2009 Orica Sustainability Report

Sustainability Report 2009

Registered Office: 1 Nicholson Street, East Melbourne, Victoria, Australia 3002

Telephone: +61 3 9665 7111

Facsimile: +61 3 9665 7937

Email: [email protected]

ABN 24 004 145 868

Table of Contents Our Approach

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

CEO Message . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Sustainability Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

SH&E Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Our Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Key Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Targets & Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Ten Priority Actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Stakeholder Engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Recognition & Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Our Approach to Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . .

24

Governance

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Leadership & Accountability . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Organisational Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Management Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

SH&E Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Incident Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Due Diligence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Code of Conduct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

46

2009 Case Studies

2009 Case Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

48

Product Stewardship

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Our Performance in 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

Working with Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Industry Partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

57

Product Stewardship Case Studies

Dulux’s Sustainable Products . . . . . . . . . . . . . . . . . . . . . . . . . . 60

Chemicals Duty of Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

Waste Paint Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

Latin America Wins Award . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

Minova Reduces Waste . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

Recycling Packaging at OMS . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

Dulux Wins Supplier Award . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

Reusing Packaging at Yarwun . . . . . . . . . . . . . . . . . . . . . . . . . . 70

A Power Coated Promise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

Safety & Health

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73


Injuries & Illnesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

Learning Incidents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

Process Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

Product Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

Occupational Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

Hygiene Monitoring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

Travel Safety & Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

86

Safety & Health Case Studies

One Million Hours Injury Free . . . . . . . . . . . . . . . . . . . . . . . . . . 87

SH&E Focus Day at Lae . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

Keeping Safety Top of Mind . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

Rocklea Rocket Reduces Risk . . . . . . . . . . . . . . . . . . . . . . . . . . 90

Driver Training in Argentina . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

Selleys Cuts Manual Handling. . . . . . . . . . . . . . . . . . . . . . . . . . . 93

0-5-30 Wellness Programme . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

The 10,000 Steps Challenge . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

Blasting by Remote Control . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

Fire Safety in Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

Melbourne Safety Conference . . . . . . . . . . . . . . . . . . . . . . . . . . 98

Environmental Sustainability

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99


Losses of Containment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102

Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

Environmental Management . . . . . . . . . . . . . . . . . . . . . . . . . . 104

Legacy Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

Energy & Greenhouse Gases . . . . . . . . . . . . . . . . . . . . . . . . . . . 106

Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110

Waste . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112

Sustainability Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115

Green Office & Resource Hunt . . . . . . . . . . . . . . . . . . . . . . . . . 116

Chemical Releases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

117

Environmental Sustainability Case Studies

Abatement in the Philippines . . . . . . . . . . . . . . . . . . . . . . . . . . . 120

OMS India’s IMS Certification . . . . . . . . . . . . . . . . . . . . . . . . . . 121

Dulux NZ’s ISO Certification . . . . . . . . . . . . . . . . . . . . . . . . . . . 123

Spring Cleaning at Yarwun . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124

The Beaver Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125

AcraTex’s Green Challenge . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126

Introducing Moss the Kiwi . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129

Saving More Than Steam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130

Padstow’s Clean Up Milestone . . . . . . . . . . . . . . . . . . . . . . . . . . 131

MIEX’s Maine System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132

More Heat for Minova . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133

Turning Trash Into Treasure . . . . . . . . . . . . . . . . . . . . . . . . . . . 134

Gracefield’s Garden . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135

Laverton’s Significant Savings . . . . . . . . . . . . . . . . . . . . . . . . . . 136

Our New Eco Warriors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137

Energy Efficiency at KI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138

Alkali Tank Farm Completion . . . . . . . . . . . . . . . . . . . . . . . . . . 140

Smarties at Head Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141

People & Community

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

142

Our People

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143

Labour Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144

Human Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146

Our People in 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

147

Community

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149


Community Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151

Community Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152

Distribution Incidents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153

Emergency Response Service . . . . . . . . . . . . . . . . . . . . . . . . . . 154

Community Complaints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

156

People & Community Case Studies

Helping Habitat for Humanity . . . . . . . . . . . . . . . . . . . . . . . . . . 157

Batann’s Coastal Clean Up . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158

Our Community in India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159

Oxfam Biggest Coffee Break . . . . . . . . . . . . . . . . . . . . . . . . . . . 160

Gracefield’s Beach Day . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162

Our Values in Venezuela . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164

Chile’s Community Ties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165

Yates Launches Kids Website . . . . . . . . . . . . . . . . . . . . . . . . . . 166

Sharing Deliver the Promise . . . . . . . . . . . . . . . . . . . . . . . . . . . 167

Global Graduate Programme . . . . . . . . . . . . . . . . . . . . . . . . . . . 168

Our Women in Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170

Meet Orica’s Oldest Employee . . . . . . . . . . . . . . . . . . . . . . . . . . 171

The Watermelon Challenge . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172

Employees Run For Home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174

Sweet Deal for Locomotives . . . . . . . . . . . . . . . . . . . . . . . . . . . 175

ERS Takes 25,000th Call . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176

Economy

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177

Our Performance in 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178

Climate Change Implications . . . . . . . . . . . . . . . . . . . . . . . . . . . 180

Global Reporting Initiative (GRI) Index

GRI Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182

Download Reports

Download Reports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188

Feedback

Feedback . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189

Orica 2009 Sustainability Report

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Overview Welcome to Orica's 2009 Sustainability Report. Our Sustainability Report aims to provide an overall picture of our safety, health and environment (SH&E) and sustainability performance during the reporting period.

At Orica, SH&E and sustainability is embedded in our organizational culture. Our performance-based culture programme is called "Deliver the Promise" (DTP) and is driven by personal accountability for delivering results.

DTP is defined by four key principles that guide how we act and behave:

Safety, Health and Environment - Ensuring Our Future

• No injuries to anyone, ever • Value people and the environment

Working Together

• Success as a team and success as an individual

Commercial Ownership

• Run the business as if its your own

Creative Customer Solutions

• Think differently, deliver swiftly and capture the value

DTP means that we hold true to our commitments to customers, shareholders, the communities in which we operate and each other. We aim to always keep learning from others, challenging ourselves and striving to have a positive impact on our customers, our colleagues and our stakeholders.

We believe that DTP encourages a truly holistic, sustainable approach to considering our organisation's risks and opportunities with regards to our people, profit and planet.

We value your feedback on this Report.


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CEO Message

Welcome to Orica's Sustainability Report. The Report outlines Orica's approach to and vision for sustainability, and details our achievements against key performance targets for 2009.

Orica aims to be a business that does no harm to people and the environment. We have operations in around 50 countries, and many of them are resource intensive. The industries in which we work face a range of sustainability challenges but also many opportunities to make a great deal of positive difference. Making such a difference is integral to our success as a business.

For many years now Orica employees around the world have collectively worked towards our "Deliver the Promise" principles, which are: commercial ownership; creative customer solutions; working together; and valuing people and the environment. At the core of these principles is a commitment to do the very best for our colleagues, customers, shareholders and the many communities in which we work around the globe.

Workplace health and safety, environmental protection, resource efficiency and product safety are areas in which we seek to excel and continuously improve. They are also key opportunities for market differentiation as our efforts, and the benefits to our customers, are recognized.

We have had some encouraging successes, and disappointing failures with respect to our Challenge 2010 safety, health and environmental (SH&E) performance milestones in 2009.

It is with regret that I report four fatalities to employees, each in separate incidents in different parts of the world in October and November 2008. Each fatality has been fully investigated and lessons learned have been shared across the organisation. We remain fully committed to our goal of No Injuries to Anyone, Ever and will continue to review and improve our approach to safety across our organisation.

Climate change is a serious global issue that is now considered in our business risk and planning processes. Following on from last year's successful project at our Carseland operation in Canada, this year we implemented an emissions abatement program at our nitric acid plant in Bacong, the Philippines. The project was implemented under the Kyoto Protocol's Clean Development Mechanism (defined in article 12 of the Kyoto Protocol). These activities, along with a range of other efficiency initiatives, will significantly reduce our overall greenhouse gas emissions.

Next year will mark the end of our Challenge 2010 SH&E performance milestones and we are now planning our commitments and targets beyond 2010.

We will also continue to progress our Ten Priority Actions that will help towards our aspiration of no harm to people and the environment. This approach targets our efforts at our major sustainability impacts including: energy consumption; greenhouse gas emissions; water consumption; and waste generation.

I hope you enjoy reading Orica's 2009 Sustainability Report.

Graeme Liebelt

Managing Director and CEO


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Sustainability Vision

Orica aims to meet the needs of our customers and the community in a sustainable manner, for the benefit of society and without compromising the quality of life of future generations.

We seek to be among the best sustainability performers internationally, consistent with our Deliver the Promise principles of commercial ownership, creative customer solutions, working together and valuing people and the environment.

We aspire to become a business that does no harm to people and the environment. Our sustainability vision is underpinned by our SH&E Policy commitments to:

• Value people and the environment; and to achieve • No injuries to anyone, ever.

Going forward, we further aim to be:

Carbon neutral - no net generation of greenhouse gases to the atmosphere;

Water neutral - no net consumption of potable water;

Zero waste - no net generation of waste to landfill and requires innovative ways to prevent, reduce, reuse and recycle by-product streams; and

Environmentally friendly operations, products and services - that have no unintended consequences to the environment and the community

... in a commercially responsible way.


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SH&E Policy At Orica we believe that all work related injuries, illnesses and environmental incidents are preventable.

We will manage all our activities with concern for people and the environment and will conduct our business for the benefit of society and without compromising the quality of life of future generations. In particular we will:

• Strive to ensure our facilities operate to the highest standards to protect our employees, contractors, neighbours and the environment.

• Continue to seek ways to efficiently use materials and energy. • Sell only those products that can be produced, transported, stored, used and disposed of safely. • Provide appropriate information and/or training on the safe use and disposal of our products to our

customers and consumers. • Seek to develop new or improved products and processes to improve the contribution we make to

the quality of people's lives and to minimise the impact on the environment. • Require every employee and contractor working for us to comply with relevant legislation and with

this policy and we will provide them with the necessary training. • Encourage employee initiatives that contribute to a safer and improved environment at work, at

home and in the community. • Set challenging targets and measure progress to ensure we continuously improve our safety, health

and environmental performance. • Communicate openly about our activities and report progress on our safety, health and

environmental performance.

We make this commitment to our employees, contractors, customers, shareholders and the community as we work towards our vision of:

"No Injuries to Anyone, Ever" "Value People and the Environment"

Graeme Liebelt Managing Director and Chief Executive Officer


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Our Strategy Orica's strategy for meeting our safety, health and environmental commitments and for achieving our no harm sustainability vision is to have in place:

• Equipment and materials that are designed and maintained fit for purpose; • Well communicated principles and behaviours that promote continuous SH&E and sustainability

performance improvement through leadership and personal responsibility; and • A management system that describes systems of work that ensure the integrity of equipment and

materials and people-based control measures is sustained.

Central to Orica's strategy is that:

• SH&E is a line management responsibility. Ownership and accountability for SH&E performance is embedded in the line supervisory and management at all levels;

• There is a consistent risk-based approach to SH&E management. Resources are allocated and activities prioritised on the basis of risk, with particular focus on high severity - low probability events; and

• Appropriate training is in place to equip all personnel to carry out their tasks so as to take care of themselves and others.

The Orica Group Executive and the Corporate SH&E Manager provide SH&E leadership. The Group Executive is a forum for strategy development as well as for SH&E governance of the Company. The Corporate SH&E Manager, Business SH&E Managers and site SH&E personnel provide advice and support to the line managers. The Orica SH&E Managers' Team ensures the most effective use of resources by sharing best practice and standardising, streamlining and coordinating SH&E activities across the Company and its subsidiaries.

Elements of Our Strategy

Our Public Commitments

Our commitment to sustainable development is underpinned by our public commitment to key initiatives and processes that drive best practice. Externally, we recognise and support:

• Plastics and Chemicals Industry Association (PACIA) and the International Chemical Council Responsible Care® Programme;

• PACIA's Sustainability Leadership Framework; • International Cyanide Management Code; • Security Sensitive Ammonium Nitrate (SSAN) Principles; and • ISO 14001 Management Systems.

We do not supply our explosives products to the munitions industry.

Our external and internal commitments are underpinned by our SH&E and sustainability governance approach.

Plant Equipment and Materials

Orica's plant and equipment will be designed, constructed and operated to provide and maintain the engineering integrity and inherent safety required to minimise workplace SH&E risks. To achieve this we:

• Use hazard identification, risk assessment and critical (HIRACTM) management techniques in design and construction and in operation;

• Apply local and international standards as well as meeting statutory requirements; • Sustain integrity by effective preventative maintenance systems and modification procedures; and


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• Identify critical systems and equipment and ensures their sustained integrity.

Our Basis of Safety programme helps our people understand significant process hazards, risks, relevant controls and their personal role in the application and maintenance of those controls. Orica uses raw materials to produce intermediates and products only if they can be handled safely. In particular, we meet our product stewardship responsibilities by:

• Specifying properties of raw materials and information to be supplied; • Ensuring product properties are controlled through strict quality assurance; • Undertaking product life cycle studies to ensure that SH&E risks are assessed and minimised as far

as practicable; • Using packaging, storage and transport fit for the purpose; and • Collating and making available appropriate information on the materials.

People and Our Behaviours

Orica seeks to foster a culture that promotes excellent SH&E performance through:

• Targeted selection and training of people to desired competencies; • Line management leadership; • Clear expectations for all employees and contractors; • Rigorous adherence to Company procedures; • Participation in SH&E performance improvement; • Promotion of SH&E awareness; • Personal responsibility and a prevention mindset; and • Encouraging SH&E awareness outside of the workplace.

Everybody is personally accountable for their own SH&E performance and for the SH&E performance of those whom they manage or supervise. In particular line managers are responsible and accountable for all aspects of SH&E in their operations and products. They are expected to demonstrate SH&E leadership at all times. It is a fundamental belief that all work-related injuries, illnesses and environmental incidents are preventable. Unsafe Acts Prevention (UAP) and supporting programmes for identifying and observing critical behaviours reinforce this message, raise hazard awareness and promote risk reduction.

Each year all employees or supervised contractors together with their line managers are expected to sign on to the Orica SH&E Charter. The Charter describes the Company's expectations and impact as much on the line managers or supervisors as on individuals and will be an integral part of all job performance assessments. The SH&E performance of employees will be a major factor in their performance assessment and advancement. The Company formally recognises outstanding SH&E performance by individuals and teams of people particularly with respect to the prevention of adverse SH&E incidents. The Orica SH&E Managers Team recognises outstanding SH&E improvement initiatives. Key Behaviours for Orica employees are:

• Take care of yourself and others; • Meet the needs of our customers and the community in an environmentally sustainable manner; and • Always aim to improve our SH&E performance.

Our Systems and Procedures

Our SH&E Management System has been developed to manage the interaction between people and the work environment and to ensure sustained compliance with legislative requirements, the 19 Orica Group SH&E Standards, the Responsible Care Codes of Practice and other external standards.

Performance Measures

We measure our SH&E performance and benchmark with the world's best companies and industry associations. Our Key Performance Indicators for SH&E and sustainability are:


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• All worker lost workday/recordable case rate; • Hygiene - performance sampling to plan (per cent) and samples less than exposure standard (per

cent); • Health assessment - performance to plan (per cent); • Number of site losses of containment category 2 and higher; • Number of distribution incidents category 2 and higher; • Number of justifiable public complaints/prosecutions; • Environmental licence non-compliance (per cent); • Energy consumption per tonne of production; • Total greenhouse gas emissions per tonne of production; • Water consumption per tonne of production; • Waste generation per tonne of production; • Sustainability Index; • Audit programmes completed; • Compliance with procedures/standards; and • Incident/audit actions overdue.

The Group Executive sets challenging short and long-term Company targets for the key performance indicators. At the site and operation level, measurement will also focus on positive performance measures including behavioural safety.

Performance Improvement

Each year Letters of Assurance are prepared by all operations and businesses declaring their compliance with the SH&E Policy and 19 SH&E Standards. The Orica Board reviews these Letters of Assurance, which draw from internal and external audit reports. The Letters of Assurance demonstrate due diligence has been exercised in SH&E management and they form the basis of SH&E improvement plans.

The SH&E Management System is continually developed to reflect learnings, newly identified good practices and external requirements. Local procedures and work instructions are updated. Particular focus is placed on:

• The attitudes and expectations of line managers and employees particularly with respect to adherence to procedures;

• The focus on risk-based activities and learning from significant events including those with no adverse outcomes; and

• Systematic SH&E training of all personnel.


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Key Challenges Our key SH&E and sustainability challenges describe our significant impacts in the broader context of global SH&E and sustainability trends.

Identifying Our Material Challenges

Our challenges are identified through the development of our SH&E policy and sustainability strategy, through the review of historical data trends and major opportunity identification at business and corporate levels. Our SH&E and sustainability challenges are considered material to our organization because they have the potential to impact on our business in the following ways:

1. Short-term financial impacts - resulting from aspects of social and environmental performance; 2. Policy-related performance - our SH&E Policy commits us to strategic sustainability-related activities; 3. Peer-based norms - the issues and aspects of performance are also deemed to be of material

importance to our peers; 4. Stakeholder behaviour and concerns - i.e. reasonable evidence of likely impact on their decisions

and behaviour; and 5. Societal norms - i.e. those aspects of social and environmental performance that are already

embedded in regulation and those that are likely to become regulated in the future.

Our SH&E and sustainability challenges are prioritized using our consistent, risk-based approach to business management, including SH&E risk. Our Model Procedures require "ongoing systematic identification, assessment and management of SH&E risks associated with the Company's activities, products and services".

Key SH&E and Sustainability Challenges Our key SH&E and sustainability challenges include:

• Safe Workplaces; • Transport and Driver Safety; • Health and Hygiene; • Serious Site Losses of Containment; • Environmental Licence Compliance; • Legacy Issues; • Engaging With Our Communities; • Resource Efficiency (including energy consumption, greenhouse gas emissions, water consumption

and waste generation); and • Product Stewardship.

We are progressively addressing these key challenges through our Challenge 2010 milestones, and our 10 Priority Actions.

Safe Workplaces Background We have made strong progress over recent years in reducing the numbers of injuries and illnesses amongst our workforce (comprising both employees and contractors). Our primary safety measure of the All Worker Recordable Case Rate (AWRCR) has decreased from 1.38 in 2000 to 0.69 in 2009. Despite this progress, four employees were fatally injured in 2009. The loss of our colleagues hangs heavily over our safety performance and is a constant reminder that even though our safety statistics are improving year by year, we have a long way to go to achieve our vision of no injuries to anyone, ever. Going Forward


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Preventing further fatalities and reducing the recordable case rate over the coming years will require considerable effort, with a focus on both occupational and operational safety. In addition to maintaining our current focus, we will have to target specific areas of concern such as manual handling, trips and falls, and hand injuries, which collectively account for 75 per cent of all injuries. It will be essential to continue our behavioural safety programmes and to put greater emphasis on Job Safety and Environment Risk Analysis (JSERA) and Job Cycle Checks (JCC). We must maintain our awareness and understanding of the risks associated with our activities, ensure the engineering integrity of our plant and equipment, and operate to the highest standards. This will require increased commitment to, and development of, Basis of Safety, Hazard Studies (project and periodic), audits, design review, and project management. In addition to the specific key performance milestones for fatalities and recordable cases, the Company will rigorously monitor and investigate all serious near misses and near hits (general learning incidents), including process safety related incidents, in order to maintain the focus on prevention of high consequence-low probability events (e.g. fatalities, fires/explosions) and reduce the numbers of such incidents occurring.

Transport and Driver Safety Background Orica transports many thousands of tonnes of dangerous and non-dangerous goods each year across all modes of transport. We are committed to ensuring no harm comes to the community, our drivers or the environment as part of the transportation and supply chain processes. Any distribution incident potentially impacts the community, causes business disruption, and can adversely affect the Company's public image. Consequently the design of our trucks, protocols for route assessment and our approach to the storage and handling of goods is critical in meeting our commitment to valuing people and the environment. Driving motor vehicles is one of the most significant risks faced by many of our employees and contractors. We aim to prevent accidents arising from the use of vehicles (including cars, vans, trucks, motor bikes, scooters and bicycles) by any employees or contractors who drive a Company owned or leased vehicle or drive a privately owned vehicle on company business on a regular basis. Our Model Procedure on Driver Safety stipulates a range of mandatory requirements including the provision and use of seat belts, driver safety training and the registration, licencing, insurance and road-worthiness of all Company vehicles. We aim to learn from, and implement robust procedures to avoid a repeat of, the serious incident we experienced in Mexico in 2007. Read more about this incident in our 2007 Sustainability Report. Going Forward We will strive for continuous improvement in driver safety, via ongoing promotion of voluntary driver safety education programmes and monitoring of driver safety performance (as Category 2+ motor vehicle incidents per million kilometres travelled). We will also endeavour to monitor average vehicle fuel efficiency, as driver safety literature supports a relationship between conservative driving behaviour (as indicated by lower fuel consumption) and reduced crash risk. This measure is also important in monitoring of greenhouse gas emissions from Company vehicles.

Health and Hygiene Background We have made considerable progress over the last decade in improving the integrity of our health assessment and occupational hygiene programmes. It is essential that this good work is reinforced in the coming years. Our businesses will be encouraged to maintain targeted health and wellbeing programmes relevant to employees and the locations in which they work. Going Forward As part of Challenge 2010, Orica developed and has applied across its global operations, uniform occupational exposure standards for priority hazardous chemical and physical agents to ensure that all workers receive the same high level of protection. These standards will be determined by reviewing best practice - with scientific validation as appropriate - and in some cases may be more demanding than those


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required by the countries where we do business. Priority will be given to agents with significant potential for carcinogenesis, sensitisation, neurotoxicity or adverse reproductive effects. In addition to the specific key performance milestones for health assessments and hygiene tests, the Company will monitor and track reliance on personal protective equipment (PPE) as a means of exposure control in order to work towards the objective of further understanding the level of dependence.

Serious Site Losses of Containment Background The number of serious on-site losses of containment involving our products has improved. However, there are still a high number of minor spills occurring across our operations and distribution centres. Losses of containment occurring during transport and distribution are reported as distribution incidents. Going Forward Achieving the Challenge 2010 milestones will require rigorous application of our SH&E systems and tools to identify and manage all risks under the Company’s control associated with both facility operation and distribution activities. It also needs to be recognised that in a number of distribution incidents there are some external environmental factors outside the Company’s control.

Environmental Licence Compliance Background Environmental licence compliance across the Company’s operations remains at greater than 99 per cent, however the level of non-compliance at a few sites remains unacceptably high. The clear expectation of regulatory authorities and the community is that our sites will fully comply with licence requirements. Going Forward Work will need to be undertaken at some sites over the next year to achieve our 2010 milestone of 100 per cent compliance. In addition to the specific key performance milestones for serious site losses of containment, distribution incidents, and licence non-compliances, we will continue to monitor and track the performance of the following measures of community safety, in order to work towards our objective of zero occurrences by 2010:

• Community Complaints (Category 1); • Fines (Category 2); • Prosecutions (Category 3); and • Product Incidents (Category 2).

Legacy Issues Background With over 130 years of operation, Orica maintains responsibility for a range of sites that were contaminated through the course of historical operations. These legacy issues have the potential to impact local groundwater and ecosystems and, in response to this risk, Orica is committed to meeting its legal obligations for land remediation and rehabilitation. Addressing legacy issues is challenging and takes time, however we are committed to cooperating with regulatory authorities and the community to achieve the required results. Going Forward The Company will continue to progress groundwater and land remediation programmes associated with the consequences of historical activities at a number of sites, ensuring that regulatory and community expectations are met. This includes maintaining the focus and commitment to completion of major works associated with the Botany site, particularly groundwater remediation and hexachlorobenzene waste destruction. We will also continue to advance the elimination and reduction of risks associated with


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underground storage of hazardous materials, in order to prevent future contamination. During the last five years underground storage of hazardous materials has been eliminated at most locations across the Company, however further work is required, particularly on elimination of highest risk storage tanks.

Engaging With Our Communities Background Many Orica sites are located near residential housing. We aim to maintain positive relationships with our local communities and are committed to mitigating the impacts of our operations on our neighbours, such as nuisance noise and odours, air pollution, soil and groundwater contamination and management of truck movements through residential areas. Increasingly, Orica businesses are operating in more remote regions globally. This presents new challenges for an organisation that, little over a decade ago, was primarily operating in Australasia and communicating in a single language – English. Today we have a presence in 47 countries and publish Company news in 13 different languages. It is critical that we succeed in promoting our core values to customers and employees in these regions, while remaining responsive to their concerns about the future of the environment and the communities in which they live. We see our social responsibilities as being complementary to our financial performance and a critical component of both our licence to operate in all regions of the world and our ability to attract and retain the best employees. Going Forward We will identify the emerging environmental trends in each region where we operate and find ways to successfully grow our business with less environmental impact. This includes upholding tough environmental standards and transferring new technologies that reduce impacts to developing parts of the world. We will continue to maintain and develop community relationships, particularly for major sites with neighbouring communities. This will typically comprise site community SH&E Reports, formal community relations plans, and informal safety outreach activities. Most major sites are expected to produce annual reports of their SH&E performance directed at their employees and the neighbouring communities. These are tailored to each particular sites situation and can take various forms (e.g. brochure, letter, advertisement in local newspaper, community calendar, etc). All major sites will develop and maintain community relations plans. These plans will give particular emphasis to sharing of information and involvement of the community in SH&E issues to improve the relationship between the Company and the community. All businesses, sites, and employees will be encouraged to participate in a variety of informal SH&E outreach activities. These activities may take the form of talks in schools, training programmes or demonstrations to customers, presentations to industry peers, and special SH&E programmes with family members or the general community (e.g. community clean up days, paint donations to community centres, rural youth driver safety sponsorship).

Resource Efficiency Background Energy Consumption In 2009 our operations consumed 17,162,000 gigajoules of energy, 2.5 per cent less than last year, with natural gas consumed for ammonia production accounting for the majority of this usage. Large energy users such as Orica will continue to receive increased scrutiny from regulators and the community as sustainability issues develop further in coming years. While we achieved a 12.7 per cent reduction in energy usage per tonne of production this year (compared to the 2004 baseline), achieving our Company target of 15 per cent reduction by 2010 will require a continued commitment. Greenhouse Gas Emissions In 2009 our operations emitted 3.1 million tones of carbon dioxide equivalent emissions, a reduction from 4.0 million tones in 2008, primarily due to nitrous oxide abatement technology at our Carseland site in Canada. Community and regulatory attention to emissions of greenhouse gases such as carbon dioxide and nitrous oxide will continue to intensify in coming years as concern about global warming is maintained and progress against the Kyoto Protocol reduction commitments are assessed. Per tonne of production we have


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reduced our nitrous oxide emissions by 41.7 per cent, our carbon dioxide by 27.2 per cent and our total carbon dioxide equivalent emissions by 37.2 per cent compared to the 2004 baseline. We are pleased to report that we have achieved our Challenge 2010 target of a 35 per cent reduction in total greenhouse gas emission per tonne of production for the first time in 2009. Water Consumption In 2009 our operations consumed 8.1 million kilolitres of water, 7.8 per cent less than last year. Pressures around consumption of water, particularly in Australia, will increase in coming years as the limitations around sustainable use of this precious resource continue to be understood and appreciated by the wider community. Our water consumption in 2009 was 2.16 kilolitres per tonne of production, representing a 32.2 per cent decrease compared to our 2004 baseline. This performance is again well ahead of our Challenge 2010 target of a 15 per cent reduction. Waste Generation In 2009 our operations generated 15,765 tonnes of solid waste, a 13.5 per cent decrease compared to last year. Some sites have made significant progress in reducing waste generation during recent years, however there is a need to continue efforts on a Company wide basis. Waste production for 2009 was 4.2 tonnes per tonne of production, which is 60.9 per cent below the 2004 baseline. This again places us well ahead of our 2010 milestone of a 50 per cent reduction and is consistent with community expectations, growing pressures on landfill facilities, and the principles of sustainability. Going Forward Sustainability Vision In addition to no injuries to anyone, ever, Orica aspires to become a business that does no harm to people and the environment. This means a transition to:

• Carbon-neutral - no net generation of greenhouse gas emissions to the atmosphere; • Water-neutral - no net consumption of potable water; • Zero-waste - no net generation of waste to landfill and innovative ways to prevent, reduce, reuse

and recycle by-product streams, and • Environmentally friendly operations - no unintended consequences to the environment and

community

...in a commercially responsible way.

Measurement Effective performance measurement of energy consumption, greenhouse gas emissions, water consumption, and waste generation across the Company requires consistent reporting by sites. Large sites representing more than 90 per cent of the Company's total consumption and emissions are required to report on a monthly basis, while all other sites are required to report every three months. The data is used in calculating and monitoring the Company's progress via our Sustainability Index (Value over Impact or V/I). Our Sustainability Index is a measure of the value we create, compared to the impacts that we have, and our 2004 baseline was set at 100. In 2009 our Sustainability Index was 329. Emission Standards We are assessing and reviewing environmental emission levels for priority chemical releases from our operations. The review considers best practice - with scientific validation as appropriate - to ensure that the environment receives a high level of protection throughout the Company’s operations across the globe. Priority will be given to new plants and targeting priority chemicals (e.g. carcinogens, greenhouse gases) at existing plants. Investment We have continued to make good progress in decreasing our impact on the environment and reducing our consumption of valuable resources such as energy and water. However, in order to continue the transformation towards a truly sustainable company, significant effort is required in the years ahead. Achieving these milestones will necessitate considerable expertise, and in some cases, investment in capital and/or technology enhancements. Such achievements are expected to be consistent with societal expectations and to ultimately provide opportunities for the future in developing sustainable businesses.


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Product Stewardship Background Product stewardship has been defined as a demonstrable process which places an ongoing responsibility on a company to monitor and manage the safety, health and environmental issues concerning its products and packaging. It is important that we take care to consider the SH&E and lifecycle impacts when developing products, introducing new formulations and packaging, and the provision of services. Our Product Stewardship approach involves looking at where the raw materials come from and stipulating conditions on the suppliers. During manufacture, storage, handling and transport it necessitates having SH&E management systems in place which protect our employees, our plant and equipment, the community and the environment from damage. And after products leave our direct control and are distributed, sold and used by our customers, it requires us to influence the use of the product and service delivery, right through to the eventual disposal. Going Forward Product stewardship remains an important focus for the Company over the next five years, supporting both community safety and sustainability improvements. A high level of compliance with the Company’s product stewardship index has been maintained over the last five years, and life cycle risk assessments have been completed for a number of major product groups.


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Targets & Performance Continuous improvement is driven through Orica's Challenge 2010 SH&E objectives and milestones, which were released in 2004. Challenge 2010 was designed to drive our performance towards achieving our SH&E Policy vision of no injuries to anyone, ever, and to value people and the environment. Challenge 2010 also supports and drives our performance towards achieving our sustainability vision of no harm to people and the environment.

Our SH&E Management System states that "SH&E objectives and targets, consistent with the Company's SH&E Policy, shall be developed and periodically reviewed for each relevant function and level within the organisation. The development and review of SH&E objectives and targets shall consider:

• Legal and other applicable requirements; • The Company's significant SH&E hazards and environmental aspects; • Recent audit findings and incidents; • Technological options for improvement; • Financial, operational and business requirements; and • The views of interested parties."

Orica sites communicate their performance against the Challenge 2010 objectives and milestones on a monthly basis. This information is aggregated centrally and available to all sites on the Company intranet.

Below is a summary of our progress against our Challenge 2010 targets for:

• Safety and Health; • Community Safety; and • Environment (also known as Resource and Operational Sustainability).

Target exceeded or

ahead of schedule

Target achieved or

on track

Target behind schedule

Safety and Health Elements

Challenge 2010 Target 2009 Status

2009 Performance

No worker fatalities

All worker fatalities: 0

4 fatalities reported during 2009

Reduce the recordable injury

and illness case rate

by >40%

All worker recordable injury and illness case rate: <0.4 (per 200,000 hours)

Our overall recordable case rate reduced to 0.69 in 2009, compared to 0.72 in 2008

Health assessments completed against plan: >99 per cent

96.8 per cent of health assessments were completed in 2009, compared to 98.2 per cent in 2008

Sustained compliance with our health

assessment and

occupational hygiene

programmes

Hygiene tests completed against plan: >99 per cent

93.1 per cent of hygiene tests were completed in 2009, compared to 95.4 per cent in 2008


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Hygiene tests below the Occupational Exposure Limit (OEL): >99 per cent

98.2 per cent of hygiene tests were below OEL in 2009, compared to 98.1 per cent in 2008

Community Safety Elements


2009 Performance

No distribution incident fatalities

Distribution incident fatalities: 0 (contractor drivers or members of public)

5 distribution incident fatalities in 2009, compared to 7 in 2008

Reduce the number

of serious site losses of

containment

Number of site losses of containment (Category 2 or higher): <4

3 site losses of containment in 2009, compared to 5 in 2008

Reduce the number of serious distribution

incidents involving

our products

Number of distribution incidents (Category 2 or higher): <12

43 distribution incidents in 2009, compared to 24 in 2008

No environmental licence non-compliances

Number of environmental licence non-compliances: 0

33 environmental licence non-compliances in 2009, compared to 18 in 2008

Environment Elements


2009 Performance

Energy consumption Reduction in energy consumption per tonne of production: >15 per cent

12.7 per cent reduction from the 2004 baseline, compared to a 10.9 per cent reduction last year

Reduction in emissions of total carbon dioxide equivalent gases per tonne of production: >35 per cent comprising:


Reduction in emissions of carbon dioxide only per tonne of production: >15 per cent


Greenhouse gas emissions

Reduction in emissions of nitrous oxide per tonne of production: >50 per cent


Water consumption Reduction in water consumption per tonne of production: >15 per cent


Waste generation Reduction in waste generation per tonne of production: >50 per cent



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Ten Priority Actions We have identified 10 priority actions that will help us progress towards our aspiration of no harm to people and the environment. This approach targets our efforts at our major sustainability impacts including: energy consumption; greenhouse gas emissions; water consumption; and waste generation. Our progress in 2009 is as follows.

2009 Status:

Target exceeded or

ahead of schedule

Target achieved or

on track


Priority Action Time 2009 Status

Priority Action 1. Abate nitrous oxide (N2O) emissions - reducing N2O emissions in our operations is the best way to reduce our global carbon

dioxide equivalent (CO2e) emissions

Nitrous oxide abatement technology breaks down the N2O molecule into harmless nitrogen and oxygen.

Carseland, Canada - Secondary abatement technology was installed on Nitric Acid Plant 1 at Carseland in Alberta, Canada, in May 2008. As Orica's third largest emitter, Carseland contributes 13 per cent of Orica's total greenhouse gas emissions (down from 17 per cent last year due to N2O abatement). When compared to normal operation the technology is expected to reduce greenhouse gas emissions from the plant by approximately 80 per cent. An abatement level of 78.9 per cent was achieved in 2009, which is equivalent to abating 400,000 tonnes of carbon dioxide equivalent. More than 580,000 tonnes of carbon dioxide equivalent has been abated since the technology was installed in 2008.

Bacong, the Philippines - Secondary abatement technology was successfully installed on Bacong's Nitric Acid Plant in July 2009. Abatement levels of over 75 per cent have been achieved, equating to 7,400 tonnes of carbon dioxide equivalent since installation. The project is in the final stages of the registration process for the United Nation's Clean Development Mechanism. Registration of the project is expected to be complete late 2009. Prior to the installation of secondary abatement, Bacong emitted one per cent of Orica's total greenhouse gas emissions. Read more in our case study Abatement in the Philippines.

Other Sites - the abatement programme is expected to be undertaken at Orica's remaining Nitric Acid plants over the next two years.

1 - 3 years

Priority Action 2. Conduct energy assessments - detailed energy assessments will identify significant savings at our larger sites

In 2005 Orica volunteered to be a trial company for the Australian Federal Governments Energy Efficiency Opportunities (EEO) programme. An assessment identified more than 70 energy efficiency opportunities at Kooragang Island (New South Wales, Australia) during the trial. It is expected that implementation of these

1 - 3 years


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opportunities will lead to a reduction in site energy use of up to 200,000 gigajoules (GJ) per year, with reduction in energy costs of almost $1 million per year. Many of the initiatives identified at Kooragang Island are still under investigation.

The EEO process was carried out at Yarwun (Queensland, Australia) in 2007. Yarwun is our second most energy and emissions intensive site. More than 300 sustainability-related opportunities were identified. These have since been consolidated and revised. Preliminary estimates of opportunities identified at Yarwun indicate potential site energy reduction of up to 10 per cent. Implementation of an opportunity to improve boiler operation has saved approximately 40,000 GJ and 2,050 tCO2 in 2009.

