ASX-Iisted Sydney Airport comprises Sydney Airport Limited and Sydney Airport Trust 1
Sustainability Report 2014 CONTENTS
2 Managing Director and CEO’s message
4 1. Introduction 5 1.1 About Sydney Airport 7 1.2 About this Report
14 2. Engaging and responding to our stakeholders 15 2.1 Embracing stakeholder relationships 18 2.2 Transparency and communication
22 3. Responsibly managing the airport, enhancing the passenger experience 23 3.1 Meeting passenger expectations regarding airport experience 27 3.2 Meeting airline expectations 28 3.3 Sustainable and efficient use of the asset 32 3.4 Aviation and climate change impacts 34 3.5 Safety and security 36 3.6 Managing noise impacts on nearby communities
38 4. Supporting passenger growth 39 4.1 Anticipated increase in passenger demand 42 4.2 Getting to and from Sydney Airport
44 5. Developing our people 45 5.1 Employee engagement, development and wellbeing
54 6. Feedback
55 7. GRI Content Index
68 Appendix COMMITTED TO A SUSTAINABLE FUTURE
At Sydney Airport, our vision is to deliver a world-class airport experience and foster the growth of Sydney Airport for the benefit of Sydney, New South Wales (NSW) and Australia. There are four pillars that underpin Sydney Airport’s commitment to being a long term and sustainable enterprise. Engaging and responding to our stakeholders • Embracing stakeholder relationships • Transparency and communication Responsibly managing the airport, enhancing the passenger experience • Meeting passenger expectations regarding airport experience • Meeting airline expectations • Sustainable and efficient use of the asset • Aviation and climate change impacts • Safety and security • Managing noise impacts on nearby communities Supporting passenger growth • Anticipated increase in passenger demand • Getting to and from Sydney Airport Developing our people • Staff engagement, development and wellbeing
SUSTAINABILITY REPORT 2014 1 MANAGING DIRECTOR AND CEO’S MESSAGE
Sydney Airport’s business priorities We hope this first consolidated reflect our stakeholder-focused account of our sustainability view of sustainability. We seek performance will assist in improving to provide a world-class airport transparency and understanding experience to those who use our of our priorities amongst all our airport, be responsive to all our stakeholders, and offer our investors airline and aviation partners, as well greater insight into our plans as passenger, customer and staff for addressing the sustainability needs while at all times ensuring challenges and opportunities faced their safety and security. We also by our organisation and the airport aim to be a good neighbour to the sector more widely. communities surrounding us and In particular, I would like to highlight in which we operate. the following achievements in 2014. We plan for and deliver sustainable Sydney Airport: growth in line with increasing demand • Generated EBITDA of $948.3 for aviation services in a constantly million, a 6.1% increase relative changing environment and are Kerrie Mather to passenger growth of 1.7%, and committed to being an employer Managing Director and Chief Executive Officer paid distributions of 23.5 cents per of choice, attracting and retaining stapled security to shareholders; the right people to deliver our vision. Sydney Airport is delighted to • Received approval from the Sydney Airport operates in present our inaugural Sustainability Australian Government for Sydney an extremely complex, dynamic Report. This report captures the Airport’s Master Plan 2033 and heavily regulated operational contributions and initiatives, as providing a vision for efficient, environment. In areas within our well as the strategies and intent economic and sustainable direct control we aim to innovate driving them, which together development of the airport and stay ahead of the curve, and represent our commitment to over the next 20 years; being a sustainable enterprise. within the airport sector we are regarded as a leader in technological • Increased the frequency of our In preparing this report, we have innovation. At times government customer surveys, identifying focused on what sustainability policy and regulations limit our ability key drivers of overall satisfaction means for Sydney Airport. As a vital to respond rapidly and flexibly to (terminal presentation, ambience, community asset of national strategic the needs of our customers. In the passenger processing and and economic significance we are areas outside our direct control customer service) and used committed to managing the airport we are committed to working with this information to inform safely and ensuring sustainable our partners, including airlines and our investment priorities; and efficient use of our assets government agencies, to provide • Continued to work closely with for the long term. them with information and options airline partners, identifying and to help them operate as efficiently delivering improvements on their as possible. key areas of focus including general wayfinding, comfort of gate areas and increased processing on outbound departures;
2 SYDNEY AIRPORT • Continued to successfully Finally, to our investors and all implement our commitment our other stakeholders who have to diversity with increases in encouraged us to publicly report the number of women employed We seek to provide on our sustainability performance, and female representation on we have listened to your feedback. the Board; a world-class airport This inaugural report is a first step in public sustainability reporting • Established a framework to experience to those and we are committed to building measure and benchmark our who use our airport, on this. Work is underway to develop community investment; be responsive to a comprehensive set of indicators • Rolled out a revised Safety of performance that reflect the Management System with a key all our airline and highest priorities of our stakeholders focus on equipping managers aviation partners, and these will be included in future with the skills required to carry reports. In many areas covered out their roles and promote safety as well as passenger, by this report, these goals and at the airport; customer and staff targets are already well embedded in our day-to-day management • Received approval from the needs while at all times of the airport (such as safety Australian Government for Sydney and customer satisfaction), while Airport’s five-year Environment ensuring their safety in others they are currently under Strategy, providing the strategic and security. revision (such as greenhouse gas direction for the environmental and energy management). management of the airport; Looking to the future, we have We welcome feedback from all our • Achieved Level 1 certification under a number of opportunities and stakeholders on this report to ensure the Airport Carbon Accreditation challenges. We will continue to we can build upon and improve our scheme and progressed towards astutely manage our assets and accountability going forward. developing a revised Energy revenue sources to advance our Savings and Carbon Reduction business and that of our airline Plan; and customers. We will also seek to • Commenced formal consultation manage the key developments with the Australian Government underway, without impacting the and community engagement in quality of service or infrastructure KERRIE MATHER relation to Sydney Airport’s Right that supports our day-to-day MANAGING DIRECTOR AND operations. CHIEF EXECUTIVE OFFICER of First Refusal, which provides SYDNEY AIRPORT the opportunity to develop and operate a second major airport within 100 kilometres of Sydney’s CBD.
SUSTAINABILITY REPORT 2014 3 1 INTRODUCTION
4 SYDNEY AIRPORT 1.1 ABOUT SYDNEY AIRPORT
Sydney (Kingsford Smith) Airport Sydney Airport is an ASX top 30 (the airport), is Australia’s primary publicly listed company, owned 44 gateway, handling over 40% of by millions of Australians through all international and 44% of all more than 90,000 investors international destinations domestic and regional passengers including the majority of Australia’s within Australia. It is an essential major institutional and industry part of the global transport superannuation funds. Sydney network connecting Sydney to Airport is responsible for the 44 international, 22 interstate airport’s infrastructure and many 22 and 22 regional destinations. The of the activities that take place interstate destinations airport is conveniently located eight within the airport precinct. There kilometres from Sydney’s CBD and are a number of other parties who less than 10 kilometres from major play vital roles in the airport’s tourist attractions. This proximity operation. The table on page six benefits both business and tourism presents an overview of the different 22 and helps to support Sydney and responsibilities of Sydney Airport, regional destinations NSW’s economic prosperity. governments and other third parties in managing the airport.
SUSTAINABILITY REPORT 2014 5 INTRODUCTION
/// PARTNERS AND RESPONSIBILITIES FOR MANAGING SYDNEY AIRPORT
Sydney Airport Governments and government Airport users, service providers Includes activities within Sydney agencies and facilities Airport’s control, including service Includes activities undertaken by Includes third party operators and providers contracted directly by Australian and NSW governments airport users undertaking activities Sydney Airport (indicated with *) and their respective agencies. Sydney within the airport. Sydney Airport has Airport has little control but some little control but some influence over influence over these activities these activities
Getting to/from • Roads inside airport boundary • Train services • Passengers and airport visitors the airport • Car park and inter-terminal • Public bus services • Taxis shuttle buses* • Roads, footpaths and cycle • Limousines • Car parking* paths outside airport precinct • Private bus services • Pick up/drop off bays and • Train stations zones • Private vehicles • Footpaths and cycle paths • Pedestrians and cyclists inside airport precinct • Car hire Using the • Facilities cleaning and • Customs • Passengers and airport visitors airport maintenance* • Immigration • Airline lounges and offices • Retail spaces • Police • Duty free • Office spaces • Quarantine • Retail outlets • Safety • Emergency Services • Advertising • Security systems • Bureau of Meteorology • Food and beverage outlets • Security personnel* • Hotels • Wayfinding • Freight facilities • Waste management* • Handling companies and offices Aeronautical • Runway availability • Regulating aircraft movements, • Passengers and airport visitors activities • Terminal and airfield asset curfew, noise-sharing • Runway slot coordination allocation • Air traffic control • Check-in for passengers • Managing airline relationships and baggage • Airlines • Maintenance and repair of aircraft • Baggage loading on aircraft • Aircraft fuelling, catering and cleaning • Freight companies
Airport management Airport marketing; environmental management; IT systems; planning, development and construction; corporate services; contract, service provider, concession and lease management; and stakeholder and community engagement.
6 SYDNEY AIRPORT Sydney Airport has four main business units: Aviation Services (aeronautical); Retail; Property and Car Rental; and Parking and Ground Transport. A snapshot of each is provided in the table below.
/// 2014 SNAPSHOT OF SYDNEY AIRPORT’S BUSINESS UNITS
Property Parking and Aviation services Retail and car rental ground transport Manage the airline Manage leases and Manage rental leases and Manage infrastructure to relationships and commercial developments for retail developments for sites, support road access and agreements, undertake long outlets and licensing of buildings and other facilities public transport services term planning for the airport advertising rights in Terminal around the airport within the airport precinct, and run the day-to-day 1 (T1) and Terminal 2 (T2) manage airport car parks and operations of the airport access fees Revenue: Revenue: Revenue: Revenue: • $487 million • $255 million • $194 million • $140 million • 4.9% increase on pcp • 5.6% increase on pcp • 3.6% increase on pcp • 5.7% increase on pcp • 42% of total • 22% of total • 17% of total • 12% of total Traffic: Retail space: Property: Vehicles: • 38.5 million passengers • 20,765 m2 international • 937,800 m2 GLA • ˜19,000 daily taxi journeys • 327,190 aircraft movements terminal • 534 sites to and from the airport • 40% of Australia’s • 4,637 m2 domestic terminal • ˜5,000 daily bus, coach international passengers and limousine journeys to • 44% of Australia’s domestic and from the airport and regional passenger Infrastructure: Tenants: Tenants: Car parking: • 3 runways • 127 retail outlets in • 98% occupancy • 16,864 car spaces • 3 passenger terminals international terminal • 162 tenants • ˜400,000 online users • 48 contact gates • 57 retail outlets in domestic • 6 car rental operators • ˜12,000 vehicles using car • 6 A380 gates terminal • 10 airline lounges parks every day • 99 aircraft parking bays • 596 advertising sites Network: • 39 airlines • 88 destinations • 26 countries with direct services
Note: Sydney Airport also generated approximately $81 million of revenue from aeronautical security recovery and $6 million attributable to other sources.
SUSTAINABILITY REPORT 2014 7 INTRODUCTION
GOVERNANCE AND ETHICS Sydney Airport is governed by a Board of Directors, which includes Managing Director and CEO Kerrie Mather. Management are responsible for decision making on all significant aspects of Sydney Airport’s operations including economic, environmental and social impacts. A Corporate Governance statement is included in the Annual Report each year, addressing the Principles and Best Practice Recommendations of the Corporate Governance Council of the Australian Securities Exchange. The Constitution, Board Charter, Audit and Risk Committee Charter, Nomination and Remuneration Committee Charter, Business Code of Conduct and other corporate governance documents are available here. The organisation is guided by Sydney Airport’s Vision statement: to deliver a world-class airport experience and foster the growth of Sydney Airport for the benefit of Sydney, NSW and Australia. The core values of integrity and openness, safety and security, excellence, teamwork, creativity, flexibility and sustainability, are reflected in all policies and programs across the organisation. Sydney Airport’s Vision and Values, Customer Charter, and Diversity and Equal Opportunities policies are available here. Sydney Airport is comprised of Sydney Airport Limited, which is the parent company of the operator of Sydney (Kingsford Smith) Airport, and Sydney Airport Trust 1 (SAT1), whose responsible entity is The Trust Company (Sydney Airport) Limited, a wholly owned subsidiary of The Trust Company Limited and its listed parent, Perpetual Limited. The Trust Company (Sydney Airport) Limited is the responsible entity of SAT1 and the SAT1 constitution is available here.
8 SYDNEY AIRPORT 1.2 ABOUT THIS REPORT
This report covers the period The issues and related performance 1 January 2014 to 31 December 2014, information included in this report with the exception of environmental have been determined through data sets which are reported for a materiality process that was The main goal of this 1 July 2013 to 30 June 2014 in guided by the AA1000 Accountability line with Sydney Airport’s other Principles Standard (2008) and report is to consolidate external environmental reporting. the GRI Reporting Principles and communicate the It is prepared in accordance with of stakeholder inclusiveness, Global Reporting Initiative (GRI) G4 sustainability context, materiality plans, activities and Sustainability Reporting Guidelines and completeness. The measures that are ‘core’ option for reporting. process involved: already embedded This report is Sydney Airport’s • Interviews with representatives first consolidated account of our of each of Sydney Airport’s key in the way Sydney sustainability performance. The main stakeholder groups to understand Airport is managed. goal of this report is to consolidate their views of Sydney Airport’s and communicate the plans, activities sustainability performance and and measures that are already the issues of highest interest • Using the workshop outcomes embedded in the way Sydney Airport or concern to them; to guide the report structure and is managed. The reporting process the nature and extent of reporting • Research and analysis by our has also provided an opportunity for each issue; and sustainability consultants, Banarra, to reflect and identify areas where to identify and prioritise the • Mapping each material issue performance can be improved sustainability issues of greatest against the GRI aspects and and these opportunities form the importance to Sydney Airport’s disclosures to select those of basis of the commitments included stakeholders and greatest greatest relevance for inclusion in this report. relevance to Sydney Airport’s within the report. In future years, it is intended that operations; The resulting material issues, Sydney Airport’s sustainability • A workshop involving Sydney stakeholder groups who have reporting will include specific Airport’s CEO and Executive expressed an interest in each quantitative performance targets. Leadership Team to review issue, and related GRI performance Progress on their development is and validate the issues identified aspects are outlined in the table underway in a number of areas, such through the materiality analysis on the next page. as appropriate energy and carbon and then rank these issues intensity measures and targets for according to four criteria: the airport, as well as emissions reduction targets. While assurance 1. The relationship between has not been sought for this first the issue and Sydney Airport report, Sydney Airport recognises (i.e. the boundary of the issue); the importance of seeking external 2. The level of control Sydney assurance and this will be considered Airport has over management in future years. of the issue; 3. The likelihood of the issue affecting the decisions and actions of Sydney Airport’s stakeholders; and 4. The significance of potential impacts related to the issue on people, the environment and the economy.
SUSTAINABILITY REPORT 2014 9 INTRODUCTION
SYDNEY AIRPORT’S MATERIAL ISSUES
RELATED STAKEHOLDER GROUPS REPORT MATERIAL ISSUE INTERESTED IN THIS ISSUE RELATED GRI ASPECTS SECTION Embracing stakeholder relationships • Community • Local communities 2.1 The need for Sydney Airport to invest in building • Airlines stronger stakeholder relationships and engagement. • Airport stakeholders These relationships are vital and ultimately underpin (tenants and suppliers) Sydney Airport’s overall sustainability.. • Government • Regulators • Employees • Media • Investors • Passengers • Industry associations • Tourism bodies Transparency and communication • Community • Public policy 2.2 The need for Sydney Airport to proactively • Airlines • Anti-competitive communicate our priorities, performance and • Border agencies behaviour future plans in a transparent manner. • Airport stakeholders • Anti-corruption (tenants and suppliers) • Compliance • Government • Employees • Media • Investors • Passengers • Industry associations • Tourism bodies Meeting passenger expectations • Airlines • Service quality 3.1 regarding airport experience • Passengers • Provision of services The need for Sydney Airport to meet passenger • Government or facilities for people expectations regarding the airport experience, particularly • Regulators with special needs in relation to the overall ambience of the airport, while • Customer satisfaction* noting that passenger experience may be impacted by factors that are outside Sydney Airport’s direct control. Meeting airline expectations • Airlines • Customer satisfaction* 3.2 The need for Sydney Airport to build stronger • Passengers • Service quality relationships with, respond to and balance the needs • Government • Airline satisfaction of airlines. • Industry associations survey
10 SYDNEY AIRPORT
RELATED STAKEHOLDER GROUPS REPORT MATERIAL ISSUE INTERESTED IN THIS ISSUE RELATED GRI ASPECTS SECTION Sustainable and efficient use of the asset • Airlines • Economic 3.3 performance The need for, and ability of, Sydney Airport to respond • Airport stakeholders to the increase in passenger traffic and the growing (tenants and suppliers) • Indirect economic demand placed on the airport, including: • Government impacts • Investors • Procurement practices • Efforts made in relation to increasing the overall • Industry associations • Water efficiency of the asset; • Biodiversity • Prioritisation of sustainable growth within the existing • Effluent and waste airport precinct over airport expansions; and • Spills • Role of government regulation and Sydney Airport’s relationship and engagement with government. • Emissions – air quality Aviation and climate change impacts • Airlines • Emissions 3.4 The impacts the aviation industry can have on climate • Airport stakeholders • Energy change and Sydney Airport’s related responsibilities, (tenants and suppliers) including opportunities to collaborate with various • Government stakeholders. • Investors • Industry associations Safety and security • Community • Customer health 3.5 and safety The importance of ensuring the safety and security • Airlines of airport users, which is recognised as a priority • Airport stakeholders • Occupational health by both Sydney Airport and our stakeholders. (tenants and suppliers) and safety • Employees • Security practices • Government • Business continuity • Passengers and emergency preparedness • Emergency Services Managing noise impacts on nearby communities • Community • Noise 3.6 The need to balance and manage the responsibilities • Government of Sydney Airport and government in managing noise • Airlines impacts. Understanding that noise impacts on nearby communities result mainly from aircraft but also ground- based noise from Sydney Airport. Anticipated increase in passenger demand • Community • Market presence 4.1 The broader economic context in which Sydney Airport • Airlines operates which is characterised by steadily increasing • Airport stakeholders passenger traffic, both domestically and internationally. (tenants and suppliers) In this context, understanding and responding to the • Government potential increase of Sydney Airport’s current positive • Investors and negative sustainability impacts. • Passengers • Industry associations • Tourism bodies
SUSTAINABILITY REPORT 2014 11 INTRODUCTION
RELATED STAKEHOLDER GROUPS REPORT MATERIAL ISSUE INTERESTED IN THIS ISSUE RELATED GRI ASPECTS SECTION Getting to and from Sydney Airport • Community • Transport 4.2 Sydney Airport’s efforts in relation to ensuring • Airlines • Inter-modality passengers, visitors and airport workers get to and • Airport stakeholders from Sydney Airport efficiently, and in a timely (tenants and suppliers) and affordable manner. Includes efforts relating to: • Government • Employees • Easing traffic congestion, road network expansions and minimising related impacts on airport commuters • Passengers and the wider community; • Visitors • Increasing public transport options, the need to encourage public transport use and advocating to reduce train station access fees for more frequent and affordable train services; • Management of car parking capacity, the expansion of affordable car parking products, and increasing awareness of online parking discounts; and • Supporting improved airport access for pedestrians and cyclists and the need to support both modes of active transport within the airport precinct. Employee engagement, development and wellbeing • Employees • Employment 5.1 Sydney Airport’s efforts to continuously improve • Training and education staff engagement, develop employees and support • Diversity and equal employee performance. opportunity
*Customer satisfaction relates to relevant component of the GRI G4 Aspect Product and Service Labelling
While all of the issues identified above are considered of material importance to Sydney Airport and our stakeholders, only some are related directly to Sydney Airport’s own activities. Remaining issues are related to the activities of other airport stakeholders, including government agencies and departments, airlines, retailers and other airport tenants, suppliers and contractors, passengers and other airport users, tourism bodies and transport operators. These relationships (or issue boundaries) are outlined in the figure opposite and discussed in further detail in Section 2.1.
12 SYDNEY AIRPORT
/// BOUNDARIES OF SYDNEY AIRPORT’S MATERIAL ISSUES
ISSUES RELATED TO THE ACTIVITIES OF SYDNEY AIRPORT AND OTHER AIRPORT STAKEHOLDERS
MATERIAL ISSUE OTHER STAKEHOLDERS INVOLVED IN MANAGING THIS ISSUE Sustainable and efficient • Government and related agencies use of the asset • Airlines and agents (e.g. ground handlers) • Airport tenants and suppliers • Passengers Safety and security • Airlines • Airport tenants and suppliers • Passengers • Government and related agencies • Regulators Meeting passenger • Airlines expectations regarding • Airport tenants and suppliers airport experience • Government and related agencies Managing noise impacts • Government and related agencies on nearby communities • Airlines Anticipated increase • Airlines in passenger demand • Government and related agencies • Passengers • Tourism bodies Getting to and from • Government and related agencies Sydney Airport • Transport operators • Passengers • Employees • Visitors Aviation and climate change • Airlines impacts • Airport tenants and suppliers
ISSUES RELATED TO SYDNEY AIRPORT’S OWN ACTIVITIES
MATERIAL ISSUE Embracing stakeholder relationships Transparency and communication
Meeting airline expectations Employee engagement, development and wellbeing
SUSTAINABILITY REPORT 2014 13 2 ENGAGING AND RESPONDING TO OUR STAKEHOLDERS
14 SYDNEY AIRPORT ENGAGING AND RESPONDING TO OUR STAKEHOLDERS 2.1 EMBRACING STAKEHOLDER RELATIONSHIPS
Fostering positive, strong, long- At a high level, these stakeholders Sydney Airport recognises that lasting relationships with all those include the following groups: each stakeholder group has different who might be affected by the interests, needs and interactions • Community decisions and activities concerning with the airport. An overview of the • Passengers the airport’s development and manner and frequency with which • Airlines operation is a priority for Sydney Airport engages with each • Airport service providers Sydney Airport. of our stakeholder groups is included (incl. tenants and suppliers) as an appendix to this report. Operating one of Australia’s largest • Employees and most significant infrastructure • Investors There are two main ways the airport assets safely, effectively and • Tourism bodies engages with stakeholders: sustainably in close proximity • Industry associations • Informal, ongoing engagement to the Sydney CBD is complex. • Government as a natural part of building and It requires an ongoing commitment • Border agencies maintaining strong and long- to, and focus on, the needs and • Media lasting relationships; and expectations of those who use the airport, while seeking to minimise • Formal, targeted engagement the adverse impacts on those who on specific issues or events. live, work or travel in and around the precinct.
SUSTAINABILITY REPORT 2014 15 ENGAGING AND RESPONDING TO OUR STAKEHOLDERS
Sydney Airport values our within and surrounding the interactions with, and the opinions airport precinct (discussed of, key stakeholder groups. We in Section 4.2). undertake extensive engagement In 2014 Sydney Airport continued: Sydney Airport as part of targeted consultation processes, and through Sydney • To actively engage with the undertakes a range Airport’s Senior Executives and community and government of programs aimed at other key staff being accessible stakeholders through our and available to meet stakeholders membership of the Sydney better understanding as and when important matters Airport Community Forum and and responding to the or concerns arise. For example: Planning Coordination Forum; needs of the airport’s • A range of programs aimed • Ongoing day-to-day engagement at better understanding and with all airport service providers two main customer responding to the needs to deliver the efficient operation groups: passengers of the airport’s two main of the airport; customer groups: passengers and airlines. • Frequent meetings and events and airlines (discussed in for institutional and retail investors Sections 3.1 and 3.2); both in Australia and international • We engage with local communities jurisdictions; and through support and sponsorship • To receive and respond to of local community organisations feedback in relation to customer and events (discussed in Section experience in using the airport 3.3); and and our facilities, received via social • A collaborative approach to media, feedback systems in place working with governments and around the terminals, and an online agencies to improve transport complaints system. options and infrastructure
16 SYDNEY AIRPORT PLANNING FOR THE FUTURE In 2015, Sydney Airport will In 2014, Sydney Airport began The five-yearly master planning focus on ensuring that community engaging our stakeholders around process provides stakeholders with members living in the vicinity of the upcoming road development works the most significant opportunity airport understand how the airport that will temporarily affect the use to shape the vision and long term is progressing in implementing the of the east-west runway and the plans for the airport’s development Master Plan 2033. This upcoming pattern of aircraft noise around and operation. Preparation of period of engagement also presents the airport and under flight paths. the Australian Government- an opportunity for Sydney Airport Sydney Airport worked closely approved Master Plan 2033 to seek the views of community with the NSW Roads and Maritime involved extensive consultation members and understand how they Services (RMS) to engage with the over a three-year period with the would like to be engaged and receive Sydney Airport Community Forum local community, agencies of the information on the airport’s plans (SACF) to ensure the community Australian and NSW governments, and progress in future. was aware of any likely aircraft the aviation and freight industries, noise impacts associated with the local government, Members of WORK TOGETHER TO works and to seek feedback. SACF’s Parliament, businesses, tourism DELIVER THE AIRPORT’S membership includes a range of local groups and the community. DAY‑TO-DAY OPERATIONS councils as well as state and federal Effectively managing the airport’s MPs. More detailed information Feedback received as part of day-to-day operations requires on the proposal has been released the Master Plan 2033 process communicating the complexity for community comment as part commented favourably on of the airport’s operations and of a Review of Environmental the breadth and quality of plans in an appropriate level of Factors (REF). Sydney Airport’s consultation detail for the different levels of and engagement. A complete knowledge and interest amongst 2015 COMMITMENTS overview of the consultation stakeholders. Implementation of • Communicate Sydney Airport’s process and those engaged any developments or operational future plans and implementation can be found in the Master changes requires significant ongoing timetable to local stakeholders Plan 2033 here. dialogue with the stakeholders most and residents; and affected, to ensure changes are In addition, major developments • Understand and respond to managed safely and to anticipate at the airport require the preparation how local communities want to and minimise any disruptions. of a Major Development Plan (MDP). participate in Sydney Airport’s The most significant consultation progress and development and engagement activity during 2014 of future plans. related to Sydney Airport’s proposals to upgrade the journey and ground transport experience for those travelling to, from and around the airport. A summary of the approach is outlined below. Sydney Airport’s response to the key issues raised is included in Section 4.2.
SUSTAINABILITY REPORT 2014 17 ENGAGING AND RESPONDING TO OUR STAKEHOLDERS 2.2 TRANSPARENCY AND COMMUNICATION
One of the most challenging ACTIVE INVOLVEMENT IN aspects of managing a significant PUBLIC POLICY DEVELOPMENT piece of infrastructure is anticipating Many of Sydney Airport’s activities and responding to rapid and Transparency and are the subject of operational often short-term changes in the regulation, including aviation aviation market. This must be done openness are core safety and security, curfews, concurrently with delivering on values for Sydney aircraft movements and noise the medium and long term plans sharing, airport master planning to realise Sydney Airport’s vision Airport. The internal and major developments, and for the future and responding to culture of cross- environmental management. changes in the aviation landscape. departmental knowledge Decisions made by local and NSW Transparency and openness governments in relation to planning are core values for Sydney sharing and open and and development of the land and Airport. The internal culture of transparent engagement infrastructure surrounding the cross-departmental knowledge airport can also have a significant sharing and open and transparent with key stakeholders impact on the airport. engagement with key stakeholders continues to be Sydney Airport acknowledges continues to be strengthened. the need for appropriate regulation Sydney Airport is also more strengthened. regarding the airport’s operation, proactive in communicating however, maintaining efficiency our priorities, performance and In 2014, a number of investors and flexibility in this context can future plans to all stakeholders. and external agencies indicated be challenging. Poorly conceived An example of this has been the they would like Sydney Airport legislation can result in unnecessary development of a five-year ground to report on our sustainability costs and limitations on operations transport plan, reflecting feedback initiatives in a single publication. that can adversely impact the from the master planning process. Much of the information included airport’s customers and investors. Aircraft noise is always of significant in this report is already available Therefore, Sydney Airport seeks to interest in the local community, via Sydney Airport’s website and anticipate and contribute to public and Sydney Airport has provided other public documents. However, policy development. We take an additional noise-related data and the value of a consolidated annual active approach through the information that exceeds legislative sustainability account that follows preparation of submissions for requirements in the Master Plan a globally recognised reporting government inquiries and other 2033, establishing a precedent standard, and enables investors consultative processes, as well that other airports around Australia and other stakeholders to more as through frequent and open are being encouraged to follow. effectively evaluate and benchmark engagement with governments to This increased transparency has Sydney Airport’s performance, understand their plans and provide been recognised and welcomed has been recognised. Sydney Airport’s perspective. by many stakeholders.
18 SYDNEY AIRPORT Sydney Airport is currently Whilst many of these inquiries are yet to be finalised, Sydney Airport has formally engaged with the achieved positive outcomes from our advocacy in the following cases: Federal Government in a consultation process in relation 1 The NSW Government has agreed with recommendations made by the NSW to the potential development and Legislative Council’s General Purpose Standing Committee No. 3 to increase operation of a Western Sydney the number of bus routes servicing Sydney Airport. The government has airport. In anticipation of this indicated their intention to increase the number of bus routes from one to five. engagement, the board and 2 The NSW Government has, to date, agreed with Sydney Airport’s opposition management confirmed in April to additional residential development in aircraft noise-affected areas on the 2014, that Sydney Airport would Kurnell Peninsula. cease making any donations to, 3 The City of Botany Bay Council amended their development control plan in or supporting fundraisers for, the manner recommended by Sydney Airport to support the implementation any political parties. of the National Airports Safeguarding Framework. In recent years Sydney Airport 4 The NSW and Australian governments jointly committed $282 million funding has increased our advocacy around in their respective budgets for road upgrades in the airport eastern, northern a number of issues of importance and western precincts to proceed, to complement the on-airport works being to our operations and stakeholders, undertaken by Sydney Airport to ease congestion. RMS is continuing to work with 26 submissions made to closely with Sydney Airport to deliver these important road upgrades. public policy reviews and inquiries 5 Sydney Airport is taking part in the Department of Infrastructure and in 2014. Regional Development’s review of community aviation consultation groups around Australia, including the Sydney Airport Community Forum (SACF). Sydney Airport supports SACF and has advocated that the role and membership of the forum be broadened and strengthened.
SUSTAINABILITY REPORT 2014 19 ENGAGING AND RESPONDING TO OUR STAKEHOLDERS
EVALUATING WESTERN The Right of First Refusal has Sydney Airport is 100 per SYDNEY AIRPORT a number of phases including cent committed to the formal In April 2014, the Australian a consultative phase and, after consultation process with the Government announced that a period of consideration, Australian Government. Given the Badgerys Creek would be the site a subsequent contractual phase. size, complexity and importance of for the Western Sydney airport. The consultative phase between this development, it is crucial that the Under the 2002 Sydney (Kingsford Sydney Airport and the Australian Western Sydney airport is designed, Smith) Airport Sale Agreement, Government commenced on constructed and operated in the Sydney Airport has a Right of First 30 September 2014 and will most efficient manner. continue to 30 June 2015. Refusal to develop and operate A team of internal and external a second Sydney airport within At the end of the consultation, experts has been established, with 100 kilometres of the CBD. and after due consideration, the extensive and global experience, Australian Government may issue to evaluate the opportunity and Sydney Airport with a Notice of to examine the key drivers that Intention, after which the airport are expected to underpin the has a minimum of four months long term economic prosperity to consider exercising our option. of Western Sydney. These phases are expected to The business case will examine, continue into 2016. amongst other things, passenger forecasting, demographics, airport design and operation, planning and commercial development, Richmond environmental analysis, and funding and financial modelling. Sydney Airport supports Badgerys NORTH WEST Creek as the site for the Western GROWTH CENTRE Rouse Hill Sydney airport. It is the logical place for the airport to be as it sits within the heart of Western Sydney, which Penrith today has a population of two million people that is expected to grow Blacktown to three million by the mid-2030s. WESTERN SYDNEY Engagement has commenced with North Sydney EMPLOYMENT relevant councils, local MPs, business, AREA Parramatta tourism and community organisations in order to understand all stakeholder Badgerys impacts and expectations, including Creek Sydney Bankstown those for our investors. Airport
SOUTHWEST GROWTH CENTRE Liverpool Sydney Leppington Airport
Major road Rail Major centres
20 SYDNEY AIRPORT FAIR AND ETHICAL In practice, Sydney Airport OPERATING PRACTICES maintains fair and ethical operating Sydney Airport is committed to practices in a number of ways. operating in a way that promotes Sydney Airport’s management Sydney Airport’s fair and ethical conduct in all business approach supports fair and ethical dealings and activities. Our ‘Guide dealings through an emphasis on management approach to Business Conduct’ applies to cross-departmental involvement supports fair and all directors and employees as in all major projects or processes. well as to certain contractors and While this approach is primarily ethical dealings consultants, and includes policies in place to ensure that any potential through an emphasis regarding management of conflicts impacts on airport operations have of interest, whistle-blowing, anti- been identified and considered, on cross-departmental corruption and dealing with inherent in this approach is risk involvement in all major governments. Sydney Airport’s mitigation around improper procurement code of conduct conduct in relation to significant projects or processes. also sets out clear expectations for decisions and actions. tender processes and other aspects Sydney Airport has specialised 2015 COMMITMENTS of dealings with suppliers. Sydney in-house legal expertise to provide • Engage stakeholders to Airport’s supply chain management advice on practices that may carry understand how Sydney Airport is guided by our procurement a risk of anti-competitive behaviour, can build on and improve our policy and a detailed procurement particularly in the area of products sustainability reporting; methodology that includes: or service promotions, and where • Develop clear, measurable, time- • Risk assessments for all major appropriate, seeks Australian bound goals and targets for each contracts that include risks Competition and Consumer material issue in the Sydney Airport relating to the environment, health, Commission (ACCC) clearance 2015 Sustainability Report; and impacts on airport stakeholders, prior to public release. • Determine approach to assurance legal and regulatory compliance, In 2014, Sydney Airport provided of future sustainability reports. reputational impacts, operational training to selected employees and commercial impacts; in marketing and related areas, • Governance standards to ensure to ensure staff understand potential the highest ethical behaviour issues that might be considered and fair dealings; anti-competitive behaviour. Recent internal audit work has • Contractual requirements for also focused on the potential suppliers to provide professional for fraud risk. While no specific customer service and comply with issues were identified, a number a Contractor Code of Conduct of enhancements to strengthen which includes appropriate practices and procedures in this behaviour; and area are being implemented in 2015. • Ongoing management and There were no confirmed incidents review of safety management of corruption or legal actions for across the supply chain including anti-competitive behaviour, anti-trust, safety inductions, drug and or monopoly practices in 2014. alcohol management, workers’ protective equipment and training, field audits and a proactive improvement program.
