Metrowater Corporate Social Responsibility Report 2009

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    Corporate SocialResponsibility Report

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    Introduction

    Corporate Social Responsibility Report March 2009 I 01

    But of course theres much more to say. For a start,the simple ability to fill a glass with clean water cannotbe taken for granted in any society. Nor can the abilityto safely flush a toilet, or drain a sink. These basicservices are built on careful planning and investmentover many years. Because many generations ofAucklanders have been willing to commit to thesethings, each year Metrowater is able to:

    for treatment

    These are the nuts and bolts of our services toyou. This document, however, is concerned notsimply with what this business does, but how ouractivities impact on the community, and the stepswe are taking to ensure those impacts are positive.We have statutory obligations under the LocalGovernment Act 2002 which say we must:

    responsibility with regard to the interestsof the community in which we operate sound business practice

    ON THE FACE OF IT OURS IS A SIMPLE BUSINESS. WE DELIVER CLEAN WATER TO CUSTOMERS ANDSAFELY REMOVE WASTEWATER. THATS IT.

    We deliver 46 billion litres water to over

    440,000 consumers

    A simple business

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    Corporate Social Responsibility Report March 2009 I 02

    We also recognisethat the job is

    never complete.

    In addition, the issues that you have toldus are important to you include:

    our services, regardless of their circumstances and upgrades so that future generations donot carry an unfair burden in this regard

    These things matter to us and this document

    outlines our activities and achievements inrelation to them. Some of the achievementswe are most proud of include:

    affordability targets affordable by keeping cost increasesto less than inflation taken to repair them entering our waterways

    that we learn from every potential incidentand avoid incidents becoming accidents and partner companies so that our focuson improving customer service performanceand public safety is shared (medium/large category) in the nationwide

    the support and development opportunitieswe provide our engineering staff

    We also recognise that the job is nevercomplete. We have set ourselves ambitiousgoals for the future, in some cases buildingon work already done, and in other caseslaunching entirely new initiatives. We outlinethese in the section titled Future.

    When a business reports on its achievements,its easy to forget that it took committedpeople to create and deliver on those things.Metrowater regularly calls on its employeesto take on bigger and bolder challenges in

    service of our customers and they consistentlymeet the challenge. Without them this report wouldnot be possible, and I want to personally thank andacknowledge them.

    I invite you to read this document as areport on work undertaken on behalfof the people of Auckland City.

    RegardsJim Bentley,

    Introduction

    A simple business

    John Robertson and Associates www.jra.co.nz

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    OUR COMMUNITYMetrowater services approximately 142,000 homes andbusinesses across Auckland City, directly reaching 440,000 people. We are mindful of the potential impact of our actions and arecommitted to making a positive contribution to the community.

    Our community

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    Serving CustomersWe conduct regular surveys with a wide crosssection of customers to ensure we understandhow they experience Metrowater. We use thatknowledge to improve our delivery in the areasthat matter to customers. For example, we knowthat many of our customers want good informationon how to reduce their water consumption.

    customer newsletter watermatters and on our website and we will continue to provide this informationas well as develop more educational materials forconsumers. This includes a water conservationprogramme for schools that we started in

    with three organisations including a local highschool to trial a water conservation audit servicethat monitors water use and highlights areas totarget in regard to excessive use or leakage.

    Research also tells us that customers expectMetrowater to operate efficiently and keepprice increases to a minimum. Were pleased

    increase in operating costs to just 0.7% (wellbelow inflation) while improving customer serviceand bringing leakage down. In the first half of

    first half of the previous year. A significant factorin this result has been efficiency improvementsin costs of important maintenance tasks, such as:

    by 22%

    WHAT WERE DOING

    the average duration of

    water supplyinterruptions has been

    reduced by 20%.

    Our community

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    Communicating with our customers also helpsus understand what is important to them and whatlevel of service they expect. To ensure we learnfrom all those who want to communicate with uswe operate an interpretation service for those who

    service for those with a hearing disability.

    We are improving the way we handle customercomplaints to make the process easier forcustomers and to enable us to learn from ourmistakes. These improvements were identified

    Ombudsman of Victoria, Australia to reviewour complaints processes.

