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Sustainability Accounting Standards Board (SASB) Index

In 2018, the Sustainability Accounting Standards Board (SASB) published a set of 77 globally applicable industry-specific standards which identify a minimum set of sustainability issues most likely to impact the operating performance or financial condition of the typical company in an industry, regardless of location. Use of the SASB standards is voluntary in Australia.

AGL has used the following SASB Sustainability Accounting Standards to inform our FY23 disclosures:

  • Electric Utilities and Power Generators Sustainability Accounting Standard (October 2018)

  • Gas Utilities and Distributors Sustainability Accounting Standard (October 2018)

The index below references where SASB-aligned disclosures have been made in the FY23 Annual Report or ESG Data Centre.

Greenhouse gas emissions and energy resource planning

SASB Code

Accounting Metric

Response

IF-EU-110a.1.

(1) Gross global Scope 1 emissions, percentage covered under (2) emissions-limiting regulations, and (3) emissions-reporting regulations

Refer to Operational greenhouse gas footprint and net energy production in the data centre.

Greenhouse gases included in AGL's footprints include CO2, CH4, N2O, HFCs, PFCs and SF6. AGL does not report on nitrogen trifluoride (NF3) as it is not required under the National Greenhouse and Energy Reporting Act 2007.

Emission factors and global warming potentials are sourced from the National Greenhouse and Energy Reporting (Measurement) Determination 2008, as amended for the relevant reporting year.

The Federal Government Safeguard Mechanism requires baselines to be set for specific facilities with large emissions. All grid connected electricity generators are covered by a sectoral baseline. Over 99% of AGL's Scope 1 emissions come from electricity generation and are covered by this baseline.

AGL reports 100% of our Scope 1 and 2 emissions under the National Greenhouse and Energy Reporting Act 2007.

IF-EU-110a.2

Greenhouse gas (GHG) emissions associated with power deliveries

Refer to the Energy supply greenhouse gas footprint in the data centre. AGL's energy supply greenhouse gas footprint includes emissions from electricity sold to all customers including wholesale customers, but does not include emissions where electricity is sold to the pool.

IF-EU-110a.3

Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, emissions reduction targets, and an analysis of performance against those targets

Refer to AGL's Climate Transition Action Plan, the Environment scorecard in the FY23 Annual Report and the FY23 TCFD Report.

IF-EU-110a.4

(1) Number of customers served in markets subject to renewable portfolio standards (RPS) and (2) percentage fulfillment of RPS target by market

As an electricity retailer, AGL is required to comply with the Australian Commonwealth Renewable Energy Target (RET) scheme, as mandated by the Renewable Energy (Electricity) Act 2000 (Act). The RET scheme operates in two parts: the Small-scale Renewable Energy Scheme (SRES) and the Large-scale Renewable Energy Target (LRET). As the RET scheme covers all Australian jurisdictions in which AGL operates as an electricity retailer, all of AGL's customers are located in markets subject to the RET scheme. Refer to customer services in the Data Centre for information on AGL's customer numbers.

The most recent compliance period under the RET scheme was Calendar Year 2022. During this compliance period, AGL fulfilled 100% of its liability under both the SRES and the LRET.

Air quality

SASB Code

Accounting Metric

Response

IF-EU-120a

Air emissions of the following pollutants: (1) NOx (excluding N2O), (2) SOx, (3) particulate matter (PM10), (4) lead (Pb), and (5) mercury (Hg); percentage of each in or near areas of dense population

AGL reports NOx, SO2, PM10, Pb and Hg as well as other air emissions from all facilities in the data centre.

AGL also reports air emission data to the Commonwealth's National Pollutant Inventory. This data is available publicly and can be searched by map. The percentage of relevant air pollutants in or near areas of dense populations is not currently reported.

Water management

SASB Code

Accounting Metric

Response

IF-EU-140a.1

(1) Total water withdrawn, (2) total water consumed, percentage of each in regions with High or Extremely High Baseline Water Stress

AGL discloses total Water withdrawal by source and Water consumption by facility in the data centre. The percentage of water consumed/withdrawn in regions of High or Extremely High baseline water stress is also disclosed in the Water consumption by facility data series.

IF-EU-140a.2

Number of incidents of non-compliance associated with water quantity and/or quality permits, standards, and regulations

Refer to the Legislative non-compliance summary in the data centre.

IF-EU-140a.3

Description of water management risks and discussion of strategies and practices to mitigate those risks

Water risks are assessed, monitored and mitigated and/or managed in accordance with AGL’s enterprise-wide Fully Integrated Risk Management (FIRM) policy.

