2023 Sustainability Report

Channel Infrastructure NZ Limited (NZX:CHI), New Zealand's largest fuel infrastructure business, has today released its 2023 Corporate Sustainability Report: 'Resilient Infrastructure for a Decarbonising World'. This report reflects the first disclosure prepared in accordance with the new Aotearoa New Zealand Climate Standards, and captures the risks, challenges and opportunities from climate change for the business. It also provides stakeholders with a new ESG (environmental, social, governance) framework to measure performance. Commenting, CEO Rob Buchanan said: "In 2021, we set ourselves three ambitious targets, which reflected the way that we wanted to manage the significant transition of the business. It's great to be able to report that we have made significant progress against all three. We have successfully delivered a just transition as described in the report, with 99% of those our people who left the business through the transition being supported onto new paths. We are on target to achieve our goal of Net Zero Scope 1 and 2 emissions by 2030. In practical terms, this means that we have gone from being one of the largest emissions-intensive businesses listed on the New Zealand stock exchange (with emissions of over c.1.2 million tCO2e as a refinery), to accounting for less than 0.1% of Scope 1 and 2 CO2 emissions on the NZX50 in FY23. We continue to work with our customers with the aim of using our infrastructure to support the decarbonisation of the transport sector. Utilising what we have already will help to keep transport energy available when needed." In 2023, following the effective completion of the import terminal conversion, the company undertook a strategy refresh, realigning Channel's vision to be a world-class energy infrastructure company with a purpose of delivering resilient infrastructure solutions to meet changing fuel and energy needs. "Sustainability and climate risk are material to our business, and these issues, alongside the opportunities from the coming climate and energy transition, directly shaped our strategy refresh last year. Today's report outlines the way we have incorporated ESG matters into our future strategy, including by incorporating a selection of our material targets into the company scorecard which will align with the scorecard used to determine short-term incentive payments for our people in 2024." Alongside the preparation of this report, Channel also undertook a materiality assessment, to determine the Company's future ESG priorities, as well as undertaking a specific climate change physical and transition risk assessment. "We know that, in the long term, the future of our core business is going to be in aviation fuel supply, given our critical position in supplying fuel to New Zealand's main gateway, Auckland International Airport. At present, liquid SAF is emerging as the most technically viable way to bring down aviation emissions for medium- to long-haul travel. At Marsden Point we have the unique opportunity to support decarbonising the jet fuel supply chain via either the receipt and storage of imported SAF through our infrastructure, or by enabling domestic manufacture of SAF at our site if this becomes feasible in the future. We are firmly focused on ensuring we are ready to leverage our critical role in the liquid aviation fuel supply chain, and this work is already underway. To test our capabilities, we received New Zealand's first shipment of SAF through our facilities as part of a trial for Air New Zealand last year, and we are investigating with Fortescue the potential to manufacture eSAF at Marsden Point." "In the short to medium term, while the energy transition is underway, traditional transport fuels will still have an important role to play in keeping the economy moving. That means the reliability and resiliency of our assets remains a priority so that we can continue to support New Zealand's supply chain now, as well as into the future. Our ambition is to deliver world-class operations. This not only supports the long-term reliability and resilience of our assets, but positions Channel as a partner of choice for a broader role in New Zealand's future energy supply chain as we look to grow at Marsden Point and beyond." ENDS - Authorised by: Chris Bougen General Counsel and Company Secretary Media contact Laura Malcolm communications@channelnz.com End CA:00427062 For:CHI Type:GENERAL Time:2024-02-29 08:30:34