What this report covers
Information contained in this report is for the financial year ended 30 June 2011. All wholly-owned and/or operationally-managed businesses are included. Each of our divisions has a specific section in this report. Other part-owned businesses such as the Bengalla coal mine in New South Wales, Wespine softwood sawmill in Western Australia, and Queensland Nitrates Pty Ltd in Queensland are grouped in the Wesfarmers section of the report and we provide links to websites for readers wishing to find out more about their activities.

Each division reports across the five key principles of our Group-wide approach to sustainable business: people; carbon and energy; community partnerships and contributions; net environmental footprint; and economic development. Where possible, we have reported this as both aggregated data for the Wesfarmers Group, as well as showing divisional unit data. These indicators and their measurement were developed with the assurance providers for this report and we use the Global Reporting Initiative (GRI) framework as the base for information in this report.

What we mean by sustainability
Wesfarmers' objective is to provide value to our stakeholders, primarily through providing satisfactory returns to our shareholders. We believe to do this effectively involves focusing on the five key principles outlined above.

Report preparation
Community contribution
Wesfarmers' community contribution has been verified using the London Benchmarking Group (LBG) methodology.

Safety data
As with the other data in this report, safety and workers' compensation data is for the year ended 30 June 2011. However, the data reported for a particular year can change in subsequent reports as circumstances (such as the duration of time lost from work) can change over time. Lost Time Injury Frequency Rate (LTIFR) includes contractors where possible and unless otherwise specified.

Greenhouse emissions
Greenhouse emissions information contained in this report for Australia is based on the National Greenhouse and Energy Reporting (Measurement) Determination 2008 (NGER Act), although for indirect emissions (such as Scope 3 electricity emissions, waste and air travel not included in the NGER Act) calculations are done in accordance with the National Greenhouse Accounts Factors Workbook – July 2010 (which applies for the 2010/2011 year). Emissions for other countries are calculated according to relevant government standards in those countries.

Stakeholder engagement
Wesfarmers and its businesses continually engage in a significant communication process with stakeholders with widely varying interests. As part of this report, Wesfarmers (through Net Balance, the external assurers, to maintain independence in analysis and reporting) conducted a broad-based survey of approximately 100 significant stakeholders of the organisation (investors, analysts, business associations, non-government public advocacy bodies, and business journalists) to gather their views on Wesfarmers' approach to sustainable business.

The executive summary of the Net Balance report, dated July 2011, is available on our website at www.wesfarmers.com.au/sustainability

To the extent specific material issues were raised in that process, we have endeavoured to respond to them in this report. Our divisions report on the material sustainability issues for their business in their individual sections of this report. Of the report recommendations that we have not addressed completely, a Group Sustainability policy, based on our five principles, is in preparation and while our businesses have many internal targets for sustainability metrics our preference is to be judged on our performance over time and the continual improvements we strive to make.

In terms of our stakeholder engagement processes, these are dealt with at the appropriate Group or business level. Every one of our businesses has a complex network of stakeholders across regulatory agencies, community partners, consumer advocacy, industry bodies, civil society, suppliers and customers that are consulted with according to their needs or our requirements. To describe this situation accurately in this report would require us to commit several pages to the subject. Our preference is for readers interested in a particular area of our activity to contact the corporate office or our businesses as relevant to discuss their interest and obtain relevant information. The initial contact details can be found at www.wesfarmers.com.au/contact

Assurance
The internal and external assurance process is an important part of Wesfarmers' commitment to transparent reporting of its activities.

Internal verification
Every effort is made to ensure that all statements in the report are accurate and authenticated. Each division documents original source material linking to the content in the report. Extensive verification checks were made by representatives from our Corporate Solicitor and Group Insurance departments, who subsequently prepared reports for senior management within each business.

External assurance
Net Balance Management Pty Ltd (Net Balance) carried out an independent assurance on this report using the AA1000 Assurance Standard 2008 and the elements of the Global Reporting Initiative (GRI). The Assurance Statement is published on page 70. Net Balance provides a detailed report to management and meets with the Board's Audit Committee to review its assessment of the reporting process.

Net Balance has checked our reporting and confirmed it to be Application Level B+.

A statement supporting our verification to GRI Level B+ (as in 2010) is located on our website at www.wesfarmers.com.au/sustainability

The greenhouse gas emission and energy data has been subject to a limited assurance audit by Ernst & Young to the extent the data relates to our NGER Act report for the 2010/11 year and the Auditor's report has been voluntarily provided to the DCCEE.

Net Balance, as detailed in its assurance report, relied on this audit for our NGER Act data, and conducted its own assurance of our greenhouse and energy data outside the scope of the NGER Act report.

More information
In addition to this report, more information regarding Wesfarmers' activities can be found in other public reports:

• the Carbon Disclosure Project and the Carbon Disclosure (Water) Project (www.cdproject.net)
• the Dow Jones Sustainability Index (www.sustainability-index.com)
• the Australian Packaging Covenant (www.packagingcovenant.org.au)
• the Energy Efficiency Opportunities Act (www.energyefficiencyopportunities.gov.au) in Australia
• the National Greenhouse and Energy Reporting Act in Australia (www.climatechange.gov.au/reporting/)
• the Forest Footprint Disclosure Report (www.forestdisclosure.com).

In most cases, each of the Wesfarmers divisions publish their own sustainability reports which are available on their websites.

This report uses only summarised financial and governance information. More information and detail is available in our 2011 Annual Report (available at www.wesfarmers.com.au), especially regarding Board processes and policies; remuneration policies; and financial accounting practices.

The Wesfarmers Annual Report also details the structure of the organisation; operating locations; major shareholdings; markets; countries and sectors we operate within; and any legal changes to subsidiaries during the reporting period.

In several parts of this report the reader will note references to more detailed information on particular elements of our performance being available on our website at www.wesfarmers.com.au/sustainability

This data includes a list of the industry associations or like bodies Wesfarmers or its subsidiaries was a member of in 2010/11.

Completeness
We do not claim that this report provides 100 per cent coverage of our sustainability performance. Any gaps in our knowledge will be reduced as our systems improve. This document is a best-endeavours attempt to report openly and honestly based on our current state of knowledge.

Feedback
We welcome your feedback on this report. A form has been provided for you here, or you can email info@wesfarmers.com.au

Last year, we received several formal comments, which we responded to individually.