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Chemicals, Energy & Fertilisers

Wesfarmers Chemicals, Energy & Fertilisers (WesCEF) operates chemicals, energy and fertiliser businesses that service Australian and overseas markets.

We have operations in Australia across 30 locations and employ around 1,200 people. Our revenue this year was $1.8 billion. 

Material issues

Our business focuses on the following key areas to improve our sustainability:

  • Safety
  • Meeting customer needs
  • Community contribution
  • Operating responsibly
  • Environmental stewardship
  • Capability and diversity

Continual improvement in operating our businesses safely

This year, we had 20 recordable injuries, compared to 17 last year. As a result, the total recordable injury frequency rate increased by 23 per cent to 6.5 (following a 45 and 26 per cent reduction in the previous two years), and lost time injury frequency rate increased by 39 per cent to 2.6 (after a 45 and 34 per cent reduction in the previous two years). The overall injury trend remains downwards over the past five years.

A positive safety improvement has been a 38 per cent reduction in the number of significant incidents (events with high potential for serious injury) compared with the previous year.      

Despite the number of vehicle incidents in Kleenheat more than halving over the past year, the number of injuries within the Kleenheat driver group still remains disproportionately high. We continue to focus on safety, and the Safe Person program (with a focus on safety leadership, behaviours and accountability) commenced in Kleenheat, which is expected to deliver further improvements in safety performance.

We are also implementing innovative ways to control risk and reduce cost, such as the use of drones and robots to conduct equipment inspections in high hazard locations.

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Safety performance

6.5

total recordable injury frequency rate
2016   6.5
2015   5.31
2014   9.5
2013   13.0
2012   17.1
1Last year's TRIFR has been restated due to maturation of data

Meeting our customers' needs

Security of supply of ammonia and ammonium nitrate is critical for CSBP’s chemical customers to ensure their operations can continue. CSBP’s focus on the availability of its plants to provide both certainty of supply to its customers and maximise operational efficiency continues to be effective, with each of its nitric acid plants achieving an availability of greater than 96 per cent during the year.

CSBP’s latest online precision agriculture tool, FERTview, is helping farming customers save time and boost crop yields through better farm management. FERTview complements CSBP’s Sampling Pro app and web portal, myCSBP, by enabling spatial data to be viewed on Google Maps. This gives customers greater visibility and control of data gleaned from soil samples which is mapped alongside satellite imagery of their farms.

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Supporting the communities in which we operate

During the year we provided support to a range of community organisations to the value of $315,196. This support included sponsorships of the Clontarf Foundation and the WACA Regional Junior Cricket program. We also supported our employees in their participation in the Perth City to Surf fun run, Movember in support of men’s health, and Purple Bra Day to raise funds for Breast Cancer Care WA.

In October 2015, WesCEF embarked on a project to determine how the business could help promote the school study of STEM subjects (science, technology, engineering and maths) to progress the prosperity of Western Australians and positively impact gender equality by normalising STEM careers for women.

Community contributions

315,196

$
Direct
2016   307,674
2015   431,469
2014   499,692
2013   510,000
2012   490,000
Indirect
2016   7,522
2015   33,640
2014   29,642
2013   30,000
2012   0

Continued focus on operating responsibly

WesCEF continued its focus on regulatory compliance throughout the year, building on its already strong compliance processes and internal reporting culture.

During the year, there were 31 occasions when environmental, occupational health and safety, security or process safety regulatory requirements were not fully met. None of these recorded events resulted in any material environmental harm, injury, prosecution or fine. See here for additional detail on these events.

Training was conducted on key governance policies including Competition and Consumer Law, continuous disclosure and diversity and equality. Governance awareness in WesCEF was enhanced through the introduction of ‘Policy of the Month’, where key policies are discussed at team meetings across WesCEF.

WesCEF’s supplier pre-qualification process was enhanced through the introduction of an upgraded supplier pre-qualification questionnaire. Through this, nominated major suppliers and contractors are required to report on their policies and practices in the areas of environment, safety, Aboriginal engagement, industrial relations and quality, as well as a requirement to comply with WesCEF’s Code of Conduct.

Environmental stewardship

Scope 1 and 2 greenhouse gas emissions increased by 6.3 per cent compared to last year as a result of increased operating hours across the plants. The performance of the nitrous oxide abatement technology installed in CSBP’s nitric acid plants continues to minimise greenhouse gas emissions.  An average 90 per cent total nitrous oxide abatement was achieved during the year, which equates to a reduction of 1,220,422 tonnes of CO2-e (carbon dioxide equivalent).

WesCEF, through membership of the Kwinana Industries Council, supports a commitment to providing funding for Phase 2 of the CSIRO-led Western Trade Coast recycled wastewater managed aquifer recharge (MAR) project, which is studying the potential for infiltrating treated effluent which meets specified criteria into the groundwater. If successful, the project will help to restore wetlands in the Swan Coastal Plain affected by reducing groundwater levels, as well as providing an additional sustainable industrial water resource.

Greenhouse gas emissions

809

tonnes CO2e: '000
2016   809
2015   761
2014   826
2013   874
2012   1,494

Diversity and capability of our workforce

WesCEF continues to focus on building gender diversity and Indigenous employment opportunities through traineeships, apprenticeships and leadership programs to develop technical, financial and leadership skills.

During the year, we introduced a ‘flexibility for men’ 12 month trial, encouraging men to work part-time or to job share in order to normalise flexibility and to facilitate more women to participate in the workforce. We are also continuing to focus on increasing the representation of women by managing our recruitment processes and offering flexible work arrangements.

WesCEF continues to grow Indigenous employment opportunities through the provision of direct employment opportunities, apprenticeships, traineeships, school based traineeships and community based placements. This year our Indigenous employees increased from 1.3 to 1.7 per cent of our total headcount. These opportunities are supported by mentoring and customised support, continued development of cultural awareness and building of relationships with the local Indigenous community, through the Clontarf Foundation and Moorditj Koort Aboriginal Wellness Centre.

2016-17 priorities

Safety

  • Continue the year-on-year improvements in safety performance using the Safe Person, Safe Process, Safe Place philosophy and continue to engage the workforce on safety culture.

Community contribution

  • Refocus strategy to achieve a stronger connection between our community investment and our businesses.

Operating responsibly

  • Increase the focus on sustainable supply processes.
  • Continue to ensure leadership capability to manage governance and compliance risk by training in Competition and Consumer Law; anti-bribery; human resources and health, safety and environment legislation; and continuous disclosure.
  • Maintain relationships with key regulators and industry associations to facilitate input into legislation, guidelines and industry best practice.

Environmental stewardship

  • Support water security issues associated with climate change and implement actions identified in business water efficiency management plans.
  • Manage risk of legacy waste from our historical operations.
  • Implement water quality controls to continually improve the quality of discharged stormwater.

Capability and diversity

  • Continue to increase the representation of women in our business and opportunities for Aboriginal people.
  • Build capability in delivering innovation and a culture of collaboration.