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Clean Energy Finance Corporation Annual Report 2018–19

Appendix D: Environmental Performance and Ecologically Sustainable Development Report

Introduction

In 2018–19, the CEFC made new investment commitments of almost $1.5 billion, across a range of transactions designed to deliver lower emissions. These commitments enable the CEFC to directly apply the principles of Ecologically Sustainable Development (ESD) to our activities, in accordance with section 516A(6) of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act).

Figure 34: ESD activities 2018–19

Reporting requirement	CEFC response
How have the CEFC’s activities accorded with the principles of ESD?	By mobilising investment in renewable energy, energy efficiency and low emissions technologies, CEFC investment commitments support the development, deployment and commercialisation of projects and businesses to reduce greenhouse gas emissions across diverse areas of economic activity.
Outcomes contributing to ESD	The CEFC furthers and advances the principles of ESD through:
	The “integration principle”: The CEFC demonstrates how financial returns can be achieved by investing for environmental and sustainable outcomes. By encouraging the private sector to invest alongside it, the CEFC demonstrates how to integrate economic, environmental, social and equitable considerations into investment decision-making. The “integration principle”: The CEFC demonstrates how financial returns can be achieved by investing for environmental and sustainable outcomes. By encouraging the private sector to invest alongside it, the CEFC demonstrates how to integrate economic, environmental, social and equitable considerations into investment decision-making. The “dissemination principle”: The CEFC gathers evidence based on our project experience and shares this with the broader market to demonstrate how investments in low emission outcomes make sound business sense and to encourage the uptake of clean energy technologies. We work with project developers, counterparties and other investors to share the ESD achievements and insights gained as a result of our investment commitments

Reporting requirement

CEFC response

How have the CEFC’s activities accorded with the principles of ESD?

By mobilising investment in renewable energy, energy efficiency and low emissions technologies, CEFC investment commitments support the development, deployment and commercialisation of projects and businesses to reduce greenhouse gas emissions across diverse areas of economic activity.

Outcomes contributing to ESD

The CEFC furthers and advances the principles of ESD through:

The “integration principle”: The CEFC demonstrates how financial returns can be achieved by investing for environmental and sustainable outcomes. By encouraging the private sector to invest alongside it, the CEFC demonstrates how to integrate economic, environmental, social and equitable considerations into investment decision-making.
The “integration principle”: The CEFC demonstrates how financial returns can be achieved by investing for environmental and sustainable outcomes. By encouraging the private sector to invest alongside it, the CEFC demonstrates how to integrate economic, environmental, social and equitable considerations into investment decision-making.
The “dissemination principle”: The CEFC gathers evidence based on our project experience and shares this with the broader market to demonstrate how investments in low emission outcomes make sound business sense and to encourage the uptake of clean energy technologies. We work with project developers, counterparties and other investors to share the ESD achievements and insights gained as a result of our investment commitments

Figure 35: Environmental performance reporting

Theme	Steps taken to improve CEFC ESD performance	Further measures to improve CEFC ESD outcomes
Energy efficiency and emissions reduction	The CEFC has a range of measures in place to increase its own energy efficiency and emissions reduction, including: open plan offices, allowing for increased occupant density and enhanced control of air conditioning system energy efficient laptops and monitors, which employees are encouraged to turn off at the end of each da efficiency lighting and controls in our Sydney, Melbourne, Perth and Brisbane office centralised printing facilities, allowing for fewer high capacity multi-function devices, which have energy saving modes when not in us reduction in inter-office business travel through each office having sophisticated video conferencing facilitie electricity consumption and flight use communicated to staff on a quarterly basis to encourage behavioural chang Brisbane, Perth and Sydney office leases each have a 5 Star NABERS Energy Rating for the base buildin Melbourne office lease is targeting 5 Star NABERS Energy Rating for the base building post refurbishment and is currently tracking at 4 Star end-of-trip facilities are provided in each of Brisbane, Melbourne, Perth and Sydney offices, with employees encouraged to walk, run, cycle or use public transport to and from wor no corporate car parking spaces or corporate vehicles provided to employees	The CEFC is a growing organisation, reflecting the increasing scale and breadth of new investment commitments and the investment portfolio under management. As well as our investments, which seek to make a positive contribution to ESD principles, we are also committed to reducing our own carbon footprint, including adopting opportunities for increased energy efficiency where possible. We undertake an annual assessment of our organisational footprint in accordance with the Australian Government National Carbon Offset Standard (NOCS) and offset our carbon emissions through an accredited scheme. The CEFC’s organisational carbon footprint was independently assessed and audited at 1,184 tCO₂-e for 2017–18, the latest available data. Our emissions have been fully offset via accredited carbon offset units. The CEFC was pleased to obtain NCOS certification for both 2016–17 and 2017–18. We will continue to maintain NCOS accreditation. The CEFC NCOS reports are available on the CEFC website.
Waste	The CEFC has a range of measures in place to reduce waste, including: CEFC office furniture has been selected for its high recycled/recyclable conten as part of the relocation of the Brisbane office, furniture from the previous tenant was reused all offices have waste recycling schemes and staff are encouraged to use the appropriate waste stream to reduce landfill waste in Sydney and Brisbane, organic waste is put into a specific waste stream provided by the building manage staff are given the opportunity to dispose of e-waste through specialised collection systems offered from time to time.	The CEFC is a growing organisation, reflecting the increasing scale and breadth of new investment commitments and the investment portfolio under management. The CEFC strongly supports the internationally recognised waste hierarchy and actively promotes this with clients, co-investors and staff. Opportunities to improve waste outcomes are taken where available.
Water	The Sydney office has a black water system in operation. Our office leases also have the following NABERS Water ratings: Melbourne 3 Stars Perth 4.5 Stars Sydney 4 Stars	The CEFC is a growing organisation, reflecting the increasing scale and breadth of new investment commitments and the investment portfolio under management. Opportunities to improve water outcomes are taken where available.

