2019 Report · 2020. 5. 6. · Australia’s largest corporations significantly increased their...

1

The GivingLarge Report

summarises groundbreaking

research on the considerable

contributions currently being

made to the community by some

of Australia's top companies

The research conducted

annually by Strive Philanthropy

analyses the publicly available

reports of top companies,

compiling their community

investment statistics to develop

a unique data set aimed to draw

attention to corporate Australia’s

efforts in this area

2019 Report .

2

ForewordAssoc. Prof. Ben Neville,

Director, Leadership for Social Impact

The Centre for Workplace Leadership

Corporate philanthropy is a vital contribution to a cohesive and thriving society. The Centre

for Workplace Leadership at the University of Melbourne congratulates Strive Philanthropy

on another GivingLarge Report. Their analysis and dissemination of this data is an important

input, encouraging corporations to invest in the communities in which they rely, and helping

communities appreciate their societal contribution.

The problems that Australia and the world face are complex and intractable. Corporations

need to be part of the solution. While corporate social responsibility and shared value

initiatives are part of the mix, corporate philanthropy retains an important role in helping

shepherd and catalyse innovative solutions to complex problems. As the report findings show,

Australia’s largest corporations significantly increased their giving, yet this was borne mostly

by a small few, and Australian corporations still fall considerably short of global giving

benchmarks.

Nevertheless, the companies listed in this report need to be congratulated for their

contributions to Australian society. There is, of course, a business case for giving.

Enlightened businesses understand that their employees, customers and other stakeholders

evaluate their philanthropic contributions, with resulting impact on the bottom line. But,

more importantly, corporate giving supports social innovators with innovative solutions,

directly impacting those struggling in society, providing an important role in solving society’s

most difficult problems.

This report helps to bring to light these positive contributions, encouraging corporate giving

and community investment.

Giving Large Report 2019

Strive Philanthropy

Author

Jarrod Miles

For more information, please contact

[email protected]

+61 3 5968 2773

www.strivephilanthropy.com.au

www.givinglarge.com.au

mailto:[email protected]

http://www.strivephilanthropy.com.au/

http://www.givinglarge.com.au/

4

Table of Contents

5 8 12

15 32 37

Executive Summary Scope & Methodology Key Findings

Notable Findings

& Reporting AnalysisConclusions &

Recommendations

Sector Overviews

& 2019 Infographic

In what was a rollercoaster year for the corporate sector in 2018, the latest GivingLarge report

provides a timely opportunity to look through a different lens at corporate impact and in this case

the significant community contributions our top companies made during this time. As the Royal

Commission conducted countless hearings, interviews and audits into the finance sector, our

results suggest that our top companies took this opportunity to reach further into their deep

pockets to give greater amounts to the community. A remarkable $945 Million contribution from

our top companies in 2018 representing an 11% increase ($90M) from 2017 numbers. Was this a

knee jerk reaction to the scrutiny being placed on the corporate sector during this time, or a natural

progression resulting from stronger profits in 2017? Either way, this significant increase for our

community was not to be sneezed at and an important reminder that despite their shortcomings,

our often perceived tall poppy corporations do need some sunlight to grow their positive impacts.

The GivingLarge Report summarises important research on the considerable contributions

currently being made to the community by some of Australia's top companies.

This annual research project analyses the publicly available information of our top companies,

compiling their community investment statistics to develop a unique data set, aimed at drawing

attention to corporate Australia's efforts in this area. The findings of this research should:

• Inform & improve future behaviour in corporate giving,

• Encourage further community contributions & transparency,

• Stimulate best practice sharing,

• Create an environment of healthy philanthropic competition.

The GivingLarge total figure was derived from the publicly available reports of 50 top companies

who clearly disclosed a community investment figure in 2018. Reported figures met the defined

criteria stated in our methodology and aligned with global standards. Companies contributed a

mean $19 Million across the whole group at a 0.62% contribution of pre-tax profit^ and a 0.58%

contribution of earnings (EBITDA*)^ on a rolling 3 year basis.

TOTAL CONTRIBUTION (2018)

$945 MillionContributed to the Community in 2018 (top 50 companies)

Executive Summary

* Earnings before interest, tax, depreciation, amortisation^ throughout this report we will define profit as pre-tax profit and earnings as EBITDA

5

$945 MillionContributed to the Community in 2018

6

Top 50 companies who adequately reported their community contribution

Mean Contribution

$19MMedian Contribution

$4.0M

Top 50 Companies

% of Pre-Tax Profit

0.62%% of Earnings (EBITDA)

0.58%

Funds Distributed

to these focus areas

Roll 3yr Roll 3yr

7

Executive Summary

Beneficiaries varied widely but funds primarily went towards health & well-being,

education, diversity and inclusion and the environment.

Stand out insights came from notable sources including the finance sector where the

big four banks alone contributed an extra 28 per cent compared to 2017. The largest

increases came from CBA, NAB and ANZ, who collectively lifted their giving by

more than $39 million. These extra funds were funnelled to community beneficaires

in areas such as education, health/medical research and financial literacy and

inclusion.

Rio Tinto and BHP contributed the largest total contributions in our overall cohort.

This also coincided with the Materials sector lifting their overall giving, likely as a

result of a return to healthier earnings in recent years for this group of companies.

Interestingly, but perhaps not surprisingly this trend was seen across our whole dataset

with company earnings or previous year growth often predicting increased community

contributions.