    Water Ombudsman (Victoria) tocarry out an audit of its currentcomplaints handling capabilitiesand training of its customerfacing staff. By taking these stepsMetrowater has shown that it is

    serious about aiming for the mosteffective customer service itcan provide.Fiona McLeod - Energy andWater Ombudsman (Victoria)

    Our community

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    Fresh thinking for better serviceIn July 2007 Metrowater entered a new agreementwith our major supplier of network maintenanceservices. The agreement contains incentives forgood cost control and customer service. This hasenabled us to achieve better service performancewhile keeping costs under control.

    Through better use of technology and smarterthinking, we have reduced the rate of servicedisruptions and reduced our response andrepair times when service disruptions do occur.

    A great example of working smarter withtechnology is our use of air scouring for watermain cleaning in place of traditional water flushing.As a result, we are achieving our maintenanceprogramme targets with lower water losses andfewer disruptions to customers. Another innovationis the use of pipe clamps to allow live repairs onfully functioning water mains, rather than shuttingdown water mains while we work. By doing this,not only have we have reduced inconvenience tocustomers but also decreased the discoloration ofwater which can happen after an interruption.

    The result has been a year on year reduction

    Our community

    Average duration of unplanned water interruptions

    2.0

    2.2

    2.4

    2.6

    2.8

    2007/082006/072005/06

    H o u r s

    Water quality comp /1000 properties/month in

    0

    2

    4

    5

    6

    7

    2007/08006/07005/06

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    Engaging with the communityWe often undertake initiatives to improveAucklanders wider environment. For example,the Meola Creek catchment has suffered for sometime from flooding and polluted water from thecombined stormwater and wastewater network.Although we are working with Watercare Servicesand Auckland City Council to find the right longterm solution, a short term solution was needed sothat people could safely use this popular, but flood

    prone, recreational area. To achieve this, Metrowaterin conjunction with Watercare Services and AucklandCity Council, built a raised boardwalk by Meola

    neighbouring school, can now use the area safely.

    One of our values is Growth, and this meanswe provide opportunities for staff to raise theirawareness of organisations that work to benefitthe community. At our monthly Feedback events,our employees invite a charity such as Red Cross,

    Cancer Society to make a presentation to staff,after which they are presented with any voluntarydonations or monies raised.

    is auctioned off to staff with the proceeds goingto charity. Last year our IT team rebuilt a stack of

    will go this year to Waiuku College.

    Our community

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    Our community I CASE STUDY

    CASE STUDY

    Getting into the customers world

    water is affordable, we acknowledge that someMetrowater customers struggle to pay their bill.

    Community Trust as an independent body tosupport customers who find themselves in thisposition. The Trusts greatest value is its abilityto engage with these customers and offerassistance, mainly through:

    and thereby reduce their bill withoutcompromising their health or comfort, suchas through the use of water conservationappliances and devices.

    are charged only for the water they use if theyare on a shared meter.

    In the past year, the Trust has assisted people

    with disabilities, families struggling financially,and those in need.

    financial outlay such as for repairing leaks andreplacing hot water cylinders, other less costlywork makes just as much of a difference. Forexample, a 2007 trial of long lever tap toolsfor people with arthritis proved so successful

    organisations. In another case, plumbing repairsand a new water meter reduced an elderlywomans water bill.

    The Trust works with many other communitygroups, health and budgeting services toidentify those in need and the most effectiveways in which to help.

    To contact the Metrowater Community Trust, call

    CASE STUDY

    A Helping Hand

    from Metrowater, theres a story behind how itgot to them.

    an editorial in the local community newspaperseeking businesses willing to offer work

    experience to students with learning difficulties. Corporate Social Responsibility Manager, sawthe editorial and immediately picked up thephone. Within a few weeks three students,

    Redman, were working with the Metrowatercustomer services team learning how to packand despatch customer mailings.

    2009 has seen the third group of students join the Metrowater team each Tuesday andtwo of their colleagues from the first groupbegin studying at AUT. Raewyn Fairley,Lynfield College Gateway Coordinator, isclear about the benefits. It gives the studentsan opportunity to see what its like outsidethe classroom and the grounding to workindependently in the future. Theyre expectedto dress appropriately, work in a team, and

    we see a noticeable lift in their maturity.

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    Section 2

    ENVIRONMENT

    environment, is a key priority for Metrowater.

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    Water efficiency

    water resources as the entire Australian continent,

    Nonetheless, it is important that we treat thisresource with respect and do all we can to delaythe need to build infrastructure for new sources ofwater for Aucklands population.

