National Australia Bank Limited GROUP ENVIRONMENTAL REPORTING AND OFFSET MANAGEMENT POLICY

Transcription

1 Natinal Australia Bank Limited GROUP ENVIRONMENTAL REPORTING AND OFFSET MANAGEMENT POLICY Administratin Infrmatin Schedule Last review date June 2016 Next review date June 2018 Dcument Owner General Manager, Grup Credit Risk Issuing Divisin / Perfrmance Unit Enterprise Risk Highest apprval authrity Grup Regulatry, Cmpliance and Operatinal Risk Cmmittee

2 1. Backgrund and Cntext 1.1 The purpse f this Plicy is t specify the Natinal Australia Bank (NAB) Grup (Grup) requirements fr managing its envirnmental perfrmance data and infrmatin. This includes maintenance f the Grup s: Carbn inventry and ther envirnmental peratinal perfrmance data and infrmatin. Carbn ffset prtfli. Carbn neutral status. Carbn risk infrmatin. 1.2 The scpe f this Plicy includes envirnmental perfrmance data and infrmatin related t NAB Grup s peratinal perfrmance, prducts and services. 1.3 All Perfrmance Units, Business Units, Divisins, Entities and Regins must cmply with all relevant requirements described in this Plicy and related dcuments. 1.4 The purpse f this Plicy, the fllwing definitins apply: 'Envirnmental perfrmance' is the measurement and mnitring f hw well an rganisatin manages the envirnmental aspects f its activities, prducts and services, and the impact they have n the envirnment. This als includes reprting n its implementatin f vluntary envirnmental cmmitments and envirnmental financing gals. Envirnmental peratinal perfrmance includes cnsideratin f energy cnsumptin and prductin, greenhuse gas emissins arising frm direct and indirect peratins (Scpe 1, 2 and 3), paper usage, waste and recycling, transprt and travel, water cnsumptin and trade effluent discharge, reductin targets, ffset activities and natural value. See Standard Operating Prcedure fr details f each Scpe. A 'carbn inventry' is a defined list f greenhuse gas emissin surces that an rganisatin uses t calculate its carbn ftprint. A 'carbn ffset' is a credit that is purchased t negate an amunt f carbn (ne tnne) included in an rganisatin's carbn ftprint. 'Carbn neutral' refers t a situatin where the net emissins assciated with an rganisatin s activities, prducts r services are zer. Grup Divisins and entities respnsible fr gegraphical envirnmental peratinal perfrmance include: Shared Services (Australia) in Australia; BNZ and JB Were in New Zealand; NY Branch in the USA; Lndn Branch in the United Kingdm; and Shared Services (nabasia) crdinating with ther nabasia branches and representative ffices. 2. Plicy Principles All Divisins and entities f the Grup will: 2.1 Where required, mnitr and reprt n cmpliance with all relevant envirnmental laws, regulatins and vluntary cmmitments. 2.2 Set, mnitr and review envirnmental bjectives and targets fr peratins, and where apprpriate, fr envirnmental financing acrss the Grup n a peridic basis.

3 2.3 Measure and reprt n its envirnmental perfrmance in keeping with relevant natinal and internatinal standards and, where applicable, have its carbn risk disclsure, envirnmental perfrmance and reprting independently assured. 2.4 Offset their emissins t maintain the Grup s carbn neutral status. 3. Rles and Respnsibilities 3.1 The Bard is ultimately respnsible fr the Grup s public reprting n envirnmental management, envirnmental perfrmance, carbn risk and ffset management. 3.2 In accrdance with its Charter, the Grup Regulatry Cmpliance & Operatinal Risk Cmmittee (GRCORC) will prvide versight ver the Grup s envirnmental perfrmance, cmmitments, targets and ffsets, vluntary and regulatry envirnmental reprting. 4. Plicy Requirements 4.1 Envirnmental Reprting and Offset Management Assessment Criteria fr inclusin f greenhuse gas (GHG) emissins within the Grup s carbn inventry Grup Divisins and entities must apply the guiding principles set ut in the Envirnmental Reprting and Offset Management Standard Operating Prcedure: Hw t Identify Criteria fr Carbn Inventry Inclusin t determine which emissin surces shuld be included in each reginal inventry, which aggregate int the Grup s carbn inventry Sustainability, Gvernance and Risk (SG&R) must cnsult annually with the Grup Divisins and entities respnsible fr reprting n gegraphical envirnmental peratinal perfrmance t agree any changes (exclusins r additins) t the applicable inventry. Carbn ffset criteria Shared Services (Australia) must, n behalf f the Grup Divisins and entities, purchase carbn ffsets (ffsets) that are real, quantifiable, additinal and permanent. Once purchased, the ffsets must be retired n a reputable registry Shared Services must purchase ffsets generated in accrdance with ne f the fllwing standards, subject t lcal jurisdictin and 'additinality' requirements: emissins permits issued frm a frmally regulated market (e.g. Eurpean Unin Allwances, Certified Emissin Reductins, New Zealand Units, and any similar carbn units made available as part f a regulated market in Australia) Australian Carbn Credit Units (ACCUs) issued by the Clean Energy Regulatr in accrdance with the framewrk established by the Carbn Credits (Carbn Farming Initiative) Act Certified Emissins Reductins (CERs) issued as per the rules f the Kyt Prtcl frm Clean Develpment Mechanism prjects, with the exceptin f: lng term (lcers) and temprary (tcers); and CERs frm nuclear prjects, the destructin f triflurmethane, the destructin f nitrus xide frm adipic acid plants r frm large-scale hydr-electric prjects nt cnsistent with criteria adpted by the EU (based n the Wrld Cmmissin n Dams guidelines) Remval Units (RMUs) issued by a Kyt Prtcl cuntry n the basis f land use, land-use change and frestry activities under article 3.3 r 3.4 f the Kyt Prtcl Vluntary Emissins Reductins (VERs) issued by the Gld Standard VERs backed-up by Gld Standard-apprved Eligible Cancellatin Units, where the applicable Eligible Cancellatin Unit wuld als have been eligible under the Natinal Carbn Offset Standard. Verified Carbn Units (VCUs) issued by the Verified Carbn Standard 3

