SuStainability RepoRt 2012Thiess published its first Sustainability

Report in 2002/03. Since then, it has

been published annually with this

report covering a 12 month period from

1January31 December 2012, bringing us

into line with the end-of-year reporting

system set down by our parent Company

Leighton Holdings Limited. To preserve

resources, we encourage our readers to

access this report via our website at

www.thiess.com

Your feedback is encouraged and can be

sent to feedback@thiess.com.au

Managing Directors Message 4

Performance Summary 10

People 12

Safety 22

Environment 32

Community 50

Performance 60

Governance 64

GRI Index 68

Directory 70

ContentS

Thiess sustainability framework

guides, governs and strengthens

our capacity to negotiate these

challenges and opportunities.

We take a holistic view of

sustainability. It includes our people,

everyones safety, the environment,

our communities and our financial

performance to drive long-term value.

These five areas are interdependent

each able to influence Thiess business

today and our legacy tomorrow.

Continuous improvement and ongoing

investment ensure Thiess achieves

step changes in our daily practices to

realise a more sustainable future.

PeoPle

Our Employee Value Proposition defines

the rewards, opportunities, culture

and expertise which ensure Thiess

continues to attract and retain the

right people in the right roles. We are

building on our existing work, such as our

leadership development programs, while

implementing new initiatives, such as our

Reconciliation Action Plan. Together, they

provide tangible benefits that support

our long-term people agenda and

encourage a diverse and inclusive culture.

SafeTy

We are working at every level of

our business to drive a safety-first

culture. Im particularly proud of the

positive outcomes from our inaugural

Safety Summit, which connected

150 senior leaders of Thiess with our

partners and clients. We recognise

that safety leadership is critical.

Leading by example, every manager

across Thiess must step up when it

comes to monitoring and controlling

our safety performance. The effort

is paying dividends with Thiess

achieving its lowest Recordable

Injury Frequency Rate (RIFR) ever.

environmenT

Our projects and offices provide

opportunities for Thiess to contribute

to best-practice environmental

management. We are now collecting

company-wide data on resource use

and providing our business units

with new tools to improve results

on the ground. We are embedding

sustainability workshops in our tender

processes so we can incorporate

environmental best-practice at the

earliest stages of a project. Our green

buildings, such as King George Central,

continue to set industry benchmarks

in environmental leadership.

Leadership in todays business climate demands flexibility. The right policies, priorities and practices enable effective management of competing interests, whether its work/life balance at the individual level, or collaboration versus competition at the industry level.

bRuCe MunRo

4

CommuniTy

From cities to regional and remote

towns, the communities in which we

work are unique. Our team develops

tailored strategies to maximise

employment opportunities and

proactively support local community

groups, while minimising the negative

impact of our activities. In 2012 alone,

we created thousands of local jobs

and our people, project teams and

company contributed more than

$900,000 in donations, sponsorships

and community grants nationally.

finanCial PerformanCe

We set an ambitious goal to return

to profitability in 2012 which we

achieved, closing out the year with

a turnover of $7.5 billion, $22 billion

work-in-hand and $455 million profit

before tax. We focused on disciplined

and controlled growth, strict risk

management, core competencies

and a targeted market strategy. This

bolstered our capacity to respond to

market opportunities with stronger

operational rigour, delivering value for

shareholders and a platform for growth.

In 2012, we launched a new vision

Creating a brighter future, together

and this complements our values

of trust, innovation, passion and

excellence. These values underpin

our sustainability ethos and the

pursuit of industry-leadership across

our multi-disciplinary business.

I believe our commitment to investing in

sustainability will see Thiess contribute to

positive transformation of our industries,

our people and our communities.

5

as a leading construction, mining and services contractor,

Thiessexpert team delivers certainty and excellence through

innovation and partnerships. operating across australia, indonesia,

india and new Zealand, we are committed to achievingsustainable

and profitable growth, delivering better outcomes for our clients

and creating valuable careeropportunities for our people.

ConSTruCTion

We have established a reputation for delivering high-quality, large

scale and technically-complex infrastructure projects. Our capabilities

span highways and railways; airports, dams and ports; hospitals and

commercial buildings; through to mine and energyinfrastructure.

mininG

As a world-renowned mining contractor, we offer specialist expertise

across all stages of mining, including mine planning and engineering,

operations and maintenance, and rehabilitation and remediation.

Our operations are supported by one of the largest mining fleets

inthe world, with a replacement value of more than $3 billion.

ServiCeS

For more than 25 years, we have provided operations, maintenance,

facilities and asset management services to industrial and

commercial clients and government agencies across the water,

energy, telecommunications, infrastructure and remediation sectors.

Our asset management solutions optimise service reliability and

leverage world-class technologies to deliver greater efficiencies

andimprove asset value.

Who WE arE

6

Hobart

inDia neW ZealanD

new Delhi

Kolkata

inDoneSia

Balikpapan

Jakarta

auckland

Wellington

Christchurch

auSTralia

Darwin

Perth

adelaideCanberra

melbourne

Sydney

Brisbane

mackay

Cairns

119 ProJeCTS across four countries

7

aLMoST 20,000 emPloyeeS

79 CoNSTrUCTIoN ProJeCTS

66% oF WaSTE reCyCleD

LoWEST EVEr inJury frequenCy raTe

23 SErVICES ConTraCTS

rECoNCILIaTIoN aCTion Plan launCHeD

$7.5 BILLIoN Turnover

17 MINING ProJeCTS

$260,000+ DonaTeD To CHariTieS

8

Thiess pursues the HiGHeSTSTanDarDS of exCellenCe. This provides our clients with superior results and ourpeople with opportunities to extend their skills.

for more on aWarDS, refer To PaGe 66

ConSTruCTion SKillS

queenSlanD (CSq)

exCellenCe aWarD

Construction Professional of the

Year Senior Project Engineer

Damon McLean

GrounD enGineerinG

aWarD for TeCHniCal

exCellenCe

Airport Link Projects

Toombul jacked box operation

enGineerinG

exCellenCe aWarD

Toowoomba Range rail recovery

works following the devastating

2011 Queensland floods

Crane inDuSTry

CounCil of auSTralia

lifT aWarD

The VEC Thiess Joint Venture,

Category A Lift (over 130 tonnes)

queenSlanD

enGineerinG

exCellenCe aWarD

The Hinze Dam Alliance

naWiC aCHievemenT

in ConSTruCTion

aWarD

The Contracts Administrator on the

Lotus Glen Redevelopment Project

Sandra Troughton

9

achievedongoingPErForMaNCE SUMMary

PeoPle PerformanCe

Driving a values-based organisational culture

We launched Thiess new vision and values through an internal

communications road show known as Talking Thiess and have made

significant headway in ensuring our values are reflected in our systems

and processes

Developing and implementing a leadership

development framework from graduate

employment through to executive development

Existing leadership development frameworks were reviewed with the

aim of developing a single framework across Thiess construction,

mining and services businesses. Graduate and senior leadership

programs were revised as part of an ongoing review process, to

ensure they reflect current and forecast business requirements

Developed Thiess employee value Proposition

(evP) to underpin recruitment and differentiate

Thiess as an employer of choice in our sectors

Initial rollout of the new EVP included the first phase of extended

employee benefits designed to support employee retention as well as

attraction, particularly of experienced personnel

Highlights Thiess Reconciliation Action Plan (RAP) developed Pay equity review completed Major upgrade to data management systems underway Thiess Excellence Awards program created and launched Blue Blood series of leadership programs implemented in our

mining business

SafeTy PerformanCe

To achieve consistency in language and curriculum

through a standardised safety leadership program

Frontline safety leadership is being addressed through the rollout of our

Leading Safety at Thiess program with 732 managers and supervisors

completing the two-day training in 2012

review and revise Thiess group-level systems

and procedures to address the requirements of

the model Work, Health & Safety regulations

A gap analysis of group-level documentation identified the

procedures needing review in order to address the new requirements

of the model Work, Health & Safety Regulations. Those procedures

were reviewed and updated and more than 150 project managers and

safety managers were trained across the organisation to ensure the

new requirements were understood and implemented

identify, select and implement an integrated health,

safety and environment (HSe) database solution

An integrated HSE database solution called Synergy was identified

and selected with detailed design workshops completed in early 2012.

Phase 1 of the project has now been built with user acceptance testing

well underway and members of pilot projects trained on the system.

Aprogressive implementation of Phase 1 will take place in the first half

of 2013

improve incident investigation by developing

and implementing an incident Cause analysis

methodology (iCam) training program for line

managers, supervisors and safety personnel

The ICAM model was selected as the Thiess tool for significant

incident investigations and training was provided to 212 supervisors,

managers and safety professionals. This equates to 35 per cent of the

target audience that are now trained in this model

Drive leadership accountability for safety through

leading H&S indicators such as H&S systems

audits, critical safety control audits, corrective

action management, critical risk improvement

plans and targeted improvement initiatives

Leadership accountability for leading H&S indicators is now monitored

and controlled by the Managing Director through quarterly safety

contract valuations and lead indicators are a key part of group and

business unit monthly H&S reports

Highlights Recordable Injury Frequency Rates (RIFR) reduced by 34percent the lowest rate in Thiess history

Inaugural Safety Summit hosted with more than 150 senior managers participating

Everyone Safe Everyday Awards program launched across all business units. This process will culminate with the Thiess Safety

Performance Award which will be presented as part of the Thiess

Excellence Awards

Work commenced on a Just and Fair training program Critical Safety Controls completed for traffic control and

liftingoperations

10

environmenT PerformanCe

maintain the certification of our

environmental management Systems to

the international standard iSo14001

All business streams maintained their certification and, during

the year, we integrated our construction businesses under

onecertification

forge a partnership with an environmental charity

that raises awareness of important environmental

issues among employees and provides an opportunity

to contribute and become involved in activities

In July 2012, Thiess signed a three-year partnership with International

RiverFoundation (IRF), involving them in a major Queensland-based

community event, a Christmas stakeholder campaign and work on

Thiess Indonesias Toll Roads Project

implement a strategy for the commencement of a

carbon price in australia, including each project

preparing an energy efficiency action Plan which details

opportunities within the project to improve energy

efficiency and reduce GHG emissions on theproject

During the year, 39 of Thiess projects prepared an Energy

Efficiency Action Plan

Collect water use, recycling and discharge data and

waste generation and recycling data across the group

Thiess commenced collecting this data with the results detailed in

the water and waste sections of this report

Conduct sustainability workshops for large tenders

and projects to identify sustainability initiatives for

integration into the design and construction of the

project at the earliest stages of the development

Several projects conducted sustainability workshops in 2012 and

we began developing a group-wide process to conduct these

workshops at the tender stage

Strengthen our governance monitoring through the introduction of an environmental compliance management system

Substantial development work was undertaken for this system in

preparation for its launch in 2013

implement inter-business unit environmental audits to assist in the transfer of best-practice between projects

A trial inter-business unit environmental audit between our

construction and services businesses was completed and

considered a success

Highlights Work began on a new integrated HSE database solution, Synergy Achieved zero Class 1 incidents and 56% fewer Class 2

environmental incidents compared to 2011

Recycled more than 108,000 tonnes of waste or 66 per cent of all waste

Recycled or re-used approximately 5.78 million kilolitres or 55percent of all water used

1,273 hectares of land was reshaped as part of our site rehabilitation programs

CommuniTy PerformanCe

introduce three corporate charity partnerships aligned

with our focus areas the international riverfoundation

(environment), royal flying Doctor Service (Health)

and the engineering link Group (education)

Thiess signed agreements with all three charities and

actively involved them in headline community and industry

engagementinitiatives

introduce a workplace giving program where staff

can donate to a charity of their choice, which Thiess

will match dollar-for-dollar up to a capped amount

A company-wide internal campaign was delivered to launch the

initiative and ensure that staff were familiar with the process

introduce volunteer leave so staff can take

one day a year to volunteer at a not-for-profit

organisation or charity of their choice

A Care program booklet was made available to all staff and

the opportunity was promoted in the companys internal staff

magazineConnections

embed a grants program to provide vital funding for

community organisations in key regions around australia

Grant funding totalling $42,000 was delivered to seven community

groups in the New South Wales Hunter Valley

introduce company donations to disaster relief appeals,

when and where appropriate, as well as provide

opportunities for our staff to donate to these appeals

This was launched within the broader Care program established

in 2012

Develop an indigenous engagement Program to

develop partnerships in key regions where we can

provide meaningful and long-term support

The program expands on Thiess Indigenous training programs,

which provide training and upskilling opportunities for

Indigenousemployees

Highlights $123,000 donated through a workplace giving program (staff and Thiess contributions combined)

$391,000 donated to corporate partners: Royal Flying Doctor Service, International RiverFoundation and Engineering Link Group

$139,000 raised for charities including Humpty Dumpty Foundation and Hear and Say

24,282 local jobs created on 25 major projects across construction, mining and services

Gap analysis of current community engagement activity and practices undertaken by our mining business

This summary reports on our performance in line with objectives stated in our 2010-11 Sustainability Report.

11

PEoPLE

12

In 2012, Thiess reset its vision Creating a brighter future, together

togive our people a reinvigorated sense of purpose.

185 INdIGENoUS auSTralianS emPloyeD

26.75% FEMaLESTaff ParTiCiPaTion

PeoPle HIGHLIGHTS

13

We deliver our vision through our four

values of trust, innovation, passion and

excellence which guide our behaviour,

support our decision making and

underpin exceptional business outcomes.

The Thiess team, worldwide, represents

almost 20,000 people each individual

contributing essential skills, knowledge,

experience and a passion to succeed.

Our team spans borders, cultures and

countries, and while projects are as

diverse as languages, they operate

with the same spirit of collaboration,

cooperation and care.

Our Employee Value Proposition (EVP)

establishes a measurable framework for

the rewards, opportunities, culture and

expertise that enables us to attract, retain

and develop the best in the business.

This employee offering lies at the core

of Thiess sustainability and capacity to

meet the current and future needs of our

company, and in turn, our clients. That is

why we continue to invest in a stimulating

and invigorating work environment with

career paths, learning opportunities

and reward structures that are market

competitive and reflect the skills,

experience and efforts of our people.

We are implementing comprehensive

learning programs, alongside our global

people management system, to guide

how we lead and support our team.

Our goal is to empower a diverse

workforce and inclusive work environment

that fosters innovation and the delivery

of world-class projects. This goes beyond

championing the diversity of people.

Its about investing in people initiatives

and creating a culture which embraces

diverse ideas, experiences and skills, and

celebrates every individuals contribution

to our success.

Thiess is committed to all employees and

aims to create a world of opportunities to

grow and succeed. This is our EVP which

was redefined in 2012 and encompasses:

rewards Thiess rewards commitment and performance, and we share success

with our employees by providing extra

benefits that add value to their lives

opportunities we offer exciting, challenging and large-scale

opportunities to fast-track careers

across industries, sectors and borders

Culture we have a long and proud heritage with strong values, built

through hard work, mateship and a

commitment to delivering great projects

People we value and celebrate a diverse workforce, which includes industry

leading professionals who motivate,

mentor and support their colleagues.

Continued delivery of our EVP will

differentiate Thiess in the employment

market and position the company

as an employer of choice. In 2012,

Thiesssaw a drop in turnover from 14

to 13 per cent apositive result that

we anticipate will further improve in

2013, as we continue to embed practical

initiatives anchored in our EVP.

reWarDS anD reCoGniTion

A primary feature of our EVP and

strategic plan is ensuring Thiess offers a

comprehensive and market competitive

employee benefits package. In 2012,

we began to implement changes to our

remuneration and benefits offering to

make it more structured and transparent.

Throughout 2013, we will continue to

enhance our reward systems to maintain

a competitive edge in our market.

Satisfied, dependable and productive

employees influence our success, with

morale being the driver behind a healthy

and successful workforce. How our

employees feel about their job, manager,

team and company, and how they are

treated, respected and valued, directly

impacts their effort, commitment and

contribution. In 2012, we were proud to

launch the Thiess Excellence Awards,

recognising achievement across the

organisation and positioning Thiess as

a performance-driven company that

celebrates excellence. Award categories

include leadership, projectsand tenders,

safety, innovation, sustainability,

culture and future leaders.

emPloyee relaTionS

Promoting an open and productive

employee relations environment remains

a priority for Thiess. The key ingredient

to successful employee relations is

a collaborative working relationship

between our line managers, employees

and their representatives at a local level.

