Responsibility for identifying, managing and monitoring climate-related impacts ultimately rests with APA’s Board. The Board discharges these duties through the support of APA’s Board subcommittees and management across the organisation, including frontline managers. For information on Corporate Governance generally at APA, refer to https://www.apa.com.au/about-apa/our-organisation/corporate-governance/.
Board of Directors: The Board is responsible for setting the strategic direction of APA and monitoring management's implementation of that strategy. The Board therefore oversees APA’s strategy to realise climate change mitigant opportunities, including the delivery of low carbon alternatives to traditionally high emissions-intensive sources of power generation across Australia, as well as investing in renewable energy for the long-term. APA’s growth strategy is premised on the foundation that natural gas provides an energy solution enabling a more carbon-efficient future, whilst maintaining economic growth for Australia as a country.
Ensuring effective risk management is also the responsibility of the Board. The Board is responsible for determining the risk appetite of APA and approving and reviewing the risk management strategy and policies of the company.
The Board has established an Audit and Risk Management Committee with specific responsibility for providing assistance to the Board in fulfilling its corporate governance and oversight responsibilities, including overseeing APA’s Risk Management Framework. In its responsibility for reviewing and monitoring emerging risks, the Audit and Risk Management Committee has oversight of climate change related risks which are embedded within APA’s various key risks (refer to Section 12 of the FY2017 Directors’ Report and APA’s Sustainability Report), and as explained below. Climate change risks have been identified as one of the risk areas that require monitoring as part of this framework.
APA’s Health, Safety and Environment (HSE) Committee is delegated responsibility by the Board for reviewing and monitoring APA’s HSE compliance, performance and systems effectiveness. The HSE Committee reviews APA’s environmental priorities and commitments, including management systems and strategy plans and integrates these priorities within APA’s framework of operating effectively and long term values. Where climate change might affect environmental risk, the HSE Committee monitors this as part of the environmental risk profile.
Management: APA’s senior management team is responsible for the implementation of APA’s strategy and execution of strategies to manage climate change related risks. The Executive Risk Management Committee, and the relevant business units together with both internal and where appropriate external experts, review all material risks in this area. Reports analysing and monitoring risks and opportunities (including those related to climate change) over the short and long-term are then presented to the Board.