Greenhouse
Gas Emissions
Inventory Report
AUGUST 2023
Summary of Emissions
Purpose and limitations of this report
This report is a summary of Vector's greenhouse gas inventory. It is intended to inform readers about Vector's business strategy with respect to greenhouse gas emissions, but it is not earnings guidance nor financial advice for investors.
While Vector has taken all due care in preparing this report and has taken efforts to ensure that assumptions and input data have a reasonable basis and are coherent and robust (including basing them on modelling, public scientific information, market knowledge, government guidance, supplier information and reasonable/ expert opinions), assessments of greenhouse gas emissions are still a developing field. Modelling assumptions, emission factors and third-party data are expected to evolve as the discipline progresses.
To the greatest extent possible under NZ law, Vector expressly disclaims all liability for any direct, indirect or consequential loss or damage occasioned from the use or inability to use this report, whether directly or indirectly resulting from inaccuracies, defects, errors, omissions, out of date information or otherwise.
We recommend you seek independent advice before acting or relying on any information in this report.
2023 Reporting Suite
This GHG Emissions Inventory Report is published as part of a reporting suite, which also includes our Annual Report, and Taskforce on Climate-related FInancial Disclosures Report. All three reports are available on vector.co.nz
In FY23, Vector's greenhouse gas emissions across scope 1, 2 and 3 amount to 1,620,321 tCO2e. This is a 14.7% reduction from FY20, Vector's base year.
Table 1 summarises yearly emissions by scope, Table 2 shows total scope 1 and 2 emissions split by the gases stated in the Kyoto Protocol, and Table 3 breaks down emissions into scope and category.
Table 1: Emissions trend by scope in tCO2e | |||||||
Emissions | FY20 | FY21 | FY22 | FY23 | Change | ||
category | from FY20 | ||||||
baseline | |||||||
Total Scope 1, 2, 3 | 1,898,798 | 1,680,543 | 1,601,008 | 1,620,321 | -14.7% | ||
Scope 1 | 22,388 | 17,887 | 21,816 | 19,485 | -13% | ||
Scope 2* | 33,148 | 34,449 | 39,486 | 42,810 | 29% | ||
Scope 3 | 1,843,262 | 1,628,207 | 1,539,706 | 1,558,026 | -15% | ||
Table 2: Total FY23 emissions by greenhouse gas in tCO e† | |||||||
2 | |||||||
Scope | CO2 | CH4 | N2O | HFCs | SF6 | Total | |
tCO2e | |||||||
Total FY23 | 48,017 | 12,816 | 131 | 141 | 2,180 | 63,285 | |
Scope 1 | 5,315 | 11,802 | 47 | 141 | 2,180 | 19,485 | |
Scope 2 | 42,702 | 1,014 | 84 | N/A | N/A | 43,800 | |
(location-based) | |||||||
- Market-basedmethod for electricity consumption. While location-based electricity emissions are also included in our inventory, the sums in tables 1 and 3 include only market-based emissions, as these form part of our science-aligned reduction target.
† PFCs and NF3 are not listed here as they are not relevant to Vector activities.
2 Vector GHG Emissions Inventory Report FY23
SUMMARY | ORGANISATIONAL | OPERATIONAL | DATA | GHG EMISSION | GHG EMISSION | REFERENCES | ||||||
BOUNDARIES | BOUNDARIES | COLLECTION AND | CALCULATION | REDUCTIONS | & APPENDIX | |||||||
QUANTIFICATION | AND RESULTS | |||||||||||
Table 3: GHG inventory by scope and category in tCO2e. FY23 emissions highlighted in green indicate a reduction since the baseline, whereas emissions in red show increases. Black indicates no change from base year, or no emissions calculated for FY20.