We have also completed Energy Assessments in accordance with the EEO programme at our ChlorAlkali facilities at Laverton (Victoria, Australia) and Botany (New South Wales, Australia).

Across these four facilities, potential savings of up to 500,000 GJ per year have been identified.

The EEO verification team completed a trial verification on the Orica assessment process and determined that Orica complied in the all aspects of the opportunity identification and evaluation process.

Priority Action 3. Improved gas efficiency at our Ammonia Plant - as ammonia plants have a significant emissions profile, we are identifying efficiency gains at our Kooragang Island plant in Australia

Design work to better integrate the Ammonia Plant and Nitrates Plant steam systems is now underway, with a business improvement team working on the project. The integration project will involve upgrades to the systems that monitor and control site steam generation and distribution. This project is expected to be undertaken during 2010 and will result in a reduction in gas consumption to raise the site's steam requirements.

Detailed design work is also underway to increase the production capacity of the Ammonia Plant. Pending both internal and external approval processes, this project is expected to be commissioned in 2011 and will deliver a further improvement in the gas efficiency of the Ammonia Plant.

1 - 3 years

Priority Action 4. Capture waste heat - investigating ways of capturing

wasted heat energy

The project remains a focus for the business, although a sound commercial case remains to be developed. The Group is currently investigating external funding opportunities which may help the project meet commercial hurdles and gain acceptance at a Group level.

3 - 6 years

Priority Action 5. Identify "blue-sky" ideas - research and develop alternative long-term sustainable energy and raw material sources for future production

These ideas are being generated through site energy assessments and business sustainability workshops. DuluxGroup is working hard to measure the environmental impacts of their products.

3 - 6 years

Priority Action 6. Reuse groundwater treated at Botany - identify where treated groundwater can be used to offset potable, towns' water

1 - 3 years


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On average 44,000 kilolitres (kL) of treated water per month from Botany's Groundwater Treatment Plant (GTP) is being consumed by Orica's ChlorAlkali Plant and other nearby industrial sites. The reuse of treated water at our ChlorAlkali Plant has reduced Orica's gross water consumption by approximately one per cent.

Priority Action 7. Use recycled water at Kooragang Island - investigate the viability of replacing process water (potable, towns' water) with recycled water from Hunter Water

The Orica Kooragang Island site and Hunter Water have been working together in developing a project that will see Hunter Water build a Recycled Water Facility on the Steel River site in Newcastle. Kooragang Island is the single largest user of potable water in Newcastle, New South Wales, and would initially be the sole customer of the new project if built to the current projections. The technical specifications, pricing structure and capital funding are all being negotiated and if agreed a Memorandum of Understanding will be signed later this year. This project has the potential to deliver financial and environmental benefits to both Orica and Hunter Water.

3 - 6 years

Priority Action 8. Price emissions and water use - implementation of a shadow price on expenditure proposals and contracts for carbon emissions and water use to better inform decision-making now and position us for

future legislative changes

Shadow prices for carbon emissions and water consumption are now required in key expenditure proposals.

In addition sustainability impacts are being considered in more depth as part of the approval process for major projects.

1 - 3 years

Priority Action 9. Conduct lifecycle assessments - lifecycle assessments show where further reductions in waste, water and energy use can be made

Lifecycle assessments have been completed on: numerous Dulux® paint and Powder and Industrial Coating products, Chlorine and its associated products and Ammonium nitrate.

We continue to utilise these studies to inform our approach to managing the lifecycle impacts of our major products. No further lifecycle assessments were conducted in 2009 but we intend to resume this activity in 2010.

1 - 3 years

Priority Action 10. Develop "low impact" products and services - support our customers and benefit the community by concentrating on developing a

larger range of "greener" products

Many low impact products have been and are being developed. Click the following links to read more about:

• Dulux's Sustainable Products; • Waste Paint Management; • Minova Reduces Waste; • Recycling Packaging at OMS; • Reusing Packaging at Yarwun; and • Abatement in the Philippines.

3 - 6 years


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Stakeholder Engagement Orica is committed to conducting business in accordance with high standards of corporate governance and aims to be open and transparent with all stakeholders regarding its sustainability aims and achievements. Our Deliver the Promise culture programme aims to ensure that we hold true to our commitments to customers, shareholders, the communities in which we operate and each other.

It is important to us that we know who our stakeholders are, understand their material concerns and respond to them in an appropriate manner. Our approach to stakeholder identification, planning and conducting engagements, and responding and measuring is outlined in our Group SH&E Standard GS 3 Communication and Consultation.

Our SH&E Policy identifies our key stakeholders as being:

• Our employees; • Our contractors; • Our customers; • Our shareholders and the investment community; and • The community.

Information on Orica's approach to sustainability and general operations is communicated through a range of forums, publications and online sources. These include:

• Our website www.orica.com; • Orica's Annual General Meeting (this is also webcast); • Orica's Annual Report (available in hard copy or on-line as an interactive report); • Orica's Business Overview (available in hard copy or on-line as an interactive report); • Orica's annual Sustainability Report (available on-line, printed copies are not produced); and • Disclosures to the Australian Stock Exchange.

Employees and Contractors

Our approach to engagement with employees and contractors is driven by our relevant Model Procedures:

• Communication - which states "Processes shall be established and maintained to regularly communicate SH&E information within and between relevant sections of the Company" and "Processes shall be established for consultation with employees and relevant contractors during establishment of SH&E objectives and targets, regarding changes to workplaces and operations and to resolve SH&E issues."; and

• On-site Contractor SH&E Management - which states "SH&E expectations for principal and/or regular contractors are clearly established in the SH&E Contractor's Charter and shall be formally discussed with contractors".

Key concerns of our employees and contractors are typically our safety performance, human resources policies and our sustainability reputation.

Our employees and contractors are kept up to date on our sustainability performance through regular newsletters, intranet material, workshops and conferences. Our monthly Orica Update newsletter and Deliver the Promise website cover a range of initiatives across our operations, while our quarterly sustainability newsletter Towards No Harm provides a comprehensive overview of our sustainability programmes and achievements. Our sustainability intranet provides access to our guidelines and procedures, including our Carbon Shadow Pricing requirements for significant new contracts and investments.

Within Orica we have a Sustainability Champions Network comprised of employees interested in and committed to sustainability within the organization. In July 2009 we held the first Orica Sustainability Council meeting. The Sustainability Council consists of 18 of our senior Sustainability and SH&E Managers and is


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expanding from being Australian and North American focused, to incorporating representatives from our Asian and Latin American operations.

To ensure a timely and appropriate response to our employee and contractor concerns, communication and consultation activities are recorded and effectiveness is evaluated.

Customers We work with our customers to reduce the sustainability impacts of the products we provide. Our Model Procedure on Product Stewardship states that we will "work with customers (and any other people who receive products/services from the business) to ensure the adverse SH&E impacts associated with the distribution, storage, use, recycling and ultimate disposal of products are minimised as far as practicable."

Our Deliver the Promise commitment to creative customer solutions means we aim to "think differently, deliver swiftly and capture the value". We engage with our customers to help them succeed by delivering the best solution, seek better and faster ways to deliver products and services and respond rapidly to opportunities and change. Examples include:

• DuluxGroup staff in Western Australia have organised a more effective distribution network for their customers which provides the right product at the right time;

• Brownsburg installed an improved solution for their product count resulting in a more reliable product and more satisfied customers;

• Orica Brazil listened to it's customers and created a better, safer product which increased our market position and sales; and

• In Argentina, rescheduling of staff shifts and re-training of staff has allowed a mine expansion to occur with minimal disruption.

Shareholders and the Investment Community

We engage and respond to our shareholders sustainability queries at our half-year and end-of-year road show meetings. In recent years we have noted a significant increase in awareness and questions from our shareholders regarding our climate change exposure and opportunities. Our performance against key sustainability indices and reputation assessments are also publicly available via:

• Dow Jones Sustainability Index; and • Carbon Disclosure Project.

Community

Our approach to engagement with our local communities is driven by our Model Procedure 15: Community Relations Programme, which states that each site shall "establish and maintain channels of communication with the community; and coordinate responses to requests for information from the community."

The key concerns of our local communities are typically our local operational impacts (i.e. noise, odour and contamination) and employment opportunities.

We develop site-specific programmes to allow the general community to become familiar with and understand the business activities, products and emergency plans. Public complaints (both written and verbal) are registered, investigated and responded to promptly.

Many Orica operated businesses pro-actively engage the community around their sites. For example, Orica Chile continues to forge strong ties with the community through a number of activities held around the


Page 21 of 189

country during the year. Through the Family Budget workshop, Orica workers and their families were taught techniques on how to prevent over-consumption and how to decide which purchases to make. A First Aid workshop was also offered to provide some basic skills to assist someone who is in need of medical assistance. Participants were trained in cardiopulmonary breathing. Orica workers and their families participated in the "Solidarity Campaign with the Aged Institution Nuestra Señora de la Candelaria", to collect non-perishable food to help the disadvantaged at the institution. Orica has signed a commitment for a monthly contribution of food over the next year.

Botany, Australia

Our site in the inner suburbs of Sydney, New South Wales, Australia, has received significant community interest due to prior contamination. We actively engage the local community around the Botany site in an effort to listen to their concerns, questions and suggestions regarding the Botany Groundwater Treatment plant. We provide regular updates on the progress of the project through a column in the Southern Courier newspaper and a newsletter for local residents. We have also produced a comprehensive suite of fact sheets, which are designed to provide the community with simple and easy to understand information on the environmental science and technology involved in the project.

Our Board receives regular updates on the progress of works and stakeholder engagement at our key legacy sites including Botany.

Government

We work proactively with local regulators, State and Federal Governments to meet local requirements and participate in the development of sustainability policy and initiatives.

The key concerns of governments where we operate are typically regulatory compliance, our ability to demonstrate innovation in research and development and our ability to maintain positive relationships with our local communities.

We actively engage with relevant public agencies in all countries where we operate. These agencies include law enforcement, counter-terrorism, sustainability and climate change.

In 2009 we engaged with the Australian Government in relation to the pending Carbon Pollution Reduction Scheme.

Stakeholder Grievances and Concerns

Mechanisms to address grievances and concerns have also been established. Our Model Procedures require that "Public complaints (both written and verbal) shall be registered, investigated and responded to promptly." We have a Speak Up Line for internal and external confidential feedback.


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Recognition & Awards In 2009 our SH&E and sustainability efforts were acknowledged with the following Recognition and Awards.

Recognition

Dow Jones Sustainability Index

Launched in 1999, the Dow Jones Sustainability Index (DJSI) is the first global index tracking the financial performance of the leading sustainability-driven companies worldwide. In 2009 we maintained our inclusion in the DJSI (chemicals sector).

Awards

Westpac Supreme Award

Orica Powder and Industrial Coatings New Zealand "delivered the promise" when the business recently won the Westpac Supreme Award in the 11th annual Westpac Enterprise North Shore Business Excellence Awards. Every year, the Awards honour local companies based in the North Shore area of Auckland, their people and their extraordinary achievements in New Zealand business. Powder Coatings also collected both the Smales Farm Excellence in Environmental Management Award and the Eco Insulation Excellence in Design, Research and Development Award.

Read more in our case study A Powder Coated Promise.

Mitre 10 Overall National Supplier of the Year 2009 and Best Supplier in the Decorator Category

2009

Dulux® Australia was awarded Mitre 10's most prestigious supplier award, National Overall Supplier of the Year, in 2009. The Dulux® Australia retail business also won the award for Best Supplier to the Decorator Category in 2009.

Read more in our case study Dulux Wins Supplier Award.

Responsible Care Award 2009

Orica Chemicals Latin America received the Responsible Care Award 2009 after its successful re-certification for the Responsible Care® Management System by the Chilean Industrial Chemicals Association (ASIQUIM). This is the second time Orica Chemicals Latin America has received this award after first receiving it in 2006.

Read more in our case study Latin America Wins Award.

Rainforest Rescue Eco Warrior Award 2009

Orica's Accounts Payable department won Rainforest Rescue's Eco Warrior Award in 2009 for reducing paper consumption and contributing to a more sustainable environment.

Read more in our case study Our New Eco Warriors.

Wellington Gold Award for Workplace Safety


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Dulux® New Zealand won the Wellington Gold Award for Workplace Safety. This is the second year in a row that Dulux® New Zealand has been recognised for excellence in the Wellington Gold Awards; last year winning the Green Gold Award for Sustainability.

APRIMIN's Annual Safety Award

Orica Mining Services (OMS) Chile was recognized with the mining industry association's APRIMIN Annual Safety Award on November 13, 2008 at a gala dinner. OMS Chile has 1,000 employees distributed among 24 field sites operations, two initiating systems plants and one explosive plant in Chile.

Carter Holt Harvey Sustainability Award

Selleys® Liquid Nails High Strength 680 gram Sausage was awarded silver in the Carter Holt Harvey Sustainability Award category of the Australian Packaging Awards. The sausage contains twice as much product as the traditional cartridge, so ships and stacks far more efficiently, and its collapsible nature means a staggering 85 per cent less space is required in landfill.

Guthrie Bowron Supplier of the Year Award 2009

Dulux® New Zealand won the Guthrie Bowron Supplier of the Year Award at their annual conference and awards function. Guthrie Bowron is New Zealand's largest home decorating specialist and this award recognises the strong support and resultant increased market share achievements.

John Danks National Conference Supplier Awards

Dulux® Australia was awarded the best Supplier in the Decorator Category and Cabot's® was awarded the best Supplier to the Thrify-Link group of stores (approximately 400 outlets).

2008 Australian Hardware Journal "Product of the Year"

Australian Hardware Journal staff Selected Cabot's® CFP Sandless Floor System as the "Product of the Year".


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Our Approach to Reporting Our SH&E Policy states that we will "communicate openly about our activities and report progress on our safety, health and environmental performance".

We publicly report on our SH&E and sustainability performance in a variety of ways, including:

• This web based, Company-wide Sustainability Report, which has been prepared in accordance with the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines 2006;

• Relevant sections of our Annual Report and annual Business Overview; and • Site SH&E Reports - our operations produce their own reports that are specific to their site

circumstances, regional context and stakeholder needs.

The purpose of Orica's annual sustainability reporting is to provide our stakeholders with an overall picture of relevant aspects and results for 2009. We have endeavoured to provide information that is in accordance with sound reporting practice. We have not sought independent verification of information contained in this web-based 2009 Sustainability Report.

We have self-declared a "B" Application Level for our 2009 Sustainability Report. Refer to our GRI Index for more information.

Information about our current performance is also available through various industry reporting initiatives, including the Carbon Disclosure Project. Our responses to the Carbon Disclosure Project in 2009, 2008 and 2007 are available for download through the Carbon Disclosure Project website: https://www.cdproject.net/en-US/Pages/HomePage.aspx.

Our most recent Sustainability Report was released in November 2008. Download our previous Sustainability and SH&E Reports via the links in our Download Reports section.

Feedback

We welcome your feedback on our 2009 Sustainability Report. You can contact us via email or phone. Email: [email protected] or [email protected] Telephone: +61 3 9665 7111

Report Boundary

In accordance with GRI Guidelines, our web-based 2009 Sustainability Report covers all entities that generate significant SH&E and sustainability impacts (actual and potential) and all entities over which we exercise control or significant influence with regard to financial and operating policies and practices.

Entities over which we don't exercise significant influence and control (e.g. supply chain) are included in our narrative disclosures due to the materiality of their impact on our business.

The statistics in this Report cover sites owned and operated wholly by Orica Limited or operated by Orica Limited in a 50 per cent or more joint venture operation during the 12-month period to 30 September 2009, with the exception of energy, greenhouse gas emissions, water and waste data, which includes only those operations owned and operated wholly by Orica Limited. Data is reported on a 100 per cent basis for facilities operated by Orica Limited irrespective of our equity share, unless otherwise stated. Joint venture projects that are not operated by us are excluded unless expressly stated. All monetary amounts in the Report are in Australian dollars unless otherwise stated.

There are no significant changes from previous reporting periods in the scope, or boundary applied in the report. Reporting of total energy consumption and therefore energy consumed per tonne of production has increased in accuracy due to requirements under the National Greenhouse and Energy Reporting Act (2007).


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While every effort has been made to ensure the accuracy of the information, anyone seeking to rely on information in this Report or seeking to draw detailed conclusions from the data should contact the Company for verification and assistance.

Mergers, Acquisitions and Development

• From 1 October 2009, Orica Consumer Products changed its Group name to DuluxGroup in Australia, New Zealand and Papua New Guinea, and to DGL International for all other territories. These names will replace "Orica Consumer Products", "Orica Coatings" and "OCP" as the Group names. These new Group names however will not affect the way the business units, such as Dulux®, Selleys®, Yates®, etc. identify their businesses or market their products;

• Orica's proposed Ammonium Nitrate Facility Expansion at its Kooragang Island site in New South Wales, Australia, is currently in the final assessment phase following public exhibition of the Environmental Assessment in mid-2009;

• Orica submitted a development application for a new emulsion manufacturing facility at its Kurri Kurri site. The Environmental Assessment is currently being prepared and is expected to be publicly exhibited in late 2009, with determination expected in early 2010;

• Orica Mining Services (OMS) is progressing well on the development of the 300 kilo tonne per annum Ammonium Nitrate (AN) manufacturing facility in Bontang, Indonesia, with cumulative spend to date of A$76 million;

• Given the tight market conditions, other AN expansion options continue to be progressed; • OMS announced the Nanling Initiating Systems Joint Venture (JV) in China with a new plant

expected in 2010, a JV with Southwest Energy in the USA and the acquisition of an additional 49 per cent interest (taking Orica's interest to 99 per cent) in Samex, an explosives distribution business in Peru, which was completed in November 2008;

• Plans have been developed by Chemicals Group that will deliver annual EBIT improvement of approximately A$14 million by 2010 at an after tax cost of approximately A$15 million (significant items in 2008). A number of these initiatives have already been implemented; and

• DuluxGroup has made steady progress in developing a business in China and in November 2008 acquired Sopel, a small decorative coatings company.

Materiality In accordance with GRI Guidelines, our web-based 2009 Sustainability Report attempts to cover topics and indicators that reflect Orica's significant economic, environmental and social impacts or that would substantively influence the assessments and decisions of stakeholders.

In defining our material topics, we have taken into account various factors, including:

External Factors

• Sustainability concerns raised by stakeholders through our ongoing community consultation programmes;

• The main topics and future challenges for the sector, as reported by peers and competitors and through our ongoing involvement in key industry forums, such as the Plastics and Chemicals Industry Association (PACIA) and Responsible Care®;

• Relevant laws, regulations and international agreements, such as our voluntary commitment to the PACIA Responsible Care® and the International Cyanide Management Code; and

• Reasonably estimable SH&E and sustainability impacts, risks, or opportunities identified by our network of SH&E professionals, often in partnership with independent recognised experts (e.g. climate change, HIV/AIDS education).

Internal Factors

• We take a risk-based approach to defining the materiality of our SH&E and sustainability issues. Business risk, including SH&E risk, is defined within our Business Groups and consolidated into a Company-wide overview to inform our Board's decisions. These include our key sustainability


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challenges, our Deliver the Promise principles, Code of Conduct, SH&E Policy and Challenge 2010 targets;

• The interests and expectations of stakeholders specifically invested in the success of the organisation (for example, our employees and contractors, customers and shareholders);

• Critical factors for enabling organisational success, such as our SH&E Line Accountability model, our SH&E Model Procedures and our professional networks; and

• The core competencies of the organisation (i.e. Board and governance structure, sustainability, accounting, supply, marketing, operations etc) and the manner in which they can or could contribute to sustainable development).

Prioritising

Our Report prioritises material topics and GRI Indicators. "Core" and "Additional" indicators have been addressed where they are material to our business.

Stakeholder Inclusiveness

Our Report aims to meet the various information expectations of its broad stakeholder audience by drawing upon feedback from our:

• Regular consultation with our host communities and partners; • Annual general meeting and regular contact with the investment community; and • Interactions with regulatory bodies, host government, special interest groups and industry

programmes.

To comprehensively meet the information needs of all our stakeholders, particularly at the local and regional level, our operations also produce annual public site SH&E Reports that are specific to their site circumstances, regional context and stakeholder needs.

Sustainability Context

We have attempted to present our performance in the wider context of sustainability.

Key performance measures are reported on a global and a regional basis to reflect the magnitude of impact in both geographical contexts.

Our Report describes how SH&E and sustainability topics relate to long-term organisational strategy and risks and opportunities, including supply-chain topics.

Completeness

We have endeavoured to ensure that our Report coverage is sufficient so that stakeholders can confidently assess our sustainability performance during the reporting period.

The Report was developed taking into account our supply chain and customer relationships and reasonably covers all material information relevant to these stakeholders.

Case study information, performance data and incident summaries are included to reflect all significant actions or events in the reporting period.

The Report does not omit relevant information that would influence or inform stakeholder assessments or decisions or that would reflect significant economic, environmental, and social impacts.

Balance


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The Report reflects positive and negative aspects of our performance to enable a reasoned assessment of overall performance. Positive aspects include external recognition, the Orica Giving Programme and some aspects of performance against our Challenge 2010 targets. Negative aspects include incidents, injuries and some aspects of performance against our Challenge 2010 targets.

Trend information is presented for all key SH&E and sustainability information.

The emphasis on the various topics in the Report is proportionate to their relative materiality, given our broad scope of operations, locations and the number of internal or external stakeholders impacted. Our traditional reporting areas of governance, safety, health, environment and community are underpinned by our SH&E Model Procedures and form the basis of our performance and reporting focus. In more recent years, we have broadened the scope of our Report to include human resources, economic contributions and product stewardship.

Comparability

Since commencing SH&E reporting in 1996, and progressing to more comprehensive sustainability reporting in 2007, the issues and information we present has been selected, compiled and reported consistently to enable stakeholders to analyse:

• Changes in our performance over time (i.e. year-to-year trend information to support our Challenge 2010 targets);

• Our performance relative to other organisations; and • Our information is grouped to reflect our performance against appropriate benchmarks using our

GRI Navigator tool.

Any significant variations between reporting periods (for example, report boundary or scope) are identified and explained in our Report Boundary.

Accuracy

Our Report aims to provide accurate and detailed information for our stakeholders to assess our performance.

Data have been measured and collected at all of our operated assets and aggregated to provide Group level performance information. Our approach to measurement and calculation, for example, the measurement of our Sustainability Index and the application of greenhouse gas factors, are footnoted throughout the Report.

We do not believe our margin of error for quantitative data is sufficient to substantially influence the ability of stakeholders to reach appropriate and informed conclusions on performance.

Timeliness

Our Report is produced on our annual, financial year basis (i.e. 1 October 2008 to 30 September 2009). The collection of sustainability data from our operated sites is aligned to the reporting schedule so that all information in the Report is relevant to the reporting period.

Clarity

We have endeavoured to ensure that the information in our Report is readily understandable and accessible to our stakeholders. While the scope of information required by our broad range of stakeholders requires that our web-based 2009 Sustainability Report be quite extensive, we have attempted to avoid excessive and unnecessary detail by focusing on the information requirements expressed in stakeholder feedback and appropriate benchmarks.

Reliability


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The qualitative statements in the Report are valid on the basis of other reported information and other available evidence. In 2008 data collection processes for the Sustainability Report was internally audited by Deloitte. In response to the audit findings, we have continued to improve the systematic application of internal controls to our key sustainability challenges. We will consider moving to external assurance of future Sustainability Reports.

Explanation of Company terms

Orica is an Australian-owned, publicly listed global company with headquarters in Melbourne, Victoria, Australia.

Orica Limited shares are listed on the Australian Stock Exchange (ASX) and are traded under the code ORI.

The Company's financial year runs from 1 October to 30 September with half-year results announced in May and results for the full financial year announced in November each year.

Orica Limited Contact Details

Registered Office: 1 Nicholson Street, East Melbourne, Victoria, Australia 3002 Telephone: +61 3 9665 7111 Facsimile: +61 3 9665 7937 Email: [email protected] ABN 24 004 145 868


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Overview Orica's directors and management are committed to conducting the Company's business ethically and in accordance with high standards of corporate governance. The successful management of safety, health and environmental matters is important to our employees, customers, communities and our business.


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Leadership & Accountability

Safety, health and environment (SH&E) are line management responsibilities at Orica.

Directors, executives and employee performance is appraised against our Deliver the Promise principles and behaviours. These principles and behaviours refer specifically to continual SH&E improvements and meeting the needs of customers and community in an environmentally sustainable manner. A proportion of Orica employees' remuneration, including all senior management, is linked to key SH&E performance indicators.

Read more about our senior management remuneration policies and performance in our 2009 Remuneration Report by visiting www.orica.com.


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Organisational Structure

Our commitment to SH&E and sustainability is reflected in clear definition of roles and accountability throughout our organisation.

Orica Limited Board

Orica's directors and management are committed to conducting the Company's business ethically and in accordance with high standards of corporate governance.

The Board of Orica Limited sees its primary role as the protection and enhancement of long term shareholder value. The Board is accountable to shareholders for the performance of the Company. It directs and monitors the business and affairs of the Company on behalf of shareholders and is responsible for the Company's overall corporate governance.

We believe that good corporate governance practices and strong sustainability performance protect and enhance our value to shareholders. The Board receives monthly reports and detailed six-monthly presentations in relation to safety, health and environment issues and performance across the group.

Orica maintains a majority of non-executive directors on its Board and separates the role of Chairman and Managing Director.

The Board currently comprises ten directors: eight independent non-executive directors, including the Chairman, and two executive directors, being the Managing Director and the Executive Director Finance.

The Board comprises a broad range of experience, skills, knowledge and perspectives to enable it to carry out its obligations and responsibilities, including its commitment to sustainability performance. The balance of skills and experience of the Board is critically and regularly reviewed by the Corporate Governance and Nominations Committee. Processes are in place to ensure conflicts of interest are avoided in our Board appointments.

Read more about our approach to Independence and Continuous Disclosure in our Corporate Governance Statement by visiting www.orica.com.


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Group Executive

Orica's Group Executive is a forum for strategy development and SH&E governance for the Company. In particular, the Group Executive:

• Recommends SH&E and Sustainability Policy to the Board; • Approves the strategy and sets performance targets; • Monitors SH&E compliance and governance through audit reviews and SH&E Letters of Assurance; • Endorses actions to address Company wide improvement opportunities; and • Endorses Company positions on significant external SH&E and sustainability issues at governmental

and industry associations.

Business Groups The Business Group General Management Teams, and their Group SH&E Managers, are accountable for the communication and implementation of the SH&E Policy and Sustainability Vision within their respective businesses.

Site Managers

Our SH&E Policy states that we "require every employee and contractor working for us to comply with relevant legislation and with this policy, and we will provide them with the necessary training."

All Orica line managers, employees and contractors are signatories to our SH&E Charter, which details what is expected of them and also what they can expect from Orica in providing a safe and environmentally responsible workplace.

Board Audit & Risk Committee

The Board Audit and Risk Committee comprises three independent non-executive directors with relevant financial, commercial and risk management experience. The Chairman of the Board Audit and Risk Committee is separate from the Chairman of the Board. Nora Scheinkestel is the current Chairman of the Board Audit and Risk Committee and the other members are Garry Hounsell, and Michael Tilley. The Chairman, Managing Director and Executive Director Finance attend ex officio.

The committee is charged with assessing the adequacy of the Company’s financial and operating controls, oversight of risk management systems and compliance with legal requirements affecting the Company. The committee meets at least four times per year.

A separate role of Chief Risk Officer exists, reporting to the Executive Director Finance and liaising directly with the Board Audit and Risk Committee (BARC), to manage the Company's risk management and internal audit programme.

Board SH&E Committee

The Board Safety, Health and Environment (SH&E) Committee comprises Peter Kirby (Chairman), Michael Beckett and Michael Tilley. The Chairman, Managing Director and Executive Director Finance attend ex officio. The committee assists the Board in the effective discharge of its responsibilities in relation to safety, health and environmental matters arising out of activities within the Company as they affect employees, contractors, visitors and the communities in which it operates. The committee also reviews the Company's compliance with the environment policy and legislation and reviews safety, health and environmental objectives, targets and due diligence processes adopted by the Company.

A Letter of Assurance for SH&E is written by the Managing Director and presented to the SH&E Committee on an annual basis after a thorough process of assessment by each business.


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The Board SH&E Committee receives updates on the Company's SH&E and sustainability performance and discusses progress towards its targets at each meeting. Topics addressed in 2009 include:

• An update on Orica's clean-up activities across the world including the performance of the Groundwater Treatment Plant and status of hexachlorobenzene (HCB) disposal;

• How Orica will incorporate specific SH&E and sustainability design features in new major projects to ensure our plants are designed to world's best standards - taking them far beyond legal compliance; and

• Emerging global issues in the SH&E and sustainability field that may lead to better understanding within Orica as well as actions aiming to prevent these issues arising within Orica.

Corporate and Group SH&E and Sustainability Managers

The Corporate SH&E Manager, in association with the various Group SH&E Managers and associated SH&E personnel, provides technical policy and strategy support and advice to the Group Executive. The Corporate SH&E Manager provides the formal reporting of the Company's performance.

Site SH&E Personnel All Orica sites are required to have a SH&E Committee. These committees include representatives from management and elected representatives from each of the workgroups on site. Elected workgroup representatives make up at least half of the committee. Through these committees, we consult with our employees and contractors during the establishment of SH&E objectives and targets, regarding changes to workplaces and operations, and to resolve SH&E issues. Site and business management teams are supported by:

• The Corporate SH&E group; • Group SH&E Managers and business-based SH&E advisers; and • Technical specialists.

Sustainability Council

The inaugural meeting of Orica's Sustainability Council was held in July 2009. The Council comprises Group, area and major site SH&E and Sustainability Managers and is managed by the Sustainability Team. The Council was created to:

• Enhance cross-business collaboration and sharing of new information, opportunities, technologies etc;

• Build internal capacity relating to sustainability and grow awareness; • Keep abreast of changes within the corporate and business sustainability teams; • Expand the network of sustainability experts to include representatives from each region in which

we operate; and • Communicate sustainability effectively and proactively.

The Council participate in a quarterly teleconference and currently has 26 members from Australia, North America, Latin America, Germany, Singapore, the Philippines, Papua New Guinea, India, China and Indonesia.

SH&E Managers' Team

The Orica SH&E Managers' Team ensures the most effective use of resources by:

• Sharing best practice; • Standardising procedures; and • Coordinating SH&E activities across the Company and its subsidiaries.


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The Corporate and Group SH&E Managers participate in monthly meetings and provide advice and support to business line managers.


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Management Systems

Our SH&E Management System has been developed to manage the interaction between people and the work environment. We have developed a hierarchy of documents that define our approach. These include:

• SH&E Policy and Sustainability Vision; • SH&E Charter; • SH&E Standards; and • SH&E Model Procedures.

SH&E Policy and Sustainability Vision Our SH&E Policy describes our commitment to people and the environment.

Orica aspires to become a business that does no harm to people and the environment. This reflects our desire to be among the best sustainability performers internationally, consistent with our Deliver the Promise principles of commercial ownership, creative customer solutions, working together and valuing people and the environment.

SH&E Charter

All Orica line managers, employees and contractors are signatories to our SH&E Charter, which details what is expected of them and also what they can expect from Orica in providing a safe and environmentally responsible workplace.

SH&E Standards

Our 19 Group SH&E Standards provide the benchmark for performance in our organisation. The SH&E Model Procedures provide further detail on how the SH&E Standards must be applied.

SH&E Model Procedures

Our SH&E Model Procedures provide the framework for controlling significant risks for which a high level of compliance needs to be assured. These procedures often require customisation to meet local needs, widespread training of personnel and in-depth internal and external auditing. Compliance with the key requirements of our SH&E Model Procedures is mandatory for all businesses unless formal exemption is granted by the Corporate SH&E Manager. Our SH&E Model Procedures describe processes for:

• Hazard identification, assessment and minimisation of risks from Company operations and products; • Compliance with legislative requirements; • Specification and implementation of safe systems of work; • Establishing health and hygiene programmes; • Provision of information and training; • Conservation of energy and other resources; • Protection of the environment; • Safe storage, transport and use of the Company's products; • Investigation and follow up of incidents and improvement opportunities; • Establishing SH&E plans and objectives; • Setting targets and monitoring SH&E performance; • Internal auditing and Company auditing; • Preparation of the SH&E Letter of Assurance; • Demonstration of due diligence; and • Communicating the Company's SH&E activities and performance to stakeholders.


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The requirements of the procedures are followed through work instructions and local practice. Systematic training programmes, including competency-based training, are developed and implemented to assist all employees and contractors to carry out their tasks safely.

Review and Improvement

The SH&E Management System is continually developed to reflect changes in reference documents (including legislation), lessons learned from incidents (both within and external to Orica), new best practices, benchmarking studies, employee feedback and management reviews. In accordance with our SH&E Model Procedures, all sites and businesses prepare an annual Letter of Assurance that details the level of compliance with each of the SH&E Standards and actions plans to close any gaps.

The suitability, adequacy and effectiveness of the Company SH&E Policy, Standards and Model Procedures and local SH&E management systems is reviewed on an ongoing basis.

Our Activities in 2009

In 2009, improvements to our SH&E Management System included the following:

• Acquisitions and Divestments - improvements to our risk profiling approach for new acquisitions; • Formation of a "Working Underground" Expert Panel - to develop safe systems of work for Orica

personnel working in underground mining environments; • Formation of a "Chlorine and Derivatives" Expert Panel - to develop safe systems of work for Orica's

chlorine manufacturing facilities; and • Broadened the scope and improved alignment of the cascading Letter of Assurance process - giving

greater transparency of compliance.

Many of our sites have environmental management systems certified to the international standard ISO 14001.


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SH&E Standards

Our 19 Group SH&E Standards (GS) are:

GS 1 Safety, Health and Environmental (SH&E) Commitment

Orica's Safety, Health and Environmental Policy applies throughout all its operations. Subsidiary companies shall establish as appropriate such safety, health and environmental policies and standards as are necessary to comply with local laws and be consistent with the Orica SH&E policy of Orica and these Orica SH&E Standards. The appropriate organisation and arrangements to implement the Orica SH&E Policy and Standards shall be put in place. The conduct expected and the accountabilities of employees for SH&E performance shall be established.

GS 2 Management and Resources

Line management shall lead the implementation of the Orica SH&E Policy and shall establish and monitor programmes aimed at the continuous improvement of performance towards defined goals. Appropriate SH&E and engineering support resources and facilities shall be available to assist line management to carry out its responsibilities. The responsibility, authority and inter-relation of those personnel charged with the implementation of these standards shall be defined.

GS 3 Communication and Consultation

Relevant information shall be provided, to employees, contractors, customers, suppliers and the public, concerning the effects of Orica's materials, products and activities on the safety and health of people and of the environment. There shall be consultation and communication with employees to promote involvement in improvement programmes. In transfers of technology, the recipient shall be provided with all necessary information available to Orica.

GS 4 Selection and Training

Competencies and expertise for safety, health and environment protection shall be taken into consideration in the selection and placement of employees. Training needs shall be identified and satisfied to ensure that all employees have the necessary skills and behave with proper regard for the safety and health of themselves and others, and for environmental protection. Training and validation arrangements shall be regularly reviewed.

GS 5 Material Hazards

A complete and current inventory shall be available of all raw materials, intermediates, products, wastes and other materials present in the workplace. Their hazards shall be identified and risks to people and the environment assessed. Appropriate information shall be maintained to enable all materials to be properly handled, stored, transported, used and disposed of. Appropriate limits for workplace and environmental exposure to all relevant materials and physical agents shall be established and disseminated.

GS 6 Acquisitions and Divestments

A safety, health and environment assessment shall form part of any proposal for acquisition or divestment. Systems shall be established for post-acquisition audits and for acquisitions to conform with the Orica SH&E Policy and Standards.

GS 7 New Plant, Equipment and Process Design

There shall be systems for the management of projects and the design of all new facilities, plants, equipment and processes. Design and construction shall be in accordance with relevant Orica engineering guidelines, local codes and regulations. Relevant studies shall be carried out to identify hazards and assess


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risks to people and the environment. Hazards shall be eliminated or the consequent risks reduced as far as is reasonably practicable. The basis for control of the risks shall be documented. New plants shall comply with the most demanding environmental legislation reasonably anticipated in any one of the territories in which Orica operates that process.

GS 8 Management of Change

Any modifications to facilities and the arrangements for their operation, including personnel, shall not compromise and, where possible, shall improve SH&E performance. Proposals for changes to plant, equipment, processes and control systems shall be registered and assessed, and modifications shall be authorised. Necessary hazard studies and risk assessments shall be carried out, appropriate design considerations made and all changes properly implemented and recorded.