SUSTAINABILITY REPORT 2014 21 3 RESPONSIBLY MANAGING THE AIRPORT, ENHANCING THE PASSENGER EXPERIENCE
22 SYDNEY AIRPORT 3.1 MEETING PASSENGER EXPECTATIONS REGARDING AIRPORT EXPERIENCE
Sydney Airport is Australia’s busiest BALANCING PASSENGER NEEDS airport for passenger services, WITH AIRPORT OPERATIONS handling 38.5 million passengers Sydney Airport understands that in 2014. Passenger needs at Sydney many components of the airport’s Sydney Airport is Airport, and at airports around the operations come together to affect world, have changed dramatically the passenger experience at the committed to working with the advent of new technologies, airport, as shown in Section 1.1. with the broad range increasing travel and the broadening Sydney Airport is committed to of service offerings for both leisure working with the broad range of of stakeholders to and business travellers. stakeholders to provide passengers provide passengers In 2013, Sydney Airport introduced with quality facilities and services, with quality facilities a Customer Charter which provides efficiency in processing times and clear guidance on the expected wayfinding, as well as high standard and services, efficiency customer service standards to retail, food and beverage offerings in processing times and ensure that customers remain that provide value and choice to a central focus of the airport’s day- our diverse mix of passengers. wayfinding, as well as to-day operations. The airport works As part of the commitment to high standard retail, food closely with our business partners consult with our business partners, to promote excellent customer Sydney Airport regularly meets and beverage offerings. service and behaviour in line with representatives of our with the Charter. airline partners to discuss airline On a day-to-day basis, there In particular, Sydney Airport and customer feedback and is an ongoing alignment of understands that all airport improvement works. The aim of demand planning with border stakeholders have an influence these meetings is to provide airlines agencies and airlines, including over the customer experience. with information on the proposed forecasting to predict, plan and For example, passengers interact terminal capital works and seek communicate expected passenger with core services including feedback on expected operational numbers, providing a more agile security and retail. Sydney Airport’s and passenger impacts. Any works and coordinated response service standards for customers planned within the controlled to demand. are written into the contracts and areas of the terminal also attract Sydney Airport’s Vision and Values leases where practical. To ensure similar, regular engagement with and Customer Charter outline our these service standards are readily the border agencies that operate commitment to meeting passenger available to all airport teams, within these areas. expectations, and these are they are made available to all new To complement this, a formal managed at the airport through airport inductees as part of the survey is undertaken with airlines four core departments: Aviation Aviation Security Identification and border agencies on a bi-annual Services (including security), Retail, Card (ASIC) process. basis. This face-to-face survey Parking and Ground Transport, and is used as an opportunity to seek Corporate Affairs (including the feedback from these business Customer Experience Committee). partners on the priorities they deem Sydney Airport also works closely will have the most positive impact with airlines, border agencies on the overall customer experience. and the government to represent The overall airport’s responsiveness the needs of passengers in areas rating remains consistent with outside of Sydney Airport’s an improvement in 2014. direct control, particularly check- in, connecting flights, delays, Customs and Quarantine.
SUSTAINABILITY REPORT 2014 23 RESPONSIBLY MANAGING THE AIRPORT, ENHANCING THE PASSENGER EXPERIENCE
COMMITMENT TO PASSENGER As a direct result of customer STEPS TO IMPROVING SATISFACTION feedback in 2013, Sydney Airport CUSTOMER SATISFACTION Within the airport, passengers’ implemented the Red Ambassador The Customer Experience needs and expectations include program (Mandarin speaking Committee, in conjunction with each quality service, clean facilities, easy terminal guides), collaborated with business unit, continues to work on access to baggage trolleys, ease Customs to increase the number of initiatives to improve the customer of movement, fast check-in and SmartGates, introduced multilingual experience. This committee uses Customs processing, and diversity signage, commenced a bathroom passenger survey data to determine of retail services. Sydney Airport upgrade program, and continued the main drivers of overall satisfaction is one of many parties at the airport check-in expansion. The airport for customers. This data is then used delivering services and interacting invested in free Wi-Fi across the to determine and prioritise projects with airport customers, thereby airport, new lounges for passengers, and initiatives. influencing customer experiences infrastructure to speed up passenger This year, the areas identified and satisfaction. screening and check-in processes, and an extensive increase in retail as the main drivers of overall The Customer Experience and food offerings to provide greater satisfaction were: Committee works across the value and choice. airport to prioritise the key drivers of customer satisfaction in four key areas: terminal presentation, ambience, passenger processing and customer service. It monitors these commitments and meets on a monthly basis to review Focus on how terminal presentation performance, investment priorities THE BASICS is managed, e.g. cleanliness, maintenance, bathrooms and recommend new initiatives. Sydney Airport conducts self- completion surveys with randomly DECREASING selected passengers over six days IMPORTANCE TO each month, covering a range of SATISFACTION times from 7am to 9pm. Sydney Airport utilises the results to identify Focus on how ambience, passenger KEEPING STRESS processing and customer service service areas and facilities that LEVELS LOW are driving customer satisfaction, is managed and influenced to monitor the level of satisfaction with critical aspects of the airport and to track changes over time. Sydney Airport reports on certain Provide premium products for services THE aspects of these to the ACCC on EXTRAS such as shops, restaurants, Wi-Fi, lounges an annual basis. Overall customer and baggage satisfaction has remained consistent since 2013, with a slight increase in 2014. Sydney Airport also commissions mystery shopping activities each quarter. These activities provide insights on customer experience, including how to improve the product offering and overall experience based on face-to-face interactions with customer facing teams.
24 SYDNEY AIRPORT NEW TECHNOLOGY Sydney Airport has delivered TRANSFORMING T1 In response to innovation and faster passenger facilitation More than 13 million passengers travel customer demand, Sydney by implementing a number of through T1 every year, and in 2014, Airport is increasingly using visual measures in advance of the peak Sydney Airport began a program technology and mobile applications period to address increased demand. to provide more seating, widen to support passengers in navigating In addition to the installation of walkways and improve wayfinding. the airport and to manage check-in four additional SmartGate kiosks, These investments and initiatives will and boarding. Technology based and six additional check-in enhance the airport experience for initiatives include the roll out of kiosks, the following initiatives passengers, visitors and staff. free Wi-Fi and the installation were undertaken: CHOICE AND VALUE of charging stations at terminal • Regular collaboration with lounges. Sydney Airport is also the border agencies on more Sydney Airport is focused on implementing multi-lingual on-screen accurate forecasting of passenger providing value and choice for announcements and multi-lingual presentation profiles and resource our customers across the airport to signage within the airport, and allocation. As a result, additional further enhance the overall passenger plans to implement communication facilitation staff were deployed experience and cater to the airport’s services in six languages across the from other operational areas diverse passenger mix. airport. The public address system to work at the airport during There are more than 200 stores in T2 is being upgraded to provide the peak period. The additional and eateries across the airport, which multi-lingual announcements resources were supplemented offer a range of products, food and while the same functionality by Sydney Airport, including our beverages to suit various tastes and in T1 is being reviewed. Airport Ambassadors to provide price points. additional customer service and COLLABORATION TO REDUCE passenger facilitation services; and The duty and tax free goods PASSENGER WAIT TIMES offering is an important part of In 2014, Sydney Airport committed • The implementation of the Sydney Airport’s retail experience, to reducing the amount of waiting ‘Fast Track’ process has also providing customers with the time passengers experience allowed passengers to move opportunity to save on a wide from check-in through to more quickly through Customs range of products. Customs. Working closely with when connecting from domestic border agencies and airlines, to international flights.
SUSTAINABILITY REPORT 2014 25 RESPONSIBLY MANAGING THE AIRPORT, ENHANCING THE PASSENGER EXPERIENCE
Sydney Airport has opened a range of new retail stores and food and beverage outlets across T1 and T2 over the past two years to further enhance choice for passengers, and continues to bring new and exclusive brands and products to the airport. Sydney Airport has also ensured that there are options for basic items such as coffee and water that are no more expensive at the airport than what is available downtown. Providing value and choice in parking products is also important to Sydney Airport, our passengers and visitors. Customers are encouraged to obtain significant discounts off drive-up rates by pre-booking parking online, with online deals enabling customers to save money on a range of parking from one-hour stays to stays of over one month.
ACCESSIBILITY FOR ALL PASSENGERS Sydney Airport aims to provide a positive experience for all travellers. The Disability Access Facilitation Plan assists passengers with special needs to travel to and within the airport, and advises all passengers of the service aspects that Sydney Airport has in place to ensure access. The plan can be read in full here. Sydney Airport has also commenced implementation of road and facility upgrades as part of the five-year ground transport plan (refer Section 4.2).
2015 COMMITMENTS • Complete expression of interest for new hotel in the T2/T3 precinct; • Complete the T1 landside food court development; and • Establish method, baseline and targets for year on year reporting of passenger satisfaction results.
26 SYDNEY AIRPORT 3.2 MEETING AIRLINE EXPECTATIONS
Sydney Airport understands our LISTENING TO AIRLINES’ NEEDS In addition, Sydney Airport meets responsibilities in relation to the Sydney Airport meets with airlines with airlines and representative quality and delivery of services to once a month through the Airline bodies such as the Board of Airline airlines, maintenance of the operating Operators Committee (AOC) for Representatives of Australia environment, and the efficient use both the domestic and international Inc (BARA) and the Australian of current and planned infrastructure. terminals. Sub-committees of the Business Aviation Association Sydney Airport works closely with AOC are formed to seek additional (ABAA) on a monthly basis the 39 airlines operating out of the feedback from airlines on capital through the Aeronautical Capital airport to provide these services projects and issues. Sydney Airport Investment Consultative Group effectively and efficiently. Since also maintains frequent ongoing (ACICG). The purpose of the 2002, Sydney Airport has invested communication with airlines as ACICG meetings is to: $2.6 billion in new capacity and part of daily airport operations • Facilitate consultation with airport facilities as part of the ongoing management. Airline satisfaction users over future capital projects; commitment to delivering a world- surveys are conducted every six class airport. months, with results aggregated and • Provide a forum for airlines, BARA and ABAA to convey their Sydney Airport is guided by reviewed annually. This face-to-face priorities for investment in airport feedback through consultation survey covers all the main customer infrastructure; and with our business partners, including touch points and is undertaken for airline and border agencies, and both T1 and T2. The survey is an • Provide a forum for Sydney Airport through customer surveys. This important source of feedback for to provide feedback and address is balanced with compliance with Sydney Airport, enabling continual airline comments or requests on regulated standards that are defined performance improvement in specific capital projects. by agencies such as the Office of the areas of greatest importance Transport Security, CASA, and other to airline partners. 2015 COMMITMENTS key stakeholders such as the ACCC • Support airlines and deliver /// TOP FIVE AREAS OF FOCUS and Airservices Australia, in delivering FOR AIRLINES IN 2014 necessary infrastructure as they services to airlines. Building and increase aircraft size, increase flight 1 Wayfinding maintaining relationships with airlines Assisting their customers to find frequency on existing routes and is a key ongoing priority and focus their way around the terminal add new routes; for the airport. The management of • Deliver new technologies airline relationships is shared across 2 Gate areas to support satellite-assisted different teams to ensure all levels of The comfort and crowding of performance-driven landings airline expectations are understood, the gate lounges for customers including the availability of assets which save fuel and deliver from day-to-day airport operations potential noise-sharing to commercial teams and the 3 Emigration benefits; and Executive Leadership Team. The ease and timeliness of facilitation through the • Establish method, baseline and The Master Plan 2033 includes emigration process; targets for year on year reporting infrastructure development to support of airline satisfaction results. airlines, including 16 additional 4 Arrivals international gates for A380 and The ease and timeliness through similar aircraft and 30 new swing gates the arrivals process including which can serve both international immigration, baggage collection and domestic aircraft. New navigation and quarantine requirements and surveillance technologies, such as 5 Check-in the implementation of the Southern The ease of location and Hemisphere’s first Ground Based availability of facilities to Augmentation System (GBAS) in meet demand mid-2014, are anticipated to provide continued benefits to passenger and aircraft safety and reduced airline operating costs.
