ESG (Environment, Social and Governance)
Our purpose drives our business model
We create value for our stakeholders by focusing on solving what matters for a moving world. Our ambition, what we stand for, and our values are reflected in everything we do.
When we make decisions about how to manage and build our business, we consider the resources and relationships that are critical to our ability to create value.
Our aspirations as a company align with many of the Sustainable Development Goals (SDGs) set by the United Nations. To learn more about Sustainable Development Goals visit www.un.org/sustainabledevelopment
Z has been a recognised leader in New Zealand for its sustainability reporting. As a company Z has adopted Global Reporting Initiatives (GRI) since 2014 and has undertaken integrated reporting <IR> since 2017.
Z can have the greatest impact on the following nine SDGs.
Our Stands: The foundation of our business
The Stands are the foundations of our business and support our aspirations in environmental sustainability; community; health and safety; and diversity and inclusion.
As a large, locally focused business, we can bring our energy and thought leadership to shaping this moving world in a way that is consistent with what we stand for.
This year, we launched our diversity and inclusion Stand and updated our other three Stands. The changes reflect a fundamental resetting of the company’s foundations and context.
We’re making our Stands more integrated so that each one supports the others. As with any unified approach, weaving them together makes them stronger than they are individually.
Our Health, Safety, Security and Environment (HSSE) Stand
We believe Z’s purpose to solve what matters for a moving world compels us to act on HSSE.
Our HSSE Stand remains more relevant than ever and we continue to build the capability, leadership, and culture to operate a safe business. We also continue to make changes to our business, including progressively integrating our terminals under one management system, commissioning the biodiesel plant, and optimising our retail networks.
Z Operating Risk Management (ZORM) has achieved international regulation standards while reducing the amount of harm to people and the environment and improving the controls for some of the top priority operational risks in our business. This is a significant achievement that we are proud of.
However, we know we still have work to do enter a generative culture of continuous improvement towards safety where we look to leverage what we’ve created and build even greater ownership for HSSE with all of our people.
Our Environmental Sustainability Stand
We stand for an environmentally sustainable New Zealand that is an example to the rest of the world and an inspiration to Kiwis. Z wants to move from being a part of the climate change problem to the heart of the solution.
We will be bold and provide leadership and solutions to enable our customers, stakeholders, and communities to join us on the journey to a low-carbon future.
Here are just some of the things that we have done:
Collecting data on our waste.
Each year we collect data on the waste streams from our retail sites and conduct a waste audit on our key corporate sites. We then use this data to estimate the total volume of waste we generate as a business. The total amount of waste plastics, cans, glass, and organic material recycled or composted increased due to the roll-out of our new forecourt recycling bins across Z Stations;
Want to find out more? Click here http://z.co.nz/about-z/what-matters/sustainability to see what else Z is up to.
Green House Gas Emissions
We follow the principles of the GHG protocol to measure our greenhouse gas emissions. Due to the increased size of our business with the acquisition of Caltex, we’ve reset our emissions baseline to FY17 and have set targets against this baseline.
Our operational carbon footprint
We’ve committed to reducing our operational carbon footprint by 30%, and offsetting that which we can’t reduce through partnering with permanent forest providers.
Our operational carbon footprint, including emissions from transporting our fuel around New Zealand, is pretty big. This includes emissions from travel for our staff; electricity in our terminals, offices, and Z retail sites; waste from our terminals, offices, and Z retail sites; and HVAC in our offices and Z retail sites.
We chose to partner with Permanent Forests NZ Ltd to invest in permanent local forestry projects with additional environmental benefits. These forests are across ten different projects the length of the country and include a mix of indigenous and exotic forestry to maximise carbon sequestration, as well as protect and enhance native biodiversity.
Our corporate and retail staff are also getting out and planting trees. The planting is part of Z’s partnership with Trees That Count, an organisation that’s building New Zealand’s community marketplace for native-tree planting.
In 2018 Trees That Count planted 25,000 native trees in partnership with Z across New Zealand through Z’s funding based on specific ‘discount days’ at Z service stations. From every litre of fuel sold, we donated six cents to Trees That Count. We also gave customers a discount of six cents per litre. We plan to do this every year.
In July 2018 Z Energy was proud to be one of the founding members of the Climate Leaders Coalition (CLC).
The CLC was launched to promote business leadership and collective action on the issue of climate change. The CLC is on a mission to reduce emissions in Aotearoa New Zealand. Over 80 Chief Executives have signed the joint statement, which commits their organisations to take voluntary action on climate change. This includes measuring and publicly reporting their greenhouse gas emissions, setting a public emissions reduction target, and working with suppliers to reduce their emissions. The second part of the statement sees Coalition members support the Paris Agreement and New Zealand’s commitment to it, the introduction of a Climate Commission and carbon budgets enshrined in law.
The Coalition's goal is to help New Zealand transition to a low emissions economy and, in doing so, create a positive future for New Zealanders, business, and the economy.
Find out more about the CLC here: https://www.climateleaderscoalition.org.nz/about
We’re setting a minimum energy standard for shipping; our Supply and Distribution team and our Sustainability team have taken an integrated approach to set a minimum energy standard for tankers shipping our refined products from Asian markets. We also work to get tankers that can take backloads whenever possible. The minimum standard includes picking up methanol from Methanex on their return. Backhauling means we’re not sending back empty ships.
