23 AGL Energy Limited 2012 Annual Report Vision Target FY2012 Performance FY2012 Target FY2013 Environmental risk To have an  environmental risk  profile that is As  Low As Reasonably  Practicable  (ALARP). Develop  biodiversity  register for  AGL assets and  projects which  identifies any  impacts on  biodiversity  values. The biodiversity  register is  established.  It provides a  company-wide  baseline of  information that  will enhance AGL’s  understanding  of its biodiversity  risks. 100% of approved  risk register  actions for the  highest residual  environmental  risks implemented  in accordance  with targeted  milestones. 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. Implement the  Produced Water  Management  Strategy, and  develop plans  for drill water  and coal seam  fracturing/ flowback water. Site specific  water plans and  reuse trials were  undertaken in  line with the  Produced Water  Management  Strategy. Increase number  of dedicated  monitoring bores  and stream gauging  sites relative to  overall number of  CSG wells/sites. Water management Environmental risk AGL is continuing to develop dedicated  groundwater and surface water monitoring  networks across its Gloucester, Hunter  and Galilee CSG exploration areas, and is  in the process of establishing dedicated  monitoring bore networks at its production  wellfield at Camden and expansion area  at Camden North. In addition, there are  dedicated monitoring locations in the  vicinity of its proposed natural gas storage  facility at Tomago. Seventy dedicated groundwater monitoring  bores, 5 perched water monitoring bores,  and 16 surface monitoring locations are now  operational across the Hunter, Gloucester,  Galilee, Camden North and Tomago project  areas. In FY2012, 18 new dedicated  groundwater monitoring bores and 2 new  surface monitoring locations were installed  and became operational (in the Gloucester,  Camden North and Tomago project areas). Results to date from AGL’s dewatering  activities in the Hunter, Galilee and Camden  Gas Projects suggest that groundwater in  deep coal seams in these CSG project areas  is isolated from water resources in shallow  aquifers and streams. Water level declines  have been negligible and water quality  has not been impaired as a result of AGL’s  activities. During FY2012, AGL’s main environmental  risks have related to surface water,  groundwater, biodiversity and the  management of historic land contamination.  Work programs have been developed to  manage these risks. Further information on AGL’s environmental  risks and detailed environmental  performance data will be published in the  2012 Sustainability Performance Report. AGL’s approach to the identification of  environmental risks is consistent with  the approach taken in the ISO 14001  Environmental Management Systems  standard. Risks identified through the  ‘aspects and impacts’ approach are  assessed from the perspectives of ‘inherent  risks’, and ‘treated risks’ (which take into  consideration existing control measures).  This approach enables AGL to put in place  critical controls and to identify where the  highest residual risks remain so resources  can be targeted appropriately, or informed  decisions can be made about accepting  certain risks. AGL maintains environmental risk registers  for all our coal seam gas projects and large  power generation facilities. Risk registers  are regularly reviewed and assessed by  a range of operations personnel and  environmental specialists. AGL’s seeks to maintain an environmental  risk profile that is As Low As Reasonably  Practicable (ALARP). This requires continual  improvement based on an understanding  of risks, and a commitment to reduce the  highest risk items where practicable.