Annual - Sydney Water

1 Annual Report2015 16 About this reportThis is Sydney Water s full Annual report for 1 July 2015 to 30 June 2016. It covers financial, social and environmental performance, statutory information, financial statements and other regulatory full report and a 30 page summary report are available on our website: If you have any comments about the Annual report 2015 16, please email or write to: Sydney WaterAnnual report Project ManagerCorporate Public AffairsPO Box 399 PARRAMATTA NSW 2124 Letter to Shareholder MinistersDear Treasurer and Minister PerrottetReport on performance for the year ended 30 June 2016We are pleased to submit the Annual report of Sydney Water Corporation ( Sydney Water ) for the year ended 30 June 2016 for presentation to Parliament.

2 The full report includes financial statements, and we publish a 30 page summary on our Annual report 2015 16 was prepared according to section 24A of the State Owned Corporations Act 1989 and the Annual Reports (Statutory Bodies) Act 1984. The financial statements for 2015 16, which form part of the Annual report 2015 16, were certified by the Auditor-General of New South sincerely, Bruce Morgan | Chairman Kevin Young | Managing Director BComm, FCA, FAICD BEng (Hons), MBA, FIE Aust, CPENG, FAICD1 Sydney Water Annual report 2015 16 Sydney Water Annual report 2015 2016 1 ContentsAbout this report 1 Letter to Shareholder Ministers 1 Contents 21.

3 Overview 5 About Sydney Water 6 Our vision 6 Our stakeholders 7A snapshot of our business 9 Our operations 10 The year in review 14 Our performance 17 This year s highlights 17 Our awards and recognition 22 Our Corporate Strategy 23 Strategic success measures: Our performance 25 Balanced sustainability scorecard 322. Corporate governance 35 Our Corporate Governance Framework 36 Sydney Water Board Directors 39 Board meetings 48 Organisational chart 493. Customer at the heart 51 Our sustainability performance 52 Our service guarantee 58 Social programs 60 Multicultural policies and services program 62 Community investments 64 Privacy 65 Communicating with our customers 664.

4 World class performance 67 Our sustainability performance 68 Our ecological footprint 77 Risk management and performance 78 Legal events 80 Capital expenditure 81 Research and development 85 Heritage delegation actions 91 Statement on the implementation of our special objectives 93 Threatened Species Conservation Act 1995 1042 Sydney Water Annual report 2015 165. High performance culture 107 Our sustainability performance 108 Workplace health and safety 112 Executive performance and remuneration 115 Workforce diversity 116 Staff and industrial relations 119 Consultant engagements 119 Overseas travel 1206.

5 Financial statements 123 Financial performance summary 124 Pricing 129 Auditor-General s statutory audit report 134 Financial statements for the year ended 30 June 2016 1367. Appendixes 205 Appendix 1: Exemptions from reporting provisions 206 Appendix 2: Government Information (Public Access) (GIPA) 207 Appendix 3: Public Interest Disclosures 211 Appendix 4: External production costs 211 Glossary 212 Statutory information index 218 Index of figures, maps and tables 2212 Sydney Water Annual report 2015 16 Sydney Water Annual report 2015 2016 Sydney WaterAt Sydney Water , we exist for our customers.

6 We provide safe, refreshing drinking Water to almost five million people across Sydney , the Blue Mountains and the Illawarra. We look after wastewater and some stormwater services to protect the health of our rivers and beaches. As Australia s largest Water and wastewater service provider, we re proud to play a key role in Sydneysiders continuing enjoyment of this great city and iconic outdoor way of need to be both responsible for and responsive to our community to ensure all our customers can continue to enjoy the benefits of safe drinking Water , and healthy rivers and beaches. This will help us meet our challenges now and as our city grows in the future.

7 Our vision Our vision is to be the lifestream of Sydney for generations to come. The services we provide help sustain and grow new life. We ve been supplying high quality services to our customers for more than 128 years and we re passionate about contributing to the lifestyle of Sydney now and in the future. We want to provide more and better choices for customers, while ensuring our essential services remain fair for all. It s our mission to be world class, delivering essential services that our customers love, in our great city. To achieve this, we re focusing on three objectives that make up our Corporate Strategy.

8 Customer at the heartWe provide high quality Water and wastewater services to more than million people every day. We re changing the way we do things to ensure the voice of customers drives our business. World class performanceWe want to deliver more and better services for customers, underpinned by a well-organised, efficient business. To do this, we re investing in the right tools and using innovative performance cultureOur focus on culture defines our values and guides how we work and interact with each other, our customers and the community. Our people bring a diverse range of thought, experience and knowledge to Sydney Water , and more than ever, they re on board and connected to bringing our strategy to are a State Owned Corporation, wholly owned by the New South Wales Government.

9 Our performance targets and service standards are set out in our Operating Licence 2015 2020, which is governed by the Independent Pricing and Regulatory Tribunal (IPART).We operate under the Sydney Water Act 1994, which assigns our principle objectives to: protect public health protect the environment be a successful Overview | Sydney Water Annual report 2015 16| Sydney Water Annual report 2015 Our stakeholdersWe work with a range of stakeholders across various sectors representing government, community and industry groups. We are committed to involving stakeholders in our decision-making through effective engagement and relationship building.

10 Collaborating with our stakeholders helps us align our decision-making with the needs and expectations of the communities we operate within. We support the health and growth of our strategic long-term relationships through face-to-face interaction, communication, negotiation, collaborative action, and shared thinking and apply the International Association for Public Participation (IAP2) standard for engagement. The IAP2 core values set the industry benchmark for best-practice engagement. Our engagement objectives to guide, build and strengthen relationships reflect Sydney Water s signature behaviours:1 Focus on solutionsEngagement is a two-way process.