Physical risks relating to climate change, including water-related risks, are summarised in the Climate-related risk section of the FY23 Annual Report, and outlined in more detail in our FY23 TCFD Report.

Coal ash management

SASB Code

Accounting Metric

Response

IF-EU-150a.1

Amount of coal combustion residuals (CCR) generated, percentage recycled

Total coal combustion residuals generated and recycled are reported in the Waste data series in the data centre.

IF-EU-150a.2

Total number of coal combustion residual (CCR) impoundments, broken down by hazard potential classification and structural integrity assessment

The consequence categories of AGL's operational Coal Combustion Residual impoundments ('ash dams') as per the Australian National Committee on Large Dams - Guidelines on Tailings Dams (ANCOLD 2019) are currently as follows:

- Bayswater Ash Dam: High A
- Liddell Ash Dam: High A
- Liddell Ash Levee: High C
- Ravensworth Void 5: Low
- Loy Yang Ash Dam: High B

AGL primarily classifies ash dams according to ANCOLD 2019 and the relevant jurisdiction requirements in which the dams are located.

Consequence Categories according to ANCOLD 2019 are based on the modelled impacts following a dam break study of the hypothetical most significant failure mode of the dam, regardless of the probability of failure or the controls in place to manage the risk of failure. The categories under ANCOLD, 2019, in decreasing order of severity, are:

i. Extreme
ii. High A, High B, High C
iii. Significant
iv. Low
v. Very Low

Each AGL Business Unit maintains a Dam Safety Management Program in line with the requirements of the specific jurisdiction and ANCOLD guidelines. This includes third party inspection regimes by qualified Dam Safety Engineers commensurate with the Consequence Category of the dam asset.

Dam surveillance inspections, monitoring and ongoing safety reviews of AGL's ash dams are undertaken in accordance with AGL's Dam Safety Management Programs.

* The consequence categories of these impoundments are currently undergoing a reassessment as per the new legislative Dam Safety reform in NSW.

Energy affordability (electricity)

SASB Code

Accounting Metric

Response

IF-EU-240a.1

Average retail electric rate for (1) residential, (2) commercial, and (3) industrial customers

Refer to Section 6.2 in the FY23 Annual Report for AGL's average unit rate of revenue in $/MWh for Consumer, Large Business, and Wholesale customer segments. Categories used by AGL differ slightly from the SASB categories.

IF-EU-240a.2

Typical monthly electric bill for residential customers for (1) 500 kWh and (2) 1,000 kWh of electricity delivered per month

AGL does not currently report publicly on this information. However the Australian Government's independent Energy Made Easy website contains details of AGL and other retailers' energy plans and rates.

IF-EU-240a.3

Number of residential customer electric disconnections for non-payment, percentage reconnected within 30 days

Number of electricity disconnections for non-payment in FY23, as reported to the Essential Services Commission and the Australian Energy Regulator: 18,901

Percentage of electricity disconnections for non-payment that were reconnected within 7 days in FY23, consistent with the regulatory methodology as reported to the Essential Services Commission and the Australian Energy Regulator: 55%

TThe process of disconnection is highly regulated across all Australian states, providing specific requirements to be met prior to disconnecting a residential customer for non-payment and to ensure that disconnection occurs as a measure of last resort. These requirements include how and when we attempt to contact a customer after their bill becomes overdue, whether a customer has been offered payment support, if the customer has been identified as in financial difficulty and what steps have been taken to assist the customer to manage their debt. There is also a restriction on the minimum amount of debt owed by a customer before AGL can pursue disconnection.

Furthermore, throughout the course of FY22, the Australian Energy Regulator and the Essential Services Commission Victoria both issued a range of regulatory guidelines with an overarching principle of increasing consumer protections during the ongoing pandemic situation. These guidelines were followed in FY23 as well and are embedded in our operational processes, ensuring that disconnection is always a last resort.

We work with customers to avoid disconnection at all stages, offering a range of payment options, affordable payment plans, access to government and non-government support if required and assistance with managing energy costs. Through our assistance programs, we provide customers with protections ensuring their supply is not impacted if they’re experiencing short or long term financial difficulty.


Note: The disconnection and reconnection data reported above relates to energy customer services in Victoria, New South Wales, South Australia and Queensland only, noting AGL does not currently disconnect for non-payment in Western Australia.

