CDP. Module: Introduction. Page: Introduction. Climate Change 2015 Information Request CC0.1

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1 CDP Climate Change 2015 Information Request AMP Module: Introduction Page: Introduction CC0.1 Introduction Please give a general description and introduction to your organization. AMP is Australia and New Zealand's leading independent wealth management company, with an expanding international investment management business and a growing retail banking business in Australia. It provides financial advice, products and services and investment opportunities to help people and organisations build financial security. The company serves customers in Australia and New Zealand as well as Asia, Europe, the Middle East and North America. It has more than 5400 employees, around 820,000 shareholders and $215 billion of assets under management. AMP provides customers in Australia and New Zealand with financial advice, superannuation, retirement income and other investment products, superannuation services for businesses, income protection, disability and life insurance and selected banking products. These products and services are primarily distributed through a network of 4,400 aligned advisers and planners in Australia and New Zealand, as well as through extensive relationships with independent financial advisers. Through AMP Capital, AMP also manages assets across major asset classes including shares, fixed interest, infrastructure, property, diversified funds, multi-manager and multi-asset funds. AMP Bank has approximately 100,000 customers, a mortgage book of $14.5 billion and a deposit book of $9.2 billion. AMP s corporate responsibility framework is based around three central pillars including: building savings for the future for AMP s customers encouraging responsible investment, and minimising environmental impacts. AMP s environment policy guides improvements in direct environmental impacts by reducing the organisation s use of energy, water, paper and other materials. It also outlines environmental considerations in AMP s purchasing decisions and product design. The environment policy is accessible on AMP s website: amp.com.au With respect to climate change AMP recognises as a large organisation, the need to reduce its carbon and environmental footprint. The AMP Environmental Leadership (ELT) team oversees AMP s activities in this area and reports through to the AMP Group Leadership Team (GLT) on group-wide environmental initiatives, strategies, target setting and monitoring of performance. In 2014 AMP was proud to maintain its position as a carbon neutral business having first

2 achieved this goal in 2013, one year ahead of planned. AMP also fulfils its reporting obligations under the National Greenhouse and Energy Reporting Act 2007 (NGER Act). AMP reports under the NGER Act due to operational control over the assets within investment portfolios. However the greenhouse gas impact of these assets does not directly impact AMP s financial accounts, as the assets are owned by the underlying investor. Compliance with these reporting requirements is monitored by the AMP Environmental Legislative Compliance (ELC) Committee and then signed off by the AMP CEO. AMP Capital is a diversified investment manager, managing approximately $151.5 billion in assets for investors. Through a team of 224 investment professionals and a global network of investment partners, AMP Capital invests in equities, fixed interest, infrastructure, property, diversified funds and multi-manager funds. AMP Capital also provides commercial, industrial and retail property management services. Mitsubishi UFJ Trust and Banking Corporation hold a 15% ownership interest in AMP Capital. AMP Capital hold a 15% stake in the China Life Asset Management Company Limited, a funds management company which offers retail and institutional investors in China access to leading investment solutions. AMP Capital uses its position as an investment manager to improve corporate governance, environmental and social standards across the business sector through responsible investment practices and engaging in policy forums and public dialogues on various topics including climate change. AMP Capital also actively engages the management of companies and assets on how they are managing climate change risks to their business. In 2014 AMP Capital remained a signatory to the Carbon Disclosure Project (CDP), was an active participant in the Investor Group on Climate Change (IGCC) and signatory to the United Nations backed Principles of Responsible Investment (PRI). CC0.2 Reporting Year Please state the start and end date of the year for which you are reporting data. The current reporting year is the latest/most recent 12-month period for which data is reported. Enter the dates of this year first. We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the current reporting year if you have not provided this information before, or if this is the first time you have answered a CDP information request. (This does not apply if you have been offered and selected the option of answering the shorter questionnaire). If you are going to provide additional years of data, please give the dates of those reporting periods here. Work backwards from the most recent reporting year. Please enter dates in following format: day(dd)/month(mm)/year(yyyy) (i.e. 31/01/2001). Enter Periods that will be disclosed Wed 01 Jan Wed 31 Dec 2014

3 Enter Periods that will be disclosed CC0.3 Country list configuration Please select the countries for which you will be supplying data. If you are responding to the Electric Utilities module, this selection will be carried forward to assist you in completing your response. Select country Australia New Zealand Rest of world CC0.4 Currency selection Please select the currency in which you would like to submit your response. All financial information contained in the response should be in this currency. AUD ($) CC0.6 Modules As part of the request for information on behalf of investors, electric utilities, companies with electric utility activities or assets, companies in the automobile or auto component manufacture sub-industries, companies in the oil and gas sub-industries, companies in the information technology and telecommunications sectors and companies in the food, beverage and tobacco industry group should complete supplementary questions in addition to the main questionnaire. If you are in these sector groupings (according to the Global Industry Classification Standard (GICS)), the corresponding sector modules will not appear below but will automatically appear in the navigation bar when you save this page. If you want to query your classification, please

