ENERGY EFFICIENCY OPPORTUNITIES REPORT 2012 1 July 2009 30 June 2012
CONTENTS 1 IntroductIon... 2 1.1 About the WestpAc Group... 2 1.2 the WestpAc Group energy use...4 2 energy Assessments And opportunities...5 2.1 About the energy efficiency opportunity program...5 2.2 WestpAc Group energy Assessments...6 3 case studies...10 3.1 LIGhtInG upgrade pitt st sydney...10 3.2 building tuning program...11 3.3 LIGhtInG upgrade 360 collins st melbourne...12 AbbreVIAtIons...12
DECLARATION SustAInabILIty is a core component of the Westpac Group s vision to be one of the world s great companies helping our customers, communities and people to prosper and grow. We recognise the links between healthy societies and sustainable businesses. A crucial part of this is managing our direct and indirect environmental impacts. The Energy Efficiency Opportunities (eeo) program, which Westpac joined in 2009, complements our existing environmental programs. I am pleased to present the Westpac Group s second annual Energy Efficiency Opportunities Report detailing our commitment to energy efficiency and outcomes achieved through the EEO program over the last three years. The information included in this report has been reviewed and noted by the Board of Directors and is to the best of my knowledge, correct and in accordance with the Energy Efficiency Opportunities Act 2006 and Energy Efficiency Opportunities Regulations 2006. Gail Kelly Chief Executive Officer Westpac Group Date: 14 December 2012 1
1. IntroductIon 1.1 ABOUT THE WESTPAC GROUP the WestpAc Group Is A financial services company WIth operations In AustrALIA, new ZeALAnd And the near pacific region And maintains offices In key financial centres Around the WorLd. We are ranked in the top 5 listed companies by market capitalisation on the Australian securities exchange (AsX). With almost 30,000 full time equivalent staff in Australia and a network of over 4,000 facilities including: stand alone and in-store Atms; tool of trade vehicles; commercial offices; customer contact centres; branches; and business banking centres the Westpac Group services more than 11 million customers. WestpAc Group commitment to sustainability the Westpac Group is committed to reducing our carbon emissions and improving the energy efficiency of our operations. We believe that implementing energy efficiency projects makes good business sense and as such, energy and carbon requirements are included in our environmental policy and sustainability strategy. the Westpac Group environmental policy covers the management of our ecological footprint, the measuring and reporting of our performance, including energy and the incorporation of environmental considerations into our risk management framework. energy performance and energy assessment objectives are also included in the Westpac Group sustainability strategy which has been endorsed by the board and ceo. Implementation of the sustainability strategy is led by the sustainability council, a committee of General managers from across the business. corporate structure As at 30 June 2012, the Group consisted of 246 controlled entities, 175 of which are incorporated in Australia. the majority of controlled entities have no facilities, staff or physical assets. only 17 entities are reportable under the eeo Act and belong to one of five group members: Westpac banking corporation (controlling corporation); bt Investment management Ltd (btim); hastings fund management Ltd (hastings); Qvalent pty Ltd; and rams financial Group Ltd (rams). the Westpac Group eeo Group member structure (figure 1) is the same as that reported under the national Greenhouse and energy reporting (nger) Act. for a full list of entities, refer to the Westpac Group Annual report. there have been no major changes to the corporate group structure or operations during the last twelve months. Westpac Group strategies have seen the launch of the bank of melbourne brand - in Victoria, st.george branches and corporate banking centres were converted to bank of melbourne. there has also been the expansion of technology services to meet the growing needs of our customers. 2
figure 1: WestpAc Group eeo Group member structure Westpac BanKinG corporation Abn 33 007 457 141 Westpac equity HoLDinGs pty LtD Abn 77 003 018 559 HastinGs ManaGeMent pty LtD Abn 88 101 976 336 QVaLent pty LtD Abn 71 088 314 827 rams FinanciaL GroUp pty LtD Abn 30 105 207 538 Westpac FinanciaL services GroUp LtD Abn 50 000 326 312 HastinGs FUnDs ManaGeMent LtD Abn 27 058 693 388 Bt investment ManaGeMent LtD Abn 28 126 385 822 KeY controlling corporation eeo GroUp MeMBer 3
