Channel Infrastructure releases 2022 Sustainability Report

Delivering a
sustainable future
Sustainability
Report
2022

Welcome to this report
Our reporting
Channel Infrastructure NZ Limited (Channel Infrastructure)
is pr
oud to present the company’s 2022 environmental,
social, and governance (ESG) disclosures, which comprise
this Sustainability Report (report), the 2022 Annual
Report, and its Governance Statement. These documents
form an integrated suite of reports and should be read
in conjunction with each other, and where possible, we
have drawn links between each. They are all available
for download at: www.channelnz.com, alongside several
underlying documents and policies referred to throughout
this report.
In this report, references to “Channel”, “Channel
Infr
astructure”, the “Company”, the “Group”, “we”, “us”
and “our” refer to Channel Infrastructure NZ Limited (NZX:
CHI), unless otherwise stated. All dollar figures are in New
Zealand (NZ) dollars unless otherwise stated.
This report
This Sustainability Report builds on our 2021 report, and
pr
ovides an updated overview of our approach, progress
and performance in relation to Channel Infrastructure’s
most material ESG issues. This report is provided for
the benefit of all our stakeholders as a clear and
concise summary of Channel Infrastructure’s sustainability
performance during the reporting period and our
objectives for the year ahead. This report discloses
performance information that reflects the continuing
oper
ations of the fuels import terminal business for the
nine months ended 31 December 2022 and the refinery
operations for the three months ended 31 March 2022. 
The data presented in this report is unaudited, however,
in the cas
e of refinery Scope 1 and 2 emissions, is
subject to review by the Ministry of Environment under our
Negotiated Greenhouse Agreement
1
. This Sustainability
Report also contains forward-looking information, or
forward-looking statements.  Please see “Forward-
looking Information”, Appendix 6 of this report.
This report has been prepared in consideration of
r
elevant climate and ESG reporting standards, including
the TCFD recommendations and the Global Reporting
Initiative Standard (GRI): Core Option (which the
Company has reported against since 2017). It is
also prepared in compliance with the NZX Corporate
Governance Code and ESG Guidance Note (refer to
www.nzx.com).  In addition, we have also referenced
specific United Nations' Sustainable Development Goals
(SDGs) (refer to Appendix 5) where appropriate to
acknowledge our global partnership in addressing
sustainability and climate change concerns.
Directors' statement
The Directors are pleased to present Channel
Infr
astructure NZ Limited’s Sustainability Report for the
year ended 31 December 2022. This report is dated
23 February 2023 and is signed on behalf of the Board by:
JB Miller 
Chair of the Board     
P Zealand
Chair, HSEO Committee
Feedback
We are committed to continuous improvement of our ESG reporting practices and value our stakeholders'
per
spectives. We welcome feedback on this report and our performance. To do so, please email us
at investorrelations@channelnz.com.
1
The Negotiated Greenhouse Agreement concluded following the cessation of refining activities at the end of Q1/2022.
2
Channel Infrastructure NZ Limited | Delivering a sustainable future

Contents
Introduction
6
About us7
Performance highlights10
Message from our Board12
Industry overview15
Climate change statement18
Governance
20
Board of Directors21
Our NZX Obligations 24
Our reporting
structure25
Strategy
28
Strategic framework29
What sustainability means to us37
Roadmap for our mahi in New Zealand’s
energy transition
38
Risk Management
40
Reporting on risk41
Engaging with our key stakeholders43
Identifying our most material
sustainability issues
47
Identifying our climate risks and opportunities51
Our 2022 Performance
56
Health, safety and wellbeing57
Personal health, safety and wellbeing58
Operational safety61
Environmental performance64
Atmosphere and climate change66
Land, waste and water68
Diversity, equity, and inclusion72
Diversity and engagement73
Workforce transition75
Culture and partnerships78
Partnering with our local iwi and
mana whenua
79
Working within our local communities81
Appendices
82
Appendix 1:
Definitions and Abbreviations83
Appendix 2: Summary data tables84
Appendix 3: GRI disclosure index86
Appendix 4: TCFD alignment disclosure index88
Appendix 5: UN Sustainable
Development Goals
89
Appendix 6: Forward-looking statements90
Directory91
3
Channel Infrastructure NZ Limited | Delivering a sustainable future

Marsden Point
Import Terminal
4
Channel Infrastructure NZ Limited | Delivering a sustainable future

Keeping the economy of
Aotearoa moving through
an era of change
5
Channel Infrastructure NZ Limited | Delivering a sustainable future

Introduction
6
Channel Infrastructure NZ Limited | Delivering a sustainable future

About us
Channel Infrastructure is New Zealand’s leading fuel
infr
astructure company.
Channel Infrastructure owns and operates critical fuels'
infr
astructure supplying the Northland and Auckland
markets, which make up 40 per cent of New Zealand’s
transport fuel demand, and all of the jet fuel to Auckland
International Airport. Our import terminal system handles
between 3.3 and 3.6 billion litres of transport fuels
each year.
Utilising the deep-water harbour, our jetty infrastructure,
2
80 million litres of storage capacity at Marsden Point,
and the 170-kilometre pipeline from Marsden Point
to Auckland, we receive, store, test and distribute
transport fuels owned by our customers. Channel
Infrastructure’s wholly-owned subsidiary, Independent
Petroleum Laboratory Limited, provides fuel quality
testing services at Marsden Point, around New Zealand,
and in the South West Pacific.
For further information on the critical role that Channel
Infr
astructure plays in the NZ fuels' supply chain, please
refer to the About Us section of the 2022 Annual Report,
available at: www.channelnz.com.
Our purpose is to deliver infrastructure to sustainably
mee
t New Zealand’s transport energy needs and
our vision is to be New Zealand’s leading fuel
infrastructure company.
We are here to keep New Zealand’s economy moving
thr
ough an era of change, and as New Zealand moves
towards a lower-carbon future, our infrastructure will
be essential as New Zealand’s fuel and energy needs
evolve.  On pages 29-39 of this report we discuss our
strategy and strategic priorities in more detail.  
7
Channel Infrastructure NZ Limited | Delivering a sustainable future

PRODUCTS IMPORTED BY
CUSTOMERS
40%
OF NZ'S TRANSPORT
FUEL DEMAND
MARSDEN TRUCK
LOADING FACILITY
*
MARSDEN POINT TO
AUCKLAND PIPELINE
WIRI TERMINAL
*
JET, PETROL AND DIESEL
SUPPLY INTO AUCKLAND
PETROL AND DIESEL SUPPLY
INTO NORTHLAND
*Not included in Channel
Infrastructure import
terminal system
Figure 1: About Us
8
Channel Infrastructure NZ Limited | Delivering a sustainable future

9
Channel Infrastructure NZ Limited | Delivering a sustainable future

SAFELY
TRANSITIONED
from refining to import
terminal operations
from 1 April
>98%
REDUCTION
in Scope 1&2
emissions following
refinery closure
>1
MILLION TONNES
CO2 per annum
78%
REDUCTION
in water consumption
following refinery
closure
30%
REDUCTION
in the extent of legacy
groundwater contamination
in the last 6 years
641
MILLION LITRES
of water saved
Performance
highlights
10
Channel Infrastructure NZ Limited | Delivering a sustainable future

>1,255
TONNES
of metals sent for reuse
23%
FEMALE
(up from 18%
in 2021)
36%
of women in
leadership
positions
DIVERSE WORKFORCE
97%
of employees impacted by
transition in new roles or
retraining within 6 months
$29
MILLION
paid to employees
in redundancy and
entitlement benefits
11
Channel Infrastructure NZ Limited | Delivering a sustainable future

Message from
our Board
It is with great pleasure that Channel Infrastructure presents
t
he second Sustainability Report for our business, 'Delivering a
Sustainable Future'.  
Our
first report, ‘Our Transition to a Sustainable Future’,
was deliberately the very first action we took as a
new company, following our transition from Refining NZ
to Channel Infrastructure.  We wanted to demonstrate
a commitment to the role our business will play
in supporting New Zealand’s energy transition to a
decarbonised future.
Sustainable communities with a
ju
st transition
The decision to change our business was made as
w
e sought to reset the financial and operational risk
profile of our business. However, the emphasis throughout
was, and continues to be, ensuring that the transition
is delivered in a way that is fair and equitable for our
people, and community, and protects the environment
that surrounds us.
As our company made the transition to a fuels import
t
erminal, we followed in the footsteps of many other
refineries around the world.  However, we have been
committed to executing our transition in a way that
would set us apart.  Our priority has always been to
play our par
t in ensuring a just transition that builds and
supports sustainable communities.  That is why, in last
year’s report, we set ourselves the ambitious target to
have at least 90 per cent of those employees impacted
by the change supported into their next opportunity,
within s
ix months of leaving our business.
It is a source of great pride for all of us, that we not
only achie
ved this target, but have surpassed it – and
in this report, we are thrilled to confirm that 97 per
cent of those members of our team who left us last
year, found their next opportunity within six months of
their departure.  The majority of those have remained
in Northland, which is a testament to the efforts of our
wider network, and we want to thank all of those who
have walked alongside us on this journey, for your help
and support and for recognising the talent that we have
at Marsden Point. With our workforce changes largely
complete, we are now focused on continuing to build
the capability of our people so they are ready to meet
the future business challenges and opportunities that are
now in front of us.
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Channel Infrastructure NZ Limited | Delivering a sustainable future

Maintaining our commitment to
he
alth, safety, and protecting
our environment
At the same time as undergoing a
significant change,
our focus on health and safety has never wavered,
and we are proud that our world class team were able
to complete the significant works to safely shutdown
the refinery plant and equipment, and transition to a
fuels import terminal, without supply disruption from our
facilities, on time and on budget.
As the decommissioning project continues, we are
s
trongly focused on minimising our environmental
impact, and that includes a significant focus on
waste management and recycling or reusing much
of the equipment that has been removed from the
decommissioned refinery; we have sent over 1,255 tonnes
of metals to be recycled so far, and we have a team
working on identifying repurposing opportunities for the
equipment that is not needed in the future business. 
Our commitment to the environment that surrounds us
r
emains unchanged, after all, for the team based at
Marsden Point it is their community and home too.  We
have strict environmental protections in place, reinforced
by our 35-year resource consent to operate, and we
work hard, alongside our iwi partners to improve the
unique environment that surrounds us.  We also continue
to work hard to clean up the legacy groundwater
contamination at our site, which is an issue we have
known about and have been working hard to fix, for
a number of years.  We are committed to fixing this
problem, and we have allocated funding as part of our
ongoing costs to continue this important work and ensure
that the groundwater that leaves our site remains free
of hydrocarbons.
Building resilience for a sustainable
s
upply chain
With New Zealand’s import supply chain, we know that
r
esilience comes from our domestic capacity to identify
and deal with supply chain disruptions, and we are
committed to supporting our customers, and the New
Zealand Government, with their efforts to provide a
resilient fuel supply chain for New Zealand. 
In late December, rigorous testing processes at Marsden
P
oint identified an off-specification jet import cargo and
ensured this fuel was not distributed further along the
supply chain. This incident highlighted the importance
of there being minimum stocks in country at any time
to provide an adequate buffer to potential supply
disruptions. We continue to work with our customers and
Government on steps to improve supply chain resilience.
Our role in supporting New
Z
ealand’s decarbonisation
We know that the world is warming and that carbon
emis
sions from human activity, including transport, are
contributing to this.  Governments around the world
are reacting to the call from citizens to do more, and
businesses will also need to play their part.  With the
closure of our refinery, we have reduced our site emissions
by over 98 per cent (or more than 1 million tonnes of CO
2
per annum), which has contributed to the Government's
first emissions reduction budget.
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Channel Infrastructure NZ Limited | Delivering a sustainable future

We have also seen an almost 90 per cent reduction in
electricit
y use, and we no longer require any natural gas
at Marsden Point, which will contribute to lower demand
for thermal generated electricity, particularly coal-fired
electricity generation in New Zealand.
The jetty facilities and fuel storage we have at Marsden
P
oint are the largest facilities of their kind in New Zealand,
and we are the only terminal capable of handling the
larger LR2 size fuel tankers, offering freight and emissions
savings for our customers.  Through Marsden Point, our
company has long been delivering fuel to New Zealand’s
largest population centre, Auckland, via the Marsden
Point to Auckland Pipeline, at one tenth of the emissions
of the equivalent delivery of fuel via road.
1
The new, long-term sustainable business model is now
in place
, and the company is focused on pursuing
the growth opportunities that will come from our
role as a critical infrastructure provider.  With more
clarity around the COVID-19 recovery, late last year
Channel Infrastructure sought to update its fuel demand
outlooks, drawing on the latest industry and Government
policy developments.  Updated outlook detail, released
t
oday, and available in more detail on pages 34-36,
underlines the importance of Channel’s infrastructure in
the New Zealand fuel supply chain.  The throughput of
our facilities will change over time to meet changing
consumer demands, with the shift to electric vehicles,
biofuels and continuing growth in aviation.  What
this outlook shows us is a clear path for long-term
utilisation of Channel’s jetties, tanks, and pipeline direct
to Auckland to supply increasingly renewable jet fuel and
diesel to Auckland and Northland, long in the future.  
With the transition of our business, Channel
Infr
astructure’s customers can already access lower
emissions fuel from overseas markets. In late 2022, we
welcomed New Zealand’s first delivery of Sustainable
Aviation Fuel (SAF) into Marsden Point, for delivery to
Auckland International Airport via our pipeline. SAF is
the only viable alternative for decarbonising long-haul
aviation, and as a ‘drop-in fuel’, is able to utilise all of the
existing tanks, pipelines and other infrastructure.
 
