Page 62 - AGL Sustainability Report 2011

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Climate
change
AGL Energy Limited 60
AGL’s goal is to invest in cleaner energy forms to reduce the greenhouse
gas intensity of energy across the supply chain.
AGL supports bi-partisan political support for reductions in
emissions of greenhouse gases consistent with Australia playing its
part in stabilising global greenhouse gas atmospheric concentrations
at levels below 450 parts per million by mid-century. The stationary
energy supply sector will require significant decarbonisation. As a
leading investor in the sector that accounts for approximately 40%
of Australia’s greenhouse gas emissions, carbon reduction targets
pose both risks and opportunities for AGL.
The two key focus areas for the
Climate change chapter
of this
report are carbon risk and sustainable generation sources.
Carbon risk:
Risks to AGL presented by climate change mitigation
policies (e.g. carbon pricing) could become significant over time.
To pre-emptively manage these risks and work towards minimising
exposure, the emissions-intensity of electricity generated by
AGL is included as a key performance indicator. Underpinning
this indicator is a range of strategies, including preparing for the
introduction of a carbon price. AGL’s greenhouse footprint is also
included in this section of the report.
Sustainable generation sources:
The opportunities for AGL in
cementing a leadership position in low-greenhouse gas emitting
energy generation and supply are significant. AGL continues to
be Australia’s leading investor in renewable energy, leveraging
off existing policies and positioning the company for future value
realisation as the costs of carbon become accounted for in the
energy supply chain.
Introduction
Climate change
Carbon risk
Operational
Footprint
Equity
Footprint
Energy Supply
Footprint
Renewable
energy
target
Carbon price
Research,
development and
deployment
Sustainable generation sources
1 Figures refer to the capacity and/or sent-out greenhouse gas intensity (scope 1 and scope 2) of electricity generation assets over which AGL has operational control, regardless
of who owns the asset. Assets where AGL has rights to the electricity output only are not included. Australia-wide scope 2 greenhouse gas emissions intensity fgure is from the
National Greenhouse Accounts Factors published by the Department of Climate Change and Energy Effciency, July 2011 (latest estimate is 0.91 tCO
2
e/MWh).
Vision
Target FY2011
Performance FY2011
Target FY2012
Carbon risk
Emissions intensity
significantly lower than
the market average.
Intensity compared to Australian
electricity average
1
:
>50%
below
Intensity compared to
Australian electricity average
1
:
>50%
below
Intensity compared to Australian
electricity average
1
:
>50%
below
Sustainable generation sources
Australia’s largest
renewable energy
company.
Renewable proportion of
operated generation capacity
1
:
45%
Renewable proportion of
operated generation capacity
1
:
45%
Renewable proportion of
operated generation capacity
1
:
48%