Sustainability. Matters. Apa Group Sustainability Report. 2017
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apa group sustainability report. 2017 sustainability. matters. APA Group Sustainability Report 2017 SA our sustainability approach. APA Group is one of Australia’s largest Our vision is to connect Australia to companies – in fact we are Australia’s its energy future and to do this we contents. number one gas infrastructure must connect with and respect our business and as such are a leader stakeholders. We are committed to Message from the within the energy industry, playing delivering connected and long term Managing Director S1 a key role in defining and delivering energy solutions that are safe, reliable, the future of Australian energy. innovative and cost-effective so that: Customers S2 Our infrastructure is built for long our customers can meet their business Environment S4 term use and is underpinned by long objectives; our securityholders earn Community S7 term contracts with creditworthy secure and predictable returns; our Employees S10 counterparties. Our business practices employees have a safe and stimulating must be sustainable to reflect and workplace; and we continue to add Investors S13 support these long term customer value to the communities and the and capital commitments. environment that we operate in. At APA we are guided by ‘Our Values’ which anchor how we act and how we make decisions. We reach for the STARS quite literally: Service Adaptable We are committed to We respond high quality Safe and adapt to service delivery our changing achieved through We will environment listening, maintain a safe by innovating, understanding, environment and modifying our anticipating and a professional Results behaviours and responding to our workplace improving our We meet our customers’ needs where we work Trustworthy processes and commitments collaboratively, systems and deliver and treat each We accept excellent results other with individual to the benefit of respect and collective our stakeholders responsibility for through the delivery of all tenacity and business outcomes. perseverance We do what we say we’re going to do APA’s Annual Report and Sustainability Edinburgh Centre for Carbon Neutral Report are printed on ecoStar Company and the fibre source has uncoated 100% recycled paper. been independently certified by the ecoStar is an environmentally Forest Stewardship Council (FSC). responsible paper made Carbon ecoStar is manufactured from 100% Neutral. The greenhouse gas Post Consumer Recycled paper in a emissions of the manufacturing Process Chlorine Free environment process including transportation of under the ISO 14001 environmental the finished product to BJ Ball Papers management system. Warehouses has been measured by the APA Group Sustainability Report 2017 message from the managing director. As Australia’s leading energy infrastructure company, we take our leadership role and responsibility seriously, particularly our approach to sustainable growth. At APA, we are focused on connecting As part of the development process For our investors who back our Australia to its energy future, investing for all these long–life projects, as well business, we understand their need over $13 billion in energy infrastructure as our business-as-usual practices, to have access to objective disclosure, across mainland Australia to-date. our management frameworks and not only quantitative measures Our infrastructure is built for the long systems must take a full life-cycle of standard financial reporting as term to meet our customers’ needs for approach. In planning we consider contained in the Directors’ Report, reliable and sustainable energy supply. the impact on communities and but also on the qualitative aspects We are committed to practices and surrounding environment not only of APA’s strategy. relationships with our stakeholders during construction, but also in the To all our stakeholders, I thank you that ensure we are all here for the years to follow as our infrastructure for working alongside APA as we long run and that our impact on becomes a permanent fixture of the continue to connect Australia to its communities and the environment region that will need to be maintained. energy future. is a positive one for all concerned. Our people are also intrinsic to this I am pleased to provide you with APA’s sustainable approach. Safety, diversity 2017 Sustainability Report as a record and inclusion, encouraging innovation of our performance and accountability and organisational development to our stakeholders. are all key aspects of APA’s people \ management framework. It is Our customers are why we are in essential for the success of our business. In FY2017, we committed to projects, to have committed, skilled, $1.2 billion of growth projects to meet conscientious and motivated people our customers’ energy needs. These Mick McCormack working across the life-cycle of Chief Executive Officer and projects are diverse in infrastructure APA’s projects. and location but have the common Managing Director purpose of providing more energy for It is a dynamic world we live in and Australia. In Western Australia we will our actions today will determine be constructing a wind farm; a solar the consequences of how we live farm; a 198 kilometre pipeline and a and operate tomorrow and the gas-fired power station. In Victoria, years to come. APA has long held APA will overhaul and refurbish a the view that climate change is a moth-balled gas processing plant real, current and future issue for the that will enable our customer to Australian energy sector as it is also develop a new offshore gas field to for the rest of the world. Our two inject gas into the eastern Australian primary activities - natural gas and market. In Queensland, not only will renewable energy - are key enablers we be developing a large scale solar of Australia’s transition to a lower farm, but we have also commenced carbon sustainable economy. Our construction of a pipeline that will foray into gas-fired power generation facilitate injection of much needed gas and renewables around a decade ago supplies into the domestic market. in addition to gas transmission was with the future in mind. Ten years on, we have developed the experience and knowledge to be part of the solution of Australia’s future energy needs, so that Australia’s carbon and climate goals support the need to maintain both energy security and business competitiveness. APA Group Sustainability Report 2017 S1 customers. We will deliver value to our – Providing market-leading flexible solutions to meet our customers and create responsive customers’ changing requirements. solutions to meet their needs by: – Working with customers to provide optimal energy market solutions. – Ensuring the highest level of service reliability to enable customers to manage their operations. – Delivering value to customers by optimising the use of APA’s infrastructure assets. – Maximise use of existing assets and profitably continue to expand APA’s asset portfolio in order to meet customers’ needs. FY2017 Performance Actions For FY2018 Growth Growth – Completed the latest stage of the Victorian Northern Interconnect – Progress construction of the various projects announced in FY2017 to expansion project, increasing the bi-directional capacity between Victoria meet agreed commissioning schedules including the Darling Downs and New South Wales. Solar Farm; Badgingarra Wind Farm; Emu Downs Solar Farm; – Won a competitive bid process to design, construct and operate the Yamarna Gas Pipeline; Yamarna Power Station; and Orbost Gas 50km greenfield Reedy Creek Wallumbilla Gas Pipeline that will connect Processing Plant. into APA’s East Coast Grid. APA entered into a 20 year GTA with APLNG – Continue to identify and capture revenue growth opportunities that which underwrites the pipeline construction. deliver flexible, responsive and sustainable solutions for our customers. – Successful in winning the competitive tenders for both the 198 km greenfield Yamarna Gas Pipeline and 45MW Yamarna gas-fired Power – Continue to work with customers such as Santos and Blue Energy Station in Western Australia. Gas will flow through four APA pipelines to to realise planned projects into committed projects. the new Yamarna Power Station which will supply reliable power Flexible Customer Solutions to the Gruyere JV gold mine project. – Continue to offer flexible transportation and storage services and – Entered into a 13 year power purchase agreement with Synergy, an innovative solutions to meet our customers’ diverse requirements existing customer in Western Australia, which underpins development across Australia. and construction of APA’s new 20MW Emu Downs Solar Farm. Synergy – Continue to refine the Integrated Operations Centre (IOC), grid already takes the wind generated power from APA’s Emu Downs Wind operations and customer management system to deliver reliable Farm which is adjacent to the greenfield solar farm site. The two sites supply and enhanced services. will share infrastructure. – Business implementation of Gas Market Reform Group (GMRG) – Entered into a 12 year offtake agreement with existing customer rules and ongoing proactive engagement with customers. Alinta that will underpin construction of APA’s new 130MW Badgingarra Wind Farm in Western Australia. The site is adjacent to Emu Downs and will share operational synergies with the existing wind farm and new solar farm. – Acquired the 110MW Darling Downs Solar Farm greenfields project in Queensland, including a long term offtake agreement until December 2030 with Origin