Longer term, we are working hard on repurposing
oppor
tunities for our Marsden Point site.  This includes
our ongoing work with Fortescue Future Industries (FFI) on
the next phase of the hydrogen study investigating the
potential for e-SAF production at Marsden Point which
we expect to complete this year.
Delivering on our sustainable future
Our business has undergone transformational change
in the pas
t year, to set it on a path for a long-
term sustainable future. However, we know we are only
at the beginning of New Zealand’s energy transition
journey.  Channel Infrastructure has a central role to play
to support the transition to lower-carbon transport fuels,
while keeping transport energy affordable and available
to everyone when they need it. We want to utilise what
we have, including our dedicated and knowledgeable
team, to contribute to the global solution which is not
only good for our business, and our community, but for all
of New Zealand.
 
1
Based on NZ Electricity Emissions Factor of 0.537 tCO
2
e/MWh for pumping operations, and diesel full lifecycle emissions factor of 3.61kg CO
2
/L
We want to utilise what we
have to contribute to the global
solution which is not only good
for our business, and our
community, but for all of
New Zealand
. 
14
Channel Infrastructure NZ Limited | Delivering a sustainable future

Industry
overview
Channel Infrastructure, as a critical part of New Zealand’s fuels
s
upply chain, is operating within an industry that is undergoing
significant change, both in response to changing consumer
demands, and the evolving legislative environment. 
At the same time, there is growing pressure on all New
Z
ealanders to minimise their environmental impact as the
world grapples with the ambitions of the international
community to reach the common goal that we all
share, of limiting the impacts of global warming. Our
organisation acknowledges the important part we play
both within our local community at Marsden Point,
Northland, and in the transition of New Zealand to a low
carbon economy.
Strategic Review
In 2020 our company initiated a comprehensive Strategic
R
eview to determine the optimal business model
and capital structure to maximise shareholder returns
and deliver secure, competitive fuel supply to New
Zealand.  The Refining NZ business model was no longer
sustainable, and nor was it going to allow us to respond
to the increasing exposure of the company to a suite of
climate transition risks. 
The shareholder-endorsed outcome of the Strategic
R
eview, which necessitated deep, strategic consideration
of the climate change-related risks and opportunities
associated with our future business model, was based
on several fundamental drivers beyond the period of
historically low refining margins that the company faced.
These included:
• Growing exposure to compliance costs under the New
Zealand Emissions Trading Scheme (NZ ETS)
• Changing consumer behaviour, with the
electrification
of light vehicles forecast to reduce New Zealand
petrol demand below the minimum level produced by
the refinery
• Structural challenges to the competitiveness of the
refinery
compared to newer larger Asian refineries and
high costs of operating in New Zealand (including high
electricity, gas and carbon costs)
• Positioning the company to participate in
emer
ging opportunities as the New Zealand energy
market decarbonises.
2022 has been about delivering on the outcomes of
the S
trategic Review, and positioning our business to
maximise the opportunities that we have ahead of us. 
15
Channel Infrastructure NZ Limited | Delivering a sustainable future

Transport fuel demand outlook
Our fuel demand outlook, prepared by industry experts
Hale & T
womey and updated this year to reflect the
latest industry and Government policy developments,
provides a guide for our future business decisions.
The preparation of this updated outlook has involved
more detailed analysis than ever before, using expert
passenger demand forecasts from Auckland International
Airport to forecast future jet fuel demand, forecasting
diesel demand sector by sector to take account of
different fuel transition pathways by sector and for
the first time including biofuel demand forecasts for
New Zealand.
There are a range of potential market scenarios,
ho
wever, most scenarios (including Hale & Twomey's
updated outlook outlined on pages 34-36) agree that
electrification of transport and a wider use of biofuels will
result in petrol demand peaking, and starting to decline
in the near term.  Diesel will transition more slowly, with
a gr
adual increase in biofuels and the electrification of
light commercial vehicles and buses, and the transition
of heavy transport to electric and hydrogen expected to
take longer.
Aviation demand is expected to exhibit continued
gr
owth, and our latest outlook shows a faster post-
COVID demand recovery and higher demand over the
longer term, as the ‘middle-class’ in Asia continues to
grow and the trend to ultra-long haul flights increases
the fuel required for flights leaving New Zealand. The
decarbonisation of the aviation industry is expected to
largely be driven by the gradual substitution of petroleum
jet fuel with Sustainable Aviation Fuel (SAF).
SAF, as well as other second-generation renewable fuels,
s
uch as biodiesel, are drop-in fuels and can be handled
by Channel’s existing infrastructure. These changes mean
that over time, the volume of renewable fuels being
handled through Channel’s infrastructure will continue
to grow and make up an increasing proportion of
our throughput. 
These forecasts align with New Zealand’s first carbon
budge
ts adopted in May 2022 and Government policy
developments in the past year including those to
incentivise greater uptake of electric vehicles.  
Working alongside our customers
t
o support changing transport
fuel needs
Channel Infrastructure recognises its responsibility to
enable decarbonis
ation within the fuels' supply chain,
both within and beyond our operations, by utilising its
infrastructure to support a transition in New Zealand’s
transport sector.  Our ambition is to keep Aotearoa
moving towards a greener future, while at the same
time keeping fuel affordable and available when it is
needed.  We are committed to utilising the full potential
of our infrastructure and the Marsden Point site to
solve this energy trilemma and support New Zealand’s
decarbonisation efforts. 
For our business, we have already started to respond -
in the mo
st significant way possible – by undertaking our
Strategic Review and subsequently taking the decision to
completely reset our core business, and transform into a
new company with a new, but equally important role to
play in the fuels' supply chain.
 
As a key part of the transport fuels' supply chain
int
o New Zealand’s largest market (Auckland), Channel
Infrastructure’s import terminal infrastructure is well
placed to support the increasing volumes of low-carbon
transport fuels that will be needed to keep New Zealand
moving in the future, while also supporting our customers,
bp, Mobil, and Z Energy, to meet changing consumer
demand and our shared emission's reduction targets.
The transition to a fuels import terminal has already
pr
ovided our customers with options to source alternative
fuels and to lower their Scope 3 emissions, with the first
shipment of SAF received through our facilities in 2022. 
Our Marsden Point infrastructure will be able to support
incr
easing imports of lower-carbon biofuels, and the
Marsden Point to Auckland pipeline, which can transport
second-generation biofuels including SAF, can deliver
these fuels to market at one-tenth of the emissions of
equivalent transport by road.
16
Channel Infrastructure NZ Limited | Delivering a sustainable future

Expanding the Marsden
Point terminal
• NZ Government 70mL
domestic diesel reserve
• Minimum domestic
stockholding obligation
• Biofuel imports
• Other products
Long-term
renewable
electricity supply
Maranga Ra solar
project
Growth in
other terminal
infrastructure
Sustainable
aviation fuel
Hydrogen
TO DAY
Jet fuel
Diesel
Petrol
Marine fuel
FUTURE
Jet fuel
Diesel
Petrol
Marine fuel
Sustainable aviation fuel
Renewable gasoline
Renewable diesel
Hydrogen
Renewable electricity
New Zealand's Ministry of Business, Innovation and
Emplo
yment (MBIE) and Air New Zealand are currently
partnering to explore options for the production of
Sustainable Aviation Fuel (SAF) in New Zealand and Air
New Zealand has set a 10 per cent target for SAF
use by 2030. Channel Infrastructure is working with
Fortescue Future Industries (FFI) exploring the potential
for production of e-SAF at Marsden Point from green
hydrogen. Results of the scoping study are anticipated
this year.
Marsden Point is the ideal location for the supply of SAF
at s
cale in New Zealand, with its supply chain connection
to Auckland International Airport which consumes 80
per cent of New Zealand's jet fuel demand. SAF could
take the form of bio-SAF, derived from biogenic material
like wood residues, or e-SAF, produced by combining
green hydrogen and carbon dioxide. Availability of large
quantities of feedstocks is likely to limit the production
of bio-SAF, and e-SAF will be required to replace the
existing sources of jet fuel.
Figure 2: Future Growth Opportunities
Future Growth Opportunities
Channel Infrastructure sees exciting opportunities to
gr
ow and diversify while at the same time, contributing
to New Zealand’s wider decarbonisation ambitions.  A
growing range of transport fuels and energy choices
requires infrastructure to support more renewable, secure
energy transport.
17
Channel Infrastructure NZ Limited | Delivering a sustainable future

Climate change statement
Our Position
Channel Infrastructure is committed to doing its part to
align with the P
aris Agreement target to keep warming
well below 2 degrees and to pursue efforts to limit the
temperature increase to 1.5 degrees. This commitment
reflects the latest science and is aligned with the New
Zealand Government’s ambitions in the Zero Carbon Act,
which itself informs our local operating environment.
We recognise that fuel and the transport sector
significantly
contribute to climate change.
Climate change will impact our company, the local
communit
y, New Zealand and the planet, including
through rising sea levels, temperature change and
unpredictable weather patterns. Climate change
presents operational and financial risks to the company,
as well as opportunities.
Our Approach
Our approach to climate change considers both the
ris
ks and opportunities arising from climate change and
the necessary transition to a low carbon economy. We
consider these activities to be core to our business as
part of our strategic objective to deliver continued value
to our shareholders and our customers.
Our role is to keep Aotearoa New Zealand moving. We
belie
ve infrastructure has a critical role to play in finding
solutions which deliver low-carbon transport energy
which is affordable and available when we need it.
We will seek to reduce our carbon footprint, build
r
esilience to the physical and transition risks related
to climate change, and contribute responsibly to the
achievement of New Zealand’s decarbonisation goals.
We will also seek to utilise our strategic infrastructure
to support others, particularly through innovation in the
energy and fuels sector, to reduce carbon emissions.
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Channel Infrastructure NZ Limited | Delivering a sustainable future

Our Commitments
Channel Infrastructure is committed to:
• Identifying, assessing and managing material physical
and tr
ansition related climate driven risks to the long-
term sustainability of our business;
• Setting and publishing meaningful short, medium
and long-
term targets to encourage innovation and
drive reductions in our Scope 1 and 2 greenhouse
gas emissions;
• Exploring opportunities to reduce customer Scope 3
emis
sions and contribute to the decarbonisation of
the New Zealand transport sector by enabling the
supply of low-carbon fuels and zero-carbon fuels to
New Zealand;
• Working with customers, suppliers, Government, and
our local communit
y on a just transition to a low-
carbon economy; and
• Annually reporting on our climate approach,
pr
ogress and performance in alignment with the
recommendations of the Task Force on Climate-
related Financial Disclosures (TCFD).
Ongoing review
The Board commits to annually reviewing this Climate
Change Position Statement and the company’s
performance in delivering on the commitments in
this Statement.
Our role is to keep Aotearoa
New Zealand moving. We
believe infrastructure has
a critical role to play in finding
solutions which deliver low-
carbon transport energy which
is
affordable and available
when we need it.
19
Channel Infrastructure NZ Limited | Delivering a sustainable future

