Boral's sustainability priorities are integrated into our internally developed Boral Sustainability Diagnostic Tool (BSDT). The BSDT comprises 20 elements which represent what is important to meet our commitment to sustainable development. The elements are outlined below. The first seven focus on "Sustainability Management" while the remaining 13 are considered to represent Boral's sustainability performance priorities. The listed goals/targets for each sustainability priority are a selection of a broader number of performance requirements to achieve Industry Best Practice, as well as Boral’s policies and Values.

More about the BSDT
BSDT performance assessments against each element are undertaken across Boral's businesses every two years, with performance graded Level 1 (Compliance/Reactive), Level 2 (Proactive), Level 3 (Industry Best Practice) or Level 4 (World's Best Practice). The assessment process is used to set improvement targets and monitor progress. Our aim is to reach and sustain a standard of Industry Best Practice (Level 3) across our businesses and for each element.

Developed in 2000/01 in conjunction with a specialist consultant, the BSDT has been refined on a biennial basis to reflect developments in sustainability principles. During 2008/09, the criteria for each performance level were independently verified by Net Balance to ensure alignment with best practice. The latest assessments were undertaken in 2009. A total of 49 businesses were assessed across Boral. An assurance statement was issued by Net Balance for 41 Australian operations reviewed. The BSDT scores for each element below are for Australian and US businesses only. The BSDT was progressively introduced into Asia from 2005, with the current BSDT score for Asia 1.8, up from 1.6 in 2007.

Key to BSDT charts
Sustainability Management Human Resources EnvironmentMarketplace & Supply Chain Social Responsibility
  Our goals/targets Examples of our performance in FY2009 BSDT score
Sustainability Management
Scope of committment Measurable sustainability targets for all aspects of the business are incorporated into business plans

Managers are personally involved in sustainability initiatives		 Strengthened divisional strategic environmental plans

Sustainability focus at annual senior management conference

More business managers involved in sustainability initiatives		 Current BSDT score
Management Systems -
Quality, Environmental,
Health and Safety		 Stakeholder input is used in the assessment of the effectiveness of management systems

All management systems undergo regular independent review		 Council and community representatives involved in air quality monitoring at Berrima cement works

Third party review in accordance with ISO 14001 of Australian Construction Material’s environmental management system		 Current BSDT score
Accountability and
performance		 Managers' performance assessments and reward systems are linked with sustainability objectives Sustainability objectives linked to incentives and reward systems including safety (refer to Remuneration Report) Current BSDT score
Budgeting and financial Business plans, budgets and reports include substantial detail on sustainability performance Comprehensive modelling of CPRS and related impacts

Retained investment in independent assurance of sustainability report, BSDT program and community partnerships		 Current BSDT score
Risk Management
- new business and/or development, plant and equipment		 All products and services are analysed for long-term impacts and decisions taken on precautionary principle approach

Sustainability risks and outcomes are considered in new business and/or plant and equipment decisions		 Sustainability risk assessments integrated into planning process Resources allocated to product lifecycle assessment work

Sustainability focus in capital works programs (eg Terre Haute brick plant in USA and Pinkenba plasterboard plant in Queensland)		 Current BSDT score
Compliance review
and reporting (CRR) 		Sustainability performance is regularly reported externally

CRR is integrated with performance management and business planning systems		 2009 Sustainability Report; participant in Carbon Disclosure Project, Corporate Responsibility Index, FTSE4Good and DJSI Completed internal trial of NGERS reporting Current BSDT score
Continuous improvement Plans and processes are reviewed regularly to incorporate new technologies and best practice

R&D strategy includes a sustainability focus		 Internal innovation forum to share learnings and strengthen development of sustainable products

New products developed include: Enviro™ plasterboard, PACT by BMTI, and solar capacity roofing system in US Tile		 Current BSDT score
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Human Resources
Health, safety and wellbeing Zero fatalities

