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We take pride in pursuing environmental leadership
while helping Australians meet their need for a
reliable supply of electricity and gas. We believe
effective environmental practices result in economic
benefts through using resources effciently and
productively. We also believe that continuously
seeking out better ways to manage our environmental
impact creates value for us. We can distinguish
ourselves from our competitors, manage our
liabilities to environmental penalties, mitigate the
future impact of tighter environmental regulation
and contribute towards earning our social licence.
Table 6 shows our environmental
performance against the assets we own
to generate electricity, store and process
gas and operate our corporate offces.
Our total carbon emissions fell by around 21 percent
to 12.9 MtCO2e in 2012 compared to 2011 for our
operationally controlled sites (Scope 1 and 2). Our
total carbon emissions for producing electricity
from our operationally controlled assets were 12.8
MtCO2e (Scope 1), down from 16.2 MtCO2e and
16.0 MtCO2e in 2011 and 2010 respectively.
The lower emissions level in 2012 was largely
due to lower production at our Yallourn Power
Station due to the collapse of the river diversion
and because we ran three out of the four units
at the power station in the second half of 2012
as a result of lower aggregate demand and the
introduction of the carbon price under the Australian
Government's Clean Energy Future legislation (Read
more in the 'Transition to Clean Energy Future
legislative package' section of this chapter).
In our Climate Change Strategy we have set our
medium term goal of reducing our emissions
intensity from 1.2 tCO2 in 2007 to 0.8 tCO2 by 2020.
In calculating the emissions intensity we include
generation output from power stations for which we
hold the right to trade on the wholesale energy market
(refer to the About Us chapter for more details
on these arrangements). As such, while we are
not the operators of these power stations, we collect
and record the emissions that the generation output
produces. In 2012, the emissions from the generation
of electricity from these power stations totalled
12.1 MtCO2e, compared to 10.6 MtCO2e in 2011.
The increase is largely due to including a full year
of data for the Delta West arrangements in 2012
compared to 10 months of data for 2011 as we
took control of the generation output from the
Delta West arrangement on March 2011 from
the New South Wales Government. Read more
in the Preparing for the New Energy System
chapter, which contains more information about
our Climate Change strategy and our performance
against the strategy in reducing our carbon
emissions intensity while growing our business.
Apart from the emissions from our electricity
generation we also measure the use of energy as
a company. Relative to our direct emissions from
electricity generation, emissions attributed to our
use of electricity are relatively low. Emissions from
electricity used by EnergyAustralia are calculated
based on the defnition of Scope 2 emissions under
National Greenhouse and Energy Reporting (NGER).
In 2012 the emissions from the use of electricity
at the generation sites we own contributed around
1.56 percent (0.207 MtCO2e) of EnergyAustralia's
total emissions, where total emissions are an
aggregation of Scope 1 and 2 emissions. Total
Scope 1 and 2 emissions from our Iona gas
storage facility accounted for 0.63 percent of total
company-wide emissions and Scope 2 emissions
from our Corporate Offces accounted for around
0.02 percent of total company-wide emissions.
While emissions directly generated by customers
using electricity is zero, natural gas is combustible at
the end use point and therefore the majority of direct
emissions from natural gas occurs when consumers
use natural gas in their homes and/or businesses.
In 2012, EnergyAustralia's emissions from natural
gas usage by our customers were 3.9 MtCO2e
and a further 0.8 MtCO2e was passed through to
major commercial and industrial users of gas.
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