The most carbon-conscious companies and what they are doing to reduce emissions

Friday, 12 November 2021

The United Nations Climate Change Conference of the Parties (COP26) wrapped up in Glasgow on Friday.

Countries gathered to negotiate the final details of a global bid to keep the planet warming between 1.5 and 2 degrees Celsius.

Meanwhile, companies in New Zealand have taken the step to reduce their own emissions, as the country works towards cutting emissions by 41 per cent by 2030.

With a set Science Based Target, which are a goals developed by a business to provide it with a clear route to reduce greenhouse gas emissions of under 1.5C, and a signatory of the Climate Leaders Coalition, to actively reduce its carbon usage by 2030, here are four of New Zealand’s most carbon-concious businesses:

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New Zealand Post

NZ Post has stated its business will be carbon-neutral from 2030.

The state-owned postal service was one of the first New Zealand-based companies to commit to a Science Based Target of 1.5 degree in 2019.

Its target is to reduce its greenhouse gas emissions by 32 per cent by 2030 and it created a decarbonisation fund to invest in low carbon activities.

NZ Post began buying electric vehicles in 2019 and has committed to an all electric fleet by 2025, and will reduce emissions caused by delivering goods by the end of 2025.

“Even with achieving this there will still be some of the approximately 1200 vans that are diesel or petrol vehicles but also some EV. We have longer term goals to keep working with this part of the fleet,” NZ Post chief executive officer Dave Walsh said.

Emissions from heavy vehicle freight contractors will be reduced by 10 per cent also by 2025. NZ Post would not disclose what the heavy freight contractors are, but said some are owner-operator and others are large fleets.

“It’s quite clear that New Zealand businesses need to reduce carbon emissions and provide sustainable products and services for our customers,” Walsh said.

Spark

Spark believes New Zealanders need to harness the power of technology to solve new problems and do things differently to help address climate change, which includes a need for transformative, system-wide change across New Zealand.

“We’re ready to play our part to create a low carbon, high-tech Aotearoa, and a positive digital future for all,” Leela Gantman, corporate relations director, who oversees Spark’s sustainability strategy, said.

Over the last year, Spark has matured its approach to sustainability, including undertaking a significant programme of work to set a Science Based Target initiative, to ensure it supports global efforts to keep warming below 1.5 degrees.

Spark expects to see reductions in its emissions as the telco decommissions old equipment such as outdated telephone networks, shifts to electric vehicles, and optimises its office footprint.

However, these benefits will be offset by the rollout of its 5G network, expanded data centre operations and investment in its core infrastructure.

“We have set ourselves an ambitious target and as we work towards it, we will see emissions go up in some areas and down in others, as we look to bring on new technology and retire legacy technology,” Gantman said.

“So while we have to look harder at our own business for the carbon emissions reductions that we are committed to making, and for which renewable energy will play such an important role in us delivering, we believe that this will help New Zealand move forward to a high productivity, lower carbon future over the long term.”

Electricity accounts for more than 80 per cent of the company’s emissions, so New Zealand’s transition to renewable electricity production is critical to Spark’s ability to meet its reduction target, she said.

For example, last year Spark’s overall emissions increased, largely due to a significant increase in the country’s non-renewable electricity generation. This increase in emissions was offset by improvements in energy efficiency, and a significant drop in business travel.

“We also have a significant opportunity to use technology to address environmental challenges. We will do this through our investment in infrastructure and innovation, and by supporting businesses to adapt to be more sustainable through technology,” Gantman said.

Ports of Auckland

In 2016, Ports of Auckland set an ambitious goal to be a zero-emissions port by 2040 and eliminating methyl bromide emissions, a fumigant used for treating exported and imported goods.

In 2017, it partnered with Enviro-Mark Solutions and is using the Certified Emissions Measurement and Reduction Scheme (Cemars) to measure and manage its greenhouse gas emissions.

It is the first port in New Zealand to become a Cemars certified organisation.

In the 2017 financial year it generated 16.2 tonnes of CO2 equivalent, and to reduce that total it created an emissions management and reduction plan.

It was the first port to instal LED floodlights, which save 1.17 gigawatt hours of electricity, nearly 7 per cent of the port's total electricity usage.

The port has commissioned the world’s first fully electric ship handling tug, which will be delivered in the next few months and is leading in the development of New Zealand’s hydrogen economy by establishing a hydrogen refuelling station at the port to support hydrogen fuel cell vehicle trials.

Next year the port plans to build a hydrogen production and refuelling facility and will start using renewable diesel in its heavy machinery after a successful trial this year.

“When we set our ambitious zero-emissions goal in 2016 we did not know how we were going to meet it, but we knew we had to do it, for the sake of future generations,” general manager of sustainability Rosie Mercer said.

“Since then, we have worked with local and international partners to develop a robust and verified plan to achieve our goal, and we are confident we will hit it.”

Fonterra

Fonterra was the first dairy company in New Zealand to sign up to the science-based targets initiative.

It recently announced an aspiration to be net-zero emissions by 2050 and to put an end to using coal by 2037, with the majority of the coal reduction happening over the next eight years.

This year the cooperative reduced its greenhouse gas emissions from coal by 11 per cent, primarily because of the conversion of its Te Awamutu factory to using renewable wood pellets to fire the boilers instead of coal.

The reduction was reported as part of Fonterra’s yearly sustainability scorecard, which tracks progress towards environmental and human resources targets.

Fonterra also announced earlier in the year its Stirling cheese plant would be converted from coal boilers to wood biomass, making it the company’s first 100 per cent renewable thermal energy site.

The switch to biomass boilers will reduce the Stirling factory’s yearly emission by 18,500 tonnes of CO2, the equivalent of 7000 cars.

“Our grass-fed cows and hard work by farmers and employees mean we are already the most emissions-efficient producer of dairy in the world,” chief operating officer Fraser Whineray said.

“We know that the biggest environmental gains will come from finding ways to reduce our methane emissions. We don’t believe there will be one silver bullet and that is why we have a number of very significant innovation partnerships underway to find solutions,” he said.