Transfield Services submits Carbon Disclosure Project response
Transfield Services has today released its third consecutive response to the annual questionnaire issued by the Carbon Disclosure Project to large companies globally.
The Company has long been a supporter of voluntary public reporting in the area of Sustainability. Later this year we will be publishing our seventh consecutive annual Sustainability Report.
Clarification of exposure to Australian carbon pricing mechanism
In Australia, Transfield Services is required to report energy production and consumption and greenhouse gas emissions to the Federal Government under the National Greenhouse & Energy Reporting (NGER) Act 2007.
In some previous cases, the data collated in our NGER responses has been misinterpreted by the market when used to calculate Transfield Services’ financial exposure to the proposed Carbon Pricing Mechanism.
Under the NGER Act it is the entity which operates an asset that has responsibility for reporting, rather than the entity which owns the asset.
We operate a number of energy intensive infrastructure assets and emissions-intensive power generation assets on behalf of our clients under long term contracts.
Of our reported Greenhouse Gas footprint, over 98% of Scope 1 and over 96% of Scope 2 emissions are attributable to these assets.
But in all of these cases, any direct costs associated with carbon pricing can be passed on to the asset owners under existing contractual terms and conditions.
Greenhouse gas emissions we report on behalf of clients
For the 2009-10 NGER reporting year, Transfield Services reported a Scope 1 emissions footprint of 1,167,022 tCO2e and a Scope 2 emissions footprint of 108,688 tCO2e.
Of the Scope 1 footprint, 1,147,857 tCO2e (98%) is attributable to power generation and transport infrastructure assets which Transfield Services operates but does not own.
Of the Scope 2 footprint 104,064 tCO2e (96%) is attributable to power generation and infrastructure assets which Transfield Services operates but does not own.
Our own Greenhouse gas emissions
The residual Scope 1 footprint is 19,168 tCO2e. The majority of the residual Scope 1 footprint is from vehicle fuel.
The residual Scope 2 footprint is 4,624 tCO2e. The majority of the residual Scope 2 footprint is from electricity use at offices and depots. These emissions compare favourably to our sector peers.
Transfield Worley Power Services Ltd (which is a 50:50 incorporated joint venture between Transfield Services and Worley Parsons) reported a Scope 1 emissions footprint of 2,052,048 tCO2e and a Scope 2 emissions footprint of 0 tCO2e.
These figures result from the JV having Operational Control of a power generation asset that is owned by a client.
TSI Fund Equity
Transfield Services also has an equity stake in the Transfield Services Infrastructure Fund, which under the terms of the recently announced sale to Ratchaburi Generating Holding PCL will reduce to 20 percent by 30 June 2012, the date when the proposed Carbon Pricing Mechanism is scheduled to come into effect.
The TSI Fund owns a portfolio of power generation assets, including coal fired power stations, gas fired power stations and wind farms. Overall, this portfolio is well balanced (overall Scope 1 emissions intensity is approximately 0.8 tCO2e per MWh).
We do not expect any material adverse effect on the value or contribution from this asset.
In summary, Transfield Services believes its financial exposure to the proposed carbon pricing mechanism will not have a material effect on its business.
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Transfield Services employs over 19,000 people across 18 industries and 10 countries.
We are a global provider of operations, maintenance and construction services to the Resources, Energy, Industrial, Infrastructure, Property and Defence sectors.
We deliver asset management services across all phases of the asset lifecycle, from concept and creation, to services that sustain, optimise and enhance our Client’s assets. With diverse global experience and expertise, we share our knowledge and challenge thinking to develop and implement innovative solutions that deliver real value for our Clients. Our unique approach enables us to deliver continuous improvements in asset performance and sustain long term relationships with our Clients and partners.