SUSTAINABILITY REPORT 2014 27 RESPONSIBLY MANAGING THE AIRPORT, ENHANCING THE PASSENGER EXPERIENCE 3.3 SUSTAINABLE AND EFFICIENT USE OF THE ASSET
In fulfilling its vision, Sydney Airport SUSTAINED POSITIVE aims to make a sustained positive CONTRIBUTION TO SOCIETY contribution to society and the AND ECONOMY economy in Sydney, NSW and Sydney Airport As a major regional employment Australia. This contribution is made hub and a global tourism and through enabling tourism and trade, is committed to business gateway, Sydney Airport providing a hub of local employment operating in a socially benefits the people of Sydney, and business activity and investing in NSW and Australia in a number the local community. Sydney Airport and environmentally of ways. Economically, direct and is also committed to operating responsible manner indirect activity at Sydney Airport in a socially and environmentally contributes the equivalent of 6% responsible manner according to according to of the NSW economy and generates safe and ethical business practices. safe and ethical almost 300,000 jobs. A large Sydney Airport also has a business practices. number of workers are residents responsibility to deliver value for of the communities surrounding and optimise returns to investors. the airport, particularly in the Together, the industry and The Master Plan 2033 includes Sutherland Shire and Rockdale institutional superannuation funds information on Sydney Airport’s local government areas. There are and retail investors in Sydney Airport economic and regional significance; also significant numbers of airport- represent millions of Australians. air traffic history and forecasts; related employees living in Kogarah, a development plan for the terminals, Hurstville, Canterbury, Randwick The financial viability of Sydney airfield, freight, ground transport and Botany Bay. Airport is dependent on good and commercial activities; a land use planning and use of the asset, Sydney Airport supports significant plan; and the approach to managing maintaining strong and trusting local business activity in the Port safety, security, noise sustainability, relationships with key stakeholders, Botany/Sydney Airport precinct. climate change and environmental as well as responsible management Surrounding the airport is a network impacts over the next 20 years. of economic, social and environmental of approximately 800 light-industrial Preparation of the Master Plan impacts. The airport master and tourism related businesses 2033 involved extensive community planning process underpins that rely on or support airport and stakeholder consultation those work streams. related activity, such as freight/ and the document is freely and logistics, catering, engineering, The Airports Act 1996 requires that publicly available from Sydney vehicle rental businesses and Sydney Airport has a master plan Airport’s website. accommodation businesses. outlining the strategic direction for The Master Plan 2033 outlines efficient and economic development Sydney Airport commissioned how future traffic growth can of the airport and indicating the a study by Deloitte Access be accommodated across the intended uses of the airport site over Economics to quantify the economic terminal precincts and within a 20-year period. Sydney Airport’s impact of these activities. The study existing regulatory frameworks Master Plan 2033 was approved found that Sydney Airport generates: such as a cap of 80 aircraft by the Australian Government movements per hour and a curfew. • 283,700 jobs (equivalent to 8% and is refreshed every five years. Further detail on Sydney Airport’s of NSW employment), including response to increasing passenger 160,000 direct jobs, 28,000 of traffic is discussed in Section 4.1 which are located at the airport; of this report. • A $13.2 billion contribution to household income with the average full time equivalent wage of an employee working in the Sydney Airport precinct 13% higher than the NSW average for all employees;
28 SYDNEY AIRPORT 283,700 Jobs generated by Sydney Airport 160,000 Direct employment generated by Sydney Airport $13.2 billion Contribution to household income • Substantial income and GST international and domestic routes, revenues to the Australian and lower airport charges than Government, payroll taxes to almost all other airports in the NSW Government and annual NSW regional route network. contributions to Botany Bay, 113% In 2014, Sydney Airport distributed Rockdale and Marrickville $1,205.6 million of the economic Average wage in airport precinct Councils; and compared to NSW average value it generated through • An overall economic contribution employment, procurement, of $27.6 billion, equivalent to 6% investor returns, taxes and of the NSW economy and 2% community investments. Further of the Australian economy. information on Sydney Airport’s $27.6 financial performance in 2014 can Sydney Airport invests in our local be found in the Annual Report here. communities through a variety of billion partnerships and sponsorships with Through the Master Plan 2033, schools, organisations and charities. Sydney Airport outlined our plans Overall economic contribution These range from small scale to sustain this contribution over partnerships including local sporting the long term, which includes: clubs to major events such as the • Focusing airport development annual six-week Sydney Airport on supporting tourism and trade; Community Christmas Giving Appeal. Sydney Airport also has a diverse • Managing the airport as community investment program efficiently as possible with the aim that reflects our organisational of achieving maximum use and commitment to support the growth value from existing infrastructure of aviation for the benefit of Sydney, investments; and NSW and Australia. • Continuing to work collaboratively Sydney Airport is also proud of with governments, tenants and the service it provides to regional airlines to enable them to succeed communities, including an extensive and to sustain their economic route network during peak hours, contributions. facilitating connectivity with
SUSTAINABILITY REPORT 2014 29 RESPONSIBLY MANAGING THE AIRPORT, ENHANCING THE PASSENGER EXPERIENCE
COMMITMENT TO Assessment of environmental ENVIRONMENTAL impacts is undertaken as part MANAGEMENT of Sydney Airport’s overall risk All major airports inevitably have The airport focuses management approach, which some impacts on the environment systematically identifies and and local communities. Aircraft on a cooperative, evaluates key environmental noise and degraded air quality are proactive approach risks affiliated with all airport a concern for local communities. operations. Sydney Airport’s Airport operations can either directly with regulatory agencies, Environment Strategy 2013-2018 or indirectly generate carbon airport stakeholders identifies 10 specific aspects of emissions and waste, consume water, environmental management that and affect local waterways, wildlife and business partners, are relevant to the operation of the and biodiversity values. Minimising working together airport. These are climate change these environmental impacts is and energy management; water essential for Sydney Airport to to ensure potential management; air quality; ground- operate sustainably, and the airport adverse impacts of based noise; ground transport; focuses on a cooperative, proactive biodiversity and conservation approach with regulatory agencies, airport operations are management; heritage; waste and airport stakeholders and business avoided or minimised. resource management; soil and partners, working together to ensure land management; and spills and potential adverse impacts of airport hazardous materials. operations are avoided or minimised.
30 SYDNEY AIRPORT /// ENVIRONMENTAL SNAPSHOT
MUNICIPAL GROUND WATER SUPPLIES WATER
870,829 kL TOTAL VOLUME
1,096,981 kL * Recycled and reused = RECYCLED 20.3% of total water withdrawal AND REUSED 3,822 kL 222,330 kL *
QUARANTINE WASTE FOR WHICH WASTE TO RECYCLED SYDNEY AIRPORT LANDFILL WASTE IS RESPONSIBLE
TOTAL WASTE
2,552 tonnes 1,757 tonnes 1,195 tonnes 5,504 tonnes
From international terminal and surrounding environs including international aircraft aprons
All environmental data is provided for the 1 July 2013 to 30 June 2014 reporting year with exception of groundwater data which is provided from January 2014 to December 2014. Water consumption based on monthly usage data provided by utilities and recycling plant operator. Includes all water usage for Terminals 1 and 2 only (including tenant water usage) as Terminal 3 is managed directly by a single tenant (Qantas). Waste figures based on data provided by waste disposal contractors. Waste to landfill and recycled waste includes estimates of proportion of general waste based on contractor default recovery rate (25%).
The Environment Strategy 2015 COMMITMENTS includes a detailed action plan • Complete and establish a for the 10 areas of environmental framework for evaluation and management and reports to the decision-making regarding local Australian Government annually community investments; on progress. Key environmental indicators from 2014 are shown • Refine method for collecting and in the diagram above. Environmental monitoring environmental data issues that were identified as being including waste, water and energy of greatest stakeholder interest – to enable improved reporting; and climate change and energy, noise • Establish method for collecting management and impacts relating and monitoring local content to transport – are discussed in in procurement spend including further detail in later sections setting baseline and targets. of this report.
SUSTAINABILITY REPORT 2014 31 RESPONSIBLY MANAGING THE AIRPORT, ENHANCING THE PASSENGER EXPERIENCE 3.4 AVIATION AND CLIMATE CHANGE IMPACTS
In the context of increasing viable measures for each category and Carbon Reduction Plan that passenger numbers, the use of of emission. identified a range of opportunities fossil fuels in air travel and the to reduce electricity consumption Sydney Airport’s total energy aviation industry’s contribution to and associated GHG emissions. consumption and greenhouse global greenhouse gas emissions These included: gas emissions for 2014 are is of significant interest to a range outlined below. • Improvements to efficiency of our stakeholders. Sydney of escalators and travelators; Airport supports the view of Over 90% of Sydney Airport’s GHG Airport Council International (ACI) emissions arise from the consumption • Various lighting efficiency upgrades; that the aviation industry should of purchased electricity used • Air conditioning system address climate change impacts primarily for HVAC cooling and upgrades; and on a global level through a long ventilation systems, lighting, baggage • Improvements to baggage term strategy that identifies and handling, lifts and elevators. In 2012, handling equipment. phases in environmentally effective, Sydney Airport commissioned the economically efficient and politically development of an Energy Savings
/// SYDNEY AIRPORT’S ENERGY CONSUMPTION AND GHG EMISSIONS 2014
TYPE ENERGY CONSUMPTION (GJ) GHG EMISSIONS (t CO2-e) Natural gas (stationary) 52,775 2709 Diesel oil (stationary) 2,522 176 LPG (transport) 44 3 Gasoline (transport) 2,179 151 Diesel oil (transport) 28,398 1,985 Total Scope 1 85,918 5,024 Purchased electricity 353,481 85,425 Total Scope 2 353,481 85,425 Total Scope 1 and 2 439,399 90,449
Data is reported on the basis of 1 July 2013 to 30 June 2014 reporting year to align with Sydney Airport’s other GHG reporting requirements and carbon reduction plan.
Energy and greenhouse gas emissions reported within Sydney Airport’s operational control in line with the National Greenhouse and Energy Reporting Act (2007) and supporting methodologies and conversion factors.
/// SYDNEY AIRPORT’S GHG EMISSIONS 2014
PURCHASED ELECTRICITY NATURAL GAS DIESEL OIL DIESEL OIL GASOLINE LPG 85,425 t CO2-e (STATIONARY) (TRANSPORT) (STATIONARY) (TRANSPORT) (TRANSPORT)
2709 t CO2-e 1985 t CO2-e 176 t CO2-e 151 t CO2-e 3 t CO2-e
32 SYDNEY AIRPORT SYDNEY AIRPORT TAKES A STEP TOWARDS CARBON NEUTRALITY
As a signatory to the Global In 2014, Sydney Airport implemented In addition to carbon reduction, Aviation Commitment to Action a number of energy saving measures Sydney Airport is responding to on Climate Change, Sydney Airport identified under the plan, including risks and opportunities associated is working towards an industry-wide installation of: with climate change through target of carbon neutral growth monitoring research and actions • LED lighting in floodlights, from 2020, and ultimately carbon by governments that could have aerobridges, street lighting, car neutrality, through the Airport implications for Sydney Airport. parks, taxiways and a number of Carbon Accreditation certification In the past, Sydney Airport engaged areas within the airport terminals; scheme. Airport Carbon with the National Climate Change Accreditation is an internationally • Movement sensors in some Adaptation Research Facility and recognised certification system aerobridges; contributed to the development of designed to assess and recognise • Variable Speed Drive Pumps for Policy Guidance Briefs specifically participating airports’ efforts the Recycled Water Treatment for infrastructure, addressing to manage and reduce their Plant; and climate change adaptation and carbon emissions. The program • Gas fired hot water service resilience. Sydney Airport has was recently commended (and recycled water provisions) to also worked with the University by the OECD’s International service the new bathroom facilities. of New South Wales and the Office Transport Forum. of Environment and Heritage in Additional measures that were the development of a paper that In May 2014, Sydney Airport implemented also included: reviews current and emerging achieved Airport Carbon research in infrastructure adaptation Accreditation certification • Replacement of existing chillers planning for climate change across at Level 1 which required the with four high-efficiency variable- five sectors including energy, water, mapping of various sources speed chillers; telecommunications, transport of CO emissions on the airport • Variable Speed Drive installations 2 and community infrastructure. site and then have our carbon to pumps and fans; and footprint independently verified, • Upgrade of the T1 chilled water Sydney Airport will also undertake as well as provide details of our system and air handling systems. a climate vulnerability assessment greenhouse gas management. in 2015 to ensure that any relevant Sydney Airport also monitors In 2014, Sydney Airport offset the adaptation strategies are factored and reports on energy emissions associated with our own into future planning for the airport. consumption and greenhouse vehicle fleet through Greenfleet, a gas emissions through the not-for-profit carbon offset provider. 2015 COMMITMENTS Australian Government’s National Greenfleet’s program seeks to • Establish method, baseline Greenhouse and Energy Reporting offset carbon emissions through and targets for year on year scheme (NGERs) and the Carbon native forest restoration projects. public reporting of energy Disclosure Project (CDP). In recognition of over five years of consumption and greenhouse gas continuous support to the program, emissions, including establishing Sydney Airport’s Energy Savings Sydney Airport received the Huon intensity indicators; and Carbon Reduction Plan is Award from Greenfleet. currently under review as part • Progress towards achieving Level 2 of moving towards Level 2 certification under Airports Carbon Airport Carbon Accreditation Accreditation scheme; and certification, which involves • Complete climate vulnerability establishing a baseline and key assessment and develop adaptation performance indicators, setting strategies to inform future planning carbon reduction targets and for the airport. providing evidence of effective carbon management over consecutive years.
SUSTAINABILITY REPORT 2014 33 RESPONSIBLY MANAGING THE AIRPORT, ENHANCING THE PASSENGER EXPERIENCE 3.5 SAFETY AND SECURITY
Ensuring Sydney Airport is a safe response to the increase in Australia’s EXERCISE and secure operating environment National Terrorism Public Alert is a top priority. From providing Level in September 2014 to ensure NIGHTBIRD essential security infrastructure and everyone working at Sydney Airport a comprehensive safety management continues to maintain the highest system, to protecting the airspace, security standards in order to protect Civil Aviation Safety Regulations Sydney Airport is committed to passengers, staff, visitors and the require airport operators ensuring the airport operates safely airport itself. to conduct a multi-agency and efficiently. Sydney Airport emergency exercise at least The security awareness program recognises our responsibilities for once every two years. Exercise at Sydney Airport is supported our employees, contractors, visitors Nightbird, which was undertaken by a national aviation security and other third parties who access in September 2014, involved more awareness strategy called Airport areas under our control. than 200 emergency service and Watch. This community approach, Sydney Airport personnel taking SECURITY similar in principle to Neighbourhood part in a training exercise that MANAGEMENT SYSTEM Watch programs, not only focuses tested the airport’s emergency on identifying suspicious activity, Security management is carried out response plan. The exercise but resolving it on a real time in accordance with the regulatory scenario involved the simulated response basis. obligations specified in the Aviation crash landing of a domestic 737 service at the perimeter fence Transport Security Act 2004 and SECURITY WITH SERVICE the Aviation Transport Security following a mechanical issue Sydney Airport engages Regulations 2005. on board. a government licensed and The security management system professionally qualified security The exercise tested aspects of is described in Sydney Airport’s service provider. Along with the airport’s emergency plan, Transport Security Program (TSP). passenger and checked baggage including activation of the various The program sets out in broad screening, the main security functions facilities and resources available terms Sydney Airport’s security risk that are undertaken by Sydney to support agencies that would context, mitigation measures, and Airport’s security service provider be involved in managing an emergency and contingency plans. include airport perimeter patrols, emergency at Sydney Airport. Sydney Airport regularly reviews, airside/terminal/landside foot patrols, The Australian Federal Police, updates and seeks approval from gate access control, and general NSW Police Force, Fire and Rescue the Department of Infrastructure CCTV security surveillance and NSW, Aviation Rescue and Fire and Regional Development for alarm monitoring. Fighting, NSW Ambulance and changes to the program. Virgin Australia were involved “Security with service” is viewed in the exercise. Sydney Airport coordinates the as critical to the end-to-end management of aviation security passenger experience at Sydney with other parties, including Airport. Screening officers are Commonwealth agencies that trained in accordance with have responsibilities for, or are Sydney Airport’s Service Standards. connected with, aviation. An aviation In 2014, all passenger screening industry participant security guide supervisors attended a Customer is provided to all industry participants Service Recovery Training Program located on Sydney Airport with focusing on conflict resolution. an understanding of the security Sydney Airport seeks to minimise management system. the impact on passengers and Sydney Airport is focussed on staff without compromising safety maintaining a strong security culture, and security or compliance with investing in regular staff security legislation. In the case of matters awareness programs. Specific relating to security operations, communications were issued in personal information, including