IF-EU-240a.4

Discussion of impact of external factors on customer affordability of electricity, including the economic conditions of the service territory

AGL has taken steps to address affordability across the energy supply chain through its advocacy, strategy, commercial investment decisions, and ongoing product and service innovation. Refer to the Customer scorecard section of the FY23 Annual Report.

Information on AGL's total level of Customer debt, and the Average level of debt of customers on Staying Connected(AGL's hardship program) is available in the data centre.

Energy affordability (gas)

SASB Code

Accounting Metric

Response

IF-GU-240a.1

Average retail gas rate for (1) residential, (2) commercial, (3) industrial customers, and (4) transportation services only

Refer to Section 6.3 in the FY23 Annual Report for AGL's average unit rate of revenue in $/GJ for Consumer, Large Business, and Wholesale customer segments. Categories used by AGL differ slightly from the SASB categories.

IF-GU-240a.2

Typical monthly gas bill for residential customers for (1) 50 MMBtu and (2) 100 MMBtu of gas delivered per year

AGL does not currently report publicly on this information. However the Australian Government's independent Energy Made Easy website contains details of AGL and other retailers' energy plans and rates.

IF-GU-240a.3

Number of residential customer gas disconnections for non-payment, percentage reconnected within 30 days

Number of gas disconnections for non-payment in FY23, as reported to the Essential Services Commission and the Australian Energy Regulator: 6,858

Percentage of gas disconnections for non-payment that were reconnected within 7 days in FY23, consistent with the regulatory methodology as reported to the Essential Services Commission and the Australian Energy Regulator: 49%

Refer to SASB metric ""IF-EU-240a.3"" above for summary of how policies, programs, and regulations impact the number and duration of residential customer (including gas customer) disconnections.

There were less gas disconnections performed in FY23 relative to electricity disconnections due to the proportionally higher number of electricity accounts managed by AGL. Additionally there is an inherently higher rate of disconnection completion (and in turn reconnection) for electricity accounts versus gas accounts.

Note: The disconnection and reconnection data reported above relates to energy customers in Victoria, New South Wales, South Australia and Queensland only, noting AGL does not currently disconnect for non-payment in Western Australia.

IF-GU-240a.4

Discussion of impact of external factors on customer affordability gas, including the economic conditions of the service territory

Refer to SASB metric 'IF-EU-240a.4' above.

Workforce health and safety

SASB Code

Accounting Metric

Response

IF-EU-320a.1

(1) Total recordable incident rate (TRIR), (2) fatality rate, and (3) near miss frequency rate (NMFR)

Refer to the Safety section of the data centre.

AGL records and reports on its TIFR (Total incident frequency rate), rather than TRIR. AGL does not disclose a 'near miss frequency rate' as per the SASB metric. However, data on the total number of health, safety and environmental near misses is reported in the Other HSE performance indicators data series in the data centre.

End-use efficiency and demand (electricity)

SASB Code

Accounting Metric

Response

IF-EU-420a.1

Percentage of electric utility revenues from rate structures that (1) are decoupled and (2) contain a lost revenue adjustment mechanism (LRAM)

AGL has assessed that this metric does not apply.

IF-EU-420a.2

Percentage of electric load served by smart grid technology

As AGL is not a network operator, AGL has assessed that this metric is not material.

IF-EU-420a.3

Customer electricity savings from efficiency measures, by market

AGL's energy savings in respect of electricity consumed by its customers during the 2022 compliance period as per Victorian Energy Upgrades (VEU), the New South Wales Energy Savings Scheme (ESS), the South Australian Retailer Energy Productivity Scheme (REPS) and the ACT Energy Efficiency Incentive Scheme^ was equivalent to 2,060,337 MWh.

* This scheme required obligated retailers to undertake mandated activities, either themselves or through third party contractors. The data shown above represents the total energy savings through activities undertaken for AGL, and Powerdirect; only a portion of these savings are made by AGL or Powerdirect customers.

^ This scheme allows AGL as a 'tier 2 NERL retailer' in the ACT to achieve retailer energy savings obligation by paying an energy saving contribution.

End-use efficiency and demand (gas)

SASB Code

Accounting Metric

Response

IF-GU-420a.1

Percentage of gas utility revenues from rate structures that (1) are decoupled or (2) contain a lost revenue adjustment mechanism (LRAM)

AGL has assessed that this metric does not apply.

IF-GU-420a.2

Customer gas savings from efficiency measures by market

AGL's energy savings in respect of gas consumed by its customers during the 2022 compliance period as per the Victorian Energy Upgrades (VEU) and the South Australian Retailer Energy Productivity Scheme (REPS) was 587,534 GJ.

