A Message from the CEO
During 2018 IPL continued to create long term economic value while caring for our people, our communities and our environment. We remain committed to operating in a manner which acknowledges and proactively manages those issues which are most material to the long term sustainability of our business, the environment and the communities in which we operate.
We made significant progress with our strategic agenda through the year, defining Our Purpose in creating shared value and by focusing on our core competencies and driving sustainable growth through our six value drivers – Zero Harm, Talented & Engaged People, Customer Focus, Leading Technology Solutions, Manufacturing Excellence and Profitable Growth. We call this One IPL, working collaboratively across the Company to deliver ‘Innovation on the Ground’ to better serve our customers and build a sustainable business.
Our deep commitment to Zero Harm for our people and all our stakeholders continues to be our number one priority. Whilst we achieved our core safety target of Total Recordable Injury Frequency Rate (TRIFR) of less than 1 in 2018, we are not satisfied with this performance. We are applying our continuous improvement mindset to re-focus our Zero Harm strategy, broadening and setting year-on-year improvement objectives across environmental care and process safety as well as targeting a 30 percent improvement in TRIFR by 2021.
Talented & Engaged People are key to the delivery of our One IPL mindset. In 2018 we built a new leadership structure which includes the role of Group Chief Technology Development Officer. This reflects the importance of continuing to develop Leading Technology Solutions to meet new challenges facing our customers, including in the areas of safety, environmental responsibility, energy efficiency and climate change. To better engage our workforce, we conducted a company-wide employee engagement survey and developed a three-year employee engagement plan. We also exceeded a target of 2 percent Indigenous employees across our Australian businesses and remain committed to the gender diversity stretch target we set last year of 25 percent participation of women in our workforce by September 2022.
Our site-based community engagement and investment approach has provided some great Case Studies in 2018, each arising from our teams working across the globe to engage with their diverse and unique communities. In particular, we rallied to support our Indonesian employees who were impacted by a tsunami and our Australian farming communities as they responded to drought.
This year we strengthened our strategy, governance and Risk Management processes through using climate change scenarios to more formally assess the risks and opportunities for IPL associated with climate change. We recognise the need to not only manage our emissions, but to strategically manage the market impacts and physical risks associated with climate change, both now and in the future. Manufacturing Excellence, particularly at the new energy efficient Waggaman plant, and including continued investment in abatement technologies, allowed us to achieve a six percent reduction in greenhouse gas emissions per tonne of ammonia produced in 2018 against our 2015 baseline. While our greenhouse gas emissions per tonne of nitric acid increased slightly from last year’s intensity due to an unexpected maintenance issue, these emissions were seven percent below our 2015 baseline. New equipment has been fabricated and delivered, and will be installed to address this issue during 2019.
Energy efficiency, reducing waste and water use and managing other environmental impacts continue to be key parts of our environmental focus and we set a new target of Zero Significant Environmental Incidents for 2019. We also reduced our total global nitrogen oxide (NOx) and sulphur oxide (SOx) emissions for the second consecutive year, while achieving increases in production.
For the fifth year, this online Sustainability Report supplements the short form Sustainability Report in our Annual Report. Our objective is to meet the needs of our diverse stakeholder group in an efficient and effective manner. I invite you to read it and welcome any feedback you may have.
Managing Director and CEO