CLIMATECHANGE INTEGRITY 2011 SUSTAINABILITY REPORT

C L I M A T E C H A N G E I N T E G R I T Y2 0 1 1 S U S T A I N A B I L I T Y R E P O R TP R E S E R V A T I O N E N V I RO N M E N T S T E W A R D S H I PE N D E A V O U R O P P O R T U N I T YD E V E L O P M E N T I N S P I R A T I O NC O N T I N U I T Y E N G A G E M E N TU N D E R S T A N D I N G R E S O U RC E S W A T E R S A F E T Y E X C E L LE N C E E F F I C I E N C Y C O M M U N IT Y P E O P L E H U M I L I T Y F O O T P RI N T C O M M I T M E N T R E C Y C L I NG L E A D E R S H I P E N E R G Y CA R E S A F E T Y O P P O R T U N I T Y IN S P I R A T I O N E F F I C I E N C Y E N VI R O N M E N T D E V E L O P M E N T O PP O R T U N I T Y E N G A G E M E N T C LC L I M A T E P R E S E R V A T I O NC O M M I T M E N T C A R E R E C YC L I N G L E A D E R S H I P W A T E R CO M M I T M E N T E N G A G E M E N T

C O N T I N U I T Y

E X C E L LE N C E

E N D E A V O U R

H U M I L I T Y

I N T E G R I T Y2 0 1 1 S U S T A I N A B I L I T Y R E P O R T

John Swire & Sons

Review

From the Chairman

Sustainability at Swire

Swire in Australia

Swire Cold Storage

Kalari

Alex Fraser Group

Swire Industrial Services

Safety

Environment

People

Community

ContentsPage

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This review covers the calendar year 2011, for Swire operating companies in Australia under the control of John Swire & Sons Pty Ltd, including Swire Cold Storage Pty Ltd, Kalari Transport Pty Ltd, Swire IndustrialServices Pty Ltd, and the Alex Fraser Group Pty Ltd. As Swire has sold most of the assets belonging to Clyde Agriculture, and with the remaining properties on the market, Clyde and associated data has been excluded from this report. Australian branches of businesses that are part of the wider Swire Group have also beenexcluded, including Cathay Pacific Airways, Swire Oilfield Services, Swire Pacific Offshore, the China Navigation Company and Swire Shipping. This is our first report, and we will continue to report on an annual basis.

This review follows the Global Reporting Initiative’s (GRI) Sustainability Reporting Guidelines. We report on the indicators that have been materiality tested and deemed most relevant to our businesses.

In preparing our first report, improvements have been made in our data collection, but we can always get better. Gaps have been identified in the operating companies, and plans are in place to address these gaps. Specific details can be seen in Appendix B. One major gap has been the inclusion of subcontractor data inour reporting, which was not holistic across the group, and we began closing that gap during 2011.

Reader’s Guide

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Appendices

A.

B.

C.

SD policy

Data tables

GRI Indicator Table

Contact & feedback

i John Swire & Sons Pty Ltd ‘11SR

Swire recognises that continued success is dependent upon the sustainable development of our businesses and the communities and environments upon which we depend. As part of our overall commitment to good corporate governance, we believe it is our duty to act in a socially responsible manner through a range of initiatives that aim tobenefit the communities we serve and help to preserve our natural environment.

As a company that has been operating for nearly 200 years, Swire sees forward-thinking and innovation as core attributes that underpin any success. As such, ‘sustainabledevelopment’ is synonymous with the underlying philosophy that has driven Swire throughout our long history – it is part of who we are and how we operate.

However, the challenges that we face today are different from the past and requiredifferent solutions – climate change and energy consumption in particular. Weunderstand that these challenges must be addressed in order for us to continue to be successful in the future. Hence, greater resources and more attention must be focused on these issues throughout the Australian group of companies so that the necessary changes are made. This report is a step in the right direction. We believe that to make things happen, you have to plan for it, communicate it and action it. The GlobalReporting Initiative is an effective way for us to prioritise our Sustainable Development objectives.

With the expectation of a growing economy, Australia is considered to be afavourable environment to expand and grow Swire’s business investments. Theimportance of sustainability is central to how we do this and how successful we willbe in the longer term. Swire recognises that sustainable development does not meanless profit or growth, rather the reverse. It will also ensure that we operate moreprofessionally and efficiently so that we are well positioned into the future.

