AGL Energy Limited 2011 Annual Report 23 Vision Target FY2011 Performance FY2011 Target FY2012 Environmental risk To have an environmental  risk profile that is As Low  As Reasonably Practicable  (ALARP). Update, establish and monitor  environmental risk registers for  significant power generation and  coal seam gas projects. Environmental risk registers  in place, current, and  monitored for significant  power generation and coal  seam gas projects. Develop biodiversity register  for AGL assets and projects  which identifies any impacts  on biodiversity values. Water management To be recognised as a  prudent and responsible  user of water that seeks to  minimise the adverse impact  of its operations on local  water resources. Continue to develop a Water  Management Strategy for coal  seam gas projects. A Produced Water  Management Strategy for  coal seam gas projects has  been established. Implement the Produced  Water Management Strategy,  and develop plans for  drill water and coal seam  fracturing/fl owback water. During FY2011, risk registers were updated or established for all our  coal seam gas projects and large power generation facilities over  150 MW. The highest levels of environmental risk, after taking into  consideration existing controls, relate to surface water, groundwater  and biodiversity. For the broader energy sector, air quality issues are a significant  concern. AGL is continuing to develop low-emission generation assets  that contribute to creating a cleaner environment. Air emissions of  sulfur dioxide, oxides of nitrogen, particulates, carbon monoxide and  volatile organic compounds from AGL operated electricity generation  facilities represent less than 2% of emissions for each pollutant  type reported to the National Pollutant Inventory for the electricity  generation sector for FY2010. While not material, AGL will continue  to monitor and where possible minimise these emissions. Detailed environmental performance data will be published in the  2011 Sustainability Performance Accounts, available online in  November 2011. A summary of environmental incidents is included  on page 46 of this report. Water management is a key component of AGL’s CSG exploration  and production projects. In FY2011, AGL developed a Produced Water Management Strategy  in recognition of the need to protect ground and surface water  resources and to use water sustainably across CSG operations.  The long-term objective of this strategy is to substantially increase  the proportion of produced water that is beneficially re-used for  industrial/commercial, mining and/or primary production purposes. AGL has also established dedicated groundwater and surface  water monitoring networks at its Gloucester, Hunter and Galilee  CSG exploration areas, and in the vicinity of the proposed natural  gas storage facility at Tomago. Fifty-nine dedicated groundwater  monitoring bores and nine surface monitoring locations are now  operational across these projects. Results to date from the Hunter Gas Project indicate that  groundwater in deep coal seams we want to exploit for gas in this  project area is isolated from water resources in shallow aquifers and  streams. The results also show that water levels have not declined  and that water quality has not been impaired as a result of AGL’s  exploration activities. Water Management Environmental Risk