Emissions category | FY20 | FY21 | FY22 | FY23 |
Total Scope 1, 2*, 3 | 1,898,798 | 1,680,543 | 1,601,008 | 1,620,321 |
Scope 1 | 22,338 | 17,887 | 21,816 | 19,485 |
Natural Gas Distribution Fugitive Emissions‡ | 16,368 | 12,074 | 14,493 | 11,908 |
SF6 Fugitive Emissions | 426 | 592 | 1,859 | 2,180 |
Other Fugitive Emissions§ | 141 | 142 | 134 | 141 |
Stationary Combustion | 3,558 | 2,971 | 3,348 | 3,183 |
Vehicle Fleet§ | 1,895 | 2,108 | 1,982 | 2,073 |
Scope 2* | 33,148 | 34,449 | 39,486 | 42,810 |
Electricity Consumption (market-based)§ | 643 | 826 | 408 | 220 |
Electricity Consumption (location-based)§ | 815 | 801 | 891 | 1,210 |
Electricity Distribution Losses | 32,505 | 33,622 | 39,078 | 42,590 |
Scope 3 | 1,843,262 | 1,628,207 | 1,539,706 | 1,558,026 |
C1: Purchased Goods & Services | ||||
Upstream Purchased Natural Gas | 227,569 | 170,442 | 136,821 | 152,290 |
Upstream Purchased LPG | 46,555 | 47,609 | 52,806 | 58,140 |
Fuel Used by Field Service Providers§ | 6,475 | 6,822 | 6,456 | 7,235 |
Upstream Purchased Materials & Products|| | 15,266 | 11,733 | 13,874 | 11,783 |
Upstream Purchased Other Goods & Services|| | 75,939 | 71,465 | 75,080 | 79,559 |
C3: Fuel- and Energy-related Activities§ | 1,405 | 1,312 | 1,450 | 1,456 |
C4: Upstream Transportation | 2,717 | 2,557 | 3,225 | 2,891 |
C5: Waste Generated in Operations|| | - | - | - | 92 |
C6: Business Travel§ | 332 | 103 | 95 | 271 |
C7: Employee Commuting and WFH|| | - | - | - | 933 |
C11: Use of Sold Products | ||||
Distributed Natural Gas AKL - Total | 772,265 | 760,185 | 711,337 | 735,048 |
Sold Natural Gas - AKL | 151,603 | 115,578 | 57,149 | 66,376 |
Shipped Natural Gas - AKL | - | - | 55,245 | 66,265 |
Other Distributed Natural Gas - AKL | 620,662 | 644,607 | 598,943 | 602,407 |
Sold Natural Gas - non-AKL | 562,567 | 381,871 | 231,127 | 223,568 |
Shipped Natural Gas - non-AKL | - | 47,002 | 183,614 | 160,293 |
Sold LPG | 131,385 | 126,245 | 122,904 | 123,542 |
C15: Investments | ||||
Liquigas | 87 | 89 | 108 | 105 |
Vector Metering§ | 700 | 771 | 809 | 821 |
Biogenic CO2 | 162 | 134 | 150 | 138 |
- A recalculation of FY22 was undertaken to add emissions from two leaks that occurred in June 2022, but were only documented as completed past the cut-off date for last year's GHG emissions inventory report. For details see Section 4.
- Recalculated FY20 - FY22 to remove emissions relating to Vector Metering after selling a 50% interest in the business. A 50% equity share of Vector Metering's scope 1 and 2 emissions is now included under scope 3. For details see Section 1 and Section 4.
- Scope 3 categories that are newly included in FY23 reporting. Where emissions are material, these have been recalculated for FY20 - FY22 while immaterial categories are only included from FY23. For details see Section 4.
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Summary of Emissions (continued)
Glossary of terms | |
Table 4: Definition | and glossary of terms |
Term | Description |
AKL | Auckland |
Carbon footprint | Vector's GHG emissions covered by the Kyoto Protocol, calculated in tonnes of carbon dioxide equivalent |
(tCO2e). | |
CO2 | Carbon dioxide |
DEFRA | Department of Environment, Food and Rural Affairs (UK) |
EGF | Vector's Electricity distribution, Gas distribution and Fibre business |
Emissions | GHG emissions |
EPD | Environmental Product Declaration |
EV | Electric vehicle |
FSP | Field service provider |
FY | Financial year |
GHG | Greenhouse gas |
For the purposes of this report, GHGs are the seven gases listed in the Kyoto Protocol. These are currently: | |
carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), | |
sulphur hexafluoride (SF 6), and nitrogen trifluoride (NF3). | |
GHG Protocol | The Greenhouse Gas Protocol, a partnership between World Resources Institute (WRI) and the World Business |
Council for Sustainable Development (WBCSD). The GHG Protocol develops standards and guidance, such as the | |
Corporate Standard and the Corporate Value Chain (scope 3) Standard, both used as guidance for this report. | |
GWP | Global warming potential, a measure of how much energy the emissions of 1 tonne of a greenhouse gas will |
absorb over a given period, relative to the emissions of 1 tonne of carbon dioxide (CO2). | |
GXP | Grid Exit Point |
HVAC | Heating, ventilation, and air conditioning |
ICP | Installation Control Point |
IPCC (AR4/AR5) | Intergovernmental Panel on Climate Change (Fourth / Fifth Assessment Report) |
LPG | Liquefied petroleum gas |
MfE | Ministry for the Environment (NZ) |
NZ | New Zealand |
NZU | New Zealand Units |
NZECS | New Zealand Energy Certificate Scheme |
NZ ETS | New Zealand Emissions Trading Scheme |
OGMP | Oil and Gas Methane Partnership |
SBTi | Science Based Targets initiative |
SELMA | Street Evaluation Laser Methane Assessment |
SF6 | Sulphur hexafluoride |
T&D | Transmission and distribution |
tCO2e | Tonnes of carbon dioxide equivalent |
TCFD | Taskforce on Climate-related Financial Disclosures |
TPD | Third-party damages |
Vector | Vector Limited Group |
WTT | Well-to-tank |
4 Vector GHG Emissions Inventory Report FY23
SUMMARY | ORGANISATIONAL | OPERATIONAL | DATA | GHG EMISSION | GHG EMISSION | REFERENCES | ||||||
BOUNDARIES | BOUNDARIES | COLLECTION AND | CALCULATION | REDUCTIONS | & APPENDIX | |||||||
QUANTIFICATION | AND RESULTS | |||||||||||
Introduction
This report is for the Vector Limited Group ("Vector" or "the group"). The group comprises Vector Limited and its subsidiaries. Vector Limited is NZX listed and 75.1% owned by Entrust, a private community trust. A list of all subsidiaries can be found in Appendix 1.
The purpose of this report is to transparently disclose Vector's greenhouse gas ("GHG") emissions: how they are quantified, how we're tracking towards our reduction targets and steps planned to further reduce GHG emissions ("emissions").
This GHG inventory report is for Vector for the year ended 30 June 2023. The inventory covered in this report is a complete and accurate quantification of the amount of GHG emissions that can be attributed to Vector's operations within the declared boundary and scope for the specified reporting period. Any exclusions from reporting are disclosed and justified.
This report has been prepared in accordance with the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard [1] ("GHG Protocol Standard") and the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard [2] ("GHG Protocol Value Chain Standard").
Statement of intent
Vector reports on its GHG emissions on an annual basis and has been calculating its carbon footprint since 2017.
Vector's GHG inventory has been calculated in accordance with the GHG Protocol Standard [1] and the GHG Protocol Value Chain Standard [2].
Its intended users are all interested stakeholders, including shareholders, investors, regulators, communities, employees, customers, and contractors.
This GHG inventory report has been reasonably assured by KPMG, see Appendix 3.
Reporting period covered
This GHG inventory report covers Vector's financial year 1 July 2022 to 30 June 2023 ("FY23"). A summary of emissions can be found in both Vector's Annual Report 2023 and Taskforce on Climate-related Financial Disclosures (TCFD) Report 2023.
Variations: As SF6 losses are calculated for the calendar year to align with New Zealand Emissions Trading Scheme ("NZ ETS") reporting requirements, SF6 emissions refer to January - December 2022.
The purpose of this report is to transparently disclose Vector's GHG emissions: how they are quantified, how we're tracking towards our reduction target, and steps planned to further reduce GHG emissions.
Launch of New Zealand's first fully electric bus depot with the capacity to charge 20 - 30 buses each. Charging at this depot occurs within a 'dynamic operating envelope', where Vector forecasts optimal charging times each day and provides this through to the depot, reducing peak demand for
a more affordable charging solution.
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Disclaimer
Vector Limited published this content on 24 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 August 2023 21:10:18 UTC.