Climate Change Data

Environmental Metrics

ESG Focus Areas

• Transparency and open communication
• Environment, climate and energy transition
• Wellbeing of people
• Commercial opportunities

Environmental Achievements

• Reduced or offset emissions from corporate travel and certain other office-related activities at corporate HQ; planted 3,564 trees to offset head office emissions (estimated 811 tonnes of carbon removed).

Social Achievements

• Achieved a Rainbow Tick; implemented initiatives to keep people safe during the pandemic lockdown; maintained Kupe production station operations through lockdown as an essential service with no incidents; supported the Cosy Homes Trust, Dunedin Curtain Bank, and school science fairs; Capturing Local Economic Benefits policy adopted.

Governance Achievements

• Aligned risk management processes, governance and reporting with Task Force on Climate-Related Financial Disclosures (TCFD) framework; provided TCFD training for executive management; established formal limits of authority to provide clarity to the chief executive and management; adopted a Diversity Policy with measurable objectives.

Climate Goals & Targets

Environmental Challenges

• Continued effects of the Covid-19 global health crisis; dramatic demand destruction that sent oil prices tumbling; delays to onsite construction and global logistical paths due to the pandemic; potential for increased stakeholder disengagement and oppositional activism; risks of increasingly severe and frequent weather events; risks of long-term changes in demand and prices, access to investment capital and risks of regulatory responses to climate.

Mitigation Strategies

• Transitioned to a fully work-from-home operation with little disruption; portfolio is well-insulated from dramatic price swings; Kupe was recognised as an essential service, so production continued uninterrupted; robust internal processes; monitor jurisdictions where activities are undertaken; actively participate in New Zealand’s environmental regulation framework; strengthen corporate environmental performance; due diligence screening of commercial opportunities; consider internal shadow price on carbon; seek to align with JV partner approaches; robust reporting on ESG matters; jurisdictional diversification; robust engineering for anticipated environmental conditions; embedding internal procedures to ensure potential climate impacts are considered in development design; strategic preference for natural gas; partnering with local communities to support low carbon initiatives.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier code sets out requirements for companies that do business with us.

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and intensity of extreme weather events such as storms, flooding, coastal inundation, lack of water availability, or slips; offshore drilling and production delayed or shut in by increased weather events.

Transition Risks

• Litigation against companies on climate grounds; changing regulations including bans and restrictive regulations, taxes and emissions limits; divestment movement increasing, affecting availability and cost of capital; insurance premiums increase; potential for classes of assets and locations to become uninsurable; carbon pricing adopted across jurisdictions.

Opportunities

• Global reduction in high carbon sources increasing demand for natural gas; opportunities to partner with and provide greater support for joint venture partners in pursuing low carbon innovations; review opportunity set to broaden exposure to lower emission possibilities; further develop, evidence and communicate the environmental business case for gas displacing coal in Asia.

Reporting Standards

Frameworks Used: TCFD

Certifications: Rainbow Tick

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)

Responsibly delivering energy to help meet society’s energy needs; supporting a price on carbon and carbon capture and storage; reducing our own operational emissions.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 7 awards for young scientists

Environmental Metrics

ESG Focus Areas

• Transparency and open communication
• Environment, climate and energy transition
• Wellbeing of People
• Commercial opportunities

Environmental Achievements

• Reduced or offset emissions from corporate travel and other office-related activities; financially supported tree planting (4,014 trees planted, removing 914 tonnes of carbon)
• Introduced a paperless head office initiative
• Supported carbon pricing through regulatory advocacy

Social Achievements

• Maintained Rainbow Tick accreditation, demonstrating commitment to diversity and inclusion
• Staff incentives linked directly to corporate health and safety performance
• Financial support for Dunedin’s curtain bank, Salk Institute, Trees That Count

Governance Achievements

• Aligned risk management processes, governance and reporting with Taskforce for Climate Financial Disclosures framework
• Developed and adopted a climate policy
• Disclosed climate risks

Climate Goals & Targets

Environmental Challenges

• Increased severe weather impacts and coastal erosion effects
• Stakeholder disengagement and oppositional activism
• Changing regulations including bans and restrictive regulations, taxes and emissions limits
• Divestment movement increases, affecting availability and cost of capital
• Increased insurance premiums
• Potential for classes of assets and locations to become uninsurable
• Increased capital costs if new environmental standards require more expensive supplies

Mitigation Strategies

• Engineering anticipates environmental conditions; carbon policy provides for review of climate issues in strategic and operational decisions
• Manage environmental performance through sustainability framework; promote corporate values
• Due diligence screening of commercial opportunities and joint ventures
• Shadow price on carbon to sensitivity testing in investment decisions
• Due diligence screening of commercial opportunities and joint venture processes
• Assurance relating to insurance forecasts
• Access to a range of funding options
• Reporting on ESG matters, including TCFD compliant reporting
• Jurisdictional diversification to avoid impact of sudden, unilateral changes, confiscation or value destruction by regulation

Supply Chain Management

Responsible Procurement

• Supplier code sets out requirements for companies that do business with us

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and intensity of extreme weather events
• Coastal erosion

