How much firms are investing in WA communities

Community investments are a curious quirk of doing business in Australia.

There are no laws mandating the practice and no rules governing how to go about it.

Such investments can be a damned-if-they-do, damned-if-they-don’t scenario for many companies, which can be criticised either for not giving enough or for making any contribution at all.

Putting money into communities is a key tool to gaining and maintaining a social licence to operate, one of the most important – yet unofficial – licences any company seeking to ply its trade in Western Australia must obtain.

But the nature of how that money is allocated, how much is enough, and who gets a say is changing as community expectations evolve and competition grows for government funding pools.

To underpin the evolution of community investments, Business News approached companies representing a cross-section of industries and sizes in WA about how much they spent.

The list represents data either provided by companies or gleaned from annual reports and, to the best of Business News’ knowledge, includes only direct investment of company funds.

While in-kind contributions, training, corporate volunteering and fundraisers are important, companies were asked to exclude these investments.

Some companies also opted to exclude commercially sensitive deals from overall figures provided.

How and why

A framework developed by US-based advisory firm Business for Societal Impact (B4SI) is billed as a global standard for corporate citizenship.

The framework breaks community investment down into three fields: input, output and impact. Questions around inputs are simple enough.

How is a company investing, what are the drivers, what issue is being addressed and where will the investment be made?

The B4SI framework considers three factors under outputs: community output, leverage and business output.

Community and business outputs refer to what each stakeholder gets out of the investment, whether it be media coverage, the number of people helped or boosted awareness.

Direct Community Contributions in WA

• BHP: $44m
• Rio Tinto: $41m (2022)
• Woodside: $20m
• Fortescue: $6.7m
• Northern Star: $6.6m
• Newmont: $6m
• CBH: $1.6m
• Metcash: $1.4m (2022)
• RAC: $902,000
• HBF: $879,950
• Arc Infrastructure: $500,000
• Gold Road Resources: $474,000
• Satterley: $450,000
• P&N Bank: $125,000
• TAMS Group: $100,000

Leverage is an important factor, too, and one that has been central to investment decisions in WA, according to Chamber of Minerals and Energy of Western Australia chief executive Rebecca Tomkinson.

“Industry works to ensure that government contributes and does provide the essential services that governments are responsible for,” Ms Tomkinson said.

“What we do as industry is value add and support those services even further.”

The Pilbara has a long list of projects where leverage has been used by companies and government to spur further investment from other tiers of government, other companies, and other industries.

It is how major builds such as Karratha’s Red Earth Arts Precinct and Leisureplex were developed, and how sealing of the Marnuwarra Red Dog Highway began.

B4SI defines ‘leverage’ as changes to individuals, organisations and the company in the short or long term as a result of the investment activity.

Impact is the ultimate goal.

In considering impacts, the framework touches on three aspects.

• Community: the type and depth of impact on those to whom support is being directed.

• Business: change in business performance and impact on employees.

• Environmental: change in the social and ecological environment.

Resources leads

WA’s mining and energy industry is no stranger to spending big outside of its core business.

These days, Pilbara and Goldfields towns built by mining companies are major beneficiaries of corporate goodwill, which seeks to ensure the places that gave rise to these multinationals can thrive.

BHP led the list of WA’s largest direct community investors in 2022-23, contributing $44 million to WA’s communities, including nearly $16 million in Port Hedland and $7.5 million in Newman where the miner has made its fortune.

Rio Tinto would be a fraction of its size without Tom Price, Paraburdoo, Karratha, Dampier, Pannawonica and Wickham, which perhaps goes some way to explaining why the $188 billion global miner renewed a $75 million, 10-year partnership with the City of Karratha and Shire of Ashburton in 2022.

Likewise, Northern Star would not be the powerhouse gold producer it is without Super Pit operator KCGM in its stable.

“Investing in social outcomes, community groups and local initiatives significantly enhances the liveability for our people and the communities we operate in,” Northern Star social performance manager Chad Menzies said.

“In FY23, Northern Star supported partnerships with more than 50 organisations to deliver sustainable development outcomes within the Goldfields region.”

Kalgoorlie-Boulder’s most prosperous hole has been good to Northern Star, and the company returned the favour in the form of a $6.6 million contribution to WA community initiatives in 2022-23.

