy
FBT
Corporate Tax
16-19
20-37
Our accounts
Appendix
G3 Indicator Reference Table
The table lists all the GRI indicators and is a single point of reference for subjects and data in this
report and in the Report Leadership document, with cross referencing to the indicators.
For further detail and full descriptions of all indicators go to www.globalreporting.org.
Key to GRI indicator status

C GRI Core indicator Full GRI requirement fully complied with in the
A GRI Additional indicator current report
AR 2007 Generico Annual Report Partial GRI requirement partially complied with in
the current report
WEB On Generico website - not critical to
this report Future GRI requirement is not part of current core
strategy; to be addressed in future periods
NR Not relevant to the organisation
Full Partial Future Ref
Strategy and analysis

1.1 Chief Executive’s statement • 6
1.2 Description of key impacts, risks and opportunities • 9, AR16
Organisational profile
2.1 Name of the organisation • AR Intro
2.2 Primary brands and products • AR2
2.3 Operational structure of the organisation, including

• AR2
main divisions and operating companies
2.4 Location of organisation’s headquarters • AR2
2.5 Number of countries where the organisation operates

(and names of countries with either major operations
• AR2
or that are specifically relevant to the ESG issues
covered in the report, where applicable)
2.6 Nature of ownership and legal form WEB
2.7 Markets served (including geographic breakdown,

• AR3
sectors served and types of customers)
2.8 Scale of the reporting organisation, including:
• number of employees, net revenues, total
capitalisation broken down in terms of equity and
debt, quantity of products (or services) provided,
total assets, beneficial ownership (including identity
and percentage of ownership of largest shareholder) AR26,
AR34,
• breakdowns by country/region of the following: • AR58-59,
AR64
- sales/revenues by countries/regions that make up
5% or more of total revenues
- costs by countries/regions that make up 5% or
more of total revenues
- employees
02-06
2.9 Significant changes during the report period regarding

size, structure or ownership including:
• the location of, or changes in, operations, including
• AR3, AR11
09-10
facility openings, closings and expansions
• changes in the capital structure and other capital
information, maintenance and alteration operations
2.10 Awards received in the reporting period •
Report parameters
Report profile
3.1 Reporting period for information provided • AR51
3.2 Date of the most recent report • First report
11-12
Our markets
3.3 Reporting cycle • Annual
3.4 Contact point for questions regarding the report and

•
its contents
Report scope and boundary
3.5 Process for defining content, including:
• defining materiality
• prioritising topics within the report WEB
• identifying stakeholders the organisation expects to
13-15
Our group strategy
use the report
3.6 Boundary of the report (e.g. countries, divisions, Whole org.
• covered
subsidiaries, leased facilities, joint ventures, suppliers)
3.7 State any specific limitations on the scope of NR N/A
the report
3.8 Basis for reporting on joint ventures, subsidiaries,
leased facilities, outsourced operations and other NR N/A
entities that can significantly affect comparability from
period to period and/or between organisations 16-19
3.9 Data measurement techniques and the bases of
calculations, including assumptions and techniques
• 20-21
underlying estimations applied to the compilation of
indicators and other information in the report
3.10 Explanation of the effect of any re-statements of
information provided in earlier reports and the reasons • N/A
for such re-statements
3.11 Significant changes from previous reporting periods in
the scope, boundary or measurement method applied • N/A
20-37
Our accounts
in the report
Appendix continued
GR content index
3.12 Table identifying the location of the Standard
Disclosures in the report, identify the page numbers or
web links where the following can be found:
• strategy and analysis 1.1 – 1.2
• organisational profile 2.1 – 2.10
• report parameters 3.1 – 3.13
• 24-33
• governance, commitments and engagement 4.1–
4.17
• disclosure of management approach, per category
• core performance indicators
• any GRI additional indicators and any sector
supplement indicators included in the report
Assurance
3.13 Policy and current practice with regard to seeking
external assurance for the report. If not included
in the assurance report accompanying the report,
explain the scope and basis of any external assurance • 2
provided. Also explain the relationship between the
reporting organisation and the external assurance
provider
Governance, commitments and engagement
Governance
4.1 Governance structure of the organisation, including
committees under the highest governance body WEB 10, AR22
responsible for specific tasks, such as setting strategy
or organisational oversight
4.2 Indicate whether the Chair of the highest governance WEB
body is an executive officer
4.3 For organisations that have a unitary board structure,
state the number of members of the highest NR
governance body that are independent and/or non-
executive members
4.4 Mechanisms for shareholders and employees to
provide recommendations or direction to the highest WEB
governance body
4.5 Linkage between compensation for members of
the highest governance body, senior managers and WEB
executives, and the organisation’s performance
4.6 Processes in place for the highest governance body to WEB
ensure conflicts of interest are avoided
4.7 Process for determining qualifications and expertise
of the members of the highest governance body for WEB
guiding the organisation’s strategy on economic,
environmental and social topics
02-06
4.8 Internally developed statements of mission or

values, codes of conduct, and principles relevant to
economic, environmental and social performance and
09-10
the status of their implementation. Explain the degree
WEB 6
to which these:
• are applied across the organisation in different
regions and departments/units
• relate to internationally agreed standards
4.9 Procedures of the highest governance body for
overseeing the organisation’s identification and
management of economic, environmental and
social performance including relevant risks and WEB
11-12
Our markets
opportunities, and adherence or compliance with
internationally agreed standards, codes of conduct
and principles
4.10 Processes for evaluating the highest governance
body’s own performance, particularly with respect to WEB 11,12
economic, environmental and social performance
Commitments to external initiatives
4.11 Explanation of whether and how the precautionary
approach or principle (as introduced by Article 15 of WEB
13-15
Our group strategy
the Rio Principles) is addressed by the organisation
4.12 Externally developed economic, environmental and
social charters, principles and other initiatives to which • 9,13
the organisation subscribes or endorses
4.13 Membership in associations and/or national/
international advocacy organisations in which the
organisation:
• has positions in governance bodies
•
• participates in projects or committees
16-19
• provides substantial funding beyond routine
membership dues
• views membership as strategic
Stakeholder engagement
4.14 List of stakeholder groups engaged by the WEB
organisation
4.15 Basis of identification and selection of stakeholders WEB
with whom to engage
20-37
Our accounts
4.16 Approaches to stakeholder engagement, including

frequency of engagement by type and by stakeholder WEB
group
4.17 Key topics and concerns that have been raised
through stakeholder engagement, and how the WEB 13-15
organisation has responded to those key topics and
concerns, including through its reporting
Appendix continued
Economic
Economic performance
EC1 Direct economic value generated and distributed,
including revenues, operating costs, employee
10-11,
compensation, donations and other community C • AR51-71
investments, retained earnings and payments to
capital providers and governments
EC2 Financial implications and other risks and
opportunities for the organisation’s activities due to C • 8, 10-11
climate change
EC3 Coverage of the organisation’s defined benefit plan AR45-46,
C • AR61-68
obligations
EC4 Significant financial assistance received from
C • Nil received
government
Market presence
EC5 Range of ratios of standard entry level wage
compared to local minimum wage at significant A •
locations
EC6 Policy, practices and proportion of spending on local
C •
suppliers at significant locations of operation
EC7 Procedures for local hiring and proportion of senior
management hired from the local community at C •
significant locations of operation
Indirect economic impacts
EC8 Development and impact of infrastructure investments
and services provided primarily for public benefit C • 10-11
through commercial, in-kind or pro bono engagement
EC9 Understanding and describing significant indirect
C • 10-11
economic impacts, including the extent of impacts
Environment
Materials
EN1 Materials used by weight or volume C • 10-11
EN2 Percentage of materials used that are recycled input

C • 10-11
materials
Energy
EN3 Direct energy consumption by primary energy source C • 10-11, 14
EN4 Indirect energy consumption by primary energy source C • 10-11, 14
EN5 Energy saved due to conservation and efficiency

A WEB 14
improvements
EN6 Initiatives to provide energy-efficient or renewable
A WEB
energy-based products and services
EN7 Initiatives to reduce direct energy consumptions A WEB 14
02-06
Water
EN8 Total water withdrawals by source C WEB
EN9 Water sources affected significantly by withdrawal of
09-10
A WEB
water
EN10 Percentage and total volume of water recycled and
A WEB
reused
Biodiversity
EN11 Location and size of land owned, leased, managed
in, or adjacent to, protected areas and areas of high C WEB
biodiversity value outside protected areas
EN12 Description of significant impacts of activities,
11-12
Our markets
products and services on biodiversity in protected
C WEB
areas and areas of high biodiversity outside protected
areas
EN13 Habitats protected or restored A WEB
EN14 Strategies, current actions and future plans for

