37 AGL Energy Limited Annual Report 2012 remuneration review process undertaken  at the start of the year. They have  delivered a more efficient means of  providing fair remuneration outcomes for  all employees. The objectives, and progress made toward  achieving them, are set out below. person who has expertise in managing  employee grievances. The Ethics Panel met  four times during the year. AGL’s Code of Conduct was most recently  reviewed by the Board in 2010. The Code  of Conduct is available on AGL’s website. AGL is committed to the highest  standards of integrity, fairness and ethical  conduct, including full compliance with all  relevant legal requirements. There is no  circumstance under which it is acceptable  for AGL or a person associated with AGL to  knowingly or deliberately not comply with  the law or to act unethically in the course  of performing or advancing AGL’s business.  Behaviour of this kind will lead to disciplinary  measures that may include dismissal. AGL’s Compliance Policy sets out  responsibilities for compliance with AGL’s  legal obligations. The Policy is published on  AGL’s website. In 2011, AGL adopted a Diversity and  Inclusion Policy to describe AGL’s approach  to diversity and inclusion and how these  attributes are to be embedded in AGL  workplaces. The Policy includes specific  provisions regarding gender diversity and  the positive correlation between increased  representation of women on company  boards and in senior management positions  and the achievement of better financial  performance, higher employee retention  rates, and enhanced corporate image  and reputation. The Policy is published on  AGL’s website. AGL has established a Diversity & Inclusion  Council to support the achievement of a  diverse workforce and an inclusive  workplace culture. The Council is chaired by  Michael Fraser, AGL’s CEO, and comprises  eight other members drawn from senior  leaders across AGL’s business. Five of the  members are women. During 2011, the Board established  measurable objectives for achieving gender  diversity. The objectives focussed on  establishing the foundations, policies and  practices to underpin an inclusive  workplace culture that supports gender  diversity. These objectives align with the  diversity focus areas established by the  Diversity & Inclusion Council: building AGL’s  inclusive workplace culture; flexibility and  carer’s needs; and women in the workplace. AGL’s remuneration review system now  delivers simple on-screen calculations and  tailored reporting to assist leaders assess  whether they have any unexpected  (potentially gender-biased) results at the  time remuneration is being set. These  enhancements were implemented for the  During the coming year, AGL will be  developing and implementing further  initiatives to build on the leadership  awareness and skills developed through  the inclusive leadership training  implemented over the last twelve  months. In addition, AGL will conduct a  Diversity Census to develop a deeper  understanding of its workforce  demographics and the needs of  particular employee groups. Revised remuneration training for leaders  was delivered during March 2011 and  this training included gender pay equity  concepts. The training was adapted to an  online format and launched across AGL in  November 2011. The online training  module is included in the on-boarding  process for all new AGL leaders. AGL continues to enhance its talent  management processes to facilitate an  increased representation of women in  leadership. Additional metrics have been  developed to assess the proportion  of women identified as successors for  business critical roles. These metrics  have been applied in AGL’s talent review  process and are supporting development  planning for women across the Company  with the aim of deepening the pool  of potential female successors for  critical roles. A customised workshop for leaders has  been developed and delivered across all  areas of the business. It builds on  traditional anti-discrimination and  harassment compliance training to cover  concepts of diversity, inclusion and  unconscious bias; how these play out in  the workplace; and how to manage  issues when they arise. 370 AGL leaders  attended the training during FY2012. A new Parental Leave Policy was  launched in December 2011. It included  enhancements to position AGL’s policy  among best practice organisations.  The new policy provides 14 weeks paid  leave for women or men who are the  primary carers of a newborn or newly  adopted child and 2 weeks paid leave for  partners at the time of birth or adoption.  Employees also have the flexibility to  structure their paid leave flexibly, in  multiple blocks or on a part-time basis,  to match their individual caring situation.  Paid parental leave provided under AGL’s  policy is in addition to any paid parental  leave entitlement under the Australian  Government Paid Parental Leave scheme. Having met the objectives set in 2011, the  Board set new objectives for the year  commencing 1 July 2012. The objectives  reflect AGL’s policy continuing work to  establish and embed an inclusive workplace  culture that supports gender diversity, and  include a three year goal to increase the  representation of women in the most  senior positions in the company. These  objectives do not yet extend to AGL Loy  Yang. The Board will consider setting  objectives that are inclusive of AGL Loy  Yang during 2013. Progress to date Progress to date Recommendation 3.3 –  Companies should  disclose the measurable objectives for  achieving gender diversity and progress  toward achieving those objectives Progress to date Recommendation 3.2  – Companies should  establish a policy concerning diversity Progress to date Progress to date Compliance Policy 1  AGL will continue to build a culture of  inclusion that will support all employees  to contribute and achieve their potential.  By June 2012, AGL will deliver face-to- face diversity and inclusion training to  AGL leaders. 4  AGL will support employees seeking  flexible work arrangements as well as the  specific needs of our employees who are  carers. By December 2011, AGL’s  Parental Leave Policy will be updated to  be amongst best practice organisations. 2  AGL will continue to implement initiatives  to increase the number of women in  leadership positions. By March 2012,  AGL will develop succession plans to  increase female representation in key  leadership positions. 3  AGL will ensure equity in remuneration  principles. By September 2011, AGL will  embed pay equity analytics into AGL’s  Remuneration Review System and  update remuneration training for leaders  to include pay equity principles. 1  AGL will continue to build a culture of  inclusion that will support all employees  to contribute and achieve their potential.  By June 2013, AGL will, in a consultation  process with employees, identify and  develop further initiatives to embed  inclusive leadership and support  workforce diversity.