Even one of WA’s most remote miners splashes some serious cash.

Gold Road Resources – which holds a 50 per cent interest in the Gruyere goldmine in the Goldfields’ sparse Yilgarn region – reinvested $589,000 into WA communities last financial year, 80 per cent of which came directly from its own coffers.

That money supported ranger programs, Indigenous scholarships and Gold Industry Group initiatives.

“We target investments that can address identified social needs, assist to build capacity and contribute to social initiatives in the communities in which we operate,” Gold Road social performance and external relations general manager Sharon Goddard said.

“For Gold Road, it is about helping to create positive social change and quality of life with a focus on providing access to education and pathways to employment opportunities not just for children, but also families.”

CME’s Ms Tomkinson said investment from the sector was often led by employees on the ground.

“Our team members are part of the schools, part of the local P&Cs,” she said.

“They volunteer at the sporting arenas; the contributions have come out of that space.

“When you live in a community you want it to be strong, and you want to be able to ensure that it has all of the assets and all of the infrastructure, that it has great opportunities for local people.

“For all of our companies, that is a really important part of how we ensure we have a prosperous business community.

“Because if the community does well, so do the businesses around it.”

However, Ms Tomkinson said companies putting money into communities needed to avoid crossing the line into areas of government responsibility.

Given their scale, impact and influence, WA’s miners often find themselves at the coalface of changing community expectations.

Partnerships with local business chambers and councils to determine funding priorities are becoming more common.

A $1.64 million deal struck between Talison Lithium and the Shire of Bridgetown last year was the latest example.

Up from a $512,000 spend across Perth and the South West in 2023, Bridgetown is now seeking a $5.3 million commitment for 2024.

“We have been developing a relationship with Talison over the last couple of years, talking about their contributions to the community and being very grateful of the funds they have been providing for community groups, not for profits, and so on,” Bridgetown president Jenny Mountford told Business News in December.

“It is very much a case of primarily having the community see a real benefit from the contribution in the main town.

“They are all dealing with a lot of dust, a lot of noise, a lot of trucks.”

Size doesn’t matter

The big miners are not the only ones spending in WA communities.

CBH Group in December revealed a $1.6 million outlay in regional communities in WA, including to the Royal Flying Doctor Service, country football, and grower groups.

Employees of HBF donated nearly 1,700 hours to charitable causes in 2022-23.

“Our focus is on improving the health of all Australians and this is reflected in the initiatives we choose to support, HBF chief executive Lachlan Henderson said.

One of those initiatives is the HBF Run for a Reason – a terrific event that continues to benefit the WA community.”

Back in 2023 after a three-year hiatus, Run for a Reason raised $1.2m, while $879,950 was contributed directly to communities by the health insurer.

HBF and RAC hold some of WA’s most prominent sponsorship portfolios.

HBF counts two sports arenas and the community running/walking event among its major corporate plays, while RAC’s arena and rescue helicopter deals are among the most prized in the state.

For context, the helicopter naming rights were valued by the state government at $3.75 million in October.

Marine Services provider TAMS Group was among the smallest firms approached to take part in this story.

In 2022-23, its TAMS Group Fund put $100,000 into hyperlocal initiatives such as Marine Rescue Port Hedland, the Port Hedland Turf Club, chamber of commerce support, and community events in Onslow and Fremantle.

The marine specialist has also provided vessels for the Port to Pub swim, supported Aboriginal health in Fremantle, and assisted with revegetating Rottnest Island.

TAMS’ model of targeting support close to its operations is one replicated across the state by small and mid-tier firms.

A RISE winner in 2023, Topdrill is another standout in this space, in pursuit of its goal to raise $1 million in five years through a series of community and corporate events.

The company donates $10,000 each year to the MACA 200 and sponsors the Goldfields Children’s Charity, St Barbara’s Parade, a local netball club, and several statewide groups.

Karratha’s Joyce Krane is another local business spending big locally, putting about $140,000 over two years into the town’s speedway, fishing and jockey clubs.

Joyce has also funded an ambulance and paid the costs for volunteer fireys to run the annual Christmas lolly run.

For some companies, direct investment makes up a small portion of community contributions.

On top of BDO Australia’s direct investment, for example, about $185,443 was raised and $563,000 in pro-bono work completed nationwide.

