ESG
Environment | Social | Governance
Environment, Social, Governance (ESG)
ECT’s commitment to ESG is to create consistent, transparent, measurable disclosures that help us contribute to building a more prosperous and fulfilled society and a more sustainable relationship with our planet – in a format that is useful to our stakeholders.
Universal ESG metrics
During FY22, the Company commenced ESG disclosure against the World Economic Forum’s (WEF) Stakeholder Capitalism framework, a universal, comparable and effective means of creating long-term enterprise value whilst addressing the societal priorities enshrined in the United Nations’ Sustainable Development Goals. The WEF framework comprises 21 core metrics under the four pillars of People, Planet, Prosperity, and principles of Governance that organisations can report on, regardless of size, industry, or region.
Environment
As a disruptive technology company that aims to play a key role in the energy transition to net zero, we place a high emphasis on environmental considerations within ESG as they enable us to better identify material risks and opportunities, leading to better-informed decisions and business outcomes.
Environmental highlights:
- In December 2021, ECT set a net-zero target (Scope 1 and 2 Greenhouse Gas [GHG] emissions) for ECT’s corporate offices (plus limited Scope 3 GHG emissions to include staff land and air travel, and waste), with a target implementation date by the end of FY22.
- In May 2022, ECT approved the voluntary adoption of the Task Force on Climate-related Financial Disclosures (“TCFD"), demonstrating a commitment to building a more resilient future and safeguarding against current and future climate risks whilst opening up future opportunities in the transition to net-zero.
- In June 2022, ECT offset its FY22 corporate GHG emissions, based upon the FY19 GHG baseline from its Carbon Audit, through the purchase of carbon credits.
- From FY23, the Company will implement sustainability initiatives to reduce the Company’s ongoing corporate GHG footprint and will investigate reducing staff GHG emissions at home.
- ECT looks forward to providing updates as it relates to GHG targets and the leading role the Company expects to play in meeting the Paris Agreement and transitioning to net zero.
Social
- Our Purpose is to ‘bridge the gap between today’s use of resources and tomorrow’s zero-emissions future’. We do this through ongoing investment in R&D.
- Investment in R&D can be regarded as a basic universal indicator of a company’s efforts to innovate, be fit for the future, and provide prosperity through jobs & fair wage growth and taxation to government, which in turn generates social or environmental benefits, as measured against the UN Sustainable Development Goals (SDG’s).
- A company’s capacity for further innovation is also driven by the organisation’s culture that helps bridge diversity gaps, attract talent, and drive long-term competitiveness. The economic well-being of employees through a fair distribution of income is crucial for eliminating inequality and poverty, as is maintaining strong standards of health, safety and labour rights, which can also improve employee productivity and operational efficiency.
- ECT upholds the highest moral, ethical, and legal standards in all we do. Our Modern Slavery Policy was adopted in March 2022 to guide future risk assessments in our supply chain. ECT's Modern Slavery Policy is here.
Governance
ECT has adopted the following policies and procedures to improve corporate governance throughout all levels of our organisation and with our stakeholders, including contractors, suppliers, customers, government and the community:
- Board Charter
- Nominations & Remuneration
- Audit and Risk Committee Charter
- Continuous Disclosure Policy
- Securities Trading Policy
- Code of Conduct Policy
- Gifts, Benefits, Bribery and Hospitality Policy
- ECT Disciplinary Action Policy
- Whistleblower Policy
- Corporate Governance Statement
- Constitution
Regular review of material emerging ESG risks and opportunities (especially relating to climate change) by the ECT Executive, ECT's Audit and Risk Committee, combined with Board oversight, is a key priority for the Company.
Our stakeholder engagement process further emphasises what is material to ECT and to our stakeholders.
The capabilities and perspectives of ECT’s Board members are important for making important strategic decisions. The Board Skills Matrix captures Board competencies related to Governance, including ESG competencies.
Board Skills Matrix
| Board Member | Glenn Fozard | Jason Marinko | James Blackburn | Tim Wise |
|---|---|---|---|---|
| Title | Managing Director | Non-Executive Chairman | Non-Executive Director | Non-Executive Director |
| Independent | N | N | N | N |
| Gender | M | M | M | M |
| Experience | ||||
| Corporate leadership | E | E | E | E |
| International business experience | C | C | C | C |
| Industry & sector experience | C | C | C | F |
| Board experience | C | E | E | E |
| Capital Markets experience | E | E | C | E |
| Knowledge and skills | ||||
| Strategy Development | C | E | E | C |
| Finance & Accounting | E | C | C | C |
| Legal & Regulatory | F | F | F | F |
| Digital & Information Technology | F | F | F | F |
| Human Resources & People | C | C | C | F |
| Public Relations, Marketing & Communications | F | C | F | C |
| Risk & Compliance | C | C | C | C |
| Stakeholder engagement | C | E | C | E |
| Engineering | F | F | F | F |
| Capital projects/development | C | C | C | F |
| Intellectual Property Development and Protection | F | F | C | F |
| Environmental & Climate | E | C | C | F |
| Social & Sustainability | E | C | C | C |
| Governance & Policy | C | C | C | C |
| Governance Competencies | ||||
| Director (medium organisation 10 - 99 employees) | E | E | E | E |
| Financial literacy | E | E | E | C |
| Strategic thinking | E | E | E | E |
| Executive performance management | C | C | C | F |
| Risk management and mitigation | C | C | C | C |
| Compliance focus | C | C | C | C |
| Profile / reputation | C | C | C | E |
| Behavioural Competencies | ||||
| Team player / collaborative | E | E | E | E |
| Ability and willingness to challenge and probe | E | E | E | E |
| Common sense and sound judgement | E | E | E | E |
| Integrity and high ethical standards | C | E | E | E |
| Mentoring abilities | C | E | C | E |
| Interpersonal relations - internal | C | C | C | C |
| Customer relationship management - external | C | E | E | C |
| Listening skills | C | E | C | E |
| Verbal communication skills | C | C | E | E |
| Understanding of effective decision-making process | E | E | E | E |
| Willingness and ability to devote time and energy to the role | E | E | E | E |
ESG Dashboard
ECT will continue to demonstrate an ongoing commitment to ESG by sharing our progress toward ESG disclosures in quarterly updates and making our disclosures transparently available in the public domain.
ESG Reporting
Annual ESG Report
Quarterly ESG Highlights
Our “ESG Highlights” report provides a summary of key ESG achievements during the Quarter, as measured against the 21 core WEF metrics.
Past ESG Highlight Reports