The most important element in creating a sustainable business is the people who are involved in the business as employees, customers, and service providers or those who live in the communities in which the business operates. Their health and safety and their understanding and ongoing participation in the sustainability process is the foundation of real success.

From the Chairman

Bill Rothery Chairman, John Swire & Sons Pty Ltd

John Swire & Sons Pty Ltd ‘11SR 1

Sustainability at Swire

2 John Swire & Sons Pty Ltd ‘11SR

Sustainability plays an important role in each of John Swire & Sons’ operating companies – each management team must assess their sustainability issues, prioritise areas for action, and plan and implement their strategies.

The Role of John Swire & Sons Pty LtdThrough its Sydney Head Office, Swire sets the policy and supports and monitors implementation by the operating companies. While the Sustainable Development policy is in line with the global Swire Group, our goals are slightly different given different contexts, industries and operating environments.

Engagement with StakeholdersEach operating company has developed a stakeholder map, identifying key groups who have the ability to affect how we do business, or are impacted by our operations. Flowing on from the map are stakeholder management plans. In general, local communities, our people, our customers, and our shareholders are our most important stakeholders. In 2011 we established a communications team that will assist us in improving the communication channels between us and our stakeholders.

Dust monitoring system at Alex Fraser Clayton – this won the Australia & New Zealand Clean Air Society Achievement Award in 2010.

Swire in Australia


John Swire & Sons Pty Ltd is a holding company that coordinates Swire’s interests throughout Australia, providing management for local subsidiaries and acting as an agent for some overseas interests.

Swire has had operations in Australia since 1855. Headquartered in Sydney since 1952, John Swire & Sons Pty Ltd is a wholly owned subsidiary of UK based John Swire & Sons Ltd, the parent company of the Swire Group. The Group’s holdings include, in addition to a number of significant privately owned companies, the publically listed companies Swire Pacific, Swire Properties, Cathay Pacific Airways, Hong Kong Aircraft Engineering Company Limited (HAECO), and the PNG based Steamships Trading Company.

John Swire & Sons Pty Ltd is a holding company that coordinates Swire’s interests throughout Australia, providing management for local subsidiaries and acting as an agent for some overseas interests. Swire’s business interests in Australia date from its early19th-century shipping operations and span over 150 years. Today they cover a diverse number of industries including transport & logistics, recycling, materials handling, refrigerated storage and logistics.

With the expectation of a stable and growingeconomy, Australia is considered to be a favourable environment for the group to expand and grow.

AUS $M

Revenue 501

Operating Costs 318

Employee Wages & Benefits 116

Payments to Providers of Capital 16

Payments to Governments 30

Economic Value Retained 21

Community Investment 0.2

Swire in 2011: 48 sites, 1370 employees, 422 new hires.

Swire Cold Storage has been a successful operator in cold chain services since 1954; which includes storage and distribution of predominantly food products in ambient, chilled and frozen temperature controlled facilities.

Today, Swire Cold Storage is the country’s largest national refrigeration and distribution group, with 560 employees, 17 facilities comprising over 73 million cubic feet and 326,000 pallet spaces of temperature controlled warehousing; and a fleet of over 50 vehicles and 137 refrigerated trailers, operating under the Frigmobile brand.

The business relies heavily on capital investment to remain competitive under stringent regulatory food storage temperature guidelines, and as an industry, is heavily impacted by ever increasing energy costs and water rates.

Thanks to a full range of innovative investments in state-of-the-art facilities and smarter systems, Swire Cold Storage is in a good position moving forward. Between 2009 and 2011, Swire Cold Storage was able to reduce its reliability on water and power consumption by 20%, making Swire Cold Storage one of the most innovative cold warehousing and transport service providers in the industry.

Swire Cold Storage


Swire Cold Storage is the country’s largest national refrigeration and distribution group, with 560 employees, 17 facilities comprising over 73 million cubic feet and 326,000 pallet spaces of temperature controlled warehousing.

Swire Cold Storage site at Lurnea, NSW.

Swire Cold Storage

Kalari was established in the coastal town of Portland, Victoria where it was given its Aboriginal name, meaning “By Blue Water”. Part of Swire since 1994, it remains a recognisable Australian brand that can be found in many remote Australian regions, as a provider of customised transport solutions for the mining industry.

In more recent times, the company has evolved from providing linehaul services to specialised services for the mining industry, particularly in remote locations.

The company has a strong focus on attracting and retaining quality people, and a “zero harm” safety culture. Kalari currently employs 540 people in 19 key depot locations across Australia.