Perhaps that most notable insight from this research is corporate Australia’s under

performance in percentage contribution of earnings or profit. The average 0.6%

batting well below global averages and the commonly encouraged benchmark of 1%.

This signifies a remarkable opportunity for this group of companies with a potential

to shift an additional $600M of funds to the community if these companies can all

commit to this reasonable target.

Scope & Methodology

Overall Scope

The GivingLarge report summarises the

findings of important research into the

levels of corporate community investment

in Australia. The primary results highlight

our most generous givers by sector and

review some key corporate giving

parameters such as:

• Contribution as a % of Profit or

Earnings (rolling 3 year average)

• Total community contribution as a

dollar value

• Standardisation, assurance and

itemisation of reporting

• Primary causes selected by each

company

This year we have expanded our research

to include ASX100 corporations

(previously just ASX50) and provided an

additional analysis of high revenue

private companies. We also tightened our

inclusion criteria, with eligible

community contributions now needing to

either adhere to global standards, provide

third party assurance or clearly itemise

their giving.

The GivingLarge research and associated

report adopted aligned elements of the

LBG framework and the GRI standards^

on corporate community investment. Our

analysis not only reviewed which

companies are adhering to these

important standards but also sought

alignment from those companies who did

not formally disclose their adherence.

ASX100

Publicly Reported Community Contributions

63%Disclosed Clear Figures

(ASX100)

LBG defines corporate community

investment as businesses’ voluntary

engagement with charitable

organizations or activities that extends

beyond their core business activities.^

GRI defines community investment as

voluntary donations plus investment of

funds in the broader community where

the target beneficiaries are external to

the organization.^

“

“”

”8

w/ Sub-Analysis of

Private Companies

^GRI G4 implementation manual, LBG framework

What’s included?• Cash

• Time

• In-kind contributions of product,

property or services (incl. Pro Bono)

• Management costs: program costs,

staff salaries, benefits/overhead and

research and communications.

Third Party Assurance

Independent assessment of an organization’s reported community investment is imperative to

ensure accurate and reliable claims about a company’s generosity and community impact. An

important part of our analysis was to identify which companies engaged third party assurance on

the community contributions. Third party assurers act to ensure that the preparation and

presentation of a company’s sustainability or annual report is in accordance with the agreed upon

standard or company definition.

Let’s Talk Percentage

Reporting absolute dollar contribution is rarely useful when it comes to community giving.

Companies differ in size and profit margins meaning that companies with higher profits are able

to contribute more total dollars to the community in which they operate. Converting dollar

values into relative percentages of company profits is one way to enable comparisons and

ensures a more meaningful review of generosity.

In line with global methodology, profit used in our research is pre-tax and earnings are before

interest, tax, depreciation & amortisation (EBITDA). In this report, a company’s community

contribution as a % of earnings or profit is published as a rolling 3 year average.

The GivingLarge research and associated report adopted

aligned elements of the LBG framework and the GRI

standards on corporate community investment.

What’s not included?• Leverage*

• Foregone Revenue^

• Political Donations

• Commercial Sponsorships

(e.g. professional sporting team).

“”

* The measure of any additional resources contributed to a community organization or activity that come from sources other than the company. ^ The revenue foregone for community benefit on fees, products & services provided for free or discounted

Scope & Methodology

Comparing Apples with Apples

As different companies may publish their

financials in different ways, it is important

to ensure that the same things are being

compared across companies. For example,

mining companies will report earnings

differently to banks based on industry

specific factors. For our top corporations

this means grouping companies by how they

declare their profits or earnings before tax.

Due to the volatility of profits in some

sectors and lack of disclosure of earnings in

other sectors, our analysis is mixed. This

table shows how each sector was grouped

for the overall analysis.

Analysing companies by sector (ASX

defined) also acts to ensure an aligned

review of company contribution,

eliminating cross-sector variables, reporting

discrepancies and allowing companies to

learn from their peers. It follows that due to

these aforementioned variables cross sector

comparisons are less meaningful.

Sector Published as % of Profit

(pre-tax)

Publishedas % of

Earnings(EBITDA)

Finance

Materials

Telecoms

Industrial

Consumer

Health Care

Info Tech

Real Estate

Energy

Utilities

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Scope & Methodology

Evolving Methodology & 2019 Additional Analysis

Refining our methodology this year allows us to not only increase our cohort but also increase our

vigilance on quality reporting. The changes ensure the collation of a meaningful list of companies that

are not only generously giving to the community but are also adequately reporting their contributions. To

further encourage increases in giving and disclosure and provide further valuable insights we have also

provided 3 extra pieces of analysis.

1. Each sector overview includes a list of “other companies” that disclosed a community investment

figure in 2018 but did not fully meet the reporting criteria.

2. An ASX50 analysis to allow for comparison to our 2018 report.

3. A sub-analysis of high revenue private companies.

“Analysing companies by sector

acts to ensure an aligned review

of company contribution”

Limitations & Research Gaps

The limitations of this research are those characteristics of the design or methodology that may impact

or influence the interpretation of the findings. For the most part these limitations represent an

opportunity for further research into this important area.

Prior Research : While there is growing interest in corporate philanthropy in our society, very little

literature currently exists analysing top corporate community investment in Australia. While our

findings are significant and well founded, further consensus based research examining the

contribution of top companies and the broader business community is needed

Research Sample & Size: Our analysis was restricted to the ASX100 and a small group of high

revenue private companies. These companies are indeed unique and for the most part don’t represent

the broader Australian business community. While our group of 100+ companies represent a

significant sample size, further studies investigating a larger pool of businesses would be highly

beneficial.