GS 9 SH&E Assurance

All facilities and the arrangements for their operation shall be equipped and maintained to ensure continued safe operation, the health of people and the minimum practicable adverse environmental impact. There shall be periodic reviews of hazards to identify opportunities for the elimination or reduction of hazards and routine inspections of plant, equipment and premises to ensure their fitness for purpose and full accord with Orica engineering guidelines. These reviews and inspections shall take into account process hazards, engineering integrity, containment of materials, fire protection systems and other measures, such that there is continued conformance with exposure limits and reduction of risks as far as is reasonably practicable. Appropriate records relating to equipment, plant or facilities and their processes shall be maintained in a plant dossier.

A health assessment programme shall be established and maintained and employee records including demographic and occupational data retained in a retrievable form to facilitate epidemiology.

GS 10 Systems of Work

Systems of work shall be drawn up and maintained to ensure the safety and health of people and the protection of the environment. Hazards shall be eliminated or consequent risks reduced as far as is reasonably practicable. Control measures shall be implemented and monitoring programmes arranged to demonstrate safe and healthy working conditions, safe behaviour and effective protection of the environment and assets.

GS 11 Emergency Plans

The nature and scale of all reasonably foreseeable emergencies, including transport emergencies, shall be identified. Adequate formal arrangements, appropriate to the hazards and risks involved, shall be established to deal with these emergencies. The arrangements shall be made in association with the public emergency services and appropriate voluntary cooperative schemes. Plans shall be communicated and regularly rehearsed and reviewed.

GS 12 Contractors and Suppliers

The safety, health and environmental implications of all aspects of work carried out by others on behalf of Orica shall be considered. Competent contractors shall be selected, monitored and supplied with sufficient information to ensure that the safety and health of their employees is not put at risk by Orica activities. The contractor shall be required to provide sufficient information to ensure that the safety and health of Orica employees or others is not put at risk or Orica environmental standards compromised by the contractor's activities. The purchase and supply of raw materials, equipment and services shall be specified and monitored to ensure SH&E requirements are met.


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GS 13 Environmental Impact

Each location shall prepare and maintain an up-to-date assessment of the environmental impact of its activities. This assessment shall take into account, but not be limited to, the solid, liquid and gaseous wastes produced and the measures for their disposal, any land contamination issues, any planned and/or unplanned releases of materials or energy and any issues which may cause offence to the public.

GS 14 Resource Conservation

Natural resources shall be conserved by efficient energy use, by minimising the consumption of non-renewable resources and by reducing waste to the minimum practicable. Emphasis shall be given to conserving flora and fauna. Re-use and recycling of materials shall be promoted, having regard for safety, health, environmental, social and economic factors.

GS 15 Waste Management

The handling and disposal of wastes shall be properly managed at each Orica location. Records shall be maintained of the handling and disposal of all solid, liquid and gaseous wastes generated.

GS 16 Soil and Groundwater Protection

There shall be arrangements to prevent contamination of land and groundwater arising from site activities. Each location shall identify, assess and at regular intervals review possible hazards and risks, to human health or the environment, arising from land or groundwater contamination, and the need for protective or remediation measures. Each location shall maintain a dossier which records the history and contamination of the site, a register of all leaks and spills which may have potential for land or groundwater contamination, and a record of any protective or remediation measures undertaken.

GS 17 Product Stewardship

All Orica controlled businesses shall ensure that they manage, in an ethical and responsible manner, all the safety, health and environmental aspects of a product from its initial conception to its ultimate use and disposal. The SH&E implications shall be taken into account prior to the launch of new products and in the selection and development of new processes. The hazards from new products and processes, and the consequent risks, shall be reduced so far as is reasonably practicable to reduce potential SH&E impacts.

GS 18 SH&E Performance and Reporting

All locations shall report safety, health and environmental performance. Incidents and public complaints shall be recorded, investigated and appropriate corrective action taken to prevent recurrence. Records of performance and incidents shall be maintained and information and statistics reported to Orica as required by the Executive.

GS 19 Auditing

Formal auditing procedures shall be defined and implemented to ensure that the systems and behaviours adopted to meet these Standards are soundly established, maintained and observed. Deficiencies identified during audits shall be formally recorded, their implications assessed and corrective actions prioritised, implemented and recorded.


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Training

Training is central to our SH&E and sustainability strategy, equipping our people to take care of themselves and others as they carry out their tasks. Our Model Procedure on SH&E Training states that "SH&E training needs for contractors and employees, including requirements for periodic re-training, shall be assessed at the time of employment and on appointment to new positions. Requirements for additional training shall be assessed whenever new materials, products, processes, equipment or systems are introduced in the workplace."

The Orica Corporate SH&E group develops, maintains and facilitates SH&E Leadership Training modules including:

• General Management SH&E Leadership (two days); • Senior Manager and Business Management SH&E Leadership (one day); • Operations Managers and Senior Manufacturing/Production Leadership (two day or three days if full

sustainability content included); • Commercial/Business Product Manager Leadership (one day); and • Site and Business Manager SH&E Competency Development (two days).

Our businesses nominate the appropriate personnel for training and ensure training records are maintained. They can also initiate additional courses as necessary based upon demand.

All staff in leadership positions are expected to complete the appropriate SH&E Leadership course typically every four years. It is essential that all new managers, whether they are new to the company or are those moving into new senior manager/leadership roles, attend SH&E Leadership Training within the first year of appointment. These courses aim to explore and develop the leadership characteristics of SH&E within the various roles, as opposed to focusing solely on the technical aspects of SH&E. The modules are not intended to replace the business/site specific responsibility to train people in the necessary, day-to-day aspects of SH&E.

Additionally, all principal Site Managers periodically undergo a facilitated Site Manager's Competency Development activity, including preparation of a development plan.


• Introduction of a Business Manager SH&E Competency Development programme - aimed at developing the SH&E competency and leadership of managers;

• Introduction of General Management SH&E Leadership training - to develop the leadership competencies and understanding of key SH&E principles; and

• Specific sustainability training was provided on a needs basis.


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Risk Management

Orica aims to maintain a consistent organisation-wide approach to the management of risks by maintaining a Risk Management Policy, Framework and Methodology. This approach provides a transparent approach to managing risk across Orica and is applied to financial and non-financial risks, including SH&E risks.

The Board Audit and Risk Committee comprises three independent non-executive directors with relevant financial, commercial and risk management experience. The committee is charged with assessing the adequacy of the Company's financial and operating controls, oversight of risk management systems and compliance with legal requirements affecting the Company.

Our Risk Management approach is consistent with Principle 7 of the Australian Stock Exchange Corporate Governance Principles and Recommendations. Material business risks are systematically and formally identified and assessed on (at least) an annual basis, and periodic reporting is provided to the Board in relation to the effectiveness of the Company's management of those risks.

Other risk identification and assessment processes are undertaken under the same policies and frameworks on an appropriate periodic basis. Such risk identification and assessment processes may be performed on the consolidated Orica business, a business platform, region, strategic business unit, product, project country, strategy, site, operational process or other basis.

A separate role of Chief Risk Officer exists, reporting to the Executive Director Finance and liaising directly with the Board Audit and Risk Committee (BARC), to manage the Company's risk management and internal audit programme.

An independent external firm of accountants assists the Chief Risk Officer in ensuring compliance with internal controls and risk management programs by regularly reviewing the effectiveness of the risk management and internal control systems, and periodically provides assistance and input when undertaking risk assessments.

SH&E and Sustainability Risk Our SH&E Model Procedures require "ongoing systematic identification, assessment and management of SH&E risks associated with the Company's activities, products and services" including:

• New facilities and equipment; • Physical security risk assessment; • New products and services; • Job design and unusual activities; and • Performance of individual tasks.

We aim to identify and prioritise attention on critical risk control measures such as design verification, training, scheduled inspection, testing and/or replacement, auditing and change management. Critical risk control measures are typically those:

• Which protect against major incidents, including high severity, low probability events; and • Which could be prone to loss of integrity.

Orica businesses are required to prioritise their implementation of the SH&E Model Procedures based on a risk profile of their activities. As a result, they logically address their most serious hazards first. It is a long-term goal to achieve and sustain compliance with the key requirements of all the applicable Model Procedures. This exercise involves the systematic splitting of the SH&E Model Procedure into four categories: Core, Critical, Regular and Reference.


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Expert Panels

Expert Panels have been established to develop and set out the detailed requirements for the design and control of specified major hazard processes. The responsibilities of the Expert Panels are to:

• Detail the Basis of Safety on which the processes should be designed and operated; • Define the Critical Model Procedures which must be fully implemented for a particular technology; • Authorise any major process changes; • Audit compliance with Expert Panel mandated standards; • Develop the technology specific engineering standards which must be applied; • Review the process safety sustenance capital requirements and sign off that these are adequate to

maintain integrity; and • Approve major projects from a process safety perspective.

Technology-based and Functional Expert Panels

These Expert Panels currently focus on:

• Ammonia; • Ammonium Nitrate (including Nitric Acid); • ChlorAlkali and Chlorine; • Explosives; • Initiating Systems (IS); • Underground Safety; and • Instrument, Electrical and Control Engineering.

Significant Risk Working Groups

Orica is also involved in other generic activities that involve significant risk. Significant Risk Working Groups have been established in parts of the Company to develop best practice standards and guidance. These groups may change as the Company's asset base develops. Our current Significant Risk Working Groups are:

• Dust; • Forklifts and Vehicles on Site; • Flammables; and • Storage and Handling of Dangerous Goods.


• In response to stakeholder feedback, in 2009 the Board initiated a review of the environmental risks associated with the manufacture, transport and customer use/storage of sodium cyanide. A full review was undertaken to identify the risks, controls and improvement opportunities. Transportation was identified as the highest risk associated with this product and we will continue to work with product carriers in 2010 to mitigate this;

• The ChlorAlkali Expert Panel has been formed and its terms of reference, consultation processes and remits established with the key risk areas to be highlighted for further study during the year;

• A Mining Services/Minova cross business Underground Safety Expert Panel has been convened and issued a Basis of Safety for underground mine activity and developed and issued a Customer Site Risk Review. Work is ongoing in this important area as work underground is a growing part of the Company's operations and the source of several recent incidents, including fatalities;

• The Ammonium Nitrate Expert Panel issued a code of practice; • The Explosives Expert Panel completed and prototyped the Packaged Explosives audit protocol and

conducted several audits; • In the area of Transport Safety, the Chemicals group has undertaken transport risk assessments of

bulk and packaged goods operations in Australia and New Zealand the Right Product, Right Tank initiative has been rolled out to ensure critical controls are appropriately identified and applied with the aim to unify transport standards and expectations. In addition, the Chemicals Australia operations have rolled out a training and awareness programme across the logistics and commercial


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team to address the Chain of Responsibility legislation that impacts the whole supply chain from producer to transporters to customer; and

• Periodic Hazard Studies were undertaken in accordance with business plans.


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Incident Management

Our Incident Management SH&E Model Procedure defines our requirements for the immediate action, classification, investigation and reporting of SH&E and Physical Security incidents.

We are committed to effectively managing all events which cause or have the potential to cause injury, illness, damage or loss to Company assets, damage to the environment or public alarm and/or are potentially notifiable to the relevant statutory authorities, including matters which may have national security implications involving High Consequence Dangerous Goods.

This includes incidents arising from Company operations or products, both on and off site, and incidents involving contractors who are, or should be, under Company control.

Our approach also covers other SH&E and Physical Security events which have the potential for learning or require corrective action.

New employees receive induction training covering:

• Their responsibility for reporting incidents, injuries and illnesses; • The statutory powers and duties of SH&E Representatives and other people in relation to incidents

and occupational injuries/illnesses; and • Legislative requirements for reporting and preserving the scene and other evidence for specified

types of incidents.

All Line Managers receive refresher training in these requirements on appointment and at least every four years. Sufficient people are trained in root cause analysis to participate in incident investigation teams.


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Due Diligence

Our SH&E due diligence processes are a vital part of our internal benchmarking and compliance assurance approach.

Corporate SH&E Auditing Our Corporate SH&E Auditors perform their auditing activities at the request of the Orica Limited Board of Directors. They gather information on the effectiveness of sites SH&E management systems, their compliance with the SH&E Model Procedure key requirements, their management of significant risks and potential environmental legacy issues.

Sites are selected for audits using a risk-based prioritisation system, which aims to best utilise the resources available. The results of the prioritisation exercise are published as an annual auditing plan, which is approved by the Corporate SH&E Manager as being representative of Orica's risk profile. The findings of these audits are reported to the site teams, Group General Managers and the Corporate SH&E Manager. They are then filed in the Corporate Auditing Database for reference purposes.

Each audit is accompanied by a series of recommendations for prioritisation and action by the site and business management teams.

The Letter of Assurance

Each year our business groups are required to prepare a Letter of Assurance to the CEO and Executive Director of Finance on their SH&E, physical security and financial performance. The Letter of Assurance process enables the CEO and Executive Director of Finance to assure the Board that our systems are being effectively implemented.

The process is a holistic statement of compliance and performance as well as a gap analysis for operating sites, which can be used by management to quickly identify areas for focus. It also assists in providing assurance that our employees work in a safe environment, free of corruption and bribery and in accordance with legislative requirements.

The Financial Letter of Assurance process is supported by the Company's annual Internal Audit and Risk Management programmes (approved by the Board Audit and Risk Committee).

The SH&E Letter of Assurance submissions from each business group are reviewed each year by the Corporate SH&E Manager.


The new risk-ranking model for Corporate SH&E Auditing is now well established and has facilitated long range scheduling. Consequently the compliance to auditing schedule performance has improved with a reduction in the number of audits cancelled or deferred. Risk profiling of newly acquired sites has continued.

Improvements have been made in the SH&E Significant Risk Audits protocol to align it with the Periodic Hazard Study process undertaken by the businesses. This has resulted in an increased focus on those site risks requiring the greatest ongoing management attention.

The Environmental Audit programme continues to deliver strong results. The generation of very detailed assessments of selected sites (including information derived from Site Contamination Surveys) has resulted in improvements in environmental protection practices as well as allowing effective remediation plans to be developed where contamination has been identified.

The general internal audit programme has been executed and continues to contribute towards continuous improvement of the internal control environment.


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Code of Conduct

Orica acknowledges the need for directors, executives, employees and contractors to observe the highest ethical standards of corporate and business behaviour. Orica has adopted a Code of Conduct (entitled: Your Guide To How We Do Business) which applies to all countries in which Orica operates. The Code of Conduct sets out the standards of business conduct required of all employees and contractors of the Company. It is aimed at ensuring the Company maximizes its good reputation and that its business is conducted with integrity and in an environment of openness.

The Code of Conduct provides clear direction and guidance with regard to expected standards of behaviour and conduct with respect to (amongst other things):

• Safety, health and environment; • Protection of information and the Company's resources; • Competition law and trade practices compliance; • Privacy; • Conflict of interest; • Insider trading and dealing in securities; • Equal employment opportunity and harassment; • Gifts and benefits; • The prevention of bribery and facilitation payments; and • Prevention of, and dealing with, fraud.

Managers and supervisors must take all reasonable steps to ensure their staff and contractors are aware of and comply with the standards in this guide. This includes ensuring their staff and contractors have received appropriate training. The Code of Conduct is available on the Company intranet and internet site and is included in the New Starter Kit for new employees. Training in the Code of Conduct is further supported by Trade Practices training for key staff including line management, sales and marketing and procurement teams.

The Code of Conduct is periodically reviewed and approved by the Corporate Governance and Nominations Committee and processes are in place to promote and communicate the Code of Conduct and relevant Company policies and procedures.

The Code of Conduct is overseen by the Orica Business Conduct Committee comprising the Executive Director Finance, General Manager - Human Resources and Communications, the Group General Counsel and the Chief Risk Officer, who review compliance with the Code of Conduct over the relevant reporting period and make recommendations to the Audit and Risk Committee to address any systemic issues.

Our "Speak Up Line"

An integrity hotline (the Speak Up Line) and associated website and email facility has been established to enable employees to report (on an anonymous basis) breaches of the Code of Conduct. If a report is made, it is escalated within internal management for investigation and action.

In 2009 the Speak Up Line received 20 reported incidents via the hotline or email. One call was received on the Speak Up Line related to a minor allegation of bribery. The allegation was fully investigated and the employee was terminated for several breaches of our Code of Conduct.

Political Lobbying

Orica does not contribute funds to any political party or candidate for election. We do, however, actively engage with relevant public agencies in all countries where we operate. It is also sometimes necessary for us to participate in the political process to advance our views on public policy in the best interests of value creation for Orica. This process is managed by Orica Corporate Affairs.


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Donations The equivalent of dividends payable on a shareholding of approximately 0.5 per cent of the Company's ordinary issued capital is allocated for donation at the direction of the Corporate Governance and Nominations Committee.

From the amount allocated for corporate donations, Orica matches employee Dare to Share contributions and may support worthwhile causes overseas. The amount remaining is allocated to the Orica Community Programme and is distributed to selected Australian charitable organisations in accordance with published criteria.

In addition Orica's operations contribute to their local communities with donations, sponsorship and practical support.

Orica's policy is not to make political donations.

Our Activities in 2009 The Code of Conduct has replaced Orica's Code of Ethics. It was amended to take account of recent developments in laws and practice, has been expanded in scope and includes more dilemma type questions and answers to increase the engagement of the code with a wider, more international audience.

The Code has been progressively rolled out in the Orica businesses, has been included in new employee starter packs and also been included in employee training and compliance sessions.


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2009 Case Studies Below are short summaries of our case studies in 2009 under the categories:

• Product Stewardship; • Safety & Health; • Environment; and • People & Community.

Click on the links to be taken directly to each case study.

Product Stewardship Case Studies

Dulux's Sustainable Products Dulux® Australia is reducing its impact on the environment by taking a whole of lifecycle approach to create the most sustainable products and end of life solutions.

Chemicals Duty of Care Orica Chemicals has established new business processes and systems to ensure their products meet legal and duty of care requirements.

Waste Paint Management Dulux® is helping its customers "do the right thing" with EnviroWash and EnviroSolutionsTM products.

Latin America Wins Award Orica Chemicals Latin America received the 2009 Responsible Care® Award after successful re-certification for the Responsible Care® Management System.

Minova Reduces Waste Minova reduced the packaging associated with its Airtite product by over 90 per cent using innovative packaging.

Recycling Packaging at OMS Orica Mining Services in Helidon improved their recycling process for polystyrene trays used to transport detonators.

Dulux Wins Supplier Award Dulux® was awarded the 2008 National Supplier of the Year at the Mitre 10 National Conference.

Reusing Packaging at Yarwun

Orica Mining Chemicals has designed an IBC that can be easily disassembled, significantly increasing the reusability of the boxes.

A Powder Coated Promise Orica Powder and Industrial Coatings New Zealand won the Westpac Supreme Award in the 11th annual Westpac Enterprise North Shore Business Excellence Awards.

Safety & Health Case Studies

One Million Hours Injury Free

Orica Mining Services in Brownsburg achieved one million hours injury free - a first for the site.

SH&E Focus Day at Lae More than 80 employees from Mining Services, Chemnet and DuluxGroup in Papua New Guinea attended a SH&E Focus Day to refocus after the Christmas break.

Keeping Safety Top of Mind Orica Mining Services ensures safety is kept top of mind by installing an interactive online widget to provide daily updates on SH&E performance.

Rocklea Rocket Reduces Risk DuluxGroup's Rocklea manufacturing facility upgraded the labelling and manual filling processes, delivering significant results in safety and productivity.


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Driver Training in Argentina 40 employees at Orica Argentina participated in a safety course on how to handle light trucks.

Selleys Cuts Manual Handling

Selleys® installed a bulk powder handling system at the Padstow factory to reduce manual handling.

0-5-30 Wellness Programme Orica Mining Services Brownsburg developed the "0-5-30" wellness programme to promote three key lifestyle habits.

The 10,000 Steps Challenge Paul Foote from Selleys® averaged 22,000 steps a day in the 10,000 Steps Challenge.

Blasting by Remote Control Argentina's first electronic blasting by remote control was completed at the Alumbrera mine site.

Fire Safety in Poland Minova Arnall celebrates having its own fire brigade for 40 years by coming fifth in regional competitions.

Melbourne Safety Conference

Minova's SH&E representatives met in Melbourne for their inaugural Global SH&E Conference.

Environment Case Studies

Abatement in the Philippines Nitrous oxide abatement technology is installed on Orica Mining Services' nitric acid plant in Bacong.

OMS India's IMS Certification Orica Mining Services achieves certification for their Integrated Management System in just four months.

Dulux NZ's ISO Certification Dulux® becomes the first paint manufacturer in New Zealand to achieve ISO 14001 certification.

Spring Cleaning at Yarwun The team at Yarwun safely clean up more than 30 tonnes of waste material, approximately 90 per cent of which is expected to be recycled.

The Beaver Test A local beaver family gives Minova Arnall's water treatment process their tick of approval.

AcraTex's Green Challenge Dulux® AcraTex implements a 100-Day Green Challenge with outstanding results in energy, water, waste and behaviour change.

Introducing Moss the Kiwi A Kiwi chick has come under the protective wing of Yates® New Zealand after being hatched in January.

Saving More Than Steam Orica ChlorAlkali saved A$25,000 per year by reducing steam leaks from steam traps on site in Botany.

Padstow's Clean Up Milestone

Volunteers rolled up their sleeves at Padstow to celebrate the 10th anniversary of their involvement in the annual Clean Up Australia Campaign.

MIEX's Maine System MIEX® is installed in Maine and will remove up to 80 per cent of dissolved organic materials from drinking water.

More Heat For Minova Minova Arnall reduced energy costs while significantly increasing the heating capacity of boilers on site.

Turning Trash Into Treasure The ChlorAlkali site at Laverton saved more than 185 tonnes of industrial waste from being dumped in landfill.

Gracefield's Garden Gracefield plant a vegetable garden to celebrate the success of their Green Office Programme.

Laverton's Significant Savings

The ChlorAlkali site at Laverton saved nearly A$100,000 per year through energy and water efficiency projects.


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Our New Eco Warriors Orica's Head Office Accounts Payable department has reduced paper consumption by converting paper-based invoices to electronic format.

Energy Efficiency at KI Orica Mining Services at Kooragang Island upgraded their site air compressors and desiccant air dryer.

Alkali Tank Farm Completion A new tank farm and piping system has been installed at Chemnet Mount Maunganui to ensure the safe operation of our blended alkalis business.

Smarties at Head Office Orica's Head Office in Melbourne ran the Green Office Programme to increase sustainability awareness and drive positive and lasting change.

People & Community Case Studies

Helping Habitat for Humanity The Dulux® marketing team in Auckland help Habitat for Humanity® build a home for a family in Takanini.

Bataan's Coastal Clean Up Orica Philippines Inc. participated in the annual international coastal clean up day for the third time.

Our Community in India Orica India celebrated their Golden Jubilee, commemorating their 50th year of operation.

Oxfam Biggest Coffee Break Orica Chemicals in Mount Maunganui and Auckland organised a fund raising event for coffee growers in third world countries.

Gracefield's Beach Day Gracefield celebrates the achievements of their 100 Day Sustainability Challenge by taking their enthusiasm to the beach.

Our Values in Venezuela Orica Mining Services in Venezuela developed activities to train employees in implementing health related plans and prevention programmes.

Chile's Community Ties Orica Chile continued to forge strong ties with the community through various events held during the year.

Yates Launches Kids Website Yates® launches a new website specifically designed for children. The website, called Garden Greenies, encourages kids to get active in their gardens.

Sharing Deliver the Promise Our Deliver the Promise culture is shared with employees in Minova, North America and an Orica Mining Services joint venture in China.

Global Graduate Programme Orica's Global Graduate Programme expands beyond Australia and New Zealand to include graduates in Asia and Europe.

Our Women in Business Three employees in Papua New Guinea enter the Westpac Women in Business Award.

Meet Orica's Oldest Employee

Con Cannon from DuluxGroup celebrates his 89th birthday at Dulux®'s Chippendale Trade Centre.

The Watermelon Challenge Yates® helped budding gardeners test their skills in watermelon growing through the Junior Landcare Watermelon Challenge.

Employees Run For Home Orica Philippines commercial team completed a three kilometre fun run to support Habitat for Humanity® in local efforts to build new homes.

Sweet Deals for Locomotives Dulux® Protective Coatings sponsored the Australian Industrial Railways Narrow Gauge Restoration Project to restore locos historically used to haul sugar cane.

ERS Takes 25,000th Call Orica's Emergency Response Service (ERS) handled its 25,000th call in August this year.


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Overview Synthetic chemicals are very much part of our modern lives. Chemicals, such as disinfectants, pharmaceuticals, paints, fertilizers and pesticides, sealants and adhesives, pigments, dyes, plastics, explosives, solvents, and surfactants contribute to basic human needs and improve the quality of our lives. However, in some cases the very properties that make these chemicals useful to us can also make them a threat to human health or the natural environment if the products or their packaging are poorly designed, mishandled, misused or disposed of inappropriately.

Our Approach

Our SH&E Standard on Product Stewardship states that: "All Orica controlled businesses shall ensure that they manage, in an ethical and responsible manner, all the SH&E aspects of a product from its initial conception to its ultimate use and disposal. The SH&E implications shall be taken into account prior to the launch of new products and in the selection and development of new processes. The hazards from new products and processes, and the consequent risks, shall be reduced so far as is reasonably practicable to reduce potential SH&E impacts."

We consider potential SH&E impacts when developing products and introducing new formulations and packaging. The life cycle stages of our products are regularly assessed for improvement. This involves looking at where the raw materials come from and how they are packaged and stipulating conditions on the suppliers. We have SH&E management systems in place to protect our employees, our plant and equipment, the community and the environment from damage during the manufacture, storage, handling and transport of our products. When our products leave our direct control and are distributed, sold and used by our customers, we aim to influence the responsible use of the product right throughout the supply chain to its eventual disposal.

Development and Introduction Before developing or introducing a new product considerable attention is given to determine the physical, chemical and biological properties and assessing the potential risks to people and the environment. This activity is regulated under various chemical control legislation in the different jurisdictions we operate such as the National Industrial Chemicals Notification and Assessment Scheme (NICNAS) for industrial chemicals and the Australian Pesticides and Veterinary Medicines Authority (APVMA) for agricultural and veterinary chemicals in Australia, Food Standards Australia New Zealand (FSANZ), and the Environmental Risk Management Authority (ERMA) and New Zealand Chemical Institute (NZCIC) in New Zealand.

For example, Orica Chemicals works closely with NZCIC and ERMA to appropriately reclassify imported chemicals in accordance with New Zealand Hazardous Substances and New Organisms (HSNO) legislation.

Manufacture Before a product is produced on a plant a number of formal hazard studies are conducted to identify any potential SH&E risks and to put in place measures to eliminate or minimise them. Major suppliers of goods and raw materials are assessed on the merits of their SH&E performance alongside the commercial terms. Processes are optimised to ensure maximum efficiency opposite usage of energy and raw materials and to minimise waste. Packaging options are assessed with the aim of ensuring the security of the product and minimising transport and handling issues.

For example:

• Dulux® produce a complete range of premium paints that contain less than 5 grams per litre of volatile organic compounds (VOCs) - Dulux® Wash & Wear and Dulux® Professional EnvirO2. VOCs are volatile organic solvent and petrochemical additives that evaporate from paint during manufacture and application. Traditional oil-based paints contain in excess of 400 grams per litre VOC. Read more in our case study Dulux's Sustainable Products; and


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• Our Minova site in Arnall, Poland have upgraded their boilers to increase heat output, reduce heating costs and reduce pollution through the use of low-sulfur coal. Arnall have also installed solar panels for potable water heating (i.e. enough for employee use). Read more in our case study More Heat for Minova.

Distribution

SH&E performance is an important factor when selecting transport companies for distribution of the products and warehouses for the storage of products. Transport drivers are trained to identify and avert potential SH&E risks at customer bulk storage and other facilities. Desk-top emergency exercises are conducted with the transport companies and the emergency authorities. Records are kept of transport and storage incidents involving the Company's products.

For example, Orica Chemicals conducts bulk delivery audits at customer sites where Dangerous Goods are being delivered, carrier assessments, toll-manufacturing audits and third party warehousing assessments.

Information

Provision of information is an important part of the product stewardship strategy. The label and the material safety data sheet (MSDS) are the primary sources of information provided to the user of all of our products. This is supplemented in some cases with further literature and specification sheets, special training on the handling and use of products, safety posters, videos and direct advice from expert safety advisors, occupational hygienists and others. Product stewardship programmes such as Ammsafe for ammonia, Chlorine Safeguard for chlorine and Solvent Care for chlorinated solvents are designed to ensure the customer has the latest information on the products and how they are safely used. Orica's Emergency Response Service is a further source of information particularly in emergency situations. Customer feedback, complaints and incidents involving the company's products are recorded and the learnings used to improve performance.

For example, Orica Chemicals provides free training for customers in chlorine, ammonia and chemical awareness. Chemnet New Zealand is also able to present approved handler training as required under the HSNO Regulations. Dulux® has partnered with Ecospecifier to assist architects and specifiers, providing access to credible information on environmentally preferred products. Learn more about our Sustainable Specification Guide at www.duspec.com.au.

Disposal Advice is provided on the safe disposal of the products where appropriate. This advice is provided on the label, the MSDS or directly to the customer. All major product groups were subjected to life cycle assessments as part of Orica's Challenge 2010 programme. The actions arising from the life cycle assessments are fed into product and marketing strategies and into business product stewardship plans.

For example:

• The Dulux® EnviroSolutionsTM Waste Paint Hardener turns unwanted water-based paints and water based timber coatings into solid waste for easy disposal. The Dulux® EnviroWashTM system turns water-based paint wash-out into clean water and solid inert waste. Read more in our case studies Dulux's Sustainable Products and Waste Paint Management; and

• Orica Mining Chemicals has developed a collapsible transport container that can be easily disassembled for reuse or recycled. The container is currently being used to transport sodium cyanide to our two international sparge transfer stations in Peru and Ghana. Approximately 25 per cent of the export boxes are currently returned for reuse in Australia. Read more in our case study Reusing Packaging at Yarwun.

Management Product stewardship in the Company is everyone's responsibility, but each business has appointed a product stewardship coordinator who ensures that the various aspects of product stewardship are being attended to


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and that product stewardship plans are in place. Every year each business undertakes a self-assessment based on the International Chemical Council's Responsible Care® Product Stewardship Code of Practice and sets goals for performance improvement. An Orica Product Stewardship Team led by the Corporate SH&E Manager makes sure that good practices are shared across the Company and the manufacturing industry.


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Our Performance in 2009 Our businesses have worked hard to achieve their product stewardship objectives in 2009.

Orica Chemicals

• 32 Life Cycle Risk Assessments (LCRA) were completed in Australia and New Zealand this year. A risk-based approach was taken to prioritising the order in which LCRA's were conducted on Orica Chemicals products, involving SH&E, relevant Product Managers and Regulatory Affairs personnel;

• A Chemicals Product catalogue was recently introduced in Australia to ensure that new "high-risk" products undergo a LCRA. When a new process or product is to be used on a site a modification assessment is also completed prior to introduction or use of the new chemical. Read more in our case study Chemicals Duty of Care;

• Orica Chemicals Latin American retained their certification to the Responsible Care® programme in Chile. Read more in our case study Latin America Wins Award; and

• Orica Mining Chemicals has developed a collapsible transport container that can be easily disassembled for reuse. The container is currently being used to transport sodium cyanide to our two international sparge transfer stations in Peru and Ghana. Approximately 25 per cent of the export boxes are currently returned for reuse in Australia. Read more in our case study Reusing Packaging at Yarwun.

DuluxGroup • Dulux® end-of-product-life solutions provide an innovative way to manage paint waste. Dulux®

EnviroSolutionsTM Waste Paint Hardener turns unwanted water-based paints and water based timber coatings into solid inert waste for easy disposal. Dulux® EnviroWashTM system turns paint wash-out into clean water and solid inert waste. Read more in our case study Waste Paint Management; and

• Dulux® has also introduced a range of certified, low-VOC tinters to provide an environmentally sensitive colour palette of over 2,500 colours. Read more at www.dulux.com.au/applicator/colour/colour-atlas.aspx and in our case study Dulux’s Sustainable Products.

Orica Mining Services

• Orica Mining Services (OMS) Helidon site has improved their recycling process for polystyrene trays used for transporting detonators. Read more in our case study Recycling Packaging at OMS.

Minova

• Our Minova site in Arnall, Poland have upgraded their boilers to increase heat output, reduce

heating costs and reduce pollution through the use of low-sulfur coal. Arnall have also installed solar panels for potable water heating (i.e. enough for employee use). Read more in our case study More Heat for Minova.


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Working With Others Our sustainability challenges are complex. We continue to work with others to identify and implement opportunities for improvement throughout the supply chain. In support of this collaborative approach, our SH&E Policy states that we will:

• Continue to seek ways to efficiently use materials and energy; and • Seek to develop new or improved products and processes to improve the contribution we make to

the quality of people's lives and to minimise the impact on the environment.

Research and Development

We partner with universities, government agencies and other businesses to conduct research and development on our products. We have Orica Research and Development (R&D) Centres in:

• North America - Georgetown, Brownsburg and Watkins; • Europe - Gyttorp; • Africa - Capricorn Park; • India - Gomia; and • Asia Pacific - Kurri Kurri and Clayton.

For example:

• This year we reformulated our Dulux® EnviroSolutionsTM Waste Paint Hardener product for application in the United States trade market. Read more in our case study Waste Paint Management; and

• After five years of research and development using in-house chemists, along with support from students provided by Auckland University, Orica has patented a process that enables waste paint, waste powder coating and chipped waste construction and demolition timber to be converted into a commercially saleable board with some very special properties.

Customers

We work with our customers to mitigate the sustainability impacts of the products we provide. Our Model Procedure on Product Stewardship states that we will "work with customers (and any other people who receive products/services from the business) to ensure the adverse SH&E impacts associated with the distribution, storage, use, recycling and ultimate disposal of products are minimised as far as practicable."

Our approach to working with customers reflects our understanding that our impacts vary across our businesses. For example:

Orica Chemicals

• Conducts bulk delivery audits at customer sites where Dangerous Goods are being delivered. Orica Chemicals also conduct carrier assessments, toll manufacturing audits and third party warehousing audits;

• Meets the tracking and recording requirements required for the delivery of products to customer sites under the New Zealand Hazardous Substances and New Organisms (HSNO) Act;

• Provides free training for customers in chlorine, ammonia and chemical awareness. Chemnet New Zealand is also able to present approved handler training as required under the HSNO Regulations; and

• Works closely with Latin American mining customers to recycle materials where possible. For example, the recovery and recycling of glycol products and oil products used in the emulsification process.


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• OMS successfully completed Argentina's first electronic blasting by remote control this year at the Alumbrera mine site, approximately 1,000km northwest of Buenos Aires. Using Orica Mining Services' SURBS (Surface Remote Blasting System) technology, operators at quarry and surface-mining operations are now able to initiate their electronic blasts remotely from a central point. Read more in our case study Blasting by Remote Control.

DuluxGroup

• Dulux® spent significant time in the field with commercial painters in California, refining their EnviroSolutionsTM Waste Paint Hardener product to help solve the serious environmental issue of illegal waste paint dumping from work sites. Read more in our case study Waste Paint Management; and

• Dulux® was awarded the 2008 National Supplier of the Year at the recent Mitre 10 National Conference in Queensland, Australia. Read more in our case study Dulux Wins Supplier Award.

Minova

• The Minova Australia business have developed a system to enable the supply and use of its entire range of underground injection chemicals in 205 litre drums. These chemicals have traditionally been supplied in 20 litre drums but the above change will enable reduced manual handling, reduced drum and chemical waste plus a significant reduction in transport and packaging costs. The system has recently been approved by the New South Wales mines Department of Primary Industries for underground use with several application projects having now used the system;

• The Minova Australia business have recently developed and trialled a unique dust suppressant system, RD10, for use on unsealed roads or stockpiles. Application trials have clearly shown a dramatic reduction in water truck requirements at one particular mine in North Queensland where a significant reduction in the use of traditional water trucks has been established. In addition to a dramatic saving in water consumption is the key reduction in fuel use, as one application of RD10 will last up to several months; and

• In the USA, Minova modified their packing configuration to include both roof anchoring bolts and base plates in the same pack. This reduces not only the amount of packaging waste but also improves the safe handling and efficiency of use down customer mines. Read more in our case study Minova Reduces Waste.

Suppliers

Our Model Procedure on Product Stewardship requires that "Past SH&E performance, SH&E management practices and commitment to Product Stewardship shall be included in the selection criteria for:

• Suppliers of goods and services involving significant SH&E risks; and • Contract manufacturers, warehouses, distributors and agents.