With a fleet of 270 company-owned prime movers, an additional 150 subcontracted vehicles; and more than 1,000 pieces of trailing equipment the company has an impressive reputation as a transport innovator. It combines its prime mover fleet with a wide range of specialized trailer configurations including pneumatic tankers, chemical tankers, bulk liquid tankers, B-doubles, road trains and triple road trains, tautliners and tippers.

Kalari


Kalari employs 540 people, and operates a fleet of 270 prime movers, and 1000 specialised truck and trailer combinations from 19 key depot locations across Australia.

Kalari’s distinctive orange and yellow branding.

Alex Fraser is respected as Australia’s most innovative construction and demolition waste recycler, having received some of Australia’s most prestigious environmental accolades, including the Gold Banksia Award in 1995 and the Prime Minister’s Award for Environmental leadership in 2000. It pioneered the technology required to successfully recycle demolition and construction materials, and is the driving force behind the acceptance and recognition of recycled road base, aggregates, crushed rock, asphalt and recycled glass; as sustainable alternatives in civil infrastructure products.

Alex Fraser currently operates six facilities in Melbourne and Brisbane. These facilities receive and process construction and demolition waste, which is tested by the National Association of Testing Authorities (NATA) and approved by road authorities for use as road base, aggregates and in road asphalt mixes. A by-product of processing construction waste materials is the recovery of steel from reinforced concrete and demolition projects, making scrap steel another main income stream for the company.

More recently, the company embarked upon developing a suitable endproduct for the nation’s growing source of inert glass waste, which is otherwise unsuitable for common forms of glass recycling. After extensive research and development, the company has now successfully sold more than 60,000 tonnes of recycled glass, to various civil construction projects in the Melbourne metropolitan region. The acceptance of this innovative and sustainable product continues to grow as a suitable alternative to quarried sand.

Alex Fraser Group


From humble beginnings in the metals trading business in 1879, Alex Fraser has grown to become Australia’s most innovative and respected construction and demolition waste materials recycler, operating six recycling facilities across Melbourne and Brisbane.

The entrance to Alex Fraser’s Clayton site in Victoria.

Swire Industrial Services


Swire Industrial Services operates two specialised recycling facilities alongside BlueScope Steel’s production sites in Wollongong, New South Wales and in Westernport, Victoria. They deliver products and services for BlueScope Steel, including coolant for the Port Kembla facility. Coolant is manufactured by collecting, processing and recycling scrap metal from BlueScope Steel’s production process. The collected materials are processed into small crushed balls of steel, which allow better temperature control and greater product quality within the steel furnace smelters.

The use of recycled steel waste material into coolant was pioneered by Swire Industrial Services as a genuine opportunity to save steel production costs. This in turn generates further efficiencies and energy savings. These savings, whilst small, go a long way towards assisting carbon savings in one of the highest carbon emitting industries in the world.

Swire Industrial Services is currently being amalgamated into the Alex Fraser Group as both companies are specialists in resource recycling.

The use of recycled steel waste material into coolant was pioneered by Swire Industrial Services as a genuine opportunity to save steel production costs.

Steel coolant produced by Swire Industrial Services.

The health and safety of all those employed by Swire is of utmost importance to us. We aim to provide a totally safe working environment and create zero harm to our employees and visitors. We arecommitted to the principle that business objectives should never compromise safety. We believe that all injuries are preventable and no injury is acceptable. While the industries in which we operate are poten-tially hazardous, they need not be dangerous.

Providing a safe work place is a business priority. It is both the right thing to do, and a ‘licence to operate’. So we invest time, money, people, and resources to ensure a safe place of work.

Our commitment to safety has resulted inimprovements to our safety performance. Over the past three years our LTIFR has decreased 53% from 12.8 in 2009, to 5.9 in 2011. Similarly, our total days lost has decreased 61% from 1385 to 536. This is still not an acceptable level of performance and we must continue to improve our safety record.

TrainingSwire companies know that training is one of the key elements in providing a safe work place so we invest the time and resources to ensure that our people have the right training to do their job safely. In 2011 Kalari introduced a new method of incident investigation that is very effective in identifying contributing factors that led to an incident occurring. Providing training for senior management, operations and sitemanagers, means that the entire business is involved with investigations, maximising the ability to learn from the past and continuously improve. In 2011, Kalari invested over 18,000 hours in safety related training.