A WEB
managing impacts on biodiversity
EN15 Number of IUCN Red List species and national
conservation list species with habitats in areas A WEB
affected by operations, by level of extinction risk
13-15
Our group strategy
Emissions, effluent and waste
EN16 Total direct and indirect greenhouse gas emissions by
C • 10-11
weight
EN17 Other relevant indirect greenhouse gas emissions by
C • 10-11
weight
EN18 Initiatives to reduce greenhouse gas emissions and
A WEB 14
reductions achieved
EN19 Emissions of ozone-depleting substances by weight C WEB 16-19
EN20 NOx, SOx and other significant air emissions by type
C WEB
and weight
EN21 Total water discharge by quality and destination C WEB
EN22 Total weight of waste by type and disposal method C WEB 10-11
EN23 Total number and volume of significant spills C NR
EN24 Weight of transported, imported, exported or treated

waste deemed hazardous under the terms of the Basel
A NR
Convention Annex, and percentage of transported
waste shipped internationally
20-37
Our accounts
EN25 Identity, size, protected status and biodiversity value

of water bodies and related habitats significantly
A WEB
affected by the reporting organisation’s discharge of
water and runoff
Appendix continued
Products and services

EN26 Initiatives to mitigate environmental impacts of
C WEB
products and services, and extent of impact mitigation
EN27 Percentage of products sold and their packaging
C WEB
materials that are reclaimed by category
Compliance
EN28 Monetary value of significant fines and total number Nil fines or
of non-monetary sanctions for non-compliance with C • sanctions,
11
environmental laws and regulations
Transport
EN29 Significant environmental impacts of transporting
products and other goods and materials used for the
A WEB
organisation’s operations, and transporting members
of the workforce
Overall
EN30 Total environmental protection expenditures and
A •
investments by type
Labour practices and decent work
Employment
LA1 Total workforce by employment type, employment
C •
contract and region
LA2 Total number and rate of employee turnover by age,
C WEB AR31
gender and region
LA3 Benefits provided to full-time employees that are not
provided to temporary or part-time employees, by A •
major operations
Labour/management relations
LA4 Percentage of employees covered by collective
C WEB
bargaining agreements
LA5 Minimum notice period(s) regarding significant
operational changes, including whether it is specified C WEB
in collective agreements
Occupational health and safety
LA6 Percentage of total workforce represented in
formal joint management-worker health and safety
A WEB
committees that help monitor and advise on
occupational health and safety programs
LA7 Rates of injury, occupational diseases, lost days,
and absenteeism, and total number of work-related C • AR21
fatalities by region
LA8 Education, training, counselling, prevention and
risk-control programs in place to assist workforce C WEB
members regarding serious diseases
LA9 Health and safety topics covered in formal agreements
A WEB
with trade unions
02-06
Training and education

LA10 Average hours of training per year per employee by
C WEB
employee category
09-10
LA11 Programs for skills management and lifelong learnings
ORTS
that support the continued employability of staff and A WEB
program
assist them in managing career endings
LA12 Percentage of employees receiving regular
A •
performance and career development reviews
Diversity and equal opportunity
LA13 Composition of governance bodies and breakdown
of employees per category according to gender, age,
C WEB
minority group membership and other indicators of
11-12
Our markets
diversity
LA14 Ratio of basic salary of men and women by employee
C WEB
category
Human rights
Investments and procurement practices
HR1 Percentage and total number of significant investment
agreements that include human rights clauses or that C •
have undergone human rights screening
13-15
Our group strategy
HR2 Percentage of significant suppliers and contractors
that have undergone screening on human rights and C •
actions taken
HR3 Total hours of employee training on policies and
procedures concerning aspects of human rights that
A •
are relevant to operations, including the percentage of
employees trained
Non-discrimination
HR4 Total number of incidents of discrimination and
16-19
No Our delivery of value
C • incidents
actions taken
Freedom of association and collective bargaining
HR5 Operations identified in which the right to exercise
freedom of association and collective bargaining may
C WEB
be at significant risk, and actions taken to support
these rights
Child labour
HR6 Operations identified as having significant risks for
20-37
Our accounts
incidents of child labour, and measures taken to C WEB

contribute to the elimination of child labour
Appendix continued
Forced and compulsory labour