34 SYDNEY AIRPORT sensitive information, may be collected in accordance with the Privacy Policy.
EMERGENCY PLANNING Sydney Airport recognises the importance of broader community confidence in the airport’s plans for responding to emergencies, and in the capabilities and readiness of emergency staff, airlines and other service providers to implement these plans. Sydney Airport maintains an Airport Emergency Plan (AEP) in accordance with the International Civil Aviation Organisation and Australian Civil Aviation Safety Authority regulations and standards. The AEP is accessible to all airlines • Contractor management; Wildlife Management Program is that operate at Sydney Airport as • Emergency management; developed in conjunction with a contracted ornithologist under well as state and federal emergency • Incidence reporting and the Wildlife Services Contract. services. It addresses events such as investigation; natural disasters and critical systems The Airfield Operations Manager • Learning and development; failures, as well as casualty issues. is responsible for delivering the • Information management; and wildlife management plan, and the Any disruptions or emergency • Performance review. ornithologist works closely with the events could also significantly airfield operations team, providing affect service quality at the airport, The SMS recognises the importance expert advice and undertaking active and these disruptions are minimised of having a robust and holistic and passive wildlife management. through a policy and procedure safety management system which Regular management reports for coordinating the response incorporates and integrates our which contain short or long term with airlines, Airservices Australia approach to Aviation and Work recommendations are provided to and state and federal agencies Health and Safety, while being the Airfield Operations Manager. where required. dynamic enough to cater for future changes in the operating In 2014, there were 58 confirmed HEALTH AND SAFETY environment. The SMS was designed wildlife strikes out of a total of OF AIRPORT USERS to meet the requirements of the 327,190 aircraft movements, In 2014, Sydney Airport implemented Civil Aviation Regulations 1998, representing a strike rate of 1.77 a revised Safety Management System Civil Aviation Safety Authority per 10,000 aircraft movements. (SMS), which sets out, in broad Advisory Circular 139.16 and the 2015 COMMITMENTS terms, Sydney Airport’s safety risk Work Health and Safety Act and framework. The SMS has 10 key Regulations 2011. It is reviewed and • Enhance emergency response safety elements that cover the health updated on a regular basis to ensure procedures and capabilities, and safety of all passengers, visitors continuous improvement. drawing on the lessons learned and airport staff: from training and exercise WILDLIFE MANAGEMENT programs, and incident • Commitment to safety; PROGRAM debriefings in 2014; and • Strategic planning and continuous Wildlife strikes can pose a significant • Continue to develop and implement improvement; risk to the safety of passengers accessible methods and supporting • Consultation and communication; and airline staff on board aircraft, technology for collecting and • Risk management; and managing these risks is a key monitoring near misses. priority for Sydney Airport. The
SUSTAINABILITY REPORT 2014 35 RESPONSIBLY MANAGING THE AIRPORT, ENHANCING THE PASSENGER EXPERIENCE 3.6 MANAGING NOISE IMPACTS ON NEARBY COMMUNITIES
The communities around the airport RESPONSIBILITIES FOR Other organisations with are some of Sydney Airport’s most MANAGING NOISE IMPACTS responsibilities for managing important stakeholders, and are Noise sharing is managed by aircraft noise include: more affected by aircraft noise Airservices Australia. Sydney Airport than other parts of Sydney. Sydney has a limited role in managing aircraft International Civil Aviation Organisation (ICAO) Airport regularly holds community noise impacts in terms of investing Responsible for setting aircraft information sessions for all noise in airport infrastructure to support noise standards affected areas, with ten sessions new generations of quieter aircraft. held in 2014. Australian Government: Department The aircraft that use the airport of Infrastructure and Regional OPERATIONAL RESTRICTIONS are some of the most modern in Development (DIRD) ON SYDNEY AIRPORT the world. In 2014, Sydney Airport Responsible for enforcing aircraft Noise impacts on the community was Australia’s first port for test movement cap and curfew flights of the Airbus A350 XWB, have been a central component Australian Government: of the regulation of Sydney Airport a revolutionary aircraft which is lighter, quieter and more fuel Airservices Australia since it began operations. The airport Responsible for managing aircraft efficient than other commercial is in a unique position in comparison movements at Sydney Airport, aircraft currently in operation. to other international airports as publishing a range of aircraft Other new generation aircraft formal noise and community-related movement-related information increasingly flying to Sydney, such measurements are publicly disclosed and implementing noise sharing by the Australian Government as the A380 and B787, are not at Sydney through the Long Term through Airservices Australia. only quieter than the aircraft they Operating Plan replace, they are also significantly Restrictions on noise levels at more fuel efficient. As a result, Receives and manages community Sydney Airport are strictly regulated. noise impacts from individual complaints relating to aircraft noise A curfew at the airport operates flights to and from the airport Australian Government: between 11pm and 6am, though will continue to improve. Aircraft Noise Ombudsman certain low-noise aircraft types are Conducts independent administrative permitted to operate during these reviews of Airservices Australia’s hours. Regulations also determine management of aircraft noise- the type of aircraft that can land related activities or take off between certain times Airlines and aircraft operators and limit the number of runway Sydney Airport was Maintain aircraft fleets and engines movements per hour. Noise sharing that meet the required ICAO and and jet abatement place further Australia’s first port Australian Government noise- restrictions on the airport and greater for test flights of the related regulations detail can be found in Chapter 14 of the Master Plan 2033 here. Airlines Airbus A350 XWB, NSW Government and local councils face significant penalties from the a revolutionary aircraft Regulate land use planning and Federal Government if the curfew development in the vicinity of is breached. which is lighter, quieter the airport and more fuel efficient Sydney Airport Community Forum (SACF) than other commercial Acts as a forum for providing advice aircraft currently to the Minister for Infrastructure and Regional Development, Sydney in operation. Airport and aviation authorities on the abatement of aircraft noise and related environmental issues at Sydney Airport; in particular it is the main body for consultation on the Long Term Operating Plan (LTOP)
36 SYDNEY AIRPORT KEY NOISE TARGETS Sydney Airport-related noise and decisions in noise affected areas AND MEASUREMENTS flight path data 24 hours a day, seven around the airport. Airservices Noise targets that apply to Sydney days a week. Noise is permanently Australia also prepares quarterly Airport are captured in the LTOP, monitored at 12 Noise Monitoring Australian Noise Exposure Index which is implemented by Airservices Terminals (NMTs) located at Sydney (ANEI) reports which show Australia. The Australian Government, Airport (runway 34L threshold), historical aircraft noise over a given through Airservices Australia, Kurnell, Coogee, Eastlakes, Penshurst, period of time. These reports are manages aircraft movements at Bexley, Sydenham, St Peters, available here. the airport, determines aircraft Annandale, Croydon, Leichhardt and flight paths, operates the noise Hunters Hill. There are also portable 2015 COMMITMENT monitoring equipment in Sydney NMTs that can be deployed. • Encourage increased use of fixed electrical ground power Airport’s surrounding suburbs, and Sydney Airport prepares an and pre-conditioned air units. regularly publishes information Australian Noise Exposure Forecast This minimises the use of noisier on noise impacts using a range (ANEF) and a range of other noise on-aircraft auxiliary power units, of noise descriptors. descriptors and publishes them in improves air quality and reduces the Master Plan. The ANEF is used Airservices Australia operates the carbon emissions. Noise and Flight Path Monitoring primarily by local councils when System (NFPMS), which collects making planning and development
SUSTAINABILITY REPORT 2014 37 4 SUPPORTING PASSENGER GROWTH
38 SYDNEY AIRPORT 4.1 ANTICIPATED INCREASE IN PASSENGER DEMAND
Sydney Airport contributes $27.6 While periodic disruptions from In 2014, international passengers billion per year in economic activity. terrorism, war, natural disasters grew by 2.8% while domestic One of the key drivers of this and health scares have affected passengers grew by 1.2%. This was contribution is passenger growth. passenger demand, in most cases underpinned by improvements in Passenger numbers and regular traffic levels have returned once the average load factors and a number public transport (RPT) aircraft circumstances causing the disruption of airlines upgauging aircraft movements at Sydney Airport have have abated. servicing Sydney. grown steadily over the past two decades, with annual passengers increasing by 211% and annual RPT aircraft movements increasing by 79% since 1991.
/// TOTAL NUMBER OF ARRIVING AND DEPARTING PASSENGERS FOR 2014
PASSENGERS DOMESTIC INTERNATIONAL TOTAL Arriving 12,698,108 6,564,139 19,262,247 Departing 12,652,664 6,539,131 19,191,795 Total 25,350,772 13,103,270 38,454,042
Source: Sydney Airport internal data
/// BREAKDOWN OF INTERNATIONAL PASSENGER MOVEMENTS FOR 2014 BY REGION 8.3% 1.2% REGION ARRIVING DEPARTING TOTAL PAX TOTAL % 3.9% Asia 3,162,161 3,086,014 6,248,175 47.7% Asia-Pacific 1,489,640 1,485,667 2,975,307 22.7% Americas 1,027,514 1,088,025 2,115,539 16.1% 16.1% Europe 251,695 259,539 511,234 3.9% 47.7% Middle East 549,193 544,015 1,093,208 8.3% Africa 83,936 75,871 159,807 1.2% 22.7% Total 6,564,139 6,539,131 13,103,270 100.0%
Source: Sydney Airport internal data. Breakdown by region is estimated based on multiple data sources.
/// TOTAL TONNES (t) OF INTERNATIONAL CARGO MOVEMENTS FOR 2014 BY REGION 2.5% 0.5% REGION ARRIVING (t) DEPARTING (t) TOTAL (t) TOTAL % 9.4% Asia 154,942 67,269 222,211 51.2% Americas 64,285 18,738 83,023 19.1% Asia-Pacific 35,918 39,019 74,937 17.3% 17.3% Middle East 25,085 15,690 40,775 9.4% 51.2% Europe 7,775 2,909 10,684 2.5% Africa 1,446 762 2,208 0.5% 19.1% Total 289,451 144,387 433,838 100.0%
Source: Bureau of Infrastructure, Transport and Regional Economics (BITRE) data; international cargo data for the 12 months to 31 December 2014 includes freight and mail categories. Region represents the destination of the flight number that cargo is carried on. It does not necessarily represent the final destination of the cargo.
SUSTAINABILITY REPORT 2014 39 SUPPORTING PASSENGER GROWTH
/// NUMBER OF ARRIVING AIRCRAFT MOVEMENTS FOR 2014 DOMESTIC INTERNATIONAL 3.4% CATEGORY DAY NIGHT DAY NIGHT Forecast average annual Commercial passenger 115,692 8 32,185 473 passenger growth rate 2012–2033 Commercial cargo 795 501 1,389 964 General aviation 9,966 0 517 6 State aviation 632 0 465 0 Total 127,085 509 34,556 1,443 1.4% Source: Sydney Airport internal data. Forecast average annual aircraft All figures are estimates based on multiple data sources. movement growth rate 2012–2033 Day refers to 06:00 to 23:00 and night refers to 23:01 to 5:59 (Sydney time)
/// NUMBER OF DEPARTING AIRCRAFT MOVEMENTS FOR 2014 DOMESTIC INTERNATIONAL 2.4% CATEGORY DAY NIGHT DAY NIGHT Commercial passenger 115,700 0 32,658 0 Forecast average annual Commercial cargo 726 570 1,478 875 freight growth rate 2012–2033 General aviation 9,970 0 518 5 State aviation 695 0 402 0 Total 127,091 570 35,056 880 Source: Sydney Airport internal data. All figures are estimates based on multiple data sources. Day refers to 06:00 to 23:00 and night refers to 23:01 to 5:59 (Sydney time)
ACCOMMODATING These include: • Maintaining the Terminal 1 CONTINUING PASSENGER international freight and aviation • Significantly improved road and GROWTH INTO THE FUTURE fuel facilities on-airport, providing intersection performance in and increased long term certainty, The anticipated growth in future around the airport for each of which will support investment traffic has the potential to amplify 2018 and 2033. This investment for in productivity and capacity; economic, environmental and social the 2018 improvements has been impacts from the airport, both prioritised and is well progressed • Enhancements to airfield safety positive and negative. (see section 4.2 for further details); and efficiency to improve on-time performance; and In collaboration with our airline • New terminal infrastructure in and other airport partners, the north east sector significantly • Substantial reductions in Sydney Airport is responding increasing the airport’s capacity the number of inter-precinct to increasing passenger demand to serve new generation wide- transfers and an improved through significant investment body aircraft; transfer passenger experience in infrastructure to increase the for the remaining passengers • Delivery of up to 30 swing gates capacity and operational efficiency who transfer inter-precinct. of the airport. The Master Plan 2033 across the terminals that can details Sydney Airport’s long term be used for international and vision and plans for responding to domestic/regional aircraft; this growing passenger demand over the period to 2033.
40 SYDNEY AIRPORT A MAJOR SHIFT IN THE AVIATION INDUSTRY TOWARDS QUIETER, GREENER AIRCRAFT
Sydney Airport is one of the world’s largest A380 airports; the A380 being 50 per cent quieter than previous aircraft and significantly larger means that more passengers can travel through Sydney Airport on fewer aircraft, thereby minimising noise for surrounding residents. Sydney Airport has invested heavily to accommodate these new generation aircraft, including airfield infrastructure upgrades to cope with their larger size, new navigational systems and the upgrade of Terminal 1. On 30 August 2013, Australia’s first ever Boeing 787 Dreamliner passenger flight touched down at Sydney Airport, as we 2015 COMMITMENTS welcomed direct services from Delhi to • Together with industry groups and tourism Sydney with Air India, and in August 2014, bodies, increase the profile of Sydney as one Sydney Airport also welcomed the first of the world’s most attractive destinations; Australian landing of the new Airbus A350. • Actively work to attract airlines from the Asia The Boeing 787 and Airbus A350, together region, in particular the growth markets of with the existing Airbus A380, herald a major China and India; shift in the aviation industry towards quieter, greener, more fuel efficient aircraft. The Boeing • Establish method, baseline and targets 787 Dreamliner is 60 per cent quieter than the for year on year reporting of improvements B767 it is replacing, and uses 20 per cent less in the proportion of next generation fuel per passenger. The A350 XWB features aircraft; and a fuselage comprising more than 50 per cent • Verify estimation methods for breakdowns composite materials which means it is lighter, of passenger and aircraft movement data. requires less fuel to operate and is more efficient to maintain.
SUSTAINABILITY REPORT 2014 41 SUPPORTING PASSENGER GROWTH 4.2 GETTING TO AND FROM SYDNEY AIRPORT
Providing customers and other COLLABORATING TO IMPROVE REDUCING THE airport users with a range of choices ROAD TRAFFIC FLOW WITHIN ENVIRONMENTAL IMPACTS for accessing the airport and AND AROUND THE AIRPORT OF TRAVEL TO AND FROM improving their experience travelling A significant challenge for THE AIRPORT to and from the airport is of high Sydney Airport is managing the Sydney Airport has been developing importance to Sydney Airport. In traffic congestion on roads and new car parking facilities and the context of increasing passenger intersections surrounding and serving products that offer more affordable demand, transport infrastructure is a the airport. Many of the factors and attractive options for use of major focus of the Master Plan 2033 contributing to this are outside the long stay parking at the airport. and the associated five-year Ground direct control of Sydney Airport These solutions support efficient and Transport Plan. These plans provide and require close collaboration with sustainable use of private vehicles for the blueprint for managing transport government agencies to manage. traveling to and from the airport by to, from, and within the airport A key factor is the high volume of reducing the number of pick up and precinct over the next 20 years non-airport traffic using the roads drop off journeys, effectively halving and include: within and around the airport, the number of trips required per • Collaborating with government particularly during morning and passenger. Recent car park upgrades agencies to deliver significant afternoon peaks. have included sustainability measures such as energy-efficient LED lighting improvements to road traffic flow In June 2014, the NSW Government and a parking guidance system to and public transport access within and Sydney Airport announced plans maximise the efficiency of internal and around the airport including to coordinate and deliver a range traffic circulation. In 2015, Sydney building a new ground transport of capital works that will provide Airport is intending to investigate interchange; short-term improvements to reduce replacing the diesel shuttle buses congestion in and around the airport. • Continuing advocacy for improved servicing the T2/T3 (Domestic) Blu Government projects will focus on public transport options and Emu car park with electric buses. pricing; and road improvements surrounding and providing access to the airport PROMOTING AND • Promoting and enabling active precinct, while Sydney Airport ENCOURAGING ACTIVE TRAVEL travel and efficient use of private will deliver on-site works that will In the consultation process transportation. include a new one-way road system supporting the T2/T3 road upgrades, linking T2/T3 (Domestic) terminals Sydney Airport’s passengers use Sydney Airport received strong with access roads, a new road and a broad range of modes to travel support for the proposed changes city exit to improve traffic flow at to from, and within the airport, to the road network generally. T1 (International) and a new hotel as shown in the figure below. Significant feedback that related responding to passenger demand to making it safer and easier for for accommodation near the airport. cyclists and pedestrians to travel to the airport, and within the T2/T3 /// BREAKDOWN OF MODE OF TRAVEL BY PASSENGERS domestic precinct, was also received. In response to this, Sydney Airport MODE OF TRAVEL 2% 2% 1% made a number of changes to the 4% Taxi 27% exposure draft Major Development Drop-off/Pick-up 20% Plan, including provision of end- 10% 27% Coach/Bus 18% of-trip facilities and amenities Train 16% including undercover and secure 16% Car (parked) 10% bicycle storage racks, bathrooms Rental car 4% and lockers, and elevated pedestrian 20% access in order to separate people Public bus 2% 18% from ground-level traffic. Motorcycle/walking 2% Limousine 1%
42 SYDNEY AIRPORT Beyond infrastructure and facilities, Sydney Airport is exploring a range of other ways to promote and support active travel. In 2014, Sydney Airport started an active travel forum with three local councils surrounding the airport, the City of Sydney, NSW Government agencies including NSW Health, and four cyclist organisations, to share plans and challenges for enabling active transport in the local area and identify opportunities for collaboration. Following positive feedback from participants, Sydney Airport plans to coordinate further forums in 2015.
2015 COMMITMENTS • Continue redevelopment works for improving traffic flow in and around the precinct in line with the ENABLING AND ADVOCATING five-year Ground Transport Plan; FOR IMPROVED PUBLIC • Investigate options to transition TRANSPORT OPTIONS from diesel to lower emission electric buses servicing the Blu Emu car park; In 2012, Sydney Airport in conjunction with Transport • Continue to advocate that the for NSW, commissioned a comprehensive survey of over NSW Government increases the 14,000 passengers on the journeys they took to and number of public bus services from the airport. The survey results showed a 2% decline to the airport; and in use of public buses and an increase in use of trains by 5% between 2006 and 2012. • Continue to facilitate an Active Transport forum and identify Sydney Airport’s Major Development Plan includes opportunities to encourage staff provision for a new ground transport interchange at the and contractors to adopt more airport including a bus/coach station with capacity for active forms of travel. around 4,000 vehicles to encourage greater use of public transport. While the NSW Government is responsible for the train and bus routes servicing the airport, Sydney Airport believes that there is an opportunity for increased use of public transport, and has advocated for a reduction of the station access fee on rail and the provision of additional public bus services to the airport. Improved public transport will not only support the airport’s increased passenger flow, but will help to minimise environmental impacts associated with travel to and from the airport. In 2014, Sydney Airport welcomed the NSW Government’s commitment to provide additional public buses to the airport and the incorporation of a weekly cap on the station access fee for train travel using the Opal ticketing system.