Safety


Providing a safe work place is a business priority. It is both the right thing to do, and a ‘licence to operate’. So we invest time, money, people, and resources to ensure a safe place of work.


Leadership & EngagementSafety leadership and behavioural engagement from our employees is crucial for safety success. Leaders within the business must demonstrate their safety leadership in order to set safety as a key business priority. In late 2011 Damian Jones, CEO at Swire Cold Storage, relaunched the ‘Safety Comes First’ programme, which included a national site tour.

He spent time at each facility talking to employees about the importance of safety and how it is hisnumber one priority: “As CEO of SCS, it is myresponsibility to ensure all our employees areworking in a safe environment and manner, and go home healthy at the end of each work day. In 2012 we will be investing in the development of ourpeople, equipment and processes, to support the business to be even better in safety”.

Case study: Recognising 6 years LTI FreeIn 2011, Swire Industrial Services reached the milestone of six consecutive years without lost time due to injury. The achievement was recognised on September 6th at Port Kembla in New South Wales, during a ceremony at the BlueScope Steel Northgate Visitor Centre. During an official commemoration, all members of the Swire Industrial Services team were presented with a thank you letter and gift card by John Swire & Sons Chairman, Bill Rothery. In his speech, Bill reconfirmed that their achievement would not have been possible without the support, participation and commitment of each member of the team.

The occasion was also used to thank BlueScope Steel’s management for their contribution as a customer who is equally committed to safety. Swire Industrial Services attributes their success to a great safety culture, which has given the team a better understanding of how to best manage risk. BlueScope Steel shares this safety culture and is just aspassionate about safety.

LTIFR 2009LTIFR 2010LTIFR 2011

3

6

9

12

IFR 2009IFR 2010IFR 2011

20

40

60

80

Kalari SCS AFG

LTIFR 2009LTIFR 2010LTIFR 2011

Kalari SCS AFG

5

10

15

20

Swire Group


Improved our safety performance, reducing our LTIFR from 9 to 5.9.

Implemented new safety programmes in SCS and Kalari to support the ongoing development of a positive safety culture.

Continue to improve our safety performance.

Increase the use of lead indicators to better understand and proactively manage safety.

Work with contractors and subcontractors to further improve the safety of the businesses that we operate.

In 2011, we:

In 2012, we aim to:

Safety at Work: Interview with Steve Cochrane,Operations Manager at CedunaSteve is Kalari’s Operations Manager in Ceduna, South Australia. He joined the company just before the start of the Goal Zero safety campaign, and has seen major changes as a result.

Steve maintains that “safety means that my staff actually go home in the same manner or betterthan they came to work. It’s about ensuring that their family will have their husband or wife coming home at the end of the day”. Through leadership, communication and consultation;the fundamental belief in Goal Zero is beingcultivated through all levels of operations.

Improvements to consultation have been a key feature of this achievement. Steve recalls, “less that eighteen months ago we were running around looking for safety issues, and the guys would say ‘everything’s fine’, when we knewthere were areas for improvement”. Throughregular toolbox meetings and the establishmentof team leaders and safety representative officers,communications have improved. The Cedunateam addressed the stereotype of reporting anincident being seen as ‘dobbing in your mate’ byreinforcing a no-blame culture and focusing on solutions rather than the individuals involved. More importantly, feedback was not falling on deaf ears. Management was listening to feedback andacting on it, so everyone could see real changes.

Now, Steve believes that the consultationmechanisms are robust; information is flowing freely, everyone is on the same wavelength and working as a team. While he thinks that there are always improvements to be made, safe working operations at Ceduna Depot have improved in leaps and bounds. Steve is proud to report that the operation has been LTI free since inception in November 2009. His safety message: “Get the job done. Get it done safe. Everyone will go home at the end of the day”

Swire is committed to being a good steward of theenvironment and natural resources under itsinfluence, and ensuring that potentially adverse impacts of operations are identified and appropriately managed. Swire recognises that our operations are resource intensive and is committed to becoming ‘best in class’ in terms of environmental performance. We believe we can make positive changes through the companies in which we invest, and how they are operated.

Energy EfficiencyAs large consumers of energy, all Swire operatingcompanies work towards improving the energyefficiency of their operations. As a result ofconsiderable capital investment, Swire Cold Storage achieved a 20% reduction between 2009 and 2011. They have committed to a 15% reduction between 2011 and 2015 based on a 2010 baseline. Through acombination of energy management systems, plant upgrades, lighting system upgrades, voltageoptimisation and behavioural change, Swire Cold Storage achieved a reduction of 6.8% in 2011, and seeks a further 4% reduction in 2012.