This principle of proactive employee

engagement will continue to drive our

employee relations philosophy.

Some 30 individual enterprise agreements

were successfully negotiated across

the group in 2012 evidence of Thiess

growing business. Each contained

conditions and arrangements that were

specific to individual business outcomes

and provided fair reward for employees.

16

18

12

14

8

10

4

6

2

0

THieSS PTy lTD STaff Turnover

2008 2009 2010 2011 2012

16.55%

9.60%

14%

14%

13%

%

emPloyee value ProPoSiTion

14

emPloyee value ProPoSiTion

15

A world of oPPorTuniTieS to grow and succeed.

Our goal is to create an environment

of fairness and equity that leverages

the unique skills and abilities of every

employee, irrespective of their age,

background or beliefs.

While diversity goes beyond gender and

culture, Thiess is driving a clear focus

on gender diversity and our Indigenous

policies and programs. Our commitment

to increasing female participation at

Thiess is seeing positive results. We

have witnessed an increase in female

participation from 14.3 per cent in 2011

to 15.2 per cent in 2012. This has moved

us closer to our target of 20 per cent by

2015 and we have strong momentum to

continue this positive trend.

iniTiaTiveS ConTriBuTinG To THiS aCHievemenT inCluDe:

Thiess Women in Leadership Program 15 participants

Australian Applied Management Colloquium Advanced Leadership

Program for Women three participants

Implementing a pay equity gender review and commencing delivery

of itsrecommendations

Establishing gender diversity working groups within each part of

our business eg Australian Women

in Mining Group and a Diversity

Council in our servicesbusiness

Offering training programs that focus on workplace behaviours and conduct.

Another major achievement in 2012 was the

development of a Thiess-wide Reconciliation

Action Plan (RAP). This commits Thiess to

a series of initiatives from 2013 onward,

designed to support the growth and

development of Indigenous employees

within our organisation. Education remains

critical to culture change and our landmark

cultural awareness programs and training

continue to run across the organisation.

These remind our employees of the

richness and uniqueness of our Indigenous

heritage and arguably all cultures

represented in our broader workforce.

Currently, Thiess employs more than

185 Indigenous Australians. In 2012, 15

participants completed our 20-week

award winning Pre-employment Program

which has been in existence since 2010.

In 2013, we will further embed our diversity

programs as they relate to women and

Indigenous employees, while broadening

our focus to further promote and

encourage diversity in our workforce.

WorKforCe DiverSiTy

Senior manaGemenT aT THieSS

MaLE 89%FEMaLE 11%

inDiGenouS ParTiCiPaTion

MaLE 1.47%FEMaLE 35%ToTal WorforCe 1.82%

STaff

MaLE 73.25%FEMaLE 26.75%

WaGeS

MaLE 91.38%FEMaLE 8.62%

ToTal PoSiTionS aT THieSS

MaLE 84.62%FEMaLE 15.38%

Senior manaGemenT

funCTional & SPeCialiST

STaff anD WaGeS BreaKDoWn

finanCe/CommerCe

GraDuaTe

oPeraTional/enGineerinG

TraDe

aDminiSTraTion

aPPrenTiCe

16

89.2% 10.8% 93.45% 6.55% 49.1% 50.9% 33.3% 66.7%

94.1% 5.9% 85.1% 14.9%63.25% 36.75% 70.5% 29.5%

Thiess business case for diversity

is about having the right people

in the right jobs, and fostering

an environment that encourages

and values different perspectives

andbackgrounds.

Thats the view of Lisa Morgan, who

joined Thiess in 2012 as the new Group

Manager, Diversity.

Lisa brings more than 20 years

of experience leading diversity

and organisational transformation

programs for numerous public and

private sector organisations in Canada

and Australia, and joined Thiess from

her most recent role as a Director at

Deloitte Consulting.

Leveraging the unique styles and

abilities of our employees makes

business sense, and its a socially

responsible way of operating in our

communities, she says.

Lisa believes organisations that value

and leverage the diverse backgrounds,

perspectives and contributions of

their employees are better placed

to deliver increased profits. This

is due to improved client service

through greater operational efficiency

andinnovation.

The services business Diversity Council

comprises a rotating membership of

nine volunteers representing each area

of the business. It was established to

support the development of a diverse

and inclusive workforce. The Councils

initial objective is to target an increase in

gender diversity across services entire

employee base with an aspirational goal

of 30 per cent females by 2015.

The Council has set in motion a

number of initiatives to help advance

the diversity agenda. These include

reviewing recruitment processes,

preparing to implement a leadership

capability framework and reviewing

exit interview processes to better

understand why people leave

thebusiness.

dIVErSITy MakES BUSINESS SENSEneW manaGer on BoarD

CoUNCIL ChaMPIoNS

ChaNGEDiverSiTy CounCil

aBove Anne Marsh from services Diversity Council with General Manager Strategy, Development and Engineering Pat Burke.

17

PeoPle SySTemS anD ProCeSS oPTimiSaTion

Capturing and analysing essential data

ensures informed decisions so that we

can continue to develop our people

and deliver our business strategies.

In 2012, we began the first phase of

implementing a group-wide solution to

capture and manage our people data

in a central system. Once complete,

this will improve the way we allocate

resources and better support our offer

to the market. This system spans:

Recruitment management Learning management Development and capability growth Performance management Remuneration and benefits.

The ability to capture and accurately

report employee lifecycle data,

from commencement through to

retirement, is vital to ensuring that

future people strategies meet the

needs of the business and our people.

The new system, which will become

operational during 2013, will improve

the scope, analysis and effectiveness

of HR and statutory reporting while

ensuring robustgovernance.

BuilDinG anD aliGninG CaPaBiliTy

Learning and development are essential

to building future-focused capability

within Thiess. We continue to offer

aclear pathway for people motivated

to acquire and use new skills in our

businesses to progress their careers

while bolstering our performance.

Our customised frontline leadership

and technical training, tailored to

each of our sectors, remains as strong

as ever. For example, the Blue Blood

suite of training programs supports

our mining employees at all levels as

they continue to develop their careers.

Each program isdesigned to build

on previous programs. If participants

attend Discovering Blue, the next

program will be Building Blue and

so on until they complete True Blue.

Thisisan important element of the suite

of programs as itcreates a common

language, systemsand expectations

of our leaders, whichall form part of

the way we do things atThiess.

All of our frontline leadership and

technical training programs operate

alongside our robust graduate program

and our commitment to pre-employment

and apprenticeship programs.

From a next generation perspective,

ourapprenticeship program maintains

ahigh focus on attracting candidates

from local communities to ensure

employment opportunities are first

offered to the most suitable candidates

in the regions closest to our projects.

In Indonesia, the Balikpapan Support

Facility in East Kalimantan delivers

qualifications in heavy diesel fitting,

auto-electrical and heavy fabrication

through a four-year program which

is fully audited and certified by

Central Queensland Institute of

TAFE. In 2012 thefacility celebrated

20 years of producing highly skilled

graduates forthe mining industry.

Our education strategy supports

students at all levels in the development

of technical skills. In 2012, Thiess

provided nine scholarships for students

to study at leading universities

including Queensland, New South

Wales, Monash, Adelaide and

Newcastle. Beyondscholarships, Thiess

awarded $30,000 in prizes to Griffith

University engineering students, as

well as sponsoring an undergraduate

course forthird year students.

We will continue to expand and adapt

our training programs to reflect the

current and forecast commercial and

technical requirements of our business.

18

emPloymenT ProGramS

South Australian student Kira Evans was the 2012 winner

of the Thiess Minerals Council of Australia Women in

Engineering Scholarship. A Bachelor of Engineering

student, Kira is very active at the University of Adelaide

and has an excellent academic record. Kira will undertake

vacation work with the Thiess Australian Mining team and

the $8,000 scholarship will ease any financial pressures

allowing her to focus more on her studies. She is eager to

give back to other female students who are considering

engineering as a career option and will be an excellent

ambassador for the Women in Engineering Scholarship.

