2021 Sustainability Report - AWS
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In this 1 Introduction report from Chairman & Managing Director 2 4 Sustainability About at a glance this report 5 6 8 Section 1: Our Section 2: About GWA brands Innovation in water sustainability 12 17 23 Section 3: Section 4: Section 5: Our people Environment Ethical and sustainable sourcing 26 28 Section 6: Section 7: Community Governance and risk management
Introduction from Chairman & Managing Director We are pleased to present GWA’s third During the year we continued to deliver innovative and sustainable products and solutions which are detailed in Sustainability Report. this report. Despite the impact of COVID-19 on our operations over the In addition, COVID-19 has driven a requirement for hygiene past year, sustainability remains fundamental to the way we and touchless solutions in bathrooms. GWA has responded conduct our business. to the increasing requirements for sustainable hygiene solutions in the built environment through the launch of Indeed, part of our response to the challenges posed by the new anti-bacterial solutions in sanitaryware. We are also pandemic was a clear focus on our sustainability agenda progressing new ranges of touchless fixture solutions for during the year. residential and commercial bathrooms. Our priority through the pandemic remains the health, Sustainable sourcing continues to be an area of focus and safety and wellbeing of our people and in continuing to we lodged our first Modern Slavery Statement in 2021, provide a safe operating environment for everyone at GWA detailing our assessment and approach to risks of modern and visitors to our sites. slavery across our workplace and supply chain. GWA has a rich pedigree in contributing to more sustainable While the COVID-19 pandemic has delayed some of our communities through our operations and in providing sustainability initiatives in FY21, we continued to make superior products and solutions for people to enjoy and progress in key areas of our sustainability agenda which sustain water, our planet’s most precious resource. are reflected in this report. Our approach to sustainability continues to be based We would like to acknowledge and thank the team at around two central objectives: GWA for their continued contribution over the past year, • Operating in a sustainable manner across our business particularly in ensuring the health and safety of everyone by managing our resources as efficiently as possible across our business. Our continued progress in our and by acting in a socially responsible manner; sustainability agenda is testament to the ongoing efforts • Providing leading edge products and systems of our people. that contribute to sustainability by making life better through sustainable water saving solutions for the built environment. This report details the initiatives we have launched across the business to support these two objectives. We continue to implement measures across our operating facilities targeted towards reducing our operational footprint in the key environmental areas of energy, water and waste reduction. Darryl D McDonough Chairman GWA is a low user of energy and water and a low emitter of carbon emissions at our controlled sites compared to other 10 September 2021 industry sectors. While we continue to implement measures to improve our environmental footprint, we remain focused on those areas of sustainability where we believe we can make the most impact. Primarily, this includes sustainable water solutions for the built environment. Urs B Meyerhans Managing Director 10 September 2021 GWA GROUP LIMITED | 2021 SUSTAINABILITY REPORT | 1
KEY HIGHLIGHTS FY21 Sustainability at a glance SUSTAINABLE WATER SOLUTIONS AND INNOVATION GWA contributes to environmental sustainability through the development of products and systems which deliver water efficient and water saving solutions in the built environment. Focus on water OUR PEOPLE efficiency with over We remain committed to providing 80% of Caroma taps 5 a safe, challenging and rewarding or 6 star WELS (Water environment for our people to Efficiency Labelling and support them reaching their Standards Scheme) rated potential, which in turn helps GWA while 95% of Caroma reach its goals. sanitaryware products are 4 star rated Focus on the health, safety and wellbeing of Intelligent and touch-free employees, contractors, IoT water management visitors to our sites solution, Caroma Smart during the COVID-19 Command® now installed pandemic in 127 sites — up from 49 in prior year Delivery of a broad suite of training and Launch of the Caroma development courses Smart Command® and programs covering Eco-Valve which compliance, products, remotely prevents, systems, functional skills stops and isolates leaks and leadership before they cause harm to a commercial building All GWA sites accredited We act in a socially to ISO45001 (global best Launch of bathroom responsible manner and practice safety standard) hygiene solution, leverage our market leading with safety policies and Caroma GermGard® position to provide a range of procedures updated in an antimicrobial formula products, practices and systems line with standard applied to products that contribute to sustainability which kills 99.9% of Gender diversity harmful bacteria and by making life better through improvement with the spread of germs and superior water saving solutions 43% female composition makes cleaning easier for the built environment. of GWA’s workforce — Selected highlights over the up from 42% in prior year past year include: 2 | GWA GROUP LIMITED | 2021 SUSTAINABILITY REPORT
GWA continues to operate with COMMUNITY sustainability GWA partners with community- ENVIRONMENTAL at our forefront based and charitable organisations by managing to support their endeavours which IMPACT is in line with our vision of making GWA has an active program our resources life better. to minimise our impact on the environment by operating in a efficiently. Partnership with sustainable manner and managing The Smith Family our resources as efficiently — supporting the as possible. educational outcomes ETHICAL AND of 60 disadvantaged The consolidation of the distribution network in SUSTAINABLE children in drought affected areas in Australia Australia/NZ from 14 to 5 SOURCING with $125,000 donated facilities has resulted in a GWA’s commitment to conducting over the past 3 years reduction in water, waste its business in an environmental and energy consumption and socially responsible manner Sponsorship of also extends to the expectations Sustainable Coastlines, Improvement in key we maintain of our manufacturing assists to remove 30,000 environmental metric — supply partners to operate to the litres of rubbish annually same exacting standards. total carbon emissions from New Zealand from GWA’s controlled beaches and waterways facilities of 1,869 tonnes Audits in FY21 of 2 CO2e, a reduction of (FY20: 2) major Support of Wigan and 11.8% on the prior year Asian supply partners Leigh Hospice, Macmillan representing a combined Cancer Support and All Australian sites have 12% of GWA supplier Fareshare in the UK installed a Caroma Smart spend with no modern Command® intelligent slavery issues identified Support of KidsCan in bathroom system for New Zealand raising monitoring and control No material breaches of $40,000 for vulnerable of water use, and ethical sourcing policies children in need with improved hygiene were identified food, clothing, and health products GWA continues its Partner First Modern Slavery Membership with the Statement released in Australian Packaging August 2020 and lodged Convenant (APC) which with the Australian guides the recyclability of Border Force our packaging options Implemented policy against slavery and trafficking in persons including progress with risk mitigation actions GWA GROUP LIMITED | 2021 SUSTAINABILITY REPORT | 3