4 If you have not been presented with a sector module that you consider would be appropriate for your company to answer, please select the module below. If you wish to view the questions first, please see Further Information Module: Management Page: CC1. Governance CC1.1 Where is the highest level of direct responsibility for climate change within your organization? Board or individual/sub-set of the Board or other committee appointed by the Board CC1.1a Please identify the position of the individual or name of the committee with this responsibility Overall responsibility for AMP's climate change related strategies sits with the Chief Executive Officer (CEO) of AMP. Along with the broader AMP corporate responsibility strategy, climate change strategy is developed and signed off by the AMP Group Leadership Team (GLT), which constitutes the CEO and his direct reports. In addition, AMP has a number of committees in place to facilitate management of climate change related issues across the business. As a member of the GLT the managing director, AMP Capital has individual executive level responsibility for group-wide environmental performance and chairs AMP's Environmental Leadership Team (ELT). The ELT is responsible for addressing AMP's operational environmental impacts across the offices in which AMP employees are located. The ELT also develops strategies and reviews progress against AMP's organisational environmental objectives and targets (e.g. GHG emissions). AMP also has various other committees with responsibilities concerning energy and greenhouse gas (GHG) emissions including the Environmental Legislative Compliance (ELC) Committee. The ELC monitors compliance with laws and policy developments concerning climate change and energy efficiency issues affecting AMP. This includes AMP's reporting obligations under the National Greenhouse and Energy Reporting (NGER) Act which is signed off each year by the CEO. Responsibility for considering the potential impact of climate change related issues on investment portfolios managed on behalf of AMP Capital clients is with the AMP Capital Investment Committee, which has overall responsibility for reviewing investment risks. Responsibility for the consideration of climate change related impacts on specific investments or assets rests with the individual investment teams, asset or portfolio managers. CC1.2

5 Do you provide incentives for the management of climate change issues, including the attainment of targets? Yes CC1.2a Please provide further details on the incentives provided for the management of climate change issues Who is entitled to benefit from these incentives? The type of incentives Incentivized performance indicator Comment Environment/Sustainability managers Monetary reward Emissions reduction project Emissions reduction target Energy reduction project Energy reduction target Efficiency project Efficiency target Behaviour change related indicator As Co-Chair of the AMP Environment Leadership Team (ELT) - meeting AMP emission reduction targets, attainment of environmental performance goals. Corporate executive team Recognition (nonmonetary) Emissions reduction project Emissions reduction target Energy reduction project Energy reduction target Efficiency project Efficiency target Behaviour change related indicator AMP Environment Leadership Team (ELT) - meeting AMP emission reduction targets, attainment of environmental performance goals.

6 Who is entitled to benefit from these incentives? The type of incentives Incentivized performance indicator Comment Other: ESG specialists / research analysts Monetary reward Other: Analysing climate change risks Analysing climate change investment risks; communicating investment risks associated with climate change impacts (e.g. potential impact on company earnings) to investment teams, clients and the industry. Engaging with policy makers and investee companies on climate change issues. Improvements in industry benchmarks (e.g. NABERS ratings of property assets). Further Information Page: CC2. Strategy CC2.1 Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities Integrated into multi-disciplinary company wide risk management processes CC2.1a Please provide further details on your risk management procedures with regard to climate change risks and opportunities Frequency of monitoring To whom are results reported? Geographical areas considered How far into the future are risks considered? Comment Six-monthly or more Global - Geographies and markets in which AMP > 6 years AMP has limited direct emissions or direct exposure to climate change. AMP however recognises its operations do impact the environment and has considered

7 Frequency of monitoring To whom are results reported? Geographical areas considered How far into the future are risks considered? Comment frequently Capital invests internationally. the corporate responsibility and employee behaviour alignment issues surrounding climate change. From an investment perspective AMP Capital acts as a manager of investments on behalf of investors and recognises its fiduciary duty to consider climate risks and opportunities. Analysis of climate risks and opportunities is undertaken by ESG specialists that review potential investment related issues across the asset classes in which AMP Capital invests - shares, fixed interest, infrastructure, property, diversified funds, multi-manager and multi-asset funds. AMP Capital s investment committee is responsible for oversight of climate change risks. The investment committee reports to the GLT via the managing director of AMP Capital. Periodic updates are provided to relevant board(s) (e.g. AMP Capital Holdings, AMP Limited, AMP Life). CC2.1b Please describe how your risk and opportunity identification processes are applied at both company and asset level (i) How risks are assessed at company level: AMP's ELT reviews risks and opportunities for reducing carbon emissions associated with AMP s environmental footprint. The ELC is responsible for monitoring compliance reporting under the NGER Act. Within AMP Capital, ESG specialists undertake analysis of climate change issues upon the companies, assets and portfolios in which AMP Capital invests (e.g. ASX 200). This includes consideration of the impact of carbon regulation, direct and indirect costs, geographic exposure to climate policy the capacity of business to pass through any carbon liabilities and governmental assistance. This allows AMP Capital to assess overall company and portfolio exposures to climate change including potential risks such as stranded assets (e.g. unburnable carbon). (ii) How risks are assessed at the asset level: AMP Capital acts as a manager of investments on behalf of other investors and has a fiduciary duty to consider climate change risks and opportunities. Internal ESG specialists review climate change risks and regulation both in Australia and overseas. This group considers climate change policy and the impact on AMP and the main asset classes managed by AMP Capital. In 2014 AMP Capital continued to analyse climate change risks and impacts upon earnings, valuations and portfolios in equities, fixed income, multi-manger funds, property and infrastructure. For AMP s own tenanted sites, the ELT reviewed environmental performance improvement opportunities and developed initiatives targeting electricity use, waste (recycling) and offsetting business air travel. Audits were conducted of various offices to assess opportunities e.g. for lighting upgrades and to obtain individual NABERS (National Australian Built Environment Rating System) ratings for major tenancies. Where opportunities are identified, business cases are prepared and brought to the ELT for approval and then implemented by AMP Workspace. CC2.1c