The SH&E performance of such suppliers of materials and services shall be periodically reviewed. Suppliers of products and services which involve significant SH&E risk shall be required to maintain and provide up to date information regarding the hazards and appropriate use of materials, equipment and services purchased by the Company."

For example, our Chemicals site in Laverton, Victoria, Australia, worked closely with their water service provider in 2009 to implement water-efficiency programmes and reduce annual water consumption by 10 million litres, at a total saving cost to the business of more than $75,000 a year. Read more in our case study Laverton's Significant Savings.


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Industry Partnerships Our industry partnerships help us improve our sustainability approach through collaboration and sharing of ideas.

The International Council of Chemical Associations

The International Council of Chemical Associations (ICCA) is the world-wide voice of the chemical industry, representing chemical manufacturers and producers all over the world. It accounts for more than 75 per cent of chemical manufacturing operations with a production exceeding US$1.6 trillion annually. ICCA promotes and co-ordinates Responsible Care® and other voluntary chemical industry initiatives. We are a signatory to the ICCA Global Charter and have adopted their Responsible Care® programme.

Responsible Care® The Responsible Care® programme is an initiative of the international chemicals industry aimed at improving its safety, health and environment performance and communicating openly with all sections of the community. The programme was started by the Canadian Chemical Producers' Association in the mid eighties. There are now chemical industry associations in 45 countries participating in the programme. As a participant in Australia, New Zealand and Latin America, we are required to sign on to a set of Guiding Principles and to implement a series of Codes of Practice:

• Community Right to Know; • Environment Protection; • Manufacturing Process Safety; • Employee Health and Safety; • Storage and Transport Safety; and • Product Stewardship.

We incorporate the commitments of the Guiding Principles and the requirements of the Codes of Practice in our Safety, Health and Environment Management System. This System is adopted by all Orica operations.

In addition to meeting the commitments and requirements of the programme, Orica participates in local community liaison groups, Open Door programmes and safety, health and environment performance surveys.

Read more about Orica Chemicals Latin America winning the 2009 Responsible Care Award in our case study Latin America Wins Award.

Plastics and Chemicals Industries Association (PACIA)

We are a member of the Plastics and Chemicals Industries Association (PACIA), the pre-eminent national body representing Australia's fourth largest manufacturing sector. PACIA members include importers and distributors, raw material suppliers and chemical manufacturers, plastics fabricators and compounders, plastics and chemicals recyclers and service providers to the sector.

Last year we participated in the development of, and were a launch signatory to, PACIA's Sustainability Leadership Framework. The Framework aims to provide the platform for PACIA to take a leadership role in delivering programmes, tools and policy, and for members to take leadership actions in sustainability.

Orica is represented on PACIA's Sustainability Leadership Implementation Council. The Sustainability Leadership Implementation Council takes primary carriage for supporting the industry to adopt sustainability as a core strategy and position the industry for the future. The Council is focussing on the implementation and on-going development of the Sustainability Leadership Framework as the principal mechanism to achieve this, ensuring the relevance and accessibility of the Framework for the breadth of the PACIA membership. The Council was formed in September 2008 and meets on a quarterly basis.


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Security Sensitive Ammonium Nitrate (SSAN) Principles

The Council of Australian Governments (COAG) has developed principles regarding the use, manufacture, storage, transport, supply, import and export of security sensitive ammonium nitrate (SSAN).

Under the COAG principles, all ammonium nitrate, ammonium nitrate emulsions and ammonium nitrate mixtures containing greater than 45 per cent ammonium nitrate (excluding Class 1 products and aqueous solutions) have been designated as security sensitive ammonium nitrate (SSAN) and so will be subject to the COAG Principles and resultant legislative changes.

Based on this definition, Orica's Ammonium Nitrate Prill and all Emulsion products are SSAN and each product will need to conform with the COAG principles and legislative requirements enacted in each State and Territory.

Orica believes that as an industry, the mining and construction sector needs to take a leadership role in diligently managing the handling of SSAN. It is therefore a key requirement that our customers are also committed to complying with the regulatory changes.

Read more about how Orica Mining Services is responding to these principles via www.oricaminingservices.com.

International Cyanide Management Code

The "International Cyanide Management Code For The Manufacture, Transport and Use of Cyanide In The Production of Gold" (Cyanide Code) is a voluntary industry program for the gold mining industry to promote:

• Responsible management of cyanide used in gold mining; • Enhance the protection of human health; and • Reduce the potential for environmental impacts.

Companies that become signatories to the Code must have their operations audited by an independent third party to demonstrate their compliance with the Code.

Audit results are made public on this web site to inform stakeholders of the status of cyanide management practices at certified operations.

Orica is a signatory to the Cyanide Code.

The Australian Paint Manufacturers Federation

The Australian Paint Manufacturers Federation (APMF) was established in 1947 to represent the interests of Australian paint manufacturers. It was incorporated in New South Wales in 1986.

The principal objectives of the APMF are:

• To advance the theory and practice of paint technology in Australia; • To promote efficiency and safe work practices; • To foster international co-operation and standards; and • To advance, encourage and protect the interests of its members.

Orica is a member of the APMF.

Coatings Care®

The Coatings Care® programme is an initiative of the international coatings industry aimed at improving its


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safety, health and environment performance and communicating openly with all sections of the community. The programme was launched internationally in 1996 with Australia being one of the first countries to commit to Coatings Care®. Coatings Care® is now well established in the United States, Canada, Europe, Japan and Mexico.

Coatings Care® is administered in Australia by the Australian Paint Manufacturers Association Inc. (APMF). Participating companies are required to commit to a set of guiding principles and to implement a series of Codes of Practice relating Manufacturing Management, Transport and Distribution, Product Stewardship, Community Responsibility Code and Evaluation and Improvement.

DuluxGroup has incorporated the commitments of the guiding principles and the requirements of the Codes of Practice in its Safety, Health and Environment Management System. This System is adopted by all DuluxGroup operations. DuluxGroup is a signatory to the Guiding Principles and participates fully in the programme.


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Dulux's Sustainable Products DuluxGroup

Australia

Dulux® Australia is committed to reducing its impact on the environment by taking a whole of lifecycle approach to its product offering. Achieving ecologically sustainable design is top priority, but we also recognize that the issues regarding our environment, and how our building designs can affect it, are complex.

We are working with others to promote sustainable product. For example, we are a member of the Green Building Association of Australia, a partnership aimed at developing sustainable products for the property industry and the adoption of green building practices in Australia. By partnering with Ecospecifier, we also aim to assist architects and specifiers by providing access to credible information on environmentally preferred products. Learn more about our Sustainable Specification Guide at www.duspec.com.au.

Below is a summary of our sustainable product offerings to date.

Sustainable Paint

• We are proud that both Dulux® Professional EnvirO2 and Dulux® Aquanamel are the first carbon

neutral paints certified by the Australian Government's Greenhouse Friendly programme; • We strive to reduce Volatile Organic Compounds (VOCs) in all our paint products. VOCs are solvent

and petrochemical additives that evaporate from paint during manufacture and application. We produce a complete range of premium paints that contain less than 5 grams per litre of VOCs - Dulux® Wash & Wear and Dulux® Professional EnvirO2. Traditional oil-based paints contain in excess of 400 grams per litre VOC. The low VOC and low odour formulation contribute positively to indoor air quality and reduced air pollution. The Dulux® EcoChoiceTM symbol is displayed on our paint products with low VOCs; and

• We have introduced a range of certified, low-VOC tinters to provide an environmentally sensitive colour palette of over 2,500 colours. Read more by visiting the Dulux Colour Atlas on-line at www.dulux.com.au/applicator/colour/colour-atlas.aspx.

End of Life Solutions

• Dulux® EnviroSolutionsTM Waste Paint Hardener turns unwanted water-based paints and water based timber coatings into solid inert waste for easy disposal; and

• Our commitment to sustainability extends to the cleaning up process. The Dulux® EnviroWash system is an innovative, water-based paint wash-out and treatment system that turns paint wash-out into clean water and solid inert waste. Dulux® EnviroWash collects contaminated water from painting equipment during washout. The solids are strained off and dry to a small


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lump safe for landfill. The clean, recycled water can be safely disposed of onsite. Dulux® EnviroWash is efficient and fast - separating solids from 160 litres of water in only 20 minutes. It can handle up to 800 litres of water and every type of acrylic paint in Australia.

Read more about end of life solutions in our case study Waste Paint Management.

Commercial Solutions

• Powder coatings - Free of solvents, heavy metal pigments and VOCs, Dulux® Powder Coatings are 100 per cent solid and emit no fumes or dangerous gases;

• Texture coatings - Dulux® AcraTex is a market leader in commercial and residential masonry protection and restoration systems. These premium coatings extend building life and reduce maintenance cost;

• Protective coatings - Dulux® Protective Coatings provide long-term corrosion resistance for structural steel. Our range includes solvent free, low VOC and waterborne technologies for sustainable building design;

• Decorative coatings - Dulux® is committed to helping architects and specifiers get the most from our extensive product and colour range. We offer an extensive range of premium products with low VOC options, special effect finishes and textures; and

• Intergrain - Our Intergrain timber finishes are high performance products developed for protecting timber in harsh Australian conditions. The water-based range is easy to clean up, is fast drying with low odour and emits substantially less VOCs to the atmosphere than traditional oil based timber finishes.

Corrosion Protection

Our corrosion protection coatings are designed to consider their total impact on the environment, their ability to provide longer protection for extended building design life and total embedded energy. For example:

• Dulux® Aquagalv is a waterborne, heavy-duty two-pack, self-curing inorganic zinc silicate primer. Its low VOC levels, minimal thermal inputs, nil corrosive chemical surface treatments and superior corrosion protection make it the ideal green alternative to hot dip galvanizing; and

• Luxafloor ECO2 is a two-pack, waterborne epoxy floor coating for interior use. The product's total VOC level is less than 10 grams per litre and has virtually no odour, making it suitable for projects where stringent indoor air quality standards must be maintained, such as the refurbishment of hospitals, aged care facilities and schools.


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Chemicals Duty of Care Orica Chemicals Global

We have established new business processes and supporting systems to help ensure that all scheduled poisons, drug precursors, explosive precursors and chemical weapon precursors imported, exported, stored and sold to customers meet legal and duty of care requirements.

Drug Precursors

The requirements for managing drug precursors are complex. We manage a range of controls for drug precursors, including:

• Sales restricted to "account customers" only; • Completion of End User Declarations by customers; • Written purchase orders; • Completion of suspicious orders checklist; • Restriction on customer pick-ups; • Supply delayed by at least 24 hours; • Records of all transactions must be kept; and • No consignment orders.

Explosive Precursors

While there are currently no legal requirements specific to explosive precursors that have been identified in Council of Australian Government's List of Chemicals of Security Concern, regulations are currently under development. We have specified a requirement for a suspicious orders checklist to be completed for all sales of explosive precursors. Orica management and the relevant authorities must be notified of suspicious orders immediately. Records of all sales transactions must be kept.

Chemical Weapon Precursors The controls help to ensure scheduled chemical weapon precursors are not imported or exported without Orica obtaining a permit from the relevant enforcement agency. Import and export permits may apply at a company level for a specified material, supplier and customer. For domestic trade in scheduled chemical weapons the business has specified a requirement for a reminder to complete a suspicious orders checklist. The reminder (pop-up) applies to the sales order entry process only. Sales are limited to account customers only and records of all transactions must be kept. A condition of Orica's chemical weapon permit is to supply details of all chemical weapon precursor imports or manufacture to the Defence department annually.

Scheduled Poisons The new controls help ensure that Orica and our customers are appropriately licensed to supply or obtain a regulated scheduled poison. Orica and customer licences are loaded into Speedscan. If a customer or Orica is not appropriately licensed to supply or obtain the regulated material the order will be blocked. The list of regulated scheduled poisons and regulations surrounding their sale, manufacture and use differ between states. For example, in some states, certain industries or professions are exempt from obtaining a licence for a regulated material. The controls have captured these state differences. In situations where a customer is exempt from the drugs and poisons legislation an exemption form is completed and loaded into Speedscan. For regulated materials a customer must obtain a licence for each state they have a delivery address. Records of all sales transactions must be kept.


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New Product Introduction Process

Our paper based system for introducing new products or requesting changes to the storage or packaging of existing products has been replaced with an electronic approval system. The electronic request forms are initiated by the Product Manager and the process involves both commercial and regulatory approval steps to help ensure new materials are classified correctly, a material safety data sheet (MSDS) has been prepared, risk assessments have been conducted where required and Orica is licensed to trade and store the product.

BIGUNS (Trans-Tasman Database) Update

The BIGUNS database contains inspections performed at customer chemical storage facilities to ensure that they are safe to deliver to. Electronic controls are also being investigated to ensure that all new bulk liquid customers undergo a BIGUNS inspection prior to the first delivery.


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Waste Paint Management DuluxGroup

Australia

Not only does Dulux® aim to make the best paint in the world, we also aim to provide the most responsible and innovative disposal options. This helps to make it easier for our customers to "do the right thing" and differentiate themselves in an increasingly environmentally-aware marketplace. In 2009 we have worked hard to develop an integrated approach to managing left over paint from the retail and trade sectors.

EnviroWash

EnviroWash helps trade painters easily and effectively turn water-based paint wash-out into clean water and solid inert waste. We also help them meet their legal due diligence requirements by setting up the correct disposal agreements with their local authorities when they purchase an EnviroWash unit.

With sales in Australia, New Zealand, United Kingdom, South Africa, Mozambique and the United States, EnviroWash is adding value to our customer's businesses around the world; providing a clear point of market differentiation for their environmentally-conscious customers.

While working at Rice University in Houston, Texas, USA, Te-Ko Painting Contractor's Supervisor said "The EnviroWash System saves time on the job by offering a safe and convenient place for Te-Ko's painters to wash there painting tools and removes the headache of having to deal with paint washing waste."

Dulux's EnviroWash unit, 160 litre. EnviroWash unit in use at Rice University in Houston, Texas, USA.


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EnviroSolutionsTM Waste Paint Hardener

Dulux® EnviroSolutionsTM Waste Paint Hardener turns unwanted water-based paints and water based timber coatings into solid inert waste for easy disposal. The product is a consumer-ready solution to a broad-scale community waste issue.

In 2009 we reformulated the product for application in the United States trade market. We have spent significant time in the field with commercial painters in California, refining our approach to help solve the serious environmental issue of illegal waste paint dumping from work sites. In 2010 we will investigate recycling or reuse options for the hardened paint "product".

Adrian Krieg operates his own painting and decorating business in Australia. When asked about the product he said "Dealing with unwanted, leftover paint has been an ongoing issue for our business. Dulux®'s Waste Paint Hardener is great - it makes 'doing the right thing' with our waste paint a whole lot easier!"


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Latin America Wins Award Orica Chemicals

Chile

Orica Chemicals Latin America (OCLA) received the 2009 Responsible Care® Award for its successful re-certification for the Responsible Care® Management System by the Chilean Industrial Chemicals Association. The award was celebrated at the Responsible Care® Day Ceremony at the Federation of Chilean Industry Auditorium with the assistance of government authorities and the industrial sector of Chile. This is the second time that OCLA has won this important award, the first time being in 2006. Roberto Hill, Managing Director of OCLA, congratulated his Chilean employees for their permanent concern and dedication to safety, health and environmental procedures and behaviour. The SH&E Area team, Safety Committee and Pamela Straube (Quality Assistant) also received additional recognition for their contribution to the award success.

Sergio Barrientos, President of the Responsible Care® Committee, with

Orica's Ricardo Lahsen, Pamela Straube and Andrea Valenzuela.


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Minova Reduces Waste Minova

Kentucky, USA

Minova have reduced the packaging associated with their Airtite product by over 90 per cent!

Taking out the trash from your home can be bad enough, but imagine if you had to carry that trash out from an underground mine.

Minova USA's Airtite products are a range of sealants used in underground mines. Traditionally the product has been supplied in 34lb (15kg) pails. Once the sealant had been used the pails and lids had to be brought up to the surface and thrown away, creating waste for the mine to dispose of and extra work hauling the waste up to the surface. The pails can also be difficult to handle in the confines of the lower coal seams found near Minova USA's facility in Kentucky.

Last year the Minova team began trialling new packaging with a major customer. Instead of pails, the Airtite sealant was placed in heat sealed shrink-wrap. The bags of Airtite are then distributed in a custom built palletainer. The new packaging creates less than 10 per cent of the waste of the old packaging.

The new Airtite packaging approach provides the following benefits:

• The new bags are easier to handle in confines of the mine;

• Each bag weighs 25lbs (11kg) compared to the 34lbs (15kg) pails; and

• The palletainer is only 24 inches (61cm) high, compared to the pails, which were 36 to 46 inches (91 to 117cm). This is particularly relevant in lower coal seams applications where the height range is only 36 to 38 inches (91 to 97cm). The lower height of the palletainer has received positive feedback from the customers.

Minova USA's Technical Sales Representative, Bill Wooten, explained that the new packaging meets required quality standards. "We let that material sit outdoors through all types of weather - hot, humid, cold, freezing rain and snow -and when we took it underground about seven months later and used the material, it just did marvellously well" he said.

The trial was conducted with one of Minova's largest customers. By working together, Minova were able to ensure that the solution would be accepted by customers and also improved their relationship, or as Bill says, "We are not just viewed as a vendor, but as a partner in solving problems."

Mike Alexander from Minova in Kentucky illustrates the

significant reduction in waste from using Minova's new

Airtite packaging.

Airtite traditional packaging (left) and new

Airtite-in-a-Bag packaging (right).


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Recycling Packaging at OMS Orica Mining Services

Helidon, Queensland, Australia

Orica Mining Services' (OMS) Helidon site has improved their recycling process for polystyrene trays used for transporting detonators.

Helidon produces non-electric initiating systems for blasting. The system consists of a detonator attached to a piece of plastic tubing. The plastic tubing is used to transmit the blast signal to the detonator in the required sequence for the blast.

Helidon does not manufacture the detonator (the metal piece attached to the plastic signal tube in the picture). Instead, we source these from our plants in Deer Park (Australia), Weihai (China) and Chile. The detonators contain explosive and need to be handled with care, so they are supplied in polystyrene trays and packaging pieces.

While some trays and packaging are reused at the Deer Park site, the rest of Helidon's trays and packaging have been sent to a recycling depot at a cost of over $2,000 per month.

Polystyrene is full of air so it is inefficient to transport in its original state. Trevor Van Dyk, Helidon's Site Services Co-ordinator, recognised the issue, saying "I thought there must be better alternatives to reduce transport costs, thus saving us money and benefitting the environment." Trevor introduced a polystyrene compactor to the site and the trays and packaging are now ground up to create blocks of compacted polystyrene compressed to a ratio of 40:1.

Helidon's recycler now picks the polystyrene up for free and pays Orica $200 per tonne for the polystyrene - a positive environmental and economic outcome! The initiative is now being considered for our OMS site in the Philippines.

Helidon produces non-electric initiating systems for blasting.

Polystyrene trays are now compacted for more

efficient recycling.


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Dulux Wins Supplier Award DuluxGroup

Australia

Dulux® was awarded the highest supplier honour at the recent Mitre 10 National Conference on the Gold Coast in Queensland when it was awarded the 2008 National Supplier of the Year.

The award is great recognition for the hard work and dedication of the entire Dulux® sales, marketing, distribution and customer service teams as it is voted upon by the member base of Mitre 10, store owners. In its 13th year, the award recognises and ranks suppliers to the Mitre 10 store network across Australia in the key areas of Sales and Marketing Support, Delivery Performance, Customer Service and Supplier Representation.

"The award is a true reflection of the hard work and dedication from the entire Dulux® team in what have been tough competitive conditions this year," according to Darren Barmby, National Account Manager for Mitre 10. "It is such a prestigious award to win in the Australian hardware industry and we are very proud and excited to again have been recognised in this way".

The Dulux® team has won the award now in 11 of the past 13 years and never accept that a strong previous record will be enough to deliver the result.

"Each year we strive to raise our standards while we continue to find new and innovative ways to support and grow alongside of our customers strategies," said Darren. "Many people across the entire Dulux® network have made solid contributions to the winning of this award including many of our non customer facing teams. Each year we measure our performance against previous years and develop solid plans to ensure we can continue to improve our performance and service levels to meet customer demands."

In a pleasing evening for DuluxGroup, Orica Woodcare finished in second place with Selleys® also ranking within the top five suppliers nationally. To cap off a wonderful evening Yates® were also recognised for their efforts, collecting the Supplier of the Year award in the Garden category.

A great result not only for Dulux® Australia but for the entire DuluxGroup team!

Julia Myers, Greg Warren and Darren Barmby accept the

Mitre 10 National Supplier of the Year Award for the 11th time!


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Reusing Packaging at Yarwun Orica Chemicals

Yarwun, Queensland, Australia

Orica Mining Chemicals distributes over 80,000 tonnes of sodium cyanide to 20 countries around the world. The product is typically delivered to our customers in Intermediate Bulk Containers (IBCs) that are constructed from timber. This packaging provides a safe and secure method for transportation of sodium cyanide. Once used by customers, the packaging has historically been disposed of by burning or burying it in tailings dams, which is not ideal for the environment. More than 4,000 tonnes of packaging were being produced per annum. "In Australia, we have always returned wooden boxes to the manufacturing plant in Yarwun for reuse," says Chris Avramopoulos, General Manager, Orica Mining Chemicals. "With the growing focus on the environment, it was important to find a solution for our international customers."

The business has now designed an IBC that can easily be disassembled with the majority of wood able to be reused. "The collapsible box is the key, as this allows over 300 box equivalents to fit into every shipping container and be economically returned to Yarwun," says Mike Sparrow, Technical and Projects Manager. "There were a lot of steps involved because the returned wood requires quarantine inspection and approval. We worked co-operatively with the authorities to achieve this result."

Orica Mining Chemicals has initially started its recycling programme by returning packaging from our two international sparge transfer stations in Peru and Ghana. This will see approximately 25 per cent of export boxes returned for reuse in Australia.

The business has also progressed with two customers to return boxes and is in discussion with many others. "We see this not only as great for the environment, but with our customers becoming more sustainability conscious, it is a real point of differentiation for the business," says Nathan Stoitis, Business Manager, Orica Mining Chemicals. "It shows that sustainability really can improve the business."

Sodium cyanide transport containers ready for recycling.


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A Powder Coated Promise DuluxGroup

New Zealand

Orica Powder and Industrial Coatings New Zealand "Delivered the Promise" when the business recently won the Westpac Supreme Award in the 11th annual Westpac Enterprise North Shore Business Excellence Awards. Every year, the Awards honour local companies based in the North Shore area of Auckland, their people and their extraordinary achievements in New Zealand business.

Powder Coatings also collected both the Smales Farm Excellence in Environmental Management Award and the Eco Insulation Excellence in Design, Research and Development Award.

Orica's Deliver the Promise SH&E principle starts with "No injury to any-one, ever" and, with the enviable record of more than four and a half years without a recordable injury, it's not altogether surprising that Powders was also placed as a finalist in the ACC Workplace Safety category.

The company commitment to the second aspect of the SH&E principle - "Value people and the environment" - was also clearly recognised by the judges. Judge Coral Ingley said: "Orica has a thorough and comprehensive approach to environmental commitment on an organisation-wide basis, with formal processes in place to ensure this is ongoing. The company uses recognised national and international-equivalent standards for benchmarking and compliance and is impressively innovative in seeking new uses for otherwise waste products".

From humble beginnings with just three employees in 1990, General Manager Graeme Squire says "We now employ 67 people in New Zealand, more than 60 of whom live on the North Shore. Since 50 per cent of our business is exporting - half to Australia and half to Asia - we also have a permanent sales person in Singapore".

An opinion the Judging team wholeheartedly share as they selected Powder Coatings for the Eco Insulation Design, Research and Development Award - a new category for 2008.

After five years of research and development using in-house chemists - along with support from students provided by Auckland University - Orica has patented a process called RPP. The process enables waste paint, waste powder coating and chipped waste construction and demolition timber to be converted into a commercially saleable board with some very special properties. A fully operational RPP manufacturing plant will eliminate more than 16,000 tones of these waste products going to landfill per year - a significant combination of innovation, research and development and contribution to our future environment.

Orica Powder and Industrial Powder Coatings General Manager

Graeme Squire (third from left) and Enterprise North Shore CEO

Terry Hoskins (far left) receiving the Westpac Supreme Business

Excellence Award.


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Convenor of the Judges, Matthew Bellingham, summed up "Orica epitomises what it means to be a business of excellence. They are a well capitalised, strongly governed company with a real commitment to the North Shore. The company has invested heavily in plant, people and technology. Orica is truly an excellent company and a deserving winner of the Westpac Supreme Award."

Proudly pictured from left: Keith Watson, Graeme Squire,

Terry Hoskins (CEO of Enterprise North Shore), Garry Seddon and Mike Hayes.


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Overview We are committed to valuing people and the environment, and in particular, achieving our goal of no injuries to anyone, ever.

Our SH&E Policy states that we will:

• Strive to ensure our facilities operate to the highest standards to protect our employees, contractors, neighbours and the environment;

• Sell only those products that can be produced, transported, stored, used and disposed of safely;

• Provide appropriate information and/or training on the safe use and disposal of our products to our customers and consumers; and

• Encourage employee initiatives that contribute to a safer and improved environment at work, at home and in the community.

Our commitment to safety and health is an integral part of our sustainability strategy. Key elements include:

• Line management responsibility and employee accountability for safety and health performance; • Effective implementation of our SH&E Management System and Basis of Safety Programme; • Setting and achieving safety and health key performance indicators; • Effective reporting and follow up on safety and health incidents; and • Recognition of efforts to improve our safety and health performance.

Contractors

Our contractors are an integral part of our workforce. Our SH&E Model Procedures state that "Contractors shall be given all relevant information regarding the Company's materials, products and activities which may impact on the safety, occupational health and environmental impact of the work to be performed". Our contracted employees receive appropriate induction training prior to commencement of work.

Hazardous Processes

Our SH&E Model Procedures aim to provide guidance to the management requirements of hazardous processes. Given the critical nature of safety risks in our businesses, Expert Panels and Significant Risk Working Groups have also been established to detail the "Basis of Safety" on which the processes should be designed and operated.


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Targets & Performance Challenge 2010 - Safety & Health

2009 Status:

Target exceeded or

ahead of schedule

Target achieved or

on track


Elements Challenge 2010 Target 2009 Status

2009 Performance

No worker fatalities

All worker fatalities: 0

4 fatalities reported during 2009

Reduce the recordable injury

and illness case

rate by >40%

All worker recordable injury and illness case rate: <0.4 (per 200,000 hours)

Our overall recordable case rate reduced to 0.69 in 2009, compared to 0.72 in 2008

Health assessments completed against plan: >99 per cent

96.8 per cent of health assessments were completed in 2009, compared to 98.2 per cent in 2008

Hygiene tests completed against plan: >99 per cent

93.1 per cent of hygiene tests were completed in 2009, compared to 95.4 per cent in 2008

Sustained compliance with

our health assessment and

occupational

hygiene programmes

Hygiene tests below Occupational Exposure Limit (OEL): >99 per cent

98.2 per cent of hygiene tests were below OEL in 2009, compared to 98.1 per cent in 2008

Disclosure on Management Approach In 2009 the Company recorded four fatalities to employees and contractors. Regardless of any other statistic, the four fatalities that occurred in the November/December period are totally unacceptable. Much has been done to address the learnings; both specific and general, but continued renewal and improvement must continue across the safety management spectrum to avoid another fatality.

Our All Worker Recordable Case Rate was 0.69 compared to 0.72 last year and our target of 0.49. There were five fatalities to members of the public in four separate incidents as a result of distribution incidents. Whilst no fault was attributed to Orica drivers (employees or contracted-drivers) in three of the events, significant work is continuing in all businesses to build on the improvements identified. Health and hygiene monitoring, fitness for work programmes, and general awareness of health issues continued to develop proactively.

Strong leadership, clear standards and thorough training are the foundation of achieving good safety and health performance. Application of these principles in a culturally sensitive manner is also vital for long-term


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improvement. Orica Mining Services has continued the "Take 5" programme globally to embed these principles. Its success can only be measured over a period of years but it is an excellent step to underpin personal safety across the organisation.


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Injuries & Illnesses Fatalities

It is with regret that we report four employee fatalities in separate incidents in 2009. Much has been done to address the learnings; both specific and general, but continued renewal and improvement must continue across the safety management spectrum to avoid another fatality as we strive to work towards our SH&E Policy aspiration of no injuries to anyone, ever.

The four fatalities that occurred were:

• A Mobile Manufacturing Unit (MMU) driver was killed when his vehicle drove into the back of another vehicle moving in the same direction. He was not wearing a seat belt and clearly had fallen asleep at the wheel due to fatigue;

• A supervisor died at Minova's Arnall facility in Poland when he was crushed by a six tonne press which was being moved into a new building by two forklift trucks. The supervisor was guiding the forklift driver and was struck by the press when it became unstable. No formal risk assessment was carried out and the forklifts were certainly not the appropriate equipment for the task;

• An operator was killed in the underground mine at Nacia, Mexico, when he was crushed under a rock fall. The site risk review was totally inadequate and the operator was not trained to work alone unsupervised; and

• An employee was killed whilst working in a tunnel at Zhungeer, Inner Mongolia. He was holding onto a ladder whilst a coal train passed through; it appears that the train caught the ladder and pulled the operator to his death.

Each accident was investigated thoroughly and actions identified. All actions have been tracked and implemented. The common learnings for the Company were identified as:

• The need to improve the overall quality of safety leadership; • Implement the basic risk assessment procedure of Job Safety and Environmental Risk Assessment

(JSERA) as a priority, particularly in new businesses; and • Ensure that people have the necessary mix of training and coaching to assess risk and continue to

develop the culture whereby risk assessment is a way of life.

There have now been sixteen fatalities to Orica employees and contractors since the Company started in 1997 (refer to Graph S1).

Injuries and Illnesses

Our all worker recordable case rate decreased to 0.69 this year, compared to 0.72 last year and our target of 0.49 (refer to Graph S2). Our recordable case rate is the number of recordable cases (using Occupational Safety and Health Administration (USA) guidelines) per 200,000 hours worked by employees and contractors.

A similar improvement was reflected in our lost work day case rate, which is a sub-set of our all worker recordable case rate (refer to Graph S3). Our lost work day case rate measures the number of lost work day cases per 200,000 hours worked by employees and contractors.

Number of Fatalities

Graph S1.


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The majority of incidents were sprains and strains from manual handling and ergonomic exposures and slips, trips and falls. There were also a large number of hand injuries caused by placing arms/fingers in the "line of fire" or by using tools without proper hand protection (refer to Graph S4).

At an individual business level:

• Orica Mining Services (OMS) demonstrated strong performance with their frequency rate decreasing from 0.35 in 2008 to 0.27 in 2009. OMS has focussed on the reporting and analysis of Near Miss Fatalities (NMF) and Process Safety incidents, particularly in light of the recent two fatalities, and continued with the "Take 5" safety programme globally;

• Chemicals' performance slipped slightly with their frequency rate increasing from 0.39 in 2008 to 0.50 in 2009;

• Minova's performance deteriorated, with a frequency rate of 2.07 compared to 1.51 last year and recorded two fatalities. Most of the incidents were of the sprain and sprain type. The acquired Excel/SCS business had a historical recordable rate of approximately 7.0 and this is a reflection of the high level of manual activity and older assets in the business. Under Orica ownership the rate has further reduced to 3.43 as the Company's culture starts to have an effect and improvements in equipment and processes; and

• DuluxGroup performance improved notably, with a frequency rate of 1.74 compared to 2.61 last year. Most of the incidents were of the sprain and sprain type. DuluxGroup has undertaken a fundamental analysis of their performance and has continued implementation a thorough "back to basics" safety strategy.

Although there has been an increase in recordable case rate over the last three years, the absolute level is still very good when benchmarked with other companies and the severity of incidents is reducing. We will continue to reinforce safety leadership and drive the implementation our SH&E Model Procedures.

Recordable Cases - Types of Injury

Graph S4.

All Worker Recordable Case Rate Lost Work Day Case Rate

Graph S2. Graph S3.


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Learning Incidents There were 164 major learning events across the Company in 2009, compared with 145 in 2008 (refer to Graph S5).

Analysis of the different types shows the year-on-year trend has largely remained unchanged for the past five years where the majority of incidents involved moving vehicles or forklifts on sites (21 per cent of total incidents), falling/moving objects (13 per cent), procedural failure (12 per cent) and equipment failure/design (11 per cent).

A large number of incidents also occurred on mine sites (24 per cent), involving misfires, unauthorised movement of vehicles into blast areas or flyrock extending from the blast area (refer to Graph S6).

General Learning Incidents - Types of Incidents

Graph S6.

External Events

Orica monitors safety incidents in peer organizations with the aim to integrate lessons learned into our own practices. In 2009 there were a number of serious incidents in peer organizations that resulted in multiple fatalities and serious injury.

The learnings for Orica moving forward are clear:

• Ensure that our managers know and understand the lessons from the past, and why so much emphasis is placed upon basic core procedures. Programmes have been deployed to cover both these issues, including the introduction and reporting of Near Miss Fatality events; and

• Process Safety continues to be a major focus throughout our industry. The rigour applied needs to be of the highest quality to avoid continued failures.


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Process Safety The main aspects to developing the Company's performance in this area are:

• Analysis of Process Safety Incidents; • Establishment of Expert Panels that determine the Basis of Safety in each major process area; and • Periodic Hazard Studies, which involve a holistic review of all the changes and modifications that

have occurred in a plants basic design.

Read more about our process safety performance in our case studies:

• Rocklea Rocket Reduces Risk; • Selleys Cuts Manual Handling; and • Blasting By Remote Control.

Process Safety Incidents

A process safety incident is one that would typically involve the failure of a key control measure that may lead to an actual or potential major consequence or major risk event such as a loss of containment, environmental discharge or significant injuries. We recorded 394 process safety-related incidents in 2009 against 402 in 2008, most of which were minor in nature.

All process industries have significantly increased their activity in this area following a serious incident at BP, Texas City in 2005. We are working together with other industries to define common metrics including sharing best practice. The Centre for Chemical Process Safety in the USA have published a methodology for categorizing process safety incidents; our major incident at Gomia in 2008 would fall into their top tier incident measure. The review of the 2009 process incidents indicates that 76 were deemed significant process safety incidents compared with 52 in the previous year (which was our first year of reporting) and arose due to a failure of a crucial control or protective system that could have resulted in a major event. The most serious were:

• DuluxGroup (Padstow, New South Wales, Australia) - a flashover fire caused by static electricity from a mixing vessel handling flammable solvent caused facial burns to the operator;

• Orica Chemicals (Riverview, Auckland, New Zealand) - an ammonia cylinder was overfilled and ruptured, causing an ammonia release and plant damage; and

• Orica Mining Services (La Portada, Antofagasta, Chile) - during manufacture of fuse heads a detonation occurred due to friction, resulting in shrapnel injuries to the operator.

The Orica Mining Services (OMS) and Chemicals Groups, and to a lesser extent DuluxGroup, are those where process safety is most relevant. Minova has little operational activity requiring process safety focus. Chemicals and DuluxGroup have each appointed a Process Safety Advisor, reporting to their respective Group SH&E Managers, with the role's remit to guide the development and maintenance of systems that are the foundation of process safety.

Expert Panels

Expert Panels have been established to develop and set out the detailed requirements for the design and control of specified major hazard processes.

Within Orica Chemicals, the Chlorine Expert Panel has formally commenced its activities, including developing common standards for Chlorine handling equipment. The Sodium Cyanide Expert Panel has also recently formed. DuluxGroup have commenced work on developing Basis of Safety documents for combustible dust, flammable solvent handling, ergonomics and manual handling, and forklifts and traffic management. Minova and OMS are jointly working on the establishment of Underground Safety guidelines.


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OMS Expert Panels have continued with their activity in the following areas:

• Audit programmes (Expert Panel Audits, participation in the corporate Significant Risks Audits); • Involvement in key capital projects such as the Bontang Ammonium Nitrate Plant and Nanling

Initiating Systems Plant; • Revisions of Initiating Systems Basis of Safety documents, including Underground Safety (together

with Minova); • An "On Bench" awareness package is nearing completion to address the increasing frequency of

Blast Related incidents. Areas to be covered include explosives/mobile equipment interaction, working near high/low walls etc; and

• Specification developed and implemented to minimise fire risk on vehicles transporting emulsion intermediate bulk containers and emulsion pump units in Asia.