    Water leakage is a major contributor to waterinefficiency. We have an ambitious programme inplace to reduce water losses, as reported in theadjacent case study. Since January 2007 we have

    they become aware of a leak on their property. Ifthe customer repairs the leak within two weeks, werefund wastewater charges associated with the leakand limit water charges to four times the average

    was refunded to nearly 2000 customers throughthis initiative.

    the costs, benefits and impacts on customers ofoperating the network at lower pressures. Onepotential benefit is reduced water losses.

    Metrowater is also participating in a regional

    water consumption across Auckland by 2020.One measure we are exploring is the use of smartmeters for schools and large users. The metersmeasure consumption in real time and deliver datavia mobile technology. This enables high-volumecustomers to identify leaks and unusual waterusage immediately. Other measures include a waterconservation and audit service for industry, and arange of information for residential customers tohelp them take charge of how much water they use

    WHAT WERE DOING

    Section 2

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    Reducing our environmental footprint

    footprint. Initial work suggests our annual

    CO2e, mostly methane and nitrous oxide fromwastewater management, and electricity to runpump stations. The next step, once researchis complete, is to develop meaningful carbonemission targets. In the meantime, we areinvestigating more efficient pumping technologyto reduce power consumption.

    Contractors also play a big role in our business,and we work with them closely on environmental

    policy ensures contractors develop effective

    projects, and we support them in implementingthose plans mainly through regular staff trainingand on-site visits. Our no blame policy hasincreased the reporting of environmental incidentsand our understanding of how to reduce them. AllMetrowater managers conduct audits of contractorsand work with them when shortfalls are identified.

    Metrowater recycles toner cartridges and uses

    with environmentally friendly products whereverpossible. In 2009 we are taking another step in thisarea by launching an intranet-based tool to enablestaff to calculate and reduce their personalcarbon footprint.

    In the end, our society willbe defined not only by

    what we create, but by what we refuse

    to destroy. John C. Sawhill

    Section 2

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    Cleaner waterwaysOne of our major goals is to reduce the volumeof polluted water discharging from the combined

    this through our sewer separation project, sewercleaning and education about the damage causedby fats and grease being poured down drains. Work

    stormwater and wastewater pipe in the following

    Watercare Services and Auckland City Council todetermine the best solutions for areas where sewerseparation may not deliver the desired results.

    Section 2

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    CASE STUDY

    Driving Down Leakage

    network suffers some measure of water loss

    through leakage.

    reached nearly 9 million cubic metres per year

    unacceptable and we took steps to dramaticallyreduce that figure. Over the past 2 years we

    million cubic metres per year.

    The key was an intensified programme on leakdetection and repair. The main tool is acousticdetection, where a sensitive listening device(similar to a stethoscope) placed on the groundcan pick up water leaks based on the kind ofsound it hears. When a leak is detected, it is

    the Metrowater network. This resulted in annual

    were to pour that water into Olympic swimmingpools placed end to end, they would stretchover 2km!

    As well as being detected by Metrowaters ownefforts, leaks are often reported by customersand members of the community. Reported leaksat meters and service connections for the half

    Over 70% of leaks are repaired within three

    What we dotoday, rightnow, will havean accumulatedeffect on all ourtomorrows.Alexandra Stoddard

    Section 2

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    Health and Safety

    priority. In the last 2 years we have made afundamental shift in our approach, beyond merecompliance toward a culture where health andsafety is simply how we do things. For more aboutthis, and the results achieved, see the case studyBeyond Compliance.

    ensure we actively identify and manage hazardsarising from physical or organisational change.This was put to good effect when we undertooka major refurbishment of the Metrowater building.

    people remained informed, disruption to work wasminimised and no time was lost due to injury.

    audits of our office environment and out on siteby staff and executive management, daily focuson safety by teams working in public places andreviews with a focus on learning have resulted in amarked decrease in the number and duration of losttime injuries since 2007.

    We have also implemented a new wellnessprogramme, aimed at promoting healthy lifestylesand life choices for employees and their families.

    WHAT WERE DOING

    Workplace

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    Employee development

    both motivating and one of the most cost effectiveways to reduce staff turnover (and its associatedcosts such as lost knowledge) and create a workenvironment that supports customers.