Collecting the data: Public reports may be missing important data, may provide inaccurate data or may

be misinterpreted in our research. Our analysis of third party assurance and verification of reporting

standards alongside our communication with select companies helps to confirm company disclosures,

however no other measures were taken to confirm the accuracy of the data . Future studies and efforts

to standardise reporting and seek assurance will further reduce these limitations and strengthen our

ability to benchmark and improve performance.

Measures of Community Investment: Our methodology aligned with global consensus, utilising

frameworks such as those from Corporate Citizenship (LBG) to define community investment.

However parameters such as percentage contribution of profit or earnings are not yet validated to

ensure community impact. More work needs to be done to ensure that these parameters being

measured truly correlate with the intended change we are seeking.

Subjective Analysis: This research involved an element of subjectivity, particularly for companies

whose reporting was not clear. If uncertain, researchers generally excluded these companies or sought

to gain clarification, however it was inevitable that some amount of subjectivity remained. Alignment

with global standards minimised this subjectivity and should be a focus for ongoing efforts in this

area.

Efforts to standardise reporting and seek assurance will

further reduce these limitations and strengthen our

ability to benchmark and improve performance.

“”

11

Scope & Methodology

Key Findings

The GivingLarge research revealed a significant $945 Million contribution from

Australia’s top companies to the community in 2018. This figure was derived from

analysis of 50 companies who met our inclusion criteria and clearly disclosed a

community investment figure in publicly available reports. Companies contributed a

mean $19 million investment across the group at a 0.62% contribution of pre-tax

profit and a 0.58% contribution of earnings*. The 2018 total represents an 11%

increase versus 2017 contributions, a significant $90M upsurge of funds to the

community. Leading companies based on percentage contributions of profit or

earnings included Wesfarmers, Oil Search, Woolworths and CSL.

50 Leading Companies

12

Reported

ContributionsCompanies adhered to a

global standard, gained third

party assurance or provided

clear itemisation

Contributed $945MTotal contributions include Cash, Time

and In Kind contributions. Exclude

political donations & commercial

sponsorships

0.58-0.62% Given0.62% of pre-tax profit, 0.58% of

earnings (EBITDA) rolling 3yr.

Below global benchmarks of 1%

Hundreds of

Beneficiaries76% of the nominated cause

areas where within Health,

Education, Diversity &

Inclusion or the Environment.

11%Versus 2017

In 2018

*All percentage contributions of earnings or profit in this report are calculated on a rolling 3 year bass

The leading percentage contributions in our overall

analysis came from the Consumer, Health Care

and Materials sectors with contributions over 1%

from top companies (both % of profit and

earnings). However it was the Materials sector that

contributed the largest total figure at a notable

$393M, representing a significant 42% of our total

GivingLarge figure.

Of the total $945M, 80% came from the top 10

companies and 79% came from just three sectors

(Materials, Finance and Consumer). These trends

are in keeping with previous reports and

demonstrate that within our top corporations there

are a small number of companies contributing the

most to the community. Sectors with lower

contributions (both percentage and total) included

the Industrial, Utility and Information Technology

sectors with average percent contributions all

below 0.3%. While these companies are giving

considerable amounts to the community there

remains an opportunity for these organisations to

increase their contributions in line with their ASX

peers.

0.58%

0.62%of Pre-Tax Profit

(Rolling 3 yr)

Average % Contribution

of Earnings (EBITDA)(Rolling 3 yr)

The upcoming sector overviews (page 16 onwards) provide detailed summaries and key findings

of the sector’s performance, noting the top performers in both total contribution and most

comprehensive reporting. Importantly it is these sector specific comparisons that are the most

meaningful, based on reduction of variables that may arise across different industries.

Key Findings

Calculations were based on how companies declared their Profit/Earnings

Consumer

1.8%

Real Estate

& Tech

0.3%

Industrial

0.15%

Finance

0.41%Telecom

0.7% n=1

Health Care

1.6% n=3

Materials

0.7%Utilities

0.2% n=2

Energy

0.6%

% pre-tax profit

% earnings (EBITDA)

80% of total funds came

from just 10 companies

Leading Companies by % Contribution

Wesfarmers

Oil Search

CSL

Woolworths

Rio Tinto

2019 Insights

Sector Company

Finance MEDIBANK

Materials RIO TINTO

Telecoms (n=1) TELSTRA

Industrial BRAMBLES

Consumer WESFARMERS

Health Care (n=1) CSL

Info Tech (n=1) LINK

Real Estate STOCKLAND

Energy OIL SEARCH

Utilities (n=2) SPARK

Sector Leaders by % Contribution

Largest Total Contributions in 2018

Rio Tinto

BHP

Wesfarmers

CBA

CSL

$256M

$103M

$87M

$70M

$53M

Roll 3yr % contributions of profit or earnings

Largest Sector Growth vs 2017

Finance was the biggest

moving sector with 18%

growth in giving versus

2017. Up $36M

“

”

Sector Overviews

15

Finance Sector %’s shown are of Pre-Tax Profit (roll 3yr)

16

MedibankMPL

0.78% $3.7MCauses: Community Health, Medical Research, Childhood Obesity

❑ Assured ❑ Standard (LBG)

AMPAMP

0.77%^* $8.9M

Causes: Education, Employment, Not for profit capacity building.

❑ Assured ❑ Standard

IAGIAG

0.72% $8.0MCauses: Community Safety, Environmental Protection, Emergency services & risk reduction,


SuncorpSUN

0.61% $10.1MCauses: Financial resilience, Social resilience & natural hazard resilience.