WoMEN IN ENGINEErING SChoLarShIP WINNEr

ExPErIENCE BrINGS TExTBook LEarNINGS

To LIFE

aBove Kira was presented her award by Thiess mining

Executive Manager Matthew Langmaid and Federal

Opposition Leader Tony Abbott.

Working on a civil engineering project at a Central

Queensland mine was a stark contrast to sitting in a

Gold Coast lecture theatre, yet it proved to be a great

career move for Omid Partopour. During the final year

of his civil engineering degree, Omid took part in Griffith

Universitys Industry Affiliates Program, which places

students with industry partners to gain on-the-job

experience. His placement with Thiess saw him relocate

to a mine site near Emerald in Central Queensland to

work on a civil construction project for BHP Billiton

anexperience that taught him more than he could ever

learn from a textbook. The placement led to him being

employed as a graduate engineer on the Airport Link

Project and subsequently the Caval Ridge Project in

Central Queensland.

19

ProGram ParTiCiPanTS

Thiess Indonesia Two-Year Graduate Program 64Thiess Indonesia Five-Year Apprenticeship Program 407Thiess Indonesia UndergraduateProgram 25Thiess Indonesia 12 month WorkExperience Program 40Thiess Indonesia Trades Streaming Program 1,000Thiess Two-Year Graduate Program 112Thiess Vacation Program 35Thiess Plant Apprenticeship Program 27Services Cert III Civil Construction (Plant Ops) 5Services Energy Apprentices 49Services Diploma of WaterOperations 22

ProGram ParTiCiPanTS

Leighton Masters Program (fouryears) 10Business Management Program 20Mining Blue Blood series of programs 111Thiess Community StakeholderWorkshop 25Services Frontline LeadershipProgram 18Services Operational ManagersProgram 24Services Leading HandProgram 10Services Mentoring Program 16

ProfeSSional DeveloPmenT ProGramS

Just one example of our practical,

proven programs, is the award-winning

Thiess Pre-employment Program,

boasting an innovative model that seeks

to improve a number of outcomes for

participants from 17 years of age.

The 20-week program is built on a

foundation of collaboration between

partners, including employers, training

and service providers, mentors, and

state and federal agencies. The program

aims to equip participants with the

technical, work and life skills to take on

an apprenticeship or other employment.

In partnership with Hastings Deering,

the program is delivered to 12-14

participants over 20 weeks. Piloted

in 2010, the program is now into its

fourth year and has evolved to be a

very popular pathway option for those

seeking apprenticeships or employment

in construction and mining.

During the program participants undertake:

One-week induction plus six weekly visits to Salvation Army Canaan

Training and Development Centre

(Riverview Farm), undertaking

Skills for Life training

Cert II Work Preparedness (TAFE, sixweeks)

Cert II Infrastructure and Resources (HDIT, 10 weeks)

Ticket training including First Aid, Working at Heights, Forklift, EWP

Mentoring and coaching from the Former Origin Greats (FOGs) and

Brisbane Broncos mentors, the live-

in Aunty and Uncle, Thiess staff

Participants also receive other ad-hoc support as required,

and accommodation and live-

in support for participants from

other parts of QLD/Australia.

Originally targeting apprenticeships,

the program is now delivered to

suit candidates seeking any type of

employment. While employment is not

necessarily a guarantee to participants, all

graduates to date have been offered full-

time roles with Thiess or Hastings Deering.

INdIGENoUS PrE-EMPLoyMENT ProGraM

20

Thiess priority is market differentiation. We must continue to

create a distinct, positive reputation in the marketplace and

develop and retain key talent so we can deliver excellence for

clients and realise our vision.

our foCuS Will Be on:

Increased visibility, through greater insight

into our people capability

and improved access to

workforce metrics and

analysis

Process optimisation, with more standardisation

of systems to support

increased capacity

Alignment, including ensuring we have the right

people in the right jobs

and matching performance

management to broader

business performance

Capability, through strengthening the way we

build project teams and

assisting our succession

planning

Data security and governance through

ensuring compliance with

statutory obligations and

maintaining data privacy

and security.

DurinG 2013, We Will ConTinue To WorK ToWarD:

Providing easy-to-use systems and processes,

underpinned by technology,

to deliver essential data

for the management and

development of people

across the business and to

meet the groups corporate

governance requirements

Growing our diversity competence with

employees through respect

and understanding so they

can contribute as part of

their respective teams and

support the success of

others in the business

Enhancing our leadership capability through targeted

business and leadership

development programs

Delivering training programs across

key commercial and

governance areas to drive

business performance

andcompliance

Working across the group to ensure a structured

approach to learning and

skill acquisition exists

across all divisions

Continuing to develop reward and recognition

programs that differentiate

Thiess

Promoting direct employee engagement

as a central pillar of

our employee relations

philosophy.

The program has had outstanding results in increasing Indigenous participation at Thiess, particularly for the plant apprenticeship program.

21

SaFETy

22

in march, more than 150 senior operational

and safety managers, including clients

and industry experts, came together for

our inaugural two-day Safety Summit

to review our safety performance and

identify the critical drivers to enable

our next step change in performance.

five focus areas emerged:

enSurinG viSiBle anD effeCTive

leaDerSHiP aT all levelS

Our goal is to make safety leadership

personal. We are doing this by providing

training, mentoring and coaching to

leaders at all levels of the business so they

have the competencies and motivation to

be effective and visible safety leaders.

SeTTinG exPeCTaTionS WiTH

Clear aCCounTaBiliTieS

Our safety objective is unwavering.

To get there, we will hold our people

accountable to live up to the standard

we set in the delivery of our safety

programs and business plans.

emPoWerinG GreaTer enGaGemenT

WiTH THe WorKforCe

We are creating more opportunities to

listen to what our workforce is saying

about safety, understand the risks they

are exposed to and demonstrate that

we care. Our monthly Everyone Safe,

Everyday Awards encourage everyone

to get involved in efforts to take our

safety performance to another level.

emBeDDinG THe our HSe

CulTure frameWorK

We have joined some 40 leading

companies from around the world as a

signatory to an internationally validated

HSE culture framework. The framework

provides guidance on the behaviours we

expect to see across our entire workforce

and the added leadership behaviours

required of supervisors and managers.

SimPlifyinG our SySTemS,

ProCeSSeS, PraCTiCeS

anD meaSuremenTS

We are making a significant investment

in the technology supporting our safety

management system. The Synergy system

(an integrated database that captures

and classifies HSE events and tasks with

workflow functionality and the ability

to track actions to completion) will

streamline compliance and record keeping

while improving communication. It offers

a sophisticated workflow, tracking and

data analysis capability. Thiswill help

drive accountability for our lead safety

indicators and ensure we deliver on

our commitments. It will also make it

easier to identify trends and emerging

issues before they become problems.

Our focus on these areas is already

paying dividends. Compliance with our

lead safety indicators has improved

significantly and we are on the way to

achieving a measurable and sustainable

step change in our safety performance.

In 2012, we built on key systems to further embed the vital cultural change necessary to achieve our objective of everyone Safe, every Day.

LoWEST EVErrifr 4.6

ZErofaTaliTieS

SafeTy HIGHLIGHTS

23

24

140

40

80

60

120

20

0

overDue aCTionS By quarTer BreaKDoWn

160

100

180

200

q1 2012 q3 2012q2 2012 q4 2012

THIESS CONTRACTORS

INDONESIA

SERVICESMINING

THIESS GROUP

NO

. O

F O

VE

RD

UE

AC

TIO

NS

During 2012, we continued to focus on

measuring and monitoring lead safety

indicators across Thiess. This improves

our ability to maintain accountability.

The lead indicators for 2012 included:

H&S systems audits Critical Safety Control (CSC) audits Effective management of

action items raised in incident

investigations, audits, inspections

and behavioural observations

Quality of actions.

In terms of actions, specifically

increasing the ratio of hard to soft

controls is important because hard

controls reduce risk by providing

physical solutions, such as elimination,

substitution or engineering controls,

making them generally more effective.

In comparison, soft controls rely on

administrative measures such as

procedures, training and personal

protective equipment.

Performance against these measures

demonstrated significant improvement

compared to 2011. For example, all

business units, with the exception of

construction, maintained a combined

100 per cent completion rate for

H&S and CSC audits for the year.