    We encourage growth of our people at every stageof their career. For example, a recently developedprogramme allows young graduates to work on avariety of projects throughout the company in orderto broaden their experience and develop a great

    feel for the full scope of Metrowaters business. Thegraduates have the opportunity to work in a rangeof departments and focus on business disciplinesbeyond their university learning.

    The Metrowater Cadetship programme provides

    while on the job. Staff commit to performing theirrole while also undertaking study, and it is thereforean option chosen only by the highly motivated.

    our training systems for engineering staff, and

    This means we are recognised as having robustsystems that support all our engineers in theircareer development. Those systems include study

    reviews, and secondment opportunities (particularly

    construction and consultant partners).

    We encouragegrowth of our people

    at every stageof their career.

    Workplace

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    Respect for othersAccountability and demonstrating respect go handin hand. All managers at Metrowater are expectedto create an environment in which employees can

    that is clear and enables learning and growth.This expectation is reinforced at regular eventswhereby the managers and team leaders have

    and other Senior managers. This principle isfurther cascaded through our corporate intranet

    held that provides opportunities for staff to presentprogress and results on company performance

    is chosen by the staff based on nominations forcolleagues who are positive, pro-active, haveperformed well and model our values.

    Those in leadership or management roles receive

    people skills and communications training to helpthem support, inform and inspire the teams theylead. In the last two years twenty of our managershave completed Leadership and Management

    from across the business attended a recent

    leading mediators, with the aim of improving theway in which we deal with customer concerns.

    to support and encourage staff in reaching their full

    potential in line with the companys objectives.Its important that new staff know theyre welcome.Our induction process is designed to provide

    with, our company values, work processes, theimportance we place on the health and safety ofall staff, contractors and the public, and any otherinformation they need to hit the ground running.

    Workplace

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    CASE STUDY

    Becoming a great place to workIn the last two years, the environment atMetrowater has changed to one whereaccountability and respect drive performance.This has introduced a faster pace of work,changes in structure, and new ways ofrecognising and rewarding staff.

    You might think that with a focus onperformance staff morale would suffer. Butyoud be wrong! Last year, in the nationwideJRA2 is based entirely on confidential staff

    most improved workplace in the medium/largecategory.

    Whats more, in eight out of ten categories,Metrowater staff rated the companysperformance as having improved by at least

    The highest rated scores were placedagainst such factors as I know how my workcontributes to the success of this organisationand The person I report to supports andencourages me in my job.

    And the attributes that had the greatest shift inimprovement included the following:

    expects high performance from its people this organisation and its activities

    behaves in a way that is consistent with thevalues of this organisation

    Winning the JRA award benefits not onlyMetrowater and its staff, but also our customers.We now find it easier to attract and retain thebest staff, which keeps our recruitment costsdown. In addition, surveys such as this are apowerful tool for identifying areas of strengthand weakness, and that provides a startingpoint for even greater improvements.

    A pat on theback is only afew vertebraeremoved from a

    kick in the pants,but is milesahead in results.Ella Wheeler Wilcox

    Workplace I CASE STUDY

    2 John Robertson and Associates www.JRA.co.nzCorporate Social Responsibility Report March 2009 I 18

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    CASE STUDY

    Beyond compliance.It may seem odd to celebrate an increase in thenumber of near hits reported by Metrowaterstaff and contractors. Yet that is exactly what weare doing and for a very sound reason.

    consciously moved from a compliance culture to

    one in which much greater emphasis is placedon proactive safety and prevention in order tominimise the number of accidents and injury toour people and members of the public.

    This shift has produced excellent results. A keycontributor has been the active reporting ofnear hits and accidents so that we can reviewand learn from them. Coupled with a no blamepolicy, this allows people to report near hits andminor incidents without fear of repercussions.

    since then a great result while the number ofaccidents has reduced.

    We have also:

    materials for staff and contractors. Usingsimple language, they demonstrate bestpractice around site management to minimiserisk to staff and the public. programme for staff and contractors. Beforeany project begins, the lead contractor

    statistics and details on near hits, lost time

    care. Metrowater staff undertake contractor audits.If faults are found, we provide appropriateeducation. contractor partners. The development wasbased on comments from contractors, whoare keen to share their ideas and practices inthis area.

