Sustainability governance

The Board Zero Harm (ZH) Committee has oversight of sustainability-related risks and opportunities. 

The Committee assists the Downer Board in its oversight of Downer’s compliance with its health, safety, environment, climate change and sustainability commitments. The committee oversees the development and implementation of relevant management systems, and monitoring of performance including climate change and sustainability. The effectiveness of these systems is monitored through internal and third-party audit programs. 

Briefing papers and performance reports are provided to the ZH Committee each quarter. Meetings are attended by the Chief Sustainability Officer and Group General Manager of Environment, Sustainability and Reporting to discuss sustainability and climate-related information, strategy, greenhouse gas emissions performance, and management response. Decision-making and endorsements provided by the ZH Committee include:

• Review and sign off of the annual Sustainability Report and climate reporting which includes Downer’s sustainability performance data
• Participation in, and validation of, Downer’s materiality assessment results which inform our sustainability strategy, response to material sustainability risks and opportunities, and upcoming reporting and disclosures
• Approval of Group-wide targets and commitments (such as diversity and greenhouse gas emissions targets).

Downer's Audit and Risk Committee (ARC) and Tender Risk Evaluation Committee (TREC) are responsible for providing oversight of Downer’s risk profile, policies and management, and external reporting. The TREC is responsible for risk management in tender and execution of contracts. The ARC is responsible for ensuring that the Executive Leadership Team has implemented a structured and comprehensive risk management system across Downer. In line with this, the ARC Charter explicitly addresses risks including operational, environmental, sustainability, climate-related change, compliance, strategic, ethical conduct, reputation or brand, technological, product or service quality, and human capital. Formal updates to the ARC occur on a bi-monthly basis.

Sustainability targets

Growing and enhancing sustainability performance is part of Downer’s Short-Term Incentive program and remuneration framework for Downer Executives, which emphasises our commitment to customers, employees, regulators and communities. Our Board sets robust performance targets, which are supported by the Short-Term Incentive program. 

For safety, health and wellbeing, these targets are:

• Zero fatalities
• Lost time injury frequency rate (LTIFR) of less than or equal to 0.90
• Total injury frequency rate (TRIFR) of less than or equal to 3.50

Other performance requirements and metrics will also be decided in collaboration with our customers and delivery partners to meet specific project arrangements and programs. These are captured in our safety management plans, and through our project delivery methodologies.

For environment, the performance targets are:

• Zero environmental prosecutions,
• Zero Level 5  or Level 6 environmental incidents (A Level 5 environmental incident is defined as any incident that causes significant impact or serious harm on the environment, where material harm has occurred and if costs in aggregate exceed $50,000.  A Level 6 environmental incident is defined as an incident that results in catastrophic widespread impact on the environment, resulting in irreversible damage.)
• Zero significant environmental incidents (A significant environmental incident or significant environmental spill, greater than Level 4, is any environmental incident or spill where there is significant impact on or material harm to the environment; or an incident or spill that results in a significant impact or material harm; or there is long-term community irritation leading to disruptive actions and requiring continual management attention).

Downer has also committed to emission reduction targets which are tracked and internally reported on a monthly basis. In addition, Downer’s Sustainability Linked Loan Key Performance Indicators include greenhouse gas emissions reductions targets and social sustainability measures of Indigenous Cultural Awareness and Mental Health First Aid training.