1. IntroductIon 1.2 THE WESTPAC GROUP ENERGY USE from 1 JuLy 2011 to 30 June 2012, the WestpAc Group used 799,412 GJ of energy WhIch Is 7.5% below our 2008-09 energy use (figure 2). this reduction is attributed to the sale of subsidiaries, energy efficiency works, relocation to more energy efficient tenancies and a reduction in fleet numbers. figure 2: WestpAc Group energy use figure 3: WestpAc Group energy split for 1/7/2011-30/6/12 Energy Use (GJ) 900,000 850,000 800,000 750,000 700,000 650,000 600,000 550,000 500,000 2008 2009 Electricity Unleaded Petrol LPG (Transport) Diesel (Stationary) 2009 2010 2010 2011 2011 2012 LPG (Stationary) Diesel (Transport) Natural Gas Commerical 36% Retail 34% Data Centres 17% Fleet 10% Off-site ATMs 2% Other 1% (RAMS, Hastings, Qvalent, BTIM) the majority of energy consumed by the Westpac Group is electricity (86% of the total energy use). unleaded petrol is the second largest energy source consumed (10% of the total energy use). this energy is used predominantly by our commercial offices and retail network as shown in figure 3. full details of the Westpac Group s environmental performance, including our carbon emissions, are included in the Annual review and sustainability report which is available on our website: www.westpac.com.au. 4
2. energy Assessments And opportunities 2.1 ABOUT THE ENERGY EFFICIENCY OPPORTUNITY PROGRAM the energy efficiency opportunities Act 2006 (eeo Act) Is A national LAW that requires AustrALIAn corporations Who use more than 500,000 GJ of energy per year to Assess their energy use And ImproVe energy efficiency over A five year period. It does this by requiring businesses to undertake energy assessments, identify and evaluate energy efficiency opportunities and publicly report findings each year. eeo assessments must address six key elements: 1. Leadership; 2. people; 3. Information, data and Analysis; 4. opportunity Identification and evaluation; 5. decision making; and 6. communicating outcomes. the eeo program is administered by the department of resources, energy and tourism (dret). for more information on the eeo program, refer to www.ret.gov. au/energy/efficiency/eeo. All ideas 1 identified through the energy assessment process, along with the business decision, costs and savings are recorded and tracked. Where feasible, ideas are subjected to additional technical review or additional information is sought, turning the idea into a costed opportunity 2. All opportunities are submitted to management for review and approval. opportunities are evaluated in terms of energy and maintenance savings, lease conditions, business benefits such as staff comfort, productivity and occupational health and safety and alignment of the opportunity with the Westpac Group business, sustainability, property and technology strategies. opportunities identified as not to be implemented are reviewed from time to time as energy prices, business priorities and change in the economic climate occur. regular reporting of the outcomes of energy assessments, energy performance, savings achieved from energy efficiency works and business decisions is provided to the board, senior management, operational staff and other key stakeholders on a monthly, quarterly, annual and ad hoc basis. full details of how and when we will carry out assessments are contained in our Assessment and reporting schedule. the Westpac Group has allocated personnel and budget to improve the energy efficiency of our facilities. the Group undertakes comprehensive energy assessments for all energy uses within the facility, including analysis on how and where energy is used, energy trends over time, performance indicators, influences on energy use, assessment of major energy using equipment and processes and identification of cost effective energy efficiency opportunities. A range of people are involved in the energy assessment process, including internal subject matter experts, branch managers, our sustainability champions, service providers, facility managers, consultants, contractors, and other personnel who influence energy use. 1. An idea is a potential change to a system, process, activity, technology or piece of equipment that is intended to improve energy performance, and has not yet undergone technical or whole-of-business evaluation. 2. An opportunity is a potential change to a system, process, activity, technology or piece of equipment that may result in improvements in energy performance with a payback period of 4 years or less. It is generally supported by more detailed information such as quotes or proposals. 5
2. energy Assessments And opportunities 2.2 WESTPAC GROUP ENERGY ASSESSMENTS the WestpAc Group Is In Its first 5 year program cycle And must Assess 80% of the Group s total energy use. to meet the 80% energy assessment requirement, the Westpac Group will assess: commercial offices to a Level 2 energy Audit standard (as per As3598:2000). the rams head office to a Level 2 energy Audit standard (as per As3598:2000). data centres to a Level 2 energy Audit standard (as per As3598:2000); and retail network using representative assessments: sixty branches will be assessed to a Level 3 energy Audit standard (as per As3598:2000); seven business banking centres will be assessed to a Level 2 energy Audit standard (as per As3598:2000). combined, these facilities represent 87% of the Westpac Group s total energy use from 1 July 2011 to 30 June 2012. due to the large number of branches and business banking centres, the Westpac Group uses representative