Meanwhile, law firm MinterEllison completed $22 million worth of pro-bono work across 60,000 hours nationally in 2022.

Dark on developers

While most sectors were eager to talk up community investments and, in many cases, publicly do so in reports, gleaning information from property developers was less straightforward.

Cedar Woods produces an annual ESG report, which details support for education and community groups, but the only figure available was a $55,000 spend on grants nationwide.

Peet dedicates website and annual report space to its efforts to support cricket, mental health, and community groups, but those pages contain no figures.

Peet and Cedar Woods would not provide figures when asked.

Privately held Satterley Property Group was more forthcoming.

The WA developer spent $35,150 on 21 community sponsorships in 2023, $5,000 on local business partnerships, and provided $410,000 towards the Telethon home, of which founder Nigel Satterley donated $50,000.

Further investment details into events and community facilities were not available at the time Business News went to press.

Stockland’s annual report outlined a commitment to invest $1 billion into “social value” by 2030, a $4.3 million spend on Indigenous procurement in 2022-23, $1.3m of direct investment into community development, and substantial volunteer and employee donations.

The Alcock Family Foundation has donated nearly $10 million since 2006, according to ABN Group’s website.

State or national

P&N Bank is among the major WA brands which put most of their community investment back into the state.

A bank spokesperson said the firm’s grants program pitched in to family violence, mental health, disability, homelessness, welfare services and environmental protection initiatives.

In the 2022-23 financial year, P&N Bank contributed $125,000 to more than 60 individuals in need and 30 local not-for-profits and community groups.

WA food-relief charity Manna, the annual police excellence awards, Lifeline, and the Fathering Project are all recipients of P&N Bank support.

At the national level outfits such as Coles, Woolworths and Telstra are heavy hitters.

Direct community contributions in Australia

• Rio Tinto: $62.4m (2022, incl NZ)
• BHP: $57.8m
• NAB: $49m
• Bendigo Bank: $32.9m
• Woolworths: $28.1m
• Wesfarmers: $23.7m
• Telstra: $18.3m
• Mirvac: $13.9m
• Coles: $12.9m
• GPT Group: $5.26m (2022)
• Stockland: $1.3m
• APA Group: $1.2m
• MinterEllison: $360,000 (2022)
• BDO Australia: $85,620
• JANA: $70,000

The two supermarket giants have a broad range of indirect and direct causes they contribute to, including through food provision.

Telstra’s $93.1 million outlay in 2022-23, of which $18.3m was direct investment, has a focus on digital accessibility in line with the firm’s industry.

“This includes customer and community digital inclusion, access, literacy and innovation programs, charitable donations and customer measures such as disaster-related support and grants,” a Telstra spokesperson said.

“Almost 14 per cent of that investment includes national and local community sponsorships, memberships and donations.

“In addition, we regularly contribute to co-investment opportunities with Federal and State Governments to improve mobile coverage, especially in regional Australia.”

Caught in the crossfire

In the mid-2010s, the Pilbara’s major resources companies came in for regular criticism for not putting enough back into the communities in which they operated.

Today, their contributions are respected, and many have outlined long-term local and statewide commitments. Those moves have not been without controversy, however.

Woodside is the obvious case.

Organisations that accept funding from Woodside have been targeted by activists, and the oil and gas company has been accused of using community investment as a smokescreen to shroud environmental concerns.

It has led to a unique situation for Woodside, which has strong support in Karratha where it operates but has come under pressure from activists in Perth and interstate.

Ms Tomkinson said those concerns mostly did not reflect the value sponsorship and grant recipients saw in industry support.

“You will see … there are many who also speak to the importance of the contribution and the difference that it makes locally within the community,” she said.

“Our litmus test is listening to our communities around how we can invest together and what they’re looking for us to invest in.

“It is not possible for many of the community organisations to do the level of work and the expansion of work that they provide without the investment from companies.”

Woodside’s local investments include subsidised rental homes in Karratha, support for Roebourne’s community-run general store, and funds for turtle monitoring in Exmouth.

Statewide, Woodside contributes to the Barking Gecko Theatre, Orange Sky, Scitech, Surf Life Saving Western Australia and the Western Australian Symphony Orchestra.

In 2022, the company committed to spending $65 million over five years on community development in regional WA.