Construction achieved 92 per cent

anexcellent result when compared

tothe 2011 result of 49 per cent.

Similarly, performance in corrective

action management has also shown

significant improvement. During 2012,

more than 20,000 corrective and

preventative actions were managed

through the HSE Reporting System.

Atthe end of December, 105 actions

were recorded as overdue. However,

thisis a 75 per cent improvement across

the business compared to 2011 results.

SafeTy PerformanCe

200

50

150

0

overDue aCTionS By quarTer

250

100

300

350

q1 2012 q3 2012q2 2012 q4 2012

NO

. O

F O

VE

RD

UE

AC

TIO

NS

CONSTRUCTION MAJOR PROJECTS

This focus on audits, systems

performance and corrective

actions required a relentless drive

from senior management and our

operational teams on every project.

Importantly, it has led to a renewed

focus on understanding our systems

and working to deliver improvements

before incidents occur.

This effort has delivered tangible

results in the reduction of incidents.

Thiess recorded a RIFR of 4.6 the

lowest in its history representing

an impressive 34 per cent reduction

in the RIFR and overall RIs. This is a

huge step toward our objective of

everyone safe, every day.

We have delivered tangible results in the reduction of incidents.

25

300

60

4

2

100

20

200

40

2

1

0

0

0

0

ToTal numBer of reCorDaBle inJurieS & GrouP rifr

ToTal numBer of loST Time inJurieS & GrouP lTifr

400

80

6

5008

600

100

10

3

2008

2008

2010

2010

2009

2009

2011

2011

2012

2012

AUSTRALIA

AUSTRALIA

INTERNATIONAL

INTERNATIONAL

GROUP RIFR

GROUP LTIFR

NO

. O

F R

EC

OR

DA

BL

E I

NJ

UR

IES

NO

. O

F L

OS

T T

IME

IN

JU

RIE

S

RE

CO

RD

AB

LE

IN

JU

RY

FR

EQ

UE

NC

Y R

AT

E (

RIF

R)

LO

ST

TIM

E I

NJ

UR

Y F

RE

QU

EN

CY

RA

TE

(LT

IFR

)

meaSure Per million WorK HourS 2011 2012

HPi 212 157

HPifr 2.9 2.2

rifr 7.0 4.6

lTifr 0.9 0.9

lTiSr 15.5 9.1

alT 16.6 9.6

Thiess use of the technology solution

known as Tyre Sense enabled one of our

mine sites to avert a major safety incident

through remote monitoring of specific

aspects of tyre condition. Live data is

captured for aspects such as inflation

pressure and chamber temperature

right through to tracking a vehicles

GPS position and speed over ground. It

gives our team the ability to monitor tyre

conditions at any project, anywhere in the

world, as showcased on our Wilpinjong

Coal Mine in New South Wales. Our head

office team received a minimum pressure

email alert on an operating truck, assessed

the situation, notified the site, relayed a

message to the operator, and continued

monitoring the situation including whether

the truck was moving to the workshop for

repair. Under normal circumstances the

operator would have remained unaware

ofthe tyre condition, proving the dramatic

improvements to response times available

through the technology investment.

rEMoTE TyrE MoNITorING FaST-TraCkS

SaFETy rESPoNSE

26

BoDy loCaTion CounT %

eye 80 8

HeaD inCl. faCe, ear 120 13

BaCK 43 5

neCK 120 13

TrunK inCl. inTernal orGanS 30 3

SHoulDerS & armS 110 12

HanDS & finGerS 230 24

HiPS & leGS 108 11

feeT & ToeS 62 7

oTHer 42 4

ToTal 942 100

leGal iSSueS informaTion

ProHiBiTion noTiCeS

infrinGemenT noTiCeS

imProvemenT noTiCeS

airPorT linK 0 0 3

viCTorian

DeSalinaTion

ProJeCT

0 0 2

ServiCeS 1 0 2

nSW/aCT 0 0 1

viC/Sa/TaS/nZ 0 0 1

noTe: JV% HAS BEEN APPLIED TO THIS DATA

BreaCHeS anD ProSeCuTionS

Safety regulators issue prohibition, infringement and improvement

notices to address minor breaches, unsafe activities or conditions,

or to initiate improvement in safety standards. While a number of

prohibition and improvement notices were received, there were no

prosecutions against Thiess during 2012.

inJurieS

2012 reCorDaBle inJurieS By BoDy loCaTion

faTaliTieS

There were no fatalities during the reporting period, which

is a credit to the vigilance of our teams.

enforCeaBle unDerTaKinGS

Enforceable undertakings are available

to organisations as an alternative to

prosecution for breaches of safety

regulations. Thiess entered into two

enforceable undertakings in 2012.

The first relates to two similar safety

incidents that occurred in October

2006 on the EastLink Project. These

involved precast noise walls falling from

a delivery truck when the load restraint

system failed. The undertaking with

WorkSafe Victoria requires Thiess and

our joint venture partner John Holland to

carry out research on the selection and

management of specialist contractors,

review and revise our contractor selection

and management processes, and

distribute guidance and training materials

produced as a result of the research.

The second undertaking was entered

into with Workplace Health and Safety

Queensland as a result of an Airport Link

incident in March 2011. This involved a

subcontractor traffic controller being run

over by a truck, resulting in serious injuries.

This undertaking requires Thiess to:

Produce educational materials for traffic controllers

Field test traffic control technology Develop contractual requirements

aimed at improving safety compliance

by traffic control providers

Fund a university scholarship in the field of workplace H&S.

Enforceable undertakings are a positive

alternative to regulatory action as

they potentially benefit the wider

industry through the development of

safety controls, educational materials

and a greater understanding of risk

management relating to specific hazards.

During 2012, Thiess also received

notice that Workplace Health & Safety

Queensland had commenced proceedings

in relation to alleged breaches of the

Workplace Health & Safety Act 1995 for

two separate incidents on Airport Link.

The first of these incidents occurred

in June 2011 and involved a worker

suffering injuries as a result of falling from

height through a smoke duct opening.

An application for an enforceable

undertaking is under review. The second

incident, in September 2011, was in

response to a fatality on Airport Link

where a worker became trapped under

redundant steelwork.

leaDerSHiP

Navigating the complexities of safety

management systems and safety

performance reporting takes time and

practice, but these are essential skills

for leaders to excel in safety. We are

investing in safety leadership by building

capability at all levels of management and

supervision. Through the Leading Safety at

Thiess program, managers and supervisors

spend two days examining their safety

accountabilities and personal behaviours.

This expands their safety knowledge

and assists in developing effective

communication skills to boost their

leadership capacity. It is a prerequisite for

operational leadership roles within Thiess.

The emphasis is heavily geared toward

communication and reinforces the

importance of equipping our safety

leaders with the techniques and

confidence to constructively engage with

their teams. The program also provides

our safety leaders with the skills needed to

intervene in, and resolve, unsafe situations,

recognise and reward positive safety

behaviours, and motivate teams to stay

involved in our safety efforts.

Targets for individual managers and

supervisors emphasise expected

behaviours and aspirations rather

than simply counting failures via the

measurement of incidents. We are leading

this endeavour from the top. Members of

the Executive Team have adopted personal

targets for the completion of safety

critical activities such as system audits,

Critical Risk Control audits, and the timely

close-out of incident investigations and

corrective actions. In addition, they make

regular, scheduled visits to our worksites to

listen and understand the safety concerns

of our workforce and to recognise and

celebrate their safety initiatives.

exPeCTaTionS anD aCCounTaBiliTieS

Quarterly in-depth reviews of safety

performance in our businesses

are proving invaluable in setting

clear expectations and clarifying

accountabilities for safety management.

These safety contract valuations (CVs)

are run by our Managing Director and

involve the Executive General Manager

ofeach business.

During the executive safety reviews,

performance against agreed lead safety

indicators are examined to ensure

our safety management processes

are operating effectively. Progress

against safety business plans, and

the management of critical risks and

control strategies, is reviewed to ensure

the best efforts to protect our people.

RIsare monitored closely as indicators

ofprogress.

Our safety CVs are an important forum

for confirming that our strategies

are working, as well as providing an

opportunity to examine accountabilities

and define escalation procedures for

significant risk control decisions.

