10 Sustainable  Business  Strategy Working together for  a sustainable future 175 years into our journey, AGL is committed to building a sustainable  future for all of our stakeholders – our customers, ouremployees,  our investors, the community and the environment. Sustainability strategy Loy Yang acquisition Sustainability performance data Energy for Life Sustainability reporting The material risks that influence AGL’s  business priorities include: AGL has established 12 strategic  indicators of success to track our  performance over time, together with  visions to guide our actions in the longer  term. Performance in each of these  areas is monitored on a quarterly basis  by the Board’s Safety, Sustainability and  Corporate Responsibility Committee. The following pages provide an account  of AGL’s performance against each of  the 12 strategic sustainability targets.  They also set new targets for FY2013.  This is the third year this framework has  been used to measure our performance.  Further sustainability performance data  will be available in the 2012 Sustainability  Performance Report, which will be  published online around November 2012. On 29 June 2012, AGL completed its  acquisition of the Loy Yang A power  station and adjacent coal mine in Victoria’s  LaTrobe Valley. Loy Yang will increase AGL’s operational  greenhouse gas emissions footprint from  around 1.5 million tonnes per annum to  around 20 million tonnes per annum.  The increase in AGL’s operational emissions  will not result in an increase in total  emissions from the energy sector. AGL’s investment strategy will not change  as a result of the acquisition of Loy Yang.  Our goal is to be the largest renewable  energy company in Australia. Cashflows  generated by Loy Yang will fund our pipeline  of renewable energy and low emission  projects. AGL’s corporate citizenship program  is called Energy for Life. We give our  employees opportunities to make charitable  donations through payroll giving (Employee  Giving), or to take a day of paid volunteer  leave to assist a community organisation  (Employee Volunteering). In FY2012, an internal review of Energy for  Life resulted in the introduction of a range of  new charity partners and the establishment  of a more strategic framework for AGL’s  community contributions. Over the next 6 years, AGL will invest  more than $3 million in a number of  community partnerships working to support  families experiencing or at risk of energy- related financial hardship and to promote  household safety. We aim to support  households experiencing hardship through  prevention and education; intervention and  capacity building; and crisis support. AGL reports on sustainability performance  to give stakeholders an understanding of  the social, environmental and economic  challenges facing it and the energy  industry, and the steps that AGL is taking  to protect and grow the long-term value  of its business. AGL has published an  annual Sustainability Performance Report  since 2004 to communicate sustainability  performance in the areas of customers,  community, people, economic, climate  change and environment. Net Balance Management Group  (Net Balance) has provided assurance over  the 12 strategic sustainability indicators in  this report using the AA1000 Assurance  Standard (2008). Net Balance will be  carrying out independent assurance over  the 2012 Sustainability Performance  Report and conducting a third-party  application level check against the Global  Reporting Initiative’s (GRI) G3 Sustainability  Reporting Guidelines. This report covers the activities and facilities  over which AGL had operational control  for all, or part of, the financial year ended  30 June 2012, other than Loy Yang which  was only acquired on 29 June 2012. Data  relates to FY2012 unless otherwise stated. > Economic performance  – delivering  AGL’s integrated strategy and managing  longer term challenges that may affect  sustainable returns to investors. > Customers  – delivering excellent service  and value to customers and providing  access to energy for vulnerable customers. > Community  – engaging with local  communities about our development  activities, and responding to broader  community needs. > People and safety  – providing a safe  workplace environment and developing  the skills and talents of employees to  deliver outstanding business results. > Climate change  – structuring AGL’s  portfolio of assets in readiness for  a carbon constrained future. > Environment  – managing the  environmental impacts of supplying  energy to customers, throughout the  energy supply chain.