At least 25% improvement in LTIFR and % hours lost for employees and contractors over average for prior three years		 One employee fatality in Indonesia

Employee LTIFR of 1.8 and contractor LTIFR of 2.4, down 36% and down 58% on past three year average, respectively		 Current BSDT score
Employees and labour relations To have the best people in our industries

To maximise workforce satisfaction, productivity and retention		 92% of employees moderately or highly engaged, up 1%

Maintained EOWA Employer of Choice for Women status

Employee turnover of 24%1 consistent with last year		 Current BSDT score
Communications awareness and training Provide our people with appropriate training and knowledge on sustainability and business issues to deliver on our objectives 1,691 employees trained through Boral’s global learning programs, including Leading Health & Safety program; supplemented by safety, environment, trade practices, ethics and compliance training Current BSDT score
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Environment
Energy conservation and climate change Reduce emissions per unit and offset Boral's increase in absolute emissions as a result of market demand growth CO2 emissions down 8%2 to 3.62 million tonnes, largely due to lower production, especially in the USA Current BSDT score
Water conservation,
extraction and protection		 Reduce reliance on mains water and overall water consumption

Undertake strategic and operational risk assessments of the operational impacts on water systems		 Mains water use down 22%3 on last year to 2,285 million litres

Water management plans and targets in place for key sites		 Current BSDT score
Waste and resource management, recycling and re-use Minimise waste from our operations and increase waste re-used and recycled Re-used or recycled between 38% and 114% of Boral's operations' production waste

Estimated 4.62 million tonnes of waste and by-products recycled or re-used, down 17% on 2007/08		 Current BSDT score
Land protection, remediation and rehabilitation Prevent land contamination through well developed management systems and remediate contaminated sites to international standards for the site purpose

Where possible, rehabilitation is part of ongoing resource extraction operations and completion plans incorporate development approval rehabilitation conditions		 Maturing of quarry end use activities; Deer Park quarry landfill operation now a waste business with landfill gas generation

Rehabilitation of former Prospect quarry to "Employment Lands"; innovative groundwater and stormwater management to reduce reliance on mains water supply for local golf club		 Current BSDT score
Environment and ecosystem protection Strive for continuous improvement in the efficient use of natural resources

Protect and, where possible, enhance biodiversity values at and around our facilities		 Annual divisional environmental strategic plans incorporate targets for reduction in energy, water and waste

18,720 trees/stems planted and 21,390 m2 weeded and regenerated through Living Green Projects

Narangba Quarry buffer lands used for 1,200 koala fodder trees		 Current BSDT score
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Marketplace and Supply Chain
Strategic sourcing
and supply chain		 Manage Boral's supply chain in a sustainable way including consideration of compliance, environment, health and safety, labour rights, innovation and cost Ongoing development and implementation of contractor management processes across businesses

Strategic sourcing delivered above target performance, particularly in the area of cost reductions and risk management		 Current BSDT score
Sales and marketing Provide customers with better value and service than our competitors

Consult and collaborate with customers in the development of sustainable products

Conduct lifecycle evaluations on core products and services		 Perception study of consumers and builders identified a need for Boral to better communicate successful initiatives

Supplied bricks into Perth's first 8-star house and Envirocrete™, Enviro ™ plasterboard and Silkwood into Australia's first 9-star house

Participated in industry and internal lifecycle work		 Current BSDT score
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Social Responsibility
Community relations
and engagement		 Maintain support and goodwill of communities through constructive engagement on relevant issues

Make a meaningful contribution to the social and economic well-being of our communities while providing value through support of business objectives and community relations		 Formal community consultation at key operational sites

$569,853 invested in eight key community programs including the Red Cross, plus $600,422 to Juvenile Diabetes Research Foundation and the Red Cross through employee fundraising

483 volunteer days across 63 conservation projects		 Current BSDT score
Business ethics and
corporate governance		 Boral companies and employees must observe both the letter and the spirit of the law and adhere to high standards of business conduct and strive for best practice 66 employees dismissed for serious breach of policy