8 How do you prioritize the risks and opportunities identified? In assessing opportunities to reduce emissions across AMP's offices (tenanted sites) the ELT reviews business cases including emission reductions, cost of implementation and pay-back periods. Priority is given to initiatives delivering environmental performance improvements on a least cost basis. Within AMP Capital analysis of investment related climate change risks is undertaken on an ongoing basis by dedicated specialists (ESG analysts). This analysis occurs at an asset, company (stock specific) or portfolio level. Information is captured in industry sector analyst reports and used in company specific ESG scores to facilitate integration into the investment decision-making process across various investment teams. In 2014 the infrastructure and property teams continued to review ESG related risks and opportunities (including climate change mitigation and adaptation) for various assets. ESG performance audits and ongoing data monitoring is also undertaken for AMP Capital s property portfolios e.g. to assess energy efficiency improvements on an asset or portfolio basis. For AMP Capital s investment activities risks and opportunities related to climate change are manifested as a risk to returns of the listed and unlisted companies, property, infrastructure and fixed income instruments in which AMP Capital invests on behalf of its clients. Where a degree of certainty exists on the nature of climate change related opportunities, regulatory and other risks (e.g. pricing, physical impacts) asset classes potentially most affected have undertaken scenario analysis to assess the materiality of financial impacts (e.g. carbon price impact on earnings, value at risk or asset valuations). CC2.1d Please explain why you do not have a process in place for assessing and managing risks and opportunities from climate change, and whether you plan to introduce such a process in future Main reason for not having a process Do you plan to introduce a process? Comment CC2.2 Is climate change integrated into your business strategy? Yes CC2.2a Please describe the process of how climate change is integrated into your business strategy and any outcomes of this process

9 (i) How strategy has been influenced: AMP s Corporate Responsibility Framework includes minimising the environmental footprint by engaging AMP staff in initiatives targeting resource efficiency and reductions in environmental impact. AMP Capital s ESG specialists have undertaken analysis of investment risks and opportunities associated with climate change upon sectors, companies and assets. This is shared with investment teams to enhance decision-making as well as longer term asset management strategies. This applies to the major asset classes in which AMP Capital invests such as equities, fixed income, property and infrastructure (ii) Aspects of climate change that have influenced strategy: AMP s corporate responsibility, reputational and employee behaviour alignment issues on environmental impacts has informed the setting of internal goals and initiatives including reductions in carbon emissions, energy use, waste recycling and the offsetting of business air travel. In terms of investments near term climate change considerations (e.g. current carbon pricing impacts have been reviewed to determine potential impacts on risk / return characteristics of investments). Where such impacts are considered material AMP Capital may adjust its investment in a particular sector, company or asset or for example vary the weightings of the stock within a particular portfolio. Potential impacts (rising electricity prices, price on carbon) and longer term risks (e.g. physical, weather related impacts) have also been considered in relation to property and infrastructure investments. Greater policy certainty on climate change regulation has also contributed to a number of successful renewable energy transactions. (iii) Key components - Short term strategy: The ELT continues to work on short-term strategies for reducing AMP s environmental footprint, including capital works programs, technology upgrades, energy efficiency, waste management and a carbon offsetting program. A key priority during 2014 was to continue to enhance staff education and awareness across major tenancies, encouraging behaviours that contribute toward AMP s environmental goals. AMP s carbon offsetting activities (portfolio of projects) were also expanded to further reduce / offset AMP s carbon footprint. In terms of investments managed by AMP Capital, further analysis has been undertaken by specialists of the core climate policy elements and associated impacts upon industry sectors, companies and assets in which AMP Capital invests. Educational forums were also held with AMP Capital clients to discuss these investment impacts in a domestic and international context. Other significant elements of the short term strategy also include ongoing engagement in the policy debate relating to climate change and renewable energy in Australia. During 2014 meetings were again held with both major political parties, via AMP Capital s participation with the Investor Group on Climate Change (IGCC) including representation on the IGCC s CEO panel. (iv) Key components Long term strategy: As stewards of client assets, AMP Capital recognises it has an interest in sustainable performance of companies and assets and, a fiduciary duty to consider long-term climate change risks. This includes consideration of future regulatory and carbon pricing scenarios, operational costs, company earnings, cost pass through and government backed transitional assistance. As part of this longer term strategy AMP Capital regularly engages with the board / management of companies to understand how climate change risks are being managed. Within equities and fixed income, future impacts and liabilities have been considered for carbon intensive sectors (e.g. power generation, mining, aluminium) and a review also looked at climate change impacts in terms of Strategic Asset Allocation. Within infrastructure climate change risks are considered during origination, due diligence and ongoing asset management. Potential investment opportunities driven by climate change legislative proposals (e.g. clean tech, renewable energy infrastructure and other thematic investments) are also considered. Commercial building portfolios including targeted improvements in for example NABERS ratings are strategically important to enhance the marketability of the assets over the long term, maximising occupancy rates and helping shield tenants against increases in energy costs. (v) Strategic advantage over competitors: With dedicated ESG specialists with strong technical and policy backgrounds in climate change issues embedded across the organisation AMP Capital provides its investment teams with unique insights into the investment impacts of climate change risks and opportunities. Providing key investment relevant information and integrating this into the investment decision-making process delivers substantial value-add over simply sourcing or reviewing company CO2 emissions data (e.g. from research houses). This analysis provides AMP Capital s investment teams with a deeper understanding of hidden downside risks or contributors to enhance company and asset values that may be mis-priced by the market. (vi) Substantial business decisions made during the year: In relation to AMP s corporate footprint: 1. Further strengthening data management and reporting systems to facilitate the setting, review and monitoring of progress toward environmental targets. 2. Focusing on staff engagement programs through AMP s Green Tomorrow initiative to educate staff of the ways they can contribute toward AMP s goals. 3. Establishing a network of Green Champions to support initiatives at an individual office level (e.g. Parramatta office). 4. Expanding the portfolio of projects as well as enhancing due diligence and trade execution processes related to the purchase of verified carbon offsets (NCOS compliant) from the voluntary carbon market. 5. Implementing environmental initiatives such as energy efficiency upgrades and waste management programs across select tenancies to reduce energy, emissions and environmental impact. 6. Maintaining carbon neutrality for AMP operations (tenanted sites). In terms of managing climate change risks and opportunities in relation to AMP Capital investments:

10 1. Understanding the impact of carbon regulation and the stranded assets debate upon companies and sectors and sharing this with clients and investment teams. 2. Understanding climate change and renewable energy policy developments (international) to enhance decision-making regarding clean energy infrastructure investments (e.g. UK / EU North America). 3. Engaging policy-makers from major Australian political parties on the need for long term policy certainty on climate change and renewable energy. 4. Continued active involvement as a founding member of the Investor Group on Climate Change (IGCC) - including IGCC s CEO panel, Executive Committee and Policy Committee. CC2.2b Please explain why climate change is not integrated into your business strategy CC2.2c Does your company use an internal price of carbon? Yes CC2.2d Please provide details and examples of how your company uses an internal price of carbon From the perspective of maintaining AMP's carbon neutral position, the ELT is focused on reducing AMP's total greenhouse gas emissions footprint on a least cost basis ($/tco2e). When reviewing potential energy efficiency initiatives (ROI, pay-back periods etc) $/tco2e is considered alongside the cost to the business of purchasing voluntary carbon credits from the international voluntary carbon market to maintain AMPs carbon neutral position. From an investment management perspective, AMP Capital's ESG analysts will typically consider a range of carbon regulation and CO2 pricing scenarios when conducting research on potential climate change risks of companies in which AMP Capital may invest. This involves assessments of different CO2 prices and associated impacts on companies' business models and strategies. CC2.3

11 Do you engage in activities that could either directly or indirectly influence public policy on climate change through any of the following? (tick all that apply) Direct engagement with policy makers Trade associations CC2.3a On what issues have you been engaging directly with policy makers? Focus of legislation Corporate Position Details of engagement Proposed legislative solution Other: Policy certainty on climate change and renewable energy regulation Support AMP Capital undertook various engagements with policy makers from both major political parties in Australia on climate change and renewable energy policy. The main policy issues discussed include the need for investment grade climate change policy. This includes advocating that any proposed reforms should commence early to reduce the overall cost of economic transition; to ensure broad sector coverage to share the cost of economic transition and access to least cost abatement; respond to market forces if it is to be efficient as a market scheme; provide relative certainty on framework design and regulatory arrangements going forward; contribute to and link with global arrangements to address climate change; ensure transitional assistance measures achieve the outcome of lowering emissions. In 2014 and 2015 the Renewable Energy Target (RET) has been under review in Australia. Through the IGCC, AMP Capital has advocated for retention of the RET to create greater long term certainty for investors in renewable energy infrastructure. CC2.3b Are you on the Board of any trade associations or provide funding beyond membership? Yes CC2.3c Please enter the details of those trade associations that are likely to take a position on climate change legislation

12 Trade association Is your position on climate change consistent with theirs? Please explain the trade association's position How have you, or are you attempting to, influence the position? Investor Group on Climate Change (IGCC) Consistent AMP Capital undertook various engagements with policy makers from both major political parties in Australia on climate change and renewable energy issues. These meetings were arranged by the Investor Group on Climate Change (IGCC) and attended by AMP Capital s managing director and other ESG specialists. The IGCC is a collaboration of Australian and New Zealand investors focussing on the impact that climate change has on the financial value of investments. The IGCC recognise that the financial return of an investment is impacted by climate change. As such, the IGCC aims to encourage government policies and investment practices that address the risks and opportunities of climate change, for the ultimate benefit of superannuants and unit holders. The IGCC represents institutional investors, with total funds under management of approximately $1 trillion, and others in the investment community interested in the impact of climate change on investments. The IGCC aims to (i) raise awareness of the potential impacts, both positive and negative, resulting from climate change to the investment industry, corporate, government and community sectors; (ii) encourage best practice approaches to facilitate the inclusion of the impacts of climate change in investment analysis by the investment industry; and (iii) provide information to assist the investment industry to understand and incorporate climate change into investment decisions. AMP Capital is a founding member of the IGCC and is represented on the IGCC's Executive Committee and Policy Committee. AMP Capital's managing director is a member of the IGCC's CEOs panel. The main policy issues discussed include the need for investment grade climate change policy and certainty on renewable energy legislation. This includes advocating that any proposed reforms should commence early to reduce the overall cost of economic transition; to ensure broad sector coverage to share the cost of economic transition and access to least cost abatement; respond to market forces if it is to be efficient as a market scheme; provide relative certainty on framework design and regulatory arrangements going forward; contribute to and link with global arrangements to address climate change; ensure transitional assistance measures achieve the outcome of lowering emissions. Internationally AMP Capital again signed the Global Investor Statement on Climate Change presented to policy makers at the annual UNFCCC COP/MOP. CC2.3d Do you publicly disclose a list of all the research organizations that you fund?

13 CC2.3e Do you fund any research organizations to produce or disseminate public work on climate change? CC2.3f Please describe the work and how it aligns with your own strategy on climate change CC2.3g Please provide details of the other engagement activities that you undertake CC2.3h What processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climate change strategy? From an investment perspective AMP Capital acts as a manager of investments on behalf of other investors and recognises it has a fiduciary duty to consider climate change risks and opportunities including those linked to the development of climate change policy and regulation. AMP Capital s ESG specialists undertake regular analysis of the investment risks and opportunities associated with climate change policy upon various industry sectors, companies and assets. This research and analysis is shared with AMP Capital s investment teams to enhance the investment decision-making process and development of longer term asset management strategies. Updates on climate policy may be provided to clients, AMP s Government Affairs team and AMP Capital s Investment Committee which is responsible for oversight of climate change risks relating to AMP Capital s investment activities. The AMP Capital Investment Committee reports through to the AMP Group Leadership Team (GLT) via the managing director of AMP Capital. Periodic updates are also provided as required to relevant boards (e.g. AMP Capital Holdings, AMP Limited, AMP Life). CC2.3i Please explain why you do not engage with policy makers

14 CC2.4 Would your organization's board of directors support an international agreement between governments on climate change, which seeks to limit global temperature rise to under two degree Celsius from pre-industrial levels in line with IPCC scenarios such as RCP2.6? No opinion CC2.4a Please describe your board's position on what an effective agreement would mean for your organization and activities that you are undertaking to help deliver this agreement at the 2015 United Nations Climate Change Conference in Paris (COP 21) AMP Capital has a long standing position in advocating for policy certainty by governments with respect to climate change. As a founding member of the IGCC and a signatory to the PRI since 2007 AMP Capital regularly supports international efforts to agree an international long term framework on climate change. This is evidenced by its support for the Investor Statement on Climate Change and recent investor CEO letter to G7 Governments ahead of the Paris COP taking place in late 2015 (refer below). Further Information Further examples are provided in the attachments below Attachments Change 2015/Shared Documents/Attachments/ClimateChange2015/CC2.Strategy/ Insight-Assessingclimate-change-risk.pdf Change 2015/Shared Documents/Attachments/ClimateChange2015/CC2.Strategy/G7 InvestorCEO-letter.pdf Change 2015/Shared Documents/Attachments/ClimateChange2015/CC2.Strategy/GlobalInvestorStatement2014_Final.pdf Page: CC3. Targets and Initiatives CC3.1

15 Did you have an emissions reduction target that was active (ongoing or reached completion) in the reporting year? Absolute target CC3.1a Please provide details of your absolute target ID Scope % of emissions in scope % reduction from base year Base year Base year emissions (metric tonnes CO2e) Target year Comment Abs1 Scope % 15% AMP is reducing its use of resources and carbon footprint and has set new priorities including: reducing greenhouse gas emissions by a further 15% in the period pursuing energy efficiency through lighting upgrades, IT initiatives and more flexible and efficient use of office space working with contractors, landlords and service providers to increase waste recycling reducing non-essential air travel and paper consumption encouraging employee work practices that reduce environmental impacts encouraging suppliers to reduce the impacts of their products and services maintaining carbon neutrality continuing with external assurance of AMP s carbon footprint. CC3.1b Please provide details of your intensity target ID Scope % of emissions in scope % reduction from base year Metric Base year Normalized base year emissions Target year Comment

16 CC3.1c Please also indicate what change in absolute emissions this intensity target reflects ID Direction of change anticipated in absolute Scope 1+2 emissions at target completion? % change anticipated in absolute Scope 1+2 emissions Direction of change anticipated in absolute Scope 3 emissions at target completion? % change anticipated in absolute Scope 3 emissions Comment CC3.1d For all of your targets, please provide details on the progress made in the reporting year ID % complete (time) % complete (emissions) Comment Abs1 33% 100% In 2014 AMP s total greenhouse gas emissions were 27,642 tonnes a 15% YoY reduction on Other highlights included: Scope 1 and 2 emissions (mainly office and data centre electricity use) decreased by 12% to 18,360 tonnes, due to energy efficiency initiatives such as lighting upgrades, as well as more flexible and efficient use of office space Scope 3 emissions (air travel) decreased by 20% to 9,282 tonnes. While AMP has reduced its non-essential business air travel, the decrease is also due to changes in the international emissions factors used to calculate these emissions. CC3.1e Please explain (i) why you do not have a target; and (ii) forecast how your emissions will change over the next five years CC3.2

17 Does the use of your goods and/or services directly enable GHG emissions to be avoided by a third party? Yes CC3.2a Please provide details of how the use of your goods and/or services directly enable GHG emissions to be avoided by a third party As an office based business, AMP consumes large amounts of paper in undertaking its business and in communicating with and serving its customers. AMP has introduced various initiatives to reduce environmental impacts associated with paper consumption which helps to contribute to upstream emissions reductions within the paper manufacturing sector. This includes: introducing a Managed Print Services (MPS) initiative to replace printers, scanners and faxes as they go out of lease with all in one multi-functional devices (MFDs) and a smaller number of printers, reducing printing costs by introducing a 'user-pays' system, introducing default duplex printing to reduce paper consumption, sourcing paper with recycled content, and encouraging employees and AMP customers to go paperless by using online statements for AMP super plans and other AMP accounts and through use of new technology (tablets). As an example of one initiative, Project EDGe is designed to improve the AMP customer experience through redesigning statements and encouraging customers to go paperless by viewing statements online. By the end of December 2014 approximately 150,000 AMP customers have now elected to receive their statements on line via through AMP s Project EDGe system. The number of customers receiving communications via and text messages has also increased. In total over 1,000,000 customer communications were distributed electronically. This initiative alone resulted in saving 1,921,071 sheets of paper equivalent to 20,085 kg/co2e - based on EPA Victoria s methodology (Worksheet 4 Calculating GHG from Paper (Feb, 2009). This initiative is an internal AMP initiative and not eligible for carbon credit certificate creation e.g. through CDM, JI. CC3.3 Did you have emissions reduction initiatives that were active within the reporting year (this can include those in the planning and/or implementation phases) Yes CC3.3a

18 Please identify the total number of projects at each stage of development, and for those in the implementation stages, the estimated CO2e savings Stage of development Number of projects Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *) Under investigation To be implemented* Implementation commenced* 1 81 Implemented* Not to be implemented CC3.3b For those initiatives implemented in the reporting year, please provide details in the table below Activity type Description of activity Estimated annual CO2e savings (metric tonnes CO2e) Scope Voluntary/ Mandatory Annual monetary savings (unit currency - as specified in CC0.4) Investment required (unit currency - as specified in CC0.4) Payback period Estimated lifetime of the initiative Comment Energy efficiency: Building services With two-thirds of commercial office energy use coming from lighting and electrical appliances (printers and computers etc.) the AMP Environmental Leadership Team (ELT) has assessed methods for harnessing more 60 Scope 2 Voluntary years 6-10 years

19 Activity type Description of activity Estimated annual CO2e savings (metric tonnes CO2e) Scope Voluntary/ Mandatory Annual monetary savings (unit currency - as specified in CC0.4) Investment required (unit currency - as specified in CC0.4) Payback period Estimated lifetime of the initiative Comment Energy efficiency: Building natural daylight and installing more energy-efficient lighting options. Lighting audits have been completed in most major tenancies with assistance from AMP Green Champions. Energy saving measures such as replacement of halogen down light bulbs (55w) with LED (7w) have been implemented in several locations already on a voluntary basis e.g. 50 Bridge Street, Sydney, where projected savings include 66,946 kwh and approximately 60 tco2e (Scope 2 emissions). Trials have been completed to replace 40-45W tubes with longer life 20-24W LED tubes and replacement has commenced in some locations. Such initiatives have been further investigated and implementation is in progress across other major tenancies including AMP Headquarters Circular Quay, Jessie Street Centre, Parramatta and 750 Collins St Melbourne (refer below). Various tenancies were operating an open plan office, which was controlled by manually operated 106 Scope 2 Voluntary years 6-10 years

20 Activity type Description of activity Estimated annual CO2e savings (metric tonnes CO2e) Scope Voluntary/ Mandatory Annual monetary savings (unit currency - as specified in CC0.4) Investment required (unit currency - as specified in CC0.4) Payback period Estimated lifetime of the initiative Comment services key switch lighting systems. This resulted in general lighting being left on overnight unnecessarily regardless of staff occupation levels. To resolve this issue, investigations were undertaken voluntarily to develop computerised fully managed lighting control systems including zone lighting controls and motion sensors for various tenancies. Lux controls have also been installed for perimeter lighting in some locations. This ensures lighting systems are running as efficiently as possible and can result in an energy saving of between 5-15% depending on the tenancy usage and operations. Savings of over 30% have been achieved when used in conjunction with energy efficient lighting upgrades as discussed above. The Mysmart microwave sensor lighting control design was chosen for costeffectiveness (30-40%), minimal disruption to work environment, no programming required, payback period less than three years with savings in energy related costs and Scope 2 GHG

21 Activity type Description of activity Estimated annual CO2e savings (metric tonnes CO2e) Scope Voluntary/ Mandatory Annual monetary savings (unit currency - as specified in CC0.4) Investment required (unit currency - as specified in CC0.4) Payback period Estimated lifetime of the initiative Comment Energy efficiency: Building services Energy efficiency: Building services emissions. AMP occupies levels 4 to 7 at 750 Collins Street, Melbourne. The tenancy lighting is operated manually using switches. This manually controlled lighting system relies on the behaviour of employees to turn off the lights at the end of the day and has resulted in the lights remaining on overnight. To remove any reliance on employees turning off the lights at the end of the day the manual controls can be converted into a fully automatic system by installing occupancy sensors. By rewiring parts of the lighting system and installing 65 occupancy sensors throughout the workstation areas, lights can be turned off automatically when the system fails to detect any movement in the vicinity of the sensor, therefore isolating lighting to areas where employees may be working after hours. A further lighting upgrade has also been undertaken in 'common areas' on levels 5 to 7, 750 Collins Street, Melbourne Scope 2 Scope 2 Voluntary Voluntary years 1-3 years 6-10 years 6-10 years Additional savings also through reduced maintenance costs

22 Activity type Description of activity Estimated annual CO2e savings (metric tonnes CO2e) Scope Voluntary/ Mandatory Annual monetary savings (unit currency - as specified in CC0.4) Investment required (unit currency - as specified in CC0.4) Payback period Estimated lifetime of the initiative Comment This includes kitchens and associated break-out areas which were fitted with poor quality architectural halogen lighting during construction by the previous building owner (landlord). AMP has voluntarily removed 35W halogen bulbs and fitted new 21W LED fittings across these areas. Combined estimated energy savings are 19,600 kwh which is a 60% reduction in lighting energy consumption for these zones and contributing to associated reduction in Scope 2 emissions. AMP is the sole tenant at its headquarters at 33 Alfred St, Sydney. Major lighting upgrades are voluntarily underway in addition to a transformation project to an Activity Based Working (ABW) environment. Four floors have so far received upgraded lighting systems, including new T5 Ecofluro LED (19W) tubes, daylight harvesting and zone controls. Combined estimated electricity savings are 93,867 kwh with associated reductions in Scope 2 emissions. (approx. $32,000), as the layout of halogen lights led to a high number of lamp failures. Energy efficiency: Building services 81 Scope 2 Voluntary years 6-10 years

23 Activity type Description of activity Estimated annual CO2e savings (metric tonnes CO2e) Scope Voluntary/ Mandatory Annual monetary savings (unit currency - as specified in CC0.4) Investment required (unit currency - as specified in CC0.4) Payback period Estimated lifetime of the initiative Comment Energy efficiency: Building services Energy efficiency: Building services A further 10 floors in this building are due to be completed by the end of BMCS and Mechanical Services upgrades (e.g. chiller upgrades, replacement coils, energy efficient motors) have also been undertaken voluntarily to the base building of AMP headquarters at 33 Alfred Street, Sydney. BMCS is the main control system for the base building and controls air conditioning. Optimisation technology allows the system to measure several points including outside air temperature and humidity, allowing the system to run in the most energy efficient manner. It also facilitates more control of base building energy use, including sub-metering of energy usage. Estimated energy savings delivered is approximately 1000 MWh per annum with associated reductions in Scope 2 emissions. The tenancy BMCS has also been voluntarily upgraded at AMP headquarters 33 Alfred Street Sydney (e.g. chiller 178 Scope 2 Scope 2 Voluntary Voluntary years years

24 Activity type Description of activity Estimated annual CO2e savings (metric tonnes CO2e) Scope Voluntary/ Mandatory Annual monetary savings (unit currency - as specified in CC0.4) Investment required (unit currency - as specified in CC0.4) Payback period Estimated lifetime of the initiative Comment Transportation: use upgrades, replacement coils, variable speed drives) as part of the Activity Based Working (ABW) upgrade. The tenant BMCS controls the tenant chiller and HVAC systems for the computer room and supplements base building on some floors. The installation of variable speed drives optimises the tenant chiller system through the soft start of condensers. Energy savings have proved difficult to measure without installing additional metering hardware. In addition, the load is constantly changing as AMP continues to roll out new floors as a part of the ongoing ABW project which is due for completion at the end of AMP continued to introduce additional video conferencing capacity to help reduce business air travel requirements and contribute to reductions in AMP s overall carbon footprint. A Managed Video Conferencing Service (MVCS) aims to standardise and enhance the efficiency of the service offering, increase utilisation and thereby Scope 3 Voluntary years 6-10 years

25 Activity type Description of activity Estimated annual CO2e savings (metric tonnes CO2e) Scope Voluntary/ Mandatory Annual monetary savings (unit currency - as specified in CC0.4) Investment required (unit currency - as specified in CC0.4) Payback period Estimated lifetime of the initiative Comment Transportation: use reduce demand, in particular for domestic air travel. Work undertaken has included increasing the number of video conferencing units primarily focusing on Sydney and Melbourne - where the highest demand for flights occurs. Estimating the impact of video conferencing on reducing air travel (Scope 3) emissions is understandably difficult to quantify particularly as air travel is influenced by business requirements. AMP expects continued correlation between reductions in business air travel (Scope 3) emissions and further increases in MVCS capacity, along with reductions in nonessential business travel activity. Offsetting of business air travel (Scope 3 emissions) for flights booked through AMP's corporate travel management providers (CTM and FCM). An internal carbon levy is applied to flights booked on the travel management system. This levy is used to fund the purchase of NCOS compliant carbon offsets Scope 3 Voluntary <1 year Ongoing

26 Activity type Description of activity Estimated annual CO2e savings (metric tonnes CO2e) Scope Voluntary/ Mandatory Annual monetary savings (unit currency - as specified in CC0.4) Investment required (unit currency - as specified in CC0.4) Payback period Estimated lifetime of the initiative Comment Behavioral change from the international voluntary carbon market (e.g. Gold Standard, VCS). AMP via the ELT conducts due diligence on project selection and trade execution of carbon offset purchases via an international trading platform and registry. Engaging with AMP employees is an ongoing priority for the AMP ELT. AMP s Green Tomorrow environment initiative invites all AMP employees to get involved in helping achieve AMP s environmental goals. Featured on the AMP intranet, Green Tomorrow is AMP s primary staff engagement mechanism. Its purpose is to inform staff of useful tips (behavioural) to reduce office based energy use, Scope 2 GHG emissions and improve waste management and recycling practices. The Green Tomorrow initiative raises environmental awareness in a variety of ways such as through the AMP employee staff induction program; regular updates and communications from the ELT, the establishment Scope 2 Voluntary <1 year Ongoing

27 Activity type Description of activity Estimated annual CO2e savings (metric tonnes CO2e) Scope Voluntary/ Mandatory Annual monetary savings (unit currency - as specified in CC0.4) Investment required (unit currency - as specified in CC0.4) Payback period Estimated lifetime of the initiative Comment Behavioral change of a Green Champions network, educational videos, external guest presentations, staff workshops, competitions, and inviting staff to and share their ideas for reducing AMP s environmental footprint. AMP first piloted a Green Tomorrow Floor Wars competition across levels at the AMP Capital 50 Bridge St in Sydney back in The goal was to see which floor could reduce energy consumption each month and also achieve the highest waste recycling rates over a four month period. The main purpose was to raise awareness among employees of simple measures they can introduce from a behavioural perspective to reduce GHG emissions (primarily from energy and waste). Floor Wars confirmed progress can be made on a floor by floor basis purely on behavioural change. Since then the ELT via the Green Champions network has rolled out further competitions at other major AMP tenancies such as Scope 2 Voluntary <1 year Ongoing