Building safety accountability also

requires a system of fair treatment

for individuals whose accountabilities

are under review. To this end, Thiess

began developing a just and fair

model to provide guidance for

our leaders on assessing whether

accountabilities have been met and

applying appropriate consequences to

reinforce the behavioursthat strengthen

our safety culture. Ourapproach to

achieving ajustand fairculture is a work

inprogress. However, itaddresses a range

of factors including:

Recognising and rewarding good safety performance and actions

Identifying human error and, more importantly, its underlying causes

Understanding the motivations and actions of all contributing players

when it appears that our rules and

procedures were not followed.

27

WorKforCe enGaGemenT

Developing effective safety leaders is critical

to engaging with our workforce. The simple

techniques we promote, based on a culture

of openness, create opportunities for our

leaders to listen to our workers concerns

and their ideas for improving safety.

In 2012, our construction, mining and

services businesses established Everyone

Safe, Everyday Awards, recognising

positive contributions to building our

safety culture through risk management,

compliance, speaking up about safety

and getting involved. The awards carry

significant prizes for individuals as

well as charity donations to motivate

individuals and teams to participate.

The monthly project-based awards build

toward wider recognition within each

of our three businesses (construction,

mining and services). An annual whole-

of-company award is then drawn from the

pool of monthly winners to highlight the

most significant contribution in the year.

CulTure

Throughout 2012, our team has reviewed

the strategies and benefits of more than

40companies who have, like Thiess, adopted

the United Kingdoms Keil Centre safety

culture framework. Companies making

the most progress in terms of behavioural

change and RI reductions have a highly

disciplined approach to regularly assessing

gaps in expected behaviours and developing

action plans to close those gaps. Most

importantly, they are regularly measuring

their performance in line with these plans.

We commenced work on our own

implementation strategy following a more

disciplined approach to gap analysis, action

planning and performance measurement.

It is a simple approach that increases

engagement by integrating the gap analysis

into existing safety management processes.

SySTemS anD ProCeSSeS

The first module of our new safety

information management system, Synergy,

will streamline our management of safety

incidents. It will improve our classification

of incident severity and determine

automated notifications and the level

of investigation required. Investigation

outcomes will then be classified using the

ICAM root cause and contributing factor

coding, which will improve our ability

to identify trends and, ultimately, target

specific issues with prevention strategies.

The second module, to be launched

in 2013, will help demonstrate

compliance to external stakeholders.

Workflow functionality will better

assign actions and track completion,

and assist in clarifying expectations

and driving safety accountabilities.

The ongoing development of our CSCs

is also driving the simplification of

our systems and processes. We have

launched CSCs for traffic control and

lifting operations and commenced a

process around working at heights.

The reduction of safety procedures

and protocols for lifting operations

from 33 to five is a good example of

system simplification that will give users

greater clarity to manage this hazard.

We empower our people to act responsibly, contribute proactively and demonstrate their commitment to everyone safe, every day.

28

Thiess Prominent Hill Mine in remote

South Australia redesigned its training

program for new employees to meet

the increased production required

under an extended contract. With a

shortage of skilled haul truck operators

in the Australian market, Thiess had

to mobilise a higher quotient of new

green employees. Rigorous training

was vital to ensuring continued safety

performance. The team delivered a

range of initiatives including extended

inductions, presentations on haul truck

equipment, training in a 793D simulator,

an extended requirement of 55 hours

combined haul truck observation

from inside a truck cabin, 70 hours of

supervised 793D haul truck operation

and special training for wet weather

and night conditions. Supervisor and

employee interviews looking at attitudes

to safety and work guided a tailored

approach to the training program for

each new starter. This new approach has

ensured sufficient personnel without

compromising to safety standards.

The City East Cable Tunnel team in

New South Wales took an innovative

step to increase the safety of working

underground. A Temporary Roof Support

(TRS) was created to remove the risk

of personnel entering areas beneath

unsupported ground otherwise a

no-entry situation. The nature of

tunnelling means that team members

need to change drill rods and position

rock bolts at the front of drill rigs

underground. The TRS connects with the

main boom of the drill rig, creating a safe

zone between the crown and the tunnel

floor so that team members can continue

their work safely. The TRS has the added

advantage of easy installation, quick

repositioning and rapid removal, as well

as mechanical controls that eliminate

manual handlingrisks.

GoING FroM 'GrEEN' To SaFE aT ProMINENT hILL

SaFETy SUPPorT STrENGThENS TUNNEL

29

Thiess Indonesia created a network

of radio stations to deliver an

innovative and engaging safety

campaign with its at-risk workforce.

First piloted in 2008, it has seen

safety incidents drop dramatically,

with RIFRs down from 1.9 in 2009

to0.6 in 2012 on average despite

the workforce having grown by more

than 50 per cent over that time.

Several challenges led to the initiative

communicating consistent safety

messages, combating fatigue among

plant operators who are often alone and

addressing a cultural lack of familiarity

with the disciplines of shift work.

Based at mine sites including Melak,

Sangatta, Satui and Senakin, the four

community FM radio stations (CFMRs)

tackle the safety challenge of routine

and repetitive work head on.

Creativity, repeater stations and hundreds

of audio devices installed in mobile

plant, make the broadcasts accessible

to an 11,000-strong workforce.

The stations bring to life the work

environment through role plays

that simulate safety incidents, daily

toolbox talks, incident trends, safety

messages from family members,

health information and financial tips.

They even include an anti-fatigue

program, run during high-risk periods,

featuring engaging communication,

up-beat music and variety talk shows

to keep focus and energy high.

Professional on-site, local DJs,

supported by the Jakarta head

office team, keep content fresh and

professional. Broadcasts attract

listeners from neighbouring mine

sites and the local community.

Importantly, the unique initiative is a

sustainable solution that has created

a forum for building an entrenched

safetyculture.

TUNING INTo SaFETy ININdoNESIa

Safety incidents have dropped dramatically in Indonesia, with rifrs DoWn from

1.9 in 2009 To 0.6

in2012 on average despitea50% growth in the workforce.

30

We will continue our drive to achieve a step change in safety

performance, embedding the processes and behaviours

that have already begun to deliver improvements. We will

maintain our focus on developing our safety leaders, clarifying

expectations and holding people to account, engaging with our

workforce, embedding our HSE cultural framework across our

operations, and simplifying our management systems.

DurinG 2013, We Will:

Create an executive level safety development

program to increase our

senior management teams'

ability to interpret safety

performance reports,

askthe right questions

andassess whether

safety is being effectively

managed in their business

Complete the rollout ofourLeading Safety

atThiess program

Cascade the Safety Contract Valuations

initiative through all

management teams

inThiess

Launch the processes thatsupport a just

andfairculture

includingtraining for

managers andsupervisors

Rollout team based self-assessments and

action plans linked

to theHSE cultural

frameworkto ensure

theframework

becomesamore

central part of safety

conversations

Complete the second module of development

and implementation

oftheSynergy system.

31

ENVIroNMENT

Rehabilitation efforts at Mt Owen go beyond

growing vegetation to assessing how endangered

wildlife usethe environment as a habitat.

32

Thiess has embarked on a journey

to raise the profile of environmental

management so that policy becomes

reality and our people are empowered to

achieve our objective smaller footprint,

bigger future a core driver in every part

of ourbusiness.

We believe that going beyond compliance

and achieving environmentally-sustainable

outcomes on our projects will deliver

better results for our projects, clients,

communities and the environment.

We are focused on four key areas of

improvement reducing greenhouse gas

emissions, increasing energy efficiency,

minimising waste to landfill and increasing

waterefficiency.

Environmental awareness and education,

and their supporting management systems,

combine to help us reduce ourfootprint.

our STraTeGy iS To:

Provide visible leadership to promote environmental best practice

and empower employees to lead

environmental initiatives

Drive a beyond compliance culture where everyone plays an active role

and takes personal responsibility to

minimise our environmental impact

Improve our environmental performance on a continual basis

Engage with our employees, clients and other stakeholders to produce

mutually beneficial and sustainable

outcomes

Use best-practice environmental management systems that deliver

good governance and are certified to

the international standard ISO 14001.

We're going beyond compliance to create a smaller footprint and a bigger future.