1 2

3 4

QBEQBE

0.60%^ $6.9MCauses: Health, Climate action, Financial Resilience, Vulnerable Communities, Diversity & Inclusion


Macquarie

GroupMQG

0.56% $17.6MCauses: Social innovation, not for profit capacity build, social & economic opportunities for young people

❑ Assured ❑ Standard (GRI)

6

CBACBA

0.43% $69.8MCauses: Social & Financial Wellbeing, Indigenous Support, Education, Health, Social Inclusion


NABNAB

0.41% $41.6MCauses: Disadvantaged/ Social Welfare, Community Sport, Health & Medical Research

❑ Assured ❑ Standard (GRI, LBG)

8

5

7

^ percentage contribution is based on rolling 4 year basis to take account of low profit year* AMP funds are contributed to the community from AMP foundation (a separate entity) & not derived from AMP profits

The finance sector showed a significant 18% growth in community giving in this years research.

An encouraging $37M extra contribution to the community, primarily driven from the big banks.

Medibank, AMP & IAG lead the sector in percent contribution with our big 4 banks again

contributing the most total dollars to the community.

Finance Sector Cont. %’s shown are of Pre-Tax Profit (roll 3yr)

17

WestpacWBC

0.31% $36.3MCauses: Financial inclusion, Climate change, equal rights, housing, social enterprise,


ANZANZ

0.27% $29.8MCauses: Financial wellbeing, housing and environmental sustainability

❑ Assured

109

❑ Standard (GRI, LBG)

Bank of

QLDBOQ

0.13% $0.6MCauses: Children’s health, education, arts

❑ Assured

11

❑ Standard

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

2015 2016 2017 2018

Finance Sector Contributions

Community Investment % of pre-tax profit

Biggest MoversCBA, NAB, ANZ, QBE

Primary CausesHealth, Financial Inclusion,

Education

Reporting72% GRI, 45% LBG

$ $233MTotal Contribution

0.43%Of Pre-Tax Profit

$21MMean Contribution

Sector Summary

An encouraging $37M extra

contribution to the community

versus 2017 primarily driven from

the big banks.

“”

Real Estate %’s shown are of Pre-Tax Profit (roll 3yr)

StocklandSGP

0.75% $6.9MCauses: Health & Wellbeing, Education, Community Connection.


1 GPT

GroupGPT

0.53% $5.0MCauses: Health & wellbeing, inclusivity, employment and skilling

❑ Assured

2

ScentreSCG

0.24% $7.0M

Causes: Disability, Social Wellbeing, Homelessness


3 MirvacMGR

0.20% $2.7MCauses: Homelessness, Health and Wellbeing, Arts & Culture


4

❑ Standard (GRI)

0.00%

0.05%

0.10%

0.15%

0.20%

0.25%

0.30%

0.35%

0.40%

0.45%

0.50%

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

2015 2016 2017 2018

Real Estate Sector Contributions over time


While the Real Estate sector’s average percent contribution is below average,

we observed solid contributions from companies like Stockland & GPT group“

”18

Real Estate Cont. %’s shown are of Pre-Tax Profit (roll 3yr)

19

Charter

HallCHC

0.20% $0.6MCauses: Climate change, social cohesion. Diversity & inclusion, supply chain, human rights & modern slavery.


5

Vicinity

CentresVCX

0.14% $2.2MCauses: Education and Young People, Health, Social Welfare.


6

DexusDXS

0.06% $1.0MCauses: Family & Child Health, Environment, Animal Welfare, Homelessness


7

Company Contribution as a % of

pre-tax profit

Total Contribution

Westfield 0.41% $5.3M

These companies published a figure but did meet the GivingLarge inclusion requirements.

Other Companies of Interest


Primary CausesHealth & Education

Biggest MoversStockland, Mirvac

While the Real Estate sector’s average

percent contribution is low we observed

solid contributions from companies like

Stockland and GPT group. Notably

Stockland leads this sector for a second

year in a row and again showed best

practice transparency and disclosure;

adhering to global standards (both GRI &

LBG), gaining third party assurance and

clearly itemising their giving. The lower

contributions from other firms in this sector

representing and opportunity to match their

peers in coming years



Sector Summary

$3.6MMean Contribution

Telecommunications %’s shown are of Pre-Tax Profit (roll 3y)

20

TelstraTLS

0.70% $36.5MCauses: Digital Inclusion, Climate Change, Emergency relief.


Information Technology%’s shown are of Pre-Tax Profit (roll 3yr)

Link

GroupLNK

0.30% $0.5MCauses: Education, health; physical & economic disadvantage, environment, cultural inclusiveness.



pre-tax profit

Total Contribution

Computershare 0.09% $0.16M



With only 1 Telecommunications company

adequately reporting their contributions

analysis in this industry is limited. The

sector through Telstra contributed $36.5M

to the community at 0.70% of their pre-tax

profit. While this was a lower total figure

than last year, their percent contribution has

slightly increased. Telstra’s contribution of

this size has been consistent for the last 4

years.

In our smallest sector by market cap, the

information technology sector through Link

Group contributed $500k to the community

at 0.30% of their pre-tax profit, and 0.15% of

their earnings. Computershare also disclosed

a figure in 2018 (as below) but did not meet

our inclusion criteria this year. Lower

contributions from this sector represent an

opportunity for this group of companies.

