Climate Change Related Disclosure Report

NZX RELEASE
12 November 2021
NAPIER PORT PUBLISHES CLIMATE CHANGE RELATED
DISCLOSURE REPORT
Napier Port today publishes its inaugural Climate Change Related Disclosure Report, seeking to
provide stakeholders with an understanding of the potential financial implications of climate change
on the business.
The report has been prepared in accordance with the recommendations of the Taskforce on Climate-
related Financial Disclosures (TCFD). This year’s report sets out our governance of climate-related
risks and opportunities over a 50-year timeframe and describes our processes for identifying,
assessing and managing climate-related risks, and considers how those risks are integrated into our
overall risk management. Napier Port will review these risks at least annually to ensure they reflect
material changes.
A ‘whole of port’ climate change risk assessment was undertaken, looking at infrastructure
resilience, trade forecasting, land levels, weather conditions, emergency preparedness and habitat
modification, which identified 53 climate-related risks and opportunities.

Impacts identified as most material to Napier Port
Physical Risks (in particular due to our coastal location and susceptibility to sea-level rise):
• Increase in sea level, leading to inundation
• Extreme rainfall events, affecting our storm-water system
• Erosion, particularly shingle movement during swell events
• Drought, particularly its impact on our meat and horticulture customers
Transition Risks (risks and opportunities from transitioning to a lower-emission global economy):
• Government regulation regarding a shift to the low-carbon economy resulting in higher fuel
costs
• Government regulation to encourage the shift to alternative fuels
• Shipping, particularly ship to shore power connecting to a ‘green’ grid
• Rail, as a material increase in use would require changes to our operations and infrastructure.
At this stage, we do not consider that the effects of climate change materially change our overall
strategy as:
• Sustainability is embedded into our ways of working
• Asset management plans and our infrastructure masterplan address larger financial
infrastructure improvements over the medium to long-term

• We are completing more detailed investigations of physical climate-change effects and will
then include mitigations of these into our Master Planning and procurement processes as they
are reviewed and updated.
Greenhouse Gas Emissions
We have undertaken further work on defining our greenhouses gas emissions inventory to enable a
better understanding of our emissions profile. We have reported on our Scope 1, Scope 2 and limited
Scope 3 emissions for a number of years on our website and are currently improving our reporting
systems, with 2022 being the first complete year of emissions measurements using expanded Scope
3 definitions.
Our Sustainability Strategy, the Climate Change Related Disclosure Report and Master Planning are
available at www.napierport.co.nz
ENDS


For more information:

Investors Media
Kristen Lie Jo-Ann Young
Chief Financial Officer Communications Manager
DDI +64 6 833 4405 DD: 06 833 4521
E: kristenl@napierport.co.nz E: jo-anny@napierport.co.nz


About Napier Port
Napier Port is New Zealand’s fourth largest port by container volume. We are the main gateway for
Hawke’s Bay exports and operate a long-term regional infrastructure asset that supports the regional
economy. Our strategic purpose is to collaborate with the people and organisations that have a stake
in helping our region grow. View Napier Port’s investor centre: www.napierport.co.nz/investor-
centre/

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CLIMATE
CHANGE RELATED
DISCLOSURE REPORT
NOVEMBER 2021

CONTENTS
GOVERNANCE 2
RISK MANAGEMENT 4
STRATEGY 6
METRICS AND TARGETS 12
THIS REPORT IS PREPARED IN ACCORDANCE WITH THE
RECOMMENDATIONS OF THE TASKFORCE ON CLIMATE-RELATED
FINANCIAL DISCLOSURES (TCFD).

INTRODUCTION
This is the initial report produced by Napier Port Holdings Limited (Napier Port)
which seeks to provide stakeholders an understanding of the potential financial
implications of climate change on its business.
Napier Port’s sustainability journey is one of continuous improvement and the
people of Napier Port are committed to improving its environmental, social
and economic performance by identifying and managing risks and finding
opportunities to use our resources more efficiently.
Napier Port expects to further develop and improve its climate change related
disclosures as we gather more information and knowledge, and continue
to deliver our sustainability goals and strategy. In particular, we have prioritised
the development of emission targets and measurement.
TABLE OF CONTENTS
1. GOVERNANCE
2. RISK MANAGEMENT
3. STRATEGY
4. METRICS AND TARGETS
DISCLAIMER: Quantifications in this report of financial impacts of climate
change are estimates only and are not intended to constitute earnings
guidance. No representation is made as to their accuracy, completeness or
reliability. These risks and opportunities may not eventuate and if they do the
actual impact may differ materially from these estimates. Other material risks
and opportunities may exist or eventuate that are not included within this report.
CLIMATE CHANGE RELATED DISCLOSURE REPORT • NOVEMBER 2021 / 1

