Climate change

As New Zealand’s primary thermal electricity generator, Genesis Energy recognises the need to understand and reduce the impact of our activities on climate change.

Genesis Energy is taking action to reduce emissions while balancing climate change considerations, New Zealand’s increasing energy demand profile and the need to make sure our customers have a reliable energy supply.

Genesis Energy’s climate change strategy is a comprehensive whole-of-company approach. Our goal is to responsibly manage our impact on climate change both through our own activities and emissions and in partnership with our customers and stakeholders.

The company’s climate change strategy has been developed so genesis energy can effectively operate in a carbon constrained world. We place importance on measuring and reporting on our greenhouse gas emissions so we can monitor our progress against targets.

Reducing the carbon intensity of Genesis Energy’s activities.

Our key sustainability objective is to reduce the carbon intensity of our Genesis generation portfolio over time. Specifically we have set a target to reduce carbon intensity by 30% below 2005 / 2006 levels by 2015

To achieve this objective several other targets have been identified and are reviewed annually to ensure they retain their relevance and impact. These targets include

• Consent and construct 300MW of renewable energy projects by 2015
• Continue to implement efficiency improvements at existing plants
• Advance the commercialisation of wave and tidal energy generation in New Zealand
• Champion New Zealand Inc generation initiatives for carbon capture and sequestration

Specific actions to achieve these targets have been published in our Annual Report . We will report on our performance against these targets in future Annual Reports.

We are also focused on reducing the carbon intensity of our non-generation activities. Our emphasis is to reduce the amount we use, with offsetting an option only after other avenues have been explored. We have targets in place to help us achieve this objective with actions published in the Annual Report. Find out how we are reducing our impact on a day-to-day basis.

Encouraging customers to reduce their greenhouse gas emissions

We encourage our customers to reduce their greenhouse gas emissions and environmental footprint. Key initiatives include:

Schoolgen

Genesis Energy has developed Schoolgen to provide students, teachers and parents with a hands-on learning experience that teaches them about renewable energy and climate change. It enables selected schools to generate some of their own electricity using a 2KW Photovoltaic system. All schools in New Zealand also have access to freely available teaching resources and real-time generation data from the solar panels on the Schoolgen web site.

Energy Efficiency advice and product offers

Genesis Energy continues to provide energy efficient offers and advice to customers to assist them in reducing their carbon footprint.

Adapting to a carbon constrained world

It is likely that New Zealand will introduce an Emissions Trading Scheme in the future. Any such scheme will have far reaching impacts for Genesis Energy. In response to such legislation, we are increasing the focus on our climate change strategy and ensuring our systems and processes are ready for the implementation of new government policy.

Genesis Energy continues to actively participate in the development of national climate change policy. For more information refer to Genesis Energy Submissions on Climate Change Bills

Genesis Energy will have compliance obligations under any New Zealand Emissions Trading scheme. For every tonne of CO2 Genesis Energy emits, we will be required to procure one carbon unit and surrender it to the government at a later date.

Measuring and reporting our emissions

A high level of importance is placed on measuring and reporting our greenhouse gas emissions. Measurement allows us and our stakeholders to see our performance against the objectives and targets we have set ourselves.

During the financial year 2007/2008 Genesis Energy was responsible for:

• 4,990,000 tonnes of CO2 from electricity generation
• A generation portfolio with a carbon intensity of 547 tonnes C02 per GWh
• 977 tonnes of CO2 from our non-generation activities or 1.9 tonnes per Full Time Equivalent staff member

These figures are updated on a financial year basis.