SUSTAINABILITY REPORT 2014 43 5 DEVELOPING OUR PEOPLE
44 SYDNEY AIRPORT 5. DEVELOPING OUR PEOPLE 5.1 EMPLOYEE ENGAGEMENT, DEVELOPMENT AND WELLBEING
The airport provides employment In 2014, the total rate of new for over 28,000 people across employee hires was 15.7% and the 28,000+ 800 businesses, of which Sydney total rate of employee departures Airport employs 348 direct staff and was 12.2%. The hiring rate includes Employment at Sydney Airport a further 83 staff through contracts four women and six men under the and outsourced agreements. age of 30, 11 women and 28 men between ages 30 and 50, and two We value our people. Sydney women and three men over the age Airport’s employees are responsible of 50. The departure rate includes 348 for the management and operation two women and four men under Staff directly employed of the airport, and are crucial to our the age of 30, 11 women and 15 men by Sydney Airport ongoing success. between ages 30 and 50, and two Sydney Airport is committed women and nine men over the to building and sustaining a high age of 50. performance culture that supports The total worker absenteeism employees in reaching their potential, 83 rate for 2014 was 2.37%. Worker resulting in an increase of overall absenteeism is measured by actual Staff employed by Sydney Airport organisation capability. absentee days lost expressed as a through contracts and outsourcing Sydney Airport operates in an percentage of total days scheduled extremely dynamic environment. to be worked by the workforce for The business continually reviews the same period. our organisational structures and staffing to ensure we are equipped to meet the changing needs of our customers and stakeholders. Changes were made throughout 2014 to increase the number of customer facing roles in response to increasing peak demand.
/// TOTAL NUMBER OF SYDNEY AIRPORT EMPLOYEES
WOMEN MEN TOTAL Full time 121 293 414 Part time 11 6 17 Total 132 299 431
SUSTAINABILITY REPORT 2014 45 DEVELOPING OUR PEOPLE
VALUES STAFF ENGAGEMENT Sydney Airport’s employees Sydney Airport aims to continuously are made aware of the following improve staff engagement, develop company values, which underpin our employees and support Sydney Airport aims their daily work at the airport: employee performance through a range of mechanisms, including: to continuously improve • Acting honestly and openly to achieve corporate and • Performance and Development staff engagement, social objectives; Planning (PDP) processes; develop our employees • Delivering the highest levels • Learning and Development and support employee of safety and security; opportunities; and • Striving to deliver an outstanding • Employee Health and Safety. performance through airport experience through In late 2012, Sydney Airport a range of mechanisms. operational efficiency, superior undertook a staff engagement survey customer service and innovation; to better understand employee views IMPROVING MANAGEMENT • Fostering a collaborative and and engagement levels. CAPABILITIES supportive work environment • Development and implementation As a direct result of this survey, three that values diversity; of a management training program strategic focus areas were identified: • Working with our partners for all employees with people to achieve superior business • Communication; management responsibilities; outcomes; and • Improving management • Implementation of a program • Responsible growth through capabilities; and aimed to develop management balancing community and • Learning and Development capabilities for employees aspiring environmental needs with opportunities. to move in to people management corporate objectives. roles; and Eight employee volunteer working groups comprising more than 40 • Implementation of a PDP tool. staff were established to share and LEARNING AND DEVELOPMENT develop ideas to respond to these OPPORTUNITIES focus areas. In 2014, Sydney Airport delivered The groups identified improvement a new Learning and Development opportunities and developed program to foster staff engagement initiatives, which were reported to and development. A suite of learning Sydney Airport’s Leadership Team and development opportunities and progressively implemented were available for staff, from the throughout 2014. leadership team and managers, to operational staff. To date, the following initiatives have been rolled out across the Wide consultation was undertaken organisation. to understand the training, learning and development needs of the COMMUNICATION organisation before developing the • Implementation of quarterly all- training program to further develop staff briefings; the collective skillset of Sydney • Implementation of regular team Airport staff. meetings and ‘tool box talks’; and • Refresh of and continuous improvement to the monthly all staff newsletter.
46 SYDNEY AIRPORT LEARNING AND DEVELOPMENT Our Learning and Development program aims to develop organisational capability, as well as provide all staff with further professional development opportunities. 2014 marked the first year of end- to-end training for employees, with a focus on management capabilities. Sydney Airport offered employees a range of learning and development opportunities throughout 2014, including: • Management Bites; • People Bites; • Presenting with confidence; • Develop your capabilities; • Influencing and persuading; • Managing upwards; • Motivating others; and • Clear communication. Sydney Airport continued to provide management training to 15 managers across the business in 2014, after All staff were eligible commencing the program in 2012, during which 85 people managers to participate in People completed the program. The Bites, an opt-in training training covered areas including management style and preferences; program for staff to communication essentials; team work on self-identified development; coaching; delegation; and feedback. This training has areas for improvement, strengthened leadership across the such as communicating organisation and resulted in improved working relationships between effectively; handling managers and their direct reports. conflict; writing All staff were eligible to participate presentations; in People Bites, an opt-in training program for staff to work on self- managing projects; identified areas for improvement, and developing such as communicating effectively; handling conflict; personal confidence. writing presentations; managing projects; and developing personal confidence.
SUSTAINABILITY REPORT 2014 47 DEVELOPING OUR PEOPLE
/// AVERAGE HOURS OF TRAINING PERFORMANCE AND UNDERTAKEN BY EMPLOYEES, PER EMPLOYEE DEVELOPMENT PLANNING The new Performance and Sydney Airport EMPLOYEE CATEGORY WOMEN MEN Development Planning (PDP) tool Senior Executive 4.6 7.3 and process was implemented continues to develop Senior Manager 34.2 32.7 in 2014 and is designed to: Middle Manager 32.2 35.3 training programs for • Create a shared vision of Sydney staff and respond to Manager 15.0 19.2 Airport’s corporate objectives; Professional 19.0 18.6 staff feedback on current Technical 2.1 9.6 • Ensure employees’ efforts are aligned with business priorities; training programs. Administration 13.1 8.8 Specialist 29.6 25.0 • Ensure employees are clear on their roles and responsibilities; In a separate initiative, the National Institute of Dramatic Art (NIDA) /// TOTAL HOURS OF TRAINING • Provide managers with a clearly UNDERTAKEN BY EMPLOYEES conducted on-site Presenting with articulated, objective process Confidence training, targeted at EMPLOYEE CATEGORY WOMEN MEN to manage performance and staff members who deliver regular Senior Executive 15.0 37.0 development; presentations within and outside the Senior Manager 185.5 626.5 • Identify development areas for business. The training covered vocal Middle Manager 418.0 586.0 employees so they can be more and physical techniques; planning; Manager 95.0 663.0 successful in their roles; and and receiving feedback and direction. Professional 800.5 1,090.0 • Provide a platform for ongoing, These Learning and Development Technical 10.5 901.0 formal and informal communication opportunities were offered in Administration 402.0 27.0 between managers and employees. addition to ongoing compliance Specialist 39.5 116.5 and safety training. As part of the annual PDP process, all employees, in consultation with Sydney Airport continues to The figures correlate with the their manager, agree performance develop training programs for staff overall composition of women and objectives and complete a mid-year and respond to staff feedback on men employed at Sydney Airport, and annual performance review, current training programs. Training which was 30.6% and 69.4% in as well as a development plan. programs currently in development 2014 respectively. The below- The outcomes of the development include programs specifically for average training hours per Technical plan assist to form the annual customer-facing employees, non- Employee is a result of roles being Learning and Development strategy, managerial employees and shift predominantly operational shift work, support employees to reach workers, particularly in the areas of which makes attendance at training their potential and build overall fatigue, time and stress management. difficult due to ongoing operational organisational capability. To improve technical competency, requirements. The variance between a range of programs will be available the total hours of training between in 2015, such as a Microsoft Office women and men is predominantly refresher program. a result of the number of women and men in this category (five and 93 respectively). Increasing the amount of training undertaken by Technical Employees will be an area of focus in 2015. The averages have been calculated using actual employee numbers throughout 2014, and therefore will not correspond with employee numbers as at December 2014 as shown in the table on page 53.
48 SYDNEY AIRPORT EMPLOYEE HEALTH /// NUMBER OF WORKPLACE INJURIES IN 2014 BY GENDER AND CAUSE
AND SAFETY TYPE OF INJURY WOMEN MEN TOTAL Safety and security are key priorities Manual handling 0 6 6 for Sydney Airport, and our staff play Slip/trip/fall 5 5 10 an essential role in ensuring the safe Hit by object 2 3 5 operation of the airport. Other 4 6 10 Sydney Airport employees are covered under the Work Health and All employees are employed in Sydney. Safety (WHS) Act and Regulations Manual handling refers to any activity that requires a person to lift, carry, push, pull move (NSW) 2011, managed by the or hold any item. Organisational Safety team. Safety Slip/trip/fall refers to a slip/trip/fall on the same level. practices for Sydney Airport’s Hit by object refers to being hit by a moving object. employees and contractors are Other refers to incidents including ergonomic, fall from height, electrical and vehicle incident. embedded into the day-to-day operations of the airport, and the WOMEN MEN TOTAL WHS policy is implemented at all Injury rate 11 20 31 levels from Executive down. Occupational disease rate 0 0 0 The CEO chairs a WHS Steering Lost time injury frequency rate 2 5.3 5.1 Committee, which is comprised of the Work related fatalities 0 0 0 Sydney Airport Executive Leadership Team, and provides direction for All employees are employed in Sydney. the WHS policy and representation Injury rate is measure by the number of injuries reported. across the organisation. It meets Occupational disease rate is measured by the number of occupational diseases reported. on a bi-monthly basis to review the Lost time injury frequency rate is measured by number of occurrences in the period/number overall safety strategy and reports of hours worked in the period x 1,000,000. from the WHS Staff Committee, as well as to review the Emergency Management System. There were four lost time injuries in 2014, a reduction from five in 2013. The WHS Staff Committee, which The lost time injury frequency rate reports to the WHS Steering also decreased from 6.5 in 2013 Committee, has representatives to 5.1 in 2014. Sydney Airport has from each department. All of Sydney introduced other indicators such Airport’s employees are represented as levels of near miss reporting on the WHS Staff Committee, which to address hazards and to prevent meets on a regular basis to discuss injuries from occurring. safety issues, lost time injury rates and any incidents that have occurred. In 2014, Sydney Airport implemented the Corporate Safety Improvement Weekly safety and security meetings Plan as a proactive health and safety are conducted with representatives initiative focused on continuous from each department to discuss improvement of safety across the any relevant events that occurred airport’s operations. in the week prior. An Aviation Safety Management group also meets on a Sydney Airport continues to work regular basis. In addition, the Safety, closely with the contractors it Security, Environment and Health engages with the common objective Committee (a sub-committee of the of driving safe outcomes. Regular Sydney Airport Corporation Limited interactions include routine reporting, board) receives reports from, and formal audits, management forums provides guidance to, management in and sharing lessons learned. respect of health and safety matters.
SUSTAINABILITY REPORT 2014 49 DEVELOPING OUR PEOPLE
SAFETY MANAGEMENT SYSTEM SAFETY ESSENTIALS PROGRAM After launching Sydney Airport’s The Safety Essentials training integrated Safety Management program was developed in 2013 System (SMS) in 2013, the business Our Safety and is set for completion in 2015. continued to embed safety values It supplements our SMS and ensures through learning and development, Management System that all staff are aware of their training and awareness in 2014. is a comprehensive, obligations with respect to safety. Our SMS is a comprehensive, robust, robust, contemporary Safety Essentials is an interactive contemporary and dynamic system training program with the aim of which underpins our overarching and dynamic system sharing and discussing incidents, safety framework. It integrates which underpins our stories and the factors that our approach to both aviation and contribute to real life incidents at Employee Health and Safety. overarching safety the airport. It is designed to provide an example of safety leadership and The SMS has ten key safety framework. equip attendees with the skills and elements that cover the health and tools to carry out their roles with safety of staff, as well as passengers As part of the continuous respect to WHS. The entire Safety and visitors: improvement of the SMS, a number Essentials program is underpinned • Commitment to safety; of initiatives have been implemented, by legal obligations and embedding including a revised permit to work • Strategic planning and continuous safety into employees’ day-to- process; introduction of an industry improvement; day work. recognised pre-qualification • Consultation and communication; process for contractors and Four modules of Safety Essentials • Risk management; the implementation of project were rolled out to all Heads of Department and People Managers • Contractor management; supervisors on all Sydney Airport contractor engaged in 2014, including Internal Safety • Emergency management; projects to minimise risk; and Incident Reporting, Foundational • Incidence reporting and risk management workshops Risk Management, the Mock Court investigation; for all construction projects. training program with an external • Learning and development; facilitator, and Incident Causation Airport wide initiatives have also Analysis Model (ICAM) lead • Information management; and been implemented to drive safety investigators course. By the end of • Performance review. outcomes, such as an initiative in 2014, 85% of People Managers had conjunction with our security partner completed the first four modules. The SMS was designed to meet SNP to engage stakeholders in the the requirements of the Civil re-invigoration of personal protective The Safety Essentials program Aviation Regulations 1998, Civil equipment (PPE) requirements on has brought the reality of a true Aviation Safety Authority Advisory entry to the aerodrome. This initiative workplace incident to life and Circular 139.16 and the Work Health won the inaugural Australian Airports has provided employees with the and Safety Act and Regulations Association (AAA) Major Airport opportunity to identify various 2011. It is reviewed and updated NSW Safety Award. areas of improvement. on a regular basis to ensure continuous improvement.
50 SYDNEY AIRPORT In particular, the Mock Court session run by Deloitte provided an opportunity for Sydney Airport’s executive team and managers to see a real case play out in a simulated court setting, with a number of staff participating in the key roles of witnesses and defendants. This program was a great success and will be rolled out more broadly in 2015. Following the rollout of the ‘Blue Bus’ safety training for all staff, which aims to develop a just culture relating to safety, new starters received the ‘Blue Bus’ training throughout 2014. Sydney Airport’s safety training program will continue to evolve in line with changing business needs to ensure it continues to meet the highest safety standards. In addition to the above safety training, routine compliance training is regularly planned and completed by frontline staff, ensuring they have the essential skills required to deliver continuing safe and efficient airport operations. These training programs are continually refreshed in line with current regulations and industry best practice, and are subject to regular auditing by the Civil Aviation Safety Authority (CASA) and the Office of Transport Security (OTS).
SUSTAINABILITY REPORT 2014 51 DEVELOPING OUR PEOPLE
MONITORING EMPLOYEE DIVERSITY AND EQUAL As part of the diversity commitment, HEALTH AND SAFETY OPPORTUNITY the Board annually reviews and Targeted programs are in place to Sydney Airport aims to be an reports on: monitor employee health and safety employer of choice that attracts • Workforce gender diversity under the WHS Policy. Sydney the best employee talent available. at all levels; Airport conducts audiometric testing The airport is committed to a diverse • Diversity aspects of Sydney Airport’s for all relevant employees every two workforce with people of different Executive Leadership Team; years, as required by legislation, and backgrounds and experience that noise monitoring for employees’ work bring the best talent to our business. • Measurable objectives for achieving areas every five years. gender diversity; and To do this, Sydney Airport provides • Progress towards achieving Sydney Airport’s Infrastructure and a safe and supportive environment those objectives. Services group monitors the indoor to encourage employees, develop air quality inside the terminal facilities their capabilities and contribute Our commitment and approach to on a six monthly basis or as required. to their success. diversity also resulted in an overall increase in the number of women Sydney Airport staff and contractors Sydney Airport’s People & employed in 2014: 107, up from who work in airside areas are required Performance team proactively 104 in 2013. to comply with the Civil Aviation ensures a merit based recruitment Safety Authority’s (CASA) Drug process that provides opportunity As at December 2014, our and Alcohol Management (DAMP) for all applicants, regardless of Leadership Team had 44.4% regulations. These regulations apply factors such as race, gender, sexual female representation and females to people working in high risk areas preference, marital status, cultural comprised 30.8% of all staff at including the ramp and airfield. heritage and religious beliefs. Sydney Airport. DAMP provides dual benefits as it Gender diversity is one of Sydney Sydney Airport was also pleased ensures people working in high risk Airport’s key commitments. In 2014, to receive the Workplace Gender areas are fit for duty, minimising the Ann Sherry joined the Sydney Airport Equality Agency notification of risk of safety incidents, in addition board, thus doubling the female compliance with the new reporting to ensuring consistent aviation representation on the Board to 29%. framework, which was launched safety outcomes. Staff who regularly In 2014, Sydney Airport’s Governance for the 2013-2014 reporting year. work in airside areas are required Bodies (Board, CEO and Senior to complete training and a drug and Employees leaving the organisation Executives) comprised 60% women alcohol test prior to accessing the are given the opportunity to and 40% men aged between 30 and precinct and are subject to random complete a survey, and to request 50 years, and 23% women and 77% drug and alcohol testing conducted a face to face interview with People men over 50. by CASA. Organisations which have & Performance. Exit interviews staff operating in airside areas are undertaken in 2014 suggested that required to provide regular reports no gender or diversity issues resulted confirming continuing compliance in individual employees’ decision with the program. to leave the company.