1,273HeCTareS reSHaPeD

113inTernal auDiTS

environmenT HIGHLIGHTS

33

environmenT PerformanCe

Thiess has adopted a three-class incident

classification system based on the degree

of harm from major harm (Class 1) to

minor harm (Class 3) and acknowledges

near hits (potentialincidents with no

actual harm).

In 2012, we achieved our target of

zero Class 1 incidents for the second

consecutive year. We had set a maximum

of 26 Class 2 incidents (a 20 per cent

reduction on 2011 results) in our planning

and only 15 were recorded a 56 per cent

reduction on 2011 results. The majority

related to sediment controls, sediment

impacts on water, and exceeded

discharge limits. No major or persistent

harm to the environment occurred in

anyinstance.

A total of 632 Class 3 incidents

werereported in 2012 a decrease of92

incidents compared to 2011. Thereduction

is due to two major projects reaching

completion. However,Thiess continues

to emphasisethe importance of

reporting minor incidents. In fact, the

continual drive to avoid significant

incidents by proactively reporting and

implementing controls for minor events

is best demonstrated by the ongoing

proactive reporting of near hits, with 251

reported in 2012 compared to 247 in 2011.

These minor events are dominated by

incidents related to land contamination

through small diesel or oil spills

associated with Thiess large plant fleet

(71percent of incidents). In every case,

contaminatedsoil material was removed

and/orremediated.

reGulaTory noTiCeS

Thiess targets zero regulatory

enforcement notices. Unfortunately,

eight Penalty Infringement Notices (PINs)

were issued to Thiess-related projects

during 2012. Six PINs, with a total value

of $12,000, were issued to the Airport

Link/Northern Busway (APLNB) Project

for sediment discharge to the stormwater

system, while an additional PIN, for

$2,000, was issued for dirt spillage

on a public road. One PIN, for $5,000,

was issued by the Environment and

Sustainable Development Department

ofthe Australian Capital Territory for

failure to comply with an approved

management plan at the Mugga Lane

Waste Handling Facility then managed

by Thiess.

In addition to the PINs, APLNB

received two Show Cause notices

inrelation to identified water and dust

managementissues.

There were no prosecutions for breaches

of environmental legislation in 2012.

GovernanCe anD auDiTS

To improve our capture, analysis

and reporting, Thiess purchased the

Enablon software solution in 2012 and

completed all preliminary work ready

fordeployment in 2013.

Thiess uses internal project audits

to ensure ongoing compliance with

our management systems, which, in

turn, are used to identify and manage

environmental risks, comply with

legislation and client requirements,

and ensure consistent environmental

performance. Thiess environmental

management system is certified under

the international standard ISO 14001,

and our businesses and selected projects

are audited annually by the external

certifying body. All businesses achieved

recertification in 2012.

Non-compliances are addressed

through action plans that are monitored

byseniormanagement. In addition

toThiess audits, many projects are

alsosubject to independent audits

conducted by clients, client appointed

independent verifiers and regulators.

These further ensure compliance and

support continual improvement.

inCiDenTS

During 2012, 113 internal environmenTal audits were conducted.

34

330

600

1

10

200

2

20

400

0

0

0

ClaSS 1

ClaSS 2

ClaSS 3

2012 environmenTal inCiDenTS ClaSSifieD By imPaCT TyPe

4

40

800

2008

2008

2008

2010

2010

2010

2009

2009

2009

2011

2011

2011

0 20 40 60 80

2012

2012

2012

0

1

7

7

71

8

2

1

1

2

22

356

2

17

566

1

24

395

0

34

724

0

15

632

WaSTe manaGemenT

lanD ConTaminaTion

leGal iSSue

noiSe viBraTion liGHT

imPaCTS on HeriTaGe anD CulTure

oTHer

imPaCTS on WaTer

imPaCTS on flora anD fauna

emiSSionS To air

environmenTal inCiDenT TrenD 2008-12

35

%

enerGy uSe anD GreenHouSe GaS emiSSionS

Thiess is a large energy user and emitter

of greenhouse gases (GHGs). Through

our parent company, Leighton Holdings

Limited, we are registered to report

under the National Greenhouse and

Energy Reporting (NGER) Act 2008 and

Energy Efficiencies Opportunities (EEO)

Act 2006. Systems are in place to track

and report our energy use and calculate

our GHG emissions.

Thiess energy use in Australia increased

from approximately 16.5 petajoules (PJ)

to 17.5 PJ per annum between 2011 and

2012. This was primarily the result of a

number of large infrastructure projects

reaching their energy intensive period

and some of our mining operations

increasing production. A substantial

reduction is expected in 2013 due to

completion of several large projects.

Energy use in Indonesia dropped slightly

from 13.9 to 13.3 PJ.

Diesel is our most common fuel consumed,

representing 97 per cent of energy used in

2012. Electricity represents a much smaller

component of energy use between 1 and

2 per cent. Other sources of energy, such

as petrol, Liquefied Petroleum Gas (LPG)

and other gases are only used in minor

quantities. In Indonesia, mining represents

99 per cent of energy consumed. Mining

is also the largest energy user in Thiess

Australian operations, at approximately

84per cent.

GHG emissions from fuel combustion and

the use of electricity in Thiess Australian

operations remained constant at 1250kt

carbon dioxide equivalents (CO2-e) in 2012.

GHG emissions in Indonesia fell from 968kt

to 922kt CO2-e.

Thiess also produced 168kt CO2-e

fugitive GHG emissions through its

owner-operated and contract-operated

landfills in 2012. Emissions were offset

by the capture of methane gas for

flaring or transfer for power at the

Swanbank Renewable Energy and Waste

Management Facility until this process

ceased operation part-way through

2012. Fugitive emissions data was only

available for landfill sites where we

had operational control as defined by

the NGER Act. Thiess sold the waste

management division of its services

business in September 2012 and, as

such, 2012 data for this division spans

January to September only.

15

5

10

0

enerGy uSe

20

25

30

35

2009

PJ

20112010 2012

36

nGer

Energy use and emissions data is

collected for all company projects and

sites irrespective of the operational

control status. Thiess reports annually

under the NGER Act through Leighton

Holdings. In the 2011-2012 NGER reporting

period, Thiess had operational control

over 85 of its 167 operating facilities.

eeo

The EEO Act requires large energy

users to identify, assess and report on

energy saving opportunities. Thiess

triggered the reporting threshold

on the basis of its energy use in the

20052006 baseline year. Further

information on the first EEO assessment

cycle is available from the Thiess EEO

Public Report available at http://

www.thiess.com.au/environmental-

reports/energy-efficiency-reports.

Thiess EEO Assessment Plan for the

second EEO Cycle (July 2011 to June

2016) was submitted to the Department

of Resources, Energy and Tourism in

2012. This plan covers projects over

which Thiess has operational control,

as required by the EEO Regulation.

In 2012, Thiess also introduced an internal

requirement for projects to have an

Energy Efficiency Action Plan (EEAP),

above and beyond the EEO requirements.

The objectives of the EEAPs are to:

Provide a focus for efficiency opportunities available to the project

Reduce the energy use intensity of Thiess activities

Reduce the GHG emissions from Thiess activities

Achieve project energy savings targets

Assist in achieving Thiess sustainability objectives.

A wide range of operational and

technology-based efficiency

opportunities have been

identified across our projects

to date. Examples include:

Use of cost-effective electronic ballast type tunnel lighting

Use of a hybrid (diesel/electric) excavator as pilot initiative to inform

the increased use of more energy

efficient equipment

Upgrade of office facilities including new sensor-activated energy

efficient lighting and a computer

server room that uses more energy

efficient equipment and a smarter

configuration of cooling systems.

ELECTRICITYWASTE

PETROL

DIESEL

GAS

1,500

500

1,000

0

GreenHouSe GaS emiSSionS

2,000

2,500

3,000

'00

0 T

ON

NE

S C

02-e

2009 20112010 2012

FOOTNOTES TO GHG AND

ENERGYCHARTS:

1. Data provided is the total GHG and

energy footprint for all Thiess projects

that have data available. It has not been

adjusted to account for operational

control as defined in the NGER Act,

including Thiess share of joint ventures.