About this report This is GWA’s third stand-alone GWA also continues to reference the Task Force on Climate-related Financial Disclosures (TCFD) and the Sustainability Report. The structure of the United Nations Sustainable Development Goals in Sustainability Report is outlined below: this report, particularly as they relate to the risks and opportunities to climate change. 1. About GWA 2. Innovation in water sustainability STAKEHOLDER ENGAGEMENT 3. Our people GWA is committed to building and maintaining strong 4. Environment relationships with our stakeholders. In preparing this report, 5. Ethical and sustainable sourcing GWA has consulted with various stakeholders to identify 6. Community key risks and opportunities relevant to our business. 7. Governance and risk management Stakeholders most relevant to our operations with whom This report includes data for the period 1 July 2020 to we continue to engage include: 30 June 2021 unless otherwise stated. • Our people The environmental data included in this report for water, • Institutional and retail shareholders waste and energy is for GWA-operated sites and does not • Governance advisers include data for sites which are not controlled or operated • Customers by GWA (e.g. manufacturing supply partners). • Manufacturing supply partners • Debt markets/lenders GWA has not formally adopted the Global Reporting • Insurers Initiative (GRI) framework for this report. However, in • Regulatory authorities preparing this report GWA continues to reference the • Unions relevant core principles of the GRI reporting system as it • Industry groups relates to our sustainability practices and performance • Others across our business.
SECTION 1 About GWA GWA is a leading innovator, designer and supplier of product solutions, services OUR BRANDS and intelligent technology focused on the delivery of sustainable water solutions for bathrooms, kitchens and laundries. We own and distribute market-leading brands and state of the art product solutions across our ranges of sanitaryware, tapware, showers, basins, baths, kitchen sinks, laundry tubs, bathroom/kitchen accessories and valves. We have an intelligent bathroom system incorporating IoT smart water management solutions. GWA operates and has sale and distribution facilities across its primary markets of Australia, New Zealand, United Kingdom and China. We are highly respected within the building industry for innovation, water efficiency and safety, product reliability and quality, technical expertise and superior service. We maintain quality and cost efficient long-term supply agreements with selected, exclusive manufacturing partners across Asia and Europe. GWA has an experienced senior management team in R&D, design, brand building, customer engagement, supply and distribution. Our Our Our cultural purpose strategy pillars Making everyday water To be the trusted and We are one team. experiences extraordinary integrated solutions We are customer focused. — today, and for tomorrow. partner in the delivery of sustainable water We care for each other. solutions for bathrooms, kitchens and laundries.
Our brands AUSTRALIA’S BATHROOM BRAND With over 78 years of innovation, Caroma believes that quality bathrooms are a balance of form, function and aesthetics. Caroma designs bring to life a guiding vision of creating sustainable-luxury with superior technology and performance. Design that enables enjoyable bathroom experiences that both complement and elevate your lifestyle, from an energising morning start to an indulgent, relaxing moment of luxury, all underpinned by sustainability. Designing for Australians and New Zealanders, from all walks of life, with different tastes and needs. We have a wide range of classic to artisanal styles, smart designs and sustainable innovations providing you with everything you need to create the sanctuary of your dreams. CREATING AMAZING WATER EXPERIENCES At Methven we are all about making water amazing. Creating amazing water experiences is what we do every day at Methven and have done since 1886. Today, Methven is world renowned for beautifully designed, award winning showers, taps and valves. Over the years we have learned how to harness the power of water to cleanse, calm, refresh and invigorate. And it’s this expertise — combined with our passion for design and innovation — that fuels our ongoing mission to create amazing water experiences, just for you. 6 | GWA GROUP LIMITED | 2021 SUSTAINABILITY REPORT
BEAUTIFULLY DESIGNED, THOUGHTFULLY ENGINEERED Never compromising on design and always focused on quality, for 70 years Dorf has pushed the boundaries of what’s possible in tapware. Influenced by artisans across Australia — who in turn are inspired by the beauty, creativity and individualism of the world around them — Dorf delivers an exceptional water experience, the Australian way. AUTHENTIC, AUSTRALIAN SPIRIT Since 1941, CLARK has worked tirelessly to make Australian kitchens and laundries more appealing and practical. CLARK, now extending into the Bathroom space, offers a variety of versatile and stylish designs to suit even the smallest of Bathroom spaces, no matter how tight the budget. The Australian in-house design team and like-minded collaborators have designed and engineered a range of products right here in Australia that are thoughtfully simple and refreshingly smart, bringing pleasure and enjoyment to customers every day. GWA GROUP LIMITED | 2021 SUSTAINABILITY REPORT | 7
SECTION 2: Innovation in water sustainability GWA has a proven long-standing history in developing innovative solutions for water. This is reflected in our continued pioneering approach in innovation and design delivering state of the art water saving solutions for the built environment. 8 | GWA GROUP LIMITED | 2021 SUSTAINABILITY REPORT