HR7 Operations identified as having significant risk
for incidents of forced or compulsory labour, and
C WEB
measures taken to contribute to the elimination of
forced or compulsory labour
Security practices
HR8 Percentage of security personnel trained in the
organisation’s policies or procedures concerning A WEB
aspects of human rights that are relevant to operations
Indigenous rights
HR9 Total number of incidents of violations involving rights No
A • incidents
of indigenous people and actions taken
Society
Community
SO1 Nature, scope and effectiveness of any programs
and practices that assess and manage the impacts
C • 10-11
of operations on communities, including entering,
operating and existing
Corruption
SO2 Percentage and total number of business units
C • 10-11
analysed for risks related to corruption
SO3 Percentage of employees trained in the organisation’s
C • 10-11
anti-corruption policies and procedures
SO4 Actions taken in response to incidents of corruption C NR
Public policy
SO5 Public policy positions and participation in public
C WEB
policy development and lobbying
SO6 Total value of financial and in-kind contributions to
Nil
political parties, politicians and related institutions by A • contributions
country
Anti-competitive behaviour
SO7 Total number of legal actions for anti-competitive
Nil legal
behaviour, anti-trust and monopoly practices and their A • actions
outcomes
Compliance
SO8 Monetary value of significant fines and total number of
Nil fines or
non-monetary sanctions for non-compliance with laws A • sanctions
and regulations
02-06
Product responsibility
Customer health and safety
PR1 Life cycle stages in which health and safety impacts of
09-10
products and services are assessed for improvement,
C • 10-11
and percentage of significant products and services
categories subject to such procedures
PR2 Total number of incidents of non-compliance with No
regulations and voluntary codes concerning health incidents
A • of non-
and safety impacts of products and services, by type
compliance
of outcomes
Product and service labelling
11-12
Our markets
PR3 Type of product and service information required by
procedures, and percentage of significant products C WEB
and services subject to such information requirements
PR4 Total number of incidents of non-compliance No
with regulations and voluntary codes concerning incidents
A • of non-
health and safety impacts of products and services
compliance
information and labelling, by type of outcomes
PR5 Practices related to customer satisfaction, including
A WEB
results of surveys measuring customer satisfaction
13-15
Our group strategy
Marketing communications
PR6 Programs for adherence to laws, standards and
voluntary codes related to marketing communications, C WEB
including advertising, promotion and sponsorship
PR7 Total number of incidents of non-compliance with No
regulations and voluntary codes concerning marketing incidents
A • of non-
communications, including advertising, promotion and
compliance
sponsorship, by types of outcomes
Customer privacy 16-19
PR8 Total number of substantiated complaints regarding No
breaches of customer privacy and losses of customer A • substantiated
complaints
data
Compliance
PR9 Monetary value of significant fines for non-compliance
with laws and regulations concerning the provision C • Nil fines, 11
and use of products and services
20-37
Our accounts
Glossary
Accredited renewable GreenPower accreditation provides assurance that the
energy sources renewable energy purchased will decrease greenhouse pollution
www.greenpower.gov.au and actively contribute to the development of a renewable
energy industry.
ASX Governance Council The objective of this Australian council is to develop and deliver
www.asx.com.au/supervision/ an industry-wide, flexible framework for corporate governance
governance/index.htm that is a practical guide for listed companies, to enable them to
improve their existing practices. (Note: local countries will have
their own corporate governance disclosure obligations.)
Carbon Disclosure Project This project provides a secretariat for the world’s largest
(CDP) institutional investor collaboration on the business implications
www.cdproject.net of climate change. CDP represents an efficient process whereby
many institutional investors collectively sign a single global
request for disclosure of information on Greenhouse Gas
Emissions. CDP has developed the Climate Leaders Index (CLI)
which is comprised of best-in-class responses to the annual
CDP request for disclosure information.
Carbon footprint A company’s carbon footprint is a measure of the impact its
www.carbonfootprint.com activities have on the environment in terms of the amount of
greenhouse gases produced, measured in units of carbon
dioxide.
Climate Leaders Index (CLI) The CLI reveals for investors which high-impact FT500
www.cdproject.net/ companies have the most comprehensive climate-change
climateleaders2006.asp disclosure practices in place, judging by each company’s
response to the CDP questionnaire.
Community Investment This includes the money value equivalent of all of the
Expenditure company’s community contributions including direct community
investment, charitable giving, employee volunteering and in-kind
infrastructure and equipment.
Corporate Responsibility Business in the Community’s CRI is the UK’s leading benchmark
Index (CRI) of responsible business, helping companies to integrate and
www.bitc.org.uk improve responsible business across their organisation, and
providing a systematic approach to managing, measuring and
reporting their impacts on society and the environment.
Dow Jones Sustainability The DJSI are the first global indexes tracking the financial
Indexes (DJSI) performance of the leading sustainability-driven companies
www.sustainability-index.com worldwide.
Enhanced Analytics Initiative The EAI is an international collaboration between asset owners
(EAI) and asset managers aimed at encouraging better investment
www.enhancedanalytics.com research, in particular research that takes into account the
impact of extra-financial issues on long-term investment.
FTSE4 Good Index The FTSE4 Good Index Series has been designed to measure
www.ftse.com/Indices/ the performance of companies that meet globally recognised
FTSE4Good_Index_Series/ corporate responsibility standards, and to facilitate investment in
index.jsp those companies.
02-06
Global Framework for This is a statement of investor expectations for comprehensive
Climate Risk Disclosure corporate climate risk disclosure. The statement urges
www.unepfi.org companies to develop a climate change statement, an emissions
management statement, details of the company’s corporate
governance of climate change and a strategic and physical risk
09-10
of climate change analysis.
Global Reporting Initiative The GRI vision is that reporting on economic, environmental and
G3 social performance by all organisations becomes as routine and
www.globalreporting.org comparable as financial reporting. GRI accomplishes this vision
by developing, continually improving and building capacity
around the use of its Sustainability Reporting Framework. The
G3 is the latest version of this framework.
Governance Metrics GMI provides independent governance ratings on over 4,000
International (GMI) companies globally. The rating criteria are based on securities
11-12
Our markets
www.gmiratings.com regulations, stock exchange listing requirements and various
corporate governance codes and principles.
Greenhouse gas (GHG) Direct GHG emissions (scope 1) occur from sources that are
emissions owned or controlled by the company, for example, emissions
www.ghgprotocol.org from combustion in owned or controlled vehicles and emissions
Direct from production in owned or controlled process equipment.
Indirect Indirect GHG emissions are a consequence of the activities
of the company, but occur at sources owned or controlled by
another entity. Indirect GHG emissions include both emissions
13-15
Our group strategy
from consumption of electricity, heat or steam (scope 2) and
other indirect emissions (scope 3), including transport-related
activities or transmission and distribution losses not covered in
scope 2.
Total Tax Rate (TTR) TTR measures the amount of taxes payable by the company
expressed as a share of commercial profits. The taxes included
can be divided into five categories: profit or corporate income
tax, social security contributions and other labour taxes paid
by the employer, property taxes, turnover taxes and other small 16-19
taxes. Our delivery of value
UNEP FI The United Nations Environment Program Finance Initiative

