Sustainability Outlook

At TrustPower we believe that sustainability means building a long term business through relationships with all who we interact with. In order to report on our progress in this regard we report economic, staff, environmental, customer and community related measures.

Our performance this year was comparable with previous years across the five areas we report on although not all targets were achieved.

AREA	MEASURE	2012 ACTUAL	2013 ACTUAL	2013 TARGET	2014 TARGET
Economic	EBITDAF Growth	9.4%	(1.8)%	6-10%	5-10%
Staff	Staff Survey	73.1	77.3	76.0	79.8
Environmental	Resource Consent Breaches	10	5	0	0
Customer *	Customer Satisfaction	96%	95%	>95%	>95%
Community	Stakeholder Consultation	Completed	Completed	Complete detailed stakeholder consultation	Complete detailed stakeholder consultation

* Customers rating very good or excellent

A more detailed analysis can be found in pages 26-31

All businesses face risks and challenges. Our key risks and challenges are summarised in the table below.

CATEGORY	KEY RISKS / CHALLENGES	APPROACH	TARGETS	PROGRESS

Economic	• Unable to meet future demand for electricity • Shareholder value growth	• Develop a pipeline of opportunities for new investment • Maintain strong focus on efficiency of operation • Invest in economic growth projects • Focus on long term sustainable pricing	• Costs benchmarked at below industry average • New projects all economically viable • New projects completed on time and to budget • Prices set at levels so customer base maintained with minimal churn


Environmental	• Need to minimise environmental impact of generation schemes • Overall impact on carbon emissions	• Work closely with special interest groups and the local community to minimise impact of new generation • Comply with resource consents • Reduce carbon footprint	• Zero significant resource consent breaches • Year on year reduction in carbon emissions per customer


Our people	• Need to retain and develop a team to produce ongoing performance	• Extensive training and development programme • Succession planning and internal promotion	• 75% of management roles filled by internal promotion • Continuous improvement in staff survey results • Staff survey exceeds national benchmark


Community	• Relationships with and an understanding of local communities is required to operate effectively	• Community engagement including sponsorship and community awards • Consultation around resource issues	• Maintain a strong corporate profile in all areas in which we operate and build relationships within those communities • No resource consents turned down due to lack of consultation


Customer	• Dissatisfied customers prevent sustainable economic performance	• Competitive pricing • Excellent customer service • Information and advice	• Net customer churn <2% • >90% satisfaction in survey

Achieved

Partially achieved

Not achieved

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Sustainability Outlook

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