assessments. representative assessments analyse energy consumption and identify energy efficiency opportunities for a small population of facilities which are representative of the whole group. the findings can then be extrapolated across the broader group. the use of representative assessments has reduced the number of retail assessments from over 1,160 to 67 resulting in cost and time savings for the Westpac Group. much of the activity in the past 12 months has focused on commercial office and data centre energy assessments as shown in table 1. the next twelve months will see the completion of commercial office assessments, ongoing assessment of retail sites, evaluation of energy efficiency ideas and opportunities and implementation of approved energy efficiency initiatives. the Westpac Group has completed 26 energy assessments over the last two years, covering 380,974 GJ of energy or 48% of the Westpac Group s total energy consumption (table 1). these assessments have identified 506 energy efficiency ideas, 288 of which have been developed into energy efficiency opportunities with potential energy savings of 90,778 GJ (table 2). of the identified opportunities: 91 have or will be implemented saving 61,306 GJ of energy per annum; 140 require further information before a decision is made; and 57 opportunities will not be implemented as they do not meet eeo and/or Westpac Group business requirements. 6
table 1: energy Assessment summary (AccurAcy of energy data Is WIthIn ±5%.) Facility assessed assessment period % of energy assessed energy use (GJ) for 1/7/11 30/6/12 commercial offices 316 George st, sydney, nsw June July 2011 100% 2,109 55 market st, sydney, nsw June July 2011 100% 10,274 275 kent st, sydney, nsw february november 2011 100% 56,522 60 martin place, sydney, nsw february november 2011 100% 15,507 80 George st, parramatta, nsw october november 2011 100% 1,211 109 st Georges terrace, perth, WA July november 2011 100% 3,771 152 st Georges terrace, perth, WA July november 2011 100% 4,996 91 king William st, Adelaide, sa march June 2012 100% 1,439 97 king William st, Adelaide, sa march June 2012 100% 10,868 7 Laffer drive, bedford park, sa march June 2012 100% 7,131 9 Laffer drive, bedford park, sa march June 2012 100% 5,056 Winterton rd, clayton, VIc march June 2012 100% 980 360 collins st, melbourne, VIc march June 2012 100% 9,150 367 collins st, melbourne, VIc march June 2012 100% 576 530 collins st, melbourne, VIc march June 2012 100% 3,424 1 king st, concord West, nsw July 2010 february 2011 100% 14,321 182 George st, sydney, nsw April - June 2011 100% 27,716 33-35 pitt st, sydney, nsw April - June 2011 100% 13,613 4-16 montgomery st, kogarah, nsw february - march 2011 100% 56,337 rams Head office rams, 11-17 york st, sydney, nsw may June 2011 100% 1,008 Data centres data centre eccc August september 2011 100% 52,882 data centre rcc may June 2011 100% 79,388 retail - Business Banking centres 27 donald st, hamilton, nsw July december 2011 100% 745 5 Allman st, campbelltown, nsw July 2011 march 2012 100% 485 1 chifley square, sydney, nsw may 2011 June 2011 100% 835 retail - Branches 22-26 Auburn rd, Auburn, nsw July August 2011 100% 630 total energy assessed to date 100% 380,974 GJ total energy use of the Westpac Group in the current reporting year (1 July 2011 30 June 2012) 799,412 total energy assessed as a percentage of total energy use 48% 7
2. energy Assessments And opportunities table 2: opportunities IdentIfIed status of opportunities identified total number of opps estimated energy savings per annum by payback period (GJ) 0 < 2 years 2 4 years > 4 years no of opps GJ no of opps GJ no of opps GJ total estimated energy savings per annum (GJ) opportunities assessed to an accuracy of <=±30% implemented 44 27 26,198 7 666 10 3,843 30,708 business response implementation commenced to be implemented under investigation 16 11 23,495 2 790 3 1,130 25,414 30 14 1,632 7 2,292 9 362 4,287 140 38 5,428 39 3,162 63 11,402 19,992 not to be implemented 57 14 1,522 17 4,107 26 3,850 9,480 total identified 287 104 58,275 72 11,018 111 20,587 89,880 opportunities assessed to an accuracy of >±30% implemented 1 1 898 - - - - 898 business response implementation commenced to be implemented under investigation - - - - - - - - - - - - - - - - - - - - - - - - not to be implemented - - - - - - - - total identified 1 1 898 0 0 0 0 898 8
