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APEC Aviation Emission Taskforce Meeting Auckland 30 th /31 st July 2008. Carbon Accounting. Martin Fryer Sustainability Advisor Auckland Airport. Content. Auckland Airport - The Gateway to New Zealand Climate Change and Sustainability The Principles of Carbon Accounting
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APEC Aviation Emission Taskforce Meeting Auckland 30th/31st July 2008 Carbon Accounting Martin Fryer Sustainability Advisor Auckland Airport
Content • Auckland Airport - The Gateway to New Zealand • Climate Change and Sustainability • The Principles of Carbon Accounting • Carbon Accounting Standards • Carbon Accounting Methodology • AIAL Emission profiles FY06 to FY08 • KPI/Targets/Carbon Neutrality • Drivers/Initiatives/Next Steps • Questions
Auckland Airport Essential infrastructure asset Second busiest for international passengers in Australasia Second ranked freight port (sea and airports) by value Total freehold land 1,500 hectares Over 70% of international passengers 12 million passenger movements annually 105 international and 322 domestic flights processed every day 53,000 shareholders 19,200 people work in the airport area 23% owned by Auckland and Manukau City councils
Economic impact study $19 billion – the value airport adds to NZ economy 13.7% – airport’s contribution to NZ GDP 283,000 – FTE jobs sustained nationally $12.5 billion – value of international freight and 16% of NZ total $10.7 billion – the value airport adds to Auckland economy 153,900 – FTE jobs sustained in Auckland 25.1% – of region’s GDP 25.2% – of region’s employment Auckland Airport Economic Impact Assessment was prepared by independent New Zealand based consultancy, Market Economics (2007)
Climate Change and Sustainability Operate in a safe, secure, sustainable and efficient manner • Sustainability is an integral part of our company vision “representing our country” and is inherent in our new branding. • Comprehensive five year sustainability action plan covering fourteen key areas of our environmental, social and economic performance. • First sustainability report FY07 included public disclosure of our carbon footprint. • Responded to the Carbon Disclosure Project 2007 and 2008.
The Principles of Carbon Accounting RELEVANCE Ensure inventory appropriately reflects the emissions of the company and serves the decision-making needs of users – both internal and external to the company. COMPLETENESS Account for and report on all emission sources and activities within the chosen inventory boundary. Disclose and justify any specific exclusions. CONSISTENCY Use consistent methodologies. Transparently document any changes to the data, inventory boundary, methods, or any other relevant factors in the time series. TRANSPARENCY Address all relevant issues in a factual and coherent manner, based on a clear audit trail. Disclose any relevant assumptions and make appropriate references to the accounting and calculation methodologies and data sources used. ACCURACY Ensure that the quantification of GHG emissions is neither under or overstated and that uncertainties are reduced as far as practicable. Achieve sufficient accuracy to enable users to make decisions with reasonable assurance as to the integrity of the reported information.
Carbon Accounting Standards Two standards available: ISO14064-1 “Specification with guidance at the organizational level for quantification and reporting of greenhouse gas emissions and removals” 2006. www.iso.org “Greenhouse Gas Protocol - A Corporate Accounting and Reporting Standard Revised” World Business Council for Sustainable Development (WBCSD) and World Resources Institute (WRI) 2007 www.ghgprotocol.org
Carbon Accounting Methodology Setting Organizational Boundaries Equity share approach Under the equity share approach, a company accounts for GHG emissions from operations according to its share of equity in the operation. Control approach Under the control approach, a company accounts for 100 percent of the GHG emissions from operations over which it has control (financial or operational). Setting Operational Boundaries Have to be comprehensive with respect to: Direct GHG emissions - emissions from sources that are owned or controlled by the company. Indirect GHG emissions - emissions that are a consequence of the activities of the company but occur at sources owned or controlled by another company.
Carbon Accounting Methodology Setting Operational Boundaries Scope 1: Direct GHG emissions Direct GHG emissions occur from sources that are owned or controlled by the company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles. Scope 2: Electricity indirect GHG emissions Scope 2 accounts for GHG emissions from the generation of purchased electricityconsumed by the company. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organizational boundary of the company. Scope 2 emissions physically occur at the facility where electricity is generated. Scope 3: Other indirect GHG emissions An optional reporting category that allows for the treatment of all other indirect emissions. Scope 3 emissions are a consequence of the activities of the company, but occur from sources not owned or controlled by the company. Some examples of scope 3 activities are extraction and production of purchased materials; transportation of purchased fuels; and use of sold products and services.
KPI/Targets/Carbon Neutrality KPI • Has to be based on emissions intensity to allow for growth: • CO2/pax • CO2/aircraft movement Targets • Auckland Airport has a target of a 10% reduction in emissions per international passenger by 2012 (Adjusted FY06 base year). Carbon Neutrality • Auckland Airport signed the ACI declaration on climate change in April 2008. • Working towards carbon neutrality. • Proceeding with caution (Inclusion/exclusion of scope 3 could be significant, NZ ETS, price of carbon, carbon neutral status of fuel and energy purchased).
Drivers/Initiatives/Next Steps Drivers • Representing Our Country - a sustainable destination • Negative public perception of aviation/climate change and air travel potential negative impact • New Zealand Sustainable Tourism Strategy 2015 • Company stakeholder expectations Initiatives/Next Steps • GPU have been installed to allow airlines to switch off APU • CAT III lighting installed to ensure landings even in fog conditions (reducing diverts and fuel burn) • Operational efficiency improvements assisting with OTP • Work with Auckland Regional Transport Authority to further improve public transport to the airport • Development of our travel plan to improve surface access for employees and passengers.
Drivers/Initiatives/Next Steps Initiatives/Next Steps • Pro-active energy conservation group • Energy audit underway and energy management plan that will be shared with retailers and tenants • Continue to produce annual profile • Continue to respond to CDP • Continue to investigate emissions from construction as an indicator for the sustainable development of airport infrastructure • Produce a whole of airport operations profile (including LTO emissions) • Put Auckland Airports’ profile in the context of “the whole airport operations” • An airport company with a 10,000 tonne profile may only contribute 5% of total emissions therefore whole of airport profile could be 200,000 tonnes p.a. - offsetting the 5% could be seen as greenwash. • Continue to investigate best practice and benchmarking.