Telstra contributed a notable $37

Million dollars to the community in

2018. Their 0.7% contribution

of profit placing them in our

top 10 givers of 2018

“

”

Materials %’s shown are of EBITDA (roll 3yr)

21

Rio

TintoRIO

1.07% $256MCauses: Education, Recreation, Environment, Health,


1 South 32S32

0.85% $27.2MCauses: Education, health, poverty alleviation, environment, economic growth & employment


2

BHPBHP

0.62% $103MCauses: Human Capability & Social Inclusion, Environment, Governance


3 OricaORI

0.23% $1.8MCauses: Education, STEM, Community Health, Economic Development, Environment


4

IlukaILU

0.19% $0.6MCauses: Diversity & inclusion, environment, employment, education,


5 Northern

StarNST

0.15% $0.9MCauses: Health, Community, Indigenous, Education, Environment


6

BoralBLD

0.10% $1.1MCauses: Safety & Wellbeing, diversity & inclusion, environment & conservation, education


7Bluescope

BSL

0.07% $2.0MCauses: Health, Safety, Education, Environment, STEM, diversity & inclusion


8

After some significant drops in community giving in this sector over the last 4 years ($219M

drop between 2015-17), it’s now pleasing to see a growing total contribution from our mining

and materials companies who donated a remarkable $393M to the community in 2018.

Materials Cont. %’s shown are of EBITDA (roll 3yr)

22

Incitek

PivotIPL

0.05% $0.5MCauses: Education, Health, Community Development


9

Oz

MineralsOZL

0.05% $0.2MCauses: Education, health, community appeal,


10

FortescueFMG

0.004% $0.2MCauses: Education, Aboriginal engagement, Health, Economic Development, Arts, Environment

❑ Assured

11

❑ Standard (GRI)

Biggest MoversRioT, South32, Bluescope

Primary CausesEnvironment, Education,

Diversity & Inclusion

Reporting90% GRI

The larger figure versus 2017 coinciding with a

return to healthier earnings for the sector. This

acutely demonstrates the importance of company

earnings on community contribution. As

predicted it was our two biggest mining firms

giving the largest portion of the sectors

contribution, over 90% coming from Rio Tinto

and BHP


0.57%Of EBITDA

Sector Summary


0.00%

0.50%

1.00%

1.50%

$0

$200,000,000

$400,000,000

$600,000,000

$800,000,000

2015 2016 2017 2018

Materials Sector Contributions over time

Community Investment % of earnings (ebitda)

Industrial Sector %’s shown are of EBITDA (roll 3yr)

23

BramblesBXB

0.29% $6.3MCauses: Food Security, Food Waste, environmental restoration, education


1

Sydney

AirportSYD

0.15% $2.2MCauses: Education, Inequality, Community connection, Indigenous.

❑ Assured ❑ Standard (LBG, GRI)

3 TransurbanTCL

0.11% $1.4MCauses: Road Safety, transport & mobility, health, indigenous, education,


4

QantasQAN

0.16% $4.4MCauses: Health (Child, Global & Mental health) Gender Equality


2

ALSALQ

0.09% $0.5MCauses: Poverty, inequality, suicide prevention, homelessness


CimicCIM

0.03% $0.7MCauses: Health & wellbeing, inclusive education, sustainable resources, climate change, safe communities


65

0.14%

0.15%

0.15%

0.16%

0.16%

0.17%

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

2015 2016 2017 2018

Industrial Sector Contributions over time


Industrial Sector Cont. %’s shown are of EBITDA (roll 3yr)

24

Company Contribution as a %

EBITDA (roll 3yr)

Total Contribution

Seek 0.07% $0.3M

Cleanaway 0.24% $0.8M




Biggest MoversBrambles, ALS

Primary CausesHealth, Education,


The Industrial Sector contributed $15.5 Million dollars

to the community in 2018 at a 0.15% contribution of

earnings. While these companies are giving

considerable amounts to the community there remains

an opportunity for these organisations to increase their

contributions, which all fell below 0.3% of earnings.

Brambles lead the sector at 0.29% contribution and

while still well below average GivingLarge

contributions was twice as high as any other company

in this sector.

$ $15.5MTotal Contribution

0.15%Of EBITDA

Sector Summary


Energy %’s shown are of EBITDA (roll 3yr)

Oil

SearchOSH

1.73% $31MCauses: Community Health, Disaster & Drought relief, Community Education


1 Worley

ParsonsWOR

0.85% $1.1MCauses: Education, STEM, disaster recovery, waste reduction, health, poverty & hunger, water sanitation,


2

WoodsideWPL

0.53% $18MCauses: Education & early childhood development, environment, technology & innovation, arts, culture & community


3 CaltexCTX

0.22% $2.0MCauses: Youth & education, safety & underserved communities..


4

❑ Standard (GRI)

Beach

EnergyBPT

0.06% $0.4MCauses: Health, education, indigenous engagement


6Origin

ORG

0.21% $3.0MCauses: Education to help break the cycle of disadvantage and empower young Australians to reach their potential.

