Sustainable Development Drivers in Business Decision Making

1
(No Transcript)
2
Sustainable Development Drivers in Business
Decision Making

• CRC for Coal in Sustainable Development
• Annual Conference
• Darling Harbour, 14th October 2002

Presented by Jim Henness
3
NEM Generation Capacity
Delta 13 NEM (by energy)
MW
5,000
Eraring Energy
4,000
Enertrade
South Australia
3,000
Loy Yang A
CS Energy
Hazelwood
Stanwell
Tarong
Yallourn
2,000
Loy Yang B
Southern Hydro
Newport
Callide C
Millmerran
1,000
0
4
Deltas Portfolio
Total Capacity 4,240 MW
New South Wales
central coast
western
Sydney
5
Sustainable Development

• UN Conference on Human Environment, Stockholm in
  1972
• 1986 World Commission on Environment
  Development
• 1992 - UN Conference on Environment and
  Development (Rio Earth Summit)
• 2002 World Summit - Johannesburg

6
Triple Bottom Line

• Shell - People Planet and Profits
• Australian Energy Sector Reporting Non-Financial
  Aspects
• Many electricity companies produce an Environment
  Report

7
Sustainable Development Drivers

• Embodied in Triple Bottom Line Reporting
• Clear view of the financial, human and ecological
  impacts of a business
• Information used to make choices in the market
  place
• Choice of Investment
• Choice of Supplier
• Choice of Neighbour
• Choice of Employer
• Choice of Business Partner

8
Does It make a difference?
Dow Jones Sustainability Index
9
What Drivers are Reported

• Economic
• Profits and growth
• Returns to Shareholders
• (also governance business practice ethics)
• Social
• Stakeholder Engagement
• Community Involvement
• Occupational Community Health and Safety
• Employee Satisfaction
• Environmental
• Environmental Impact and Results
• Progress against specific targets

Global Reporting Initiative
10
Mt Piper Power Station
11
Portland
Coal Mines
35,500ML
33,500 ML
12
Environmental Regulation

• Load Based Licensing
• polluter pays regulation
• Cost to Delta of 3.5 m per year when fully
  implemented
• proposed mass emission caps
• National Pollution Inventory (NPI)
• reporting requirement
• data published on the web
• Continuous Improvement
• independent authoritative science

13
Greenhouse
Carbon Dioxide Atmospheric Concentrations from
Ice Cores
14
Greenhouse

• Climate science is well established
• Regardless of science, climate change is a
  political reality
• Kyoto a first small step in a long journey.

15
Deltas Greenhouse Response

• Greenhouse Regulation
• Generator Efficiency Standards
• Renewable Energy Act
• NSW Retail Licence Benchmarks

16
Deltas Renewable Developments
17
Future Outlook

• Renewables will increase but be a small part of
  the energy mix
• Fossil fuel will be a significant part of the
  fuel mix
• initially natural gas combined cycle deployed in
  small increments
• gas reserves are limited
• there will still be a reliance on coal
• Technology Choice influenced by market and
  regulation

18
CRC Research Strategic Influences

• Greenhouse Gas Reduction
• Aging plant
• New generation investment and technology mix
• Environmental regulation
• Fuel sourcing

19
Sustainable development drivers are influencing
business decisions, both now, and increasingly as
we move through the transition to a more
sustainable future.
20
(No Transcript)