Where fuel is provided by the client

and Thiess does not have operational

control, energy and GHG data may not

be available.

2. Data for 2012 is provisional as the NGER

reporting year is July to June, and July

to December 2012 data has not been

verified at time of publication.

3. Data for 2009 excludes January to June

data from Indonesian operations.

37

A number of our projects have

demonstrated industry-leading

waste management practices,

achieving greater than 90 per

cent recycling and/or re-use of

waste materials, resulting in the

recycling of more than 60,000

tonnes of waste from these

projects alone.

*recycled refers to the waste that

is recycled or re-used and includes

waste that would otherwise go to an

off-site landfill. It excludes sewage,

vehicle batteries and tyres.

in 2012, Thiess recycled more than

108,000 tonnes of waste (66 per cent

of total waste) and 10 of our projects

recycled more than 90 per cent.

Recycling and re-using waste materials

has become business-as-usual at Thiess

to reduce costs, divert waste from

landfill and minimise our environmental

footprint. Waste that cannot be recycled

or re-used is disposed in a safe and

environmentally responsible manner.

To ensure continual improvement,

ouremployees receive regular training

and awareness in waste management.

In 2012, Thiess began collecting

waste statistics across our projects

to better assess our performance

and develop strategies for improving

waste minimisation. During the year,

Thiessprojects produced approximately

164,000 tonnes of waste, with 66

per cent being recycled, re-used or

otherwise diverted from landfill.

minimiSinG WaSTe

120,000

100,000

80,000

60,000

40,000

20,000

0

TO

NN

ES

2012 WaSTe DiSPoSal By TyPe

non-HaZarDouS HaZarDouS ToTal

77%

54%

66%

23%46%

34%

ProJeCT HiGHliGHTPer CenT

reCyCleD*reCyCleD*

(TonneS)

Botany remediation (nSW) 99 31,700

South melbourne (viC) 99 4,200

City east Cable Tunnel (nSW) 98 500

TrackStar alliance (qlD) 97 3,340

Shortland to Sandgate (nSW) 97 370

Tulla Sydney alliance (viC) 96 18,180

Seaford rail extension (Sa) 96 2,070

Prominent Hill mine (Sa) 96 1,480

Goodna Sewage Treatment Plant (qlD) 94 640

Gorgon village (Wa) 93 1,260

lanDfill reCyCleD

38

Thiess consumes large quantities of materials through

our construction, mining and services operations

that are largely purchased from external suppliers.

Thetable below highlights the five most used

materials based on dollar value.

*Excludes joint ventures

2012 Key maTerialS uSeD

maTerialS aPProximaTe quanTiTieS

Concrete* 380,000m3

explosives 94,000t

fuel 786,000,000L

Steel (estimate) 53,000t

Tyres 2,100 tyres (6,000t)

39

BioDiveriSTy

Our projects span urban centres to

the outback, with vastly different

biodiversity values and varying degrees

of ecological sensitivity. Thiess seeks

to avoid or, where this is not practical,

minimise the environmental impact

of our projects on native flora and

fauna. The disturbance footprint for a

project is kept to the minimum required

to efficiently, effectively and safely

complete work.

The nature of our construction,

mining and services projects often

requires that native vegetation be

cleared to allow activities to occur.

In areas considered to have sensitive

ecological communities, Thiess employs

a number of measures to manage

potential impacts. Central to this work

is the establishment of a management

plan that considers the local context,

baseline surveys, monitoring results

and the advice of specialists to avoid,

manage and/or mitigate flora and

faunaimpacts.

reHaBiliTaTion

Rehabilitation of disturbed areas of vegetation remains an integral

part of our construction and mining projects. Thistypically

involves reshaping disturbed areas, establishing erosion control

structures, and topsoiling and seeding areas with agreed

vegetation species. Rehabilitation aims to ensure areas are

stable and suitable for productive land uses, such as agriculture,

grazing, native bushland or natural habitats, as soon as practical

on completion of construction or mining activities. In 2012, Thiess

reshaped 1,273 hectares of land as part of this rehabilitation process.

In specific circumstances, mitigation strategies are adopted to

encourage the reintroduction of native fauna into areas that

have been rehabilitated. For example, rope or net bridges can

be installed across roads and highways to encourage the safe

crossing of native fauna into previously disturbed areas.

reSHaPe SeeD

australia 758 736

indonesia 515 282

Total 1,273 1,018

2012 reHaBiliTaTion of lanD (HeCTareS)

40

Large bridge structures called

viaducts are being used to carry the

expressway over three deep valleys.

The viaducts have lengths of

approximately 330, 255 and 200 metres

and span lengths of up to 75 metres.

There are twin viaducts at each site

making a total of six structures.

The viaducts have concrete box girder

superstructures supported on hollow

concrete piers. The decks are 11.5 metres

between kerbs. The depth of the box

girders varies from three to 4.2 metres,

which provides for two lanes of traffic

in each direction and shoulders.

The height of the decks above ground at

the piers varies from 34 to 42 metres.

Precast concrete elements, or segments,

are used to minimise on-site construction

activities and the projects environmental

footprint. This reduces the risks of

work at heights and of damaging the

environment through spills and additional

clearing. The time for construction

on site is also greatly reduced.

In alliance, Thiess is building the eastern section of the Hunter Expressway which travels through the environmentally-sensitive Sugarloaf Range in the NSW Hunter Region.

TakING ThE hIGh roadHunTer exPreSSWay

41

WaTer manaGemenT Thiess projects rely on water for activities such as dust suppression, compaction

of construction materials, processing

ofminerals and employee facilities.

The availability of water can vary

significantly depending on a projects

location. Each project develops a water

management plan to effectively manage

its specific conditions. Whenever practical

and cost-effective, particularly in areas

where water is scarce, we identify

opportunities for fresh or potable water

to be more efficiently used, recycled or

re-used to reduce our consumption.

In specific circumstances, we may use

poorer quality water from other sources

to meet our needs.

During 2012, Thiess started to collect

andanalyse water data from our projects,

which used 10.25 million kilolitres of

water through the year. Approximately

4.47 million kilolitres of this water

was sourced from potable, surface,

groundwater and marine sources.

Ofour total water demand 5.78 million

kilolitres was met through recycling

orre-using water.

More than 56 per cent of our water needs were met through recycling or re-using water.

2.5m

60.0

50.0

2.0m

40.0

1.5m

30.0

1.0m

20.0

0.5m

10.0

0

0.0

Kil

ol

iTr

eS

(m

ill

ion

)

2012 WaTer uSe By SourCe

2012 THieSS WaTer uSe (%)

%

PoTaBle SurfaCe GrounDWaTer marine

reCyCleD oTHer SourCeS

42

air, noiSe anD viBraTion

The nature of Thiess projects means

there is the potential to adversely

impact local communities through air

quality, noise and vibration. These can,

understandably, be significant issues

for neighbours of our projects. Thiess

is committed to minimising potential

impacts and managing its operations

within the limits established in

environmental licences and approvals.

We implement controls on our projects

that minimise dust and odour emissions,

noise and vibration. These controls may

include the use of dust suppressants,

noise attenuation of equipment and

work sites, and low vibration equipment

and practices when available. Controls

on emissions are supported by intensive

monitoring, which may include real-time

monitoring, to ensure compliance and

the utmost responsiveness.

Communication with local stakeholders

is crucial and Thiess environmental

and community specialists work closely

to ensure the communities in which

we work are kept informed and their

concerns are addressed.

KinG GeorGe CenTral

hErITaGE ChUrCh ProTECTEd dUrING CoNSTrUCTIoN

CaSe STUDY

43

King George Central, a 29-storey

high rise in Brisbanes CBD, was

successfully constructed while

protecting the neighbouring

heritage listed Ann Street

Presbyterian Church.

First constructed in 1854, the

church is one of Queenslands

oldest churches and a significant

part of the States history.

To protect its condition, Thiess

implemented several innovative

measures including vibration

monitors around the church,

with flashing hazard lights that

were set off if strict vibration

limits were exceeded. The system

ensured a rapid stop-work for

the construction team to allow

further investigation and alter

construction methodology

ifrequired.

A tilt sensor and alarm, as well

as glass slide crack detectors,

were also used to monitor the

church during construction, with

no structural damage recorded to

the building during