Vector Annual Report 2017

BUSINESS UNITS: People, safety & risk – Continued

ENVIRONMENT Following the completion of environmental risk assessments across our business units in 2016, Vector’s executive leadership team endorsed a three-year Environmental Strategy. We successfully completed the first milestones of this strategy, including achieving ISO14001 certification of our environmental management system and completing a reassessment of our carbon footprint. We also outperformed our target for

completion of environmental improvement plan actions. For the FY17 year we have focused on scope 1 and 2 emissions, being our direct emissions and indirect emissions from the use of energy, including electricity and steam. The majority of our emissions emanate from our Kapuni Gas Treatment Plant. We are currently investigating a range of new technologies to support planned reduction initiatives. We are also using an environmental reporting

system (BraveGen) to support the management of our carbon and other environmental data. During FY18 we will continue to compile data relevant to our indirect scope 3 emissions, establish carbon reduction targets and continue to mature our environmental reporting. From July 2016 to June 2017, Vector enabled 22,701 rapid electric vehicle charging sessions and delivered 180.6MWh of electricity to EV users. This amount of electricity would allow a Nissan Leaf to drive 1,039,317km, saving 195,641 kg of CO 2 e emissions compared with using a petrol-powered vehicle. Limited assurance has been provided over our scope 1 and 2 emissions inventory by Ernst & Young New Zealand Limited. Refer to page 60.

CARBON BASELINE

Scope 1: 340,176 tC0 2 Scope 2: 31,597 tC0 2

TARGET 66% ACHIEVED 85%

e*

e*

CARBON AVOIDED THROUGH

Of environmental improvement plan actions completed

EV Chargers: 195,641 kg C0 2

e*

TOP 5 EMISSION SOURCES

ISO

14001

0.3%

8.7%

0.4%

8.3%

Certification achieved for New Zealand and Australia business

82.3%

3,592

 KAPUNI GAS TREATMENT PLANT – GAS PROCESSING (tCO 2 e)  VECTOR LIMITED – ELECTRICITY – TRANSMISSION & DISTRIBUTION LOSSES (KWH)    ONGAS NEW ZEALAND – DIESEL (L)    VECTOR LIMITED – NATURAL GAS – FUGITIVE EMISSIONS (GJ)   NETWORKS – DIESEL (L)

Students attended sustainability schools programme

* Carbon data is inclusive of the co-generation facility at Kapuni Gas Treatment Plant, which has been apportioned 50% between the two joint venture parties but excludes emissions from our newly acquired businesses, PowerSmart NZ Limited and E-Co Products Group Limited, which were acquired on 31 March 2017.

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Vector://AR 17

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