❑ Assured

5

25

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%

0.80%

$48,000,000

$50,000,000

$52,000,000

$54,000,000

$56,000,000

$58,000,000

$60,000,000

$62,000,000

$64,000,000

$66,000,000

$68,000,000

2015 2016 2017 2018

Energy Sector Contributions over time


Energy Cont. %’s shown are of EBITDA (roll 3yr)


EBITDA (roll 3yr)

Total Contribution

Whitehaven Coal 0.05% $0.4M



Primary CausesHealth & Education

Biggest MoversOil Search


This year the energy sector showed the largest spread

of contributions across member companies. Oil

Search’s impressive 1.73% contribution significantly

outperforming others in this sector. Oil Search’s large

contribution mostly made its way to communities in

Papua New Guinea. The drop in giving in this industry

versus previous totals was not a reflection of

decreasing investment from our top energy firms but

instead the reflection of a lack of disclosure from

Santos who didn’t disclose a figure in 2018 (previous

was $13M in 2017). If we estimate a similar

contribution from Santos in 2018 then totals are in

keeping with previous years and align with average

contributions in our cohort.

26


0.51%Of EBITDA

Sector Summary


Consumer %’s shown are of pre-tax profit (roll 3yr)

WesfarmersWES

2.51% $87MCauses: Medical Research & Health, Indigenous programs, Community & Education, Arts


1Woolworths

WOW

1.64% $31MCauses:. Food rescue, health, economic development, emergency relief


2

TabCorpTAH

0.90% $1.4MCauses: Health, Social Welfare, Environment, Education


3 Coca-Cola

AmatilCCL

0.84% $6.2MCauses: Food rescue and Hunger, Emergency Relief, Education, Health & Medical Research

❑ Assured

4

❑ Standard (GRI, LBG)

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

$140,000,000

2015 2016 2017 2018

Consumer Sector Contributions over time


27

With a notable 1.8% contribution of profit the consumer sector lead by Wesfarmers was the

most generous sector based on percentage contribution. Wesfarmers was also our top company

overall for the second year in row. Their various businesses managing their own community

partnerships, with their combined efforts adding up to a total of $87M to the community in

2018.

Consumer Cont. %’s shown are of pre-tax profit (roll 3yr)


pre-tax profit

Total 2018 Contribution

Treasury Wine 0.21% $1.0M

a2 Milk 0.11% $0.05M

Flight Centre 0.81% $3.0M

JB HiFi 0.43% $1.4M




Primary CausesHealth, Education,


Biggest MoversWesfarmers, TabCorp

28

While it’s interesting to see their clear leadership in

2018, Woolworths also impressively grew their

contribution versus 2017 contributing 1.64% of

profit, placing them in our top 4 givers overall.

Eyes will continue to be on these two consumer

giants in 2019/20 and beyond due to the recent

demerger of Coles group, whose operations were

believed to constitute the largest part of the

Wesfarmers giving pie. Next year’s data will give

us a chance to compare Coles and Woolworths side

by side.



Sector Summary

$31.3Mean Contribution

The Consumer sector contributed a

notable 1.8% contribution of profit “

”

Health Care %’s shown are of Pre-Tax Profit

29

CSLCSL

1.97% $53MCauses: Patient communities & support groups, biomedical research & education, emergency relief


1


pre-tax profit

Total Contribution

Sonic 0.35% $2.3M

HealthScope 0.46% $0.5M



CSL was the only top 50 contributor in the

health care sector. As one of last years overall

leaders they narrowly missed out this year

despite their consistent giving. Their $53M

contribution constituting 1.97% of their

profit placing them second when looking at

percentage of profit. Not only do these

figures stand out amongst our cohort but

CSL also set a best practice benchmark with

their reporting by ensuring clear itemisation,

adherence to a reporting standard and third

party assurance.

Utilities %’s shown are of EBITDA (roll 3yr)

30

SparkSKI

0.37% $3.1MCauses: Culture, Education, Health, Environment


1

AGLAGL

0.19% $4.3MCauses: Arts & Culture, Economic Development, Social Welfare, Environment


2


0.24%Of EBITDA

Sector Summary

$3.7Mean Contribution

With only 2 utility companies adequately

disclosing their community contribution, this

sectors analysis is somewhat limited. Spark

Infrastructure leading this sector with $3.1M

given the community at 0.37% of earnings.

While their percentage contributions were

slightly lower, AGL’s reporting was high

quality and their overall dollar contribution

exceeding Spark’s. Sector funds went

towards the environment and arts and culture.

Reporting100% GRI

Primary CausesEnvironment, Arts &

Culture

Biggest MoversAGL

0.62%

1.07%

0.85%

0.23%

0.05%

0.00%

0.07%

0.15%

0.10%

0.19%

0.05%

0.11%

0.29%

0.15%

0.16%

0.03%

0.09%

0.53%

0.21%

1.73%

0.22%

0.85%

0.06%

0.19%

0.37%

0.0%0.5%1.0%1.5%2.0%

BHP Billiton

Rio Tinto

South32

Orica

Incitec Pivot

Fortescue

Bluescope

Northern Star

Boral

Iluka

Oz Minerals

Transurban

Brambles

Sydney Airport

Qantas

Cimic

ALS

Woodside

Origin

Oil Searcb

Caltex

Worley Parsons

Beach Energy

AGL

Spark

0.43%

0.31%

0.41%

0.27%

0.56%

0.78%

0.61%

0.60%

0.72%

0.78%

0.13%

0.24%

0.14%

0.75%

0.06%

0.53%

0.20%

0.20%

2.51%

1.64%

0.90%

0.84%

1.97%

0.30%

0.70%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0%

CBA

Westpac

NAB

ANZ

Macquarie

AMP

Suncorp

QBE Insurance

IAG

Medibank

BOQ

Scentre

Vicinity Centres

Stockland

Dexus Property

GPT Group

Mirvac

Charter Hall

Wesfarmers

Woolworths

Tab Corp

Coca Cola

CSL

Link

Telstra

GIVING AS A %

OF PROFIT

GIVING AS A %

OF EARNINGS

Finance

Real Estate

Consumer

Health

Info Tech

Telecom

Utilities

Energy

Industrial

Materials

% contributions are based on rolling 3 or 4 year basis of earnings (EBITDA) or profits (pre-tax profit)

Notable Findings

Biggest Movers

ASX 50 sub-analysis.