The OMS Ammonium Nitrate (AN) and Initiating Systems (IS) manufacturing streams have also prepared strategic plans for their operations aimed at ensuring common standards and Basis of Safety concepts are applied across all plants. The Process Safety Measurement System (PSMS) developed within the OMS AN stream as a system for analysing process safety events is continuing to be rolled out across the AN sites, and now, selected IS sites. A significant benefit of this initiative is the improved awareness of site personnel around situations which could lead to a major process safety accident.

Periodic Hazard Studies

Implementation of Periodic Hazard Studies is an ongoing process across the Company.

These studies test how process hazards have changed from the original design over the life of a plant. Studies result in an updated risk profile and a review of the effectiveness of relevant controls on the site. Our SH&E Model Procedure for Hazard Studies states that our approach "...is based on the premise that the preferred approach to the control of hazards is their elimination where reasonably practicable. This is aided by application of the hazard study process from the earliest stages of project development where the application of the concepts of inherent safety and corresponding techniques for protection of the environment and health can be utilised."

In 2009 these studies continued to be one of the basic foundations of ensuring process safety. The programme schedule is on track and resourcing has been increased to meet demand.


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Product Safety Product Incidents

Eleven significant (Category 2+) product incidents were reported in 2009 compared with 10 in 2008. Five were the result of spillage from customer contracted vehicles during transportation of company materials, two due to product contamination, an instance of hydrochloric acid leaking from a customer's storage tank, incorrect packing of product, ingestion of a small quantity of poisonous material and a caustic chemical burn to a ship surveyor's leg during sampling.

Material Safety Data Sheets

Over recent years, it has become increasingly important that users of all types of materials, including chemicals, paints, agricultural chemicals etc., obtain a Material Safety Data Sheet (MSDS) prior to the use of a product.

Why do we need a MSDS?

Although many substances may present hazards when used at work or at home, provided these hazards are firstly known and understood and then secondly appropriate precautions taken, hazardous substances can be used safely. The key to this safe use is the provision of adequate information about the substance, effective dissemination of this information, followed by its proper use. Material Safety data Sheets (MSDS) are a critical part of the information cycle. Internationally, MSDS are used by suppliers and manufacturers of chemical substances to provide the information required to allow the safe handling of substances wherever they are used, be it at work or around the home. In fact, in many countries thought the world, including Australia and New Zealand, there is a legal obligation to make such information available within the workplace. MSDS thus assist employers to discharge their legal obligations under workplace health and safety legislation in respect of the general duty of care to employees by providing them with the information on the hazardous substances that they are working with and the hazards associated with those substances.

What information is provided by a MSDS?

The MSDS provides information on:

• Product identification including: o Product name; o Physical description and properties; o Uses; and o Composition;

• Health hazard information; • Precautions for use; and • Safe handling information.

The information provided on the MSDS will assist those who use the substance to develop correct occupational hygiene and safety procedures and to exercise the desired degree of care. With this appropriate information users can:

• Use substances correctly and safely; • Understand safety recommendations and the rationale for these recommendations; • Be aware of the results of failure to comply with these recommendations; • Recognise symptoms of over exposure; and • Take part in informed employer-employee discussions.

What information does Orica provide?

The MSDS must be written in an approved format and contain the information specified by law. Orica's


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MSDS are formatted in the internationally recognised 16 point style, and so the information is presented in a uniform manner under the following headings:

1. Identification of the Substance/Preparation and the Company/Undertaking; 2. Composition/Information on Ingredients; 3. Hazards Identification; 4. First Aid Measures; 5. Fire Fighting Measures; 6. Accidental Release Measures; 7. Handling and Storage; 8. Exposure Controls/Personal Protection; 9. Physical and Chemical Properties; 10. Stability and Reactivity; 11. Toxicological Information; 12. Ecological Information; 13. Disposal Considerations; 14. Transport Information; 15. Regulatory Information; and 16. Other Information.

Why is a MSDS so complicated?

The information which a supplier must make available is very complex. The range of information is also extensive to reflect the broad range of people to whom the MSDS is targeted, and not just those handling and using the substance concerned. For example, a MSDS must be sufficiently detailed to enable a workplace health and safety expert within a factory situation to give informed guidelines to workers; a doctor needing to refer to a MSDS in the case of a poisoning incident, or a user wanting to know the recommended personal protection to use.

How often is a MSDS updated?

If a change is made to the product such as its composition or there are changes to Government regulations, a review of the MSDS is required to be undertaken. In any case, suppliers and manufacturers must update their MSDS at least every five years unless there is new applicable information. In this situation, the MSDS must be updated immediately.

How do I obtain an Orica MSDS?

If you require a MSDS for an Orica product, please refer to the appropriate Orica business web sites for contact details.


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Occupational Health Our occupational health strategy is consistent with contemporary occupational health practice in hazardous industry and based upon the principles of:

• Assurance of control of exposure to hazardous agents and working environments; • Fitness for work, including safety critical workers and travel health; and • Health and wellbeing.

The Company's occupational health programmes are directed towards:

• Risk management of hazards e.g. chemical, physical and psychological hazards; • Ensuring that employees are fit to perform their work tasks without increased risk to the health and

safety of themselves or others with whom they work; and • Active rehabilitation of employees with work related injuries or illnesses to minimise disability and

promote a prompt return to their normal work and social activities.

Fitness for Work

Our fitness for work programme aims to ensure the integrated application of measures required to ensure the ongoing fitness for work. This is commensurate with the risk management consequence of the activity being undertaken, and includes:

• Health surveillance and monitoring programmes; • Pre-placement and work transfer medical reviews; • Fatigue risk management; • Drugs and alcohol; and • Recording, analysis and management of absences and sick leave etc.

Health Promotion

Health promotion is part of the Company's approach to the support and development of its people. Parameters for delivery of health promotion activities have been defined which take into account health issues in different countries, the size and nature of sites and businesses, individual needs and the needs of work groups. The Company's Intranet site enables employees in a number of countries to have ready access to health information from reputable sources.

A number of Personal Safety and Health programmes and initiatives have been undertaken across the organisation during the year. Notable examples include Padstow, Selleys, Deer Park, Gracefield and Chemical Services.

Within Orica Mining Services (OMS), increasing attention is being placed on Company drivers of heavy vehicles, not just in the area of medical fitness, but also the impact of drugs and alcohol and fatigue.

We have education, training, counselling, prevention, and risk-control programmes in place regarding serious diseases. For example:

• Free HIV Aids testing and education is offered to our employees in Zimbabwe; • We are continuing to develop our response plans for potential pandemic influenza outbreak; and • We have enhanced our safety rules and advice for travelling employees.

Read more in our health case studies:

• 0-5-30 Wellness Programme; and • The 10,000 Steps Challenge.


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Psychological Health

Balance between work and social activities and commitments and stress prevention are addressed through a management training package and advice on stress minimisation is also provided to individuals. Where Employee Assistance Programmes are available, free access is provided to employees and their immediate family members.

Rehabilitation Rehabilitation programmes minimise disability through early intervention and close cooperation between treating medical and paramedical personnel, the employee and Company rehabilitation staff to progressively increase work and non-work related activities consistent with a person's physical and mental capacity. Active rehabilitation is undertaken not just for work related injuries or illnesses, but also for non-work related medical problems wherever practical.

Health Assessment Programmes

Health assessment programmes are targeted to specific jobs and potential exposures. They also comply with state and national regulations in the countries in which the Company operates. Programme performance is systematically monitored during the year using our safety, health and environment data management system (SHERMIS) to ensure programme compliance.

Over 9,000 health assessments were conducted across the Company's operations in 2009 with a 96.8 per cent compliance with plan overall compared with 98.2 per cent in 2008 and 97.4 per cent in 2007 (refer to Graph H1). Chemicals and DuluxGroup again reported 100 per cent compliance in health assessment programmes but the overall health performance index for 2009 was below last year's performance due to the lower OMS performance. The establishment, maintenance and reporting of these OMS health programmes presents ongoing significant logistical difficulties that have to be overcome. However, a high level of focus is clearly demonstrable at regional level within OMS, directed towards both increasing the scope of programmes reported and the transparency and integrity of data. Planning has commenced within the Minova group towards progressively providing health data during 2010.

Health Assessment Performance Index

Graph H1.


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Hygiene Monitoring Our "assurance of exposure control" processes include:

• Setting of appropriate global exposure standards to priority hazardous agents; • Comprehensive hygiene assurance processes to be in place at sites; and • Control of workplace hazardous substances (chemicals and materials) within the Company

operations.

Hygiene programmes are subject to regular systematic review to ensure they remain closely aligned to the hazards in the workplace and to enable them to be promptly modified to take into account new controls or the introduction of new agents. Programme performance and compliance with exposure standards are also systematically monitored throughout the year using an internal database (SHERMIS) to enable any areas requiring attention to be promptly identified.

Orica maintains comprehensive exposure monitoring (occupational hygiene) programmes across its operations where indicated by the nature of exposure. These programmes monitor exposure to noise, solvents and other chemicals and dusts. In 2009 over 3,200 samples were taken (refer to Graph H2). Overall, compliance with the relevant occupational exposure standards was 98.2 per cent compared with 98.1 per cent in 2008 (refer to Graph H3). In 88.7 per cent of cases exposure control was achieved by use of engineering and other means, with the dependence on the use of personal protective equipment (PPE) for the control of exposure in only 9.5 per cent of cases.

Hygiene Assessment Performance Index Compliance to Occupational Exposure Limits

Graph H2. Graph H3.

As with health assessments, the establishment, maintenance and reporting of these hygiene programmes within Orica Mining Services (OMS) presents ongoing significant logistical difficulties to be overcome. However, a high level of focus is clearly demonstrable at regional level within the Group directed towards both increasing the scope of programmes reported and the transparency and integrity of data. Planning has commenced within the Minova group towards progressively providing hygiene data during 2010.

Substantial progress continues to be made in controlling exposure to lead and now all sites worldwide are fully compliant with Orica's rigorous blood lead standard; a major achievement. The blood lead absolute exposure control level is now around 99 per cent. The great improvement previously reported at Lorena, Brazil has been sustained and now matched at La Portada, Antofagasta, Chile due to some changes in the work processes coupled with an extensive education programme on personal hygiene behaviours. Focus will be required on further assurance of exposure control to TNT and silica within OMS.


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Travel Safety & Health As an international company with an increasing diversity of operations, Orica employees may be seconded or required to travel to areas where specific health, safety and security hazards may be present and where the level of medical support in the event of illness or injury may vary significantly, and be sub-optimal in some cases.

Processes are in place to ensure that Orica employees travelling internationally are fit to travel, appropriately medically prepared, fully informed of any health, safety and security hazards and the relevant precautions and/or local procedures to be followed. Information on health, safety and security risks is also readily available to Company employees via the Company Intranet and in some areas of the Company employees have access to personal on line specialist Travel Medical assessment and support.

The Orica global Travel Health, Safety and Security booklet targets the health and security issues of foreign travel and encompasses the scope and diversity of the Company's global operations. This booklet supplements the information available through the Orica Travel Health, Safety and Security database.

There is increasing evidence that travellers are taking greater responsibility for their Travel Health, Safety and Security and it has been given a high level of attention by the Orica Mining Services Europe Middle East and Africa business given the frequent travel undertaken to high-risk locations for example Africa and some remote areas of Eastern Europe.

Pandemic Influenza

Orica has developed a Corporate Pandemic Influenza Contingency Plan supported by plans that have been developed by each business group.

A standing Corporate Pandemic Influenza planning committee is in place, chaired by the Corporate SH&E Manager, and comprising senior management responsible for SH&E, risk and communications and functional occupational health resources.

The widely anticipated influenza pandemic came to pass in mid 2009 but, at least to date has been less severe than predicted. Given that pandemic plans prepared by authorities and organisations, as well as Orica, were almost universally based on a more severe scenario, considerable flexibility was required in the Company's response to ensure the approach taken was both practical and proportionate to the rapidly changing situation. A continuing focus will need to be maintained both corporately and by businesses as the pandemic is not expected to pass until end of the calendar year 2010 and a possible more severe second phase cannot be dismissed.


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One Million Hours Injury Free Orica Mining Services

Brownsburg, Quebec, Canada

Our Mining Services site in Brownsburg, Canada, has achieved one million hours injury free (equivalent to 500 person years) - a first for the site. The achievement of this great milestone has been possible due to the commitment, participation and focus on safety by every single person on the site. We are on our way to delivering the promise of "No injury to anyone, ever".

Several initiatives were implemented at the Brownsburg plant in recent years that led to the one million injury hours:

• We re-invigorated STOP For Supervisors - this is a programme that trains supervisors to observe employees at the work place and provide positive feedback on both safe and unsafe acts. The number of STOP Observations tripled during the last six months;

• Our License to Operate programme focuses on various safety topics including Basis of Safety, WHIMIS, industrial ergonomics and the use of fire extinguishers. The programme includes monthly competency based training sessions (60 to 90 minutes each) and familiarising the employees with the company's commitment to safety.

• Continuous industrial safety training (for example, scissor lifts, fork lift, lock and tag, electrical safety) is provided for line supervisors; and

• Our Stop and Think day was a great tool to stress Orica's priority towards for safety. The plant was shut down for an entire day and 90 per cent of the employees participated in safety related activities.

In recognition of achieving one million hours injury free, a drawing was held whereby 25 lucky employees won one week of paid vacation. The team is committed to continue to act and work safely to reach the next milestone of 1.5 million hours.

Brownsburg Manual i-Kon employees Celine Baril and Sebastien Leblanc celebrate one million hours injury free.


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SH&E Focus Day at Lae Orica Mining Services, Orica Chemicals and DuluxGroup Lae, Papua New Guinea

More than 80 employees from Mining Services, Chemnet and DuluxGroup in Papua New Guinea attended a SH&E Focus Day this year.

The day was instigated by site management to help people refocus on SH&E again after the Christmas break and discuss potential hazards on the site. The teams were also asked to help identify how potential injuries may occur and create a record of discussions for future reference.

SH&E Officer Maryanne Gali helped to organise the day and said it was aimed at helping everyone to take a greater role in improving SH&E performance of the business.

"The day helped us learn a little more about how we can look out for each other and work towards the vision," Maryanne said.

"It was also important to have fun and celebrate all we have learnt about SH&E and reducing the risk of injuries over the years. We are committed to continuing with the good record and maintaining our focus on safe business practice."

Employees participated in workshops on emergency plans, traffic hazards, material safety data sheets (MSDS's), manual handling, personal protection equipment and fire safety. Every employee on the site took part in the day's activities and a team lunch.

Two community groups - Medicine Sans Frontiers Women and Children Protection Group; and Compass Men's Health Group - were invited to take part in the day. Both groups ran successful and informative presentations for the employees.

The site also undertakes regular Tool Box talks, health promotion activities, internal SH&E audits, SH&E training awareness and job safety environmental risk assessments. Line managers on the site are proactive in communicating the visions and expectations to keep SH&E as a top priority in all actions, communications and decision-making.

Team 'Purple' attending a practical session on how to use a

fire extinguisher, with help from the local fire brigade.


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Keeping Safety Top of Mind Orica Mining Services Global

Orica Mining Services continues to find innovative ways to keep safety at the forefront of employees' minds, installing an interactive online widget which provides daily updates on SH&E KPI (key performance indicators) performance.

The widget uploads on the computer desktop each day automatically, providing employees with the most up-to-date Safety, Health and Environment performance information from around the world. The widget refreshes four times during a 24 hour period so that it picks up new information as it happens - worldwide.

Users are able to view information from all Mining Services' operating divisions including Australia/Asia, EMEA, Latin America and North America.

Sustainability Analyst Caron Melville says the widget was developed after brainstorming ways to best capture the interest of employees.

"The idea to move forward with the creation of the OMS SH&E widget came about through a discussion around employee engagement and our SH&E key performance indicators," Caron said.

"The widget is an easy and visual way to communicate what is going on. Currently we prepare and communicate monthly reports that show our AWRCR (All Worker Recordable Case Rate) as well as Action and Alert compliance to the end of the previous month.

We then have to wait again until the end of the next month to see how we are tracking. While these communications are valid and will continue to be, we decided to tie all of this information up into one package that was in real-time."

There is a drop-down message box that can be updated with messages and notes of congratulations and reminders for employees. This can be a Global message or one specific to the individual division.

The widget was released in October 2008 firstly as a test in Australia and then Asia and has now been rolled out across Mining Services globally.

The OMS safety widget.


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Rocklea Rocket Reduces Risk DuluxGroup

Rocklea, Queensland, Australia

The Rocklea site is nearing the completion of project Rocket involving upgrading of the labelling and manual filling processes, and linking these two areas with a conveyor, enabling cans to be fully processed in a continuous flow.

This project has delivered a significant reduction in manual handling and a step change improvement in manufacturing productivity.

A key factor in achieving this outcome is a packaging design change that eliminates full wrap around paper labels and replaces them with self adhesive labels. This allows all cans to be supplied complete with the brand printed on the crown of the can and with handles, a process which can be more effectively performed by the can manufacturers.

A major plant upgrade that occurred during 1999-2000 automated approximately half of the Rocklea plants packaging process. However, the remaining production was still packaged by a predominantly manual process.

The process involves label application, filling and the materials handling process between the two. The can store currently handles around five million cans per year and each can is handled several times before it is filled with product and delivered to the customer.

This process is labour intensive with significant Occupational Health and Safety risks due to the extensive manual handling. Cans are either hand labelled or hand fed into a labelling machine and then manually stacked onto pallets or placed in cages.

The pallets and cages of cans are manually moved into a storage area where they remain until required by the filling room. When the filling room is ready for the cans they are transported there from the storage area using a hand operated pallet jack.

The filling room operator manually takes the cans off the pallet or out of the cage and places them on the filling machine table, activates a foot pedal to fill each and every can, places the lid on the can and pushes it onto a conveyor. The conveyor transports the can under a capping machine to secure the lid and then to a robot for palletisation.

The new equipment allows cans which are delivered on pallets from the can supplier to be loaded by forklift to a conveyor feeding a de-palletising robot. From here the cans are conveyed firstly through adhesive labelling machines and then into the filling room via a series of alpine conveyors.

Rocklea's new paint filling machine in action.


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The new paint filling machines take the cans through the filling and lidding process before check weighing and delivering to the palletising robots.

The operators' role has changed to one of monitoring the machine performance and topping up of consumables such as lids. The repetitive tasks of positioning the empty can, initiating the filling cycle by means of a foot pedal and fitting a lid have been eliminated for the bulk of production.

The success of this project is due to the dedicated team of employees and contractors who have worked so hard to turn concept into reality.

The pail labelling line at the Rocklea site.


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Driver Training in Argentina Orica Mining Services

San Juan, Gualcamayo and Alum, Argentina

Forty employees at Orica Argentina can now claim to be safer drivers than most, after recently participating in a safety course on how to handle light trucks.

Held in the Province of San Juan among the sand dunes, the course provided the team with an opportunity to handle the light trucks in difficult terrain.

Each day employees were given an overview of safety through a number of videos and presentations in the morning, but all the fun happened in the afternoon when they were let loose on the circuit and put their knowledge into practice by driving the trucks over the challenging terrain.

Those who attended said the course was a great learning experience and they look forward to implementing what they learned back at their sites.

Participants came from the San Juan office, Gualcamayo and Alum mine sites in Argentina.


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Selleys Cuts Manual Handling DuluxGroup Padstow, New South Wales, Australia

In 2008 Selleys® installed a bulk powder handling system at the Padstow factory to reduce the amount of manual handling required in the factory.

The manual handling of 25kg bags was ranked as the highest ergonomic risk in the Selleys® factory as many products contained raw materials that were delivered in 25kg bags, which then had to be manually added to the mixing vessels. For example some batches of No More Gaps required 69 bags of Omya 20 (1,725kg).

The 25kg bags were transported on pallets through the factory by forklift and in some mixing areas the pallets needed to be elevated to mezzanine levels. In the mixing areas the pallets of 25kg bags took up room making the areas congested and restricted the movement of the operators.

Each bag needed to be cut open with a knife and the contents tipped into the mixer in a half-hour timeframe. Once the 25kg bags were emptied, operators squashed them down for disposal and the dust extraction in the area did not capture all the dust generated from handling the empty bags.

The project converted an existing 30 cubic metre silo to store Omya 20 and the installation of three one tonne bulk bag discharge stations for other powders. The Omya 20 is transferred by dense phase transfer from the silo through pipework to the mixing vessels which make No More Gaps and Liquid Nails. Other raw materials are now received in bulk bags which can be transferred through from two of the bulk bag discharge stations to the same mixers. The third discharge station will feed another mixer.

The project has significantly reduced the risk of injury by eliminating 91 per cent of manual handling of the powders in 25kg bags.

Other benefits of this project were reduced waste as the Omya 20 bags were no longer used, reduced forklift movements in factory, more space in the raw material store, improved raw material usage as there was always some product left in the bags when they were emptied, less congestion in the mixing areas and fewer pallets to be managed.

Overall, this project has delivered significant benefits for Selleys® Padstow.

Loading of 25kg powder bags into the Liquid Nails Mixer.

Bulk Bag Discharge Station at Padstow.


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0-5-30 Wellness Programme Orica Mining Services Brownsburg, Quebec, Canada

Our Mining Services site in Brownsburg, Canada has developed the "0-5-30" wellness programme. The initiative promotes three key lifestyle habits that have a deciding factor on the health and wellbeing of employees:

• 0 = no smoking; • 5 = minimum of five fruits and vegetables per day; and • 30 = minimum of 30 minutes of physical activity per day.

On October 10, 2008, Canada's National Day of Sports and Physical Fitness, Brownsburg kicked off the site's Walking Club; the next initiative as part of the "0-5-30" wellness programme. The Brownsburg team recognizes that strong, healthy employees are an unbeatable competitive advantage - as recently seen with the achievement of one million hours injury free.

As part of our "0-5-30" programme and to move a step ahead with the Walking Club, Orica Brownsburg launched the Walking to the Vancouver Olympics challenge on July 1st 2009.

Each participant has to walk a minimum of 30 minutes or the equivalent of 3km three times per week.

The distance between Brownsburg and Vancouver is 5,000km. The goal is to send 10 virtual walkers to Vancouver Olympic Games by February 2010.

Brownsburg Walking Club going the distance between Brownsburg and Vancouver.


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The 10,000 Steps Challenge DuluxGroup Padstow, New South Wales, Australia

A phenomenal effort by Paul Foote from the Selleys® factory averaging a massive 22,000 steps per day has put him in the lead for the 10,000 Steps Challenge!

10,000 Steps is a non-profit physical activity programme that aims to increase the physical activity levels of Australians. Eleven teams competed across Selleys® and Yates®, with a total of 56 participants. This year our Selleys® and Yates® walkers averaged 11,738 steps per day.

Paul Foote of Selleys® won the "Worn Out Shoe" award for averaging

more than 20,000 steps a day.

The 10,000 Steps Challenge aims to provide an opportunity to participate in a work-specific physical activity programme (challenge). The primary goals of the Challenge are to:

• Increase an individual's physical activity awareness; • Increase the overall physical activity levels in the workplace; and • Create awareness of the coincidental health benefits that can occur in the activities of daily living,

including work.

The 10,000 Steps Challenge provides an opportunity and a platform for everyone to take positive steps towards better health.

For more information visit www.10000steps.org.au.


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Blasting by Remote Control Orica Mining Services

Alumbrera, Argentina

Argentina's first electronic blasting by remote control was completed in June at the Alumbrera mine site, approximately 1,000km northwest of Buenos Aires.

Using Orica Mining Services' SURBS (Surface Remote Blasting System) technology, operators at quarry and surface-mining operations are now able to initiate their electronic blasts remotely from a central point.

This ensures the operator is able to activate the detonation well away from any safety hazards such as flying rock and other blast effects.

The project manager for Electronic and Blast-based Services in Argentina, Daniela Sanchez, said the first blast marked a significant achievement for the site and was only possible due to the dedicated team working to accomplish this.

"This successful electronic blasting makes the whole Mining Services team feel proud because it continues to place Orica as a leading company because of its innovation and technology," Daniela said.

Using remote-firing hardware with the existing electronic blasting system (i-konTM), SURBS also provides increased flexibility for mining operations where firing-time delays and pit closures are critical to operation.

The Orica team at the Alumbrera mine site celebrates its first electronic blasting by remote control.


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Fire Safety in Poland Minova

Golce, Poland

Not many Orica sites can lay claim to having their own fire brigade, but Minova Arnall in Poland can, having operated its own volunteer brigade for the past 40 years.

Located in Golce, Poland, the site is situated on a former iron ore mine in the middle of the forest, making fire protection and prevention very important.

The fire brigade is responsible for a number of preventative activities including maintaining fire equipment and organising fire protection training. The volunteer brigade is usually the first responder to any fires on site and typically assists a professional brigade if required.

The Minova fire brigade was recently put to the test and came out victorious against some much younger competitors, explains Marian Maslanka.

"In order to improve skills and to keep the traditions of our fire brigade, each year we participate in regional competitions of volunteer fire brigades," Marian said.

"In the recent tournament our team came in fifth out of the 32 participating teams.

"It is worth noting that we are the oldest team in the competition and the average age of our team is more than 40 years old, while other competing teams are around 25 years old.

"The experience, precision and good organisation is often worth more than the great physical condition of young competitors."

The team races towards the finish line - finishing the

competition in fifth place.


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Melbourne Safety Conference Minova

Global

Minova's SH&E representatives met in Melbourne, Australia, at the end of June for their inaugural Global SH&E Conference. The conference was organised by Minova's regional SH&E managers, to bring together SH&E employees from around the globe.

The conference provided many attendees with the opportunity to visit another Orica site and get a feel for how SH&E works outside the Minova business. This proved a valuable experience as participants were able to speak with Orica plant managers and SH&E personnel and see that Minova is not alone in having some gaps to address at an operational level.

Daniel Moore, Vice President SH&E Minova Americas, said there were several advantages to getting everyone together in one place to discuss the group's achievements and future direction.

"Minova's SH&E representatives have worked tirelessly to induct 30 sites and more than 2,200 employees in Orica's SH&E policies and procedures," Daniel said.

"For many, this was the first time they had had an opportunity to meet the people who actually drive this focus. Participants also got to feel the commitment from the very top as we were lucky enough to have Graeme Liebelt (Orica Managing Director and CEO), Michael Reich (CEO Minova International) and Ian Gilmour (Corporate SH&E and Manufacturing Manager) join us.

"Nothing beats face-to-face contact and it was great to see participants making the most of their time together by sharing their personal experiences, solutions and ideas for the future. Catching up in person has resulted in a real sense of enthusiasm and camaraderie which I have no doubt will be invaluable in the future."

Daniel Moore, Vice President SH&E Minova Americas, at the inaugural Global SH&E Conference.


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Overview Orica aspires to become a business that does no harm to people and the environment. This means a transition to:

• Carbon neutral - no net generation of greenhouse gases to the atmosphere; • Water neutral - no net consumption of potable towns water; • Zero waste - no net generation of waste to landfill and requires innovative

ways to prevent, reduce, reuse and recycle by-product streams; and • Environmentally friendly operations, products and services - no unintended

consequences to the environment and the community

... in a commercially responsible way.

Our SH&E Policy states that we will:


• Continue to seek ways to efficiently use materials and energy; • Sell only those products that can be produced, transported, stored, used and

disposed of safely; and • Seek to develop new or improved products and processes to improve the

contribution we make to the quality of people's lives and to minimise the impact on the environment.

Our commitment to the environment is an integral part of our SH&E and sustainability strategy. Key elements include:

• Line management responsibility and employee accountability for environmental performance;

• Effective implementation of our SH&E Management System; • Undertaking product life cycle studies to ensure that SH&E risks are assessed

and minimised as far as practicable; • Setting and achieving environmental key performance indicators; • Effective reporting and follow up on environmental incidents (within our

operations and during product distribution); and • Recognition of efforts to improve our environmental performance.

Our SH&E Model Procedures address the management of legacy sites, ongoing environmental management, design issues and safe movement of product from supplier to customer. All of our facilities, as a minimum, must comply with the legal requirements of the jurisdiction in which they operate.


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Targets & Performance Challenge 2010 - Environment (Resource & Operational Sustainability)

2009 Status:

Target exceeded or

ahead of schedule

Target achieved or

on track



2009 Performance

Energy consumption Reduction in energy consumption per tonne of production: >15 per cent


Reduction in emissions of total carbon dioxide equivalent gases per tonne of production: >35 per cent comprising:


Reduction in emissions of carbon dioxide only per tonne of production: >15 per cent


Greenhouse gas emissions

Reduction in emissions of nitrous oxide per tonne of production: >50 per cent


Water consumption Reduction in water consumption per tonne of production: >15 per cent


Waste generation Reduction in waste generation per tonne of production: >50 per cent


Disclosure on Management Approach

In 2009 Orica demonstrated excellent performance across all environmental measures. Energy consumption, greenhouse gas emissions, water consumption and waste generation were all considerably lower than our 2004 baselines.

Senior management tracks Orica's resource and operational sustainability performance on a monthly basis. Orica is required to report energy consumption, energy production and greenhouse gas emission under the Australian Government Department of Climate Change's (DCC) National Greenhouse and Energy Reporting Act 2007 (commonly known as NGERS). Orica registered to report under NGERS in June 2009 and our registration was accepted by the DCC's Greenhouse and Energy Data Officer in July 2009. Orica's first NGERS report is due by 31 October 2009 and will cover our Australian operations energy and greenhouse


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data from 1 July 2008 to 30 June 2009. For more information on NGERS visit www.climatechange.gov.au/reporting/.

This year we recast the 2004 baseline and Challenge 2010 target for energy consumption. This is due to a change in reporting requirements in relation to our sodium cyanide manufacturing facility at Yarwun, Queensland, Australia. It is a requirement of NGERS that all energy inputs, whether combusted or not, are reported. As a result, natural gas, which is fixed in the sodium cyanide production process (i.e. is used as a raw material and does not generate greenhouse gases) must be reported as energy consumed. Recasting the baseline year and Challenge target for energy allows us to report an accurate representation of our performance in energy efficiency since 2004.


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Losses of Containment There were three serious (Category 2+) site losses of containment recorded at our operations in 2009, compared with five in 2008 and 10 in 2007 (refer to Graph E1). There were no injuries as a result of the losses. Incident investigations were undertaken in each case and appropriate corrective actions implemented to prevent further recurrences. Sites also record and investigate minor leaks or spills of product that are quickly brought under control.

Location Volume (kilolitres)

Material Description

Auckland, New Zealand

0.07 Anhydrous ammonia

A full 68 kg cylinder of ammonia ruptured due to overfilling and being left in direct sunlight. There were no injuries and minor damage to the ammonia plant building

Laverton, Victoria, Australia

8.00 Sodium hypochlorite

Ruptured plastic pipe work resulted in the loss of containment of approximately 8,000 litres of sodium hypochlorite into a bunded area

Kooragang Island, New South Wales, Australia

0.20 Ammonia A relief valve failed on the ammonia vaporiser causing the release of ammonia to atmosphere

Site Losses of Containment

Graph E1.


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Compliance Where applicable, manufacturing licences and consents are in place at each Orica site, and are undertaken in consultation with local environmental regulatory authorities. Monitoring data is collected to measure compliance with licence conditions. Any breach of licence limits is reported to authorities as required and is investigated to determine cause and ensure the risk of recurrence is minimised.

There were 33 instances of licence non-compliance compared to 18 in 2008.

These mainly occurred at:

• Rocklea, Queensland, Australia - where the Total Organic Carbon (TOC) licence limits were exceeded from the paint factory exhaust vents; and

• Yarwun, Queensland, and Kooragang Island, New South Wales, Australia - the large ammonium nitrate plants exceed NOx emission limits or nitrate discharges limits from effluent ponds.

None of these excursions are likely to result in prosecutions. We will continue to work towards our Challenge 2010 target of no environmental licence non-compliances.

Monitoring

During 2009, in excess of 21,400 tests were completed across the Company's operations in order to assess compliance of emissions (e.g. air, water, noise) with environmental licences and regulations. The majority of the tests were conducted by continuous sample monitoring and automatic analyses. There were 12 environmental non-compliances reported to our internal management system during 2009 compared with 34 in 2008 and 29 in 2007, representing a compliance rate greater than 99.9 per cent. Five of these non-compliances were also reported to external regulators in accordance with our licensing agreements.

Environmental Prosecutions

Regulatory authorities issued two significant infringement notices for the following licence breaches:

• Orica pleaded guilty to two offences relating to nitrate discharges in July 2007 at our Yarwun, Australia, facility and were fined $5,000 without conviction; and

• The West Virginian Department of Environment fined the Minova site at Bluefield, USA a total of US$39,000 for infringements (dating back to 2006) relating to their site licence (styrene emissions).


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Environmental Management The following sites have environmental management systems certified to the international standard ISO 14001:

• Orica Mining Services in Monclova and Cuatrocienegas, Mexico; • Orica Mining Services Bulk Distribution site in Collahausi, Chile; • Orica Mining Services in Limay and Bacong, the Philippines; • Orica Mining Services in Gomia, Kolkata Head Office and all Bulk Distribution sites, India; • Minova in Nowra, New South Wales, Australia; and • DuluxGroup in Gracefield, Wellington, New Zealand.

In addition, Orica India and Orica Mexico have had their Integrated Management Systems for Quality Management (ISO 9001), Environmental Management (ISO 14001) and Occupational Health and Safety Management (OHSA 18001) certified.

Read more in our case studies:

• OMS India's IMS Certification; and • Dulux NZ's ISO Certification.


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Legacy Issues We manage legacy issues associated with historical operations at a number of our sites. Increasing attention has been given to recording the history and known contamination of such sites, the assessment of risks and the management of those risks, and recording any protective or remediation measures.

Our SH&E Model Procedures state:

• Land Protection Management - a Land Dossier shall be compiled and maintained indefinitely under secure document control to record information about known or potential contamination of such sites, the assessment of risks and the management of those risks; and

• Remediation of Land - a Responsible Manager shall be appointed to manage any significant decommissioning, decontamination and removal projects and/or the remediation of land.

Examples of where we progressed our SH&E Policy commitment of valuing people and the environment in 2009 are as follows:

• The Botany Groundwater Treatment plant in Botany, New South Wales, Australia, is fully operational and is successfully treating contaminated groundwater;

• Treated water is being recycled for industrial use; • We are continuing to seek approval for the export of hexachlorobenzene (HCB) waste for treatment

in Europe. The material continues to be stored safely and securely at Botany; • Planning approvals are in progress to treat contaminated soil at our Botany site. It is expected that

treatment of the soil will commence in 2010; • We will soon be seeking planning approval to treat contaminated soils for the implementation of the

proposed Remediation Action Plan for the Villawood, New South Wales, Australia, site; • The demolition, investigation and clean up at our Seneca site in the USA are proceeding. This has

included the emptying of an 18 million gallon water lagoon containing low levels of nitrogen and applying the water and sediments as a fertilizer;

• The clean up of two sites in Norway, Gullaug and Engene, is advancing with removal of old equipment and the disposal of contaminated soils. Investigations and remediation activity are continuing;

• The decontamination and removal of redundant buildings has been completed at two sites in Latin America, Sierras Bayas in Argentina and Itauna in Brazil. Site environmental investigations and remediation work are progressing; and

• The remediation of two small former operating sites in Sydney and Melbourne has been completed.

Read more about our transformation projects at Botany by visiting the Botany Transformation Projects

website at http://www.oricabotanytransformation.com/.


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Energy & Greenhouse Gases Our Model Procedure for Resource Conservation states that each of our facilities will "minimise the consumption of energy and non renewable resources, consistent with its SH&E policy, objectives and targets. Where appropriate, individual targets and action plans to meet the Company's targets shall be included in the short and long term SH&E plans for the Facility".

Orica measures energy consumption and greenhouse gas emissions from our large and medium sites on a monthly basis, and from our smaller sites on a quarterly basis.

Energy Consumption

The Company's gross energy consumption for the period was 17.2 million gigajoules (GJ) (refer to Graph E2). Of this, approximately 84 per cent was natural gas and 13 per cent was electricity, with the remainder being a mix of LPG, diesel, oil, steam and coal. This equates to direct energy consumption of 87 per cent and indirect energy consumption of 13 per cent (refer to Graph E3). Most of the natural gas is consumed by the Ammonia Plant at Kooragang Island, New South Wales, Australia, as fuel and as feedstock for the process. Orica uses a small proportion of renewable energy, primarily at our Latin American sites, as part of our overall energy mix. We do not produce or sell direct energy (i.e. coal, natural gas or LPG).

Gross Energy Consumption

million GJ

Energy Consumption by Source

Graph E2. Graph E3.

