Annual Report 2011 - Watercare

Watercare Services Limited
2011 ANNUAL REPORT
Environmental
Resources
Management
ERM Independent Assurance Report to Watercare Services Limited
ERM New Zealand Limited (ERM) was engaged by Watercare Services Limited (Watercare) to provide independent assurance of non-financial data within Watercare’s 2011 Annual
Report, to the scope of work outlined below.
Scope of Work
This assurance statement is intended for Watercare’s stakeholders. The 2011 Annual Report covers Watercare’s operations for the 12 months from 1 July 2010 to 30 June 2011,
unless stated otherwise in the text. For example, changes in scope and responsibility following the Auckland water industry amalgamation in November 2010, is such that certain
performance rulers only report data for the 8 month period following the amalgamation. This work was performed in accordance with ERM’s assurance methodology, which is based
on the international standards ISAE 3000, AA1000 Assurance Standard (2008) and ISO 19011. ERM reviewed Watercare’s performance reporting for the subject matter specified
below. The criteria used were the AA1000AS (2008) Principles of Inclusivity, Materiality and Responsiveness, against which ERM reviewed Watercare’s performance reporting to
provide Type 2, moderate assurance. To achieve this, we interviewed a number of personnel and reviewed relevant documentation at Watercare’s operations in Auckland.
The subject matter for this assurance process consisted of adherence to the AA1000AS (2008) Principles, adherence to the Global Reporting Initiative (GRI) G3 Application Level A+
requirements and review of the following performance rulers: Safe & Reliable Water Supply; Healthy Waterways; Health, Safety and Wellbeing; Customer Satisfaction; Stakeholder
Relations; Sustainable Environment; Effective Asset Management; and Sound Financial Management.
The scope specifically excluded data relating to Watercare’s financial accounts.
ERM’s Independence
Watercare was responsible for preparing the 2011 Annual Report, including the collection and presentation of data and statements within it. The ERM team, led by Peter Rawlings,
Partner, Australia & New Zealand, was responsible for expressing assurance conclusions in line with the scope of work agreed with Watercare. During 2010/11, ERM did not work
with Watercare on other consulting engagements.
Our Conclusion
On the basis of its scope of work, and in consideration of the limitations of the assurance engagement presented above, ERM concludes that, for the specified subject matter,
Watercare’s 2011 Annual Report appropriately reports non-financial performance, addresses the AA1000 Principles of Completeness, Materiality and Responsiveness and
adheres to the GRI G3 Application Level A+ for the 12 months from 1 July 2010 to 30 June 2011.
Key Findings
Based on the scope of work, and without affecting our assurance conclusion, ERM identified the following key findings:
• In response to the Auckland water industry amalgamation, Watercare has refined its sustainability performance rulers. Quantitative and qualitative rulers are now
presented that reflect the broad integrated role that Watercare undertakes and the range of stakeholders that have an interest in its operations.
• Many of Watercare’s inherited non-metropolitan assets do not currently meet the same standard and quality of service as its metropolitan sites, however Watercare is aware
of the improvements required to bring these inline and has made commitments to invest in these areas.
• Watercare continues to actively engage with key stakeholder groups, including its shareholder, the Auckland Council, local Boards, customers, iwi and other interested
parties and respond to their needs. Specific advisory groups focused on iwi and the environment have continued to operate through the amalgamation.
• A range of programmes have been initiated by Watercare to tackle material issues across the breadth of sustainability areas such as: reducing water demand of both
its residential customers and larger water users; diverting both operational and process wastes from landfill; increasing skills and capacity within its workforce; and
educating and informing local communities.
• Whilst a large portion of the data reporting mechanisms used to generate Watercare’s performance rulers are integrated electronic systems that help to minimise the
potential for data inaccuracies and calculation/transposition errors, there are a number of areas that would benefit from improved data collection protocols.
ERM congratulates Watercare on its 2011 Annual Report.
ERM New Zealand Ltd,
23 September 2011,
Auckland, New Zealand
Verification report
PAGE 58
ERM New Zealand Limited (ERM) is an independent global provider of environmental, social and corporate responsibility consulting and assurance services. ERM has prepared this
statement for Watercare Services Limited in accordance with ERM’s standard terms and the standard practised by members of the environmental consulting profession performing this
type of service at the same time. No other warranty, express or implied, is given by ERM as a result of the provision of this statement. To the extent permitted by law, this statement is
provided for informational purposes only, without the right to rely, and ERM will not be liable for any reliance which may be placed on this statement by a third party.
This statement may not be used by any third party without ERM’s express written permission.
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