52 SYDNEY AIRPORT /// WOMEN AND MEN BY EMPLOYEE CATEGORY – DIRECT EMPLOYEES
1% 2% 4% 5% 2% 2% Sydney Airport’s 8% People & Performance 29% 11% 26% 7% team proactively 6% 14% 5% ensures a merit based recruitment process that 39% 39% provides opportunity for all applicants. WOMEN MEN UNDER OVER UNDER OVER 30 30-50 50 30 30-50 50 2015 COMMITMENTS CEO 0 0 1 0 0 0 • Develop time management, health Senior executive 0 3 0 0 2 4 and well-being training programs Senior manager 0 4 1 0 17 3 for non-managerial employees and shift staff; Middle manager 0 10 2 0 12 5 Manager 0 7 0 2 23 10 • Complete roll-out of the next phase Technical 0 3 2 3 58 32 of the Safety Essentials training Professional 4 35 3 5 37 20 program; and Administration 3 21 7 1 1 2 • Establish method, baseline Specialist 0 1 0 0 1 3 and targets for collecting and Totals 7 84 16 11 151 79 monitoring workforce diversity beyond gender.
DEFINITIONS OF EMPLOYEE CATEGORIES Senior executive: Primary responsibility for a department or a business unit. Senior manager: Reports directly to a Senior Executive. Middle manager: Plans, organises, directs, controls and/or coordinates an operational function. Manager: Accountable for a defined business outcome which usually involves the management of resources or a function. Technical: Performs a variety of skilled tasks, applying technical, trade or industry- specific knowledge. Professional: Performs analytical, conceptual and/or creative tasks through the application of theoretical knowledge and experience. Administration: Provides administrative support to a department or business unit. Specialist: Specialises in a particular area of activity/work in a field of expertise.
SUSTAINABILITY REPORT 2014 53 6. FEEDBACK
To provide feedback on this report please contact: Sally Fielke General Manager Corporate Affairs [email protected]
54 SYDNEY AIRPORT 7. GLOBAL REPORTING INITIATIVE G4 CONTENT INDEX
GENERAL STANDARD DISCLOSURES REFERENCE STANDARD DISCLOSURE TITLE PAGE NUMBER (OR LINK) Strategy and analysis G4-1 Statement from the most senior decision-maker of (a) CEO Statement (p.2) the organisation Organisational profile G4-3 Name of the organisation (a) Governance and ethics (p.8) G4-4 Primary brands, products and services (a) + (AO) About Sydney Airport (pp.6-7) G4-5 Location of the organisation's headquarters (a) Corporate Directory (p.71) G4-6 Number of countries where the organisation (a) About Sydney Airport (p.5) operates, and names of countries with either significant operations or that are specifically relevant to the sustainability topics covered in the report G4-7 Nature of ownership and legal form (a) + (AO) About Sydney Airport (p.5); Governance and ethics (p.8) G4-8 Markets served (a) + (AO) About Sydney Airport (pp.5-7) G4-9 Scale of the organisation (a) + (AO) About Sydney Airport (pp.5-7); Employee engagement, development and wellbeing (p.45) G4-10 Total number of employees by employment type, (a), (c) and (d) Employee engagement development and employment contract and region, broken down by wellbeing (p.45); All employees are based in Sydney. gender (b) Employee engagement development and wellbeing - Diversity and equal opportunity (p. 53) (e) No. G4-11 Percentage of total employees covered by collective 50% bargaining agreements G4-12 Description of the organisation’s supply chain Sydney Airport’s main suppliers include those that support the airport’s developments, or deliver services to and maintenance of airport facilities. In 2014, Sydney Airport’s top supplier categories by spend were: 1. Construction services 2. Security services and equipment 3. Planning and design 4. Utilities – electricity/water/gas 5. Facilities and equipment maintenance including cleaning contractors 6. Information Technology 7. Contract staff services 8. Grounds and airfield maintenance G4-13 Significant changes during the reporting period None regarding the organisation’s size, structure, ownership, or its supply chain G4-14 Explanation of whether and how the precautionary The precautionary principle is reflected in Sydney Airport's approach or principle is addressed by the organisation approach to safety and environmental management. G4-15 Externally developed economic, environmental and (a) Inter Airport Environment Forum, Airports Carbon social charters, principles, or other initiatives to which Accreditation Program and the London Benchmarking the organisation subscribes or which it endorses Group. G4-16 Memberships of associations (such as industry (a) Airports Council International, Tourism and Transport associations) and national or international advocacy Forum, Sydney Airport Planning Coordination Forum, organisations Sydney Business Chamber, Australian Airports Association, Sydney Airport Community Forum.
SUSTAINABILITY REPORT 2014 55 GENERAL STANDARD DISCLOSURES REFERENCE STANDARD DISCLOSURE TITLE PAGE NUMBER (OR LINK) Identified material aspects and boundaries G4-17 All entities included in the organization’s (a)-(b) Governance and ethics (p.8) consolidated financial statements or equivalent documents including indication which of these are not covered by the report G4-18 Process for defining the report content and the (a)-(b) About this report (pp.9-13) Aspect Boundaries G4-19 Material Aspects identified in the process for defining (a) About this report (pp.10-12) report content G4-20 Aspect Boundary within the organisation for each (a) About this report (p.13) material Aspect G4-21 Aspect Boundary outside the organisation for each (a) About this report (p.13) material Aspect G4-22 Effect of any restatements of information provided (a) NA - This is Sydney Airport's first sustainability report. in previous reports, and the reasons for such restatements G4-23 Significant changes from previous reporting periods (a) NA - This is Sydney Airport's first sustainability report. in the Scope and Aspect Boundaries Stakeholder engagement G4-24 List of stakeholder groups engaged by the (a) Embracing stakeholder relationships (p.15) organisation G4-25 Basis for identification and selection of stakeholders (a) Embracing stakeholder relationships (p.15) and with whom to engage Appendix (pp.68-69) G4-26 Approaches to stakeholder engagement, including (a) Embracing stakeholder relationships (p.15) and frequency of engagement by type and by Appendix (pp.68-69) and About this report (p.9). stakeholder group Representatives of the following stakeholder groups were engaged as part of the materiality process informing this report: Australian, NSW and local governments and agencies, Suppliers, Airlines, Customers, Investors, local communities. G4-27 Key topics and concerns that have been raised (a) About this report (pp.10-12) through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Report profile G4-28 Reporting period (such as fiscal or calendar year) for (a) About this report (p.9) information provided G4-29 Date of most recent previous report (if any) (a) NA - This is Sydney Airport's first sustainability report. G4-30 Reporting cycle (such as annual, biennial) (a) Annual G4-31 Contact point for questions regarding the report or (a) Feedback (p.54) its contents G4-32 ‘In accordance’ option chosen for the report (a) About this report (p.9) (b) GRI G4 Content Index (pp.55-67) (c) NA as this Report has not been assured G4-33 Policy and current practice with regard to seeking (a)-(d) About this report (p.9) external assurance for the report
56 SYDNEY AIRPORT GENERAL STANDARD DISCLOSURES REFERENCE STANDARD DISCLOSURE TITLE PAGE NUMBER (OR LINK) Governance G4-34 Governance structure of the organisation, including (a) Governance and ethics (p.8) committees of the highest governance body and any committees responsible for decision-making on economic, environmental and social impacts Ethics and integrity G4-56 Values, principles, standards and norms of behavior (a) Governance and ethics (p.8) such as codes of conduct and codes of ethics
SUSTAINABILITY REPORT 2014 57 SPECIFIC STANDARD DISCLOSURES DMA AND STANDARD DISCLOSURE IDENTIFIED REASON(S) FOR EXPLANATION FOR INDICATORS TITLE PAGE NUMBER (OR LINK) OMISSION(S) OMISSION(S) OMISSION(S) Category: Economic Material aspect: Economic performance G4-DMA Generic Disclosures on (a) Sydney Airport’s Material Management Approach Issues (p.10) (b)-(c) Sustainable and efficient use of the asset (pp.28-29); Annual Report G4-EC1 Direct economic (a) Sustained positive value generated and contribution to society and the distributed economy (p.29); Master Plan 2033 (pp.32-40)
ITEM A$M Revenue 1,163.6 Economic value 1,163.6 generated Operating (164.3) expenditure Employee (46.9) benefits expenses Payments to (985.0) providers of capital Payments to (7.9) governments Community (1.5) investments Economic value (1,205.6) distributed Economic value (42.0) retained (b) Sydney Airport operates a single airport. Material aspect: market presence G4-DMA Generic Disclosures (a) Sydney Airport’s Material on Management Issues (p.10) Approach (b)-(c) Anticipated increase in passenger demand (p.39-41) Master Plan 2033 (pp. 44-59) AO1 Total number of (a) Anticipated increase in Total annual The information There are no passengers annually, passenger demand (p.39). number of ‘origin is currently systems in place broken down by Note that the breakdowns and destination’ unavailable. that would enable passengers on included in this dataset are and transfer collection of international and based on estimations derived (including this data as it is domestic flights, from combining two data transit) not required for and broken down by sources - one with the most passengers. management origin-and-destination accurate total figures and purposes. and transfer a second which provides passengers, including a reliable indication of the transit passengers split between the different categories.
58 SYDNEY AIRPORT SPECIFIC STANDARD DISCLOSURES DMA AND STANDARD DISCLOSURE IDENTIFIED REASON(S) FOR EXPLANATION FOR INDICATORS TITLE PAGE NUMBER (OR LINK) OMISSION(S) OMISSION(S) OMISSION(S) AO2 Total annual number (a) Anticipated increase in of aircraft movements passenger demand (p.40). by day and by night, Note that the breakdowns broken down by included in this dataset are commercial passenger, based on estimations derived commercial cargo, from combining two data general aviation, and sources - one with the most state aviation flights accurate total figures and a second which provides a reliable indication of the split between the different categories. AO3 Total amount of cargo (a) Anticipated increase in Breakdowns The information There are no tonnage passenger demand (p.39). of total cargo is currently systems in place Note that the breakdowns tonnage unavailable. that would enable included in this dataset are by cargo collection of based on estimations derived transported this data as it is from combining two data on all-cargo not required for sources - one with the most flights and cargo management accurate total figures and transported on purposes. a second which provides passenger flights a reliable indication of the (belly cargo). split between the different categories. Material aspect: indirect economic impacts G4-DMA Generic Disclosures (a) Sydney Airport’s Material on Management Issues (p.10) Approach (b)-(c) + (AO) Sustainable and efficient use of the asset (pp.28-29) Master Plan 2033 (pp.32-40) G4-EC8 Significant indirect (a)-(b) Sustained positive economic impacts, contribution to society and including the extent of economy (p.28-29) Master impacts Plan 2033 (pp.32-40) Material aspect: Procurement practices G4-DMA Generic Disclosures (a) Sydney Airport’s Material on Management Issues (p.10) Approach (b)-(c) Fair and ethical operating practices (p.21) G4-EC9 Proportion of Omitted. See notes. Definitions and The information There are no spending on local data on local is currently systems in place suppliers at significant spend. unavailable. that would enable locations of operation collection of this data as it is not required for management purposes.
