The Group’s keys risks to its future prospects, and measures to mitigate these risks where possible, are outlined in the Managing Director’s Review of Operations in the 2018 Annual Report and comprise the following:
- a significant deterioration in building activity impacting sales growth and margins;
- a significant movement in the Australian dollar impacting the price of imported products leading to changes in market pricing in order to maintain margins and competitiveness;
- unforeseen disruptions impacting product supply from offshore suppliers leading to reputational damage, lower sales and loss of market share;
- security risks around external threats to the digital network, IT systems and data could potentially result in adverse operational, financial and reputational impacts through possible system failures and security / cyber breaches; and
- Workplace health and safety risks could potentially result in physical injury to employees, contractors or others, or damage to the Company’s reputation.
The Board is committed to sustainable practices throughout its operations and continues to work with key stakeholders and communities. The Board recognises that a sustainable business is one that provides a safe, rewarding and diverse environment for its people whilst operating in an environmentally and socially responsible manner. The Board also accept the increasingly important role the Group’s products and superior water solutions play in enabling customers and consumers to conserve and use water more efficiently.
GWA has a strong pedigree and history in developing innovative solutions in water. Sustainability in the area of water solutions has been its mantra for over 35 years. Caroma was the first brand in the world to introduce dual flush technology in 1984 which has subsequently been further developed to enable enhanced water conservation. During FY19, GWA will introduce a consolidated sustainability report to provide shareholders and other stakeholders with detailed information on its on-going approach to sustainability.
The Board is committed to reducing energy, carbon emissions, water and waste across the GWA Group operations. GWA is a low emissions intensity entity but it continues to voluntarily report its carbon emissions on the GWA website www.gwagroup.com.au under Carbon Reporting. For FY18 total carbon emissions from GWA’s controlled facilities were approximately 5,800 tonnes of carbon dioxide equivalent (CO2e), representing a 15 per cent reduction on the prior year. This reduction is due to a combination of factors including site closures and the implementation of energy efficiency measures across the Group including the recycling of water and installation of solar panels.
The Board is committed to continuous improvement in workplace health and safety performance through comprehensive safety systems and processes, communication with employees and increased diligence in identifying and removing safety risks. The Group aims to provide a safe and healthy workplace with the objective of an injury free work environment. For further information on workplace health and safety, please refer to the Group’s website at www.gwagroup.com.au under Health and Safety.
The Board is committed to providing stakeholders with a comprehensive understanding of the Group’s tax activities, and in FY17 signed up to the Board of Taxation’s Voluntary Tax Transparency Code (‘Code’). The Code is designed to encourage greater transparency within the corporate sector and enhance the community’s understanding of the corporate sector’s compliance with Australian tax laws. The Group follows the recommendations outlined in the Code in preparing the Group’s Tax Transparency Report.
Refer to the Group’s website at www.gwagroup.com.au under Corporate Governance for a copy of the Board Tax Policy and Tax Transparency Reporting.