4 Renewable Energy Certificates, white certificates, r equivalent, surced frm a gvernment regulated scheme emissins rights frm the Organisatin fr Ecnmic Cperatin and Develpment and gvernment-administered vluntary schemes. 4.2 Envirnmental Reprting and Offset Management Implementatin Envirnmental Perfrmance Grup Divisins and entities respnsible fr reginal envirnmental peratinal perfrmance must: cllate and prepare peratinal envirnmental perfrmance surce data t calculate the gegraphical carbn inventries, tgether with ther envirnmental peratinal perfrmance data, in a manner that is cnsistent with natinal and internatinal standards and methdlgies and the enterprise Envirnmental Agenda and Management Framewrk uplad envirnmental peratinal perfrmance data int the Grup s envirnmental data management system n at least a half-yearly basis reprt n key peratinal envirnmental prgrams and practices t Shared Services (Australia) at least six-mnthly, as required fr internal and external envirnmental peratinal perfrmance mnitring and reprting prvide envirnmental data and risk infrmatin t SG&R fr Envirnmental, Scial and Gvernance (ESG) versight and ther ESG related reprting (internal, and where apprpriate, external) As a minimum, peratinal envirnmental perfrmance data must include, in additin t items in the carbn inventry, cllatin f the fllwing envirnmental perfrmance indicatrs: water cnsumptin, harvesting and recycling data (kl) a register f trade effluent discharge licences, permits and/r agreements and their key details recycling f materials/waste & equipment (in kg) energy prductin (e.g. c-generatin, slar etc.) netwrk and nn-netwrk prperty (in square metres and number f sites) and number f autmatic teller machines full-time equivalent emplyee numbers (centrally surced frm Grup Finance) energy csts (fr fuels used in buildings, electricity and vehicle fuels) estimated energy and cst savings frm energy efficiency prgrams value f envirnmental investment (in AUD r lcal currency) a recrd f nn-cmpliance incidents and spills engagement with envirnmental plicy makers and regulatrs When Grup Divisins and entities becme aware f nn-cmpliance, spills, fines and penalties, SG&R shuld be ntified as sn as practicable and instances shuld be recrded in the envirnmental data management system. They shuld als be reprted n a half-yearly basis as part f Requisitins n Management Shared Services (Australia) must c-rdinate Grup Supplier Sustainability Prgram (GSSP) envirnmental (and ther sustainability) perfrmance reprting. Envirnmental perfrmance targets Grup and reginal envirnmental reductin targets must be set fr at least a three year perid t allw fr budget allcatin delivery f initiatives, such as capital wrks, which may be 4

5 required t meet the targets. Any science-based GHG emissins reductin targets shuld be set in line with the methdlgies endrsed by the Science-Based Targets Initiative NAB Divisins and entities respnsible fr reginal envirnmental peratinal perfrmance must cntribute emissin reductins t enable the setting f a Grup-wide reductin target NAB Divisins and entities respnsible fr reginal envirnmental peratinal perfrmance must cntribute resurce efficiency reductins, where applicable, t enable the setting f Grup resurce efficiency targets Shared Services (Australia) must crdinate the develpment and aggregatin f the Grup s GHG reductin and resurce efficiency targets based n the cntributin f individual reginal targets. These targets must be established against an agreed baseline year If required, targets restatements shuld meet the requirements f the Envirnmental Perfrmance Reprting Restatement SOP. Beynd the bundary f ur rganisatinal inventry Where the Grup des nt have peratinal cntrl ver GHG emissins, such as thse generated by the actins f emplyees, custmers and suppliers, NAB Divisins and entities respnsible fr reginal envirnmental peratinal perfrmance must develp apprpriate prgrams t influence behaviur and reduce peratinal envirnmental impacts Grup s Scpe 3 GHG emissins will include thse Scpe 3 GHG emissins that are relevant t the Grup s business, determined using the requirements f the Wrld Resurces Institute Service Sectr Guide and presented in Envirnmental Reprting and Offset Management Standard Operating Prcedure: Hw t Identify Criteria fr Carbn Inventry Inclusin As sme f the Scpe 1 and Scpe 3 GHG emissins t be included in the Grup s carbn inventry are nly a small percentage f the Grup s ttal carbn inventry, a materiality test must be applied. Where the quantity f a particular surce f GHG emissin t be included is small, the requirement fr accuracy may be less, in which case, estimatin techniques may be applied by each regin t determine an estimatin f the GHG emissins in accrdance with Standard Operating Prcedures and Guidance Ntes. Frward purchase mdel Shared Services (Australia) must use a frward purchase mdel (including purchase, retirement, recrding in registers and reprting) fr managing carbn ffsets t maintain the Grup s carbn neutral status. A frward purchase mdel calculates frecast greenhuse gas emissins fr the frthcming year using the actual GHG emissins reprted in the prir year's audited carbn inventry Shared Services (Australia) must purchase and retire ffsets prir t the start f the reprting perid t cver frecast GHG emissins fr the perid based n the prir year s audited carbn inventry. Carbn ffsets must meet defined carbn ffset criteria utlined in this Plicy Shared Services (Australia) must keep recrds f ffset purchases and retirement in accrdance with the requirements f the Envirnmental Reprting and Offset Management Standard Operating Prcedure: Hw t Recrd Offsets Purchases. Carbn ffset prtfli management Shared Services (Australia) must maintain a prtfli f ffsets n behalf f all Grup Divisins and entities Shared Services (Australia) must manage the prtfli t satisfy the fllwing cnditins: n ne prject t cmprise mre than 30% f the retired ffsets in any ne year n ne prject type t cmprise mre than 50% f the retired ffsets in any ne year Shared Services (Australia) must ensure that ffsets equivalent t each regin's GHG emissins are cmpliant with any lcal regulatry r certificatin requirements. 5

6 Offsets register Shared Services (Australia) must recrd infrmatin abut ffset purchases in a central ffsets register t ensure that the Grup can manage its ffsets apprpriately and meet the requirements fr external reprting fr certificatin prgrams and annual reprting t stakehlders. Fr detailed requirements, see Envirnmental Reprting and Offset Management Standard Operating Prcedure: Hw t Recrd Offset Purchases Shared Services (Australia) must retain dcumentary evidence f the review, due diligence, purchase and retirement prcesses fr each ffset purchase fr audit purpses. Lending Prducts and Services Where Divisins and entities within the Grup develp, market r sell prducts and services which claim t be carbn neutral, they must take a life cycle apprach t calculating the GHG emissins assciated with the relevant prduct r service and retain supprting dcumentatin t supprt the life cycle analysis Grup Credit will develp SOPs, where applicable, t dcument methdlgies fr carbn risk and envirnmental financing disclsures. Oversight NAB Divisins and entities respnsible fr envirnmental perfrmance must participate in risk versight and external assurance prcesses related t envirnmental perfrmance reprting SG&R must: prvide versight f the Grup s public reprting n envirnmental perfrmance and risk management, bth vluntary and regulatry, including thse related t carbn inventry, and carbn ffset management undertake secnd line versight f reginal envirnmental infrmatin, envirnmental peratinal perfrmance data and calculatins, targets and emissins factrs btain independent assurance ver regulatry reprting and, where apprpriate, vluntary reprting (which may include carbn neutral status, envirnmental targets, vluntary cmmitments, carbn risk and envirnmental financing disclsures) Grup Credit must prvide versight f NAB s public reprting carbn risk and envirnmental financing disclsures. 4.3 Envirnmental Operatinal Reprting and Offset Management Mnitring and Reprting Methdlgy SG&R, in cnsultatin with NAB Divisins and entities respnsible fr reginal envirnmental peratinal perfrmance, must develp and dcument methdlgies required fr the Grup s envirnmental peratinal perfrmance including activity data capture, reprting and quality cntrl Detailed envirnmental perfrmance data methdlgies and requirements will be dcumented NAB Divisins and entities respnsible fr reginal envirnmental peratinal perfrmance must develp and dcument reginal SOPs fr envirnmental peratinal perfrmance activity data capture, calculatin, reprting and quality cntrl SG&R must review the Grup s GHG emissins calculatins methdlgies, in cnsultatin with NAB Divisins and entities respnsible fr reginal envirnmental peratinal perfrmance, n at least biannually, r sner if required t reflect changes in regulatry requirements and cmmn practice Shared Services (Australia) must annually uplad any relevant updated emissins factrs used in calculatin f the Grup s carbn inventry int the Grup s envirnmental data management system. 6

7 Frward purchase mdel Shared Services (Australia) and SG&R must annually review and recncile the Grup s actual carbn inventry with previusly frecast GHG emissins If a shrtfall in ffsets is identified, Shared Services (Australia) must retire extra ffsets fr the perid t reduce the carbn inventry t a neutral psitin. If an excess f emissins has been retired, Shared Services (Australia) must allcate the excess quantity f emissins t a future perid. External Assurance SG&R must have an apprpriately qualified independent auditr undertake assurance ver reprting assciated with envirnmental regulatry bligatins and the Grup s carbn neutral status n an annual basis NAB Divisins and entities respnsible fr aspects f the Grup s envirnmental perfrmance must participate in and supprt the annual independent assurance prcess related t: Reprting envirnmental regulatry reprting required in their gegraphy their cmpnent f the Grup s carbn inventry ther relevant publicly reprted envirnmental perfrmance including carbn risk disclsure and reprting n vluntary envirnmental cmmitments NAB Divisins and entities must prepare reprting n envirnmental perfrmance, issues, risks and pprtunities and prgress n implementing the Grup s Envirnmental Agenda and Management Framewrk fr relevant internal and external stakehlders as required Shared Services (Australia) must maintain, and prvide n request, details relating t ffsets prtfli management and ffsets held in the ffsets register Shared Services (Australia) must n a six mnthly basis, fr half year and full year: aggregate and prepare internal and external reprting n the Grup s carbn inventry, ffset prtfli and envirnmental peratinal perfrmance data and practices in a manner that is cnsistent with relevant Grup Standard Operating Prcedures and Guidance Ntes, which must be cnsistent with applicable natinal and internatinal envirnmental standards and methdlgies. This must include bth aggregate Grup perfrmance and reginal perfrmance summaries, where applicable, with cmmentary that explains key elements f perfrmance, key assumptins and restatements. prepare and prvide reprts and infrmatin n the Grup s envirnmental peratinal perfrmance and the Grup supplier sustainability prgram fr risk reprting, review and versight t SG&R as required SG&R must n at least a six-mnthly basis, crdinate reprting f envirnmental infrmatin, issues and pprtunities, risk management and the Envirnmental Agenda and Management Framewrk t relevant internal and external stakehlders SG&R must publish a summary f the Grup s Envirnmental Agenda and Management Framewrk and apprach t envirnmental perfrmance and reprting, including carbn inventry and carbn ffset prtfli management in the public dmain accrdance with this Plicy Grup Credit and relevant Divisins and entities will n a six mnthly basis, fr full and half year reprting, prepare relevant carbn risk and envirnmental financing disclsures. 5. Plicy Variatins and Exemptins 5.1 All Grup Divisins and entities must fully cmply with the Plicy. Hwever, if there is cnflict r incnsistency between this Plicy and the laws and regulatins f a Divisin r entity s particular cuntry (r cuntries), thse laws and regulatins take precedence t the extent f the cnflict r 7

8 incnsistency, unless this Plicy places a higher requirement, r cmpliance with this Plicy wuld result in a breach f the lcal legislatin. 5.2 In the event f such cnflict r incnsistency, the Divisin r entity must ntify Grup Credit, wh will infrm the Enterprise Risk Leadership team member accuntable fr Plicy and Framewrks. 5.3 All exemptin requests must be submitted t the relevant Plicy Owner fr cnsideratin. Decisins will be based n the Grup s dcumented exemptins prcess. 6. Plicy Breaches 6.1 The Cnduct Gateway defines and measures the minimum level f cmpliance expected f NAB Grup emplyees. It is determined by bligatins set by laws, regulatrs, industry standards and internal Plicies, Standards and cdes. 6.2 Failure t cmply with Grup Plicy may result in disciplinary actin, dismissal and prsecutin, r ther external legal r regulatry actin. 7. Related Dcuments Envirnmental Reprting and Offset Management Standard Operating Prcedures Envirnmental Management Plicy Envirnmental Agenda Grup Supplier Sustainability Principles 8