C17.41 Sustainability and performance measurement: energy supplier LO17.3 Origin Energy is an integrated energy company, involved in gas exploration and production, power generation 17.10 and energy retailing. The company operates Australia's largest power generation portfolio, supplying 13 per cent 17.11 of power generation capacity to the Australian market. Origin supplies electricity to more than 4.3 million customers throughout Australia. Below you will find a chart of some of Origin Energy's sustainability objectives and strategies, which was part of the 2007-12 five-year plan. Note that current owned and contracted capacity is about 15% of the National Electricity Market and is prone to change, as are customer numbers. Required: 1. Identify the key stakeholders and, for each major group of stakeholders, explain how these strategies were likely to meet their needs. 2. For each strategy: (a) Is there a cause and effect link between the objective and the strategy? Explain your answer. b) Suggest lag and lead indicators that could be used to measure performance. 3. Now turn your thoughts to the balanced scorecard. Work from each of the strategies in the diagram to suggest performance measures for each of the four balanced scorecard perspectives: financial, customer, internal business process, and learning and growth. Remember that there should be a cause and effect relationship between strategies and measures. 4. Given these strategies, is there any need to add a fifth dimension to the balanced scorecard? If so, which particular strategies could be included in this fifth dimension? STRATEGIES STRATEGIES ECONOMIC . Be recognised as the leading provider . Provide shareholder returns in ENVIRONMENT the top third of comparable OBJECTIVE OBJECTIVE of green energy products. companies. To provide To reduce the . 1 sustainable returns greenhouse gas Increase our sales of low carbon to Origin's key intensity of our intensity products to 10 per cent of STRATEGIES our total supply chain greenhouse gas economic customers' energy SOCIAL emissions by 2012. . Eliminate barriers to OBJECTIVE stakeholders. consumption. employment, development and workplace opportunities so To provide and maintain a satisfying that our workforce attracts and and rewarding work INVESTORS represents diversity from the communities in which we environment for STRATEGIES all employees. SOCIAL operate. Proactively resolve customer OBJECTIVE TOMERS complaints. Reduce To eliminate or manage Ombudsman complaints by hazards and practices in OBJECTIVE 30 per cent. our business that could To maintain STRATEGIES cause accident, injury or EMPLOYEES community support Achieve a Total Recordable O illness to people, damage and goodwill for the STRATEGIES Incident Frequency Rate to property or unacceptable company's activities. (TRIFR) of 4. pacts on the Actively consult with the environment. community at all locations where Origin has a material STRATEGIES impact. Embed environmental leadership COMMUNITIES SOCIA in all training and decision- making processes. OBJECTIVE To reduce the greenhouse ENVIRONMENT gas intensity of our energy OBJECTIVE STRATEGIES production and distribution To take all feasible steps Reduce the greenhouse gas emissions and non-producing assets. to eliminate or minimise intensity of our electricity supply chain any adverse impact that to 10 per cent less than the National our activities have on Electricity Market by 2020. the environment. STRATEGIES . Reduce the greenhouse gas emissions of our gas production by 15 per cent by 2012. ENVIRONMENT Identify opportunities for the reduction and reuse of waste. Source: Reproduced with permission of Origin Energy Ltd