Governance
20
Channel Infrastructure NZ Limited | Delivering a sustainable future

Board of Directors
Channel Infrastructure takes its role as a responsible operator
s
eriously. We have a number of sustainability governance
measures and structures in place in order to ensure that we
identify, manage and respond to environmental, social and
governance issues effectively, and that we can continue to
operate in a sustainable and responsible manner.
Channel Infrastructure’s Corporate Governance
fr
amework, as depicted in Figure 3, sets out our
governance practices and processes to provide
accountability to our diverse range of stakeholders,
including on the environmental, social, and governance
aspects of sustainability.
The Board is responsible for setting the Company’s
s
trategic direction and for providing oversight of the
management of the Company, with the aim of increasing
shareholder value and ensuring the obligations of the
Company are properly met. This includes the Company’s
full scope of sustainability impacts identified as material
in Figure 15 on page 48, including climate change risks
and related matters, and any impacts identified as
material in the future. Day-to-day management of the
Company is delegated to the Chief Executive Officer.
The Board uses committees to address
specific issues
which require detailed consideration by members of the
Board who have specialist knowledge and experience.
The Board retains ultimate responsibility for the functions
of its committees and determines their responsibilities.
As outlined in the Risk Management section of this report,
the Boar
d is responsible for reviewing and managing risks,
with a number of briefings on specific sustainability risks
each year.  As an example, during 2022, the Board was
briefed on a number of climate-related matters, including
the FFI hydrogen study, the Company’s electricity RFI,
Government policies including the Sustainable Biofuels
Obligation and Onshore Fuel Stockholding measures,
and the new demand forecasts prepared by Hale &
Twomey as outlined on pages 34-36 of this report.
This included discussion of fuel demand outlooks under
various climate policy and technology scenarios, options
to decarbonise electricity supply, and the potential role
of low-carbon fuels in the Company’s future plans. 
Governance of Sustainability
(including Climat
e Change)
The direction and oversight of sustainability is delegated
t
o four sub-committees according to relevance of topic.
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Channel Infrastructure NZ Limited | Delivering a sustainable future

The Board
Is responsible for overseeing the performance and operations of the Company
Board Committees
Assist the Board to discharge its responsibilities in relation to
Approves CHl’s:
• Code of conduct
and monitors
performance in
line with the code
of conduct
• Sustainability
strategy including
aspirations and
targets and guides
sustainability
performance
and response to
evolving stakeholder
expectations
• Regularly monitors
progress of
implementation
plans and
recommends
opportunities to
mature aspirations
and targets based
on operational and
industry learnings
The CEO is responsible
for instilling a culture
that aligns with CHl’s
values
Management under the leadership of the CEO
Are responsible for delivering the strategic direction
and goals approved by the Board
Channel Infrastructure’s Management System
Company policies, operating procedures, including risk
appetite and the Risk Management Framework
People and
Culture
Oversees remuneration
framework, people and culture
strategies including diversity
and inclusion, community
engagement and human rights
Audit and Finance
Committee
Oversees risk management
framework, internal audit,
financial reporting and
the integrity of our
sustainability reporting
Health, Safety,
Environment and
Operations
Oversees the environmental
aspects of sustainability as
well as health, safety and
operational quality
Figure 3: Governance Structure
22
Channel Infrastructure NZ Limited | Delivering a sustainable future

The Board considers and (where applicable) approves
the mat
erial sustainability impacts for Channel
Infrastructure as well as all corresponding targets to
ensure they are achieved. This includes approval of
sustainability reports, including this report.
The respective roles of the Board, its committees
and Management (the C
orporate Lead Team) are
set out in the Board and relevant committees’
charters. Committees annually evaluate their own
performance, processes and procedures against their
charter obligations, to assist the Board in effectively
fulfilling its role and meeting its duties.  The Board
also periodically reviews its own performance as a
board.  The most recent board performance review
was undertaken in Q4 of 2022, with Propero Consulting
Limited engaged to provide an evaluation report on the
Board’s performance.  
The Board maintains a skills matrix setting out the
mix o
f skills and diversity of the Board. The skills
matrix is used to evaluate whether the collective skills,
competencies and experience of the Directors meet
Channel Infrastructure’s requirements both currently and
into the future. For further information, please refer to the
2023 Governance Statement available on the company’s
website (www.channelnz.com).
23
Channel Infrastructure NZ Limited | Delivering a sustainable future

Our NZX Obligations

Channel Infrastructure is listed on the Main Board of NZX Limited
(“NZX
”) as CHI and is subject to regulatory control and monitoring
by both the NZX (through NZ RegCo) and the Financial Markets
Authority (“FMA”).
A complete suite of Channel Infrastructure’s governance documents can be publicly viewed at the “Investor Centre”
on our w
ebsite (www.channelnz.com), which includes detailed reporting against the NZX Corporate Governance Code,
board and committee governance documents, and our suite of policies, including those which govern sustainability.
This report has been prepared to align with incoming TCFD disclosure requirements, and future reports will be prepared
in compliance with the
se requirements once they come into operation.
For further information, please refer to the 2023 Governance Statement available on the Company’s
w
ebsite (www.channelnz.com).
24
Channel Infrastructure NZ Limited | Delivering a sustainable future

AnnuallySix monthlyMonthly
Strategic
Framework
Risk Appetite
Actions &
Improvement
Plans
Budget &
Business Plan
Annual
Company
Scorecard
Enterprise
Risk Review
+Board approves
Strategic Framework
& Risk Appetite for
the Company
+Management
develops and Board
approves Budget &
Business Plan
+Management identify
risks/ opportunities to
delivery of plan
+Board approves
Annual Company
Scorecard
+Management & Board
review enterprise risks
and controls
+Management reviews
delivery against
business plan
+Management reviews
risk control actions and
identifi es any new risks
/ opportunities
Figure 4: Integrated approach to risk management and risk appetite
Our reporting
structure
Channel Infrastructure’s management closely considers climate
change and s
ustainability issues in ongoing optimisation of
financial and operational performance, as well as planning for
future growth and diversification of the Company’s business
through the decarbonisation of New Zealand’s economy. 
The Corporate Lead Team is responsible for proposing targets to the Board and then achieving those that are
appr
oved. The Corporate Lead Team approves the portfolio of sustainability programmes to achieve targets, and
assigns management accountability for implementation. This includes the day-to-day responsibility for implementing
the Company’s commitments to addressing climate change.
The Company has an integrated approach to business planning and risk management in place as outlined below.
25
Channel Infrastructure NZ Limited | Delivering a sustainable future

General
Counsel &
Company
Secretary
Business
Development
Manager
General
Manager - IPL
Chief
Executive
Officer
Chief
Financial
Officer
Kaumatua
General
Manager –
Operations
HSSE
Manager
Maintenance
Manager
Pipeline
Manager
Risk &
Compliance
Manager
Operations
Manager
Chief People
Officer
General
Manager –
Projects
Figure 5: Organisational chart
The primary point of responsibility for sustainability within the Corporate Lead Team is the Chief Executive
Officer, and
additional climate change, sustainability, and management of people responsibilities are held by the Chief Financial
Officer, General Manager Operations, Chief People Officer, and the Business Development Manager.  Each of these
positions also necessarily require an understanding and oversight of climate-related risks and opportunities.  These
include consideration of the fuel demand forecasts, impacts of climate policy developments such as carbon pricing,
consideration of the physical impacts of climate change on operational safety and continuity, and workforce and
community impacts. 
At the operational level, the Company’s General Manager Operations and supporting team members oversee
ongoing activitie
s on-site, including environmental and climate-related issues such as identifying and implementing
opportunities for efficiency gains through minimising input costs such as fuel and electricity, and appropriate responses
to extreme weather events. The Risk and Compliance Manager maintains the Enterprise Risk Register, including the
identification and monitoring of risks and the Environment, Health and Safety Manager is responsible for relevant
reporting and compliance obligations.
The relevant reporting lines are depicted in Figure 5.
26
Channel Infrastructure NZ Limited | Delivering a sustainable future

Company
-wide
Policies
Management
Processes
(High level description
of key processes)
Procedures
(Methods on how to operate
and control processes)
Forms, Records, Training Materials
Accountable Managers
Leadership Team
Approvals
CEO, Board
Figure 6: Management System Structure – Hierarchy of Approvals
Our Management System
The Management System applies to all of the Channel Infrastructure Group’s people and establishes the requirements
f
or how we do business across our operations and support teams.  It is designed to protect our people, the
community, the environment, and the economic value of our assets, operations and activities.  The Management
System comprises:
• Policies and Code of Conduct (channelnz.com/who-we-are/corporate-governance/)
• Management processes explaining the minimum standards of “what” the business must achieve
• Procedures, technical standards, processes and tools (forms and records) explaining the expectations and practices
f
or “how” business activities should be undertaken.
To
reflect the strategic importance of climate-related risks and opportunities to the business, our remuneration plans
include key performance metrics which address our priorities in this area. Specifically, our CEO’s KPIs linking to future
sustainability and growth (50 per cent weighting) include supporting the transition to lower carbon fuels as one of six
explicit strategic priorities set out in Channel Infrastructure’s strategic framework (refer to Figure 7).
Consideration of climate-related drivers are also indirectly referenced in other strategic priorities, including growth and
diversification.
Our company-wide scorecard, which applies to employees (and constitutes the remaining 50 per cent
of our CEO’s KPIs), also includes measures to support a just transition for employees leaving the business, and reduce
our Scope 2 emissions.
27
Channel Infrastructure NZ Limited | Delivering a sustainable future

Strategy
28
Channel Infrastructure NZ Limited | Delivering a sustainable future

Strategic framework
The Company’s Strategic Framework, set out on page 30, outlines
t
he way that we will achieve our purpose, and vision.  
Channel Infrastructure’s commitment to acknowledging
the r
ole that climate and sustainability impacts continue
to have on the business, and to open and transparent
reporting of climate-related disclosures builds on the
proud history we have of taking actions to minimise our
impact.  This is built into our company DNA, and is
something we have quietly been working on for many
years. As new technologies are found, we have invested
to incorporate these into our business, and we were the
first corporate to negotiate and agree a comprehensive
Negotiated Greenhouse Agreement (NGA) with the New
Zealand Government in 2003.  Our sustainability journey
has been underway for some time and will continute into
the future, as shown in Figure 8 on page 32. 
The
first standalone Sustainability Report issued by
Channel Infrastructure, ‘Our Transition to a Sustainable
Future’, was also the first act taken by the company
following its significant transformation to a completely
new business. However, it was not the first step on our
sustainability journey.  ‘Our Transition to a Sustainable
Future’ was aligned to TCFD standards more than a
year ahead of this becoming mandatory in New Zealand,
and the report is something we are very proud to have
delivered for our many stakeholders.  This, our second
report, 'Delivering a sustainable future', continues to build
on the momentum from 2021 and our proud history of
ESG reporting.  
As outlined in the Industry Overview on page 15, we
r
ecognise the need to maintain a strong understanding
of the climate change driven impacts relevant to our
financial and strategic planning into the future at
Marsden Point. These include the transition impacts
from decarbonisation of transport fuels and the broader
energy sector, as well as the foreseeable physical
impacts from unavoidable climate change over the life
of our infrastructure and assets.  Channel Infrastructure’s
approach and priorities are outlined in our Climate
Change Position Statement set out on page 18. 
29
Channel Infrastructure NZ Limited | Delivering a sustainable future