Swire believes it is important to measure performance so it can be managed, and encourages operating companies to have robust and meaningful ways of understanding energy consumption.

As large energy consumers, Swire Cold Storage and Kalari are also required to participate in the Federal Energy Efficiency Opportunities (EEO) programme, which prescribes an approach to identifying,assessing, and implementing opportunities for saving energy. EEO reports are available on operatingcompany websites.

Environment


Swire is committed to being a good steward of the environment and natural resources under its influence, and ensuring that potentially adverse impacts of operations are identified and appropriately managed.

Swire Cold Storage installed LEDs as part of its energy efficiency programme.


InnovationWith increasing pressure on non-renewable and limited resources, Swire has taken on the challenge of changing the way we consume resources, our key focus being electricity, fuel, and water. Frompioneering new LED lighting technologies in Swire Cold Storage warehouses to new productdevelopment at Alex Fraser, our ability to innovate is proving a common attribute across the group.

Water ConsumptionMost of the cities and regions in which we operate have faced water supply restrictions or challenges at some stage in the past few years. As large consumers with growing water requirements, we are aware of the need to consume less water, so are learning how to use less to do more. Swire Cold Storage has made significant investments in improving our potable water consumption – as of the end of 2011 they now have a 4 million-litre storage capacity for rainwater harvesting. Over the year, this resulted in thecollection of 26 million litres of water, representing 15% of total water consumption. Through various water savings initiatives, total water consumption has also reduced by almost 40% between 2007 and 2010, and a further 4% in 2011.

RecyclingAlex Fraser’s quality recycled products are competi-tive with virgin materials in every sense, but offer the added benefit of reduced environmental impact. For decades, Alex Fraser has pioneered recycling technologies, turning construction and demolition ‘waste’ into new products that supplement or replace the use of virgin materials. A key product offered by Alex Fraser is recycled concrete aggregate for use as road base. Research commissioned by the Alex Fraser Group and led by the Royal Melbourne Institute of Technology found that the carbon impact of recycled concrete is 65% less than a traditional process using freshly quarried material.

200920102011

0.11

0.10

0.09

0.08

0.07

tCO

2-e/

f3Jan Fe

bMar Apr May Jun

eJul

ySep Oct Nov DecAug

RAINWATERMAINS WATER

50,000

100,000

150,000

200,000

2009 2010 2011

Swire Cold Storage Emissions Intensity

Swire Cold Storage Water Use

Kilo

litre

s

Group CO2 Emissions & Sources

OTHERFUELELECTRICITY

50,000

100,000

150,000

2009 2010 2011

t CO

2-e


Alex Fraser won the Queenland Premier ClimateSmart Award for ClimateSmart leadership.

Swire Cold Storage achieved a 6.8% reduction in their energy consumption.

Kalari introduced 10 performance-based vehicles, which, combined, will lead to 4254 fewer trips and 3352 tCO2-e of avoided emissions each year.

Establish energy KPIs where not present in the businesses.

Continue to improve our energy efficiency.

Develop water management plans at sites that do not have them currently in place.

In 2011:

In 2012, we aim to:

Recycled sand made from crushed glass.

2011 saw the successful development of a new recycled product – recycled sand made from crushed glass. Every year in Victoria, at least 30% of the 250,000 tonnes of waste glass curb sidecollections cannot be reintroduced into the glassrecycling process. This percentage has historically been sent to landfill. Alex Fraser is now processing the waste glass into a sand that can be used invarious applications, including pipe layingoperations, once again avoiding the use of virgin materials and diverting waste from landfill.

Nothing says more about a business than its people. At Swire, we have a long tradition of finding and keeping great people who share our values of integrity, humility, endeavour, excellence andcontinuity. In Australia John Swire & Sons Pty Ltd employs over 1,300 people.

Attracting the bestTo take advantage of business opportunities and ensure our businesses grow we must continue to attract, retain and develop the right people. One way of competing well in the employment market is by having a strong employment brand. Just like a company’s product or service brand, the employment brand is shorthand for what the company stands for and what it offers employees. Alex Fraser has crafted its employment brand around “It’s Time to do Good Work” attracting people who are engaged by the idea of large scale recycling and doing something for the planet. Kalari have embarked on their employment brand journey built on “The Kalari Way”, designed to attract people who are engaged by high standards of safety and customer care.