1. GOVERNANCE
TCFD REQUIREMENTS:
• DESCRIBE THE BOARD’S OVERSIGHT OF CLIMATE-RELATED
RISKS AND OPPORTUNITIES
• DESCRIBE MANAGEMENT’S ROLE IN ASSESSING AND MANAGING
CLIMATE-RELATED RISKS AND OPPORTUNITIES
The Napier Port Board of Directors is ultimately responsible for identifying the
principal risks faced by Napier Port and taking reasonable steps to ensure that
appropriate internal controls and monitoring systems are in place to manage
and, to the extent reasonably possible, reduce the impact of these risks,
including material climate-related risks. The Board reviews Napier Port’s Risk
Management Policy annually.
The Audit and Risk Management Committee supports the Board in this
function by ensuring that management is implementing Napier Port’s overall risk
management framework and policy and monitoring corporate risk assessments
and internal controls implemented. The Audit and Risk Management Committee
reviews Napier Port’s overall risk management framework on a six-monthly basis
and the committee proceedings are reported back to the Board.
The Sustainability Committee reviews a separate climate-related risk register
specifically for the management of climate-related risks. This is part of
the Sustainability Committee’s wider role to identify and consider relevant
environmental, social and governance (ESG) matters to provide strategic
guidance and feedback to the Board and management on Napier Port’s ESG
related strategies, policies, frameworks, initiatives, performance and reporting.
The Sustainability Committee meets at least three times per year to review
progress on the implementation of Napier Port’s sustainability strategy,
including the assessment of climate-related risks and actions, and the
committee proceedings are reported back to the Board.
The Chief Executive and senior management team are responsible for ensuring
that risks to the business, including climate-related risks, are identified
and evaluated, effective responses and control activities developed, and
appropriate monitoring and timely re-evaluation conducted, in accordance with
Napier Port’s Risk Management Policy. The General Manager – Infrastructure
Services has overall responsibility for the development and implementation of
the sustainability strategy, including assessment of climate-related risks, and
reports on progress to the Sustainability Committee.
The different levels of responsibilities and the supporting Risk Management
Policy that governs the management of climate-related risks at Napier Port
are illustrated in figure 1.
2 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

FIGURE 1. GOVERNANCE OF CLIMATE-RELATED RISKS AT NAPIER PORT
RISK MANAGEMENT POLICY
• Provides the overarching framework for identifying,
assessing, managing and monitoring risk at Napier Port,
including climate-related risks.
• Objectives of the policy include ensuring that Napier Port
operates in a sustainable manner and protects the Port
environment in accordance with its sustainability strategy.
BOARD OF DIRECTORS
• The Board is ultimately responsible for identifying
the principal risks faced by Napier Port and taking
reasonable steps designed to ensure that appropriate
internal controls and monitoring systems are in place to
manage and, to the extent possible, reduce the impact
of these risks, including material climate-related risks.
• The Board receives reports and recommendations from,
and has access to management reports provided to, the
Audit and Risk Management Committee, in relation to
Napier Port’s overall risk management framework, and
reviews the Risk Management Policy annually.
• The Board is also responsible for setting the strategic
direction of Napier Port. This includes ensuring that the
environmental, social and governance (ESG) risks and
opportunities in Napier Port’s sustainability strategy,
including climate-related risks and opportunities, are
integrated into the Group’s long-term strategy and
investment decision making.
• The Board receives reports and recommendations from,
and has access to management reports provided to the
Sustainability Committee, and reviews the Sustainability
Committee Charter annually.
AUDIT AND RISK MANAGEMENT COMMITTEE
• Ensures that management is implementing
Napier Port’s overall risk management framework
and policy.
• Monitors corporate risk assessments and internal
controls implemented.
• Reports to the Board whether Napier Port’s
overall risk management framework and processes
are sufficient.
CHIEF EXECUTIVE AND SENIOR MANAGEMENT TEAM
• The Chief Executive and senior management team
are responsible for ensuring that risks to the business,
including climate-related risks, are identified and
evaluated, effective responses and control activities
developed, and appropriate monitoring and
timely re-evaluation conducted, in accordance
with Napier Port’s Risk Management Policy.
• The Chief Financial Officer, working with senior
management, updates Napier Port’s overall risk
management framework and reports to the Audit and
Risk Management Committee on a six-monthly basis.
• The General Manager – Infrastructure Services
has overall responsibility for the development and
implementation of the sustainability strategy, including
assessment of climate-related risks, and reports on
progress to the Sustainability Committee.
KEY STAFF TASKED WITH RISK MANAGEMENT ACTIVITIES (from Infrastructure, Finance and Operations teams)
• Provide support with identifying, monitoring and
assessing climate change risks and ensuring appropriate
management actions are taken in relation to them.
• Responsible for maintaining the safety, performance and
capability of Napier Port’s infrastructure assets and plant
and equipment over their projected economic lives.
• Maintain a 50-year property asset management plan.
SUSTAINABILITY COMMITTEE
• Makes recommendations and reports to the Board on
material ESG matters requiring governance decisions.
• Ensures the integration of ESG considerations into
business planning and strategy, risk management,
key policies, processes and culture.
• Oversees the development of Napier Port’s ESG
sustainability strategy and workplan.
• Monitors progress against the goals and actions
included in Napier Port’s sustainability strategy,
including climate-related goals and actions.
• Ensures an appropriate framework is maintained for
the management of ESG risks, including climate-
related risks and opportunities. Reviews and monitors
ESG related risk assessments and the effectiveness
of the related risk management processes.
• Oversees and reviews ESG reporting processes,
including relevant internal controls and external review
and audit processes.
CLIMATE CHANGE RELATED DISCLOSURE REPORT • NOVEMBER 2021 / 3