Biggest

Movers

% Increase

Vs 2017

Total $ Increase

Vs 2017

CBA 40% $20M

NAB 39% $12M

ANZ 26% $6.0M

QBE 21% $1.2M

Rio Tinto 12% $27M

South32 46% $8.6M

BlueScope 400% $1.5M

Wesfarmers 19% $14M

Mirvac 57% $0.9M

Oil Search 59% $11M

In 2018 we pleasingly saw 28 out of our

top 50 companies increase their

community contribution. Of these, 19

markedly increased their contributions

by more than 20%, a significant increase

that underpins the overall growth of our

total community contribution (up $90M).

Biggest movers included finance

institutions, specifically CBA, ANZ,

NAB and QBE as well as our two 2019

GivingLarge Leaders; Wesfarmers and

Oil Search.

Last years inaugural GivingLarge report focussed on ASX50

companies. The dataset was collated from 39 ASX50 companies that

adequately reported on their community investment in the previous

year. As noted in our methodology, this year we took the opportunity

to expand our analysis (ASX100) and tighten our methodology. All

references to growing contributions in this years report are based on

analysis on only this years companies and changes year to year. To

provide meaningful comparison to last years report we also conducted

an ASX50 sub analysis. Key findings included:

• $928M given to the community from ASX50 companies

• An increase of 8% versus 2017

• 0.62% contribution of pre-tax profit,

• 0.45% contribution of earnings (EBITDA)

• Mean Contribution of $24M

8%

$928M

32

Notable Findings

Income Versus Community Contributions

As our dataset grows we are beginning to observe important trends which will hopefully

help us inform future philanthropic patterns, funding cycles and opportunities. Not

surprisingly, company earnings or previous year growth (all companies) seem to be a

predictor of increased community contributions. This can be seen in specific sectors in the

first instance (see sector overviews). The trend is less evident in our full top 50 analysis

(below) but given the larger dataset may be less pronounced and more observable in

coming years. With healthier 2018 earnings from out top companies we would expect, and

certainly hope for significant increases in total giving to be evident in our 2020 research.

$750,000,000

$800,000,000

$850,000,000

$900,000,000

$950,000,000

$1,000,000,000

$1,050,000,000

$-

$20,000,000,000

$40,000,000,000

$60,000,000,000

$80,000,000,000

$100,000,000,000

$120,000,000,000

$140,000,000,000

$160,000,000,000

2014 2015 2016 2017 2018

Earnings & Percent Contributions Over Time

Earnings Profit Community Contribution

Preferred Causes

The GivingLarge top 50 companies distributed

millions of dollars to hundreds of different

community organisations. The majority of the

included companies clearly outlined their

community focus areas. More than 100 primary

cause or focus areas were nominated in public

reports from these companies. 76% of the

nominated cause areas where within categories of

Health, Education, Diversity and Inclusion or the

Environment.

33

Notable Findings

High Revenue Private Companies

This year our researchers took the opportunity to cast the net beyond our ASX analysis to

learn about the community giving of Australia’s high revenue private companies. An

under examined area, the results of which would clearly align with our GivingLarge

dataset and encourage further community contributions & reporting from these important

companies. To ensure the robustness of our dataset we applied the same methodology

when researching private organisations, specifically the requirement for adherence to a

standard, third party assurance or clear itemisation. Despite some significant philanthropy

that is evident from these companies, with the non mandatory requirements for private

companies to report, let alone follow public disclosure protocols, we were unable to glean

significant data or insights from our top private companies. See below our key learnings

which will help inform our ongoing research into this area. Given these significant

differences, a tailored research approach for private companies is required and will likely

constitute a separate piece of research in the future.

Company (> $2B revenue) Community Data

Visy Industries Not Reported

Hancock Prospecting Not Reported

7-Eleven Stores Not Reported

CBH Group Not Reported

Meriton Not Reported

BGC Not Reported

Hutchies Not Reported

HCF HCF Foundation >$1.5M

Teys Australia $140k

Cotton On Group Up to $15M reported

Peregrine Corporation Not Reported

PwC Australia Not Reported

St Vincent’s Health Not Reported

Deloitte Touche Tohmatsu Not Reported

Key Learnings

• Private companies are

giving to the

community but do not

routinely disclose their

contribution.

• Private company

contributions that are

reported do not

currently follow a

standard or seek

assurance.

• A significant

opportunity exists to

learn more about the

contributions from these

companies.

34

Reporting Standard

With our improved methodology the

companies included in our analysis this

year pleasingly met more stringent

reporting criteria. 91% of companies in

our list adopted either the GRI standards

or LBG framework (members) to report

on their community investment. GRI was

the pre-dominant standard disclosed

however a large number of companies

also used the LBG framework/categories,

even as non-members, to breakdown their

contributions. 15% of companies reported

using both the GRI standards and LBG

framework (members). The 9% of

companies that did not disclose

adherence to GRI or LBG were only

included if they had provided third party

assurance or clear itemisation. These

companies were then analysed in the

same manner and subjective alignment to

the above standards was sought. A

number of companies reported a 2018

community contribution figure but didn’t

meet our inclusion criteria so were not

included in our primary list. A total of 11

companies fell into this category. These

companies are shown in the sector

overviews, “Other Companies of

Interest” tables.