SUSTAINABILITY REPORT 2014 59 SPECIFIC STANDARD DISCLOSURES DMA AND STANDARD DISCLOSURE IDENTIFIED REASON(S) FOR EXPLANATION FOR INDICATORS TITLE PAGE NUMBER (OR LINK) OMISSION(S) OMISSION(S) OMISSION(S) Category: Environmental Material aspect: Energy G4-DMA Generic Disclosures (a) Sydney Airport’s Material on Management Issues (p.10) Approach (b)-(c) + (AO) Aviation and climate change impacts (pp.32-33) Master Plan 2033 (pp.159-161); Airport Environment Strategy 2013- 2018 (pp.49-52) G4-EN3 Energy consumption (a), (c), (e)-(g) Aviation and within the organization climate change impacts (p.32) (b) None (d) None Material aspect: Water G4-DMA Generic Disclosures (a) Sydney Airport’s Material on Management Issues (p.10) Approach (b)-(c) + (AO) Commitment to environmental management (pp.30-31) Master Plan 2033 (pp.156-169) Airport Environment Strategy 2013- 2018 (pp.53-56) G4-EN8 Total water withdrawal (a)-(b) Commitment to by source environmental management (p.31) G4-EN9 Water sources None significantly affected by withdrawal of water G4-EN10 Percentage and total (a)-(c) Commitment to volume of water environmental management recycled and reused (p.31) Material aspect: Biodiversity G4-DMA Generic Disclosures (a) Sydney Airport’s Material on Management Issues (p.10) Approach (b)-(c) + (AO) Commitment to environmental management (pp.30-31) Master Plan 2033 (pp.156-169); Airport Environment Strategy 2013- 2018 (pp.67-70) G4-EN11 Operational sites (a) Commitment to owned, leased, environmental management managed in, or (pp.30-31) Airport adjacent to, protected Environment Strategy 2013- areas and areas of 2018 (pp.14, 67-70) high biodiversity value outside protected areas G4-EN12 Description of (a) Commitment to significant impacts of environmental management activities, products, and (pp.30-31) Airport services on biodiversity Environment Strategy 2013- in protected areas 2018 (pp.14, 67-70) and areas of high biodiversity value outside protected areas
60 SYDNEY AIRPORT SPECIFIC STANDARD DISCLOSURES DMA AND STANDARD DISCLOSURE IDENTIFIED REASON(S) FOR EXPLANATION FOR INDICATORS TITLE PAGE NUMBER (OR LINK) OMISSION(S) OMISSION(S) OMISSION(S) Material aspect: Emissions G4-DMA Generic Disclosures (a) Sydney Airport’s Material on Management Issues (p.10) Approach (b)-(c) + (AO) Aviation and climate change impacts (pp.32-33) Master Plan 2033 (pp.159-161); Airport Environment Strategy 2013- 2018 (pp.49-52) G4-EN15 Direct greenhouse (a),(b),(e)-(g) Aviation and Base year, The information Sydney Airport gas (GHG) emissions climate change impacts the rationale is currently is currently in (Scope 1) (p.32) for choosing unavailable. the process (c) None the base year, of reviewing (d) Omitted - see notes emissions in the and updating base year, and its Carbon the context for Reduction any significant Strategy. This changes in will include emissions establishing a that triggered base year that recalculations will be reported of base year against in future emissions. reports. G4-EN16 Indirect greenhouse (a),(b),(d)-(f) Aviation and Base year, The information Sydney Airport gas (GHG) emissions climate change impacts the rationale is currently is currently in (Scope 2) (p.32) for choosing unavailable. the process (c) Omitted - see notes the base year, of reviewing emissions in the and updating base year, and its Carbon the context for Reduction any significant Strategy. This changes in will include emissions establishing a that triggered base year that recalculations will be reported of base year against in future emissions. reports. Material aspect: Effluents and waste G4-DMA Generic Disclosures (a) Sydney Airport’s Material on Management Issues (p.10) Approach (b)-(c) + (AO) Commitment to environmental management (pp.30-31) Master Plan 2033 (pp.156-169); Airport Environment Strategy 2013- 2018 (pp.74-75)
SUSTAINABILITY REPORT 2014 61 SPECIFIC STANDARD DISCLOSURES DMA AND STANDARD DISCLOSURE IDENTIFIED REASON(S) FOR EXPLANATION FOR INDICATORS TITLE PAGE NUMBER (OR LINK) OMISSION(S) OMISSION(S) OMISSION(S) G4-EN23 Total weight of waste (a)-(b) + (AO). Commitment by type and disposal to environmental method management (p.31) Sydney Airport does not collect data on quantities of quarantine waste off international flights. Quarantine waste off aircraft is the responsibility of the airlines and they contract directly to waste service providers, the only involvement we have is to provide space for the storage of the waste. Material aspect: Compliance G4-DMA Generic Disclosures (a) Sydney Airport’s Material on Management Issues (p.10) Approach (b)-(c) Fair and ethical operating practices (p.21) Management of regulatory compliance is embedded within all key planning and decision-making processes, supported by specific roles focused on ensuring compliance with relevant statutory procedures, practices and processes as part of the day to day operation of the airport. G4-EN29 Monetary value of (a)-(b) Fair and ethical significant fines and operating practices (p.21); total number of non- In 2014, Sydney Airport did monetary sanctions not receive any fines or non- for non-compliance monetary sanctions for non- with laws and compliance. regulations Material aspect: Transport G4-DMA Generic Disclosures (a) Sydney Airport’s Material on Management Issues (p.10) Approach (b)-(c) + (AO) Commitment to environmental management (pp.30-31); Getting to and from Sydney Airport (pp.42-43); Master Plan 2033 (pp.156-169); Airport Environment Strategy 2013- 2018 (pp.63-66) G4-EN30 Significant (a)-(c) Commitment to environmental impacts environmental management of transporting (pp.30-31); Getting to products and other and from Sydney Airport goods and materials (pp.42-43); Master Plan for the organization's 2033 (pp.156-169); Airport operations, and Environment Strategy 2013- transporting members 2018 (pp.63-66) of the workforce
62 SYDNEY AIRPORT SPECIFIC STANDARD DISCLOSURES DMA AND STANDARD DISCLOSURE IDENTIFIED REASON(S) FOR EXPLANATION FOR INDICATORS TITLE PAGE NUMBER (OR LINK) OMISSION(S) OMISSION(S) OMISSION(S) Category: Social Sub-category: Labor practices and decent work Material aspect: Employment G4-DMA Generic Disclosures (a) Sydney Airport’s Material Policies to hire The information Sydney Airport on Management Issues (p.10) locally, reduce is currently does not collect Approach (b)-(c) Employee turnover for unavailable. this data and engagement, development employees with is currently and wellbeing (pp.45-46) access to secure reviewing its (AO) Omitted – see notes areas of the capabilities to airport, retention report on this of employees by data in future next contractor. years. G4-LA1 Total number and (a)-(b) Employee rates of new employee engagement development hires and employee and wellbeing (p.45) turnover by age group, gender and region Material aspect: Occupational health and safety G4-DMA Generic Disclosures (a) Sydney Airport’s Material on Management Issues (p.10) Approach (b)-(c) + (AO) Employee health and safety (pp.49-52) G4-LA5 Percentage of total (a)-(b) Employee health and workforce represented safety (p.49) in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs G4-LA6 Type of injury and (a)-(b) + (AO) Employee Lost day The information Sydney Airport rates of injury, health and safety (p.49) rate, Worker is currently does not collect occupational diseases, Absenteeism unavailable. this data and lost days, and rate by gender, is currently absenteeism, and total and Supervised reviewing its number of work- workers data. capabilities to related fatalities, by report on this data region and by gender in future years. Material aspect: Training and education G4-DMA Generic Disclosures (a) Sydney Airport’s Material on Management Issues (p.10) Approach (b)-(c) Learning and development (pp.47-48) G4-LA9 Average hours of (a) Learning and development training per year per (p.48) employee by gender, and by employee category G4-LA11 Percentage of (a) Performance and employees receiving development planning (p.48) regular performance and career development reviews, by gender and by employee category
SUSTAINABILITY REPORT 2014 63 SPECIFIC STANDARD DISCLOSURES DMA AND STANDARD DISCLOSURE IDENTIFIED REASON(S) FOR EXPLANATION FOR INDICATORS TITLE PAGE NUMBER (OR LINK) OMISSION(S) OMISSION(S) OMISSION(S) Material aspect: Diversity and equal opportunity G4-DMA Generic Disclosures (a) Sydney Airport’s Material on Management Issues (p.10) Approach (b)-(c) Diversity and equal opportunity (pp.52-53) G4-LA12 Composition of (a)-(b) Diversity and equal Breakdown by The information Sydney Airport governance bodies opportunity (p.53) minority group. is currently does not collect and breakdown unavailable. this data and of employees per is currently employee category reviewing its according to gender, capabilities to age group, minority report on this group membership, data in future and other indicators of years. diversity Sub-category: Human rights Material aspect: Security practices G4-DMA Generic Disclosures (a) Sydney Airport’s Material on Management Issues (p.10) Approach (b)-(c) + (AO) Safety and security (pp.34-35); Partners and responsibilities for managing Sydney Airport (p.6) G4-HR7 Percentage of security Security personnel are personnel trained in trained in human rights the organization's related practices by the human rights policies contracted security service or procedures that are provider, SNP, in accordance relevant to operations with legislative requirements. Sub-category: Society Material aspect: Local communities G4-DMA Generic Disclosures (a) Sydney Airport’s Material on Management Issues (p.10) Approach (b)-(c) + (AO) Embracing stakeholder relationships (pp.15-17) G4-SO1 Percentage of (a) 100% - Sydney Airport operations with only operates a single airport. implemented See Sydney Airport's Master local community Plan 2033 (p.20) for details engagement, impact assessments, and development programs Material aspect: Anti-corruption G4-DMA Generic Disclosures (a) Sydney Airport’s Material on Management Issues (p.10) Approach (b)-(c) Fair and ethical operating practices (p.21) G4-SO3 Total number and (a)-(b) Fair and ethical percentage of operating practices (p.21) operations assessed for risks related to corruption and the significant risks identified
64 SYDNEY AIRPORT SPECIFIC STANDARD DISCLOSURES DMA AND STANDARD DISCLOSURE IDENTIFIED REASON(S) FOR EXPLANATION FOR INDICATORS TITLE PAGE NUMBER (OR LINK) OMISSION(S) OMISSION(S) OMISSION(S) Material aspect: Public policy G4-DMA Generic Disclosures (a) Sydney Airport’s Material on Management Issues (p.10) Approach (b)-(c) Active involvement in public policy development (pp.18-20) G4-SO6 Total value of political (a)-(b) Active involvement in contributions by public policy development country and recipient/ (p.19) beneficiary Material aspect: Anti-competitive behaviour G4-DMA Generic Disclosures (a) Sydney Airport’s Material on Management Issues (p.10) Approach (b)-(c) Fair and ethical operating practices (p.21) G4-SO7 Total number of legal (ab)-(b) Fair and ethical actions for anti- operating practices (p.21) competitive behaviour, anti-trust, and monopoly practices and their outcomes Material aspect: Compliance G4-DMA Generic Disclosures (a) Sydney Airport’s Material on Management Issues (p.10) Approach (b)-(c) Fair and ethical operating practices (p.21); Management of regulatory compliance is embedded within all key planning and decision- making processes, supported by specific roles focused on ensuring compliance with relevant statutory procedures, practices and processes as part of the day to day operation of the airport. G4-SO8 Monetary value of (a)-(c) Fair and ethical significant fines and operating practices (p.21); total number of non- In 2014, Sydney Airport did monetary sanctions not receive any fines or non- for non-compliance monetary sanctions for non- with laws and compliance. regulations
SUSTAINABILITY REPORT 2014 65 SPECIFIC STANDARD DISCLOSURES DMA AND STANDARD DISCLOSURE IDENTIFIED REASON(S) FOR EXPLANATION FOR INDICATORS TITLE PAGE NUMBER (OR LINK) OMISSION(S) OMISSION(S) OMISSION(S) Sub-category: Product responsibility Material aspect: Customer health and Safety G4-DMA Generic Disclosures (a) Sydney Airport’s Material on Management Issues (p.10) Approach (b)-(c) + (AO) Safety and security (pp.34-35) G4-PR2 Total number of (a)-(b) There were no incidents of non- incidents of non-compliance compliance with with regulations and regulations and voluntary codes concerning voluntary codes health and safety at Sydney concerning the health Airport. and safety impacts of products and services during their life cycle, by type of outcomes AO9 Total annual number (a) Safety and security (p.35) of wildlife strikes per 10,000 aircraft movements Material aspect: Product and service labeling G4-DMA Generic Disclosures (a) Sydney Airport’s Material on Management Issues (p.10) Approach (b)-(c) Meeting passenger expectations regarding the airport experience (pp.23-26); Meeting airline expectations (p.27) G4-PR5 Results of surveys (a) Sydney Airport’s Material measuring customer Issues (p.10)(b)-(c) Meeting satisfaction passenger expectations regarding the airport experience (pp.23-26); Meeting airline expectations (p.27) Material aspect: Compliance G4-DMA Generic Disclosures (a) Sydney Airport’s Material on Management Issues (p.10) Approach (b)-(c) Meeting passenger expectations regarding the airport experience (pp.23-26); Meeting airline expectations (p.27). G4-PR9 Monetary value of (a)-(c) Fair and ethical significant fines for operating practices (p.21); non-compliance with In 2014, Sydney Airport did laws and regulations not receive any fines or non- concerning the monetary sanctions for non- provision and use of compliance. products and services
66 SYDNEY AIRPORT SPECIFIC STANDARD DISCLOSURES DMA AND STANDARD DISCLOSURE IDENTIFIED REASON(S) FOR EXPLANATION FOR INDICATORS TITLE PAGE NUMBER (OR LINK) OMISSION(S) OMISSION(S) OMISSION(S) Category: Sector-specific assets Material aspect: Inter-modiality G4-DMA Sector-specific (a) Sydney Airport’s Material Disclosures on Issues (p.10) Management (b)-(c) + (AO) Commitment to Approach environmental management (pp.30-31); Getting to and from Sydney Airport (pp.42- 43); Master Plan 2033 (pp.156- 169); and Airport Environment Strategy 2013-2018 (pp.63-66). Material aspect: Business continuation and emergency preparedness G4-DMA Sector-specific (a) Sydney Airport’s Material Disclosures on Issues (p.10) Management Approach (b)-(c) + (AO) Safety and security (pp.34-35) Material aspect: Service quality G4-DMA Sector-specific (a) Sydney Airport’s Material Disclosures on Issues (p.10) Management (b)-(c) Meeting passenger Approach expectations regarding the airport experience (pp.23-26); Meeting airline expectations (p.27) Material aspect: Provision of services or facilities for persons with special needs G4-DMA Sector-specific (a) Sydney Airport’s Material Disclosures on Issues (p.10) Management (b)-(c) Meeting passenger Approach expectations regarding the airport experience (pp.26) Material aspect: Noise G4-DMA Sector-specific (a) Sydney Airport’s Material Disclosures on Issues (p.10) Management (b)-(c) + (AO) Managing noise Approach impacts on nearby communities (pp.36-37); Continuous descent approaches (CDA): Master Plan 2033 (p. 185) Noise preferential routes: Long Term Operating Plan Precision navigation: Master Plan 2033 (p. 185) Ground-based noise: Master Plan 2033 (p.180) Off-airport noise insulation: Master Plan 2033 (pp. 170, 184) Aircraft landing during the curfew are not permitted to use reverse thrust to a level greater than “idle reverse thrust” as legislated. AO7 Number and Omitted. see notes. Number and The information Sydney Airport percentage change percentage is currently does not collect of people residing change of unavailable. this data. This in areas affected by people residing information is noise in areas affected captured by Air by noise. Services Australia.
Note that as this is Sydney Airport’s first sustainability report, external assurance has not been sought on any aspect or indicator this year.
SUSTAINABILITY REPORT 2014 67 APPENDIX
STAKEHOLDER GROUP TYPE OF ENGAGEMENT FREQUENCY OF ENGAGEMENT All • Sydney Airport website (also available in a simplified Chinese microsite) • Daily • Sydney Airport mobile app (also available in simplified Chinese) • Daily • Facebook • Daily • Twitter • Daily • Instagram • Daily • Advertisements on local radio • As scheduled Passengers • Customer Satisfaction Survey • Monthly • Airport Council International (ACI) Customer Quality of Service Survey • Monthly • Posters around the terminal • As needed • Airport Ambassadors • Daily • Lost property service • As needed • Direct feedback via email, website, social media and phone • As needed • Competitions requesting ideas on improvement • As needed • Access to app to directly report cleaning or maintenance issues to the • As needed duty teams • Multi-lingual app and website • Daily Airlines • Airline Operators Committee T1 • Monthly • Airline Operators Committee T2 • Monthly • Aeronautical Capital Investment Consultative Group • Monthly • Airline satisfaction surveys • Monthly or as needed • Joint Passenger Facilitation Meetings • Bi-annually • Common User Terminal Equipment User Board • Quarterly • Airport Emergency Committee • Quarterly • Day-to-day communications as part of relationship and operational • Quarterly management • Daily
Employees • Staff Engagement Survey • Bi-annually • Consultative groups • As needed • Day-to-day communications as part of operational management • Daily • WHS Staff Committee • Six-weekly • Staff newsletter • Monthly • Exit surveys • As needed • Staff briefings • Quarterly • Service Star program • Monthly • Performance reviews • Semi-annually • All staff bulletins and emails • As needed Community • Sydney Airport Community Forum • Quarterly and local • Planning Coordination Forum • Half yearly government • Community updates in local newspapers • Approximately quarterly • Stalls at local community events • As needed • Letterbox flyers • As needed • Local council briefings • Ongoing • Informal engagement through community sponsorship programs and • Ongoing other initiatives
Border • Day-to-day communications as part of operational management • Daily agencies • Planning and facilitation management review • Weekly • Border agency operational and customer focus area review • Bi-annually • Strategic airport management • Monthly or as scheduled Airport service • Communication briefings • As needed providers (incl. • Consultative groups • As needed tenants and • Day-to-day communications as part of operational management • Daily suppliers)
68 SYDNEY AIRPORT STAKEHOLDER GROUP TYPE OF ENGAGEMENT FREQUENCY OF ENGAGEMENT Investors • Annual General Meeting • Annually • Results announcements • Bi-annually • Regular briefings for institutional investors and ratings agencies • Twice per year at the time of reporting audited financial results • Investor roadshows covering Australia, Asia, Europe and North America • Twice per year with a total of 200 face to face meetings held annually between management and investors • ASX releases • As needed • Traffic announcements • Monthly • Institutional and Retail investor events • Annually Tourism bodies • Regular meetings as part of collaborative efforts to attract airlines to • Weekly Sydney • Participation in and partnerships with business and tourism events in • As needed Sydney • Overseas delegations • As needed Industry • Attendance at meetings, conferences, functions and events • Monthly to quarterly associations • Briefings on specific topics (where current or relevant) • As needed NSW • Regular meetings with relevant agencies, e.g. Emergency Services, • Daily/monthly Government Roads and Maritime Services (RMS) and Destination NSW and agencies • Briefings for Members of Parliament and/or Members of Legislative • As needed Council on topics of interest • Operations, major events and incidents • As needed
Australian • Regular meetings with Department of Infrastructure and Regional • Monthly Government Development and agencies • Briefings for MPs and/or Senators on topics of interest • As needed • Day-to-day communications as part of operational management • Daily • Airservices Australia • As needed • Emergency Management Australia • As needed Media • Briefings to media groups • Monthly • Airport tours • As needed • Dedicated media releases • Multiple times monthly • Liaison in response to specific requests • As needed • On-call media phone • Daily Regulators • Regular engagement with Australian Competition and Consumer • As needed, plus annual Commission monitoring report • Civil Aviation Safety Authority • Daily, plus an annual audit • Regular meetings with the Department of Infrastructure and Regional • Multiple times monthly, plus Development – Office of Transport Security an annual audit • Work Cover (incident reports and investigations) • As needed • Airport Coordination Australia • Regular meetings every two months, with additional meetings as needed for operational matters
SUSTAINABILITY REPORT 2014 69 70 SYDNEY AIRPORT CORPORATE DIRECTORY
SYDNEY AIRPORT LIMITED ACN 165 056 360 Central Terrace Building 10 Arrivals Court Sydney International Airport NSW 2020 Investor Relations: +61 2 9667 9871 Toll free: 1800 181 895 www.sydneyairport.com.au/investors/ Directors of Sydney Airport Limited: • Max Moore-Wilton (Chairman) • Trevor Gerber • Michael Lee • John Roberts • Stephen Ward • Kerrie Mather • Ann Sherry Company secretary: Jamie Motum
THE TRUST COMPANY (SYDNEY AIRPORT) LIMITED ACN 115 967 087/AFSL 301162 Level 12 123 Pitt Street Sydney NSW 2000 Directors of The Trust Company (Sydney Airport) Limited: • Russell Balding • Patrick Gourley • Christopher Green Company secretaries: Rupert Smoker and Jamie Motum The Trust Company (Sydney Airport) Limited is the responsible entity of Sydney Airport Trust 1
REGISTRY Computershare Investor Services Pty Limited Yarra Falls 452 Johnston Street Abbotsford Vic 3067 Telephone: 1800 102 368 or +61 3 9415 4195 Facsimile: +61 2 8234 5050