www.unepfi.org (UNEP FI) is a global partnership between UNEP and the
financial sector. Over 160 institutions, including banks, insurers
and fund managers, work with UNEP to understand the
impacts of environmental and social considerations on financial
performance.
UN Global Compact (UNGC) The UNGC is an international initiative of the UN that brings
www.unglobalcompact.org companies together with UN agencies, labour and civil society
to support universal environmental and social principles. All
20-37
Our accounts
participants are expected to provide an annual Communication

of Progress describing action taken in support of the Global
Compact.
UN Principles for The PRI aims to help integrate consideration of environmental,
Responsible Investment social and governance (ESG) issues by institutional investors
(PRI) into investment decision-making and ownership practices, and
www.unpri.org thereby improve long-term returns to beneficiaries.
Bases for calculation
For more detail refer to www.generico.com/environment/KPI_calculations.
1. GHG emissions
The carbon price of $12 used is a composite price based on the EU Emissions Trading Scheme
current spot price for 2005-2007 emissions and forward price for 2008-2012 emissions,
the NSW Greenhouse Gas Abatement Scheme current spot price and the Chicago Climate
Exchange current spot price.
Calculated GHG emissions are based on our reported scope 1, 2 and 3 emissions (refer to GHG
emissions in the glossary). These include the following factors:
- Emissions from production processes in installations owned by the company (scope 1)
- Consumption of purchased electricity (scope 2)
- Consumption of other fuels (including oil, natural gas and coal) (scope 2)
- Transportation of products, materials and waste by vehicles owned by the company (scope 1)
and vehicles owned by subcontractors (scope 3)
- Use of products manufactured and sold and disposal (end of life) of products sold (scope 3)
- Employee business travel (scope 3).
Units
Tonnes of carbon dioxide equivalents (t CO2-e): This is the standard unit for measuring the
quantity of greenhouse gas emissions.
2. Energy usage
All sites provided electricity meter readings which were aggregated to calculate total company-
wide energy usage.
Units
MWh: Megawatt hour. This is a unit of energy which represents one million watts running
continuously for one hour. 1 MWh = 3.6 GJ.
The conversion calculation from t CO2-e to MWh is: t CO2-e = 1.00/ MWh. This is based on the
calculated average value available on the Australian Greenhouse Office website.
Formula: CO2-e (tonnes) = Energy consumption (MWh) x Fuel emission factor (t CO2/MWh).
3. Water usage
Total water usage calculated from invoiced water usage data provided by utilities supplier at
each site.
Units
kL: Kilolitre (1,000 litres)
GL: Gigalitre (1,000,000 litres)
02-06
4. Materials usage
Weight of total materials used in production is captured through Generico’s inventory
management system.
09-10
Recycled input materials percentage is calculated as the percentage of recycled materials
divided by the total materials used in production. The weight of recycled materials is also
captured through the inventory management system.
5. Employee retention
Calculated using the formula: (Number of staff leaving/average headcount)*100. The recruitment
cost per employee of $35,000 is taken from p21 of the Generico 2007 Annual Report, the total
active employees of 875 is taken from p64 of the Annual Report and the total salary and wages
of $9,962,000 is taken from p59 of the Annual Report.
11-12
Our markets
The base case gross annual saving is calculated using:
Annual saving = (average recruitment cost) x
(turnover reduction %) x
(total active employees)
= $35,000 x 0.03 x 875
= $918,750
13-15
Our group strategy
16-19
20-37
Our accounts
© 2007 PricewaterhouseCoopers. All rights reserved. “PricewaterhouseCoopers” refers to the network
of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and
independent legal entity.
This document is provided by PricewaterhouseCoopers to its clients as general guidance only