New Zealand’s leading fuel infrastructure company
Delivering infrastructure to sustainably meet
New Zealand’s transport energy needs
OUR VISION
OUR PURPOSE
OUR STRATEGIC PRIORITIES
OUR VALUES
Safe, reliable, low
cost operations
High performance
culture
Support lower
carbon fuels
transition
Grow and
diversify
Strong safety
systems and
culture
Continuous
improvement
Asset
management
Strong
performance
management
Change-ready
Future focused
Leverage existing
infrastructure
Marsden Point
energy hub
Strategic storage
Repurposing
Marsden Point site
Supply chain
optimisation
Leverage existing capabilities
One TeamHonestyInnovationCare
Competitive cost
of capital
Realise
infrastructure
value
More reliable
dividend payout
Diversify access to
capital markets
Leverage the
balance sheet
Realise value
of existing
infrastructure
through import
terminal
conversion
Transform to deliver valuePosition for future growth
Figure 7: Strategic Framework
30
Channel Infrastructure NZ Limited | Delivering a sustainable future

31
Channel Infrastructure NZ Limited | Delivering a sustainable future

April 2003
NGA
Signed the first Negotiated
Greenhouse Agreement in NZ
with the Crown, committing
the Company to achieving
best practice energy
performance
2018
Our first materiality survey
Under the Global Reporting
Initiative (GRI), we undertook our
first materiality survey with our
stakeholders to better understand
our stakeholder needs in alignment
with our strategic priority
2004
First ESG reporting
In 2004 we began to
measure our performance
against ESG metrics
2014
Project Kleenex
$25 million invested from 2014
to 2018 to maintain good
environmental performance
and bolstering the resilience of
our water treatment systems
2013
Coastal Management
Strategy
Strategy developed following
observed increase in erosion
events from regular monitoring
2015
Te Mahi Hou
Commissioned the $365
million CCR, improving energy
efficiency and reducing CO2
emissions by around 120,000
tonnes per annum
2016
Coastal Erosion
Protection
130 meters of erosion
protection installed on
eastern aspect of site
2005
Future Fuels Project
The $190 million Future Fuels
Project is commissioned to
produce low sulphur Diesel and
to take benzene out of petrol,
meeting strict Government fuel
quality regulations
2008
ISO9001
Initial accreditation of Quality
Management System
Figure 8: Our Sustainability Journey
32
Channel Infrastructure NZ Limited | Delivering a sustainable future

2023
Second standalone
Sustainability Report
This report, “Delivering a
Sustainable Future”, builds on
the 2022 report and reports
on our achievements to date
as we transitioned to a new
business model
2021
35-year Resource
Consent granted
To operate for another 35
years based upon a detailed
environmental impact assessment
of our processes and operations
2017
Improved our
resilience to major
weather events
Completed a $2.8 million
upgrade of the bio-treater,
lifting our capacity to treat
wastewater and our
ability to manage major
weather events
2021
Strengthening iwi relations
Signed relationship agreements with
local iwi to guide our work together
in areas of mutual interest
2020
Strategic Review
initiated
Culminated in the November
2021 decision to transition
from refining to import terminal
operations, with subsequent
workforce transition
2022
Review of
material issues
Refreshed 2018 materiality
survey to ensure it remained
a relevant guide for our
sustainability priorities as a
fuels’ infrastructure provider
2022
First standalone
Sustainability Report
Released as Channel
Infrastructure, “Our transition
to a sustainable future”
33
Channel Infrastructure NZ Limited | Delivering a sustainable future

Business Planning
Business planning, including scenario analysis, has been
an impor
tant tool for us as we have assessed options
through our Strategic Review process and planned and
navigated our transition. We have been undertaking
scenario analysis for 15 years now, and these exercises
informed our decision to transition from a refinery to an
import terminal.
Our recent scenario analysis has focused on the fuel
pas
sing through our infrastructure, as in our view this
is the most material climate transition impact for
our business.
Channel Infrastructure uses fuel demand outlooks
f
ormulated by third party oil and gas market experts,
Hale & Twomey, for its business planning, with newly
updated base planning scenarios presented in the charts
set out on pages 35-36.
There are a range of potential market scenarios for
the decarbonis
ation pathway. However, most scenarios
(including Hale & Twomey's updated outlook) agree that
electrification of transport and a wider use of biofuels
will result in petrol demand peaking, and starting to
decline in the near term.  Diesel is expected to transition
more slowly, with a gradual increase in biofuels and the
electrification of light commercial vehicles and buses,
and the transition of heavy transport to electric and
hydrogen expected to take longer.
Aviation demand is expected to exhibit continued
gr
owth, and our latest outlook shows a faster post-
COVID demand recovery and higher demand over the
longer term, as the ‘middle-class’ in Asia continues
to grow and the trend to ultra-long haul flights
increases the fuel required for flights leaving New
Zealand. These outlook scenarios anticipate a near-term
re-establishment of long-haul flights, with the extra-
long-haul sector (greater than 11,500km and requiring
more fuel) becoming a greater portion. Longer term,
continued fuel efficiency improvements slow the growth
of fuel consumption, though fleet renewals and continual
fuel
efficiency improvements’ are expected to reach
a plateau.
The decarbonisation of the aviation industry is expected
t
o largely be driven by the gradual substitution of
petroleum jet fuel with Sustainable Aviation Fuel (SAF).
SAF has been identified as the primary solution for
decarbonis
ing the long-haul flights, which drives the
majority of jet fuel demand. SAF is regarded as a ‘drop-
in fuel’ in that it is chemically identical to fossil jet fuel,
and is therefore able to utilise the same tanks, pipelines
and other infrastructure. For this reason Hale & Twomey
have not sought to quantify the rate of uptake of SAF,
as this comes with great uncertainty and has no bearing
on the overall infrastructure throughputs and capacity
requirements. Instead, we have presented an indicative
view of the growth in SAF through our infrastructure, as
shown in Figure 10, aligned with Air New Zealand's stated
ambition of reaching 10 per cent SAF uptake by 2030 and
70 per cent emissions reduction by 2050 through SAF and
other zero emissions aircraft technology. Twenty five per
cent of regional jet demand is assumed to be electric
by 2040, and 10 per cent of short-haul jet demand is
assumed to be met by hydrogen by 2050. However, this
will have a limited impact on our jet fuel throughput
volumes, which will be driven by long-haul and extra
long-haul flights out of Auckland.
Biodiesel, is also expected to be a drop-in fuel that will
no
t require any new infrastructure.  Whilst the biofuel
mandate has been withdrawn, over time, the volume
of renewable fuels being handled through Channel’s
infrastructure is epected to continue to grow and make
up an increasing proportion of our throughput.
The Hale & Twomey forecast is aligned with the
national path
way assessment efforts undertaken by the
Climate Change Commission that have identified that
road transport fuel is the primary site of change for
New Zealand’s transport system in a Paris Agreement
consistent world, with few alternatives in place for long-
haul air borne transport other than SAF. Our existing
business planning assumptions have reflected these
conclusions, assessing declines in petrol and diesel
demand and growth in jet fuel demand, in line with the
identified impacts of a national 1.5 degree scenario.
Throughout the transition, the one constant is the need
f
or fuel to be available when New Zealanders need
it, supplied through secure and resilient supply chains.
Importantly for Channel Infrastructure, our pipeline
capacity is sufficient to meet the anticipated demand
reflected in the latest fuel outlook.
34
Channel Infrastructure NZ Limited | Delivering a sustainable future

Figure 9: Fuel demand projections for New Zealand (million litres)
1
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
20492050
HistoricalOutlook
H&T - JetH&T - Diesel, incl biofuelsH&T - Petrol incl ethanol
CCC - Demonstration Path (2022)CCC - Current Policy
Reference (2022)
H&T 2021
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
-
1
This 2023 update of the long term product demand outlook developed by Hale & Twomey is our first since the border restrictions have been removed
and the po
st-Covid demand recovery has become clearer. Aviation fuel demand has been modelled from the long-term passenger demand outlook
developed for Auckland International Airport by global airport consultancy DKMA. Air freight, which now represents a larger portion of demand than
previously, is modelled separately. Auckland airport represents c.80% of New Zealand’s aviation fuel demand, so the New Zealand jet fuel demand
shown on Figure 9 was extrapolated from the detailed modelling performed for Auckland demand. Land transport fuel demand is modelled separately
for each portion of the fleet (e.g. light passenger, light commercial, heavy transport, buses etc.) each with their own fleet turnover rates, replacement
r
ates for new and used, and rate of EV uptake. First the transport task is modelled (vehicle kilometers travelled) and then the fulfilment of this task
(e.g. public transport, light passenger, etc).The diesel outlook is built from the ground up, with different assumptions for each on the main consumption
areas (Agriculture, Industrial, Commercial, Residential, Transport and International). Within the transport group, light vehicle transport (both passenger
and commercial), heavy transport and buses are all modelled separately. Each demand category has its own drivers, although GDP remains a prime
demand driver of many of the categories.
35
Channel Infrastructure NZ Limited | Delivering a sustainable future

Figure 10: Fuel demand projections for markets supplied by Channel Infrastructure
(Auckland and Nor
thland) (million litres)
2
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
20492050
HistoricalOutlook
H&T - JetH&T - Diesel, incl. biofuelsH&T - Petrol
H&T - ‘Slower’H&T - ‘Faster’H&T 2021
Indicative renewables portion
Channel Infrastructure’s import terminal assets were
r
evalued in 2021 at fair value by an independent valuer
using the 2021 Hale & Twomey fuel demand forecasts
(refer to note 11 of the Consolidated Financial Statements
for the year ended 31 December 2021), and the carrying
value of import terminal assets as at 31 December 2022
was not considered to be materially different to their
fair value.
The actual rate of future fuel transition remains uncertain,
and may occur f
aster or slower than modelled by Hale
& Twomey, and the fair valuation of assets is sensitive
to fuel volumes through our import terminal facilities. If
terminal volumes were to be 10 per cent higher or 10
per cent lower than assumed in the forecasts, the fair
value of our import terminal assets would increase by c.
$65 million or decrease by c.$55 million.
Scenario analysis will continue to form part of our
s
trategic toolkit, and we anticipate that our approach
will develop over time, including as best practice for
TCFD disclosures in our region develops. Areas for further
in
vestigation in future will include further updates to jet
fuel outlook as the feasibility of SAF is demonstrated.
These scenario analyses will also include assessments
of physical risk to our infrastructure, as although we
have undertaken specific assessment of event risk from
storm surges and inundation of the site, we have yet
to undertake a broader scenario analysis for physical
climate risk.
Channel Infrastructure is well positioned to support
Ne
w Zealand’s changing future fuel needs, with
growth opportunities at the Marsden Point site
including additional fuel storage to support New
Zealand’s fuel security, renewable electricity supply
through the Maranga Rā solar project, and work
underway with customers and partners on biofuel and
hydrogen opportunities.
2
The ‘Indicative renewables portion’ includes biodiesel volume impact if a mandate was to be implemented as initially proposed (now rescinded), and
indicativ
e SAF volumes (not provided by Hale & Twomey) aligned with Air NZ targets (10% by 2030, and along with zero-emission aircraft contribute to
70% emission reductions by 2050)
36
Channel Infrastructure NZ Limited | Delivering a sustainable future

What sustainability
means to us
We are living sustainability through our organisational values.
Our organisational values were created by the people of
Channel in early 2
022. We looked back in history at what
had made the organisation successful over its 60 years
as Refining NZ, and then looked forward to determine
what it would need to become, to deliver on its vision
to be a sustainable business with long-term financial,
environment, and social viability, that is also a great
place to work.
The four values set out in Figure 11, honour our past while
identif
ying that we will need to embrace new talents and
experiences as we move into our sustainable future.
The colours ascribed to each of our company values are
reflective
of the Marsden Point landscape. These colours
ground our values in the whenua and provide us with
inspiration and strength. These values were co-created
with our kaumatua and our next step is to build symbols
that embody the heart of each and to embed the values
into our everyday lives on site.
Each of our four values provides the foundation of our
s
ustainable mindset, and is reflected in how we work
together and do business, every day.
For example:
• Being agile and adapting to the changing business
en
vironment by transitioning to a new business model
as One Team and delivering a sustainable future
• Supporting a Just Transition for our workforce with
honesty
and care as set out in the case study on
page 77
•Innovating new waste economies during our refinery
decommissioning project, as outlined in the case study
on page 71.
Figure 11: Our Values
One Team
We stand together
as one team:
Everyone knows where
we are headed, and their
role in that journey
as individuals
and as teams
Honesty
We are honest:
We speak up and make it
safe for others to speak up
Innovation
We are innovative
and agile:
We always work to do
things better in small
and big ways
Care
We care:
We step in to do the
right thing by our people,
customers, communities, the
environment and shareholders
Our
Values
37
Channel Infrastructure NZ Limited | Delivering a sustainable future

