Page 69 - AGL Sustainability Report 2011

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Climate
change
Sustainability Performance Report 2011 67
Carbon risk
Greenhouse footprints – supporting
information
Supporting information – Operational Footprint
Data preparation and boundaries
Greenhouse gas emissions, energy consumption and energy
production data reported as part of the AGL Greenhouse Footprint
have been prepared in line with AGL’s interpretation of the
National
Greenhouse and Energy Reporting Act 2007
(Cth) and supporting
regulations.
Reporting period
The data presented in the AGL greenhouse footprints has been
prepared for the reporting period 1 July 2010 to 30 June 2011.
Greenhouse gas emissions estimation methodology
The Operational Footprint has been estimated in line with the
National Greenhouse and Energy Reporting (Measurement)
Determination 2008 (as amended) published by the Commonwealth
of Australia for the FY2011 reporting year, and related guidelines.
Greenhouse gas emissions are all expressed in tonnes of carbon
dioxide equivalents (tCO
2
e).
Energy consumption and energy production measurement
The measurement of energy consumption and energy production
presented in the Operational Footprint has been carried out in line
with the National Greenhouse and Energy Reporting (Measurement)
Determination 2008 (as amended) published by the Commonwealth
of Australia (unless otherwise indicated). Energy consumption and
energy production are all expressed in gigagoules (GJ).
Organisational boundaries
Greenhouse gas emissions, energy consumption and energy
production presented in the Operational Footprint have been
reported for the corporate group of AGL Energy Limited (the
parent company and its wholly owned Australian subsidiaries),
as determined in line with the
National Greenhouse and Energy
Reporting Act 2007
(Cth).
Operational boundaries
Greenhouse gas emissions, energy consumption and energy
production in the Operational Footprint have been reported for
facilities over which AGL has ‘operational control’, as defined in
the
National Greenhouse and Energy Reporting Act 2007
(Cth),
within the organisational boundaries.
Scope 3 greenhouse gas emissions
Scope 3 greenhouse gas emissions have been presented separately
from the Operational Footprint for FY2011. Scope 3 greenhouse gas
emissions have been treated separately as the reporting of this data
is not required under the
National Greenhouse and Energy Reporting
Act 2007
(Cth). Scope 3 emission sources from AGL’s activities
include purchase of fuel (mainly natural gas) and electricity use for
office based activities. Scope 3 emissions from sources such as
office waste disposal and travel are negligible and have not
been included.
Scope 3 emissions have been estimated using emission factors
published by the Commonwealth in the National Greenhouse
Accounts Factors (July 2011).
Supporting information – Equity Footprint
The Equity Footprint sets out AGL’s share (by percentage investment
level) of the emissions from fully or partially owned entities. AGL
considers that the Equity Footprint broadly meets the requirements
of the WBCSD/WRI Greenhouse Gas Protocol’s ‘Equity Share
Approach’ to greenhouse accounting.
AGL sources data from equity partners, where available, otherwise
specific assumptions are made which are disclosed. Equity Footprint
data reported only includes scope 1 and scope 2 emissions.
AGL has no overseas interests which result in significant greenhouse
gas emissions. AGL acquired equity interests in four exploration
licenses in the Taranaki Basin in New Zealand in the Mosaic Oil
takeover. AGL is not the operator of these projects, and since they
are in the exploration phase, the emissions are not considered to
be significant.
Supporting information – Energy Supply Footprint
The Energy Supply Footprint estimates the greenhouse gas
emissions associated with the consumption of electricity and gas
by AGL customers. The model used to estimate the emissions has
been redeveloped in FY2011 to utilise assumptions published by
the Department of Climate Change rather than using internal AGL
data. Previous years’ data has been recalculated using this revised
methodology. Results for the FY2011 Energy Supply Footprint
model were reviewed internally by the Merchant Energy and
Economic Policy and Sustainability teams.
AGL has recalculated greenhouse gas emissions associated with
gas supplied to customers for FY2009 and FY2008 to exclude the
greenhouse gas emissions associated with gas combustion at AGL
facilities. In previous years these greenhouse gas emissions had been
included in both the Gas and Electricity Supply Footprints.
As these two footprints are combined to provide the overall Energy
Supply Footprint this in effect ‘double counted’ greenhouse gas
emissions associated with gas combustion at AGL operated facilities.