* This scheme required obligated retailers to undertake mandated activities, either themselves or through third party contractors. The data shown above represents the total energy savings through activities undertaken for AGL.

Nuclear safety and emergency management

SASB Code

Accounting Metric

Response

IF-EU-540a.1

Total number of nuclear power units, broken down by U.S. Nuclear Regulatory Commission (NRC) Action Matrix Column

This metric does not apply as AGL does not own or operate nuclear power generation facilities.

IF-EU-540a.2

Description of efforts to manage nuclear safety and emergency preparedness

This metric does not apply as AGL does not own or operate nuclear power generation facilities.

Grid resiliency

SASB Code

Accounting Metric

Response

IF-EU-550a.1

Number of incidents of non-compliance with physical and/or cybersecurity standards or regulations

AGL has not had any material instances of non-compliance with a mandatory cybersecurity regulation or standard in FY23. AGL has not had any material instances of non-compliance with regulations relating to grid resiliency in FY23.

IF-EU-550a.2

(1) System Average Interruption Duration Index (SAIDI), (2) System Average Interruption Frequency Index (SAIFI), and (3) Customer Average Interruption Duration Index (CAIDI), inclusive of major event days

This metric does not apply as AGL is not a network operator.

Integrity of gas delivery infrastructure

SASB Code

Accounting Metric

Response

IF-GU-540a.1

Number of (1) reportable pipeline incidents, (2) Corrective Action Orders (CAO), and (3) Notices of Probable Violation (NOPV)

AGL Surat assets had one reportable pipeline incident. A small area of pipeline corrosion resulted in a volume of produced water being released to the immediate vicinity. AGL Surat reported this to QLD Department of Environment and Science (DES) in accordance with its compliance obligations. This resulted in DES issuing an Enforcement Action. DES considered AGL’s response appropriate and issued a Penalty Infringement Notice to conclude the matter.

IF-GU-540a.2

Percentage of distribution pipeline that is (1) cast and/or wrought iron and (2) unprotected steel

This metric does not apply as AGL does not operate gas distribution networks.

IF-GU-540a.3

Percentage of gas (1) transmission and (2) distribution pipelines inspected

AGL has completed 100% of required in-line inspections during FY23. This included direct integrity assessment excavations, coating defect excavations, above ground piping leak surveys and visual inspections.

IF-GU-540a.4

Description of efforts to manage the integrity of gas delivery infrastructure, including risks related to safety and emissions

Transmission pipelines are operated and maintained in accordance with the requirements of Australian Standard AS2885 Pipelines—Gas and liquid petroleum.

Processes to manage operating integrity and safety are described in the Pipeline Management System (PMS), Pipeline Integrity Management Plan (PIMP) and facility HS&E policies and procedures (e.g., Emergency Response Plans).

Activity metrics (electricity)

SASB Code

Activity Metric (Electricity)

Response

IF-EU-000.A

Number of: (1) residential, (2) commercial, and (3) industrial customers served

Customer numbers are disclosed in the Customer services data series. Categories used by AGL differ slightly from the SASB categories.

IF-EU-000.B

Total electricity delivered to: (1) residential, (2) commercial, (3) industrial, (4) all other retail customers, and (5) wholesale customers

Refer to Section 6.2 of the FY23 Annual Report. Categories used by AGL differ slightly from the SASB categories.

IF-EU-000.C

Length of transmission and distribution lines

This metric does not apply as AGL does not own or operate electricity transmission or distribution networks.

IF-EU-000.D

Total electricity generated, percentage by major energy source, percentage in regulated markets

Refer to the Electricity output by primary energy source data series in the data centre. Categories used by AGL differ slightly from the SASB categories.

IF-EU-000.E

Total wholesale electricity purchased

Refer to Section 6.2 of the FY23 Annual Report. Categories used by AGL differ slightly from the SASB categories.

Activity metrics (gas)

SASB Code

Accounting Metric

Response

IF-GU-420a.1

Percentage of gas utility revenues from rate structures that (1) are decoupled or (2) contain a lost revenue adjustment mechanism (LRAM)

AGL has assessed that this metric does not apply.

IF-GU-420a.2

Customer gas savings from efficiency measures by market

AGL's energy savings in respect of gas consumed by its customers during the 2022 compliance period as per the Victorian Energy Upgrades (VEU) and the South Australian Retailer Energy Productivity Scheme (REPS) was 587,534 GJ.

* This scheme required obligated retailers to undertake mandated activities, either themselves or through third party contractors. The data shown above represents the total energy savings through activities undertaken for AGL.

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