Roadmap for our mahi in
New Zealand’s energy transition
Channel Infrastructure is playing an essential role in the transition
t
o a resilient, low-carbon economy as New Zealand’s leading
independent fuel infrastructure company.
3. ENABLE DECARBONISATION
OF NEW ZEALAND’S
TRANSPORT SECTOR
We use our strategic
infrastructure to facilitate the use
of low-carbon future fuels which
are affordable and available
when we need them.
1. KEEP AOTEAROA MOVING
We receive, store, test and
distribute transport fuels safely,
reliably, and efficiently to the
Northland and Auckland markets.
2. CHAMPION A JUST
TRANSITION
We support our workforce, local
community, iwi partners, and
New Zealand’s economy to
prosper through our transition.
Channel Infrastructure
first published its Transition Roadmap in its 2021 Sustainability Report.  The Transition Roadmap,
set out on page 39, is our plan to keep New Zealand moving in a low-carbon future and sets out our ambition,
commitments, and actions to reduce direct and indirect emissions across our value chain and help support New
Zealand’s transition to a low-carbon future.
38
Channel Infrastructure NZ Limited | Delivering a sustainable future

Table 1: Our Transition Roadmap
HORIZON 1
Present- 2025
HORIZON 2
2025 - 2035
HORIZON 3
2035 +
Outlook
• New Zealand relies on jet fuel,
pe
trol and diesel to keep moving
and Channel Infrastructure, through
its infrastructure, will continue to
provide fuel to Kiwis to support their
transport needs
• New Zealand’s petrol consumption is
lik
ely to peak, while diesel demand
is expected to continue its strong
recovery post-COVID
• New Zealand Government measures
t
o protect New Zealand’s fuel security
expected to come into effect, which
will require infrastructure such as that
owned by Channel Infrastructure

• Demand for diesel is expected to
r
emain strong with electrification of
the light vehicle fleet and increasing
uptake of biofuels
• Petrol demand is expected to
continue declining
• Jet fuel demand is expected to
continue t
o grow and increasing
Sustainable Aviation Fuel (SAF) is
expected in the fuel mix. Marsden
Point has a key role to play to
support the import of SAF, and the
delivery of increasing volumes of
SAF to Auckland Airport in a low-
carbon way
• Biofuels and SAF are likely to
play an incr
easingly greater
role, reducing our customers’
Scope 3 emissions
• Hydrogen is expected to
become commer
cially viable
in the longer term, providing
decarbonisation opportunities
in hard-to-abate sectors like
heavy transport and aviation
Actions
2022
– >98 per cent reduction in
Scope 1 and 2 emissions (versus 2019
baseline) following the cessation of
refining activities
2022
- Country’s first shipment of SAF
received at Marsden Point and delivered
to market via low-carbon emissions
Marsden Point to Auckland pipeline
2023 – a 4-degree global warming
s
cenario modelling focussed on coastal
erosion management options
2023
– Channel to work with MBIE
to support the Government’s Fuel
Security ambitions
2023
– Fortescue Future Industries to
complete the Scoping Phase of its study
into the feasibility to produce green
hydrogen and green hydrogen products
at Marsden Point for domestic use in NZ,
with the range of potential uses including
natural gas substitution, heavy transport
fuel and the production of eSAF

2025+ – We are already exploring
oppor
tunities to develop renewable
electricity supply through our Maranga
Rā solar project, with other solar
projects and batteries also being
planned for the Northland region.
2025+ – Channel Infrastructure will
s
eek opportunities to utilise its strategic
infrastructure to support the supply of
biofuels, including Sustainable Aviation
Fuel, to the New Zealand market
2025+
- Channel Infrastructure will
look at options for local production
of bioSAF (produced from bio-genic
materials, like wood residues) and
eSAF (produced from green hydrogen
using renewable electricity) and
Carbon Dioxide derived from industrial
processes or Direct Air Capture)
2035+
– Channel Infrastructure will
continue to explore opportunities
to produce or store alternate forms
of energy (such as hydrogen and
second-generation biofuels)
39
Channel Infrastructure NZ Limited | Delivering a sustainable future

Risk
management
40
Channel Infrastructure NZ Limited | Delivering a sustainable future

Reporting on risk
The Channel Infrastructure Board is responsible for reviewing and managing enterprise risk, including those related
t
o climate change. Day-to-day risk management is delegated to the Chief Executive Officer, with risk assessments
conducted by the Corporate Lead Team facilitated by the Risk and Compliance Manager. 
The frequency of risk assessments and review and the process for escalation is outlined in Figure 12.
Figure 12: Risk Management Governance: Review and escalation
Critical
High
Board of Directors
Corporate Leadership Team
Action parties and owners (risk-specifi c)
Risk Management Oversight
Owner - Chief Financial Officer
Commercial
(Business Development
Manager, Commercial
Manager)
Projects
(Projects / Transition /
Decommissioning Managers)
People & Stakeholders
(General Counsel / HR)
Finance
(Chief Financial Officer)
Operations
(Operations / Maintenance /
Pipeline Managers)
Regulatory
(General Counsel,
EHS and Maintenance
Managers)
Oversight
Enterprise
Level
Risk register
& action
database
Operational
Level
Risk Rating Escalation Trigger
Half-yearly risk
management
progress reports
Quarterly risk
management
review
Monthly risk
management
review
Real time action
management
tracking
Moderate
Low
Following the transition to a fuels import terminal, the Company undertook a full reassessment of enterprise risks. As
at
31 December 2022, three risks linked to climate change are recorded and managed in the Enterprise Risk Register
which are reflected in the discussion of climate risks on pages 51-55.
The enterprise-wide risk management system covers preventative/recovery and mitigating barriers or controls.
41
Channel Infrastructure NZ Limited | Delivering a sustainable future

Channel Infrastructure uses the “three lines of defence” model to coordinate its approach to risk and assurance.  The
model, s
et out below, is focused on managing material risks, including environmental, social and governance risks, at
the strategic, tactical and operational levels.
Figure 13:  Three lines of defence model
Board of Directors
Corporate Lead Team
1st Line of Defence
Day-to-day risk management and
control
3rd Line of Defence
Independent assurance
2nd Line of Defence
Function that oversees risk
Line Management
• Functions that own and manage risks directly
• Responsible for maintaining effective internal controls,
executing risk and control procedures and ensuring
compliance on a day-to-day basis
•
Identifies, assesses, controls and mitigates risk
Independent Asssurance
• Functions that provide independent assurance that risk
management is working effectively
• Reports to Audit and Finance and Health, Safety,
Environment and Operations Committees
Risk and Compliance
• Functions that facilitate and monitor the implementation of
effective risk management and compliance practices
• Works with the line to identify and monitor new and
emerging risks
• Ensures the enterprise risk model is effectively deployed
•
R
eports primarily to the Corporate Lead Team and the
Audit and Finance and Health, Safety, Environment and
Operations Committees
Enterprise Risk
The audit, or independent assurance programme, is designed to verify that operational controls (barriers) are
functioning as documented and to assess the efficiency and effectiveness of internal controls. The Corporate
Lead Team and the Board obtain additional assurance of the adequacy of the Company’s management system
from detailed operational reports and monitoring controls covering both leading and lagging indicators as well as
independent risk assessments carried out by independent third parties.
42
Channel Infrastructure NZ Limited | Delivering a sustainable future

Engaging with our
key stakeholders
We engage with these groups on a regular basis and aim to meet
f
ace-to-face as much as possible.
Figure 14:
 Our key stakeholders
Investors
Customers
Hapu/iwi
Employees
Contractors
Central
and local
go
vernment
Regulators
Neighbours and
community
Suppliers
43
Channel Infrastructure NZ Limited | Delivering a sustainable future

Building quality, long-term relationships with our stakeholders enables us to become a better neighbour, employer,
par
tner and provider of critical infrastructure to reliably keep Aotearoa New Zealand moving through an era of
change.  This requires open and clear communication.  The following table illustrates how we engage with individual
stakeholder groups, with the “issues of interest” reflecting the topics most commonly raised by these stakeholders
through our established channels.   The type and frequency of engagement varies depending on the needs of each
individual group. 
Table 2: Engaging with our stakeholders
STAKEHOLDER GROUPHOW WE ENGAGEPARTICULAR AREAS OF INTEREST 2022
Financial markets
(e.g. shareholders,
bondholders,
banks)
Annual Meeting of Shareholders
Investor days
NZX releases
Analyst meetings and conference calls
On-going investor engagement
and pr
esentations including face-to-
face meetings
Formal communications including Annual
and Sus
tainability Reports
Financial performance, strategy,
dividends
, growth and
capital structure
Conversion project
Environmental, Social and
Go
vernance (ESG) goals, policies
and performance
Customers
Relationship meetings
Teleconference and face-to-
f
ace meetings
On-site visits
Terminal performance
Fuel industry changes, including
Go
vernment policy developments
Jet fuel supply chain resilience
Hapu/iwi
Mana Whenua Roopu
(Q
uarterly meetings)
Kanohi ki te kanohi (face to face) hui on-
s
ite and at local marae
Local economic impacts of
Channel Infr
astructure
Licence to operate
Workforce diversity
Environmental management and
s
ite remediation
Future use of site (including
water requirements)
44
Channel Infrastructure NZ Limited | Delivering a sustainable future

STAKEHOLDER GROUPHOW WE ENGAGESELECT AREAS OF INTEREST 2022
Employees
and contr
actors
On-site staff communications channels
Toolbox meetings before shift work starts
f
ocused on safety
‘Cascade’ newsletter
Monthly performance cascades
"All-up" team meetings
 
Employee engagement surveys
Environmental, health and safety
perf
ormance and on-site protocols
Workplace changes
Workforce diversity
Business development activities
Central
go
vernment
Bi-monthly engagement with key officials
across relevant departments
Ad hoc engagement with Ministers and
P
arliamentary Advisors
Site visits as requested
Policy Issues including the
Dome
stic Stockholding Obligation
Auckland Jet Fuel and diesel
s
upply chain resilience
Electricity transmission, distribution
and supply costs
NZ Energy Strategy development
Immigration and workforce issues
Local government
and r
egulators
Formal, scheduled meetings, including:
• Marsden Point Liaison committee
• Northland
Refinery Working Group
Ad hoc outreach as required on
is
sues, including engagement with
key regulators:
• WorkSafe
• Maritime NZ
• FENZ
• Electricity Authority
• CAA, NRC, EPA, WDC
Local economic impacts of
Channel Infrastructure
Consents to operate
Environmental management and
s
ite remediation
Future use of site (including
w
ater requirements) and
growth opportunities
• Green fuel transition
• Maranga Rā solar project
Environmental, health and
s
afety performance
45
Channel Infrastructure NZ Limited | Delivering a sustainable future

STAKEHOLDER GROUPHOW WE ENGAGESELECT AREAS OF INTEREST 2022
Neighbours,
communit
y
Annual attendance at
community meetings:
• Whangarei Heads
C
ommunity Association
• Ruakaka Ratepayer Association
• Marsden Point Liaison Committee
Social media updates and outreach
Letters and factsheets
Local impact of Channel business
including r
esource consent activity
Terminal Safety Case
Growth and business
de
velopment opportunities
Environmental management
 and
site remediation
Suppliers
Contract tender processes
Ad hoc engagement as required due to
bus
iness needs
Supplier relationship
management meetings
Site visits as requested
HSE and on-site protocols
Business-related issues
 