2. RISK MANAGEMENT
TCFD REQUIREMENTS:
• DESCRIBE THE ORGANISATION’S PROCESSES FOR IDENTIFYING AND ASSESSING
CLIMATE-RELATED RISKS
• DESCRIBE THE ORGANISATION’S PROCESSES FOR MANAGING
CLIMATE-RELATED RISKS
• DESCRIBE HOW PROCESSES FOR IDENTIFYING, ASSESSING AND MANAGING
CLIMATE-RELATED RISKS ARE INTEGRATED INTO THE ORGANISATION’S OVERALL
RISK MANAGEMENT
Napier Port’s Risk Management Policy provides the
overarching framework for identifying, assessing,
managing and monitoring risk at Napier Port, including
climate-related risks. Each Napier Port business unit
is responsible for establishing and maintaining risk
documentation to monitor and report risks that threaten
achievement of business objectives. The Chief Executive
and senior management team are responsible for ensuring
that risks to the business are identified and evaluated, that
effective responses and control activities are developed,
and appropriate monitoring and timely re-evaluation is
conducted. The Chief Financial Officer, working with
senior management, updates the Napier Port enterprise
risk register, drawing on business units’ documentation,
and reports this register to the Audit and Risk
Management Committee at least on a six monthly basis.
In addition to this process, for climate-related risks Napier
Port has benchmarked against recommendations of
the Taskforce on Climate-related Financial Disclosures
(TCFD) for identifying and assessing climate-related risks.
The Napier Port infrastructure team, supported by others
as required, are tasked with staying up-to-date with the
latest climate-related research, conducting regular risk
assessments and performing detailed climate change
analysis. The Board and Management are also continually
monitoring developments to existing and emerging
regulatory requirements related to climate change as part
of their risk assessment processes.
Envirolink, Gisborne District Council and Hawke’s Bay
Regional Council commissioned National Institute of Water
and Atmospheric Research (NIWA) to undertake a review
of climate change projections and impacts for the Tairawhiti
(Gisborne) and Hawke’s Bay regions. Napier Port has relied
on the resulting report
1
for projected changes in sea levels,
wind, temperature and extreme events, which have been
used as inputs for our risk assessments. The outputs allow us
to analyse a range of potential future scenarios and explore
the implications for Napier Port’s assets, operations, financial
plans and business model.
This report notes that future climate projections strongly
depend on estimates for future greenhouse gas
concentrations. In turn, those concentrations depend
on global greenhouse gas emissions that are driven by
factors such as economic activity, population changes,
technological advances and policies for mitigation and
sustainable resource use. This range of uncertainty was
dealt with by the Intergovernmental Panel on Climate
Change (IPCC) through consideration of ‘scenarios’
that describe concentrations of greenhouse gases in the
atmosphere. These scenarios were called Representative
Concentrations Pathways (RCPs)
2
.
4 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

Our climate-related risk assessment process considers
the RCP4.5 (1.8 degrees celsius mean increase in
global temperatures to 2100) and RCP8.5 (3.7 degrees
celsius mean increase in global temperatures to 2100)
scenarios included in this report over a 30-year time
horizon to 2050 - and 95-year time horizon to 2100.
RCP4.5 is a ‘stabilisation’ pathway (where greenhouse
gas concentrations stabilise by 2100) and RCP8.5
represents continuing high global emissions without
effective mitigation, which will lead to high greenhouse gas
emissions (a high-end pathway). The reason for choosing
these two scenarios was to present a ‘high-end’ scenario
if atmospheric greenhouse gas concentrations continue
to rise at high rates (RCP8.5) and a scenario which could
be realistic if moderate global action is taken towards
mitigating greenhouse gas emissions (RCP4.5).
Our climate-related risk management spans 50 years,
aligning with asset management and scenario-based
likelihood of risk occurring.
For climate-related risk management, we believe a 50-year
horizon is appropriate as it is aligned with the economic
lives of our infrastructure assets and Napier Port’s asset
management plan, and we have used the following
timeframes to assess the likelihood of climate-related risks
occurring under each scenario: Short-term 0-20 years;
Medium-term 20-50 years; and Long-term 50 plus years.
We regularly monitor whether climate science requires us
to reassess this approach.
In accordance with Napier Port’s Risk Management Policy,
we assess the significance of each identified climate-
related risk using a likelihood and consequence matrix.
The climate-related risk register assesses the likelihood of
risks occurring during the short-term, medium-term and
long-term timeframes outlined above, to recognise the
longer-term nature of climate-related risks. This varies from
the overall risk management framework which assesses
the likelihood of a risk occurring based on whether it is
probable to occur within the next 12 months. For both,
the consequence of the identified risk is assessed based
on the potential level of impact on our people, assets/
infrastructure, operations and systems, environment,
reputation and financial planning. Based on the likelihood
and consequence, levels of risk are categorised as either
very high, high, medium or low. This allows us to determine
the appropriate response for each issue identified.
Climate-related risks are reviewed at least annually to
ensure they reflect material changes in our knowledge,
business strategy, and operating environment.
During our 2021 financial year (FY21), using the
process described above, we completed a ‘Whole of
Port’ Climate Change Risk Assessment – looking at
infrastructure resilience, trade forecasting, land levels,
weather conditions, emergency preparedness and
habitat modification. We identified 53 climate-related
risks and opportunities. An overview of the top physical
and transition impacts are contained in our strategy
disclosures section.
CLIMATE CHANGE RELATED DISCLOSURE REPORT • NOVEMBER 2021 / 5