Sustainable design is part of the GWA DNA. In 2019 the Caroma Design Team was awarded the prestigious The Good Design Team of the Year from Good Design Australia. We contribute to environmental sustainability through the development of products and systems which deliver water efficient and water saving solutions for residential and CASE STUDY commercial premises. GWA DRIVES IMPROVED BATHROOM We are committed to investing in local innovation hubs in HYGIENE SOLUTIONS Australia and New Zealand and providing our teams with Protecting bathroom users from the spread of harmful the resources and technology to strongly support our bacteria and illness and ensuring cleanliness and hygiene innovation outcomes. GWA has two centres of excellence in public or shared bathroom spaces is now more including: important than ever, particularly in the context of COVID-19. • Caroma Innovation and Distribution Centre at Prestons in NSW; and As public or shared bathrooms are high traffic • GWA Experience and Distribution Centre at Avondale in spaces, they carry with them a higher risk of bacterial New Zealand. spread. It is therefore important that fixtures and systems be put in place that can help reduce risk RESEARCH TEST RIGS of bacteria transmission and drive more hygienic In support of GWA’s commitment to the creation of outcomes for users. innovative sustainable designs and systems that conserve In response, one of GWA’s key product innovations water, two state of the art research test rigs have been during the year has been the launch of Caroma developed at the Caroma Innovation and Distribution GermGard®. Centre at Prestons, NSW. The rigs will be used as working research laboratories where actual operating system Caroma GermGard® protection is a unique, proprietary conditions can be replicated for both commercial buildings antimicrobial formula that kills a minimum of 99.9% and residential applications enabling new plumbing bacteria it comes into contact with, when applied technologies and systems to be explored and validated. to products. This technology not only helps prevent The rigs comprise: the spread of bacteria but also makes cleaning even easier, making it ideal not only for households and • Commercial test rig with varying building and bathroom commercial premises, but also care applications such product layouts connected to clear drainline pipework as hospitals, aged care facilities and accessible or over four levels where the influence of new plumbing ambulant bathrooms. technologies and systems in buildings can be evaluated; and Caroma GermGard® is tested to JIS Z 2801:2010 • Domestic test rig over 60 metres in length with four Antibacterial Products — Test for Antibacterial Activity clear drainline configurations where the influence of new and Efficacy, which is recognised internationally plumbing technologies and systems in domestic long for testing the response to harmful bacterial run applications can be evaluated. Staphylococcus aureus (“Staph”) and Escherichia coli (“E Coli”). The rigs provide a unique advanced capability for GWA to Caroma GermGard® protection is now available on produce the next generation of sustainable technologies Caroma Care Support Grab Rails, Caroma Toilet Seats and systems for Australia and New Zealand. and Urbane II Pans. GermGard® antimicrobial formula is also integrated into the specially designed rubber seals on Caroma Care Support Grab Rails, making cleaning the concealed flange easier and preventing infection while providing support for people in need. GWA GROUP LIMITED | 2021 SUSTAINABILITY REPORT | 9
Our history of delivering innovative solutions 1980 1986 2004 2006 2009 WORLD’S FIRST DUAL AUSTRALIA’S FIRST METHVEN SATINJET® FIRST WELS 6 STAR FIRST WELS 5 STAR FLUSH TOILET SINGLE PIECE SINK SHOWER URINAL TOILET SUITE In 1980, Caroma During the 1980s, Clark Unlike conventional In 2006, the Caroma The Caroma Profile 5 developed the first was the first in Australia showers, the award- Cube 0.8L Smartflush® toilet was Australia’s Dual Flush toilet which to successfully launch winning Satinjet® Urinal technology was first 5 Star toilet suite saved approximately Monobloc sinks made uses unique twin-jet the first to achieve the featuring a cistern with 32,000 litres of water from a single piece of technology to create maximum 6 Star Water a dual-flush push button per household per stainless steel. optimum water droplet Efficiency Labelling and spout combination. annum due to the size and pressure, with Scheme (WELS) rating The design enables the introduction of full/half over 300,000 droplets for water conservation, same water to be used flush technology which per second. leveraging technology for two purposes, fresh allowed homeowners and to maximise water water is first used for businesses to have the efficiency by eliminating hand washing and then option of an 11L (full) or unnecessary false flows into the cistern to 5.5L (half) flush. flushing. ultimately flush the toilet. 1980s 1990s 2000s 1985 1993 2005 2009 2009 AUSTRALIA’S FIRST FIRST REDUCED CAROMA PATENTED ORBITAL® CAROMA’S INVISI SINGLE LEVER MIXER FLUSH DUAL FLUSH SMARTFLUSH® TOILET CONNECTOR SERIES II TOILET TAP TOILET 6L/3L In 2005, Caroma’s Designed to overcome In 2009, Caroma Dorf was the first tap A major step change Smartflush® technology major issues around launched the Invisi Series brand in Australia to to reduce global water won the Australian plumbing set-out II range and won the introduce a single-lever usage, Caroma launches International Design connections, extending Australian International mixer – Flickmixer. a range of 6L full/3L Award and Home set-out up to a 50mm Design Award. Still today, the name half flush toilet suites. Beautiful Product of the radius. A solution ‘Flickmixer’ is regularly Significantly reducing the Year. Caroma Smartflush® that solves common used to refer to any traditional 11L (full)/5.5L further reduces water installation issues and mixer tap. (half) flush systems consumption to only 4.5L saves time for plumbers; with matching reduced (full) or 3L (half) flush. a flexibility welcomed by flush pan technology. the plumbing community. The technology won the Australian Design Award together with the Powerhouse Museum Award. 10 | GWA GROUP LIMITED | 2021 SUSTAINABILITY REPORT
2015 2018 2019 2021 METHVEN AURAJET® CAROMA SMART CAROMA CAROMA SHOWER COMMAND® ADJUSTABLE GERMGARD® TOUCHLESS FLUSHPIPE The award-winning Caroma GermGard® Aurajet® technology INTELLIGENT protection is a unique, For behind the wall delivers a full-bodied BATHROOM SYSTEM concealed toilet suites proprietary antimicrobial spray with maximum the pans require precise formula that kills a body contact. Delivers In October 2018, Caroma minimum of 99.9% placement of the flush a highly efficient announced the next bacteria it comes into water inlet. Any variation shower with 20% more evolution in sustainable contact with, when from specified floor levels spray force and twice water management with applied to products. will require expensive the amount of water the launch of Caroma This technology not only rectification work to contact on skin than a Smart Command®, a helps prevent the spread install the toilet pan. conventional Methven comprehensive touchless of bacteria but also Caroma’s new adjustable shower. intelligent IoT solution for makes cleaning easier. flushpipe allows plumbers commercial bathrooms. to quickly realign the In 2019 Caroma Smart water inlet without Command® – won the visible damage to Good Design Award bathroom walls, saving Best in Class from Good on significant rectification Design Australia. costs and on-site time. 2010s 2020s onward... 