About This Report

This report describes the progress made by AWE over the course of the 2011-12 financial year in the key performance areas of Our People, Health and Safety, Community and Environment. In addition, we have introduced information regarding the Material Issues facing the Company in 2012, a description of the Key Assets owned by the Company and a new Economic Performance section.

AWE has again retained Ernst & Young for the provision of independent assurance over selected aspects of our sustainability processes and performance.

Why report on sustainability?

Sustainability is a key driver of business performance with longer term financial implications. Many stakeholders, including investors, are increasingly interested in sustainability performance and are seeking further clarity on the approach of businesses to sustainability issues. At AWE we are committed to continually assessing and developing our sustainability management framework to ensure it remains relevant to our stakeholders and continues to address the material areas of our business.

AWE launched its first sustainability report in 2008 and we are now in our fifth year of reporting on sustainability performance. We have published this report as a supplemental document to our annual report with a focus on our people, health and safety, community, environment and our economic performance.

Addressing Materiality

As AWE, and the society in which we operate, changes and evolves it is important to assess and review sustainability issues that have the potential to impact the Company’s performance. To identify which issues are most material to AWE, we have reviewed and evaluated internal and external information from a variety of sources including:

• Consultation with community stakeholders
• Feedback from our stakeholders regarding the 2011 Sustainability Report
• Benchmarking of key metrics reported by our competitors
• Media coverage of key issues and risks for AWE and the oil and gas industry

Material Issues in 2012

The materiality assessment process has identified four key issues that have the potential to negatively impact our business if not addressed in a timely and responsible manner:

• Ensuring that business practices remain ethical and comply with local and international laws
• Engaging with local communities, particularly with regard to managing issues related to hydraulic fracture stimulation activities in the North Perth Basin and the associated relationships with land owners and local communities
• Managing relationships with joint venture partners to ensure project delivery and the joint management of risks
• Maintaining high standards of regulatory and environmental management and reporting. Read more...