3. STRATEGY
TCFD REQUIREMENTS:
• DESCRIBE THE CLIMATE-RELATED RISKS AND OPPORTUNITIES THE ORGANISATION HAS IDENTIFIED
OVER THE SHORT, MEDIUM AND LONG-TERM
• DESCRIBE THE IMPACT OF CLIMATE-RELATED RISKS AND OPPORTUNITIES ON THE ORGANISATION’S
BUSINESSES, STRATEGY, AND FINANCIAL PLANNING
• DESCRIBE THE RESILIENCE OF THE ORGANISATION’S STRATEGY, TAKING INTO CONSIDERATION
DIFFERENT CLIMATE-RELATED SCENARIOS, INCLUDING A 2 DEGREE OR LOWER SCENARIO
Napier Port’s purpose is very clear: together we build a
thriving region by connecting our customers, people and
community to the world. This drives everything we do and
sets the scene for our business strategy, which provides
a robust and comprehensive direction for the future. Our
strategic goals are Customer Connection, Harnessing
Data and Technology, Networked Infrastructure and
Collaborative Partnerships, all underpinned by our Culture
of Care foundation. Sustainability is now embedded in
our foundation also and aligned with our goals to ensure
sustainable progress occurs throughout our whole
business, operations and supply chain.
Our business is exposed to climate-related risks outside our
port gate, including transport links and the impact of climate
change on our community and customers. We intend to
work collaboratively with relevant territorial authorities and
community groups, sharing information and developing
solutions, to deliver a more resilient business and region.
For Napier Port, a warmer world in 2100 consistent with
the RCP8.5 scenario would result in potential physical
impacts on our infrastructure, create uncertainties as to
how our region would be affected and be required to
adapt, and affect what our business may look like as a
result. The transition impacts of climate change caused by
strong climate action policy will also create a mix of risks
and opportunities for our business. We have identified
and assessed these risks and opportunities, undertaking
analysis of the potential impacts for our business.
Our analysis of how climate change impacts us is
undertaken out to 2100, as this time horizon aligns with
the economic lives of our core infrastructure assets.
As described in the risk management section, we have
assessed the likelihood of risks occurring over the
following timeframes: short-term (0-20 years), medium-
term (20-50 years) and long-term (50 plus years).
We have utilised two scenarios to explore the strategic
and operational implications of climate change for our
business, RCP4.5 and RCP8.5, over a 30-year time
horizon to 2050 and 95-year time horizon to 2100.
The physical and transition risks included below are
from Napier Port’s ‘Whole of Port’ Climate Change Risk
Assessment and are rated very high, in accordance with
the risk management policy and specific climate-related
timeframes noted above. This assessment is based on
the likelihood of the risk occurring (likely or almost certain)
and consequence (greater than $5 million), in at least the
RCP8.5 scenario in the medium to long-term. Under the
RCP4.5 (2 degrees or lower scenario), these risks are
also present, although they would manifest themselves
at a later date.
From the analysis undertaken, at this stage, we do not
consider that the effects of climate change materially
change our overall strategy. Sustainability will be
embedded into our ways of working as we continue
to collaborate to look after people, planet and place,
including completing the actions contained in our
sustainability strategy. The more financially material
infrastructure improvement actions are required over
the medium to long-term to ensure that we continue to
have a resilient and agile infrastructure network. Planning
to address this will be embedded within our asset
management plans and infrastructure masterplan. In the
short-term we will continue to complete more detailed
investigations of climate-related effects and ensure these
are considered in Napier Port’s Master Planning process.
We will also include climate-change effects and policy
within Napier Port’s procurement processes.
6 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