2016 2018 2020 2021 CAROMA METHVEN VJET® CAROMA SMART METHVEN KIRI MK2 CLEANFLUSH® TOILET SHOWER COMMAND® LOW FLOW SHOWER INTELLIGENT SHOWER Caroma Cleanflush® The award-winning Methven launched Kiri uses patented rimless VJet® technology allows AND ECO-VALVE MK2 Low Flow Shower technology combining the user to activate a into the Australian Caroma Smart Command® Caroma’s unique flush seamless spray transition market in 2021. With a launched two new and flow innovation to – from a firm, invigorating WELS 5 star, 5.5L/min products as part of its improve hygiene and shower spray, to a gentle, rating and the inclusion water solutions system. cleaning effectiveness enveloping warmth and of award-winning The Intelligent Shower’s whilst still leveraging the everything in between. Satinjet® technology, this control mechanism, lowest water per flush Crafted from high grade product delivers superior shower display and ‘smart usage available. In 2016, stainless steel which is performance and comfort diversion of pre-warmed Caroma won the Best both stylish and durable. whilst saving water and water’ can reduce a in Class, Good Design energy, and supports the building’s water usage. Award for the Cleanflush® sustainability goals of The Eco-Valve can prevent technology toilet range. commercial end of major and minor leaks trip facilities. within a building and as such save water. GWA GROUP LIMITED | 2021 SUSTAINABILITY REPORT | 11
SECTION 3: Our people GWA recognises that our people are critical The Code of Conduct is reviewed annually and updated to ensure that it reflects current good practice and to to our success. promote the ethical behaviour of all employees. We are committed to providing a safe, challenging and OUR ONGOING RESPONSE TO COVID-19 rewarding environment for our people to support them As a result of the COVID-19 pandemic, GWA’s sustainability reaching their potential, which in turn helps GWA reach agenda is focused on the health, safety and wellbeing its goals. of our staff, visitors and contractors to our sites as we We continue to conduct our business with the highest continue our role as an essential supplier to the plumbing standards of personal and corporate integrity consistent and construction sectors. with our Cultural Pillars. Our focus has been on saving lives and livelihoods and we Our Code of Conduct continues to guide the behaviour aligned our motto of “stay calm, stay focused, stay safe” to of our people and demonstrates the commitment of the our Cultural Pillars. Group to ethical practices. We quickly mobilised to enable all office-based staff to Meanwhile, our Cultural Pillars outline the company values work from home. Our warehouse staff were considered and set the tone for the behaviours that are expected in essential workers and continued to work during lockdowns relation to how we operate and conduct business in order with reassurance in our relentless adherence to COVID-19 to achieve the Group’s objectives. safe practices and protocols. Our Cultural Pillars remain at the heart of everything we We established intranet sites for staff to access all do and there is an expectation that everyone behaves COVID-19 resources including safety facts, training videos, consistently with these Cultural Pillars. wellness tools and resources, and access to our employee The Code of Conduct complements the Group’s risk assistance program (EAP). The EAP program has been an management and internal control practices. The Code of important resource to assist staff and their families with Conduct is supported by the Group’s Whistle Blower Policy mental health and wellbeing during the pandemic and and system of reporting activity suspected of breaching associated lockdowns. the Code of Conduct.
Our training during COVID-19 was heavily focussed on • Safety Homecoming training is now into its fourth mental health and wellbeing and included topics such as: year and continues to be rolled out to all employees across Australia, New Zealand and for the first time • Working safely from home to the United Kingdom. The roll-out into China was • Building resilience and mental and physical wellbeing delayed due to the COVID-19 pandemic. Safety • Managing through change Homecoming is designed to develop and drive safety • R U OK? workshops behaviour engagement for staff at all levels. The intent • COVID-19 safety — mask wearing and hand washing is to acknowledge and celebrate safe demonstrated We created a Wellness Hub on the GWA intranet site where behaviour whilst engaging and addressing we shared resources from meditation techniques, healthy at-risk behaviour; eating recipes, financial tips and exercise suggestions to • Improved monitoring of driver behaviour and safety support mental and physical wellbeing. This supported a was a clear focus. Reporting on telematics devices by range of other initiatives including regular wellness check- Ctrack and insights from fleet management are readily ins and team-based activities to support connectedness. available to drivers and management. This has seen an We continue to closely monitor and adjust our business improvement in driver behaviour and a reduction in operations as required and in accordance with the latest road accidents; Government and regulatory health and safety advice. • Mental health ambassadors were identified and appointed across the business and trained in mental WORKPLACE HEALTH & SAFETY health first aid as part of our continuing focus on the wellbeing of staff including metal health issues GWA’s focus remains on ensuring that we provide a safe associated with the COVID-19 pandemic. R U OK? workplace for our employees, contractors, visitors and training was also rolled out throughout the organisation; customers, while driving a positive safety culture and • The New Zealand Methven factory was successfully actively reducing and mitigating risk. scaled down without injury or serious incident. The “We care for each other” is a Cultural Pillar of the high-risk work of dismantling and moving the machinery organisation that drives our objective to ensure everyone was well planned and executed allowing the project to is safe, every day. The GWA management structure for be conducted in a safe and compliant manner; Workplace Health and Safety (WHS) continues to be • The New Zealand Avondale distribution centre was centrally led by the Head of Risk, Safety and Compliance. temporarily relocated to Highbrook while work was This executive addresses the Board and Executive conducted to convert the previous factory to a larger Leadership Team (ELT) on a regular basis to discuss all distribution centre as part of integrating the Caroma and matters relating to WHS. This provides an opportunity for Methven businesses. The entire Highbrook distribution updates, scope discussions and to monitor progress of the centre has now been moved to Avondale. The project WHS strategy