figure 4: potential savings And payback Potential Energy Savings (GJ) 70,000 60,000 50,000 the majority of energy efficiency opportunities (approximately 65%) have a simple payback of less than 2 years as shown in figure 4 and most of these opportunities have or will be implemented. the Westpac Group may implement an opportunity with a simple payback of more than 4 years based on a whole of business analysis, eg occupational health and safety requirements, testing new technology, opportunity aligned with business requirements, energy efficiency is a side benefit of a broader project or the project is bundled with a series of other projects which have a shorter payback. Likewise, the Group may decide to not implement an opportunity with a payback of less than 4 years where the opportunity does not meet business requirements. figure 5 shows the types of energy efficiencies identified: It works include decommissioning servers, activating energy saving settings on computers and printers and implementing an automatic shut down program for computers. these works account for 30% of potential savings. heating, ventilation and air conditioning (hvac) works including upgrading or replacing air conditioning plant, installing variable speed drivers, modifying set points, using economy cycle and demand based ventilation. these works account for 25% of potential savings. Lighting projects including energy efficient lights, timers and sensors and account for 21% of potential savings. management / behaviour opportunities include behaviour change programs, energy efficiency requirements in procurement policies, benchmarking, monitoring and verification, reporting and aligning procedures with international and Australian standards. these opportunities account for 18% of potential savings. 40,000 30,000 20,000 10,000 0-2 YEARS Implementation Under Investigation Not to be Implemented Potential Energy Savings (GJ) 30,000 25,000 20,000 15,000 10,000 5,000 2-4 YEARS figure 5: types of opportunities IdentIfIed 4+ YEARS IT HVAC Initiative Type Lighting Management/ Behaviour Other Implementation Under Investigation Not to be Implemented 9
3. case studies 3.1 LIGHTING UPGRADE PITT ST SYDNEY equipment type Business response energy saved (GJ) Greenhouse gas abated (co2-e) Dollars saved payback period Lighting Implemented 1,038 GJ 257 tonnes $72,000 per year 2 years between January and may 2012, the Westpac Group completed a lighting upgrade in its pitt st office. the upgrade involved replacing the existing twin t8 36 watt fluorescent lighting with more energy efficient single 28 watt t5 fluorescent lighting with k12 diffusers. the new lights use 60% less energy than the existing lights without compromising lighting levels. the graph below demonstrates the 33% reduction in electricity consumption due to the lighting upgrade for the floors finished in January and february. this equates to a 1,038 GJ reduction in energy, 257 tco2-e reduction in carbon emissions and $72,000 per annum in electricity cost savings (including the internal price on carbon). With consideration of maintenance savings, the works will achieve a payback within 2 years. figure 6: energy savings from A LIGhtInG upgrade At 35 pitt st sydney ELECTRICITY USEAGE (MWh) 30 25 20 15 10 5 0 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN 2010/2011 2011/2012 10
3.2 BUILDING TUNING PROGRAM equipment type Business response energy saved (GJ) Greenhouse gas abated (co2-e) Dollars saved payback period building management system (bms) Implemented 576 GJ 109 tonnes $25,000 per year Immediate As part of the eeo assessment process and a broader collaboration between facility managers (fms) and sustainability managers, fms are encouraged to monitor the environmental performance of their sites and identify opportunities for improvement. In november 2011 the on-site fm at 7 Laffer drive bedford park undertook a building tuning program which involved modifying the operating hours of the air-conditioning system to better align with the hours staff worked and adjusting temperature set points and unit control to ensure consistent heating and cooling through the facility, preventing units from fighting each other in different modes or at different times. these adjustments have resulted in a 5% reduction in electricity per annum at the site with no capital cost to the Westpac Group. figure 7: energy savings from A building tuning program At 7 LAffer drive bedford park ELECTRICITY USEAGE (MWh) 220 200 180 160 140 120 100 80 60 40 20 0 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN 2010/2011 2011/2012 11
3. case studies 3.3 LIGHTING UPGRADE 360 COLLINS ST MELBOURNE equipment type Business response energy saved (GJ) Greenhouse gas abated (co2-e) Dollars saved payback period Lighting not to be Implemented 659 GJ 221 tonnes $22,000 per year 3.6 years An eeo Assessment at 360 collins st melbourne identified a number of energy efficient lighting opportunities, including installing occupancy sensors in open plan office space. Lighting in the Westpac Group tenancy at 360 collins st is divided into eight zones per floor. Installation of occupancy sensors in each zone would allow lights to automatically switch off when the space is not being used. this initiative could save approximately 659 GJ of energy and $22,000 in energy costs per year. however this project will not be implemented due to the payback exceeding lease tenure. ABBREVIATIONS dret department of resources, energy And tourism eeo GJ energy efficiency opportunities GIGA-JouLes the WestpAc Group or the Group the WestpAc Group, consisting of WestpAc banking corporation Abn 33 007 457 141 And Its subsidiaries WhIch Are IncorporAted In AustrALIA 12
Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714 WPB248982 (11/12) 316560