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Australia’s National Science Agency Annual Report 2018–19 CSIRO Annual Report 2018–19 Our annual report This annual report provides a summary of our activities and performance for the financial year ended 30 June 2019 against the planned objectives and outcomes in our Corporate Plan and Portfolio Budget Statements. Read the annual report online: csiro.au/annualreport2019. CSIRO We are Australia’s national science agency and innovation catalyst. As one of the largest and most multidisciplinary mission-driven research organisations in the world, we unlock a better future for everyone. Our purpose We are an Australian Government statutory authority within the industry, innovation and science portfolio, operating under the provisions of the Science and Industry Research Act 1949 (SIR Act). Our purpose is defined through the functions we undertake as set out in the Act (read more on page 28) and through our Corporate Plan. To align with our Portfolio Budget Statement outcome statement, we describe our purpose as: Solving the greatest challenges through innovative science and technology. Our vision We are Australia’s innovation catalyst, collaborating to boost Australia’s innovation performance. Harnessing the digital revolution. Our Artificial Intelligence and Machine Learning Future Science Platform is targeting artificial intelligence-driven solutions to build a safer and more efficient future for the next generation. i CSIRO Head Office Clunies Ross Street, Acton ACT 2601 GPO Box 1700, Canberra ACT 2601 Australia csiro.au | ABN 41 687 119 230 30 August 2019 The Hon Karen Andrews MP Minister for Industry, Science and Technology Parliament House CANBERRA ACT 2600 We have pleasure in submitting to you, for presentation to Parliament, the 71st Annual Report of the Commonwealth Scientific and Industrial Research Organisation (CSIRO) for the year ending 30 June 2019. This report has been prepared in accordance with the requirements of the Science and Industry Research Act 1949, section 46 of the Public Governance, Performance and Accountability Act 2013 and the Public Governance, Performance and Accountability Rule 2014. The report was endorsed at the meeting of the CSIRO Board members on 30 August 2019. Part 6 is a report on the operations of the Science and Industry Endowment Fund (the Fund), which was established under the Science and Industry Endowment Act 1926. It also includes a report by the Auditor-General on the accounts of the Fund. The Corporate Commonwealth Annual Reporting Rule requires CSIRO to report any significant activities and changes that affected the organisation or structure. During the annual reporting period, CSIRO established the role of Chief Scientist as an additional member of the Executive Team. We are proud of CSIRO’s achievements this year. Mr David Thodey AO Dr Larry Marshall Chairman of the CSIRO Board Chief Executive of the CSIRO CSIRO Australia’s National Science Agency ii CSIRO Annual Report 2018–19 Contents Part 1 1 Overview 2 Foreword by the Chairman 4 Chief Executive’s report 6 About us 7 Our strategy 12 Managing national research infrastructure for the nation 13 Developing the best talent Part 2 15 Our people 18 Our People Strategy 20 Indigenous engagement 20 Celebrating our people’s achievements 24 Our organisational structure Part 3 27 Annual performance statement 28 Introductory statement 28 Purpose 28 Results 29 Mission-directed research and development 60 Managing national research infrastructure 72 Developing national science talent 78 Enabling a healthy and sustainable organisation Part 4 89 Management and accountability 90 Government engagement 91 Governance 100 Service charter 101 Administrative Law 102 Consultancy services Part 5 105 Financial statements 106 Independent Auditor’s report 108 Financial statements Part 6 151 Science and Industry Endowment Fund 152 Trustee’s report 153 SIEF Performance report 159 Independent Auditor’s report 161 SIEF financial statements Part 7 171 Indexes 172 Our sites 174 Acronyms 175 Glossary 177 Index 187 Statement of Expectations index 188 Compliance index: statutory reporting requirements 191 Contact us iii We’re monitoring flying foxes in far north Queensland as part of our work in ensuring resilient and valuable environments. iv CSIRO Annual Report 2018–19 Part 1 | Overview 2 Foreword by the Chairman 4 Chief Executive’s report 6 About us 9 Our strategy Part 1 | Overview 1 Foreword by the Chairman There’s never been a more important time for Australia to think differently about our future. As Australia’s national science agency, CSIRO is building on a century of delivering national benefit to deliver innovative solutions that protect our quality of life, our economic health, our environmental sustainability, and our position in a globally competitive world. Our cutting-edge science and application of The ANO offers two scenarios – a bleak vision if we technology, the passion of our diverse people, and don’t change our current activities, and a bright our innovative thinking are focused on solving the vision of the future if we seize the opportunities greatest challenges. I am proud to have experienced offered by science and technology to build a future the many achievements of CSIRO this year. with prosperous and globally competitive industries, inclusive and enabling communities, and sustainable We are one of the world’s largest mission-driven natural