Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable procurement
• Waste management
• Climate change
• Sustainable employment
• Diversity and Inclusion
• Living wage
• Accredited employer
• Health, safety, and wellbeing
• Supporting superannuation
• Community impact and charitable giving
• Ethical business
• Respecting stakeholders
• Shareholder rights
• Board governance and transparent reporting
• Balance sheet strength and measured investment

Environmental Achievements

• 58.8% absolute reduction in scope 1 GHG emissions by 2034, on a 2024 base year.
• 58.8% absolute reduction in scope 2 GHG emissions by 2034, on a 2024 base year.

Social Achievements

• Not disclosed

Governance Achievements

• Established internal governance processes for identifying and managing climate-related risks and opportunities
• Integrated climate-related risks into the Enterprise Risk Management Framework

Climate Goals & Targets

Environmental Challenges

• Increased legislative and regulatory requirements relating to climate change in New Zealand and Australia
• Shifting consumer preferences
• Impact of the transition to a low-emissions economy on the fleet of terminal assets and suppliers
• Potential supply chain disruptions due to climate change

Mitigation Strategies

• Continuing to refurbish returned terminals to extend their lifespan
• Ensuring end-of-life management through e-waste recycling services
• Actively moving to an Everything as a Service (XaaS) environment
• Transitioning to outsourced Infrastructure as a Services (IaaS)
• Holding higher stock holdings in multiple locations to diversify risk of exposure to shipping route disruption
• Developing technology to allow multiple vendor terminals to be utilized
• Monitoring the response of and engaging with top 10 suppliers
• Inserting requirements to provide data to support Smartpay’s reporting requirements in material supplier agreements

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Monitoring the response of and engaging with top 10 suppliers
• Inserting requirements to provide data to support Smartpay’s reporting requirements in material supplier agreements

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity and frequency of extreme weather events
• Rising mean temperatures and sea levels
• Increase in bushfires/wildfires
• Increase in daily temperatures
• Increase in coastal flooding
• Change or disruption in shipping routes
• Increase in pluvial (surface water) flooding
• Smartpay employees unable to get to and from work and Merchant sites
• Increase in localised power outages
• Freight disruptions caused by extended sea-freight periods

Transition Risks

• Shifting consumer preferences
• Transition to degrowth economic models
• Decrease in availability and increase in cost of insurance
• Failure to take action on climate change
• Fire risk associated with lithium-ion batteries
• Employees dissatisfied with Smartpay’s transition to a low emissions economy
• Impacts of climate change on mental health and safety in the workplace
• Lack of internal knowledge and capability on climate change
• Increased legislative and regulatory requirements on climate change
• Requirement to participate in carbon market
• Introduction of carbon tax
• Legislative and regulatory requirements on products
• Greenwashing potential
• Not meeting reporting requirements
• Failure to take climate action
• Continuing to engage suppliers not compliant with climate-related legislation
• Transition to low-emissions technology
• Failure to reduce energy use and GHG emissions
• Single supplier risk associated with Smartpay’s terminal supplier
• Supplier goods and services cannot decarbonise at pace required
• Carbon taxes/cost of carbon passed through the value chain

Opportunities

• Shifting consumer preferences
• Development of low-emissions products
• Engagement with merchants on climate-related risk
• Access to capital/finance/insurance
• Decarbonisation of Smartpay
• New ways of low emissions working
• Climate-related employee activations
• Build internal capability and expertise on climate change
• Industry advocacy on extension of terminal lifespans and Merchant receipt requirements
• Leverage experience from Aotearoa New Zealand Climate Standards reporting in Australia
• Transition to a low-emissions economy
• Transition to low-emissions technology
• Diversification of business activities
• Diversification of suppliers
• Freight consolidation
• Transition to renewable energy sources

Reporting Standards

Frameworks Used: Aotearoa New Zealand Climate Standards

Certifications: ISO 14064-1:2018

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed