Energy Efficiency Opportunities Report Delivering on our commitments

Transcription

1 Energy Efficiency Opportunities Report 2013 Delivering on our commitments 1 ENERGY EFFICIENCY OPPORTUNITIES REPORT 2013

2 Contents Achieving our carbon reduction target 3 Developing renewable energy technologies 4 Leveraging our innovative work spaces 6 Leading environmental reporting 7 Conclusion 9 2 ENERGY EFFICIENCY OPPORTUNITIES REPORT 2013

3 At the Commonwealth Bank Group (the Group) sustainability informs the way we do business. It is about building a successful business today and delivering value over the long-term. The Group continuously looks to implement programs and initiatives that assist our customers, engage our people, support our communities and lessen the impact our business activities have on the environment. The Group is also committed to reporting transparently and providing comprehensive and regular information on our non-financial performance to our stakeholders. The report provides an overview of the progress we have made over time and the opportunities we have identified in light of the Energy Efficiency Opportunity (EEO) Act. This report focuses on our environmental sustainability initiatives and achievements for the period from July 2012 to June You can find out more about our approach and commitment to creating a sustainable future for all our stakeholders at commbank.com.au/sustainability 2013 Achieving our Carbon Reduction Target Our 20 per cent carbon reduction target from levels by June 2013 represented an overall reduction of 34,550 tonnes of carbon equivalent (tco 2 -e). Over the past four years, our emissions have steadily declined, and we reached our target in January 2013, five months ahead of schedule. We have since continued to curb our emissions and as at 30 June 2013, we had surpassed our target by an additional 10,658 tco 2 -e. To achieve our target we implemented a number of energy efficiency projects in our office, branch and tool-of-trade portfolios, including: The Green Refresh Program to replace outdated lighting in 869 branches. A Group-wide program to upgrade the heating, ventilation and air conditioning (HVAC) systems in 50 branches and 12 commercial buildings. The rollout of IT software to hibernate all PC s (desktops and laptops) when not in use. The staged replacement of conventional laptops with Apple MacBook Airs, which consume approximately 30 per cent less energy. The replacement of approximately 1,000 six cylinder vehicles with four cylinder vehicles in our tool-of-trade fleet. We also began using more efficient types of fuel and educated our drivers about driving efficiency and fuel usage. The design, development and implementation of one of the most ambitious corporate consolidations in Australia with the relocation of more than 19,000 employees from 19 buildings across Sydney to 3 purpose built and sustainable campuses such as the award-winning Commonwealth Bank Place in Sydney s Darling Quarter. A cross-business unit team is now focusing on how best to move beyond our 20 per cent carbon reduction target. New targets will be announced in Carbon Reduction Target Tracking (tco 2 -e) 3 ENERGY EFFICIENCY OPPORTUNITIES REPORT 2013

4 Developing Renewable Energy Technologies Since 2004, the Group has been a senior investor in clean and renewable energy projects in Australia and New Zealand, starting with a single wind farm at Lake Bonney in South Australia. Our participation in this industry is a long-term commitment requiring a significant investment in resources, knowledge and skills. During the reporting period we extended our portfolio to include two more project financing transactions: Waterloo wind farm and Uterne solar farm. Waterloo Wind Farm Waterloo wind farm generates clean energy for a number of homes in South Australia. The wind farm has: 37 turbines mounted on 80-metre high towers; a generation capacity of 111 megawatts (MW); and 1.8kms of 132-kilovolt transmission line that connects the Waterloo substation to the South Australian network via the Waterloo East substation. In August 2012, the Group was appointed joint lead arranger in a $200m facility to expand the wind farm by a further six turbines. Case Study: Uterne Solar Power Station Project Financing for a bright sunny day Uterne means bright sunny day in the language of Alice Springs local Arrente people, and is the perfect name for a solar project located in one of the world s best solar energy resources. The Uterne solar power station was acquired by Australian renewable energy developer Epuron in 2012, with financing provided by Commonwealth Bank the first Australian bank to successfully finance a utility scale solar PV power plant. The Uterne solar power station is comprised of high efficiency SunPower solar panels installed on single axis trackers that follow the sun during the day. The system is projected to produce 2,300 megawatt hours (MWh) of electricity per year, equivalent to the annual consumption of 270 average Alice Springs households. Uterne will produce about 1% of Alice Springs electricity a year and can meet 2% of peak demand on a sunny day. The project was developed by SunPower with the support of Power and Water Corporation (the Northern Territory Government s utility company). Under Australia s first-ever utility-backed power purchase agreement, Power and Water Corporation buys generated electricity at a guaranteed rate for a 20-year term. The Commonwealth Bank leveraged its renewables financing, carbon solutions and risk management capabilities to provide Epuron with a total capital solution across project and asset financing, interest rate risk management and transactional banking. Neil Hereford, Commonwealth Bank s Head of Carbon Solutions, emphasises the significance of the transaction in terms of the ongoing development of the renewables market. It s important to get people comfortable with solar projects and to understand the technology and the risk, Hereford said. The market for solar PV systems of 1MW and above in Australia is expected to grow rapidly in coming years, particularly in regional areas with good sun, and in remote and off-grid areas. Since 2004 the Group has consistently invested in the renewable energy sector globally and is a significant lender to a wide range of projects including wind farms, solar, landfill and waste gas, biomass and hydro. We remain committed to the continued development of the renewable energy and carbon markets. 4 ENERGY EFFICIENCY OPPORTUNITIES REPORT 2013

5 Recent Awards We are proud to be the recipient of two significant awards during this reporting period: United Nations Association of Australia (UNAA) World Environment Day Green Building Award. NSW Government Sustainability Advantage Program. UNAA In 2013 we were awarded the United Nations Association of Australia (UNAA) World Environment Day Green Building Award in conjunction with FJMT (architects) and Lend Lease (construction). Each year the UNAA recognises innovative and outstanding environmental programs and initiatives from across Australia and the important work of Australian environmental leaders through its World Environment Day Awards. The preeminent national awards play an important role in raising awareness about key environmental issues and challenges, as well as inspiring and motivating individuals, organisations and businesses to take positive steps towards sustainability and environmental excellence. Sustainability Advantage In 2013 we received the Government s Office of Environment & Heritage Silver Partner NSW Sustainability Advantage Program Award in recognition of our significant environmental achievements. The Sustainability Advantage program recognises organisations that are committed to sustainability and achieving real environmental improvements. James Peacock, Executive Manager Environmental Sustainability is presented with the Sustainability Advantage Silver award by the Hon Robyn Parker. The environmental achievements of Sustainability Advantage members, like the Commonwealth Bank, are the result of company commitment and the skills and dedication of individual staff. I congratulate you on your commendable achievements, being part of Sustainability Advantage and collaborating with each other and the NSW Government, to create such impressive, long-term results for your businesses, our local economy, environment and communities. The Hon Robyn Parker, MP Minister for the Environment 5 ENERGY EFFICIENCY OPPORTUNITIES REPORT 2013

6 Leveraging our innovative work spaces Following the success of Commonwealth Bank Place, Bankwest has since adopted the activity based working (ABW) concept within its new head office relocation to Bankwest Place in WA, housing 3,000 employees. Bankwest s new workplace for collaboration Bankwest Place (BWP) became fully occupied in August 2012, and a recent survey of staff found that 83 per cent of respondents would not want to return to their previous way of working. BWP moves away from the traditional static work stations to innovative work spaces designed to foster collaboration. Staff are provided with laptops and wireless technology which provide greater mobility and flexibility. This new way of working which combines flexible working spaces and enabling technology is known as Activity Based Working (ABW). By adopting ABW principles similar to the successful Commonwealth Bank Place development, we reduced the number of floors needed at BWP from 18 to 13, while still accommodating 3,000 employees who moved from five individual locations. Key building attributes include: The building is targeting a 5-Star Green Star rating for the interior fit-out. Inter-connecting central staircases, to connect employees and discourage lift use. Work spaces located on the northern and southern façades, taking advantage of natural light. Laptops with built-in video cameras, to promote face-to-face communication without leaving work areas, increasing time efficiency. Flexible phone technology and wireless network throughout the building. Secure follow me printing installed to minimise paper wastage. 6 ENERGY EFFICIENCY OPPORTUNITIES REPORT 2013

7 Leading Environmental Reporting The Group recognises its role in addressing climate change and the challenge of transitioning to a society that is less reliant on carbon-intensive energy sources. We are committed to ongoing and transparent reporting. Our current reporting activities include: Climate Disclosure Project (CDP) CDP tracks how the world s largest listed companies are demonstrating strategies committed to improving their impacts on the environment. In 2013 the Group was the highest ranked Australian bank listed on the Climate Performance Leadership Index (CPLI) and through our ongoing commitment to environmental stewardship, we have achieved: an overall disclosure score of 94, from a possible 100; a place on CDP s ASX 200 Climate Disclosure Leadership Index; A band for climate performance; a place on CDP s Global 500 Climate Performance Leadership Index; and a place on CDP s ASX 200 Climate Performance Leadership Index. We are pleased to be featured globally on the 2013 CPLI but our work does not stop here. We remain committed to looking at ways we can improve and reduce our carbon footprint even further, Andrew Hall, Executive General Manager Corporate Affairs. For their 2013 submission the Commonwealth Property Office Fund (CPA) and CFS Retail Property Trust Group (CFX) jointly recorded the highest score for disclosure this year, with a score of 100. This is the fourth consecutive year that both CPA and CFX have been included in the Climate Disclosure Leadership Index (CDLI). In addition, CPA was included in the Climate Performance Leadership Index (CPLI) for the third consecutive year. CFX was also included in the Climate Performance Leadership Index for National Greenhouse and Energy Reporting (NGER) Scheme The Group has continued to leverage its advanced data management systems and internal expertise to comply with NGER requirements. Energy Efficiency Opportunity (EEO) Act With the EEO s second five-year reporting cycle well underway, the Group has programs to allow for the continuous identification of opportunities for improvement. The Group s five-year assessment plan, covering the Commonwealth Bank, Bankwest and Colonial First State Global Asset Management, was submitted and approved by the Group s Board during the last reporting period. You will find further information around the Group s EEO program on page 8 of this report. Our approach focuses on real change rather than simply window dressing. We have worked hard to exceed our carbon reduction target and improve the environmental standards of our fleet, retail and commercial portfolios, and we are pleased to have this recognised. Andrew Hall, Executive General Manager Corporate Affairs We congratulate Commonwealth Bank on its actions to mitigate climate change and reduce its emissions; making it the highest scoring Australian bank included on the 2013 CPLI. Paul Simpson, CDP Chief Executive Officer 7 ENERGY EFFICIENCY OPPORTUNITIES REPORT 2013

8 FTSE4GOOD The Group has been recognised again by the FTSE4GOOD this year. The FTSE4GOOD measures the performance of companies that meet globally recognised corporate responsibility standards. Dow Jones Sustainability Indices (DJSI) The Group was again listed on the DJSI Asia pacific Index this year, while CPA and CFX were included in the DJSI World, DJSI Asia Pacific and the Australian Sustainable Asset Management Sustainability Index (AuSSI) indices in Global Real Estate Sustainability Benchmark (GRESB) CPA ranked number one and CFX third of all real estate investment trusts (REIT) globally for the 2013 GRESB survey submission. CFX was also ranked second of all REITs in Oceania. EEO 2nd five-year Assessment Cycle The Group has a long history of pursuing energy efficiency and has been an active participant in the EEO program since its inception, while also making a seamless transition into the second five-year EEO assessment cycle. Within the Group s banking arm (CBA & Bankswest), our approach is to proactively conduct assessments early in the cycle, so that viable opportunities can be evaluated and implemented sooner rather than later. Following approval of our second cycle Assessment Plan, we have embarked on representative assessments across our Retail and Commercial portfolios, with completion scheduled during FY14. A representative assessment of the Group s tool-of-trade vehicle fleet will also be conducted during FY14, which will include: analysis & review of historical data; discussions with internal stakeholders around business objectives; review of current procurement practices; and workshop to plan energy efficiency opportunity implementation. During FY13 the Group celebrated the achievement of its 20 per cent carbon reduction target. This goal represented an overall reduction of 34,550 tonnes of carbon (tco 2 -e). We met the target early and went on to surpass the target by an additional 10,658 tco 2 -e, as at 30 June This achievement can be traced back to the early work conducted during the first EEO cycle, in which portfoliowide projects were identified, approved and progressively implemented. Within the Group s Wealth Management portfolio, several assessments have been conducted and checks are now scheduled to occur periodically as part of our ongoing stewardship to protect these existing assets. Energy management activities and reporting have become key components of our business as usual approach to best practice property management. Through the work conducted during the second EEO assessment cycle, the Group has identified approximately 341,000 GJ of annual energy savings and further savings are anticipated. Sustainability Advantage / the Office of Environment & Heritage congratulated the Commonwealth Bank for achieving excellence in sustainability which requires continued commitment, a long-term strategy, and the drive to continuously improve practices and implement innovative projects. Office of Environment & Heritage. 8 ENERGY EFFICIENCY OPPORTUNITIES REPORT 2013

9 The table below summarises the number of opportunities identified, the estimated energy savings per annum (GJ) by payback period and the total estimated energy savings (GJ) per annum, during the second cycle (covering the period 1 July 2011 to 30 June 2013). Status of opportunities identified to an accuracy of better than or equal to ±30% Total number of opportunities Estimated energy savings per annum by payback period (GJ) No of opps 0 2 years 2 4 years > 4 years GJ No of opps GJ No of opps GJ Total estimated energy savings per annum (GJ) Implemented , , ,324 56,407 Business response Implementation commenced , ,714 14,705 To be implemented , , ,854 33,898 Under investigation , , , ,876 Not to be implemented , , ,787 13,769 Assessment outcomes Total identified , , , ,655 Conclusion Like any business, our operations have direct and indirect impacts on the environment. By managing these impacts better, we have greater control of our business costs, manage our portfolio risks better and thus continue to improve our long-term shareholder returns. 9 ENERGY EFFICIENCY OPPORTUNITIES REPORT 2013