and does not constitute the provision of accounting, legal advice, tax services, investment advice,
or professional consulting of any kind. The information provided herein should not be used as a
substitute for consultation with professional tax, legal, accounting or other competent advisers. Given
the changing nature of laws, rules and regulations, there may be omissions or inaccuracies in the
information presented herein. The information is provided “as is” with no assurance or guarantee of
completeness, accuracy or timeliness of the information. In no event will PricewaterhouseCoopers or
its professionals be liable in any way to you or to anyone else for any decision made or action taken in
reliance on the information.
PRINTED ON RECYCLED PAPER

www.pwc.com/au

ESG Reporting PWC PDF

Uploaded by

Copyright:

Available Formats

You might also like

ESG Reporting PWC PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

ESG Reporting PWC PDF

Uploaded by

Copyright:

Available Formats

Best Practice Environmental

Social and Governance (ESG)

Note to the reader:

Background to this report

2. Long-term targets and measurement

3. Transparent reporting against

4. Quantification of returns from enhanced

few suggested disclosures which are not relevant to Generico.

Modelling the future

There is therefore a growing imperative to manage, monitor

Modelling the future continued

So what ESG information should a company

What we’ve done to make it work

Generico example report

Chief executive’s statement

Challenges and success factors

and reporting, we have followed the guidance of the Global

Our markets continued

To date we have produced:

11 Reported in the Generico 2007 Annual Report, p21

Our group strategy

Strategic priority Key performance indicators

Total water usage is the aggregate water usage based on data

Financial impact of materials Two metrics are used:

Employee retention (turnover %) Calculated using the formula:

Indirect economic impact on Total community investment expenditure, including employee

Total GHG emissions (‘000 tonnes) BÊÊÊÊLoss of comparative advantage EN3,

*08 target 1060

BÊÊÊÊReputational and financial impact of EN1,

Employee retention (%) BÊÊÊÊLoss of skilled operators LA2

* = Financial impact of FY08 potential savings described in Our accounts

Our delivery of value

How do we measure value creation?

Modelling the future

Best case 2008

Worst case 2008

Change in Financial impact

share +/-$2m (Gross profit)

Delivery of value continued

Best case 2008

Change in Financial impact

13 Refer to the glossary for details of these benchmarks

B Continued focus on non-financial opportunities arising from

Net savings from ESG strategy

Key performance indicators

14 Our basis of calculation is provided in the glossary

Source: Refer to www.generico.com/environment/KPI calculations/recycling for details

Our accounts continued

Corporate responsibility benchmarking

as well as those collected on behalf of the Government. 50%

Total Tax Contribution for Generico Generico 2006

Key to GRI indicator status

Full Partial Future Ref

Strategy and analysis

1.2 Description of key impacts, risks and opportunities • 9, AR16

2.2 Primary brands and products • AR2

2.3 Operational structure of the organisation, including

2.5 Number of countries where the organisation operates