Watercare Services Limited
Climate Impact & Sustainability Data (2023-07 to 2024-06)
Reporting Period: 2023-07 to 2024-06
Environmental Metrics
Total Carbon Emissions:66,539 tonnes CO2e/year
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Reduced operational emissions (scope 1 and 2) by achieving 66,539 tonnes CO2e, exceeding the target of <89,200 tonnes CO2e. More than half of the electricity purchased was certified 100% renewable.
- Completed a third water storage reservoir in Manukau, holding 45 million litres of water and boosting Auckland’s wider water supply resilience.
- Completed work to rehabilitate the Ōrākei Main Sewer by relining a 116-metre section.
Social Achievements
- Increased staff engagement score to 7.6 (November 2023) from 7.3 (June 2023), with an 82% response rate.
- Launched inaugural reo and tikanga Māori learning modules, Kōpatapata and Kōnehunehu.
- Celebrated the graduation of the first cohort of Watercare’s Koiora leadership programme for Māori kaimahi.
- Increased procurement with Māori-owned businesses to 2.47% of total supplier spend ($30.63 million), a 34% increase from the previous year.
- Launched Ngā Kakau Paraha, a Māori business network aimed at supporting Watercare’s $3.5b asset upgrade and renewal programme.
Governance Achievements
- Underwent biannual Board performance reviews.
- Established an Asset Management Committee (AMC) and a Capital Finance Committee (CFC) in 2024.
- Maintained a specific policy to receive and deal with information about serious wrongdoing within the company, using PwC’s Whistleblowing Disclosure Service.
Climate Goals & Targets
Long-term Goals:
- Achieve net zero emissions by 2050.
Medium-term Goals:
- Reduce operational emissions (scope 1 and 2) by 50% by 2030.
Short-term Goals:
- Reduce water consumption by 15% by 2025.
Environmental Challenges
- Ōrākei Main Sewer collapse due to factors including pipe condition, extreme rainfall, and weakened concrete blocks.
- Significant weather events in January and February 2023 causing damage to water-related infrastructure.
- Uncertainty surrounding water reform and financial sustainability.
- High TRIFR (Total Recordable Injury Frequency Rate) exceeding the target.
Mitigation Strategies
- Implemented a 24/7 effort to design and build a 400-metre bypass and temporary pump station to divert sewer flows after the Ōrākei collapse (completed within 20 days).
- Developed a monitoring programme to assess the impact of overflows on the Waitematā Harbour.
- Undertook and completed work to rehabilitate the Ōrākei Main Sewer.
- Developed a revised price path to ensure continued infrastructure investment while balancing Auckland Council group’s debt requirements.
- Implemented ongoing flood recovery programme including building retaining walls and clearing landslips.
- Implementing recommendations from an independent review into the Ōrākei Main Sewer collapse.
- Implementing recommendations from a health, safety and wellbeing culture review to improve psychological safety and critical risk management.
Supply Chain Management
Responsible Procurement
- Ongoing efforts to increase participation of Māori businesses in the supply chain.
Climate-Related Risks & Opportunities
Physical Risks
- Extreme rainfall events
- Asset failure due to saturated ground conditions