Environmental, health and
safety performance
46
Channel Infrastructure NZ Limited | Delivering a sustainable future

Identifying our
mo
st material
sustainability issues
Channel Infrastructure closely considers the impact we have on
t
he community and the environment in which we operate. We use
an assessment of materiality to frame the Company’s approach
to ESG risk management, performance, and reporting.
In early 2022, following changes in the regulatory
en
vironment in New Zealand, and to our business
model, we revisited our materiality analysis to ensure it
continued to be a relevant guide for our sustainability
priorities. The material impacts review was a natural
extension of our 2020 Strategic Review and the
extensive stakeholder engagement which was involved
throughout this period.  Our review considered a
wide range of sources, including relevant reference
material from the Global Reporting Initiative (GRI)
and the Sustainability Accounting Standards Board
(SASB) and engaged external sustainability advisors.
1
We considered a large group of relevant issues, and
stakeholders including short and long-term relationships
and angles.  We then determined three overarching
categories: environmental performance; people and
community; and governance and financial performance.
Each issue within the different categories was arranged
from most to least significant, and a threshold of
significance was determined. From this, an updated
and r
elevant list of Channel Infrastructure’s material
sustainability issues was determined and approved by
the Board of Directors in February 2022.
We are committed to going through this process in
gr
eater depth following the completion of the Company’s
transition in 2023.
Channel Infrastructure’s Board of Directors is responsible
f
or the oversight and governance of our material
sustainability issues, while day-to-day management is
the responsibility of the Chief Executive Officer. The
thr
ee material issue categories noted above allow for
the streamlined management and reporting of our
ESG impacts.
1
Consulted reference material at this stage included: GRI 11 Oil and Gas Sector 2021; SASB Infrastructure Sector Standards; and SASB Oil & Gas
S
ector Standards
47
Channel Infrastructure NZ Limited | Delivering a sustainable future

Figure 15: ESG Materiality Matrix
Regulation & Policy
Circularity
Supply chain
due diligence
Contribution to
regional economy
Culture & diversity
Community
engagement
Transparency
& disclosure
Workforce transition
People &
process safety
Operational
decarbonisation
Iwi partnerships
Health & wellbeing
Access to skills
Electricity supply
Access to capital
Land, air, waste &
water management
Governance
transition
Future fuels & energy
industry transition
Security &
quality of supply
Importance to Channel Infrastructure
Importance to stakeholders
Medium
High
High
Environmental performancePeople & communityGovernance & financial performance
48
Channel Infrastructure NZ Limited | Delivering a sustainable future

Table 3: Material ESG issues and framework
ENVIRONMENTALPEOPLE AND COMMUNITYGOVERNANCE AND FINANCIAL
Operational decarbonisation
Addressing carbon emissions from our
bus
iness operations, business travel,
and purchased goods and services to
reduce our impact on climate change
Future fuels and energy
industry transition
Enabling and participating in
Ne
w Zealand’s transition to more
sustainable future fuels and energy
Land, air, waste & water management
Minimising operational impacts on
land, w
ater and air while managing
existing site contamination to reduce
this over time. Working with our
partners to enhance biodiversity
Circularity
Increasing material and operational
efficiency to, where possible, attain
z
ero waste and divert from landfills
back into our supply chain
Workforce transition
Conducting an ethical and just
tr
ansition to an import terminal that
minimises negative impacts on our
people and the community
People & process safety
Maintaining focus on people
and pr
ocess safety that surpass
regulatory expectations
Health & wellbeing
Cultivating and maintaining a healthy
w
orking environment which values
employee wellbeing
Iwi partnerships
Recognising iwi responsibilities as
mana whenua and k
aitiaki over
poupouwhenua, the land upon which
we stand, and partnering to maintain
and enhance the cultural health of our
operational site and the surrounding
coast, and informing our partners of
potential changes and accounting for
their views
Access to skills
Maintaining access to skilled labour for
our indus
try and bridging capability
gaps through training
Culture & diversity
Attracting, supporting, and
maint
aining a diverse workforce and
healthy working culture
Community engagement
Engaging our local community to
par
tner in impactful ways and to
continue as a responsible corporate
citizen and neighbour
Contribution to regional economy
Making an impactful and sustainable
contribution t
o the regional economy
in which we work, as well as to New
Zealand more broadly
Supply chain due diligence
Increasing transparency throughout
our s
upply chain to promote a high
standard of human rights

Security and quality of supply
Ensuring our services support the
deliv
ery of reliable, high-quality fuel
for our customers to accommodate
their changing needs and maintain
their competitiveness
Governance transition
Conducting an orderly, timely and
s
eamless transition of our governance
systems and processes to the new
terminal business
Access to capital
Maintaining access to lending and
financial capital amid changing
s
takeholder expectations for an
environmental and social license
to operate
Electricity supply
Supporting affordable and reliable
acce
ss to electricity for our business
Transparency & disclosure
Providing accurate and timely
inf
ormation about our sustainability
impacts and performance
Regulation & policy
Complying with, supporting and
anticipating futur
e regulations
and policy
49
Channel Infrastructure NZ Limited | Delivering a sustainable future

The following sections of this report use this
cat
egorisation, but mostly omit elements related to
financial performance as these are covered extensively
in the Company’s 2022 Annual Report. In this Report,
we provide commentary on the eight material issues
that were a particular focus for the Company in 2022
as follows: 
MATERIAL TOPICREFERENCES
Health, safety
and w
ellbeing
Health and wellbeing support for
our people
People and process safety
Personal health, safety and
w
ellbeing, page 58
Operational safety, page 61
Diversity, equity
and inclu
sion
Workforce transition
Culture and diversity
Extensive transition support,
page 75
Diversity and engagement,
page
73
Environmental
Operational decarbonisation and
climat
e change
Land, waste & water management
Atmosphere and climate change,
page
66
Land, waste and water
management, page
68
Culture
and partnerships
Iwi partnerships
Community engagement
Partnering with our local iwi and
mana whenua, page 79
Working within our local
communitie
s, page 81
50
Channel Infrastructure NZ Limited | Delivering a sustainable future

Identifying our climate
risks and opportunities
In line with TCFD recommendations, we have summarised the
climat
e-related risks and opportunities considered relevant to
our business in Table 4 below. Risks and opportunities have been
considered across three future time horizons (consistent with our
Transition Roadmap outlined on page 38 of this Report).
Table 4: Climate change risks and opportunities
TOPIC
DESCRIPTION OF RISK/OPPORTUNITYMANAGEMENT ACTIONS AND PLANS
PolicyRisks – Short term:
New Zealand’s Climate Change Response (Zero Carbon)
Amendment Act pas
sed in 2019, setting a legislated target to
reduce net emissions of all greenhouse gases (except biogenic
methane) to zero by 2050. The New Zealand Emissions Trading
Scheme (NZ ETS) is a key policy lever in the achievement of
the 2050 target, based on forecast emissions budgets which will
inform the allocation of NZ carbon credits to industry and through
other mechanisms.
Refining
NZ was scheduled to join the NZ ETS from January 2023
as an Emissions-Intensive Trade-Exposed (EITE) business, with an
industrial allocation of units based on a prior year baseline which
would gradually be reduced towards 2030. Due to the conversion
to an import terminal, Channel Infrastructure is substantially less
exposed due to having virtually no Scope 1 emissions and much
lower Scope 2 emissions (c. >98 per cent total reduction on a
2019 baseline).
The remaining direct exposure is associated with Scope 2
emis
sions from electricity consumption with the cost reflected in
the wholesale electricity price, noting electricity consumption has
decreased (by almost 90% per cent) following conversion.
Direct exposure to national climate policy is
s
ubstantially lower following the Marsden Point
conversion on the basis that direct (Scope 1
and 2) emissions are significantly lower. To further
mitigate our carbon pricing risk exposure, we
will continue to explore opportunities to develop
renewable energy supply through our Maranga
Rā solar project and other battery/solar projects
planned for the region - either on a standalone
basis or with partners.
51
Channel Infrastructure NZ Limited | Delivering a sustainable future

TOPIC
DESCRIPTION OF RISK/OPPORTUNITYMANAGEMENT ACTIONS AND PLANS
Risks – Medium term
Following conversion to an import terminal, our direct Scope 1 and
s
ome indirect Scope 2 emissions have moved upstream in our
value chain, increasing upstream emissions in the shift. We would
expect supply chain emissions intensity (i.e. per unit of product
used by customers) to decrease over time with the opportunity
to source fuel from larger, more energy efficient refineries in
Asia. Our large storage capacity at Marsden Point is able to
support larger shipping vessels, providing opportunity for further
improvement in emissions efficiency of delivered fuel and lower
upstream emissions intensity.
Our business will, however, still be engaged in distributing refined
oil products. As the NZ ETS increases pressure on emissions-
int
ensive businesses, unpredictable carbon price impacts may
result along our value chain (linked to customer emissions). These
include the potential for indirect impacts if our customers in the
fossil fuel sector experience financial stress.
Different
pacing of policy development in New Zealand compared
to other regions may also result in volatile supply and demand
dynamics across the transport fuel sector more broadly. In an
extreme case, these dynamics may negatively influence the
availability and affordability of fuel and consumer purchasing
decisions in New Zealand.
We have a long history of working with the
Ne
w Zealand Government to reduce emissions,
and continue to advocate for effective policy
design and implementation. Our intent is to work
with the Government to support and facilitate
the objectives of climate change policy while
considering the need for a smooth and fair
transition for emissions- intensive industries.
We submitted our considered feedback to a
number o
f Government consultation processes in
this area, including New Zealand’s first emissions
reduction plan as well as the Sustainable Biofuels
Mandate. We will continue to closely monitor the
policy environment to understand implications for
our sector and customers and, where appropriate,
work with officials on supporting policy design.
In addition, we are committed to actively working
with our cus
tomers to measure and monitor Scope
3 emissions, and by utilising our infrastructure to
mitigate these to the best of our abilities.
Opportunities:
The fuel and transport sector
significantly contribute to climate
change. In New Zealand, emissions from transportation (still mostly
powered by fossil fuels) make up 21 per cent of the country’s
annual greenhouse gas emissions. The New Zealand Climate
Change Commission’s official 2021 carbon budgets highlighted
that the transport sector must electrify and increase its use of
biofuels, recommending a near-term focus on electric light vehicle
uptake with the decarbonisation of heavy transport and aviation
fuels to occur over a longer period of time. 
Our strategic location and existing infrastructure assets can
r
eadily be used to import, store and distribute biofuel quantities
across our primary Auckland and Northland markets. Longer term,
opportunities may also exist for the company to be involved in
direct manufacture of these fuels, should this be viable.
Channel Infrastructure’s strategic framework
includes a strategic focus on supporting New
Zealand’s transition to a lower-carbon economy.
To this end, we are in discussions with
our customers on the potential use of our
strategic infrastructure assets to enable the
receipt, storage, testing and distribution of lower-
emission fuels (biofuels, renewable fuels, and SAF).
Longer-term opportunities being explored include
production or storage of new energy sources such
as hydrogen.
Please see the ‘Business Planning’ section of this
r
eport for further information on the fuel demand
models used to underpin our business planning.
52
Channel Infrastructure NZ Limited | Delivering a sustainable future

