Greenhouse

Gas Emissions

Inventory Report

AUGUST 2023

Summary of Emissions

Purpose and limitations of this report

This report is a summary of Vector's greenhouse gas inventory. It is intended to inform readers about Vector's business strategy with respect to greenhouse gas emissions, but it is not earnings guidance nor financial advice for investors.

While Vector has taken all due care in preparing this report and has taken efforts to ensure that assumptions and input data have a reasonable basis and are coherent and robust (including basing them on modelling, public scientific information, market knowledge, government guidance, supplier information and reasonable/ expert opinions), assessments of greenhouse gas emissions are still a developing field. Modelling assumptions, emission factors and third-party data are expected to evolve as the discipline progresses.

To the greatest extent possible under NZ law, Vector expressly disclaims all liability for any direct, indirect or consequential loss or damage occasioned from the use or inability to use this report, whether directly or indirectly resulting from inaccuracies, defects, errors, omissions, out of date information or otherwise.

We recommend you seek independent advice before acting or relying on any information in this report.

2023 Reporting Suite

This GHG Emissions Inventory Report is published as part of a reporting suite, which also includes our Annual Report, and Taskforce on Climate-related FInancial Disclosures Report. All three reports are available on vector.co.nz

In FY23, Vector's greenhouse gas emissions across scope 1, 2 and 3 amount to 1,620,321 tCO2e. This is a 14.7% reduction from FY20, Vector's base year.

Table 1 summarises yearly emissions by scope, Table 2 shows total scope 1 and 2 emissions split by the gases stated in the Kyoto Protocol, and Table 3 breaks down emissions into scope and category.

Table 1: Emissions trend by scope in tCO2e

Emissions

FY20

FY21

FY22

FY23

Change

category

from FY20

baseline

Total Scope 1, 2, 3

1,898,798

1,680,543

1,601,008

1,620,321

-14.7%

Scope 1

22,388

17,887

21,816

19,485

-13%

Scope 2*

33,148

34,449

39,486

42,810

29%

Scope 3

1,843,262

1,628,207

1,539,706

1,558,026

-15%

Table 2: Total FY23 emissions by greenhouse gas in tCO e†

2

Scope

CO2

CH4

N2O

HFCs

SF6

Total

tCO2e

Total FY23

48,017

12,816

131

141

2,180

63,285

Scope 1

5,315

11,802

47

141

2,180

19,485

Scope 2

42,702

1,014

84

N/A

N/A

43,800

(location-based)

  • Market-basedmethod for electricity consumption. While location-based electricity emissions are also included in our inventory, the sums in tables 1 and 3 include only market-based emissions, as these form part of our science-aligned reduction target.

† PFCs and NF3 are not listed here as they are not relevant to Vector activities.

2 Vector GHG Emissions Inventory Report FY23

SUMMARY

ORGANISATIONAL

OPERATIONAL

DATA

GHG EMISSION

GHG EMISSION

REFERENCES

BOUNDARIES

BOUNDARIES

COLLECTION AND

CALCULATION

REDUCTIONS

& APPENDIX

QUANTIFICATION

AND RESULTS

Table 3: GHG inventory by scope and category in tCO2e. FY23 emissions highlighted in green indicate a reduction since the baseline, whereas emissions in red show increases. Black indicates no change from base year, or no emissions calculated for FY20.

Emissions category

FY20

FY21

FY22

FY23

Total Scope 1, 2*, 3

1,898,798

1,680,543

1,601,008

1,620,321

Scope 1

22,338

17,887

21,816

19,485

Natural Gas Distribution Fugitive Emissions‡

16,368

12,074

14,493

11,908

SF6 Fugitive Emissions

426

592

1,859

2,180

Other Fugitive Emissions§

141

142

134

141

Stationary Combustion

3,558

2,971

3,348

3,183

Vehicle Fleet§

1,895

2,108

1,982

2,073

Scope 2*

33,148

34,449

39,486

42,810

Electricity Consumption (market-based)§

643

826

408

220

Electricity Consumption (location-based)§

815

801

891

1,210

Electricity Distribution Losses

32,505

33,622

39,078

42,590

Scope 3

1,843,262

1,628,207

1,539,706

1,558,026

C1: Purchased Goods & Services

Upstream Purchased Natural Gas

227,569

170,442

136,821

152,290

Upstream Purchased LPG

46,555

47,609

52,806

58,140

Fuel Used by Field Service Providers§

6,475

6,822

6,456

7,235

Upstream Purchased Materials & Products||

15,266

11,733

13,874

11,783

Upstream Purchased Other Goods & Services||

75,939

71,465

75,080

79,559

C3: Fuel- and Energy-related Activities§

1,405

1,312

1,450

1,456

C4: Upstream Transportation

2,717

2,557

3,225

2,891

C5: Waste Generated in Operations||

-

-

-

92

C6: Business Travel§

332

103

95

271

C7: Employee Commuting and WFH||

-

-

-

933

C11: Use of Sold Products

Distributed Natural Gas AKL - Total

772,265

760,185

711,337

735,048

Sold Natural Gas - AKL

151,603

115,578

57,149

66,376

Shipped Natural Gas - AKL

-

-

55,245

66,265

Other Distributed Natural Gas - AKL

620,662

644,607

598,943

602,407

Sold Natural Gas - non-AKL

562,567

381,871

231,127

223,568

Shipped Natural Gas - non-AKL

-

47,002

183,614

160,293

Sold LPG

131,385

126,245

122,904

123,542

C15: Investments

Liquigas

87

89

108

105

Vector Metering§

700

771

809

821

Biogenic CO2

162

134

150

138

  • A recalculation of FY22 was undertaken to add emissions from two leaks that occurred in June 2022, but were only documented as completed past the cut-off date for last year's GHG emissions inventory report. For details see Section 4.
  • Recalculated FY20 - FY22 to remove emissions relating to Vector Metering after selling a 50% interest in the business. A 50% equity share of Vector Metering's scope 1 and 2 emissions is now included under scope 3. For details see Section 1 and Section 4.
  • Scope 3 categories that are newly included in FY23 reporting. Where emissions are material, these have been recalculated for FY20 - FY22 while immaterial categories are only included from FY23. For details see Section 4.