endowments. It has started an important and multidisciplinary science and research organisations. timely conversation in Australia about how we act We focus on every aspect of Australia’s priorities – now to build the future we want. from agriculture, to manufacturing, data technology, the environment and much more. Our people are committed to unlocking a better Examples highlighted in this annual report include future for everyone and are the driving force sustainable wheat farming, drought conservation, behind all that we do. reducing waste in copper production, protecting The Board and I were pleased to meet with CSIRO precious wildlife species, and applying emerging people and partners during our Board visits to sites new technologies like machine learning to amplify including Perth, Canberra, Eveleigh, Newcastle the pace and scale of our impact. and Lindfield over the past 12 months. We were In June, we partnered with the National Australia especially pleased to meet with Newcastle-based Bank to publish the Australian National Outlook business and CSIRO partner, Puzzle Precision, whose 2019 (ANO), with the participation of more sophisticated electronic circuit boards are being used than 50 leaders from over 20 organisations. inside the world’s fastest survey radio telescope, the Australian Square Kilometre Array Pathfinder in Western Australia. 2 CSIRO Annual Report 2018–19 Our more than 3,300 customers this year are critical to our ability to translate science into solutions for Australia. This annual report tells many stories of the value we’re delivering to our partners and customers across industry and business, government and the research community, as well as to every Australian. I want to thank the CSIRO team for their commitment and dedication to fulfilling the purpose of our organisation. I’m honoured to be part of Australia’s national science agency as we continue our work to make life better for every Australian. Mr David Thodey AO Chairman of the CSIRO Board Part 1 | Overview 3 Chief Executive’s report For more than 100 years, CSIRO has been solving the greatest challenges through innovative science and technology. Every day, our people get out of bed fuelled by a passion for unlocking a better future for our community, our economy and our planet. As you will see they continue to do an outstanding job of delivering on our purpose. In this annual report, you’ll see some of our ore sorting to rapidly determine ore quality. world-class science translated into high-impact The report also shows progress on the capability solutions aligned with the six national challenges programs that are enabling this transformation, we’ve identified. These challenges leverage the including our Digital Academy and our Managed strengths of our strong networks of partners from Data Ecosystem. government, industry, business, academia and the Importantly, CSIRO doesn’t solve any of these community around common goals to create unique challenges alone. We collaborate with every advantages for Australia. They are designed to Australian university, government department, connect our purpose with the issues that matter across Australia’s major industries with businesses most to Australians: food, health, environment, of all sizes, and internationally. This year we worked sustainable energy and resources, future industries, with more than 3,300 customers, including 377 and a secure Australia and region. Australian corporations, 375 international corporates, I’m proud and honoured to look back on all team and over 950 small to medium enterprises. Some of CSIRO has achieved this year. From extracting our most significant collaborations this year included ultra-high purity hydrogen from ammonia and expanding our 30-year partnership with Boeing into powering fuel cell vehicles, to collecting data about space science, and signing a $20 million partnership the Great Barrier Reef to protect this treasured with Fortescue to develop hydrogen technologies, Australian landmark, to launching the Future of both investments in industries of the future. Health report so we can keep Australia’s health Australia’s future depends on a strong community system efficient, equitable and affordable. These are of STEM professionals and advocates. To inspire projects that are critical to ensuring Australia’s future the next generation, we delivered programs to sustainability, prosperity, and security. more than 190,000 primary and secondary school Following our success in digital agriculture, this year students, promoting STEM capability, development we’ve continued our digital transformation across and education in the classroom. We also lifted our the full depth and breadth of CSIRO’s deep domain profile by participating in the world-famous Sydney expertise, from manufacturing to health and others, Gay and Lesbian Mardi Gras Parade and promoting to accelerate the pace and scale of our impact. our stories through the media to a combined This annual report captures some early examples of audience of more than 22 million people this year. In the power of combining digital tech with domain a world where trust is still under pressure, CSIRO is expertise, like combatting the impact of drought one of Australia’s most trusted brands, alongside the with the National Drought Map and developing the Australian Red Cross and the Bureau of Meteorology. world’s most advanced sensor system for large-scale 4 CSIRO Annual Report 2018–19