TOPIC
DESCRIPTION OF RISK/OPPORTUNITYMANAGEMENT ACTIONS AND PLANS
MarketsRisks – Short, medium and long term:
Uncertainty in some market signals may affect our business
planning. For e
xample, electric vehicle uptake rates, market
adoption of biofuels and use of hydrogen in transport and other
applications will all influence the volumes and types of fuel
commodities imported, distributed and potentially manufactured
by our business over time.
First generation biofuels (as distinct from second generation or
‘
drop-in’ fuels), which can only be blended in small volumes,
cannot be distributed via the pipeline to Auckland due to the risk
of contamination of jet fuel supply, meaning that these fuels will
need to be distributed via truck and road to the Auckland market,
potentially by-passing our infrastructure.
Channel Infrastructure operates under long-term
agr
eements with our three existing customers
(bp, Mobil and Z Energy) for the provision of
import terminal services. Long-term agreements
are also in place with customers to provide
dedicated private storage. These agreements
provide security for our business to navigate
near term changes in supply and demand of
different fuel commodities while exploring future
opportunities to import, store and potentially
manufacture lower carbon fuels, and assist the
government in maintaining NZ’s fuel security via
additional stockholding of diesel at Marsden Point.
Please see the Business Planning section
on
page 34 for further information on the
fuel demand models used to underpin our
business planning.
Opportunities:
As New Zealand tackles the challenge of decarbonisation, new
mark
ets for low or zero carbon fuels and associated storage
and infrastructure requirements are expected to evolve and grow
in response to policy drivers (as discussed above). In practice,
decreasing costs and shifting customer preferences towards these
fuels may further accelerate market growth, presenting strong
opportunities to diversify Channel Infrastructure’s core business
services and products.
Second-generation biofuels (including Sustainable Aviation Fuel),
which can be blended in much higher v
olumes, are suitable for
distribution via the pipeline to Auckland, at one tenth of the
emissions of equivalent road transport.
Channel Infrastructure has already received,
s
tored, tested and distributed the first import
of SAF into New Zealand. Channel Infrastructure
is also working in partnership with Fortescue
Future Industries to explore the feasibility of
green hydrogen production at Marsden Point,
for domestic consumption. Please refer to the
management actions summarised in the Policy
topic above for more information.
LegalRisks – Short, medium and long term:
Channel Infrastructure has on-going responsibilities to disclose
and manage foreseeable risks, including climate change.
Recent years have also seen an increase in climate- related
litigation claims b
y parties including climate activist groups
and shareholders. For example, Refining NZ was one of seven
defendants in High Court proceedings brought by a Northland
climate change activist in 2020 attempting to legally force a
reduction in greenhouse gas emissions (the claim was struck out,
which the applicant has appealed). Execution of the Marsden
Point conversion is expected to
significantly reduce the risk of
similar direct litigation in the future. However, we will continue to
be linked to the fossil fuel supply chain more broadly in the short to
medium term.
As detailed in the Governance section of this
r
eport, our Board is regularly briefed on climate
change-related issues, and opportunities for
repurposing our assets.
The Board’s oversight is also reflected in the
endor
sement of the Company’s Climate Change
Statement (published on page 18 of this report
and on our website). This Sustainability Report,
including climate disclosures, align with the
recommendations of the TCFD.
We also continue to monitor climate change
litigation in our s
ector to ensure awareness of
potential indirect impacts on our business.
53
Channel Infrastructure NZ Limited | Delivering a sustainable future

TOPIC
DESCRIPTION OF RISK/OPPORTUNITYMANAGEMENT ACTIONS AND PLANS
Reputation
and social
licence
Risks – Short to medium term
:
Investors and other stakeholders (including our workforce and
local communitie
s) take an active interest in our approach to
managing climate-change related risks to, and opportunities
for, the business. This is of particular relevance given the
Company transitioned away from fossil fuel refining to the more
flexible import terminal system, aligned with New Zealand’s
decarbonisation goals.
Channel Infrastructure is still engaged in storing and distributing
refined
fuel products following our business conversion; as such
some exposure also remains to negative public attitude towards
fossil fuels. Among other impacts, this could affect our ability to
attract and retain talent.
We work closely with our investors, iwi, local
communit
y, and other stakeholders to ensure
we understand and meet their expectations
on climate change-related matters. The strong
shareholder endorsement of the Marsden Point
Conversion Proposal indicated alignment on the
fundamental strategic direction of the business,
including acknowledgement of key climate-
related issues. We will continue to proactively
disclose our approach and progress on climate
change-related risks and opportunities, including
periodic reviews and updates to this report.
Our focus during 2022 and into 2023 is on
s
upporting those impacted by the change from
refinery to terminal operations. Key commitments
include a minimum six month notice period and
six months’ redundancy pay, as well as access
to a broad range of training and placement
programmes. Refer to the case study set out on
page 77.
Opportunities:
The changes made and approach taken by Channel Infrastructure
t
o ensure a just transition for our people has provided a
valuable opportunity to enhance our reach and reputation.  By
demonstrating leadership, inclusive growth and adaptation, we
have worked hard to ensure our social licence is maintained and
reputation is strengthened, putting us in a strong position to
implement future growth strategies.
We see further opportunities to strengthen our reputation through
activ
e involvement in the provision of low-carbon fuels to the New
Zealand market in the medium to long term.
We have made a number of commitments and
in
vestments to prioritise and deliver on a just
transition for those affected by the conversion of
the Marsden Point operation.
To further support our business-wide commitment
t
o a just transition, our 90 per cent target
for employees finding a new role or retraining
within six months (described above) has once
again been integrated into remuneration for
all employees via inclusion in the Company
Scorecard in 2023.
TechnologyOpportunities:
Technological advancements in the manufacture, transport and
end-uses of low carbon fuels may accelerate their uptake across
the New Zealand economy. This represents a sustainable growth
opportunity for Channel Infrastructure to diversify our role as a
provider of critical energy services to the economy.
During 2021, we completed a comprehensive
r
eview of opportunities for repurposing
components of the Marsden Point site following
the conversion. This included careful consideration
of technological feasibility and maturity of
different options, with extensive consultation
undertaken across subject matter experts,
potential partners and international
refineries.
This review
  identified a  number  of  prospective
options across the three future time horizons
considered.  One of these has resulted in
the current partnership with Fortescue Future
Industries to study the feasibility of green
hydrogen production at Marsden Point for
domestic consumption.
In addition, we continue to monitor domestic
and int
ernational technology developments
which may represent commercially attractive
opportunities for our business.
54
Channel Infrastructure NZ Limited | Delivering a sustainable future

TOPIC
DESCRIPTION OF RISK/OPPORTUNITYMANAGEMENT ACTIONS AND PLANS
Physical
– acute/
chronic
Risks – Short, medium and long term
(flooding disruptions):
Channel Infrastructure’s Marsden Point operation is located on
the eas
t coast of New Zealand, at the entrance to Whangarei
Harbour and about 140 kilometres north of Auckland.
Due to the location of the import terminal at the entrance to
the W
hangarei Harbour, the operation is vulnerable to extreme
(acute) weather events such as storm surge or storm tide events.
These may increase in frequency and severity over time, due to
climate change. Subsequent flooding of the site could result in
asset damage and business disruption including impacts along
the supply chain.
In addition, chronic impacts such as rising sea levels may reduce
futur
e effectiveness of the natural fore-dune barrier (between 6-12
metres) protecting the Marsden Point site, which is situated 4.3
metres above mean sea level.
We actively plan and prepare for weather
impact
s on our site and assets, with well-
developed response systems, coastal erosion
management framework and established incident
management processes. 
In recent years, we have improved the resilience
o
f our site to severe weather events through
investments in our stormwater management
systems and dune protection improvements.
We maintain Material Damage and Business
Int
erruption insurance for property damage and
consequential business interruption as a financial
mitigation of these risks. In 2022, following the
transition to import terminal activities, the scope
of cover was adjusted to reflect that of a
terminal business. 
In 2023, Channel Infrastructure will undertake
fur
ther scenario modelling and assessment to
understand the physical impacts from a more
severe climate change (a 4 degree global
warming scenario).
We also continue to monitor Climate Change
P
rojections for New Zealand prepared by
the Ministry for the Environment (MfE) (which
draw on climate model simulations from the
Intergovernmental Panel on Climate Change).
Risks – Short, medium and long term (erosion impacts):
Increasing frequency and severity of extreme weather events
incr
eases the risk of significant one-off erosion events at Marsden
Point, noting that existing coastal processes have already been
observed to be causing ongoing erosion issues.
In addition, climate change induced sea level rise over time will
incr
ease erosion-related risks.
A coastal erosion hazard management strategy
has been in place f
or the site since 2013. The
plan was prepared with consideration of the
adapted risk-based framework of the Ministry
for the Environment’s (MfE) Coastal Hazards and
Climate Change Guidance Manual (2008).
Surveys of the coastal foreshore around the
location ar
e undertaken regularly, and we are
currently awaiting results from the most recent
survey completed in November 2022.  Information
collected is used to inform and manage the risks
from coastal erosion, integrated with the latest
inundation maps and predicted coastal erosion
lines from the local Northland Regional Council.
The company hold the necessary consents to
under
take further coastal erosion protection works
if required.
55
Channel Infrastructure NZ Limited | Delivering a sustainable future

Our 2022
performance
56
Channel Infrastructure NZ Limited | Delivering a sustainable future

Health, safety and wellbeing
2022 Performance Highlights
Safe
Shutdown and decommissioning of refinery
0
Tier I or Tier II process safety incidents
2209
Hauora Hikoi (Safety Walks) and Hauora
K
ōrero (Safety Talks)
1.8
TRCF and LTIF of 0.77 achieved through
significant
transition.
100%
Marsden Point to Auckland pipeline
inspected using a Pipeline Integrity Gauge
20%
Reduction in fatigue risk through new shift
and r
oster system for the terminal
57
Channel Infrastructure NZ Limited | Delivering a sustainable future

Personal health, safety and wellbeing
Our Approach
The safety of our workplace and the health and
w
ellbeing of our people are an intrinsic part of our care
value, which sits at the heart of the on-site culture.
We see safety as inclusive of the physical, mental, and
s
ocial aspects of the issue. We have a responsibility
to provide safe and healthy working conditions for
all employees and contractors working for us. This
responsibility is a core aspect of our business and
is grounded in the United Nations' Guiding Principles
on Business and Human Rights (UNGP) and the UN
SDG 3 Good Health and SDG 8 Decent Work and
Economic Growth.
We maintain our commitment of ‘Everyone Safely Home
Ev
ery Day’ and actively value and protect the physical
and mental health and safety of all those who come to
our site, be they permanent employees, contractors, or
visitors. We acknowledge this is a critical responsibility
and that our operations contribute to the welfare of
our people and the surrounding communities. We also
acknowledge the International Labour Organization (ILO)
and United Nations' Guiding Principles on Business and
Human Rights (UNGP) definitions for workplace health
and safety
1
, as well as the link to a universal human right
to work safely.
Our 2022 Performance
Our transition from a
refinery to an import terminal
created change and uncertainty for many of our team;
supporting them through this period, not just into their
future employment opportunities but in their mental
health, has been a huge focus for the business. Ensuring
we have a broad range of mental health support services
available was, and continues to be, key to contributing to
the wellbeing of our
staff.
Fatigue Management
As part of our planning for the establishment of a new
r
oster structure to operate the import terminal business,
we engaged expert external consultants, to provide
advice in relation to shift and roster design to help
manage fatigue and work/life balance while still meeting
business needs. The case study set out on page 60,
outlines how biomathematical modelling was used to
reduce risk, and deliver a new shift pattern for our team.
Kaihautū (Leader) Safety Awards
To support the Company’s focus on safety and mental
w
ellbeing across site, we developed the E Tū Tangata
(Stand in the Gap) safety culture programme. This
employee-led initiative incorporates values from Te Ao
Māori into the culture strategy and celebrates diversity,
which has contributed greatly to the health, safety and
wellbeing culture that we have on site today. Each
quarter we celebrate safety leadership through the
Kaihautū (Leader) safety awards which aims to empower
front-line workers to take ownership of thier own, and
their team's safety, and recognises a member of the team
who has had a tangible impact on safety across the site.
1
The ILO considers health, safety, and wellbeing in the workplace — often referred to as occupational health and safety (OHS) as the “discipline
dealing with the pr
evention of work-related injuries and diseases, as well as the protection and promotion of the health of workers”. The UNGP defines
occupational safety and health as the improvement of working conditions and working environments for workers to ensure their safety and health
are maintained while working and provide compensation if a work-related injury occurs. These international instruments are grounded in the Universal
Declaration of Human Rights Article 3, which states “everyone has the right to life, liberty and security of person”.
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Channel Infrastructure NZ Limited | Delivering a sustainable future