3

Summary of Emissions (continued)

Glossary of terms

Table 4: Definition

and glossary of terms

Term

Description

AKL

Auckland

Carbon footprint

Vector's GHG emissions covered by the Kyoto Protocol, calculated in tonnes of carbon dioxide equivalent

(tCO2e).

CO2

Carbon dioxide

DEFRA

Department of Environment, Food and Rural Affairs (UK)

EGF

Vector's Electricity distribution, Gas distribution and Fibre business

Emissions

GHG emissions

EPD

Environmental Product Declaration

EV

Electric vehicle

FSP

Field service provider

FY

Financial year

GHG

Greenhouse gas

For the purposes of this report, GHGs are the seven gases listed in the Kyoto Protocol. These are currently:

carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs),

sulphur hexafluoride (SF 6), and nitrogen trifluoride (NF3).

GHG Protocol

The Greenhouse Gas Protocol, a partnership between World Resources Institute (WRI) and the World Business

Council for Sustainable Development (WBCSD). The GHG Protocol develops standards and guidance, such as the

Corporate Standard and the Corporate Value Chain (scope 3) Standard, both used as guidance for this report.

GWP

Global warming potential, a measure of how much energy the emissions of 1 tonne of a greenhouse gas will

absorb over a given period, relative to the emissions of 1 tonne of carbon dioxide (CO2).

GXP

Grid Exit Point

HVAC

Heating, ventilation, and air conditioning

ICP

Installation Control Point

IPCC (AR4/AR5)

Intergovernmental Panel on Climate Change (Fourth / Fifth Assessment Report)

LPG

Liquefied petroleum gas

MfE

Ministry for the Environment (NZ)

NZ

New Zealand

NZU

New Zealand Units

NZECS

New Zealand Energy Certificate Scheme

NZ ETS

New Zealand Emissions Trading Scheme

OGMP

Oil and Gas Methane Partnership

SBTi

Science Based Targets initiative

SELMA

Street Evaluation Laser Methane Assessment

SF6

Sulphur hexafluoride

T&D

Transmission and distribution

tCO2e

Tonnes of carbon dioxide equivalent

TCFD

Taskforce on Climate-related Financial Disclosures

TPD

Third-party damages

Vector

Vector Limited Group

WTT

Well-to-tank

4 Vector GHG Emissions Inventory Report FY23

SUMMARY

ORGANISATIONAL

OPERATIONAL

DATA

GHG EMISSION

GHG EMISSION

REFERENCES

BOUNDARIES

BOUNDARIES

COLLECTION AND

CALCULATION

REDUCTIONS

& APPENDIX

QUANTIFICATION

AND RESULTS

Introduction

This report is for the Vector Limited Group ("Vector" or "the group"). The group comprises Vector Limited and its subsidiaries. Vector Limited is NZX listed and 75.1% owned by Entrust, a private community trust. A list of all subsidiaries can be found in Appendix 1.

The purpose of this report is to transparently disclose Vector's greenhouse gas ("GHG") emissions: how they are quantified, how we're tracking towards our reduction targets and steps planned to further reduce GHG emissions ("emissions").

This GHG inventory report is for Vector for the year ended 30 June 2023. The inventory covered in this report is a complete and accurate quantification of the amount of GHG emissions that can be attributed to Vector's operations within the declared boundary and scope for the specified reporting period. Any exclusions from reporting are disclosed and justified.

This report has been prepared in accordance with the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard [1] ("GHG Protocol Standard") and the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard [2] ("GHG Protocol Value Chain Standard").

Statement of intent

Vector reports on its GHG emissions on an annual basis and has been calculating its carbon footprint since 2017.

Vector's GHG inventory has been calculated in accordance with the GHG Protocol Standard [1] and the GHG Protocol Value Chain Standard [2].

Its intended users are all interested stakeholders, including shareholders, investors, regulators, communities, employees, customers, and contractors.

This GHG inventory report has been reasonably assured by KPMG, see Appendix 3.

Reporting period covered

This GHG inventory report covers Vector's financial year 1 July 2022 to 30 June 2023 ("FY23"). A summary of emissions can be found in both Vector's Annual Report 2023 and Taskforce on Climate-related Financial Disclosures (TCFD) Report 2023.

Variations: As SF6 losses are calculated for the calendar year to align with New Zealand Emissions Trading Scheme ("NZ ETS") reporting requirements, SF6 emissions refer to January - December 2022.

The purpose of this report is to transparently disclose Vector's GHG emissions: how they are quantified, how we're tracking towards our reduction target, and steps planned to further reduce GHG emissions.

Launch of New Zealand's first fully electric bus depot with the capacity to charge 20 - 30 buses each. Charging at this depot occurs within a 'dynamic operating envelope', where Vector forecasts optimal charging times each day and provides this through to the depot, reducing peak demand for

a more affordable charging solution.

5

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Disclaimer

Vector Limited published this content on 24 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 August 2023 21:10:18 UTC.