Reporting

Reporting Standard

GRI71%

LBG20%

None9%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

2016 2017 (joined

LBG)

2018

Coca Cola Amatil joined LBG in 2017

Community Investment % of pre-tax Profit

Continued use of a reporting standard should be highly encouraged to ensure aligned & meaningful

disclosure. GRI adherence is becoming a cost of entry benchmark with most companies either adhering

to these standards or intending to in upcoming years. Membership with Corporate Citizenship (LBG)

should certainly be considered for all companies of this size. LBG Members in this cohort showed

notably higher quality reporting and often higher overall contributions to the community. The Coca

Cola Amatil example above acutely demonstrates this. Coca Cola Amatil joined LBG in 2017. The

2017 increase likely a result of the thorough process and methods taken by Corporate Citizenship to

discover, benchmark and formalise a companies community investment.

35

Itemisation

While the total cost of a community activity may well be

made up of one, or a combination, of different types of

contributions, meaningful breakdown or itemisation of

the contribution from assessed companies is mixed. In

many cases, companies reported the main elements of

their contribution, such as their total cash figure or

volunteer time, but didn’t break down into other

categories. 54% of companies published clear itemisation

of their community investment (most often aligned with

LBG categories), 15% partial itemisation and 31% very

little to no itemisation.

Increased efforts to breakdown a company’s community

giving would bring value to many stakeholders including

the corporates themselves. Clear itemisation will ensure

engagement with the right community stakeholders to

optimise impact and attract sought after attention from

investors and customers with shared interests.


While the majority of companies in our sample gained

third party assurance for their sustainability or CSR

reports, only 28% of our cohort specifically assured their

published community investment figures. The majority of

companies engaged limited assurance, usually with a

focus on assuring the environmental aspects of their

report.

This is certainly an area of interest and a potential area

for improvement. For companies to make reliable claims

about their community impact and levels of generosity,

third party assurance on their community investment

numbers should be engaged.

Reporting

Itemisation


Yes54%

No31%

Partial15%

Yes28%No

72%

Clear itemisation can

help to attract sought

after attention from:

• Community Partners

• Customers

• Investors

37

Conclusions & Recommendations

• The 2019 GivingLarge study revealed a considerable contribution from our top 50

companies to the community in 2018. $945 million dollars was given from those

organisations that all clearly reported on their contributions. This total was an 11%

increase from 2017 and represents a significant amount of funds heading to community

causes in need. Hundreds of charities, not for profit and community organisations relied

on these corporate efforts in order to conduct their important work in our community.

Funds pre-dominantly going towards health, education, diversity and inclusion and the

environment. Corporate Australia's efforts in this area should be highlighted and

encouraged. With estimates suggesting that around 1 in 4 charities in Australia depend

on giving for 50% or more of their total income, and that approximately $10.5 billion

makes its way to charities from donations and bequests (per year), the contribution from

just these 50 companies is significant and reminds us of the critical role our big

companies have in supporting the community.

• Leading companies included some big corporate names such as Wesfarmers, CSL,

Woolworths, Oil Search and Rio Tinto. These companies all increasing their

contributions since last year and all contributing more than 1% of their profit or

earnings. These firms should be acknowledged, congratulated and encouraged to

continue their giving and quality reporting. Best practice sharing of the methods and

strategies undertaken by top companies to prioritise community investment as well as

the creation of a culture of healthy competition amongst these large organisations could

benefit the community greatly.

• Our business community now have a remarkable opportunity to embrace the globally

encouraged 1% (of profit/earnings) target. The current research suggesting just these 50

companies could shift an additional $600M of funds to the community if they could aspire

to this reasonable goal. Doing so may also set a best practice example to smaller

organisations, potentially unlocking billions of dollars from other businesses in Australia.

• Within our total dataset there is again a small number of firms giving the most to the

community, with 80% of the total coming from just 10 companies. While the Consumer

and Health Care Sector were the most generous in terms of percentage giving, it was the

mining & materials sector that contributed the largest total sum ($393M representing 42%

of the total). With such a large input from a small number of companies, efforts to

understand, support and highlight these organisation in their social efforts would be time

well spent. Focussing efforts on enhancing overall understanding of their impact and their

social decision making on our community.

• With our improved methodology and tightened inclusion criteria, companies need to

adhere to robust reporting to be included in our dataset. Ongoing efforts to standardise

reporting and seek assurance will serve to strengthen the accuracy of company disclosure,

the ability to accurately reflect on impact, and most importantly will enable the

community to make valued and robust sector comparisons to drive future behaviour. With

fluctuating levels of consumer and stakeholder trust amongst corporates of this size,

adequate reporting will also give companies the confidence to highlight their verified

community contributions. Adherence to GRI standards and alignment (ideally

membership) with Corporate Citizenship (LBG) would be considered best practice

reporting and should be considered by all companies.

• The GivingLarge Report represents one of only a small number of studies to investigate

the community contribution of Australia’s top companies. Given the large yearly

contribution noted, further consensus based research examining the community investment

of these companies and the broader business community is needed. Future research

examining privately held organisations and global companies with Australian subsidiaries

would be highly valued. These studies should also look to further investigate markers of

impact, such as percentage contribution (of profit or earnings), foregone revenue and

corporate leverage, validating these parameters to ensure optimal community impact.

38

Conclusions & Recommendations

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