We continue our drive to reduce waste to landfill across our retail network. Most of Z’s waste comes from our convenience stores. We’ve countered that by putting modular recycling bins on Z’s forecourts. The black part of the bins is made from 100 percent recycled plastic and our old grey bins make up some of the feedstock.
We found that with the old bins, a lot of recycling was getting tainted and had to be thrown into landfill. The new modular forecourt bins make it easy for customers to separate their recycling materials. And because the materials are less contaminated, there’s a much higher chance they’ll get recycled.
We have refreshed and broadened our Community Stand, which was first launched in 2014. The original Stand was focused more on ‘close to home’, with initiatives mainly within the wider Z whānau and our local communities. We want to do more.
Some of our achievements under the previous stand included:
- Z Foundation (hardship fund) launched
- scholarships for Z retail network
- skilled volunteering programmes
- financial literacy training for site staff
- offering New Zealand Certificate in Retail – Level 4 qualifications for site staff
- Workbridge partnership and inter-agency partnership for disability employment
- St John commercial partnership and rollout of defibrillators across all Z sites.
One of Z’s key areas of focus under our new Community Stand is to lift the potential of young people by building their capability, confidence, and career choices. We’ve completed research into how Z can amplify the voice of youth and support vulnerable young people to find their voice. We’ve also partnered with Minded, a digital ‘edutech’ platform who help young people to understand themselves, plan their future, and get ready for starting a job.
Over $5 million of Good in the Hood funding has gone to community groups
We continue to run the annual Good in the Hood community fundraising programme. Over 800 groups selected each year to participate at Z service stations all received a share of the $1 million in funding given away during the Good in the Hood program. Groups also benefit from increased exposure and the chance to interact with the community at their local Z during voting month each year.
Each of Z’s 204 service stations selects four groups to support and has $4,000 to donate. Customers then determine what percentage of the funding goes to each group by voting with an orange token every time they shop at Z during voting month.
Since 2012, over $5 million of Good in the Hood funding has gone to community groups and projects helping the country’s neighbourhoods to thrive.
Our new Diversity and Inclusion Stand
Last year, we announced the introduction of our diversity and inclusion Stand and recently we embedded diversity and inclusion into our people policies, processes, and practices. We’ve also been certified with the Rainbow Tick.
We want to reflect the diversity of New Zealand with an inclusive culture so that our own diversity can be fully expressed and create tangible benefits. You can find our diversity and inclusion Stand here www.z.co.nz/about-z/what-matters/diversity/
Our gender balance has improved significantly since the early days of Z, and our target is to achieve 50/50 gender balance at all levels by 2020. We took a small backward step after the Caltex acquisition, but we will close the gap by 2020. You can find the latest gender balance statistics in Z Annual Report.
We have three focus areas leading up to 2020.
- Māori – we have embraced Te Ao Māori and it is an integral part of Z.
- Gender – our gender balance reflects New Zealand at all levels, including the board and operational roles.
- Inclusion – our Asian staff have equally high levels of inclusion as other employees.
Z Energy is the first company in the industry to obtain the Rainbow Tick NZ certification. Rainbow Ticks are awarded to organisations that complete a Diversity & Inclusion certification process. The certification process tests whether a workplace understands, values, and welcomes sexual and gender diversity. Z Energy is one of just over thirty New Zealand companies making this public commitment. To find out more about what the Rainbow Tick means to Z and why, please go to http://why.z.co.nz/why/embracing-diversity-with-the-rainbow-tick/
Active corporate governance supports value creation
Z’s board believes it should relentlessly focus on four matters: context, strategy, risk, and assurance.
Our board is entirely comprised of independent non-executive directors, leading a highly credible and capable management team with significant experience in a range of sectors, including fuel supply chain operations and retail fuel marketing. The board make up is regularly reviewed against a skills matrix which we publish in our annual report. The matrix considers Z’s current and future strategy and a range of other factors to ensure the appointment of a diverse range of talent and experience best suited to lead Z into the future.
The board meets eight times a year for two full days; every two months plus additional meetings at half year and full year results. There are three standing committees of the board; the Audit and Risk Committee; People and Culture Committee; and the Health Safety Security and Environment (HSSE) Committee. The board can put together ad-hoc committees such as a takeover committee (see Z’s Takeover Policy) from time to time as the board deems necessary.
The board adheres to the NZX Corporate Governance guide and the FMA Corporate Governance Handbook Principle 8 on Shareholder relations and stakeholder interests, including this investor centre which full complies with recommendation 8.1 and 8.2 for publishing clear policies and up-to-date information.
Our board is committed to working both inside and outside the boardroom. Each year the board engages in structured learning and stakeholder engagement and board members attend a wide range of activities such as Z’s safety day (including participation in “Safety Walk and Talks” throughout Z’s operations), retailer conferences and site visits.
Z’s board is committed to Z’s stands including diversity and inclusion, focusing on the best outcomes for Z. Our board has a range of age groups, backgrounds, experience, and a strong gender balance.