Transition Risks

• Changing regulations
• Divestment movement
• Increased carbon pricing
• Reduced prices

Opportunities

• Increased demand for natural gas as a lower-carbon partner to renewables

Reporting Standards

Frameworks Used: TCFD

Certifications: Rainbow Tick

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)

The company's business strategy of responsibly delivering energy to help meet society’s energy needs supports the SDGs.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Security
• Wellbeing of People
• Community Engagement
• Diversity & Inclusion

Environmental Achievements

• Emissions intensity reduced by 10.8% from 6.23 to 5.56 tCO2e per TJ produced.
• 555 trees planted in 2023, contributing to carbon sequestration.
• Support for Dunedin Curtain Bank saved 8.4 tonnes of CO2 and $23,000 annually for needy families.

Social Achievements

• Wellbeing award for Te Ata initiative, supporting employee well-being.
• Support for STEM education through EPro8 Challenge and Otago Science Fair.
• Rainbow Tick retained, demonstrating commitment to LGBTQIA+ inclusion.

Governance Achievements

• Climate and sustainability risk overseen by the board Operational Risk and Sustainability Committee.
• TCFD compliant reporting.
• Compliance with diversity policy.

Climate Goals & Targets

Environmental Challenges

• Increased Scope 2 emissions due to asset acquisition.
• Potential for policy and legal risks, physical risks, financial risks, reputational risks, and technological risks related to climate change.
• Balancing energy security with emissions reduction.

Mitigation Strategies

• Focus on emissions intensity reduction rather than absolute emissions.
• Comprehensive insurance to cover physical risks.
• Incorporation of a shadow price on carbon in investment decisions.
• Collaboration with joint venture partners to reduce carbon impact.
• Support for carbon pricing as an efficient emissions reduction tool.

Supply Chain Management

Responsible Procurement

• Support for local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Changing regulations
• Carbon pricing
• Divestment movement

Opportunities

• Increased demand for natural gas as a transition fuel

Reporting Standards

Frameworks Used: TCFD, IPIECA

Certifications: Rainbow Tick

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 13 (Climate action)

Production of natural gas to support renewable energy generation and reduce energy poverty; support for carbon sequestration research; community initiatives to improve energy efficiency and reduce energy costs for vulnerable families.

Awards & Recognition

• Wellbeing award for Te Ata initiative

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Transition
• Community Engagement
• Employee Wellbeing
• Diversity & Inclusion
• Transparency and Open Communication

Environmental Achievements

• Emissions intensity reduced by 5.29% from 4.54 to 4.3 tCO2e per TJ produced
• 513 trees planted in 2024 (5,627 since 2019), expected to sequester approximately 1,164 tonnes of CO2 over 50 years
• Energy-saving initiatives implemented across operations
• Support for CO2 sequestration efforts through partnerships with research institutions like the Salk Institute

Social Achievements

• Te Ata initiative provides support and nurtures the wellbeing of the whole team (coaching, upskilling, resilience training, cultural celebrations, health support, team events)
• Support for Dunedin Curtain Bank helped 249 homes, saving an average of 10.02 tonnes of CO2 and $183 per year per home
• Support for world class research at the Salk Institute
• Support for students in the EPro8 Challenge

Governance Achievements

• Robust governance framework with Operational Risk and Sustainability (ORS) Committee overseeing climate and sustainability risks
• Adoption of several provisions under the New Zealand Climate Standards (NZ CS 1)
• Comprehensive risk management framework including scenario analysis for climate risks, shadow pricing of carbon, and sensitivity testing

Climate Goals & Targets

Environmental Challenges

• Changing regulations, including bans, restrictive policies, taxes, and emissions limits
• Litigation against companies and directors on climate grounds
• Stakeholder disengagement and oppositional activism
• Adoption of carbon pricing across jurisdictions
• Divestment movement impacting capital availability and cost
• Rising insurance premiums and potential for assets to become uninsurable
• Increased frequency and intensity of extreme weather events
• Risk of partner misalignment from divergent approaches to carbon management

Mitigation Strategies

• Monitoring jurisdictions and diversifying to mitigate regulatory changes
• Participation in New Zealand’s environmental regulation framework
• Incorporation of a shadow price on carbon in sensitivity testing
• Due diligence screening of commercial opportunities and JVs
• Assurance of insurance forecasts
• Access to a range of funding options
• Reporting on ESG matters, including TCFD compliant reporting
• Jurisdictional diversification
• Engineering anticipates environmental conditions
• Comprehensive insurance coverage

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Responsible sourcing practices considering environmental, social, and corporate governance factors

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (storms, flooding, coastal inundation)
• Lack of water availability
• Slips

Transition Risks

• Changing regulations
• Carbon pricing
• Divestment movement
• Rising insurance premiums

Opportunities

• Increased demand for natural gas as a lower-carbon partner to renewables
• Strategic preference for natural gas
• Investment opportunities in lower emission technologies

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: Rainbow Tick

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 13 (Climate Action)

Production of natural gas contributes to energy security and affordability; support for carbon sequestration research and community initiatives

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed