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APA Delivers Progress on its Climate Transition Plan
Published on
22 September 2023
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APA Group (ASX: APA) has today released its first Climate Report, demonstrating solid progress towards the delivery of its Climate Transition Plan 2030 interim targets and goals.

APA Group CEO and Managing Director Adam Watson said the Climate Report illustrates APA’s commitment to playing a key role in Australia’s energy transition by making solid progress in the delivery of APA’s Climate Transition Plan and demonstrating enhanced disclosure and transparency in the reporting of climate-related information.

“We are committed to doing our part to accelerate the energy transition by decarbonising our business and being the partner of choice as our customers decarbonise,” Mr Watson said.

“In FY23, we delivered a 6.7 per cent net reduction in gas infrastructure emissions and a 5.3 per cent reduction in power generation infrastructure emissions intensity, compared to our FY21 base year, representing solid progress towards our 2030 interim targets and goals. We have also established a new target to reduce operational methane emissions by at least 30 per cent by 2030, compared with FY21.

“In FY23 we also embedded the necessary governance and reporting processes to support our Climate Transition Plan, including incorporating an internal carbon abatement price, which is applied to emissions reduction and avoidance initiatives as well as stay-in-business projects.

“We recognise that stakeholder support for our climate strategy is essential for the achievement of our ambitions and at our 2022 Annual Meeting we fulfilled our commitment to hold an advisory securityholder vote to approve our Climate Transition Plan, which achieved significant majority support.

“As a leading Australian owned and listed energy infrastructure business, APA is well positioned to participate in and support Australia’s energy transition, in line with our strategy to be the partner of choice in delivering infrastructure solutions for Australia’s energy transition.”

Progress in FY23

The APA Climate Report is aligned with the Financial Stability Board’s Taskforce on Climate-related Financial Disclosures (TCFD) and details APA’s progress against its Climate Transition Plan released in 2022.

It demonstrates momentum towards APA’s net zero pathway. Highlights over the past 12 months include:

  • A 6.7 per cent net reduction in gas infrastructure emissions compared to APA’s FY21 base year.
  • A 5.3 per cent reduction in power generation emissions intensity compared to APA’s FY21 base year.
  • The commissioning of the Dugald River Solar Farm, Australia’s largest remote-grid solar farm (outside the NEM and WEM), supporting APA’s goal to reduce the operational emissions intensity of its power generation infrastructure.
  • Completion of a nationwide compressor electrification study and commencement of a business case for the electrification of our Wallumbilla compressor, as well as efficiency optimisation initiatives for select other compressors.
  • Procuring 100 per cent renewable electricity from FY23.
  • Investing in APA’s net zero emissions reduction initiatives with a committed investment of $150 million to $170 million between FY23-30.
  • Applying APA’s Offset Criteria where offsets are required. APA’s approach is to procure a diverse portfolio of offsets and to invest in projects with broader social and ecological benefit (co-benefits).
  • Completing a physical climate risk screening assessment of all majority owned assets.
  • Establishing a target to reduce operational methane emissions by at least 30 per cent by FY30, compared to APA’s FY21 base year.
  • Deploying leading-edge aerial methane detection technology on three major pipelines.
  • Initiating a strategy and leasing of electric vehicles, for APA’s goal to achieve a 100 per cent zero direct emissions vehicle fleet by 2030.
  • Enhancing APA’s Scope 3 emissions inventory and identifying priority emissions reduction pathways in line with the commitment to introduce a Scope 3 reduction goal in 2025.

APA has also established FY24 focus areas, which are aligned with APA’s Climate Transition Plan. Among other initiatives, these focus areas will see APA progress electrification opportunities for gas infrastructure, advance the pipeline of renewable projects in the Pilbara and other regions, improve emissions data, progress the next round of transition risk and opportunity assessments, and continue developing a Scope 3 strategy.

Disclaimer: Please refer to the attached Climate Report for more detailed information on APA’s targets, planning and progress against its Climate Transition Plan, including important information on how APA measures its progress and areas of uncertainty and assumptions which could impact delivery of its Plan.