Aligning our people with strategic objectivesIn 2011 our Australian businesses began working with John Swire & Sons Hong Kong’s subsidiary Ethos International to design a performance development system called Swire Talent. This online systemallows managers to work with their peoplethroughout the year to set and monitor performance goals and behaviours. Development of Swire Talent is accompanied by face to face training in setting goals and competencies and conducting performance reviews.

Developing our peopleSwire people have access to world-class managerial and strategic leadership programs. In Australia, Swire has provided management training programmes for first-time leaders at Terrigal in New South Wales and for senior leaders at Aitken Hill near Melbourne, Victoria.

People


Swire’s new performance development system ‘Swire Talent’ allows managers to work with their people throughout the year to set and monitor performance goals and behaviours. This is accompanied by face to face training in setting goals and competencies and conducting performance reviews.

Bob Francis: one of Kalari’s drivers in South Australia.

Internationally, Swire works with INSEAD to deliver two and five-week residential management and finance programs in Singapore and Fontainebleau, France. Each year the Swire group evaluates theperformance and potential of their team leaders,operational leaders and strategic leaders in a grouppeople conference, considering rotations,development nominations and succession planning.


All businesses began implementing the Swire Talent performance development program.

Alex Fraser conducted the first Experiential Learning Activity where front line leaders learn about leadership by solving current business problems.

Kalari held the first graduation ceremony for the participants in the Kalari Management Development Programme.

In 2011:

Kalari will rollout a new web career portal “The Kalari Way” to support the recruitment of drivers.

All businesses will commence rollout of Swire Talent performance development system to over 250 managers across Australia.

Alex Fraser will implement half-day assessment centres for selecting frontline earthmoving equipment operators.

In 2012:

Swire has proven to be a great place to grow for many people. Take for example the story ofPeter Murphy, Managing Director of the Alex Fraser Group:

Late one afternoon in 1995, Peter spotted amobile crusher parked beside a pile of concrete at the Nudgee Landfill in Brisbane. His fascination with the machine triggered his interest in concrete recycling. Peter had worked in civil construction, multi modal transport and for himself and he was struck by what a practical idea concrete recycling seemed to be.

A few months later he was introduced to Alex Fraser and was offered a 16 hour per week “part time” role. It was part time alright, part time sales rep, part time picker, part time crusher operator, part time machine operator, part time allocator. The people were great.

Over the next few years he had a chance to learn about several parts of the business, and in his sparetime completed tertiary qualifications inCommerce and in Operations Management,supported by Alex Fraser. In 2002, he resigned and spent 7 months travelling overseas. During that trip he was offered a role in Melbourne looking after the Alex Fraser transport functions. In 2004 he wasappointed General Manager Recycling Industriesand has taken advantage of developmentopportunities including a range of project work, networking, formal training and travel for trade shows and benchmarking.

In late 2010 he wasappointed Managing Directorof Alex Fraser Group.

The people are still great.

The communities in which we operate provide theresources, infrastructure and markets that support our business. As members of the community, weendeavour to understand the needs of others through dialogue with stakeholders. Ultimately, we want to make a positive contribution, and add value in the way that we run our business.

Managing our impactWhen Kalari started operating triple road trains in the remote area of Ceduna, South Australia, they knew there was a possibility for community concernsregarding large trucks travelling through a small town. From the start, Kalari talked to people in thecommunity to try and understand their concerns. One of the key issues for the community was children not understanding how trucks pose different risks to cars. To help address this, Kalari participated in a Road Safety Programme for the Ceduna area,bringing a triple road train and their driversimulator into schools, educating children aboutroad safety and how to be safe pedestrians. In 2011, over 200 children got the opportunity to experience the simulator and understand what it is like to drive a road train. Educating children on things like the extra distance a truck needs to stop will help everyone to share the road safely.

Working with our NeighboursWhile we have site management plans to minimise the impact from our operations, such as dust and traffic, some of our sites have the potential tonegatively impact surrounding communities through their operations. We believe there should be open communication channels between ourselves and the community.

Community


As members of the community, we endeavour to understand the needs of others through dialogue with stakeholders. Ultimately, we want to make a positive contribution, and add value in the way that we run our business.

Kalari’s Road Safety programme in Ceduna, SA.