and performance. was completed with safety as the highest priority and The ELT members regularly review key risk areas aligned completed with zero injuries or serious incidents; and with our business risk profile. These include chain of • The Methven Heshan, China factory was sold during responsibility, health and wellbeing, environment FY21 which lowers the Group’s overall WHS risk. and waste. During FY21, GWA continued to make substantial progress on implementing our safety strategy. This strategy focuses CASE STUDY on leadership and behavioural aspects of safety together ZERO MEDICALLY TREATED INJURIES with identifying and mitigating physical risks in our IN FY21 operations. The increased focus on cultural and behavioural For the second successive year, GWA has maintained a drivers has resulted in an improvement in most of the MTIFR (medically treated injury frequency rate) at zero. Group’s lead and lag indicators of safety performance. GWA has steadily improved its safety performance over the This result has been achieved from a continued focus last 12 years, but has seen an increase in lost time injuries on safety culture and behavioural change at all sites during the year due to manual handling incidents. We have across the GWA network, including Australia, New implemented customised training strategies to address the Zealand, China and the United Kingdom. root cause of the injuries. At each site we are focusing on preventative measures, Key achievements during the year included: including hazard reduction and near miss reporting to drive cultural change in the way we interact at our • GWA meets the requirements to ensure the health sites which has led to this result for the second year in and safety of its workers under WHS legislation a row. and continued the external auditing process for WHS compliance at its sites. During FY21, the Group The roll-out of Safety Homecoming training is commenced the transition from Australian safety continuing to deliver a major improvement in safety standard AS4801 accreditation to the new international culture across the business. safety standard ISO45001, and all GWA sites were The implementation of site specific activities such accredited to this new standard; as daily tool-box meetings, site audits and root-cause • GWA completed the review and update of all safety analysis of incidents is assisting in driving the ongoing policies, procedures and tools to bring these in line with behavioural change to deliver this improved result. ISO45001 international safety standards. This has been a significant task to standardise operating procedures to deliver a consistent and measurable approach to safety across the Group; GWA GROUP LIMITED | 2021 SUSTAINABILITY REPORT | 13
SAFETY PERFORMANCE INDICATORS Following the improvement trend in the TIFR since FY18 and a significant reduction in FY20, GWA experienced GWA measures a range of balanced safety performance an increase in the rate from 0.9 in FY20 to 4.3 in FY21, indicators. We continuously identify, implement and primarily as a result of an increase in manual handling monitor our activities to ensure we eliminate unsafe acts injuries. We are renewing our focus on behaviours and have and practices. implemented customised training strategies, revised our These activities, identified as proactive ‘LEAD’ indicators, standard operating procedures and trained staff to address include the number of safety interactions conducted, the root causes to reduce manual handling injuries. hazards reported, site inspections and actions closed. GWA GWA recorded a Medically Treated Injury Frequency Rate also measures key ‘LAG’ indicators that measure lost time (MTIFR) of 0.0 for FY21. and medically treated injuries, hours lost due to injury and total injuries which represent a combination of lost time GWA is committed to maintaining the positive safety and medically treated injuries. culture in the Group and our ongoing proactive approach to identifying and mitigating safety risks. Workplace safety LEAD INDICATORS remains an ongoing focus for the Board and the executives During FY21, GWA’s safety performance measured by Lead of the Group. indicators is detailed below: DEVELOPING A HIGH PERFORMANCE Metric Result in FY21 CULTURE Safety Interactions Conducted 100% GWA fosters a high-performance culture through programs Recorded Safety Events 418 and practices that encourage our people to perform at Hazards Closed 100% their best while upholding our Cultural Pillars. Actions Closed 100% Fundamental to this philosophy is our belief that every person in the business is a leader and we expect everyone Site Inspection Completion 100% to act as one team with a common purpose aligned with LAG INDICATORS our Cultural Pillar, “We are on one team”. Since 2018, GWA has partnered with AON (now Kincentric) for our Making During FY21, GWA’s safety performance measured by Lag Life Better Employee Survey. For our most recent survey indicators is detailed below: in FY20, we had a 90% participation rate and our Group Metric Result in FY21 engagement score was 61% which is above the median for companies in Australia and New Zealand. LTI FYTD 5.0 To emphasise our belief that everyone is a leader, LTIFR Rolling 4.3 employees that completed the survey received their MTI FYTD Nil own, individual engagement report which showed their MTIFR Rolling Nil personal engagement score and actions to improve their own engagement. TI FYTD 5.0 TIFR Rolling 4.3 To reinforce a high-performance culture, all non-EBA employees have been included in an incentive bonus plan. Payment is based on business results, achieving personal Key Performance Indicators (KPIs) and ensuring behaviour GWA TOTAL INJURY FREQUENCY RATE (TIFR) is aligned to our Cultural Pillars. This has resulted in a 25 strengthened performance management process to ensure alignment to the Group’s overall strategy. 20 15 10 5 0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 25 20 DIVERSITY AND INCLUSION 15 (COULD BE STOCK) 10 5 0 9 0 1 2 4 5 6 7 8 9 0 1 13 /0 /1 /1 /1 /1 /1 /1 /1 /1 /1 /2 /2 2/ 08 09 10 11 13 14 15 16 17 18 19 20 01 20 20 20 20 20 20 20 20 20 20 20 20 20 14 | GWA GROUP LIMITED | 2021 SUSTAINABILITY REPORT