This year we recast the 2004 baseline and Challenge 2010 target for energy consumption. This is due to a change in reporting requirements in relation to our Yarwun Mining Chemicals (sodium cyanide) facility. It is a requirement of the National Greenhouse and Energy Reporting Act 2007 that all energy inputs, whether combusted or not, are reported. As a result natural gas, which is fixed in the sodium cyanide production process (i.e. is used as a raw material, and does not generate greenhouse gases) must be reported as energy consumed. Recasting the baseline year and Challenge target for energy allows us to report an accurate representation of our performance in energy efficiency. This improvement in reporting accuracy accounts for changes including:

• Approximately an eight per cent average annual increase in gross energy consumption for the Company (this energy being natural gas which is not combusted but used as feedstock in the process);

• The ratio of direct emissions increasing from 80 per cent direct to 87 per cent and the ratio of indirect emissions reducing from 20 per cent to 13 per cent; and

• An increase in the proportion of natural gas consumed from 78 per cent to 84 per cent and a reduction in the proportion of electricity from 20 per cent to 13 per cent.

Orica's energy consumption in 2009 was 4.57 gigajoules per tonne of production, a 12.7 per cent decrease compared to the revised 2004 baseline (refer to Graph E4). Energy efficiency activities around Orica are


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bringing us very close to achieving our Challenge 2010 energy target of a 15 per cent reduction in energy consumption per tonne of production.

Kooragang Island consumed the majority (70.1 per cent) of the Company's total energy (refer to Graph E5). Kooragang Island was followed by Yarwun (15.3 per cent), Botany (3.8 per cent, split between the Groundwater Treatment Plant and the ChlorAlkali Plant), Carseland (2.2 per cent) and Laverton (1.6 per cent). Due to a change in the method of calculating energy consumption at Yarwun's Mining Chemicals (Cyanide) facility, Yarwun's gross energy consumption is much higher than reported in previous years. Refer above for further explanation.

Energy Intensity

GJ per tonne

Major Energy Consuming Sites

Graph E4. Graph E5.

Greenhouse Gas Emissions

Orica currently measures and reports two greenhouse gases: carbon dioxide (CO2) and nitrous oxide (N2O). CO2 is generated when energy is consumed and in the ammonia manufacturing process and is measured in tonnes of CO2 (tCO2). N2O is emitted as a by-product of nitric acid manufacture and is measured in tonnes of carbon dioxide equivalent (tCO2e). Total greenhouse gases (CO2 and N2O combined) are reported in tCO2e. In 2009, 36.1 per cent of Orica's greenhouse gas emissions were CO2 and 63.9 per cent were N2O.

In 2009, 16.4 per cent of total emissions arose from indirect energy sources and 83.6 per cent arose from direct energy sources (refer to Graph E6). Direct emissions arise from nitrous oxide emissions and from energy purchased for our own consumption (i.e. natural gas, diesel, oil, coal and renewables). Indirect emissions arise from the energy required to produce and deliver purchased electricity and steam.

In 2009 we emitted 3,096,000 tCO2e in comparison to 3,882,000 in 2008 (refer to Graph E7). Much of this significant reduction is due to nitrous oxide abatement in Carseland and Bacong. See below for more information or read our case study Abatement in the Philippines.

Greenhouse Gas Emissions by Source

Graph E6.


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Our greenhouse gas emissions intensity for 2009 was 0.82 tCO2e per tonne of production, a 37.2 per cent reduction from the 2004 baseline (refer to Graph E8).

Gross Greenhouse Gas Emissions

million tCO2e

Greenhouse Gas Emissions Intensity

tCO2e per tonne

Graph E7. Graph E8.

The largest greenhouse gas emitting sites for the period were Kooragang Island (45.0 per cent), Yarwun (28.9 per cent), Carseland (13.1 per cent), Botany (3.2 per cent) and Laverton (2.7 per cent) (refer to Graph E9). Kooragang Island, Yarwun and Carseland produce nitric acid and therefore emit higher quantities of greenhouse gases (i.e. N2O) compared to our other sites. Kooragang Island also produces ammonia which is highly emissions intensive. Botany, Laverton and Yarwun produce chlorine which requires significant electricity consumption. This results in high proportions of greenhouse gases (i.e. CO2) compared to our smaller sites.

Major Greenhouse Gas Emitting Sites

Graph E9.

Secondary N2O abatement technology was installed on Nitric Acid Plant 1 at Carseland in Canada in May 2008. This technology breaks down the N2O molecule into harmless nitrogen and oxygen. As Orica's third largest emitter, Carseland contributes 13 per cent of Orica's total greenhouse gas emissions (down from 17 per cent last year due to N2O abatement). When compared to normal operation the technology is expected to reduce greenhouse gas emissions from the plant by approximately 80 per cent. An abatement level of 78.9 per cent was achieved during 2009, which is equivalent to abating 400,000 tonnes of carbon dioxide equivalent. More than 580,000 tonnes of carbon dioxide equivalent has been abated since the technology was installed in 2008. Secondary N2O abatement technology was successfully installed on Bacong's Nitric Acid Plant in July 2009. Abatement levels of over 75 per cent have been achieved, equating to 7,400 tonnes of carbon dioxide equivalent since installation. The project is in the final stages of the registration process for the United


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Nation's Clean Development Mechanism. Registration of the project is expected to be complete late 2009. Prior to the installation of secondary abatement, Bacong emitted 1 per cent of Orica's total greenhouse gas emissions. Read more in our case study Abatement in the Philippines. The abatement programme is expected to be undertaken at Orica's remaining Nitric Acid plants over the next two years.

Read more about how we are reducing our energy use and greenhouse gas emissions in our case studies:

• Abatement in the Philippines; • AcraTex's Green Challenge; • Saving More Than Steam; • More Heat For Minova; • Laverton's Significant Savings; • Energy Efficiency at KI; and • Smarties at Head Office.


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Water Orica consumes water for use in cooling towers, as a raw material for product manufacture, for washing equipment and process areas, for safety showers and eye wash stations as well as other uses such as employee amenities.

Our Model Procedure on Resource Conservation states that "each Facility shall monitor progress against its objectives and targets and shall report electricity, fuel and water consumption".

In 2009 our operations around the world consumed 8,105,000 kilolitres (kL) of water, equivalent to filling 3,240 Olympic sized swimming pools (refer to Graph E10). Gross water consumption was 7.8 per cent lower than in 2008.

Our water efficiency reduced from 2.33 kL per tonne of production in 2008 to 2.16 kL per tonne of production, which is 32.2 per cent below our Challenge 2010 baseline (refer to Graph E11). We are therefore very pleased to report that we have, again, exceeded our Challenge 2010 water target of a 15 per cent reduction in water consumed per tonne of production.

Gross Water Consumption

million kL

Water Intensity

kL per tonne

Graph E10. Graph E11.

Our highest water consuming sites for this period were Kooragang Island (40.0 per cent), Yarwun (20.9 per cent), Carseland (9.0 per cent), Gomia (6.4 per cent) and Monclova (5.0 per cent).

We continue to reduce consumption of potable water at our ChlorAlkali facility at Botany, New South Wales, Australia, through the supply of treated water from our Botany Groundwater Treatment Plant (GTP). In 2009 the GTP supplied more than 520,000 kL of treated water to our ChlorAlkali facility and third party users in the Botany Industrial Park.

Our Kooragang Island site and Hunter Water have been working together in developing a project that will see Hunter Water build a Recycled Water Facility on the Steel River site in Newcastle. Kooragang Island is the single largest user of potable water in Newcastle, New South Wales, and would initially be the sole customer of the new project if built to the current projections. The technical specifications, pricing structure and capital funding are all being negotiated and if agreed a Memorandum of Understanding will be signed later this year. This project has the potential to deliver financial and environmental benefits to both Orica and Hunter Water.


• The Beaver Test; • AcraTex's Green Challenge;


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• Saving More Than Steam; • MIEX's Maine System; and • Laverton's Significant Savings.


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Waste Our guiding principle of waste treatment and disposal is to, as far as practicable, minimise the impact of waste on the environment and the community. Waste management options are selected in the following order of priority:

1. Cleaner Production - the elimination and minimisation of waste streams (usually at source); 2. Reuse and Recycling - to be considered where cleaner production options are not practicable; and 3. Treatment and Disposal - to be considered where cleaner production, recycling and reuse options

are not practicable.

Our Model Procedure on Waste Management states that "Each site shall establish and resource waste minimisation targets, consistent with it's SH&E policy, objectives and targets and any local environmental licence and legislative requirements."

Waste generation is reported on a monthly basis by more than 200 Orica sites. Reported waste is classified as either hazardous or non-hazardous, and is then reported in one of the following five categories: waste sent to landfill; waste recycled; waste reused; waste destroyed or treated on site; and waste stored on site. In 2009, 39.4 per cent of Orica's total waste was sent to landfill, 39.2 per cent was recycled, 7.2 per cent was reused, 11.7 per cent was destroyed or treated on site and 2.6 per cent was stored on site (refer to Graphs E12 and E13).

Waste is classified as either hazardous or non-hazardous on a site-by-site basis according to the relevant legislation at each site. In 2009, 56 per cent of total waste generated was classified as non-hazardous and 44 per cent was classified as hazardous (refer to Graph E12).

Hazardous waste can include contaminated steel drums, waste solvents, process wastes, packaging for explosive materials, contaminated personal protective equipment (PPE), and filter cake which is made up of impurities filtered out of brine streams. Non-hazardous waste can include food scraps and stationary from offices, broken wooden pallets, scrap metal, building waste, glass, non-hazardous chemicals, and clean drums.

Types of Waste Generated

Graph E12.


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Waste that is sent to landfill includes broken packaging that can no longer be reused, filter cake that no useful function can be found for, food scraps, and other general waste. Recycled and reused waste includes scrap metal, shrink wrap plastic from our DuluxGroup products, stationary, and other domestic waste for recycling. Waste that is destroyed or treated on site is normally packaging for explosives material. This type of waste must be burnt on site as it is potentially dangerous to be taken off site. Stored waste is material that is stored on site, awaiting reprocessing or deposition through another method.

Since 2004 there has been a considerable improvement in waste data collection, along with an increase in the number of sites reporting waste. Many waste reduction projects have been implemented and, as a result, we achieved our Challenge 2010 waste target of a 50 per cent reduction of waste generation per tonne of production in 2005, 2007, 2008 and 2009.

Gross waste generation for the period was 15,765 tonnes, 13.5 per cent lower than last year (refer to Graph E14).

The Company's waste generation for this period was 4.20 tonnes per kilotonne of production, representing a 60.9 per cent decrease compared to the 2004 baseline (refer to Graph E15).

Gross Waste Generation

thousand tonnes

Waste Intensity

tonnes per kilotonne

Graph E14. Graph E15.

Orica's highest waste generating sites for this period were Rocklea (13.3 per cent), Padstow (6.1 per cent), Brownsburg (4.1 per cent), Dandenong South (3.7 per cent) and Botany (3.6 per cent).

Although Rocklea is regarded as our "largest waste generating site", Rocklea recycled or reused 76.0 per cent of the total amount reported. Padstow recycled or reused 66.6 per cent of waste generated on site.

Read more about how we are reducing waste in our case studies:

• Spring Cleaning at Yarwun;

Waste Disposal Methods

Graph E13.


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• AcraTex's Green Challenge; • Padstow's Clean Up Milestone; • Turning Trash Into Treasure; • Waste Paint Management; • Minova Reduces Waste; • Recycling Packaging at OMS; and • Reusing Packaging at Yarwun.


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Sustainability Index In 2005 we created an index designed to measure the value (V) we create over the direct impacts (I) we generate (i.e. V/I). Value added is measured as gross margin and impact is a measure that combines our energy and water consumption, greenhouse gas emissions and waste generation. The index was set to a baseline 100 in 2004.

Our aim is to broaden this measure so that it includes the lifecycle impacts of our products, in addition to those we currently measure from our sites. This means including the impacts of raw materials sourced to manufacture our products and impacts arising from the disposal of our products after use.

We are continuing to develop the Sustainability Index so that it encompasses a wide range of factors relevant to:

• The nature of our operations; and • The sustainable supply of our products.

The Company's Sustainability Index for this period was 329, a significant increase from the 2008 V/I index of 269 (refer to Graph E16). This reflects the significant reductions in greenhouse gas emissions, water consumption and waste generation since 2004 as well as high demand for Orica products in the mining sector and increased value being generated per unit of production.

Sustainability Index

Graph E16.


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Green Office & Resource Hunt A number of corporate and business-driven actions were identified to support progress towards our no harm aspiration. One of these actions was to develop global ground-up efficiency programmes to engage all employees. This action drove the creation of Orica's Global Green Office Programme and Orica's Global Resource Hunt.

Global Green Office Programme Orica's Green Office Programme offers our offices around the world the opportunity to participate in creating a sustainable future. The main objectives of Green Office are to:

1. Progress our offices towards the no harm aspiration; and 2. Create a culture in our office environments and operational sites that is consistent with, and strongly

supports, our no harm strategy.

The programme was developed in 2007 and initially trialled at two sites in New Zealand - Newmarket in Auckland and Mount Maunganui. After successfully running the 100 day programmes, the package has now been made available on-line for implementation at every Orica office.

All of the tools necessary for a site to implement a Green Office Programme are provided via Orica's intranet. From an introduction to sustainability to what sustainability means to Orica to how to engage employees, the programme is a one-stop-shop to help our sites become more sustainable.

The Green Office Programme trials in New Zealand led to some fantastic achievements including:

• Significantly reducing the waste generated in the office environments; • Reducing paper consumption and sourcing recycled paper for printing; • Raising awareness about turning lights, computers and air conditioners off when not in use; • Encouraging staff to cycle to work in Newmarket; and • Donating cabbage trees and garden centre gift vouchers to Mount Maunganui Primary School.

Read more about how our sites have implemented the Green Office Programme in our case studies:

• AcraTex's Green Challenge; • Gracefield's Garden; and • Smarties at Head Office.

Global Resource Hunt

Working in parallel with our Green Office Programme is the Global Resource Hunt; a programme based on the same principles as Green Office but targeted at our manufacturing, warehouse and distribution sites around the world. The Global Resource Hunt provides guidance for initiatives to be quickly ranked, so that the most promising opportunities can be given greater focus.

These two programmes can run individually or in conjunction with each other, and provide the means to create a culture that is both conscious and knowledgeable about sustainability.

Orica's Sustainability Team conducted training sessions about the Global Resource Hunt at various Orica Chemicals sites in Australia and New Zealand this year. Implementation of the Global Resource Hunt will be piloted by Orica Chemicals in 2010.

The Global Resource Hunt name illustrates we are on the hunt for sustainability initiatives to be identified and implemented on our sites around the world, similar to that of a scavenger hunt but focusing on finding efficiencies in energy, water and waste!


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Chemical Releases Orica reports chemical releases from our global operations in accordance with Australia's National Pollutant Inventory (NPI) programme.

Releases (tonnes) Chemical Substance

2004 2005 2006 2007 2008 2009

Sites Responsible for Releases in 2009

Acetic acid 0.0 0.0 0.2 Deer Park

Acetone 40.7 41.5 33.7 30.7 25.9 23.2 Gomia, Lorena, Monclova, Padstow, Rocklea

Ammonia 797.4 1,165.1 1,130.9 531.7 663.5 645.0 Riverview, Bacong, Botany, Carseland, Gracefield, Kooragang Island, Monclova, Wyee, Yarwun

Antimony & compounds

0.5 0.7 0.8 0.2 0.2 0.2 Dandenong, Glenfield

Carbon monoxide 1,005.7 565.8 830.4 463.0 306.4 297.3

Botany, Brownsburg, Cuatrocienegas, Deer Park, Gomia, Kooragang Island, Laverton, Lorena, Monclova, OMS Bulk Sites, Port Kembla, Tappen, Wyee, Yarwun

Chlorine 0.0 0.0 0.0 0.2 0.3 0.5 Botany, Osborne, Port Kembla, Welshpool, Yarwun

Chromium III compounds

1.0 0.9 1.2 0.2 0.2 0.2 Botany, Dandenong, Glenfield

Cobalt & compounds 0.2 0.2 0.3 0.0 0.0 0.2 Botany, Gracefield, Kooragang Island

Copper & compounds 0.2 0.5 0.5 0.1 0.1 0.1 Dandenong, Glenfield, Monclova

Cyanide Inorganic compounds

0.1 0.1 0.1 0.1 0.1 0.1 Yarwun

Cyclohexane 2.2 2.2 2.2 2.0 3.0 4.4 Padstow

1,2-Dichloroethane 0.3 0.2 0.7 0.0 0.5 Botany

Di-(2-Ethylhexyl) phthalate

0.3 0.3 0.3 0.2 0.0 0.0

Ethanol 11.3 12.0 21.3 5.4 5.4 10.3 Dandenong, Deer Park, Gracefield, Lorena, Rocklea, Troisdorf

Ethyl acetate 7.2 7.2 11.9 Lorena

Ethylbenzene 0.2 0.2 0.0 0.0

Ethylene glycol 0.4 0.5 Bacong, Weihai

Fluoride compounds 50.2 36.7 0.1 0.0 0.0 0.0


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2004 2005 2006 2007 2008 2009


Formaldehyde 7.1 8.9 8.5 0.7 0.4 0.0 Yarwun (significant reduction due to the divestment of the Adhesives & Resins business in 2007)

n-Hexane 1.7 16.3 4.8 1.7 2.3 7.4 Padstow, Preston, Yarwun

Hydrochloric acid 0.0 0.0 0.4 0.7 0.4 0.6 Botany, Laverton, Osborne, Wyong, Yarraville, Yarwun

Hydrogen sulfide 0.0 0.4 1.1 0.1 0.1 Botany

Lead & compounds 69.0 105.5 53.8 74.8 87.7 65.2 Botany, Brownsburg, Deer Park, Gomia, Limay, Lorena, OMS Bulk Sites, Weihai

Manganese & compounds

0.0 0.0 0.0 0.0 0.0 0.0

Mercury & compounds 0.3 0.3 0.3 0.3 0.0 0.0 Botany

Methanol 1.2 1.2 0.3 0.9 0.0 0.0

Methyl ethyl ketone 1.0 0.9 1.0 1.5 1.7 2.6 Gracefield, Padstow, Rocklea

Methyl isobutyl ketone 0.3 0.2 0.3 0.9 1.0 1.1 Gracefield, Rocklea

Methyl methacrylate 0.0 0.0 0.0 0.0 0.0 0.0

Nickel & compounds 0.6 0.6 0.7 0.3 0.2 0.2 Botany, Dandenong, Glenfield, Monclova

Nitric acid 100.3 98.3 79.2 67.2 56.7 59.0 Carseland, Gomia, Kooragang Island, Lorena, Weihai

Nitrogen to water 462.0 340.5 4.0 90.6 52.6 32.0 Botany, Kooragang Island, Monclova, Mount Maunganui, Yarwun

Oxides of Nitrogen 5,257.5 4,125.4 3,965.6 2,853.3 2,240.1 2,623.4 Bacong, Botany, Brownsburg, Carseland, Cuatrocienegas, Deer Park, Gomia, Kooragang Island, Laverton, Lorena, Monclova, OMS Bulk Sites, Port Kembla, Tappen, Wurgendorf, Wyee, Yarwun

Organo-tin compounds

0.0 0.0 0.0 0.0 0.0 0.0

Particulate matter <2.5µm

0.0 60.8 138.6 Botany, Brownsburg, Deer Park, Gomia, Kooragang Island, Laverton, Lorena, OMS Bulk Sites, Port Kembla, Tappen, Wyee, Yarwun

Particulate matter <10µm

449.8 441.3 356.9 269.4 172.8 411.7 Botany, Brownsburg, Carseland, Cuatrocienegas, Deer Park, Glenfield, Gomia, Kooragang Island, Laverton,


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2004 2005 2006 2007 2008 2009


Lorena, Monclova, OMS Bulk Sites, Port Kembla, Tappen, Wyee, Yarwun

Phosphorus to water 1.2 1.1 0.5 4.5 2.2 3.2 Botany, Monclova, Mount Maunganui, Yarwun

Phthalates 0.0 0.0 0.0 0.0 0.0 0.0

Styrene 0.0 0.9 0.9 0.2 0.2 0.3 Nowra, Rocklea

Sulfur dioxide 115.1 133.9 127.6 163.1 124.3 106.5 Botany, Cuatrocienegas, Deer Park, Gomia, Heybridge, Kooragang Island, Laverton, Lorena, Port Kembla, Wyee, Yarwun

Sulfuric acid 3.0 0.7 4.6 0.0 0.6 2.5 Botany, Deer Park, Mackay, Morwell, Osborne, Wyee, Yarraville

Tetrachloroethylene 14.3 12.4 8.6 9.8 11.0 13.0 Brownsburg

Toluene 6.1 7.4 7.9 44.7 16.8 25.5 Dandenong, Deer Park, Gracefield, Padstow, Rocklea

Trichloroethylene 1.5 1.1 1.1 1.1 1.1 Gomia

Vinyl Chloride Monomer

0.3 0.1 0.1 0.0 0.0

Xylenes 2.4 2.0 2.5 6.9 8.0 9.7 Gracefield, Rocklea

Zinc & compounds 2.2 1.1 1.0 0.3 0.2 1.0 Botany, Dandenong, Glenfield, Kooragang Island, Monclova, Preston, Yarwun

In 2009, reporting of Orica's chemical releases improved in accuracy and some 2008 data was appropriately revised. Extensive measurement and analysis at Brownsburg (Quebec, Canada) and Tappen (British Columbia, Canada), and more complete information at Kooragang Island (New South Wales, Australia) resulted in some changes, particularly relating to a significant increase in particulate matter releases.

For more information on NPI visit www.npi.gov.au.


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Abatement in the Philippines Orica Mining Services

Bacong, the Philippines

Orica Nitrates Philippines has reduced its generation of the potent greenhouse gas, Nitrous oxide (N2O) after installing secondary N2O abatement technology in July 2009. More than 75 per cent abatement has been achieved to date, equating to an abatement of 7,400 tonnes of carbon dioxide equivalent since installation.

Orica Nitrates Philippines is located between Barangay Buntis and San Miguel in Bacong, Negros Oriental. The plant produces dilute nitric acid from anhydrous ammonia for subsequent processing into ammonium nitrate. The majority of the product is exported to Indonesia and the rest sold to domestic users through Orica Philippines and Nitro Asia, the local distributors.

The site implemented the N2O Reduction Project under the Clean Development Mechanism (CDM) of the United Nations Framework Convention on Climate Change (UNFCCC). The project aimed to reduce the concentration of N2O in the tail gas from nitric acid production by enabling the transfer of modern clean environmental technology from industrialized nations to the Philippines. The secondary abatement technology used is the UN approved methodology AM0034; Catalytic Reduction of N2O Inside the Ammonia Burner of Nitric Acid Plants.

Mr. Mario Aragon, the OIC of the Community Environment and Natural Resources Office (CENRO II) was present during the installation of the new equipment on 19 July, 2009.

This achievement illustrates Orica's commitment to its Ten Priority Actions to reduce our N2O emissions at our nitric acid plants around the world.

A mixture of vaporized anhydrous liquid ammonia and compressed air is burned

with the aid of a precious metal catalyst to produce nitrous gas, for

subsequent processing into ammonium nitrate.

The project team watching the catalyst being installed.


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OMS India's IMS Certification Orica Mining Services

India

Orica Mining Services India has achieved a remarkable feat; in just four months they have achieved certification for their Integrated Management System to ISO 9001 (Quality Management), ISO 14001 (Environmental Management) and OHSAS 18001 (Occupational Health and Safety Management System).

Integrated Management Systems (IMS) certification offers a number of business benefits, including:

• The means to enhance compliance to world class requirements for the occupational health and safety of employees and other stakeholders, environmental protection and the quality of products we manufacture;

• Competitive advantage as the only explosive manufacturer in India, probably in the world, that is currently certified under IMS. This assists us to secure key customers who value to these standards;

• Employee motivation to take care of safety, health, environment and product quality to sustain the certification;

• Improved compliance with Orica's SH&E Management system, which is aligned with OHSAS 18001 and ISO 14001; and

• A new focus on leadership, rather than just compliance, in terms of SH&E Management.

Orica Mining Services (OMS) India has been certified under ISO 9001 Quality Management System since January 1997. The additional certifications were sought this year in response to customer requests. The certification extends to all spheres of activities undertaken by the Indian business covering Gomia, all bulk sites and the Indian Head Office in Kolkata.

A team of 23 employees from across OMS India were selected and trained to act as internal auditors and to drive compliance to the requirements of the standards.

The newly trained internal auditors conducted two rounds of internal, cross-functional audits for various areas such as Manufacturing, Storage, In-process Checks, Transport, Human Resources, Research, Development, Supply Chain, Technology Services etc.

Corrective actions were then undertaken to close out non-conformities found during the internal audits. These included the introduction of new procedures and manuals, physical changes, updates to documents and a system correction to bridge the gaps. An important highlight of the IMS certification process was the introduction of a Health Manual and Legal Compliance Manual.

OMS India was recommended for IMS certification upon successful completion, and close out of actions raised in, a two-stage external certification audit. The external auditors commended the quality of OMS India's internal audits and mentioned that they had not experienced such effective internal audits where so many non-conformities were raised.

Debi Acharya, Sustainability Manager for OMS India, drove the process to achieve compliance. Debi said, "It was only a matter of time before we realized the benefits. IMS helps to check the areas that are generally not considered during normal audits. The approach encompasses a greater sphere of activities and the cross-functionality during audits is its masterstroke. The fact that the entire IMS certification process just took four months

Debi Acharya, Sustainability Manager, drove

the process to achieve compliance.


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when it should have taken at least a year is an achievement in itself. This demonstrates how we implemented Orica's principle of Working Together to achieve an outstanding result."

Orica India's IMS team celebrate achieving IMS certification.


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Dulux NZ's ISO Certification DuluxGroup

Gracefield, Wellington, New Zealand

Dulux® is the first paint manufacturer in New Zealand to achieve ISO 14001 certification!

The ISO 14001 environmental management standard helps organisations minimise their negative impact on the environment and supports compliance with applicable laws and regulations. The Standard has helped to guide Gracefield in systematically reducing environmental risks that they can control, such as the use of dust collectors to control emissions to air from production activities.

The successful project was a team effort involving the Gracefield Production SH&E Team, staff in the Water-Based Plant and the wider production team.

The certification recognised Gracefield's effective and reliable procedures that are based on Orica's world best practice standards. A number of improvements have now been implemented in their Water-Based Plant including the:

• Recycle of final flush water from big batch whites into the next batch; • Recycle of plastic wrap and cardboard; • Collection of end-of-run paint for use in the next batch; • Reuse of raw material intermediate bulk containers (IBCs) to hold rework stock; and the • Implementation of Project Otaki, which involved increasing the number of plastic waste items able

to be recycled and the reuse of bulk bags for bundling up stock.

The team working on the certification included James Tala, Sam Handley, Catie Redshaw and Calvin Fransen. However, this office-based group couldn't have done it without the hard work of everyone in production, particularly Ross Hatton and the water-based team.

Gracefield's Production SH&E Team helped the site achieve ISO 14001 certification.

International Organisation for Standardisation, or ISO, is an international organisation that provides best practise standards to which companies can become accredited. Visit http://www.iso.org/iso/home.htm for more information.


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Spring Cleaning at Yarwun Orica Mining Services and Orica Chemicals Yarwun, Queensland, Australia

At a recent Site Clean Up event, Yarwun staff, contractors and visitors worked together to safely clean up more than 30 tonnes of waste material. Of this, approximately 90 per cent is expected to be recycled.

After nearly four years of continuous expansion, Orica's Yarwun site in North Queensland was not looking its best, with remnants of construction activity scattered around the site.

The Site Clean Up Day was organized by the site management team and SH&E committee. Meetings were rearranged, non-essential travel was cancelled and shift employees were encouraged to come in. Contractors and visitors to the site were also asked to lend a hand.

In keeping with Orica's sustainability focus, the expectation was to reuse or recycle as much material as possible rather than sending it to landfill.

Site Sustainability Coordinator Gordon Dwane set up a system so that waste could be separated to allow for recycling. Skips and bins were provided at several locations around the site for metals, hard plastics, soft plastics, paper, wood and general waste.

To ensure there would be no injuries, all employees were given clear instructions on manual handling and the procedure for dealing with material that may be chemically contaminated.

With the combined effort of almost 200 people, the site was soon transformed. Rubbish skips were filled with a diverse mix of debris including broken office chairs, microwaves, pipes and electrical switchgear that were all safely loaded into the appropriate skips. Filing cabinets were emptied, production plants picked clean, workshops tidied and even offending weeds pulled.

At an al fresco lunch for the clean-up crew, Site Manager Robert Mossop expressed his satisfaction at the day's success and lauded the efforts of the team. "After four years the site needed a clean. Thanks to all of you we have made great progress, which will contribute to a safer site," Robert said.

Site Manager Robert Mossop practices what he preaches,

collecting rubbish from around the site for recycling.


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The Beaver Test Minova Arnall, Poland

A local beaver family has given Minova Arnall's water treatment process their tick of approval.

Process water is sourced from the local river Kocinka and is treated on site before returning it to the waterway. The purity of the treated, returned water is testing regularly under our contract with the Silesian Union of Land Reclamation and Water Equipment.

A beaver family has settled just downstream of where the water returns to the river, testament to the quality of the returned water. Beavers live only in the waters of the highest purity. They are rare in Poland and are strictly protected by the law. Thanks beavers for giving us your great recommendation for our environmental protection!

One member of the beaver family that has taken residence in the Kocinka river.


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AcraTex's Green Challenge DuluxGroup

Adelaide, South Australia, Australia

The Dulux® AcraTex business recently took part in a 100-Day Green Challenge. Various initiatives were identified during the focus period that we hope will lead to significant environmental improvements over the coming months.

The AcraTex GREEN Team launching the 100-Day Green Challenge.

The focus of the challenge was to improve sustainability across the businesses products, processes and performance, with particular emphasis on the office, lunchroom and amenities areas common to all employees. The Challenge targeted improvements in energy management, recycling, water reduction, minimizing paper and office supplies and optimizing travel and transport.

The "'AcraTex GREEN Team" was formed and included six representatives from Administration, Research and Development, Operations and Management. The role of the Green Team was to lead communications and initiatives.

Some of the fantastic initiatives included:

Energy

• Energy efficiency projects have been identified that, when implemented, could result in an estimated 18.5 per cent reduction in site electricity consumption (saving 61,000kWh, $11,500 and 51 tonnes of greenhouse gas emissions per year);

• Energy savings of around 2 to 4 per cent have already been achieved during the 100-Day period through the installation of energy saving down lights, motion sensors to prevent lights being left on and using 'switch off' stickers as reminders;


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• Future actions will include installation of clear polycarbonate roofing sheets to increase natural light in the warehouse/factory and the use of heat reflective window coatings on north facing windows to reduce air conditioner energy consumption during summer; and

• AcraTex is also evaluating converting to partial use of Green Power, i.e. electricity generated from renewable sources.

Water

• Water efficiency projects have been identified that, when implemented, could result in an estimated 14 per cent reduction in site water use (saving 310 kilolitres or the average usage of two Adelaide households);

• Planned water initiatives include the capture of rainwater for on site use, installation of small dishwashers, and the use of waterless urinals; and

• AcraTex also plans to introduce a water filtration system to enable reuse of wastewater in the plant.

Waste

• Improvements made to on-site recycling during the 100-Day period, means we are on track to be a "Zero Waste" site by the end of this year, i.e. no solid waste disposed to landfill (saving 500 to 1500 cubic metres of waste landfill and more than $12,000 per year); and

• Waste to landfill was reduced from 30 cubic metres per week to only 10 cubic metres per week through a review of all recycling opportunities and the introduction of various recycle bins for used paint buckets, shrink-wrapping, raw material bags and aluminium cans.

Cultural Change Towards Sustainability

• We achieved a big step forward in encouraging cultural change, raising awareness of the company's current environmental performance and objectives in conjunction with Orica's aspirations in sustainability; and

• Site staff overwhelmingly embraced the Green Challenge, with nearly 70 suggestions received from 31 staff. Two-thirds of these suggestions have been implemented during the 100 days of the Challenge!

Communication Various communication tools were used in engaging employees' participation throughout the challenge, including:

• Fortnightly Friday Feedback Sessions - held as a forum to communicate and evaluate achievements across the team;

• Weekly Newsletters - used as an internal communication tool to inform and engage employees on challenge progress and to share other useful tips and ideas to improve green initiatives at work and home;

• Monthly Quiz - a fun way to engage employees' interest and also to educate on issues around sustainability. Each quiz was focused on a theme for that week i.e. recycling, energy use, etc. Winners were rewarded with shopping gift vouchers;

• Suggestion Box - used to encourage employees to generate ideas to improve the AcraTex environmental footprint. Employee participation was excellent, with 68 ideas submitted (nearly one every working day!);

• Notice board - used to provide regular updates on the Green Challenge. Progress reports were placed at the notice board to communicate and share information across the business; and

• Signage - the Green Team created various signs as a reminder to save energy and water and to improve recycling on site.


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At the end of the challenge the Dulux® AcraTex staff took part in a Site Sustainability Day. A brainstorming session generated another 50 ideas for the future, followed by a site tour of the Wingfield recycling plant. The tour gave AcraTex employees the opportunity to see where their recycling efforts went and how the collected waste was processed. The afternoon was spent planting native trees at the Patawalonga Creek near Adelaide Airport where volunteers are revegetating the area to help protect and enhance the riparian native vegetation. The creek is also an important haven for fish and tortoises.

Senior management leadership was vital to the success of the Challenge. During the close-out session, General Manager, John Dimoglides said "Our 100-Day Challenge was just the start and an opportunity to give more focus to what we've being doing informally. Now, doing things sustainably from both environmental and economic perspectives needs to be a core part of everything we do. This comes from my heart and I personally believe in making these positive changes for the organisation and also the environment including all our stakeholders".

AcraTex's amazing efforts will not stop with the end of the 100-Day Challenge. They plan to continually improve their sustainability footprint through the following initiatives:

• AcraTex will volunteer to the Trees For Life programme - growing seedlings on site, and helping to plant out the seedlings to re-vegetate land in the Adelaide area;

• Introduce an ISO 14001 Environmental Management System for the site; • Commission a site waste-water treatment plant; • Work towards the elimination of solvent-based products; • Expand the capability and use of recycled polystyrene as a raw material; • Benchmark global best practice for sustainability in their industry; and • Promote green products and services.

The AcraTex team planting native trees at Patawalonga

Creek in Adelaide.


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Introducing Moss the Kiwi DuluxGroup

New Zealand

A second Kiwi chick has come under the protective wing of Yates® New Zealand after being hatched in January at Kiwi Encounter, Rainbow Springs, Rotorua.

The fluffy new arrival has been named Moss and follows an earlier chick that was sponsored by Yates named ... well, Yates!

The new chick's name is apt because Yates® supplies its Peat Moss product to Kiwi Encounter for use in the Kiwi nests to protect them as they grow.

According to the Kiwi Encounter people, Moss is doing well, the only problem being they don't know whether Moss is a he or a she!

This question will be resolved before Moss goes into the wild by plucking a feather and checking his or her DNA.

Weighing just 329.2 grams when born, Moss will need to increase weight to one kilogram before being released into the forest in the Kario Rahui region.

Introducing the fluffy new arrival, Moss the Kiwi.


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Saving More Than Steam Orica Chemicals Botany, New South Wales, Australia

Our ChlorAlkali site has saved $25,000 per year by reducing steam leaks. Steam traps are used on site to remove water accumulated in steam pipes, enhancing the efficiency and reliability of the steam system. A steam trap survey in 2009 identified four faulty traps that were promptly replaced. In addition to energy savings, the reduction in steam wastage will save over 1,600 kilolitres of water per year. The cost to complete the work was $5,000 with a return of three months.

Tony Ng, Botany site's Reliability Engineer said "It can be very easy to forget about utilities such as steam, compressed air but they can cost you a lot of money as we found out. Getting the survey arranged was easy and we will now ensure that we do check all traps regularly. This really must be done by all our sites."

ChlorAlkali Site Manager, Percy Gotla was impressed by the process and said "Legislative programmes can be seen as an impost on sites ... good 'old-fashioned' engineering practice will still deliver benefit to the company. In today's climate, every penny counts".

Leaking steam traps can be easily identified and maintained or replaced.


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Padstow's Clean Up Milestone DuluxGroup

Padstow, New South Wales, Australia

A large band of volunteers rolled up their sleeves recently at DuluxGroup's Padstow site and celebrated the 10th anniversary of involvement in the annual Clean Up Australia Campaign.

For the tenth year in a row, we demonstrated our commitment to keeping Padstow a clean and environmentally safe place to work.

Eighty staff from Selleys®, Dulux® and Yates® collected rubbish from the Salt Pan Creek Wetlands and gathered well over 90 bags of bottles, paper, plastic bags and other rubbish, not to mention car parts, miscellaneous furniture and building refuse.