That way, if the community is concerned about ouroperations they can tell us, and we can inform them what we are doing about it. Good relationships with local communities benefit all – just ask Nathan Gee, Project Manager for Alex Fraser:


When we were developing our site in Clayton, Victoria, we knew the nearby Heatherton Christian College might have concerns. From the start we talked to them about what we were doing to manage issues such as dust and traffic, and made sure we understood their concerns. They were impressed with the plans we had in place and the relationship has become stronger as a result. They know we want to do the right thing and that they can come to us if they have a problem and we’ll sort things out. Our site manager and the Principal of the college have a great relationship and each year the Grade 5 kids really enjoy coming on a field trip to the site to learn about the importance of recycling and safety. We also run an art competition where they can demonstrate what they learnt from the site visit. It’s great to see that Alex Fraser is viewed as part of the community.

Nathan Gee - Project Manager Clayton site construction

,, We established clear community giving guidelines to promote meaningful relationships with charitable and community organisations.

Alex Fraser worked with the Nudgee Beach Education Centre to support indigenous students revegetate an area of the Boondal wetlands, while doing their Cert IV in Conservation and Land Management.

Kalari restored Hymus House, a local historic landmark located at their new depot in Rockingham, Western Australia.

In 2011:

Establish structured community engagement programmes where our businesses have the potential to have significant impacts on local communities.

Identify and build relationships with suitable partner organisations for our community giving & philanthropy programmes.

In 2012, we aim to:


Sustainable Development Policy

Swire Group Sustainable Development Policy.

We adopt this policy because:• Long-term value creation for our shareholders

depends on the sustainable development of our businesses and the communities in which we operate.

• We wish to excel as corporate citizens.

Our Policy:• Industry leadership: We will work with others to

promote sustainable development in the industries in which we operate.

• In our operations: We will meet or exceed all legal requirements and:

- Be a good steward of the natural resources and biodiversity under our influence and ensure that all potential adverse impacts of our operations on the environment are identified and appropriately managed. - Aim to provide a totally safe working environment and create zero harm to all our employees, contractors and visitors. - Strive to be an employer of choice by providing an environment in which all employees are treated fairly and with respect and can realise their full potential. - Favour suppliers and contractors who promote sustainable development and encourage the responsible use of our products and services by our customers and consumers. - Promote good relationships with the communities of which we are a part and enhance their capabilities while respecting people’s culture and heritage.

Making it happen:• All companies in which the Swire group has a

controlling interest will have action plans for applying this policy in a way which is relevant to their business. We will encourage other companies in which we have an interest as a shareholder or through our supply chain to implement similar policies.

• We will encourage and empower our staff to be proactive on sustainable development matters both at work and in the community.

• We will monitor our performance and report it regularly.

• We will review this policy periodically, having regard in particular to stakeholder dialogues.

John Swire & Sons Pty. Ltd.

10th December, 2007


Data Tables

Economic value generated and distributed by John Swire & Sons Pty Ltd Group*

AU$ 2011** 2010 2009

Revenues 501.4 443.7 410.8

Operating costs 318.0 263.0 250.2

Employee wages & benefits 116.6 118.5 116.0

Payments to providers of capital 15.9 11.8 35.3

Payments to government - gross taxes 29.6 21.2 15.1

Economic value retained 21.1 29.0 6.1

Community investments including charitable donations 0.2 0.2 0.2

Workforce data for John Swire & Sons Pty Ltd Group

Total number of employees 2011 2010 2009

SCSKalariAFGSIS

56554021323

58253120329

61047219328

Group*** 1370 1375 1335

Total number of new employees 2011 2010 2009

SCSKalariAFGSIS

70258863

87231801

109164721

Group 422 401 347

New hires leaving the business † 2011 2010 2009

SCSKalariAFGSIS

361362

1259390

254401

Group 102 111 70

Male / Female ratio (% females) 2011 2010 2009

SCSKalariAFGSIS

26%11%14%0%

29%10%39%0%

19%13%15%0%

Group 14% 20% 15%

* Excludes data from Clyde Agriculture** All data reported relates to calendar years, including financial data