Environmental performance

The CEFC was established to increase the flow of finance into renewable energy, energy efficiency and low emissions technologies. Our work with co-investors, project developers, governments, industry groups and others is focused on delivering a positive environmental impact. The CEFC is also committed to minimising our own impact on the environment. We have embedded sustainability as part of our decision-making considerations regarding CEFC operations and procurement. Reflecting our unique role in the market, we also work to raise awareness about sustainable business practices in our external engagement activities.

Environmental performance indicators

The CEFC is a growing organisation, reflecting the increasing scale and breadth of new investment commitments and the investment portfolio under management. At 30 June 2019, the CEFC had 101 employees, including 99.59 full-time equivalents and the CEO, who is a full-time statutory officer under the CEFC Act. The CEFC continues to work to identify further ways to reduce its environmental impact per employee.

National Carbon Offset Accreditation

The CEFC operates with a commitment to minimise our impact on the environment. We seek to demonstrate a strong commitment to reducing the emissions associated with our own business activities, as well as the investments we make. In 2017–18, and for the second year, we engaged Pangolin Associates to undertake our carbon footprint assessment in accordance with the Australian Government National Carbon Offset Standard (NCOS).

The NCOS for Organisations provides best-practice guidance on how to measure, reduce, offset, report and audit emissions that occur as a result of the operations of an organisation. NCOS certification is undertaken annually and is based on carbon emissions borne from an organisation’s operational activities such as work travel, electricity, staff commute, catering, cleaning, stationary, etc. Certification allows an Organisation to use the NCOS brand to publicly promote their carbon neutrality.

To offset its remaining emissions, the CEFC directly purchased carbon credit units from Landfill Gas Industries (LGI), a business that CEFC had previously provided finance to for clean energy projects. We purchased 2,000 Australian Carbon Credit Units (ACCUs) to offset against our carbon footprint for two consecutive years. The NCOS program requires the CEFC to publish a Public Disclosure Summary of its footprint, the efforts being undertaken to reduce its footprint and the amount and source of carbon offsets required to achieve neutrality.

Figure 36: Environmental performance indicators

Theme	ESD indicators
Energy efficiency	Total consumption of energy: includes energy consumed in CEFC office tenancies in the performance of CEFC operations.	Tenancy electricity consumed for CEFC operations (excluding travel in electric vehicles, trains, base building energy consumption and electricity consumed by staff working offsite): Tenancy: 155,525kWh (a seven per cent increase on 2017–18, largely attributable to organisational growth in employees and the establishment of a Perth office) Total gas purchased/consumed for CEFC operations (excluding gas-powered travel and gas consumed by employees working offsite): NIL Total cost for tenancy energy purchased per employee: $426.22 (a 1.6 per cent increase from 2017–18)
	Total consumption of green energy: includes the purchase of energy from sustainable sources.	Green Power consumed/purchased: $67,447kWh (a 24.7 per cent increase on 2017–18 owing to updates to green power procurement contracts) The balance of emissions produced by electricity is offset via carbon offsets.
	Total consumption of energy: includes transportation cost and distance travelled for vehicle and air transport respectively for the function of the agency to perform its duty.	Vehicle expenditure (including taxis, car rentals and train fares for staff when working offsite; the CEFC does not provide corporate vehicles): 214,411 (a 27 per cent increase from 2017–18) Distance travelled by air for CEFC work-related purposes: 2,529,960 kilometres (a 40 per cent increase from 2017–18 largely attributable to an increase in employee and business activity and establishment of a Perth office)
Water	Total consumption of water: includes all water consumed when undertaking the functions of the agency.	Water purchased/consumed ($/litre): Unknown
Waste	Total waste production: includes all waste (i.e. unwanted by-products) produced when undertaking the functions of the agency.	Waste produced (tonnes): Unknown
Greenhouse gas emissions	Total carbon emissions of agency under operational control and quantity offset.	Greenhouse gases produced (all emissions produced by the CEFC are to be offset via carbon offsets): NIL

^*As a tenant in each of our office facilities, the CEFC does not have a means to capture data to this level of specificity.

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