Commenting on our efforts, the Mayor of Bankstown, Cr Tania Mihailuk, thanked DuluxGroup for our ongoing support and impressive teamwork on Clean Up Australia Day over the past decade.

"Clean Up Australia Day in Bankstown would not be the success it is without the help of the community and local businesses, and Orica has demonstrated an outstanding commitment to this event," she said.

This year, the prestigious No More Crap trophy for the department that shows the greatest enthusiasm on the day was presented to the Dulux® Customer Service Team.

This year's winners showed great commitment by managing a tag team event so that team members could participate in the cleanup while others answered all customer inquiries.

The new Dynamic Lifter trophy, which recognises the efforts of an individual, was awarded to Harry Fine for his ongoing commitment to the Clean Up Campaign. A few hours of everyone's time has made a big difference to the surrounding Salt Pan Creek environment. For more details on Business Clean Up visit www.cleanup.org.au.

The Selleys® team gathered plenty of rubbish as part of

Clean Up Australia day.


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MIEX's Maine System Orica Chemicals

Maine, USA

The first MIEX® System in Maine, USA, will remove up to 80 per cent of dissolved organic materials from the drinking water for approximately 650 customers. The US$4 million system started up in late June 2009 and is one of many systems to be commissioned throughout the country this year.

The installation of the system is a response to new water quality standards from the US Environmental Protection Agency that came into effect two years ago. Dissolved organic carbon (DOC) derives from organic materials including decomposed plant and animal matter. It can change the water's colour and taste and stimulate bacterial growth causing chronic long-term health problems.

Andrews Tolman, assistant director of the Maine Drinking Water Programme, said the installation of the MIEX® plant was a step in the right direction for the district.

Michael Bourke, vice-president of Orica Watercare Inc., says the Maine plant is one of many planned throughout North America this year.

"We have also had orders for first plants in Rhode Island, Georgia and North Carolina that came through in the latter part of 2008," Michael said.

"They will join new systems starting up in 2009 in Florida, Colorado, Illinois and Alabama where there are already existing MIEX® Plants operating. The MIEX® technology continues to grow and gain momentum, entering even more new markets in 2009."

MIEX® system installed at Newport, USA.


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More Heat For Minova Minova Arnall, Poland

Minova Arnall have reduced their site energy costs by 46 per cent, while significantly increasing the heating capacity of their boilers and lowering the cost of heating their production halls.

Until recently, central heating was sourced from 20-year old, coal-fired boilers located several hundred metres from the production halls. This distance resulted in a significant loss of heat energy and the requirement to pay fees to the local environmental regulator for pollution from the coal boilers.

Arnall have now adapted a centrally located building as their new boiler room. They have commissioned modern, automatic boilers of high capacity (88 per cent) that are heated with low-sulfur coal. The combustion process does not create any smoke. The company buildings have been divided into four zones of heating, allowing equal use of the new boilers. The process has been programmed and automated, increasing the heat capacity from 55 per cent to 86 per cent and lowering the costs of heating.

Arnall have also installed solar panels for potable water heating (i.e. enough for employee use). Overall, Arnall has reduced the total power of company's needs to 1.3 Mega Watts.

The site plans to build on their initial success, seeking to reduce energy use further by upgrading the heating system in the forged head bolts production line. If successful, this initiative may reduce site energy consumption by a further 15 to 20 per cent.

Solar panels installed at Minova's site in Arnall, Poland.


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Turning Trash Into Treasure Orica Chemicals Laverton, Victoria, Australia

A recent project at the Laverton ChlorAlkali plant in Melbourne has saved more than 185 tonnes of industrial waste from being dumped in landfill, resulting in significant cost savings. It is a great example of Orica's sustainability strategy in action.

Cereclor, a chemical widely used in industry as a substitute plasticiser, has been manufactured at the Laverton plant for the last six years.

The site had accumulated 185 tonnes, or 430 drums, of Cereclor waste material, which was not suitable for sale. Rather than divert the product to landfill the team came up with an innovative solution. Of the 430 drums:

• 190 were in acceptable condition for handling. The product in these drums was used as a substitute for paraffin oil and chlorine, the raw materials used in the Cereclor production process; and

• 240 drums had been contaminated with water and rust, resulting in a significant deterioration of the drums. The contaminated product was sent off-site to be reworked and the purified Cereclor was returned to the Laverton site for reprocessing into the production process.

The cost of the reworking was approximately $37,000, representing a saving of more than $160,000 compared to drum disposal.

Helen Daniel-Lollham, project coordinator, said working on the project was extremely satisfying and there were a number of associated benefits. "Although the financial gain has been great, the best result has been that our minor chemicals area is clean and empty," Helen said. "It is also an ongoing solution as any future Cereclor unsuitable for sale can be placed directly into the utility tank for reprocessing."

Cereclor drums in the storage area prior to reworking into product.

The team from left, Kenneth Richards, Quality Manager,

Helen Daniel, Consultant, Adam Voigt, Operations Manager and

contractor Daniel Pulis re-visiting the now "clean" storage

area where the Cereclor drums were kept.


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Gracefield's Garden DuluxGroup


Following the successful implementation of the Green Office Programme at Gracefield in 2008, the sites' Green Office Team have taken the programme a step further to ensure sustainability is kept top of mind for employees.

The team have implemented a range of impressive initiatives in 2009 including a worm farm and compost bins (with pails to collect food scraps for the worms in the kitchen), and a large, rapidly growing vegetable garden!

Gracefield's rapidly growing vegetable garden.

Team members recently challenged themselves to a printer-free day and staff have become very aware of opportunities to save energy in the office. Significant power savings have been achieved in the building through suggestions to limit fresh air make-up heating early in the morning and reset timers so the air conditioning is not running through the weekends.


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Laverton's Significant Savings Orica Chemicals

Laverton, Victoria, Australia

Our ChlorAlkali site at Laverton has saved nearly $100,000 per year through energy and water savings.

Energy savings - Two large heat exchangers on the chlorine plant were not insulated and were losing energy and potentially placing employees at risk of a thermal burn. Using a local contractor, insulation blankets were specially made for each exchanger, featuring Velcro joints for easy removal and replacement. This simple solution will save the plant more than $20,000 and 310 tonnes of greenhouse gases each year.

Water savings - The site has worked closely with their water service provider to implement water-efficiency programmes and reduce annual water consumption by 10 million litres, at a total saving cost to the business of more than $75,000 a year. "The previous contract rewarded high chemical consumption whereas this new contract rewards service excellence and water savings," Ken Richards, ChlorAlkali QA Systems Chemist explained. "We believe there is more to be achieved and the site team will continue to work together with our service provider."

Site Manager, Chris Holland said: "These successes cut cost, reduce environmental impact and demonstrate to our customers that we can meet their sustainability expectations."

Henry Connor and Hannah Higgins demonstrating the effectiveness of the new insulation blanket.

Ken Richards (left) discusses further water savings with a representative from

the site's service provider.


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Our New Eco Warriors Orica Corporate

Melbourne, Victoria, Australia

Orica's Head Office Accounts Payable department in Melbourne, Victoria, Australia, won Rainforest Rescue's Eco Warrior Award in 2009 for reducing paper consumption and contributing to a more sustainable environment.

Orica engaged ReadSoft to supply Orica's new Accounts Payable Scanning Solution and Electronic Workflow. This new technology allows Accounts Payable to convert their annual 340,000 manual paper-based invoices into electronic format. So far 250,000 pages (73.5 per cent) of paper-based invoices have been converted to the new system. The team plans to convert the remaining 90,000 pages in 2010.

Orica's 340,000 invoices equate to:

• Paper consumption of over 1.2 million sheets of paper each year; • Generation of 12.3 tonnes of carbon dioxide equivalent; and • 54 trees.

ReadSoft and Orica celebrated this achievement by partnering with Rainforest Rescue to plant 100 trees in the Daintree Rainforest in north-eastern Australia. The 100 trees planted in the Daintree equate to savings of over 2.2 million sheets of paper and 22.7 tonnes of carbon dioxide equivalent.

The Daintree Rainforest is the most significant tropical rainforest in Australia and sustains a unique range of flora and fauna. Over the past 100 years parts of the Daintree have been cleared to create land for farms, which are no longer in operation. Planting back these cleared areas with rainforest trees provides important habitat for threatened species. Over 100 threatened species rely on the Daintree habitat for their survival.

Ciaran Mara, Invoice Processing Manager, championed the project. Ciaran said, "Scanning has created a catalyst for efficiency and process improvements within the Orica invoice lifecycle. We are promoting Orica as a leader in process automation and focusing on greater efficiency for 2010".

Peter Horwing and Frank Volckmar from ReadSoft presenting

Bernard Kiernan, Ciaran Mara and Liliana Flynn

from Orica with the Eco Warrior Award.


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Energy Efficiency at KI Orica Mining Services

Kooragang Island, New South Wales, Australia

Orica Mining Services Kooragang Island (KI) have upgraded their site air compressors and Ammonia Plant desiccant air dryers, reducing their site electrical energy consumption by an estimated 0.8 per cent, resulting in a reduction of greenhouse gas emissions and saving approximately $60,000 per year.

Ammonia Plant Desiccant Air Dryers

KI have replaced their desiccant air dryers and improved the dryer's process control to ensure greater efficiency. The dryers are twin towers; while one operates the other is regenerated (i.e. the silica gel beads are dried out). When a tower is being regenerated hot air is needed. This is done with energy-intensive heating elements.

The new dryers incorporate a dew point meter. This means that the new dryers only change towers when one is fully saturated. The old dryers used to change on a time basis only, every four hours. The changeover of the new towers is averaging in excess of 23 hours, reducing their energy consumption by an estimated 83 per cent, resulting in a reduction of greenhouse gas emissions and saving approximately $6,000 per year.

Site Air Compressors

Air compressors are integral to the continuous operation of the site, so changing them out was carefully planned to minimise disruption to the business. The project involved the cooperation of a number of resources working together: a Project Team, operations and maintenance co-workers from the Ammonia and Nitrates plants, along with specialised contractors Downer EDI, Thomas & Coffey and Atlas Copco.

Hired compressors were brought in to meet the site's airflow requirement during the two-week change out period in September 2009. After considerable planning, the western wall of the Compressor House was removed and the site's existing compressors were shut down. The old compressors were removed, along with their air and cooling water pipe work and the control system. The new compressors were promptly installed, along with new pipe work, flow meters, pressure transmitters and control system. After a week of thorough testing, the Compressor House wall was reinstated and the new system was handed over to operations - a successful project with beneficial environmental and economic outcomes!

The new air compressors have reduced KI's energy consumption for the generation of compressed air by an estimated 30 per cent, resulting in a reduction in greenhouse gas emissions and saving approximately $54,000 per year.

The new desiccant air dryer in action.


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Nigel Kellner, Project Manager at Kooragang Island, was responsible for the overall coordination of activities and ensuring the project was delivered on schedule without any detrimental affect on plant operations.

"The project was completed very efficiently due to the cooperation and dedication of all personnel involved. KI's two compressed air systems (instrument and factory) are now being supplied by the two new compressors. An upgrade to the interface control has allowed the system to supply air to the two main manufacturing areas at different pressures. The incorporation of a variable speed compressor has meant that compressors are no longer loading and unloading with fluctuations in air demand. This has not only resulted in energy savings but a more reliable air supply pressure for Ammonia and Nitrates plants."

The new air compressors installed (left) next to an

old air compressor (right).


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Alkali Tank Farm Completion Orica Chemicals

Mount Maunganui, New Zealand

A new tank farm, piping system and Truck Park have been introduced at our Mount Maunganui Chemicals site to ensure safe operation of our blended alkalis business. The NZ$7 million project achieves the following benefits:

• Compliance with New Zealand's HSNO legislation and the site's Stormwater and Wastewater Discharge Consent;

• Continued operation of the Mount Maunganui site; • A reduced risk of catastrophic tank failure and loss of containment during seismic events; • Increased inventory accuracy of products stored in and dispatched from the new tanks, through the

installation of electronic tank level indication and product flow metering equipment; and • Increase in efficiencies through batch loading at tanker gantries.

Mount Maunganui's new tank farm and piping system

will help improve site safety and legislative compliance.

This project was critical to ensuring regulatory compliance and the continued operation of the Mount Maunganui site. We will continue to proactively monitor our compliance with local guidelines to ensure we conduct our business in a safe manner, with the added bonus of minimising water, washings and effluent discharged from site.


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Smarties at Head Office Orica Corporate

Melbourne, Victoria, Australia

The Global Green Office Programme was launched at Orica's Head Office in December 2008 with an "environmental smartie" audit. Employees got a box of chocolate smarties (i.e. confectionary treats) if they achieved all of the following:

• Their computers were turned off overnight; • Their screens were turned off overnight; and • Their office paper recycling bins contained only office paper.

In the first audit, an overall average of 24 per cent of people were environmental smarties. This increased to 43 per cent after the second audit and 46 per cent after the third audit (100 days later) - a fantastic result!

The Site SH&E Committee worked with the Sustainability Team to improve signage on the recycle and general waste bins, provide reusable crockery and cutlery in lunch rooms to eliminate disposable items and educate staff on the simple ways to become more sustainable.

A Mobilemuster campaign was run throughout the Head Office building. Mobilemuster is Australia's national recycling programme for the mobile phone industry and aims to prevent mobile phones ending up in landfill. Visit www.mobilemuster.com.au for more information.

Environmental smarties have their screen and computer turned off,

and only paper in their office paper recycling bin.


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Overview Orica employs more than 15,000 people with operations in 47 different countries and servicing customers in more than twice that number. We are committed to valuing people and the environment and ensuring no unintended consequences to the communities in which we operate.


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Overview Orica employs more than 15,000 people with operations in 47 different countries and servicing customers in more than twice that number. We are committed to valuing people and the environment, and achieving no injuries to anyone, ever. Our SH&E Policy states that we will:


• Require every employee and contractor working for us to comply with relevant legislation and with this policy and we will provide them with the necessary training; and

• Encourage employee initiatives that contribute to a safer and improved environment at work, at home and in the community.

Our Culture Much of our growth has come from geographic expansion, resulting in cultural, language and workplace-relations diversity. A strong organisational culture is critical to ensuring that we all share a common approach to the way we do business. Our four "Deliver the Promise" principles support our performance-based culture. These are:

Safety, Health and Environment - Ensuring Our Future

• No injuries to anyone, ever • Value people and the environment

Working Together

• Success as a team and success as an individual

Commercial Ownership

• Run the business as if its your own

Creative Customer Solutions

• Think differently, deliver swiftly and capture the value

Our culture empowers and motivates Orica's people to achieve long-term, sustainable results. Our employees were responsible for developing these key principles and we have incorporated them into our performance management process. Annual objectives are set within the framework of the principles and our activities and behaviours, both as individuals and as a company, are constantly measured against the principles.


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Labour Practices Equal Employment Opportunities

Orica formally supports the principles of Equal Employment Opportunity (EEO) through its EEO policy and recruits staff purely on a merit basis. Orica is committed to creating a respectful inclusive work environment and is currently reviewing its diversity strategy and the practices that support the Company's diversity journey.

We are currently reviewing our diversity strategy and aim to establish new objectives in 2010.

Appropriate Work Environment We strongly believe that all people have the right to work in an environment free of discrimination and harassment. We will not tolerate harassment to our employees or members of the general public. We support an individual's right to object to harassment or discrimination, and undertake to protect people who use this right responsibly against backlash or subsequent, unfair treatment.

Commitment to Employment Although Orica does not provide union information, employees are free to join unions and other associations and Orica work sites range from completely non-unionised to entirely unionised. All Orica contractors are subject to the same opportunities and conditions as Orica staff. Upon offer of employment, new staff are required to commit to Orica's Deliver the Promise principles and behaviours. They are also required to adhere to Orica's Code of Conduct which prohibits discrimination and harassment. All staff sign a Safety, Health and Environment Charter which commits them to engaging in safe and environmentally responsible work practices.

Orica has adopted a consultative approach to advising employees about operational changes that affect them. While the minimum notice period varies between business units, the Company as a whole aims to inform employees about relevant changes as soon as practicable.

Our SH&E Model Procedures require that all of our employees are represented in formal management-worker health and safety committees. In 2009, these committees were established and functional at most of our sites.

Each Orica business group has a dedicated Human Resources department that can handle employee grievances and complaints. In addition, the Company operates an independent service which allows employees to confidentially raise issues of concern.

Workplace Flexibility Orica values our people and is committed to providing and maintaining a flexible work environment. We aim to enable staff members to manage their work, family and lifestyle responsibilities whilst maintaining business requirements. We understand that employees work more effectively when their life is in balance and recognise that employees have different needs and personal commitments.

Workplace flexibility is about thinking innovatively about the way employee's working conditions are structured. It is an approach whereby managers and employees work together to agree on workplace arrangements that are suitable for both the employee and business requirements.

Benefits include:

• Attracting and retaining skilled and motivated employees; • Increased productivity by more energetic and focused employees; • Reduced absenteeism;


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• Increased employee engagement, satisfaction, trust and respect; and • Improved work-life balance and alignment with our sustainability strategy.

Orica's Flexible Work Practice Policy covers part-time employment, job sharing arrangements, flexible working arrangements, flexible return from family leave, phased retirement and working from home.

Family (Maternity/Paternity) Leave

Orica offers family leave in line with legislative frameworks around the world. We keep in touch with those on family leave to ensure that they are kept abreast of Company developments and initiatives whilst they are absent, and to encourage return to work.

For example, in 2009, in Australia (the country with most employees), 96 per cent of women returned from family leave. Of these, the majority (77 per cent) chose to return to part-time roles, with several planning to scale up to full time work over time. 23 per cent of those returning chose to return to full time roles immediately on their return from family leave. Most employees returning from family leave rated the Orica Leave Policy highly.

Staff Training and Development Orica staff training and development aims to develop a broad range of competencies and is tailored to meet the specific needs of individual staff members. Formal objectives for staff development are mutually agreed upon by the individual and their manager, and performance is appraised against these objectives.

In addition to technical training specific to jobs, the Company offers a range of other training to develop individuals for their current and future roles within the organization.

Employee Assistance Programme From time to time, employees may have issues in their personal lives which impact on their health, wellbeing and ability to perform their work effectively. Such issues can range from drug or alcohol dependence of the employee or of a family member, to marital breakdown. Orica offers assistance to these employees. This includes:

• Referral or self referral to an Occupational or Employee Assistance Service (i.e. professional counsellor); and

• Chaplaincy Service.

Our Employee Assistance Programme (EAP) in Australia continues to be used by employees in need. A total of 176 employees used the EAP programme in 2009 (146 employees and 30 family members). This represents a periodic usage rate of 3.91 per cent (a slight increase on the 2008 usage rate of 3.59 per cent).

The 176 employees comprised 155 new clients, and 21 continuing with the service from the previous year. The average age of those using the service was 39. More males (69 percent of the client group) use the service than females, reflecting the overall group employee profile.

Integration of Sustainability Roughly 60 per cent of Orica's worldwide staff have formalised annual objectives. These staff members have training and personal development incorporated into their annual objectives and performance reviews, and all staff members must have at least one annual objective (which is incorporated into their annual performance review) relating to an issue of safety, health or environment.


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Human Rights Increasingly, Orica businesses are operating in more remote regions. This presents new challenges for an organisation that, little over a decade ago, was primarily operating in Australia and communicating in a single language - English.

Today we have operations in 47 countries and sell into many others. We publish the monthly Company newsletter in English and 12 other languages including:

• Deutsch; • Español (Spanish); • Français (French); • Bahasa Indonesia (Indonesian); • Português (Portuguese); • Russian; • Türkçe (Turkish); • Mandarin (Chinese); • Hindi (Indian); • Norsk (Norwegian); • Svenska (Swedish); and • Polish.

It is critical that we succeed in promoting our core values to customers and employees in these regions, while remaining responsive to their concerns about the future of the environment and the communities in which they live. We see our social responsibilities as being complementary to our financial performance and a critical component of both our licence to operate in all regions of the world and our ability to attract and retain the best employees.

Our Performance in 2009 Orica takes all reasonable steps to ensure that we don't employ child, forced or compulsory labour. Our Code of Conduct requires that we "comply with the letter and spirit of the laws affecting Orica's businesses". We do not currently operation in any countries where these practices are condoned.

We have consistent policies in place globally to ensure reasonable working hours and conditions and minimum age for employment.

In 2009 we did not receive any complaints of child, forced or compulsory labour.


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Our People in 2009 It is the calibre of our people that has largely driven our success in 2009 and will determine how well we take advantage of the very strong strategic position we have achieved. Today we employ over 15,000 people around the world and more than half of our business now takes place outside of Australia and New Zealand - a very marked change from our beginnings (refer Graph P1). Despite the dozens of different languages and diverse backgrounds of our global workforce, our employees are united by a common commitment to our Deliver the Promise principles. These principles are intended to guide all of our employees in their day-to-day decisions and empower them to perform to the best of their ability.

Recruitment, professional development and talent management programmes are very important. Our graduate recruitment and development programme has further expanded to operations around the world this year, ensuring that we attract the best and brightest to build an even stronger, more competitive Orica.

Read more about our graduates in our case study Global Graduate Programme.

Our Employee Profile in 2009

Employees by Region Employees by Contract Type

Graph P1. Graph P2.

Employees by Gender Employees by Business

Graph P3. Graph P4.

Diversity and Equal Opportunity

In 2009 we:


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• Commenced a dialogue with our Board on diversity issues and established a working group of male and female employees from various businesses to start preparing a diversity strategy;

• Amended external advertising in various markets so that it now feature images of current female staff together with concepts that we identified will appeal to women seeking employment (e.g. flexibility, challenge, rewards etc);

• Attempted to retain and re-deploy high potential women within a challenging business climate; • Continued to support of family leave employees to return to part time positions and ensure that they

receive communication while on leave. Family leavers appreciate this connection with Orica during their absence. We continue to educate managers about flexible working arrangements and working with employees through varying circumstances;

• Commenced a review of key Human Resources and Equal Employment Opportunity policies. Businesses are working collaboratively with each other to ensure consistency across the Company;

• Expanded our global graduate programmes so that we now have good graduate pools in all regions, using a standard suite of graduate development workshops in their first three years with the Company; and

• Continued with our talent management development process that focuses on identifying and developing key talent across our global organisation. In addition to developing key knowledge and skills our development programme focuses on developing Orica's key management competencies.

Currently six per cent of senior managers and 11 per cent of Non-Executive Company directors are female.

Whilst in 2009 the numbers of our senior managers declined due to company restructuring, we are continuing to sustain our pool of junior to middle female managers. For example in Australia, 14 percent of junior to middle managers are female.

Diversity data below senior manager level for other regions is managed at the business level and is not yet aggregated centrally.


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Overview We are committed to valuing people and the environment. We aim to ensure no unintended consequences to the environment and the community. Our commitments to carbon, water and waste neutrality will also have a positive, indirect effect on our local and global communities.

Our SH&E Policy states that we will strive to ensure our facilities operate to the highest standards to protect our employees, contractors, neighbours and the environment.

Our commitment to the communities in which we operate is an integral part of our sustainability strategy. We recognise and value our employees for their ability to meet the needs of our customers and the community in an environmentally sustainable manner. All sites are required to develop good working relationships with their neighbouring communities. This includes creating site Community SH&E Reports and formal Community Relations plans.


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Targets & Performance Challenge 2010 Targets & Performance - Community Safety

2009 Status:

Target exceeded or

ahead of schedule

Target achieved or

on track



2009 Performance

No distribution incident fatalities

Distribution incident fatalities: 0 (contractor drivers or members of public)

5 distribution incident fatalities in 2009, compared to 7 in 2008

Reduce the number of serious site

losses of containment

Number of site losses of containment (Category 2 or higher): <4

3 site losses of containment in 2009, compared to 5 in 2008

Reduce the number of serious

distribution

incidents involving our products

Number of distribution incidents (Category 2 or higher): <12

43 distribution incidents in 2009, compared to 24 in 2008

No environmental

licence non-compliances

Number of environmental licence non-compliances: 0

33 environmental licence non-compliances in 2009, compared to 18 in 2008

Disclosure on Management Approach

We are saddened to report that there were five fatalities to members of the public in four separate incidents during the distribution of our products in 2009. Whilst no fault was attributed to Orica drivers (employees or contracted-drivers) in three of the events, significant work is continuing in all businesses to build on the improvements made after a serious Mexico incident in 2007 as we will continue to review our approach and seek to avoid these incidents in the future.

This year we received 35 justified community complaints, a significant increase compared to the previous year. Whilst almost half arose from the one site, overall we believe this reflects our vigilance in the ongoing conduct of our operations and the success of improvement projects and procedures at some sites.

Our Emergency Response Service (ERS) responded to 381 calls in the Australasian region relating to our products and facilities in 2009. In August 2009 the ERS handled it 25,000th incident call and remains a member of the Australian Organisation for Quality (AOQ) Hall of Fame for quality excellence. Read our case study ERS Takes 25,000th Call.

We will continue to develop our approach to community engagement in 2010.


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Community Relations All of our major sites have a designated Community Liaison Officer who establishes and maintains relationships with the local community.

Orica is a signatory to the Responsible Care® "Community Right to Know" Code of Practice. Major sites are expected to communicate their safety, health and environmental performance to their neighbours on a regular basis. In addition, our Model Procedures require that the following information is made available to the community:

• Site inputs, processes and outputs and materials stored on site; • Material Safety Data Sheets for hazardous materials on site; • Transportation to and from the site; • Waste treatment and disposal; • Licences and permits from statutory authorities; • Fugitive and licensed emissions to the environment; • Reportable incidents involving the site or its products; • Future plans for the site and products, including the site SH&E improvement plans; • Emergency response arrangements; • Aggregated occupational health monitoring data; • Risk assessment results; and • Industry profiles of compliance with the Responsible Care® codes.


• Helping Habitat for Humanity; • Bataan's Coastal Clean Up; • Our Community in India; • Our Values in Venezuela; • Chile's Community Ties; • The Watermelon Challenge; • Employees Run For Home; and • Sweet Deals For Locomotives.


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Community Contributions Orica operates a corporate donations programme that is funded to the equivalent of dividends payable on a shareholding of 0.5 per cent of the Company's issued capital for donation in accordance with published criteria at the direction of the Corporate Governance and Nominations Committee.

Funds are also allocated to support the employee workplace giving programme, called "Dare to Share", by matching donations up to a certain value, across all of the twelve charities selected by our employees to receive donations under the programme.

In 2009, Orica supported the following organisations:

• Habitat for Humanity® whose vision is to build decent, affordable houses in partnership with those in need of adequate shelter, Orica is Habitat for Humanity® Australia's International sponsor;

• Landcare Australia whose projects address issues such as salinity, soil erosion, weed control, and improving water quality and efficiency, via the Landcare Gardening initiative;

• The Australian Science Media Centre (AusSMC) which supplies high quality and timely scientific information to journalists;

• The Nature Conservancy provides a strategic, science based approach to conservation, identifying and protecting the highest-priority places. Orica is supporting project work in the Murray Darling basin;

• Earthwatch Institute - Climate Change at the Arctic's Edge, working to quantify the impacts of climate change on northern American ecosystems; and

• A scholarship programme for undergraduate students in areas of study related to Orica's business.

All the projects supported are related to Orica's commitment to sustainability and science education and fit in the Orica Community Foundation's philosophy of building long-term relationships with a small number of selected organisations in order to help more enduring projects to be established.

At a business level, Orica Papua New Guinea contributed towards charity fundraising activities by taking part in the Pink Ribbon Luncheon to fundraise for the Cancer Unit in Lae; donated tee shirts to schools and Church Youth Groups; continued to support the MSREC Handicap Children's Clinic through supporting Audiology Screening; provided awareness to all staff on the Chlorea outbreak as well as providing staff in high risk areas with diluted solutions treat contaminated water; and staff at the Port Moresby site took time off to give the Cheshire Home a new face by painting the main kitchen, toilet/showers. Staff also donated second hand clothing to the Cheshire Home, which caters for the needs of disabled and homeless children.

In our Chemicals Group, Chemnet New Zealand raised NZ$1,300 for Oxfam. Oxfam New Zealand is dedicated to finding lasting solutions to poverty and injustice and works in partnership with poor communities across the world to help people identify and address the root causes of poverty. Chemnet New Zealand donated NZ$1,700 to The Lions Club Tauranga. Lions programmes serve the young and the aged, the disabled and the disadvantaged - anybody who has a need. ChlorAlkali Laverton donated an enclosed trailer to the Bacchus Marsh State Emergency Service which will be used as a Welfare trailer. Orica Chemicals Chile supports the Fire Corp of Quilicura (in Santiago, Chile) with donations and materials.


• Helping Habitat for Humanity; • Oxfam's Biggest Coffee Break; and • The Watermelon Challenge.

Orica does not make political donations.


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Distribution Incidents

A distribution incident is one that does not occur on one of our sites. It arises from the transport or storage of raw materials, products, intermediates or wastes owned by the Company or prior to delivery to the customer.

In 2009 we recorded 43 (Category 2+) distribution incidents, compared to 24 last year (refer to Graph C1). As a result of these incidents we are saddened to report that there were five fatalities to members of the public in four separate events. Whist no fault was attributed to Orica drivers (employees or contracted-drivers) in three of the events, we will continue to review our approach and seek to avoid these incidents in the future.

The fatal incidents were:

• New Zealand - an impaired member of the public was killed in the early morning when he walked in front of a tanker carrying caustic soda; in swerving, the contract driver went off the road, overturned and was also killed;

• Gomia, India - a member of the public was killed when the motorcycle he was riding hit the exhaust of a truck carrying ammonium nitrate;

• Chile - a contract driver was killed when he lost control of his vehicle and rolled the truck on the side of the road. He subsequently died of his injuries; and

• Tasmania, Australia - a motor vehicle and a distributor truck collided which resulted in a single fatality to a member of the public. The driver of the truck was not at fault.

Of the 43 Category 2+ distribution incidents reported, 18 occurred in Australia, 10 in Latin America, six in New Zealand, six in Asia, two in Europe and one in North America.

Following a serious distribution incident in Mexico in 2007, an extensive programme of improvement recommendations were identified. Significant work is occurring in all businesses to build on the improvements made after the incident. Working groups have been established in each business to implement the recommendations and cross-platform sharing is being facilitated by the corporate group.

Distribution Incidents

Graph C1.


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Emergency Response Service The Orica Emergency Response Service operates on behalf of over 100 subscribing client companies across a broad range of industries including the agricultural, chemicals and plastics, petrochemical, pharmaceutical, consumer products, transport, manufacturing and construction sectors.

The Orica Emergency Response Service (ERS) operates 24 hours a day, seven days a week, providing telephone advice and assistance to the public, emergency services and others on incidents relating to the transport, storage and use of chemical products and raw materials in emergency situations. The service has over 25 years experience in provision of emergency response across Australia, New Zealand and Asia-Pacific. Over 25,000 emergency incidents have been handled by the service since its inception. Callers to the service include customers and employees, transport carriers, emergency services, government authorities, hospitals, veterinarians, as well as members of the public. The ERS Coordinators are trained to handle a wide range of incidents from human exposures to transport emergencies.

The service can be accessed 24 hours a day from Australia and New Zealand via toll free numbers (1800 033 111 in Australia or 0800 734 607 in New Zealand), as well as via international access numbers from the Asia-Pacific region. These numbers are typically displayed on client company Material Safety Data Sheets, product labels, Emergency Procedure Guides, Emergency Information Panels, shipping documentation, client entries in telephone directories, emergency response plans and on after hours recorded messages. Callers to the service initially hear a recorded message, before being connected directly to an ERS Coordinator within approximately 20 seconds. All incoming calls to the service are recorded.

Trained ERS Coordinators (chemists/engineers) quickly assess the risks associated with any emergency situation by asking appropriate questions, using risk assessment checklists and referring to information databases as required. ERS Coordinators provide advice to help the caller establish priorities and rapidly bring the situation under control, while minimising any associated impact. Such advice typically includes instructions and guidance relating to:

• First aid, health effects and seeking medical help; • Product hazards; • Environmental protection; • Personal protective equipment; • Contacting emergency services; • Evacuation; • Spill clean up methods; and • Crisis management.

ERS Coordinators have immediate access to Material Safety Data Sheets and chemical information databases, as well as contact details for key personnel within client companies (in case further information or assistance is required). ERS Coordinators typically remain involved in the handling of the incident until the situation is under control, liaising with all involved parties. This involvement ranges from liaising with emergency services and treating doctors, to organising contract clean up resources on behalf of client company personnel and informing client company representatives of progress.

The ERS carries quality certification to ISO 9001:2000, ensuring that the systems and procedures of the service represent best practice and are subject to continuous improvement. Its flexible systems ensure that specific requirements can be readily integrated into the service provided.

Our Performance in 2009

ERS responded to 381 calls in the Australasian region relating to the Company's products and facilities in 2009. This compares with 335 calls in the previous corresponding period, and 331 in 2007. Major trends of note include:

• The total number of DuluxGroup calls remained fairly stable (four per cent decrease), however there were some significant shifts within the sub-Business Units. Decorative Coatings related calls


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increased by 35 per cent, whilst calls attributable to Selleys decreased by 13 per cent. Yates remained fairly stable;

• The total number of calls for the Chemicals group decreased by 18 per cent, which can be attributed to a significant decrease in the calls received pertaining to our Watercare business; and

• Orica Mining Services related calls increased by 300 per cent due to the introduction of Duress Alarms on OMS' trucks and initial set-up problems.

Of the 381 emergency calls during the year, 43 per cent and 12 per cent related to human and animal exposures respectively (mostly paint and DIY product exposures in the home), 20 per cent to security incidents (following the introduction of duress alarms on Orica Mining Services vehicles), 10 per cent to site losses of containment, and eight per cent to distribution incidents (refer to Graph C2). The ERS service is also provided to over a hundred external clients at a fee. Outside of Australia and New Zealand the businesses take direct responsibility for their emergency response.

In August 2009 the ERS handled it 25,000th incident call and remains a member of the Australian Organisation for Quality (AOQ) Hall of Fame for quality excellence.

Read our case study ERS Takes 25,000th Call.

Types of Emergency Calls

Graph C2.


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Community Complaints All sites are required to record and address community complaints, with the objective of eliminating all complaints by 2010.

We received 35 justified complaints in 2009, a significant increase compared to 14 in the previous year (refer to Graph C3). Whilst almost half arose from odour complaints from the one site, overall we believe this reflects our vigilance in the ongoing conduct of our operations and the success of improvement projects and procedures at some sites. All complaints are investigated, causes are identified and actions taken to avoid further community concern.

21 of our complaints received in 2009 related to odour, six to noise, five related to instances of a nitrous oxide cloud drifting over local residents and a neighbouring industrial site and one related to a contractor's vehicle parked during site building works.

Community Complaints

Graph C3.


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Helping Habitat for Humanity DuluxGroup

Newmarket, Auckland, New Zealand

Dulux® has been a proud supporter of Habitat for Humanity® since 1997 providing Dulux® paint and Cabot®'s stains.

Habitat for Humanity® is an international not-for-profit organisation whose ultimate goal is to eliminate poverty housing and homelessness by building adequate and basic housing.

Habitat relies heavily on volunteer labour, so the Dulux® Marketing team was keen to get together and help build a home in Auckland's Takanini. The house was dedicated to the family on December 14th so they were thrilled to be settled into their new home for Christmas.

We had a great day with the Habitat building team who were very patient in teaching us new skills. Between us we did lots of painting, installed kitchen cabinetry, siliconed around joinery and various gaps, installed wardrobe fittings and door handles. By all accounts, it was a very rewarding day and we all left with a sense personal satisfaction knowing that we were part of helping another New Zealand family into proper housing.

Habitat is not a hand-out but a hand up programme. Each partner family invests at least 500 hours of their own labour, called "sweat equity", into building their homes and the homes of others.

Once building is complete, the houses are sold to partner families on a not-for-profit basis and financed with affordable loans. The monthly payments from partner families are then reinvested through a revolving fund called the Fund for Humanity. This money is then used to build more houses.

For more information about Habitat for Humanity® check out www.habitat.org.nz.

The Dulux® Marketing team hard at work.

Job almost done!


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Bataan's Coastal Clean Up Orica Mining Services

Bataan, the Philippines

Orica Philippines Inc. (OPI) partnered with the Bataan Coastal Care Foundation Inc. and the Provincial Government of Bataan to participate in the 24th annual international coastal clean-up day. This is the third time OPI have participated in this event.

The United Nations Environmental Programme (UNEP) recognises that "Marine litter is one of the most pervasive and solvable pollution problems plaguing the world's oceans and waterways".

Early on the 19th of September, the OPI Team prepared the cleaning materials and the vehicle that brought them to the coast of Bataan, along the coast of Limay town.