DIVERSITY AND INCLUSION The result of this review identified any variations in pay across similar roles were attributed to non-gender related GWA recognises and celebrates the value and contribution variables. Gender pay equity reviews are built into the each individual brings to the workplace and appreciates annual remuneration review process and will remain an the value of attracting and retaining employees ongoing focus for GWA. from different backgrounds. GWA is committed to creating a working environment that is fair, flexible and The measurable objectives to increase gender diversity supportive of all our staff and that promotes personal are assessed annually and are reported in the Corporate and professional growth. Governance Statement which is available on the Group’s website at www.gwagroup.com.au under Corporate GWA embraces and celebrates diversity in the Governance. The objectives and supporting actions include: workforce which contributes to business success and benefits employees, customers, consumers and 1. INCREASE THE PERCENTAGE OF FEMALES shareholders. Leveraging diversity in the workplace EMPLOYED BY GWA WITH A MINIMUM 30% TARGET fosters engagement, enhances creativity, improves FOR BOARD COMPOSITION decision making and increases productivity to deliver • Ensure the recruitment process and practices continue a strong competitive advantage. to comply with equal opportunity principles. We remain committed to promoting diversity and inclusion Women comprise 43% of GWA’s overall workforce for the through the implementation of policies and initiatives reporting period. For the prior year, female composition to achieve a diverse workforce. The Group’s Diversity of the global workforce was 42%. The Group’s focus and Inclusion Policy is available on the Group’s on diversity and inclusion has been recognised by website at www.gwagroup.com.au under Corporate employees and is demonstrated by increased scores in Governance Policies. our latest engagement survey which was two percentage We understand that each individual is unique and points above the Australian norm. The current female we recognise individual differences. These differences representation on the Board is close to the minimum 30% can include skills, experience, thought, gender, target as outlined in the table below. age, disability, ethnicity, cultural or socio-economic In June 2021, the Group lodged its 2021 Australia background, religion, sexual orientation, political or Workplace Gender Equality Report with the Workplace ideological beliefs as well as other dimensions such Gender Equality Agency (WGEA) in accordance with the as lifestyle and family responsibilities. Australian Workplace Gender Equality Act 2012 (Act). The Group notified its employees and employee organisations of the lodgement of the report and At GWA we are committed to: advised how it may be accessed. The Group also allowed • a workplace which is free from discrimination, employees and employee organisations to make comments harassment, bullying, victimisation and vilification; on the report. The report is available on the Group’s • treating employees fairly and with respect; website at www.gwagroup.com.au under Gender Equality • a workplace culture that is inclusive and embraces Reporting. The Group received notification from the WGEA individual differences; that it is compliant with the Act. • equal employment opportunities based on ability, The following table is a summary of GWA’s Australian performance and potential; workplace profile at 31 March 2021 as reported to the • awareness in all staff of their rights and WGEA: responsibilities with regards to fairness, equity and respect for all aspects of diversity; Title % Female • flexible work practices and policies to support Board of Directors 29%1 employees and their changing needs; • attraction, retention and development of a diverse Key Management Personnel 0%2 range of talented people; Senior Managers/Other Managers 32% • equitable frameworks and policies, processes and Total Management 37% practices that limit potential unconscious bias. Total Non-Management 45% Overall Total 43% In 2012, the Board established a number of measurable objectives to promote and encourage increased gender Note: diversity within the workforce as outlined below. The 1 33% of GWA’s non-executive directors are female. Board will continue to work on increasing the percentage 2 KMP for WGEA reporting includes the Acting CEO, Chief Financial Officer and Company Secretary roles with the other non-KMP of females employed by GWA including committing to a executives included in Management. minimum 30% target for Board composition in line with the Principles and Recommendations of the ASX Corporate Governance Council having regard to business needs, the best available candidates and all facets of diversity in addition to gender. GWA has made significant progress in recent years to address gender pay equity anomalies and have addressed these as part of the annual salary review process. In February 2021, a gender pay equity review was performed in the Australian business. GWA GROUP LIMITED | 2021 SUSTAINABILITY REPORT | 15
2. PROVIDE AND PROMOTE FLEXIBLE WORK INVESTING IN OUR PEOPLE PRACTICES TO ATTRACT AND RETAIN DIVERSE GWA remains committed to investing in its people and TALENT developing leadership skills to create the leaders for • Continue to promote awareness of current flexible the future. Our leadership programs are designed to work practices to existing employees and potential provide our people with the knowledge, skills and support candidates; to enable them to perform at their best. In FY21 we • Investigate and implement any additional flexible introduced the target for employees to have at least 20 work arrangements appropriate to the needs of hours of training during the year. employees to support personal circumstances. Across the business, we had 14,194 training courses Across GWA we continue to review employment policies completed with 169 online courses on offer spanning and practices to ensure that, among other things, flexibility compliance, technical and soft skills development. is offered to attract and retain talent. GWA fully supports We maintain a range of leadership and development and encourages flexible working arrangements and many programs that are aligned to our purpose of making life employees take advantage of different ways to get the better with superior solutions for water and the Good job done including working from home or working to Great Journey which was communicated across the flexible hours. organisation in August 2018. The existing wide use of flexible work practices enabled GWA continues to operate development programs at two the Group to quickly respond to the COVID-19 pandemic levels: with all office-based staff having the ability to work from • Group-wide programs for all employees; home. GWA also provided additional tools and training • Business-specific training programs to develop during the pandemic to ensure that staff were supported particular skills relevant to specific areas of the business to work remotely as part of our ongoing focus on their or key target groups across the business such as safety and wellbeing. In the latest employee survey, 77% of frontline sales leaders. employees felt that they “have the flexibility to modify their work schedule to address personal situations” which is two GROUP-WIDE PROGRAMS percentage points above the Australian average. Great Beginnings: Onboarding and induction blended In addition to a number of employee benefit programs, learning program including information on the business a purchased leave plan is also in place which allows history, strategy, customers, innovation, sales and employees to “purchase” additional leave of up to four marketing as well as a Waterworks teambuilding activity weeks per year via salary sacrifice. aligned to our purpose (building a water purification