*** Group total also includes Head Office† Defined as new hires who leave the business within 12 months of starting


Safety Performance Data for John Swire & Sons Pty Ltd Group

Lost Time Injuries

2011 2010 2009

Total LTIs LTIFR Days Lost Total LTIs LTIFR Days Lost Total LTIs LTIFR Days Lost

SCSKalariAFGSIS

10810

7.05.42.2

0

35501

00

101620

7.013.15.1

0

52311290

141680

9.614.720.9

0

74859452

0

Group 19 5.6 536 28 9.0 392 38 12.8 1385

Injuries

2011 2010 2009

Total IFR Total IFR Total IFR

SCSKalariAFGSIS

102125510

7288360

11090486

7763344

10358543

7341382

Group 278 82 254 82 218 73

Environmental Performance Data for JSS Pty Ltd Group

Energy & Carbon

2011 2010 2009

SCSKalariAFGSIS

tCO2-e80,20880,65917,8901,216

GJ389,313

1,135,231221,55217,403

tCO2-e85,70179,36015,5231,610

GJ409,661

1,117,008188,37523,030

tCO2-e99,09072,33914,5471,367

GJ446,189

1,017,441190,36619,559

Group 181,239 1,768,616 183,567 1,743,564 188,576 1,678,541

Carbon CO2-e

2011 2010 2009

Electricity Fuel Other Electricity Fuel Other Electricity Fuel Other

SCSKalariAFGSIS

68,9591,8714,714

-

7,84578,4149,5721,216

3,404374

3,604-

75,2881,8094,464

-

8,05477,1347,8151,610

2,359417

5,611-

88,6491,7083,091

-

7,23170,2728,1681,367

3,210360

3,288-

Group 76,809 97,047 7,383 82,934 94,612 6,020 94,681 87,037 6,858

Water KL

2011 2010 2009

Demand Mains Rain Demand Mains Rain Demand Mains Rain

SCSKalariAFGSIS

187,501---

158,38522,070

-1,302

27,656---

199,377---

168,34314,483

--

29,574 ---

224,121---

225,84511,687

--

16,816---

Group † †

† † At this stage, Kalari & AFG do not have measurement systems in place that are sufficient to report water usage in GRI format. Improvements to be made in 2012.


GRI IndicatorsGR3 ref. Pages

Strategy and Analysis1.1 Chairman’s statement (p.1)

Organisational profile2.1 Name (p.3)2.2 Primary brands, products, services (p.3-7)2.3 Operational structure (p.2)2.4 Location of HQ (p.3)2.6 Nature of ownership and legal form (p.3)2.7 Markets served (p.3-7)2.8 Scale of reporting organisation (p.3)2.9 Significant changes during reporting period (i)2.10 Awards received during period (p.5, 12)

Report parameters3.1 Reporting period (i)3.2 Date of most recent report (i)3.3 Reporting cycles (i)3.4 Contact point for questions (p.21)3.5 Process for defining content: materiality, prioritisation, stakeholders (i, p.2)3.6 Boundaries (i)3.7 Limitations on scope or boundary and plans to close gap (i)3.8 Reporting JVs, subs outsourcing etc (i)3.10 Explain effects of any restatements of info provided in earlier reports (n/a)3.11 Significant changed from previous reporting period (n/a)3.12 Table identifying location of Standard Disclosures and indicators (p.21)

Governance, Commitments & Engagement4.1 Governance structure (p.1-3)4.2 Chair & CEO (p.1-3)4.3 Independent/non-exec. members (p.1-3)4.4 Mechanisms for shareholder & employees to provide imput to highest body (p.1-3)4.14 List of stakeholder groups engaged by the organisation (p.1-3)4.15 Identification of stakeholders (p.1-3)

GR3 ref. Pages

Economic performanceEC1 Direct economic value generated and distributed (p.3, 19)

Labour practices and decent work performanceLA2 Total number and rate of employer turnover (p.19)LA7 Rates of injury, occupational disease, and lost days (p.9, 20)

Environmental performance indicatorsEN3 Direct energy consumption by primary energy source (p.20)EN4 Indirect energy consumption by primary source (p.20)EN5 Energy saved due to conservation and efficiency improvements (p.11, 20)EN7 Initiatives to reduce indirect energy consumption and reductions achieved (p.20)EN8 Total water withdrawal by source (p.20)EN16 Total direct and indirect greenhouse gas emissions by weight (p.20)EN18 Initiatives to reduce greenhouse gass emissions and reductions achieved (p.11, 20)

Environmental performance indicatorsSO9 Operations with significant potential or actual negative impacts on local communities (p.16)

We welcome your views on how to improve our reporting.

John Swire & Sons Pty LtdLevel 11 Swire House10 Spring StreetSydney NSW 2000

Tel: (+61) 2 9272 9272Fax: (+61) 2 9231 4927Web: www.swire.com.au

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CLIMATECHANGE INTEGRITY 2011 SUSTAINABILITY REPORT

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