Teachers, students, residents with their Barangay (the Head Village) Captain and the OPI Team met at the coastal area in one of the Barangay in Limay. Enjoying the early sunrise and the cool breeze at the coast, the OPI Team collected all the garbage found in the vicinity. By the end of the day, the team had collected more than a half tonne of garbage.

Danny Gonia, SH&E Coordinator OPI, was the team leader for the event. Danny said, "The clean-up day in Bataan was televised nationwide and we were proudly saying 'we are part of that coastal clean-up!' It was a great feeling and we are proud to be involved in cleaning up our local environment."

Pictured below: The Orica Philippines Inc. team participating in the international coastal clean up day.

The team hard at work on the coast of Limay town.


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Our Community in India Orica Mining Services Gomia, India

More than 1,000 people work for Orica, Gomia, the first commercial explosives factory in India. The Gomia site is a remote location and is the only major source of employment and trade in the village and surrounding areas.

The site has its own hospital that is available for the local community to use at a nominal cost. Gomia also provides water to a nearby government-housing colony and, during summer months, to other remote villages with scarce water supplies. We encourage community engagement at Gomia by organizing public sporting activities on our sports ground; a big attraction for the local community.

The team at Orica Gomia recently celebrated their Golden Jubilee,

commemorating their 50th year of operation.


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Oxfam Biggest Coffee Break Orica Chemicals

Mount Maunganui; and Newmarket, Auckland, New Zealand

Oxfam New Zealand was organising a fund raising event for coffee growers in third world countries, which involved holding a coffee break at work and inviting colleagues to enjoy some Fair Trade coffee and hot chocolate, and to make a donation to Oxfam.

Colinda van der Sluis from our Chemicals Head Office in Auckland and Lesley Macalister from our Chemicals site in Mount Maunganui decided this would be a worthwhile charitable event to hold, and would also support the successful implementation of their Green Office programmes. The date was set for Tuesday the 5th of May and a friendly challenge ensued between Newmarket and Mount Maunganui (the Mount) as to who would raise the most money.

The Mount decided to have a bake off to encourage people to come along and participate. For a NZ$5 donation staff received a cup of coffee and something to eat ... and most people generously donated more. The bake off had a fantastic response and there was some good rivalry and banter going around on the morning, along with recipe requests! The social club donated a NZ$50 shopping voucher as the prize for the winner of the bake off and also another NZ$50 to Oxfam. The bake off winner was Grant Taylor with his chocolate chip cookies!

In Newmarket, volunteers kindly offered to help bake some goodies for all to enjoy on the day. Everybody was invited to the Boardroom at 10am, where we had placed the coffee machine and there was soon a queue of people lining up to pour themselves a cup of Ethiopian Harar coffee or a hot chocolate, for the donation price of NZ$4. Once again, people were generous and many donated more than this amount. The home baked cakes and biscuits were fabulous and as staff enjoyed their cuppa they watched a DVD sent from Oxfam which showed the plight of coffee growers in third world countries who earn only around three cents for every $3 cup of coffee we buy. Fair Trade and Oxfam are doing some

Colinda van der Sluis (left) and Lesley Macalister (right)

promoting Oxfam's Biggest Coffee Break ahead of the friendly challenge between Auckland and the Mount.

Grant Taylor accepting his prize in the bake off.


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wonderful work to ensure the coffee growers get a better deal and we can help by buying Fair Trade products. Both Newmarket and the Mount had a fantastic response to the event and Orica staff donated generously. The Mount raised NZ$200 and Newmarket raised NZ$270. The management team then matched the Newmarket donations, bringing the grand total raised for Oxfam to NZ$740.

Newmarket staff enjoying morning tea whilst supporting Oxfam (above) and morning tea at Mount Maunganui (below).


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Gracefield's Beach Day DuluxGroup


To celebrate the achievements made as part of the 100 Day Sustainability Challenge, staff members based at Dulux® Gracefield took their environmental enthusiasm to the beach.

The Dulux® Sustainability Champions - an internal team dedicated to decreasing the company's eco-footprint - organised, with the Hutt City Council, a tree planting and beach clean up at Muritai beach in August 2009.

More than 40 Dulux® staff members attended the beach clean up which involved removing weeds and moving sand to make a more effective planting area before planting 280 seedlings.

The purpose of the plantings was to make functional dunes to create a buffer for buildings and keep sand on the beach. The Hutt City Council supplied seedlings, shovels and directions on the day and has invited Dulux® to help out again once the council has more seedlings.

All Dulux® staff members greatly enjoyed the day and Wellington put on perfect weather for the occasion. "This type of activity has a number of benefits" said Dulux® New Zealand SH&E Manager, Robert Cordner, "Our staff get the opportunity to have fulfilling, non-routine work experience that contributes tangibly and directly to the community, we are strengthening our relationship with local council and generating positive publicity for our business."

These types of events recognize our employee's desire to make meaningful contributions to their local community and environment. We now plan to have two clean up days each year.

Some of the team from Gracefield at Muritai Beach. Rob Cordner, Dulux® New Zealand

SH&E Manager, gets his hands dirty.


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Muritai beach with 280 new seedlings.


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Our Values in Venezuela Orica Mining Services

Venezuela

We are dedicated to supporting the needs of our 100 staff at our Venezuelan bulk and package emulsion operations.

We are developing activities within the Venezuelan national programme Seeding Values for Life. The general objective is to train employees and their families in implementing plans and prevention programmes related to the consumption of alcohol, drugs and psychotropic substances through training in values and life skills. Our staff also participate in technical training and safety tutorials, with the aim of passing this knowledge on to their families and the community.

We maintain an open-door policy for ad-hoc requests for support and donations to schools, hospitals and research centres that are located in areas adjacent to our facilities. These requests are assessed and responded to according to the needs of the community.

Evelyn Luna, Executive Assistant and

Communication Administrator, Orica Venezuela. The team from Moron during exercises.

The team from Moron during training. Rebeca Molina, Tax Analyst, Orica Venezuela.


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Chile's Community Ties Orica Mining Services Chile

Orica Chile continues to forge strong ties with the community through a number of activities held around the country during the year. A work programme for 2008 was developed with Orica Chile Human Resources to create a strong relationship between Orica, its employees and the general community through a series of events and workshops.

Examples of the activities include:

• The Painting the Enterprise painting Contest - This event is celebrated every year at the sites and offices of Orica Chile. Employees' children are provided with materials to paint the place where their parents work;

• The Cueca workshop - Orica workers, their wives and families were invited to learn how to teach dance and spread the national dance throughout the community. Dancing is a great way to relax and the aim of the workshops is to help to relieve stress and weariness when rolled out to the greater community;

• Support for education - Orica Chile has helped a number of employees' wives to finish their high school studies. For many reasons these women did not complete high school and are provided with the opportunity to study while balancing their home life. One of the success stories from this programme is Luz Eliana Diaz Contreras, the wife of Orica employee Luis Diaz from the Tugal site. Luz is completing her freshman and sophomore studies and will next year begin studying for her senior and junior qualifications. Graduating at the end of 2009, Luz is a great inspiration to other students;

• Supporting the disadvantaged - Orica workers and their families recently participated in the Solidarity Campaign with the Aged Institution Nuestra Señora de la Candelaria, to collect non-perishable food to help the disadvantaged at the institution. Orica has signed a commitment for a monthly contribution of food over the next year; and

• Training workshops - Orica employees and their families attended a Family Budget workshop to learn techniques to prevent over-consumption and assist in purchasing decisions. A First Aid workshop was also offered to outline basic skills to assist someone who is in need of medical assistance. Participants were trained in cardiopulmonary breathing.

Orica employees and their families share a dinner with the nuns in charge of the institution to which food is being provided.

Training our employees in basic first aid skills in Chile.


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Yates Launches Kids Website DuluxGroup

Australia

Garden Greenies is the name of the new, just-for-kids Yates® website. The brainchild of Yates® Promotions and Advertising Manager, Rachel Henze, and the Yates® "webmaster", Jon Dunkley, Garden Greenies will be filled with all sorts of exciting activities for keen young gardeners.

There are projects that are tailored to kids' interests (for example Making a Scarecrow and Building a Tepee), garden games, quizzes, colour-in downloads, helpful hints for growing your own food and a special section for schools where they can enter the Greenie School of the Month competition.

Kids can sign up for regular e-newsletters that will keep them interested in what's happening in their gardens and in the natural world.

"It's frightening to think that so many children don't even know where their basic fruit and vegies come from," says Rachel Henze. "Garden Greenies will re-connect kids with the outdoors and, hopefully, inspire a new generation of gardeners."

To have a look at this fantastic new web adventure, visit www.yates.com.au/kids-gardening/. To learn more about our Yates® garden club and for monthly tips and great information to help in your garden visit www.yates.com.au.

Garden Greenies website for kids.


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Sharing Deliver the Promise Minova and Orica Mining Services

North America and China

Our Deliver the Promise (DTP) principles are Safety, Health and Environment; Commercial Ownership; Creative Customer Solutions; and Working Together.

As we continue to grow through geographic expansion, it is critical that we all share a common approach to the way we do business. In 2009 we continued to communicate our DTP approach throughout our existing and new businesses and joint venture partners.

Minova in North America

More than 400 Minova employees in North America were introduced to Orica's DTP culture programme this year.

Angela Gartrell, purchasing assistant in Bowerston, facilitated a number of the sessions and received positive feedback from attendees.

"Employees were very engaged in the workshops, and several of them commented afterwards that they actually had fun learning about DTP," Angela said. "As a facilitator this was great to hear. Employees appreciated being heard and knowing that their ideas matter."

Employees in South Africa and Australia have also completed the training. Deliver the Promise workshops are being held in Europe and will be completed by the end of July 2009.

Orica Mining Services and Hunan Joint Venture in China

In 2008 Orica announced it had entered into a joint-venture agreement with Hunan Nanling Industrial Explosive Materials Company Limited (Nanling) to establish a new non-electric detonator initiating systems plant in China. The joint venture will have installed capacity to produce 40 million detonators when commissioned in 2010.

In mid-February, employees were introduced to the Deliver the Promise principles in an interactive session held at the temporary offices of Hunan Orica Nanling Civil Explosives Company (HONCE). The chairman of both HONCE and Nanling, Chen Guangzheng, also attended the sessions.

Participants learnt about Orica's founding principles and the joint-venture team developed a chart to provide a clear direction on how to live the four principles. The day concluded with everyone signing a copy of the Deliver the Promise poster for display at the offices. Keiran Balkin, general manager of HONCE, said he was delighted with the response to the DTP training and the positive acceptance of all attendees.

"Attending these sessions is an important part in enhancing our understanding of what will be the company's unique culture, using the four pillars - Safety, Health and the Environment, Creative Customer Solutions, Commercial Ownership and Working Together - to guide our behaviour," Keiran said.

SH&E - Ensuring Our Future

Working Together Commercial Ownership Creative Customer Solutions


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Global Graduate Programme Orica

Global

Orica's Graduate Programme continues to expand to include graduates beyond Australia and New Zealand, proudly launching the Orica Global Graduate Programme in Asia and Europe during 2008.

The first development workshops for new starters in Asia and EMEA (Europe, Middle East and Africa) were held in the second half of last year with eight new graduates attending the EMEA workshop in Germany and a further 19 new starters attending the Asia workshops in the Philippines.

The first ever EMEA graduate class.

Larry Fisher, Group Human Resources Manager for Orica Mining Services, said the introduction of these workshops was a significant milestone in the rollout of the Global Gradate Programme.

"The development programmes aim to transition these young career professionals from their technical and functional skills base into the "real workplace", assisting them to align acquired knowledge with practical application," Larry said.

"There is also a focus on developing appropriate organisational and leadership behaviours aligned to our Deliver the Promise culture to maximise the graduates' fit with the company."

Supriya Iyer, Group Practice Leader, Human Capital is confident about the future of the Graduate Programme. "We continue to strive towards a global programme, with graduates employed in all of Orica's operating regions," Supriya said.

"This year the programme has been rolled out into Latin America. We have allocated scholarships to our growth regions to ensure the ongoing supply of talent into our engineering and science groups."

The current Global Graduate community consists of more than 100 employees across the globe from eight professional fields: engineering, mining engineering, marketing, science, supply chain, finance, information technology and human resources.

The success of the programme is attributed to the quality of the positions offered to individuals, the availability of mentors, the structuring of rotations to broaden technical and business knowledge as well as the opportunity to network with other young professionals and senior leaders for the duration of the three-year programme.


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The 2008 intake of graduates in Asia attend their first development workshop in Manila.


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Our Women in Business Orica

Papua New Guinea

Three female employees from Orica Papua New Guinea (PNG) were nominated for the 2009 Westpac Women in Business Award. These Awards recognise outstanding achievements by PNG women at work and in the community. A special mention goes to Gaye Kapi whose exceptional submission and commitment took her all the way though the rigorous selection and interview process to become one of three finalists in the Private and Corporate Sector. While this award was eventually won by another inspirational PNG business woman, Mary Handen, Gaye was a proud representative of DuluxGroup and great example of what women in PNG can achieve through their career.

The following employees were nominated for the awards. Their inspiring stories are below.

Gaye Kapi, Dulux Paint Sales Representative Private and Corporate Sector

Maryanne Gali, Orica PNG SH&E Officer Private and Corporate Sector

Hirata Tomaing, Junior Accounts Payable Clerk Young Achiever Sector

Gaye Kapi - Dulux Paint Sales Representative

Gaye is responsible for managing refurbishments and new building fit-outs in PNG for DuluxGroup. She is one of the first, if not the only female that works in this male dominated technical field. Gaye is a single mother of five children, and has overcome many obstacles to get to where she is now. Often the only woman on a building site, Gaye knows her self respect, honestly and commitment can win the respect of her male peers and colleagues in the building industry. Gaye is very active in her community and has organised donations of paint and volunteer labour to the local Cheshire Homes, which look after disabled children. She also organised a team from Orica PNG to participate in a "walk against corruption" in June this year. Gaye is a member of the PNG Business Professional Women's Group, who assist young girls in financial hardship with scholarships for education.

Maryanne Gali - Orica PNG SH&E Officer

Maryanne's role revolves around continuously improving Orica PNG's safety, health and environmental performance. Part of her role requires her to train employees on SH&E, and coach, mentor and monitor performance. One of Maryanne's greatest achievements was organising a Health Expo to celebrate the 40th anniversary of Dulux. She invited speakers to present on nutrition and malaria, and distributed mosquito nets and health related equipment. Maryanne was instrumental in the development and implementation of Orica PNG's Workplace Policy on HIV and AIDS. This policy aims to prevent new infections and ensure that Orica PNG mitigates the impact of HIV and AIDS in the workplace by supporting employees and their families with information, counselling and medical services. Maryanne was recently elected Public Relations Chairperson in the Rotary Club of Lae and is running a project with their support to install 10 water tanks in the community.

Hirata Tomaing - Orica Junior Accounts Payable Clerk

Hirata began working for Orica in 2005 and has progressed through to the accounts payable team. As an employee at Orica she is involved in ensuring safety in the workplace. Hirata gives regular safety talks and helps ensure the office keeps to safety standards. Hirata is a very successful soccer player; she has been playing since she was five years old. Hirata plays for the PNG Power Soccer club as striker and her club has won the PNG grand final nine times and the PNG champions title four times. She used her experience in soccer to set up a winning soccer team at Orica, encouraging women to get active in a safe environment. She also mentors and trains many younger players.


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Meet Orica's Oldest Employee DuluxGroup

Chippendale, New South Wales, Australia

At 89, Con Cannon is Orica's oldest employee but has energy and enthusiasm that would leave many half his age floundering.

"I'm hands-on and like what I do and like working for Dulux®," Con explained.

It seems the feeling is mutual. "He's very special to us," said Angela Krol, National Trade Stores Manager for Dulux®.

"It's an amazing achievement to gather all the experience he has and still be going strong at his age. Not only is he a highly valued member of staff, he is also valued by our customers because of his expertise in the paint industry. We celebrate his birthday every year to make up for all those years that we missed it because he didn't want to tell us how old he was."

Con's 89th birthday was no exception. More than 40 current and former colleagues and treasured customers gathered at the Chippendale Dulux® Trade Centre for a celebratory lunch in honour of "young Con Cannon" last October.

While Con broke his service for just a few years, his career at Dulux® spans 48 years. He has no intention of stopping any time soon.

"I'll keep working for as long as I am physically able and mentally alert. If I retired my brain would die and so would I," Con said.

Con joined the Australian Navy at age 14 and signed on to HMAS Kanimbla in 1936. HMAS Kanimbla went to work on convoys from India to Durban and to the Persian Gulf. The most significant action was to come in 1941 during World War Two. Later in Con's naval career, he transferred to Westralia before finally leaving the navy in December 1944.

"I started liking paint during my time in the navy during the war," Con said. "We would paint the ships, so I was more than happy to start as a paint salesman following my retirement to dry land and I've never really tired of the paint business."

Con is looking forward to celebrating his 90th birthday in October this year.

Con celebrates his 89th birthday with colleagues and customers at Dulux®'s Chippendale Trade Centre.


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The Watermelon Challenge

DuluxGroup

Australia

The Junior Landcare Watermelon Challenge competition kept kids across Australia entertained for the entire summer while inspiring them to think about sustainability and the environment, thanks to some help from Yates®.

Held between November 2008 and March 2009, the Challenge called on schools, youth groups and kids under 16 across Australia to grow the largest watermelon. It also taught them about local food, "food miles", healthy eating and encouraged them to get out-and-about in the great outdoors.

Participants received free Yates® Country Sweet Watermelon or Yates® Candy Red Watermelon seeds and a booklet containing expert tips for growing when they registered.

In addition to tending their watermelons with love and care, participants were required to log on regularly to the Junior Landcare Challenge website and record their melon's circumference and weight.

Yates® Country Sweet Watermelon Winner

Alexandra Briton, 15, of Parkes won the Country Sweet Watermelon Challenge with a mammoth 18.5kg watermelon! It was grown completely organically with no chemicals or inorganic fertilizer. The garden bed had lots of manure so Alexandra raised the pH by adding pot ash and lime.

Yates® Candy Red Watermelon Winner

Brendan O'Malley, 6, of Boronia Heights triumphed over nearly 10,000 competitors to win the Candy Red Watermelon Challenge, with his watermelon weighing in at a massive 17kg! This is almost double the weight of your average Candy Red watermelon. The seed was planted just before heavy rain fall and Brendan found the giant winner hiding in the vines.

This years Australian kids will be honing their gardening skills over summer through the Junior Landcare Pumpkin Challenge! They will receive a free packet of pumpkin seeds from Yates® and compete to grow the biggest pumpkin.

Country Sweet Watermelon Challenge winner, Alexandra Briton, with her winning watermelon.

Bailey and Sam Sieracki made it to the finals with

their monster melon!


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For more information visit www.juniorlandcarechallenge.com.

Brady Coad was another of the happy finalists ... ... As was Toby Palmer.


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Employees Run For Home


Manila, the Philippines

The Orica Philippines commercial team completed a three kilometre fun run to support Habitat for Humanity® in its efforts to build new homes in a nearby area.

Louie Sarmiento, Orica Philippines Inc. Commercial Manager said, "Aside from the fact this is a healthy team-building activity, proceeds of the event will go for a good cause.

"The running team from Orica Philippines had a great time during the race, knowing that running will keep people off the street by helping them have a place which they can call home."

More than 6,400 participants from all over the country took part in the event which raised 7 million Philippine Pesos, equivalent to $160,000. The new houses at Dayap Laguna, located 21 kilometres south-east of Manila, will accommodate more than 100 homeless and relocated families from the city.

Orica is a major sponsor of the Habitat for Humanity® International programme and, together with the help from local sites, is making a big impact on rural and impoverished communities by providing new housing.

The commercial team participating in the fun run (from left)

Pete Rudio, Malou Torreliza, Nat Labuson and Ringgo Olasiman.


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Sweet Deal For Locomotives

DuluxGroup

Australia

Dulux® Protective Coatings sponsors the Australian Industrial Railways Narrow Gauge Restoration Project. The Society is committed to restoring our past heritage in locomotives. These locos were primarily used for hauling sugar cane from the Queensland sugar fields.

The locos are being restored in Victoria. The extensive restoration work involves cleaning, stripping and repairs to damaged sections, and, where necessary, complete replacement of damaged sections such as flooring, before applying the Dulux® Metalshield Coating system.

Our sponsorship involves the supply of Dulux® Industrial Metalshield products for the restoration and continued protection of these national treasures.

The connection between Dulux® Protective Coatings and the sugar industry is through our supply of products to Sugar Mills in North Queensland, so our sponsorship to the Narrow Gauge restoration project goes some way to giving back to the industry which supports our business.

Using Dulux® products to restore and protect our national treasures.


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ERS Takes 25,000th Call

Orica Corporate

Australia and New Zealand

In August this year, Orica’s Emergency Response Service (ERS) handled its 25,000th call, helping out countless Australian and New Zealand employees, members of the public and emergency service organisations in the process.

Operating 24 hours a day, seven days a week, the team provides an essential service to the public, emergency service organisations and others on incidents relating to transport, storage and the use of chemical products. Typical incidents include human or animal poisoning, storage leak or loss of containment, transport incidents, including spills and property damage and product fires.

Kate Rowe, ERS Manager, said team members underwent a rigorous induction procedure to ensure they were ready to assist callers and the service was regularly audited to ensure it operated to best practice.

"In February the ERS Quality Management System was recertified by Lloyd’s Register Quality Assurance to AS/NZS ISO9001," Kate said.

"The ERS is the only service of its kind carrying certification specifically for the emergency response activities we undertake, and this is reflected in the certification scope.

"The ERS is also a state and national Gold Award Hall of Fame inductee for Quality Management Systems awards conducted by the Australian Organisation for Quality. The award recognises quality management excellence to the ISO9001:2000 accreditation, for businesses with five staff or fewer."

Orica's Emergency Response Service team.


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Overview We aim to deliver value to our shareholders and support local economies in a responsible manner.

Our products, brands and services can be trusted for their reliability, range and quality. Each of our businesses - Orica Mining Services, Minova, Orica Chemicals and DuluxGroup - is the leader in its chosen market and enjoys a world-class reputation.

Orica’s business activities are guided by our three pillars:

• Strategy - planning for business growth; • Efficiency - productivity improvements and capital management; and • Culture - having common attitudes, behaviours and ethics.

Underpinning the three pillars of Strategy, Efficiency, and Culture are Orica’s value drivers:

• Organic growth, mergers and acquisitions; • Cost productivity (reducing the total costs incurred for each dollar gross margin of sales); • Capital productivity (reducing the amount of fixed and working capital required to produce each

dollar of sales); and • The four "Deliver the Promise" principles supporting our performance-based culture and against

which our performance is measured. These principles - Safety, Health and the Environment, Commercial Ownership, Creative Customer Solutions and Working Together - are all supported by appropriate systems and processes. Our culture empowers and motivates our people to achieve long-term, sustainable results.

At Orica, we believe that responsible corporate practices will not only benefit society, but will also enhance our financial performance.

Responsible Financial Management Comprehensive practices have been adopted to monitor:

• That capital expenditure and revenue commitments above a certain size obtain prior Board approval; • Financial exposures including the use of derivatives; • Safety, health and environment standards and management systems to achieve high standards of

performance and compliance; and • That business transactions are properly authorised and executed.

Our internal audit function has a mandate for reviewing and recommending improvements to controls, processes and procedures used by the Company across its corporate and business activities. The Company’s internal audit is managed by the Chief Risk Officer and supported by an external firm of accountants. The Company’s financial statements are subject to an annual audit by an independent, professional auditor who also reviews the Company’s half-yearly financial statements. The Board Audit and Risk Committee oversees this process on behalf of the Board. Read more in our Corporate Governance Statement via www.orica.com.


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Our Performance in 2009 Orica’s net profit after tax and individually material items was $542 million for the full year ended 30 September 2009, up $2 million on the previous year.

Net profit after tax was a record $646 million, up 13 per cent on 2008, excluding the loss on individually material items of $104 million. Sales revenue increased 13 per cent to $7.4 billion.

Orica Managing Director Graeme Liebelt said the strong result in very challenging market conditions, demonstrated the strength and resilience of Orica’s strategic position and its ongoing focus on controlling the business fundamentals of cost, cash and productivity.

"To achieve double digit growth in earnings before interest and tax (EBIT) in this environment is an excellent result. This year, perhaps more than any other, all that strategic work we have done over the past decade or more is being played out in our results. It is that, combined with a tight control of the business fundamentals - cost, cash and productivity - that is at the core of the profit growth this year.

"We have been able to respond quickly and effectively to the changing circumstances, demonstrating strong financial discipline to achieve these very good results.

"Orica’s businesses have performed strongly in 2009 and are positioned well for the future,” Mr Liebelt said.

Orica expects earnings growth to continue in 2010. In light of the shape of the economic decline experienced in 2009, we anticipate first half conditions to be more difficult than those of the previous corresponding period. Subject to the rate of global economic recovery and the extent of further adverse movements in exchange rates, we expect Group net profit after tax (pre individually material items) in 2010 to be higher than that reported in 2009.

Summary Financial Information for Orica Limited

2009 data is for the year ending 30 September 2009.

2009 (AUD

million) 2008 (AUD

million) 2007 (AUD

million)

Sales revenue 7,411.0 6,544.1 5,527.2

Gross margin 3,181.8 2,874.6 2,474.1

EBITDA (1) 1,330.2 1188.8 995.9

EBIT (1) 1,082.5 970.1 812.7

Net profit after tax pre significant items 646.1 572.3 497.8

Net profit after tax after significant items 541.8 539.6 487.7

Operating cash flow 854.9 736.9 524.3

Earnings per ordinary share (cents) (1) 174.6 170.0 149.5

Total ordinary dividends per share (cents) 97.0 94.0 89.0

Return on shareholder funds (per cent) (1)

16.0 16.9 19.2

Gearing (per cent) (2) 21.6 19.1 33.2


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(1) Pre significant items

(2) Net debt/(net debt + book equity)

Sales by geographic region in 2009 (AUD million) were as follows: Australia (3169.2), New Zealand (405.2), North America (1423.4), Latin America (1074.2), Asia (800.1), Europe (898.2), Other (88.2), Intersegment Sales ((447.5)).

Economic Value Generated and Distributed

We see our social responsibilities as being complementary to our financial performance and a critical component of both our licence to operate in all regions of the world and our ability to attract and retain the best employees.

Direct Economic Value Generated 2009 (AUD million)

Definition

a) Revenues 8,138.9 Net sales plus revenues from financial investments and sales of assets

Economic Value Distributed

b) Operating costs 5,700.2 Payments to suppliers, non-strategic investments and royalties

c) Employee wages and benefits 1,190.3 Total monetary outflows for employees

d) Payments to providers of capital 136.5 All financial payments made to the providers of capital

e) Payments to government 235.4 Gross taxes

f) Community investments 0.5 Voluntary contributions and investment of funds in the broader community (includes donations)

Economic Value Retained 876.0 Investments, equity releases

Read more in Orica's 2009 Annual Report available via www.orica.com.


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Climate Change Implications Climate change is a serious threat to society, global business and the environment.

Recognising this, our Board Safety, Health and Environment (SH&E) Committee has overall responsibility for our organisation's response to climate change.

Risks

We are exposed to a range of regulatory and physical risks from climate change. We assess our risks by ensuring a detailed understanding of our emissions profile, the current and anticipated regulatory frameworks in the countries in which we operate, and the likely impacts of those regulatory frameworks. This is then applied across our supply chain, with financial implications assessed by application of a sliding scale of likely carbon costs.

While the European Union Emissions Trading Scheme does not currently cover our facilities, the pending introduction of an Australian scheme will lead to increased costs for our Australian businesses (i.e. including materials and energy inputs, compliance and reporting and direct emissions costs). We anticipate that our activities will attract similar risks in other countries where we operate as relevant emissions trading schemes are introduced.

Many of our Australian facilities have already experienced the impact of changes in water availability. We have already implemented, or are developing measures to mitigate, the impact of water restrictions. The risk of extreme weather events has been considered in our risk management, emergency response planning and business continuity planning processes. We anticipate that extreme weather events may also impact on supply and price of input materials.

Opportunities While we are committed to reducing our impact on the climate, we are also embracing several opportunities for our Company, including:

• Understanding carbon abatement opportunities in the Clean Development Mechanism (CDM) countries where we operate;

• Significant energy savings identified through our participation in the Australian Energy Efficiency Opportunities programme;

• The opportunity to recycle water from our Groundwater Treatment Plant in Botany, New South Wales, Australia, reducing reliance on potable water;

• New technology that can provide significant abatement of our nitrous oxide emissions; and • Products and services that minimise carbon emissions from the provision of blasting services to our

global mining customers.

Engagement

Orica has been involved in regular meetings and discussions with the Australian Federal Government's Department of Climate Change (DCC) throughout 2009 to establish and define Orica's business activities that could qualify for assistance as Energy-Intensive, Trade-Exposed activities under the proposed Carbon Pollution Reduction Scheme. These discussions have been constructive and are expected to lead to agreed definitions of Orica's qualifying activities in late 2009 or early 2010.

Orica also participated in the Australian Federal Government's National Greenhouse and Energy Reporting System (NGERS) Pilot Programme led by the DCC. Participation involved receiving "test" environments from the DCC which Orica reporting experts navigated and provided feedback on. We have also been in close contact with the DCC during the formulation of Orica Australia's 2008-09 NGERS Report in order to assist in the improvement of reporting tools and requirements, most notably around the On-line System for Comprehensive Activity Reporting (OSCAR) which is the reporting mechanism for NGERS compliance.


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Planning For a Low-Carbon Economy

Shadow prices for carbon emissions and water consumption are now required in our key expenditure proposals.

We run financial models of cost/revenue outcomes of our:

• Nitrous oxide (greenhouse gas emission) abatement programmes; and • Our marketing plans to customers that incorporate carbon-related business opportunities.

Lifecycle assessments have been completed on many of our Dulux® paint and Powder and Industrial Coating products, chlorine and its associated products and ammonium nitrate.

Our Performance in 2009 We are currently undertaking an independent review of our approach to climate change to identify any further gaps and opportunities. We intend to incorporate any additional findings into our financial and operational plans over the next reporting period to ensure they are addressed appropriately.

Read our case studies about energy and greenhouse gas efficiency:

• Abatement in the Philippines; • AcraTex's Green Challenge; • Saving More Than Steam; • More Heat For Minova; • Laverton's Significant Savings; and • Energy Efficiency at KI.


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Global Reporting Initiative (GRI) Index Our 2009 Sustainability Report has been written in accordance with the 2006 Global Reporting Initiative (GRI) Sustainability Reporting Guidelines. The following table details the GRI Indicators that we believe we have met in full.

The Report has been checked by the GRI organisation to confirm it meets the requirements for the B GRI Application Level. We believe it represents a balanced and reasonable presentation of our organisation’s economic, environmental and social performance.

More information on the GRI can be found at www.globalreporting.org.

GRI Standard Disclosure GRI Indicator Reference

Strategy and Profile

CEO & MD Message 1.1 CEO Message

Key Impacts, Risks and Opportunities 1.2 Key Challenges

Organisational Profile

Name of the organization 2.1 www.orica.com

Primary brands, products and/or services 2.2 www.orica.com Company Profile on orica.com

Operational structure of the organisation, including main divisions, operating companies, subsidiaries and joint ventures

2.3 www.orica.com Company Profile on orica.com

Location of the organisation's headquarters

2.4 Head Office on orica.com Our Approach to Reporting

Number of countries where the organisation operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report

2.5 www.orica.com Worldwide Addresses on orica.com

Nature of ownership and legal form 2.6 www.orica.com Investors Introduction on orica.com

Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries)

2.7 www.orica.com

Scale of the reporting organisation including number of employees, net revenues and quantity of products or services provided

2.8 www.orica.com (refer 2009 Annual Report)

Significant changes during the reporting period regarding size, structure or ownership

2.9 www.orica.com Our Approach to Reporting

Recognition & Awards 2.10 Recognition & Awards

Report Parameters

Reporting period (e.g. fiscal/calendar year) for information provided

3.1 Our Approach to Reporting


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Date of most recent previous report (if any)

3.2 Download Reports Our Approach to Reporting

Reporting cycle (annual, biennial, etc.) 3.3 Our Approach to Reporting

Contact point for questions regarding the report or its contents

3.4 Feedback Our Approach to Reporting

Process for defining report content 3.5 Our Approach to Reporting

Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers)


State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope)


Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations


Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols


Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g. mergers/acquisitions, change of base years/periods, nature of business, measurement methods)


Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report


Table identifying the location of the Standard Disclosures in the report

3.12 GRI Index

Policy and current practice with regard to seeking external assurance for the report


Governance, Commitments and Engagement

Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight

4.1 Overview (Governance)


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Indicate whether the Chair of the highest governance body is also an executive officer

4.2 Organisational Structure

For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members


Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body


Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization's performance (including social and environmental performance)

4.5 Leadership & Accountability

Processes in place for the highest governance body to ensure conflicts of interest are avoided


Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organization's strategy on economic, environmental, and social topics


Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation

4.8 Overview (Our Approach) Code of Conduct

Procedures of the highest governance body for overseeing the organization's identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles

4.9 Organisational Structure Risk Management

Processes for evaluating the highest governance body's own performance, particularly with respect to economic, environmental, and social performance

4.10 Leadership & Accountability

Explanation of whether and how the precautionary approach or principle is addressed by the organization

4.11 Our Strategy

Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses

4.12 Our Strategy Industry Partnerships


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Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization:

• Has positions in governance bodies;

• Participates in projects or committees;

• Provides substantive funding beyond routine membership dues; or

• Views membership as strategic

4.13 Industry Partnerships

List of stakeholder groups engaged by the organization

4.14 Stakeholder Engagement

Basis for identification and selection of stakeholders with whom to engage


Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group


Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting


Economy

Disclosure on Management Approach Overview (Economy)

Economic Value Generated & Distributed EC1 Our Performance in 2009 (Economy)

Climate Change Implications EC2 Climate Change Implications

Defined Benefits Plan Obligations EC3 Labour Practices

Environment

Disclosure on Management Approach Targets & Performance (Environment)

Direct energy consumption by primary energy source

EN3 Energy & Greenhouse Gases

Indirect energy consumption by primary source


Total water withdrawal by source EN8 Water

Total direct and indirect greenhouse gas emissions by weight


Other relevant indirect greenhouse gas emissions by weight


NOx, SOx, and other significant air emissions by type and weight

EN20 Chemical Releases


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Total water discharge by quality and destination

EN21 Water

Total weight of waste by type and disposal method

EN22 Waste

Total number and volume of significant spills

EN23 Losses of Containment

Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation

EN26 Overview (Product Stewardship)

Monetary value of significant fines and total number of non-monetary sanctions for non- compliance with environmental laws and regulations

EN28 Compliance

Social

Disclosure on Management Approach Labour Practices

Human Rights

Society - Read about our Community Targets & Performance and about how we implement our Code of Conduct

Product Responsibility - Read our Product Stewardship Overview

Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements

LA5 Labour Practices

Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region

LA7 Injuries & Illnesses

Education, training, counselling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases

LA8 Occupational Health

Percentage and total number of business units analyzed for risks related to corruption

SO2 Due Diligence Code of Conduct

Actions taken in response to incidents of corruption

SO4 Code of Conduct

Public policy positions and participation in public policy development and lobbying

SO5 Code of Conduct Climate Change Implications

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations

SO8 Injuries & Illnesses Compliance


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Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures

PR1 Overview (Product Stewardship) Product Safety

Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements

PR3 Overview (Product Stewardship) Product Safety

Operations identified as having significant risk for incidents of child labour, and measures taken to contribute to the elimination of child labour

HR6 Human Rights

Operations identified as having significant risk for incidents of forced or compulsory labour, and measures to contribute to the elimination of forced or compulsory labour

HR7 Human Rights


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Download Reports 2009 Sustainability Report

Download a particular section of our 2009 Sustainability Report from www.orica.com/sustainability:

• Our Approach; • Product Stewardship; • Safety & Health; • Environment; • People & Community; • Economy; and • GRI Index.

Previous Reports

Download a copy of our 2008 and 2007 Sustainability Report from www.orica.com/sustainability. Download a copy of our 2006, 2005 and 2004 SH&E Performance Report from www.orica.com/sustainability.


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Feedback

We welcome your feedback on our 2009 Sustainability Report. You can contact us via email or phone. Email: [email protected] or [email protected] Telephone: +61 3 9665 7111

For more information on Orica's businesses, products and services, please visit www.orica.com where you will find links to each Orica website.

Thank you for taking the time to visit our 2009 Sustainability Report.

Documents

2009 Orica Sustainability Report