PHYSICAL RISKS
Climate change related effects result in a number of risks
to Napier Port infrastructure, in particular due to its coastal
location and susceptibility to sea level rise. Our assets are
susceptible to physical risks today, including from acute
weather and natural disaster events. Climate change
modelling indicates that higher temperatures will increase
the likelihood of extreme weather events that may affect
operations and damage infrastructure and there will be the
ongoing impacts of sea level rise which may cause erosion
and flooding.
The physical impacts of climate change considered most
material to Napier Port are described below:
INCREASE IN SEA LEVEL
One of the major and most certain consequences of
increasing concentrations of atmospheric greenhouse
gases and associated warming is the rising sea level.
The NIWA report includes projections of the approximate
years when specific sea level rise (SLR) increments will
be met. A 0.5m SLR increment is projected to be reached
by 2075 under RCP8.5 and by 2090 under RCP4.5.
A 1.0m SLR increment is projected to be reached by
2100 under RCP8.5
3
.
Based on research, inundation of certain areas of the Port
is a remote possibility today when there is the combination
of high tides, storm surge and swell events (extreme
sea levels), coupled with high rainfall. Climate change
effects, predominantly the sea level rise described above,
is projected to increase the frequency of inundation that
may cause damage or operational issues for the Port. As
an example, an extreme sea level event of 2.42m changes
from a 1/500 annual recurrence interval (ARI) to a 1/10
ARI under RCP4.5 in the short to medium-term (2040)
4
.
Potential inundation of the Port due to extreme sea levels
has been modelled under future scenarios. This modelling
shows potential areas of inundation based on extreme
sea levels and projected sea level rise under RCP4.5 and
RCP8.5 to 2040 and 2090.
A significant portion of the Port is of a sufficient elevation
and not expected to be effected by SLR induced
inundation under extreme sea levels, in particular the
container terminal, wharves and adjacent infrastructure.
There are areas of the northern log yard which have
the potential for some minor inundation even today
across the eastern side due to extreme sea level events.
This is expected to get worse under both RCP’s, minor
inundation can be reasonably expected every 5 years in
the short to medium-term (2040) under RCP4.5. In the
longer term (2090) under RCP4.5, and both the short
and long-term under RCP8.5, the level of inundation
is much more extensive across this area.
Inundation of the road to the northern log yard and several
nearby sheds are shown to be inundated due to extreme
sea levels at relatively lower ARIs in the longer-term
(2090). In the long-term the pavement in the northern log
yards will need to be raised to prevent regular flooding
with an estimated cost of $10-$15 million.
The western reclamation area is subject to inundation from
extreme sea levels even today, but this area has not been
fully developed and will be developed to design levels
sufficient to exceed future extreme sea levels arising from
climate change.
EXTREME RAINFALL EVENTS
Climate change is expected to result in an increase in
the frequency and intensity of extreme rainfall events.
The NIWA report notes that short duration rainfall events
have the largest relative increases compared with longer
duration rainfall events. Rainfall depths for 1-in-50 year
and 1-in-100 year events are projected to increase across
the greenhouse gas concentration scenarios and future
time periods
5
.
The Port has seen minor issues with storm water
management in recent years due to extreme rainfall events
that the systems were not designed for. The storm water
system will be further compromised by sea level rise
with more outlets likely to be below sea level which
impacts the system’s ability to discharge effectively
resulting in backing up of storm water. This is likely to
result in inundation if the extreme rainfall coincides with
extreme sea levels. Detailed modelling is to be completed
to better understand the system capacity both currently
and under future scenarios so appropriate plans can be
put in place. Likely options include additional drainage
networks or pumping stations.
CLIMATE CHANGE RELATED DISCLOSURE REPORT • NOVEMBER 2021 / 7

TRANSITION IMPACTS
The transition impacts of climate change caused by
strong climate action policy are also a mix of risks and
opportunities for our business.
Government regulation to encourage shift to low carbon
economy may result in:
• increased fuel costs particularly for Napier Port’s
mobile plant;
• requirements to invest in new technologies, equipment and
supporting infrastructure to move away from diesel powered
plant; and
• policies to increase the use of rail which may require
additional infrastructure investment and changes
to Napier Port’s operating model.
Opportunities may include additional revenue streams from
requirements for ships to use shore power while in Port and
opportunities to partner in the supply chain to provide low
carbon or zero emission solutions for customers.
The transition impacts considered most material
to Napier Port are:
GOVERNMENT REGULATION TO ENCOURAGE
SHIFT TO LOW CARBON ECONOMY RESULTING
IN HIGHER FUEL COSTS
Government policy may increase emissions taxes on fuel
by greater amounts to encourage the significant reduction
in emissions required to achieve net zero emissions by
2050. This will likely significantly increase diesel fuel costs
and operating costs for Napier Port which is currently
reliant on diesel fuel to power tugs, mobile harbour cranes,
and container handling equipment.
The higher fuel costs may encourage the shift to
alternative fuels throughout the region which may
ultimately reduce the fuel imported through Napier Port
and the revenue that this generates.
GOVERNMENT REGULATION TO ENCOURAGE
SHIFT TO ALTERNATIVE FUELS
Combined with the above there will almost certainly be
government regulation to ban or limit the procurement
of, and reduce the use of, diesel powered machines and
encourage the shift to machines powered by alternative
fuels (e.g. electricity, hydrogen). It is expected that import
bans will precede the outright ban of diesel equipment,
which will provide some time to adapt.
EROSION
The East Beach area of Napier Port has a history of
significant movement of shingle to the north and south
during swell events depending on swell direction. Erosion
has been managed using ad-hoc shore protection where
key infrastructure is situated, such as the Plant Services
workshop. Climate-related risks are expected to increase
erosion in this area. In the long-term a hard structure may
be required to provide long-term protection in this area
with a preliminary estimated cost of $10 - $15 million.
DROUGHT
Drought has been highlighted as one of the key risks for
Hawke’s Bay, with some of the largest increases to the
annual number of days of soil moisture deficit compared to
other parts of the country
6
. The largest impact is expected
to be in the meat industry with increased drought
frequency resulting in changes to pasture composition.
Increased droughts coupled with occasional heavy rainfall
could have major adverse effects on soil stability.
The meat industry is a significant exporter through Napier
Port and drought therefore poses a risk to revenue in the
medium term and almost certainly in the long term under
both Representative Concentrations Pathways (RCPs).
Other industries such as apples and timber are in a better
position to manage the risk of drought through various
practices, although horticulture will have an increased
reliance on water security.
8 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

Napier Port is expected to transition in a planned orderly
way with emission reduction pathways under development
as part of the wider sustainability strategy. The transition
triggers are likely to be a mix of fuel and other price
pressures, investment cycles, and equipment and
alternative energy availability and reliability.
The development of the required infrastructure is expected
to occur over a longer period and require additional
capital investment.
Napier Port currently has an Electrical Master Plan under
development which shows that electrical capacity at the
Port will likely need to more than double to meet all the
future anticipated electrical demands. The Electrical Master
Plan will provide an effective pathway to meet future
electrical demand. There are, however, numerous policy
risks which may affect the electrification programme:
• A ban on the importation of diesel equipment within a
short timeframe may result in the need to accelerate
infrastructure investment, uneconomically extending the
lifetime of plant or affecting expansion aspirations;
• An early ban in the importation of diesel equipment may
result in effective and reliable alternative low emission
options not being readily available;
• Policy that results in dramatic increase in fuel price may
result in earlier than expected move to an electric fleet.
If electrical infrastructure is not ready this may result in
higher than desired operating costs.
The decision making process for investing in low emission
versus diesel technology poses a risk when considering
the lifespan of equipment, in particular key plant with
relatively longer lifespans such as tugs and mobile harbour
cranes. Decisions today are relatively simple due to costs
and available technology and will likely be in 20 years’ time
when low emissions technology will be established and
cost effective. In the intervening period the decision making
process is more complex and where policy risk could have
a significant effect. Higher fuel costs may result in an earlier
than expected move to alternative technologies that could
result in existing equipment becoming redundant before
the end of its expected useful life.
This is not an issue where equipment can be retro-fitted
such as mobile harbour cranes or for equipment that has a
relatively low lifespan (< 10 years), but may pose an issue
for the tugs with a long remaining useful life, limited ability
to retro-fit and an established (although immature) move
to alternative technology.
Actions Napier Port are taking to mitigate these risks are
considering future fuel cost risk in equipment purchasing
and investment decisions, considering whether equipment
can be retro-fitted in investment decisions and regularly
assessing the remaining life and residual value of key
equipment as a result of climate change pressures.
SHIPPING
Global shipping is one of the largest contributors to
global emissions. Although there are proven emerging
technologies, these are generally limited to use in
environmentally sensitive areas and there is nothing on the
horizon that would indicate any significant change away
from current technologies. It is expected that the focus will
be on an incremental reduction in fuel consumption.
Ship to shore power, particularly for cruise ships and
where connected to a ‘green’ grid, may become expected
by government or the operators themselves. This would
require significant additional electrical capacity, with
the standard for cruise ships being 20 MW, more than
double the Port’s current capacity. This provides a risk if
driven by government policy, and pricing to support the
investment is not able to be achieved, but also provides
an opportunity to provide a service to customers who
demand it as part of their own sustainability goals.
Larger ships not only provide a lower cost per TEU for
their operators, they naturally have lower emissions per
TEU. Higher fuel prices or a drive to lower emissions
will likely continue to drive larger ship sizes as well as
encourage slow steaming and schedule optimisation.
Napier Port is well placed to handle future ship sizes with
the current Master Plan and 6 Wharf development, but
should continue to monitor the influence of climate change
on ship sizes.
RAIL
Notwithstanding New Zealand’s topography and lack of
rail infrastructure compared to other countries, currently
rail has significantly lower emissions per tonne compared
to road freight, and also provides other benefits, in
particular reducing the number of trucks on New Zealand’s
roads. In the short-term, a lack of national and regional
rail infrastructure is and will remain a major hindrance to
a significant step change in the use of rail. In the medium
term, it is likely that road transport will reduce their
emissions as technologies become available.
Under the long-term (50+ years), under both RCPs,
it is expected that New Zealand’s rail network will be
effectively emission free, running on alternative fuels such
as hydrogen for long haul routes or potentially a fully
electrified network, which will likely result in a significant
uptake of rail. A significant increase in cargo transported
by rail would require changes in Napier Port’s operational
layout and associated infrastructure investment.
CLIMATE CHANGE RELATED DISCLOSURE REPORT • NOVEMBER 2021 / 9