    Always treatyour employeesexactly as youwant them to

    treat your bestcustomers.Stephen R. Covey

    doing work for Metrowater is fully versed inbest practice safety measures.

    aimed at promoting healthy lifestyles foremployees.

    Results: (LTIFR)

    (Note:

    Workplace I CASE STUDY

    An event which in different circumstances may have caused an accident, illness or injury.

    injuries per million hours workedCorporate Social Responsibility Report March 2009 I 19

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    KEY ACHIEVEMENTS

    Our Community increases keep the average household bill toless than 2%.

    The average annual Metrowater bill for a

    and Metrowaters 2% Statement of Intent target.We however recognize that averages do not tellthe whole story and we are continuing to work onways to address the issues of financial hardshipand affordability.

    efficiency improvements

    - Replacing a domestic meter: average cost

    - Repairing leaks at a customer connection:

    Environment wastewater pipe which will help to reduce theamount of polluted water discharging into theenvironment.

    Metrowater network had been reduced by more

    nearly 2,000 households as part of the leakremission programme aimed at encouragingcustomers to repair leaks.

    Workplace

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    THE FUTUREWe have ambitious plans on behalf of the community we serve.Our major goals are to ensure our performance meets the expectationsof our customers and to manage the networks in a way that provides thegreatest financial and environmental benefit to Aucklanders now and inthe future.

    The Future

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    EnvironmentMetrowater has a major programme to reduce the

    through sewer separation and other related worksprogrammes. One key goal is to reduce overflow

    currently on track to achieve this. Our plan includes:

    wastewater infrastructure

    network to provide for growth and development

    through improved operations and also viacapital solutions

    While these projects form the backbone of ourplanned environmental programme, we also havea range of smaller projects about to start. For

    example, the Martyn Wilson field upgrade project

    will see Metrowater (on behalf of Auckland City)return a degraded stream to a natural wetland areawith boardwalks and educational signage. We arealso working with the Friends of Oakley Creek toundertake weed control and plant on a sectionof this significant Auckland waterway to reduceerosion and improve the streams ecology.

    Back at the office, were developing a dedicatedsection of the Metrowater website for children andtheir teachers. As well as being rich in informationabout water and water conservation, it will alsohave multiple links to other websites and a host ofdownloadable resources. This initiative goes hand

    children about where their water comes from andhow precious it is, and to show them how they canconserve both water and their environment.

    WHATS IN THE PIPELINE?

    The Future

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    Customer service

    of the global economy, we recognise the need tobe more sensitive to customers circumstances. Weare developing an affordability programme thathelps customers in hardship through an effectiveassessment, assistance and management process,coupled with improving ways of handling ofcustomer debt and working with customers whocannot afford to pay their water charges.

    We also recognise that even with the best will in

    the world, disagreements and misunderstandingbetween a business and its customers can arise.Working from a good platform, we are committedto further improvements in our customer-focusedcomplaint handling process to make it even moreefficient, transparent, more readily understood anddeliver better results for everyone.

    Building the future

    to have the scientists it needs in the future, wemust encourage more students to choose scienceor engineering as a career. The Futureintech

    staff visit high schools to talk about careers inscience and engineering. It also provides us withan opportunity to engage with schools about waterconservation and environmental issues.

    We are aware that, following the recent report of

    The Royal Commission on Auckland Governance,Metrowater will change. We support that changeand our focus throughout the transition will be onensuring that Aucklanders continue to receive agreat service and world class water.

    The Future

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    CASE STUDY

    Saving millions.

    $2 million a year.

    The key word is potential. Understanding the

    as you might think.

    meter, making it difficult to identify whetherspecific households are behind the higherusage and, if so, which households they are.The second challenge is understanding whether

    the extra usage is the result of larger families(more people will obviously need more water), alack of understanding about water conservationmethods, or simple maintenance issues such asleaking taps.

    working together to get to grips with this issue.

    whose operations team is monitoring usagebetween the meter and individual homes.Based on what that information reveals, weplan to develop appropriate strategies tohelp families reduce their water usage without

    Time will tell what savings are possible.Whether they are large or small, everyone couldbenefit: the taxpayer through a reduced water

    better maintained homes, and all Aucklandersthrough a heightened awareness of the value and simplicity of water conservation.

    As for the

    future, yourtask is not toforesee it, butto enable it. Antoine de Saint-Exupery, author

    The Future