Carbon AccountingMartin FryerSustainability AdvisorAuckland Airport

APEC Aviation Emission Taskforce MeetingAuckland 30th/31st July 2008

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)

Our vision

Auckland Airport CO2e Emissions Profile 2007

6,652

1,695

196 18412

2 48 14 9 98

1,565

10,708

0

2,000

4,000

6,000

8,000

10,000

12,000

To

nn

es C

O2e

Electricity (AA)

Natural Gas (AA)

Petrol 91

Petrol 96

Diesel

AvGas

JetA1

Air Travel Short Haul <500km

Air Travel Medium Haul 501 -1,600km

Air Travel Long Haul >1,601km

Construction Emissions

Total

Climate Change and Sustainability• 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.

Operate in a safe, secure, sustainable and efficient

manner

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 StandardsTwo 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 MethodologySetting Organizational BoundariesEquity share approachUnder the equity share approach, a company accounts for GHG emissions from operations according to its share of equity in the operation.

Control approachUnder 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 BoundariesHave 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

Scope 1: Direct GHG emissionsDirect 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 emissionsScope 2 accounts for GHG emissions from the generation of purchased electricity consumed 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.

Setting Operational Boundaries

AIAL Emissions Profile FY06 to FY08

FY06 FY07 FY08

Natural Gas 61 1,752 1,846

Petrol 91 218 207 192

Petrol 96 44 42 29

Diesel 320 314 294

AvGas 3 2 0

JetA1 77 48 77

Electricity 2,386 6,585 6,833

Staff Air Travel Short Haul <500km 41 24 24

Staff Air Travel Medium Haul 501 -1,600km 1 8 12

Staff Air Travel Long Haul >1,601km 130 73 78

Construction 2,240 1,903 3,184

Totals 5,520 10,958 12,735

AIAL Emissions Profile FY08

Energy FY08 usage Unit CO2e (t) Total CO2e (t) Source

Natural Gas

35,242,000 MJ 0.00005239 1,846 The Framework for a NZ ETS MfE September 2007

Petrol 91 82,558 l 0.00232 192 The Framework for a NZ ETS MfE September 2007

Petrol 96 12,002 l 0.0024 29 The Framework for a NZ ETS MfE September 2007

Diesel 108,402 l 0.00271 294 The Framework for a NZ ETS MfE September 2007

AvGas 0 l 0.00217 0 The Framework for a NZ ETS MfE September 2007

JetA1 30250 l 0.00254 77 The Framework for a NZ ETS MfE September 2007

Electricity

29,708,661 kWhr 0.00023 6,833 Energy & Emissions 1990-2006 MED June 2007

Staff Air Travel Short Haul <500km 150,604 km 0.000159 24

Guidelines to GHG Conversion Factors for Company Reporting DEFRA 2007

Staff Air Travel Medium Haul 501 -1,600km 88,654 km 0.000132 12

Guidelines to GHG Conversion Factors for Company Reporting DEFRA 2007

Staff Air Travel Long Haul >1,601km 729,472 km 0.000107 78

Guidelines to GHG Conversion Factors for Company Reporting DEFRA 2007

      Sub Total 9,384  

AIAL Construction Emissions FY08Pavement & NRD Works FY08 usage Unit kgCO2/unit Total CO2e (t)  

Concrete (40MPa) 3,058 m3 466 1,425CBPR Embodied energy and CO2 coefficients for NZ building materials Alcorn 2001

Steel (reinforcing) 16,221 kg 0.352 6CBPR Embodied energy and CO2 coefficients for NZ building materials Alcorn 2001

Cement 60,000 kg 0.994 60CBPR Embodied energy and CO2 coefficients for NZ building materials Alcorn 2001

Asphalt 234,000 kg 0.0146 3CBPR Embodied energy and CO2 coefficients for NZ building materials Alcorn 2001

Aggregate 595 m3 3.5 2CBPR Embodied energy and CO2 coefficients for NZ building materials Alcorn 2001

Diesel (Construction) 371,182 l 2.71 1,006 The Framework for a NZ ETS MfE September 2007

Pier B          

Concrete (40MPa) 36 m3 466 17CBPR Embodied energy and Co2 coefficients for NZ building materials Andrew Alcorn 2001

Concrete (30MPa) 418 m3 390 163CBPR Embodied energy and Co2 coefficients for NZ building materials Andrew Alcorn 2001

Concrete (10MPa) 45 m3 282 13CBPR Embodied energy and Co2 coefficients for NZ building materials Andrew Alcorn 2001

Steel (structural) 340,000 kg 1.242 422CBPR Embodied energy and Co2 coefficients for NZ building materials Andrew Alcorn 2001

Steel (reinforcing) 70,000 kg 0.352 25CBPR Embodied energy and Co2 coefficients for NZ building materials Andrew Alcorn 2001

Diesel 15,925 l 0.00271 43 The Framework for a NZ ETS MfE September 2007

      Sub Total 3,184  

KPI/Targets/Carbon NeutralityKPI • 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 StepsDrivers• 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 StepsInitiatives/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.

Tene rawa atu koe

Thank you

Any questions?