TOP PHYSICAL RISKS
RISK DRIVERS
INCREASE
IN SEA LEVEL
EXTREME
RAINFALL EVENTS
EROSIONDROUGHT
SCALEHigh to Very HighHighHigh to Very HighHigh to Very High
LIKELIHOODAlmost certainAlmost certainAlmost certainAlmost certain
TIMEFRAME
Medium to
Long-term
Long-term
Medium to
Long-term
Medium to
Long-term
FINANCIAL
IMPLICATIONS
$10-$15 millionTo be determined$10-$15 million$5 million
METHODOLOGY
• Potential financial
impact is estimated
capital expenditure
required, based
on current civil
construction costs
in today’s money.
• Potential financial
impact is estimated
capital expenditure
required, based
on current civil
construction costs
for shore protection
in today’s money.
• Potential financial
impact is an
estimate of the
annualised impact
on trade volume in
today’s dollars.
RISK MITIGATION
• Northern log yards
will need to be
re-developed to
raise the level of
pavement.
• Ensure the western
reclamation area is
developed to levels
to meet future
extreme sea levels
due to climate
change.
• Modelling of the
stormwater system
capacity under
future scenarios.
• Assess capacity
of the outer
breakwater drain
under future
scenarios and
frequency of
drain cleaning.
• Detailed
investigation and
potential design of
hard structure to
provide long-term
protection in the
East Beach area.
• Napier Port has
limited direct
control in managing
this risk. Napier Port
will keep an active
interest on potential
impacts and how
that might change
export volumes,
shipping patterns
and changes in
exports through
the regular master
planning process.
10 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

TOP TRANSITION IMPACTS
RISK DRIVERS
GOVERNMENT
REGULATION
TO ENCOURAGE
SHIFT TO LOW
CARBON ECONOMY
RESULTING IN
HIGHER FUEL COSTS
GOVERNMENT
REGULATION
TO ENCOURAGE
SHIFT TO
ALTERNATIVE
FUELS
GOVERNMENT
REGULATION
TO ENCOURAGE
INCREASED
USE OF RAIL
SCALE
High to Very HighHigh to Very HighHigh to Very High
LIKELIHOODAlmost certainAlmost certainAlmost certain
TIMEFRAME
Medium to
Long-term
Medium to
Long-term
Long-term
FINANCIAL
IMPLICATIONS
To be determined To be determined
Greater than
$10 million
METHODOLOGY
• Potential financial
impact is high-level
estimate of capital
expenditure required,
in today’s money.
RISK MITIGATION
• Ensure fuel price
escalation risk
is considered in
forecasting.
• Consider flexibility
in electrical
infrastructure
development as
part of the Electrical
Master Plan.
• Consider future
fuel cost risk
in equipment
purchasing
and investment
business cases.
• Consider equipment
that can be retro-
fitted in investment
decision making
process.
• Regularly assess
the remaining life
and residual value
of key equipment as
a result of climate
change pressures.
• Changes to Napier
Port’s operational
layout in line with
existing provisions in
the Master Plan to
increase our on-Port
rail infrastructure.
• Further
consideration of
climate change
related effects
will be included in
Napier Port’s Master
Planning process.
$
CLIMATE CHANGE RELATED DISCLOSURE REPORT • OCTOBER 2021 / 11

4. METRICS AND TARGETS
TCFD REQUIREMENTS:
• DISCLOSE THE METRICS USED BY THE ORGANISATION TO ASSESS CLIMATE-RELATED
RISKS AND OPPORTUNITIES IN LINE WITH ITS STRATEGY AND RISK MANAGEMENT PROCESS
• DISCLOSE SCOPE 1, SCOPE 2, AND, IF APPROPRIATE, SCOPE 3 GREENHOUSE GAS (GHG)
EMISSIONS, AND THE RELATED RISKS
• DESCRIBE THE TARGETS USED BY THE ORGANISATION TO MANAGE CLIMATE-RELATED
RISKS AND OPPORTUNITIES AND PERFORMANCE AGAINST TARGETS
During 2021, we focused on defining our GHG inventory
to establish a baseline and enable a better understanding
of our emissions profile, opportunities for reductions,
setting targets and measures, and reporting progress.
GREENHOUSE GAS (GHG) EMISSIONS
Napier Port has been measuring its Scope 1, 2 and limited
Scope 3 emissions for a number of years which have been
reported in the Annual Report and on the Napier Port
website. The emissions for the year ended
30 September 2021 are reported on the same basis.
In the year to 30 September 2021, our total carbon
emissions were 10,221 tonnes or 0.00174 tonnes/CO2e
carbon per tonne, up from 8,341 tonnes or 0.00165
tonnes/CO2e per carbon tonne in 2020. The increase
in emissions correlates with an increase in annual cargo
volumes, with the majority of the increase relating to
increased fuel usage for generators to keep refrigerated
containers cool while stored on port awaiting shipment. Our
peak season extended longer and refrigerated containers
resided longer on port as a consequence of global shipping
disruption. This disruption also required increased container
handling movements, increasing heavy plant activity and fuel
consumption. We expect infrastructure improvements over
time combined with new technology to enable us to contain
emissions as trade volumes increase.
0.022
0.020
0.018
0.016
0.014
0.012
0.010
0.008
0.006
0.004
0.002
0.000
201120122013201420152016
2017
20182019
20202021
FIGURE 2. CARBON EMISSIONS: TCO2E PER TONNE
12 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