unit 3. SUCCESSION PLANNING AND HIGH POTENTIAL for donation to people in need). EMPLOYEE DEVELOPMENT H20: short, online courses which help people with skills on GWA ensures a diverse group of high potential employees How 2 Operate (excel, Salesforce, Microsoft teams, etc.). are identified as part of the Group’s succession planning Good 2 Know: Lunch and learn on a variety of topics such process and actively developed for career progression. The as cyber security, career development, product training. Group’s recruitment and development strategy continues Great Conversations: 1-2 hour sessions with internal and to focus on attracting, developing and retaining a diverse external thought leaders. A number of these sessions have pool of talent to deliver our growth strategy. been targeted for female talent. GWA has regular talent reviews to strengthen our iLead: Management training programs with training for succession plans. These talent discussions include career 4 levels of leadership (Leading Yourself, Leading Others, development actions which are regularly reviewed. Leading a Department/Function, Leading the Business). Managers are aware of their responsibility to develop talent In FY21 we launched a number of new leadership courses and in the last survey, 81% of Managers responded including Situational Leadership II and Personal Excellence. “I am accountable for developing high performers” which is In total 245 employees attended leadership programs a strong score for Australian organisations. during the year. Learning Festival: An annual multi-week event focused on supporting a learning culture. The FY21 Learning Festival held in November 2020 featured 20 live events, 32 on demand courses with over 1,000 learning seats. BUSINESS-SPECIFIC TRAINING PROGRAMS Supply Chain/Operations: Warehouse management system training. Sales and Customer Service: In FY21 we launched our Sales Academy with first phase featuring product training across Caroma Smart Command®, sanitaryware and tapware products. GWA’s leadership and development programs are supported by our Learning Management System, iLearn. 16 | GWA GROUP LIMITED | 2021 SUSTAINABILITY REPORT
SECTION 4: Environment CLIMATE RISKS AND OPPORTUNITIES UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS GWA acknowledges climate-related risks and The United Nations Sustainable Development Goals opportunities within its business operations. The address global challenges including those related to manufacture of bathroom and kitchen products consume poverty, inequality, climate, environmental degradation, resources and energy and therefore GWA is indirectly prosperity, peace and justice. exposed to carbon emission regulations which may impact GWA continues to reference the UN 2030 Agenda input pricing in the manufacturing process. for Sustainable Development and Sustainable Another effect of climate change relates to scarcity of Development Goals. While in a broad sense, each of the water. The World Economic Forum (WEF) 2020 Global 17 goals are important to our business, GWA references Risk Report classified water scarcity as one of the five 3 goals specifically: highest risks in terms of impact. This represents an opportunity for GWA regarding the development of water- saving products and technology. GOAL 1: ENSURE ACCESS TO CLEAN GWA is a low emitter of greenhouse gas emissions, WATER AND SANITATION FOR however, we appreciate the ongoing need to reduce ALL our greenhouse gas emissions and encourage our GWA maintains a strong pedigree and history manufacturing supply chain partners to do the same. We in developing innovative solutions for water are committed to further improving our disclosures in with Caroma developing the world’s first dual flush toilet reference to the key recommendations of the TCFD. in 1980 with the introduction of full flush/half flush water The TCFD framework for disclosure of climate change risks saving technology. This is reflected in our continued and opportunities includes two main categories of climate- innovative approach in new product development and related risks including: commercialisation in delivering water saving solutions for our customers. • risks related to transition; and • risks related to physical impacts. We contribute to environmental sustainability through the development of products and systems which deliver We continue to assess transition risks including policy water-efficient and water-saving solutions in the built and legal risks; technological risks and market or environment. This is relevant for both residential and reputational risks which may be applicable to our business. commercial premises. For example, Caroma’s Dual and The physical risks emanating from climate change include Smart flush technologies continue to save on average risks to our assets and interruption of our business 32,000 litres per year for each toilet in which they are from increased activity in weather-related perils such as used — the equivalent of one Sydney harbour saved Cyclones, Earthquakes, Floods and Bushfires. each and every year. We assess these risks as part of our internal due diligence procedures in establishing new company sites and engaging new suppliers to the business to ensure risks are properly assessed and managed. In addition, our property and business interruption insurer assess these risks as part of their annual review of our controlled locations and those of our key suppliers. We conduct periodic detailed site risk assessments and reviews of risk mitigations and contingency plans as part of our internal audit program and utilising the expertise of external advisers as required. GWA ensures that perils are adequately insured with reputable insurers, robust limits and breadth of cover based on advice from our insurance broker. GWA GROUP LIMITED | 2021 SUSTAINABILITY REPORT | 17
CASE STUDY CAROMA SMART COMMAND® SAVING WATER AT THE GLASS HOUSE OFFICE BUILDING MACQUARIE PARK NSW Caroma Smart Command® is an ecosystem of intelligent products that enable building managers to monitor and control water use in near real-time and make smarter decisions that reduce maintenance costs, while improving hygiene and up-time. An innovative range of intelligent tapware, showers, urinals and Invisi toilets have been developed to seamlessly integrate with Caroma’s Smart Command® technology. CASE STUDY These intuitive products incorporate the latest in touch- GWA DELIVERING HIGH WELS-RATED free technology for optimal hygiene for a more efficient SANITARYWARE AND TAPWARE bathroom design which reduces cleaning Design and construction professionals play a critical and maintenance. role in Australia’s future by implementing sustainable Caroma Smart Command® enabled bathrooms allow water management in building design. Showers, taps and building managers to precisely track every detail and toilets are the biggest consumers of water in the average collect data in real time, from water usage per appliance, Australian home. to the number of activations. This data can be accessed The Water Efficiency Labelling Standards (WELS) is locally from a mobile app or integrated to an existing a mandatory, national and federal government-run Building Management System (BMS) or cloud platforms. water efficiency labelling scheme. WELS requires the At one facility, the Glasshouse office building in registration and labelling of showers, taps, toilets, urinals, Macquarie Park NSW, there are a total of 449 Caroma clothes washers, dishwashers and flow controllers. This Smart Command® fixtures and fittings installed across the scheme aims to encourage wise water usage by informing building. The installation of Caroma Smart Command® customers about the water efficiency of a product at the fixtures was able to demonstrate a 22% bathroom water point of sale. WELS provides transparent water efficiency saving (237,800L) which contributed to 6% of the overall information and star ratings for regulated products. building water saving. An inefficient showerhead can use approximately The savings were identified from: 15L-25L of water per minute. For a standard four-person household, replacing a showerhead that flows at 15L/ • leak detection 48% min with a WELS 3-star showerhead at 9L/min saves • optimised smart fixtures 36% approximately 70kL each year. In the same scenario, a • behavioural changes 16% WELS 4-star shower at 6L/min will save approximately Caroma Smart Command® also results in improved user 105kL each year. experience. As a result of near real-time data, Caroma Flow rates for taps are included on water rating labels — a Smart Command® ensures bathrooms operate to their high WELS star rating equates to less water consumption. maximum potential. The building’s tenants can enjoy The best-performing water efficient taps have a WELS a touchless experience that provides a new level of 6-star rating, with a flow rate of 4L per minute or less. cleanliness and hygiene. GWA continues to focus on upgrading its sanitaryware This resulted in a Hygiene Index of 1.6. This score and tapware products to higher WELS ratings to target is the combination of hand washing duration and greater water efficiency and enable residential and the relationship between sanitaryware and tapware households to use less water. activations. A score of 1.0 is considered ‘good’. It also resulted in a 7% improvement in hand washing duration Over 80% of Caroma taps are 5 or 6 star WELS rated by deploying behavioural change suggestions within while 95% of Caroma sanitaryware products are 4 star the bathrooms. WELS rated. As of 30 June 2021, Caroma Smart Command® has been installed in 127 sites across Australia and New Zealand, with a solid bank of additional projects in the pipeline for FY22. 40 sites have been migrated to the cloud platform. 18 | GWA GROUP LIMITED | 2021 SUSTAINABILITY REPORT
GOAL 2: BUILD RESILIENT GOAL 3: MAKE CITIES INCLUSIVE, SAFE, INFRASTRUCTURE, PROMOTE RESILIENT AND SUSTAINABLE SUSTAINABLE INDUSTRIALISATION GWA’s rich heritage in designing and AND FOSTER INNOVATION delivering water saving and efficient products GWA is committed to designing and and systems continue to assist cities and developing new products and systems in communities achieve sustainability goals, Australia and New Zealand for our customers, particularly in the area of water efficiency. and with quality and performance that exceed stringent local standards and contribute to water CASE STUDY efficiency in the built environment. CAROMA SMART COMMAND® ECO-VALVE GWA has two centres of excellence; our Caroma The Caroma Smart Command® Eco-Valve remotely prevents, Innovation and Distribution centre at Prestons, NSW which stops and isolates leaks before they cause harm to a includes a state of the art 2,000 square metre innovation commercial building. centre and our GWA experience and distribution centre at The Eco-Valve will isolate the flow of water when Avondale, New Zealand. Both facilities are purpose built it detects one or more of the following configurable research and development sites which are committed conditions: to innovation and design excellence. They specialise in water efficient products and systems that enhance the • Exceeds continuous water volume — where a pre- bathroom, kitchen and laundry environments. GWA’s configured volume of water is exceeded e.g. a tap not design and innovation centres are at the forefront of turning off. global innovation, designing everything from the world’s • Exceeds maximum flow rate — where the valve first two button dual flush and reduced flushing systems identifies a sudden excess of water flow e.g. burst pipe. to patented shower experiences. • Exceeds continuous flow time — where there is constant water flowing through the valve for an CASE STUDY extended period e.g. toilet outlet valve running on. • Self-learning micro leakage — monitors pipeline static METHVEN KIRI MK2 LOW FLOW SHOWER pressure reduction over time to learn usual patterns During the year, Methven launched Kiri MK2 Low Flow and identify outliers. Shower into the Australian market. With a WELS 5 star, CAROMA SMART COMMAND® ECO-VALVE 5.5L/min rating and the inclusion of award-winning Satinjet® technology, this product delivers superior performance and IN PRACTICE comfort whilst saving water and energy. In a Sydney commercial office tower, the Caroma Smart Command® eco-system was deployed with two Eco- With Satinjet® technology, twin-jets collide to Valves protecting both the male and female amenities. create optimum droplet size and pressure, delivering At approximately 3:30pm the pipe downstream from the thousands of tiny droplets per second. Eco-Valve protecting the female amenities burst, resulting Kiri MK2 Low Flow offers significant water and financial in an excess of water leaking, which if left unchecked savings opportunity across both commercial and could quickly cause a great deal of damage to the residential premises. building and significant water wastage. In commercial end of trip applications, in the place of a The Eco-Valve detected the abnormality when the pre-set typical 7.5L/min shower, almost 1/3 less water could be limit for water volume was exceeded under the first leak used per year with a Low Flow (5.5L/min), resulting in a detection protocol, prompting the Eco-Valve to shut and 13% potential water saving.* instantly notifying the on-site maintenance plumber of In a residential setting, the Kiri MK2 Low Flow can the leak who was able to begin works to rectify the issue potentially save 11,680 litres of water annually.** when the water shut-off. * S ource: Caroma Smart Command Sustainability Case Study | In addition to stopping the leak, the Eco-Valve sent alerts Sustainability case study Report — Norman Disney & Young — to the Facilities Manager and Caroma Smart Command® Aug 2019 team via the cloud to inform of the events which lead to ** Based on the assumption that one single person showers for 8 minutes per day Source: National Water Usage Report –Australian the Eco-Valve closure. Bureau of Statistics — 2017-2019 GWA GROUP LIMITED | 2021 SUSTAINABILITY REPORT | 19
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