616 Australian staff undertook online Trade Practices Act training and 460 attended face to face training; 107 US employees completed Ethics and Compliance online training and 505 attended Code of Conduct and antitrust training

Remuneration Review to align with best practice		 Current BSDT score
External relations
and communications		 Understand and consider stakeholders' views on Boral's sustainability priorities and performance

Engage in policy shaping on sustainability issues

Provide reliable sustainability information to our stakeholders		 Stakeholder feedback used to improve this Report

Government submissions and dialogue around emissions trading and NGERS reporting

Participated in the Carbon Disclosure Project (CDP7)		 Current BSDT score
1 Restated to reflect new reporting methodologies, enhanced data collection and review processes.
2 Boral’s waste recycled/re-used represents a range across Boral’s products.
3 Comprises reserves which are licensed for extraction and economically recoverable, with geological certainty in the proven and probable category.
4 Typically, "years of reserves" are calculated based on current production rates; however, for the USA this number has been calculated based
    on longer-term average production rates, given the current significant downturn in demand.
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Sustainability Data Table
For the year ended 30 June
  20091 2008 2007
Boral's sites
Operating sites 706 718 707
Total sites 854 867 851
Operating countries 13 12 11
 
Human Resources
People and safety
Employees, FTEs 14,766 15,928 16,194
Contractors, FTEs ~5,700 ~7,000 —
Joint venture employees ~3,000 ~3,400 ~3,500
Employee LTIFR, per million hours worked 1.8 2.5 2.8
Contractor LTIFR, per million hours worked 2.4 5.7 5.7
Employee hours lost, % 0.06 0.08 0.09
Contractor hours lost, % 0.03 0.09 0.09
 
Environment
Greenhouse gas emissions
CO2, tonnes (millions) 3.62 3.94¹ 3.93¹
Equity share of JV CO2, tonnes (millions) 0.18 0.20 0.19
 
Energy consumed
Coal, tonnes (‘000) 282.72 283.67 273.95
Natural gas, petajoules 10.53 13.20 14.31
Electricity, GWh 704.35 830.12 795.20
Diesel, litres (millions) 155.99 162.23 156.90
LPG, litres (millions) 13.07 4.72 5.15
Petrol, litres (millions) 6.85 8.44 9.31
Alternative fuels, petajoules 2.09 1.79 2.16
 
Water consumption
Mains water, litres (millions) 2,285.06 2,819.80 2,932.49
River water, litres (millions) 161.03 308.34 306.41
Surface water, litres (millions) 2,935.82 2,866.52 349.46
Ground/bore water, litres (millions) 604.58 791.93 130.04
 
Waste
Waste product produced, tonnes (‘000) 1,001.85 1,372.21 977.06
Waste recycled/re-used2, % 38 - 114 43 -100 33 - 100
External waste used, tonnes (‘000) 3,805.18 4,322.91 2,298.74
 
Social responsibility
Community investment
Community investment in eight key partnerships (total cash and materials) $569,853 $591,500 $594,280
Employee fundraising $600,422 $443,000 $336,000
 
 Boral Reserves³
For the year ended 30 June 2009
Million tonnes Years of reserves4
Hard rock, sand and gravel    
Australia 1,131 38
USA 98 36
Asia 66 38
Limestone and shale    
Australia 101 25
Clay    
Australia 96 45
USA 110 35
 
NOTE: Data is for Boral Limited and 100% owned and controlled subsidiaries, unless otherwise stated.
1 Restated to reflect new reporting methodologies, enhanced data collection and review processes.
2 Boral’s waste recycled/re-used represents a range across Boral’s products.
3 Comprises reserves which are licensed for extraction and economically recoverable, with geological certainty in the proven and probable category.
4 Typically, "years of reserves" are calculated based on current production rates; however, for the USA this number has been calculated based
    on longer-term average production rates, given the current significant downturn in demand.
 
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