FUTURE METRICS REPORTING
During 2021, we worked with an external consultant,
Bravegen, to define our GHG inventory to reflect best
practice including measuring a wider range of Scope 3
emissions. This expanded definition of our GHG
inventory will be used to determine and report
Napier Port’s emissions from our 2022 financial year,
which will be used as the base year for future comparative
measurement. This will allow a better understanding
of Napier Port’s emissions profile, where opportunities
for reductions are, set GHG targets and measures,
and report progress. It will also enable Napier Port to
participate in voluntary reporting programmes such as the
Climate Leaders Coalition. The GHG emissions sources
included in this inventory were identified with reference
to the methodology in the GHG Protocol and ISO14064-
1:2006 standards. We are also developing our systems
to record these emissions.
Under the GHG Protocol, these emissions are classified
under the following categories:
Scope 1 – Direct GHG emissions occurring from sources
that are owned or controlled by the company (e.g. fuel).
Scope 2 – Indirect GHG emissions occurring from
the generation of purchased electricity, heat and steam
consumed by the company.
Scope 3 – Emissions that occur as a consequence
of the company’s activities, but from sources not owned
or controlled by the company. These have been further
categorised using the Scope 3 standard categories:
• Purchased goods and services (category 1);
• Capital goods (category 2);
• Fuel and energy-related activities not included
in Scope 1or 2 (category 3);
• Upstream transportation and distribution (category 4);
• Waste generated in operations (category 5);
• Business travel (category 6);
• Employee commuting (category 7);
• Downstream leased assets (category 13);
• Investments (category 15).
Additional Scope 3 categories will not be reported where
they are not relevant to our business. We have defined
how emissions for Scope 1, 2 and 3 emissions will be
sourced, and documented any emission sources that will
be excluded from the inventory.
Our annual emissions inventories will be publicly reported.
Once we have collected our data using the expanded
definitions for the first full year we intend to seek external
assurance of our emissions reporting.
SETTING TARGETS –
DE-CARBONISING NAPIER PORT
Napier Port has a number of de-carbonisation initiatives
currently underway, aligning with the goal of reducing our
carbon footprint:
• 3 electric vehicles introduced;
• 9 LED floodlight towers installed;
• At least 50% air travel reduction, offsetting emissions for
domestic air travel;
• Investigating electrification of Napier Port’s tugs, cranes
and forklifts.
Our sustainability strategy includes a future action for
Napier Port to develop and adopt a climate change
strategy to support Napier Port’s goal of zero net
emissions by 2050. This will review areas such as
transport, energy, land use, buildings, infrastructure
and education and devise action plans to support the
achievement of our goal. We will report progress on the
development of our climate change strategy as part
of reporting on our 2022 financial year.
Napier Port’s Sustainability Strategy and Action Plan
is available on our website at:
www.napierport.co.nz/wp-content/
uploads/2021/08/Napier-Port-Sustainability-
Strategy-and-Action-Plan.pdf
CLIMATE CHANGE RELATED DISCLOSURE REPORT • NOVEMBER 2021 / 13

REFERENCES:
1. Climate change projections and impacts for Tairawhiti
and Hawke’s Bay – Prepared for Envirolink, Gisborne District Council
and Hawke’s Bay Regional Council – November 2020;
2. 2013 IPCC Fifth Assessment Report.
3. Climate change projections and impacts for Tairawhiti
and Hawke’s Bay – Prepared for Envirolink, Gisborne District Council
and Hawke’s Bay Regional Council – November 2020 (page 35).
4. Climate change projections and impacts for Tairawhiti
and Hawke’s Bay – Prepared for Envirolink, Gisborne District Council
and Hawke’s Bay Regional Council – November 2020 (page 16).
5. Climate change projections and impacts for Tairawhiti
and Hawke’s Bay – Prepared for Envirolink, Gisborne District Council
and Hawke’s Bay Regional Council – November 2020 (page 14).
6. Climate change projections and impacts for Tairawhiti
and Hawke’s Bay – Prepared for Envirolink, Gisborne District Council
and Hawke’s Bay Regional Council – November 2020 (page 15).
14 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

CLIMATE CHANGE RELATED DISCLOSURE REPORT • NOVEMBER 2021 / 15

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