‘Care’ Framework
This framework provides key support services to ensure
all emplo
yees have access to support for their mental
health. Care, an initiative that started as a way of
supporting our people during major workforce changes,
includes on-site counselling, workshops and wellbeing
initiatives designed to support mental health, and
COVID-19 support. Care also includes our ‘Grow Hub’
which provides ongoing transition support in the form of
workshops, coaching and ‘lunch and learns’ to support
our people with vital job seeker initiatives. This framework
of support remains an ongoing resource available to staff
at all times.
Hauora Hikoi and Hauora Kōrero
Underpinning the safety initiatives and structures are
our Hauor
a Hikoi (Safety Walks) and Hauora Kōrero
(Safety Talks), which are undertaken by people across
the business.  These initiatives encourage site leadership
and workers to engage on safety across our site, through
on-site visits and toolbox talks. In 2022, over 1,260 safety
discussions (Hauora Kōrero) were undertaken across the
business, providing an opportunity for colleagues to
discuss and learn from each other. There were over 940
safety walks (Hauora Hikoi) undertaken as well, which is
an important investment of time by our team in sharing
knowledge from different operations across the business.
COVID-19 Support
Throughout 2022, we continued to support our people
with the impact
s of the COVID-19 virus. As well as
maintaining strict on-site protocols to keep our people
safe at work, and adherence to the most up-to-date
Ministry of Health advice, we provided additional tailored
support measures to those who were isolating with the
virus. This was important to ensure that our people who
were sick had the support they needed at home to
recover and return to work. As a result of our strict on-
site protocols, we were able to ensure safe operations
and maintain minimum staffing levels throughout the
high-ris
k shutdown period, as well as subsequently
throughout decommissioning.
Total Recordable Case Frequency (TRCF)
and Lost Time Injury Frequency (LTIF)
From a personal safety performance perspective in
2
022, with the change in intensity and type of work
associated with refinery decommissioning and conversion
project work we’ve seen an increase in minor injuries
occurring on site and our recordable and lost time injury
frequency rates were 1.80 and 0.77 per 200,000 hours
worked respectively. (2021: 0 TRCF, 0 LTIF). While each
of these events presented important lessons from which
we have embedded learnings, none of the injuries that
occurred in 2022 were serious and all workers have
made a full recovery and returned to work. Given the
period of significant change and uncertainty, including
the shutdown and decommissioning of the refining plant,
it is a very significant achievement by our employees and
contractors working on site, that this work was completed
without any serious safety incidents – an achievement
that we are very proud of.
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Channel Infrastructure NZ Limited | Delivering a sustainable future

Case Study - Fatigue Management
We remain a continuous, 24/7, 365 days a year operation,
therefore to meet our operational and business needs,
we must work hard to manage, and mitigate risk when
undertaking rotating shift work during non-standard
hours.  Our operations today may be simpler than when
we were running a refinery, however, we continue to
manage safety-critical processes requiring an effective
fatigue risk management approach. As part of our
preparation for the transition to a new business model,
a key component in the design of the organisation
structure was the management of fatigue risk, and a
focus on "shifts and rosters design".
With the support of specialist consulting firm Melius, we
aimed t
o:
• Develop a shift and roster system that reduced risk
to team members, supported good work/life balance
and gave our team flexibility
• Comply with relevant laws and regulations regarding
w
ork environment safety and occupational hazards in
New Zealand and align with global best practices
• Deploy a shift and roster system that meets the
bus
iness's operational and cost requirements.
We engaged with operational leaders, Operations team
member
s, as well as members of our Human Resources
and Health and Safety teams to ensure all variables
and inputs were considered. We utilised a validated
scientific
tool known as biomathematical modelling to
analyse the current and proposed shifts and rosters.
This combination of biological factors and mathematical
formulas provides a numerical output that can be
equated to risk, alertness, or cognitive impairment.
Biomathematical modelling has been used successfully
for designing, evaluating and assessing work hours or
optimising physical and human resources in mining,
military, rail and aviation.
Using the Safety Activity Fatigue Task Effectiveness
(SAFTE) model, an algorithm incorporates a range of
modelling t
echniques and takes account of external
factors such as natural light cycles and sleep variables. 
Utilising a combination of engagement workshops,
communication s
essions and scientific analysis, we
developed a shift and roster system for a five-week
rolling period that met operational needs, allowed up to
three weekends off over the five weeks, minimised night
shifts, allowed flexibility and complied with the Health
and Safety at Work Act 2015 (HSWA) and 'Managing
the risks of shift work guidance for PCBUs', April 2021
issued by WorkSafe NZ.. More importantly, the shift and
roster system was assessed as delivering a 20 per cent
reduction in risk compared to the previous rosters in place
at Marsden Point.
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Channel Infrastructure NZ Limited | Delivering a sustainable future

Operational safety
Our Approach
As the provider of infrastructure that is critical to the
Ne
w Zealand transport fuels' supply chain, we take our
obligations seriously to ensure the safety and reliability of
our infrastructure to keep Aotearoa moving. 
Given the criticality of our infrastructure, we have
a compr
ehensive Safety Management System which
covers both the Marsden Point site and the pipeline
operations.   As a high hazard facility, we work within
a s
ystem of stringent safety policies and controls to
comply with New Zealand’s Health and Safety at
Work Act 2015. To demonstrate our ability to operate
safely with control over potential hazards, we have a
comprehensive Safety Case.  The Safety Case details
the hazards that, left unchecked, could result in major
incidents, along with the measures used to prevent
such incidents occurring and the emergency response
systems to reduce consequences should an incident
occur.  A summary of Channel Infrastructure’s Safety
Case is available on our website at www.channelnz.com.
Asset Management Plans
As part of the broader business transition, we are
curr
ently developing detailed asset management plans
to outline the activities and investment required to ensure
the long-term sustainable safe and reliable operation of
our infrastructure assets. Through the asset management
process, our strategic objectives and asset performance
requirements are translated into the asset lifecycle
decision process. In this way we ensure that future asset
maintenance, upgrade and replacement supports the
needs of the business and stakeholders.
The completion of the asset management plans is a key
f
ocus for 2023 to ensure that we have robust asset plans
in place from 2024.
Maintaining the Operational Integrity of
our Pipeline
The Marsden Point to Auckland Pipeline supplies most
o
f Auckland’s fuel requirements and all of the jet
fuel to Auckland International Airport. It is critical
to our operations and critical to New Zealand’s fuel
supply chain.
We undertake rigorous monitoring and strict compliance
activitie
s to ensure pipeline integrity is maintained,
this includes monthly patrols along the length of the
underground pipeline, as well as ongoing communication
with the owners of land through which the pipeline
easement passes. We also work hard to ensure that
landowners are aware of the requirements that apply
within the designated easement area of the pipeline,
and what activity is and is not permitted. The pipeline
is identified in district planning maps of three councils
(Whangarei, Kaipara, and Auckland) appearing in council
computerised databases, and is registered on all relevant
land titles. 
The pipeline operates under a mandatory
Certificate
of Fitness issued by an accredited Inspection Body
on a five-yearly basis with annual surveillance audits
for compliance and demonstration of its Integrity
Management System.
Our pipeline traverses 170km of land ranging from rural
f
armland, sensitive ecological areas to the busy urban
environments of Auckland. To ensure the pipeline does
not impact on this diverse range of environments, as
part of the pipeline management system we maintain
an Environmental Management System (EMS) to the Code
of Environmental Practice – Onshore Pipelines, produced
by the Australian Pipelines Gas Association (APGA). The
management system has been set in place to ensure
that all aspects of work performed by staff, contractors
and s
ervice providers will have minimal impact on the
environment – including landowners, public, flora and
fauna and existing historical sites and infrastructure.
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Channel Infrastructure NZ Limited | Delivering a sustainable future

All known areas of sensitivity are red flagged on the
1km-
wide corridor from Marsden Point to Wiri in South
Auckland. Our maps are reviewed for any new areas
requiring additional protection for their sensitive nature.
With the continued support of Channel Infrastructure
staff, contractors, consultants, local authorities and
landowners, we maintain it to the AS 2885.3 Standard.
In 2017, the pipeline
suffered a disruption, when a digger
operating in the easement without authorisation struck
the pipe and caused it to rupture. The Government
initiated a review into the incident which found that
Refining NZ had properly maintained the pipeline and
easement. Since the review’s completion, our company
has undertaken all additional recommendations directed
to us to strengthen protections of the pipeline and
we continue to advocate for the resolution of other
recommendations, including action on Auckland's jet fuel
storage capacity and infrastructure protections.
Our 2022 Performance
A strong focus for the business in 2022 was to
s
afely transition our high hazard facilities to import
terminal operations. This complex task has involved the
successful shutdown and decommissioning of the refining
plant, project work to support terminal operations
and s
ubstantial changes to our safety and emergency
management systems to ensure safe operation of the
terminal business. We are delighted that this transition
has been achieved safely, while supporting our long-
serving workforce through the change and uncertainty.
Safety Case
Our comprehensive Safety Case was updated to reflect
import terminal operations in 2022 and approved by
W
orkSafe. For more detail, refer to our Safety Case
Summary available on our website (www.channelnz.com).
Tier 1 and 2 Process Safety Incidents
We had zero Tier 1 or Tier 2 process safety incidents
in 2
022, an improvement from the previous year’s
performance of two Tier 1 incidents, which is a
considerable achievement given the complexity of works
undertaken through the refinery decommissioning and
con
version work.
Emergency Response Training
During 2022 we have completed a broad range of
emer
gency exercises and emergency response training
as part of our transition to terminal operations.
This included training of terminal operations staff on
terminal emergency response procedures, multi-agency
exercises with Fire and Emergency NZ to test terminal
emergency and incident management procedures, and
oil spill response training for all terminal operations
staff, including two oil spill response exercises in
conjunction with Maritime NZ and Northland Regional
Council. Through our transition programme we are
making considerable investments in emergency response
equipment, facilities and training to ensure that we are
well placed to respond to emergency situations that
may arise at Marsden Point, until emergency response
agencies arrive.
Pipeline Integrity Management
In 2022, we carried out two
significant land slip
remediations in northwest Auckland to stablise ground
around our pipeline and prevent potential damage
to the pipeline. After having completed remediation
of all previously identified maintenance in 2021, we
completed the regular full inspection of the pipeline
internals in 2022 using a Pipeline Integrity Gauge which
provides assurance regarding the ongoing integrity of
the pipeline and helps plan any future maintenance
requirements.  Further information is provided in the case
study set out on page 63.
OUR FOCUS FOR 2023
Maintaining safe and reliable terminal operations
Publish the
first iteration of the terminal asset management plan
Transition of primary emergency response capability to external agencies
Embedding the new safety and compliance management systems
Optimising preventative maintenance programmes and maintenance execution model
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Channel Infrastructure NZ Limited | Delivering a sustainable future

Case Study – Managing the Pipeline
Given the criticality of the pipeline to our business, and
to keeping Auckland supplied with fuel, we undertake
rigorous monitoring and strict compliance activities to
ensure the integrity of the pipeline is maintained.  To
get an accurate picture of the inside of the pipeline,
every five years, we send an exceptionally accurate in-
line inspection tool called a Pipeline Integrity Gauge (PIG)
through the pipeline, to determine the precise condition
of the pipeline and to pinpoint any locations where
maintenance may be needed.
In October 2022, working with ROSEN who own the
t
echnology, we undertook our latest PIG survey to check
every millimeter of the 170km pipeline, inspecting for a
number of important characteristics both inside, and
along the outside easement of the pipe. The survey
compares its millimetre-by-millimetre assessment of the
internals of the pipe against past datasets to detect
an
y changes so we can carry out early preventative
maintenance. The PIG survey checks for things including
wall thickness, integrity, any sign of future stress fractures,
or potential areas of cracking, and gives us an accurate
picture of what is happening beneath the ground and
inside the pipe.
The results of our most recent survey are designed to
confirm
that the pipeline is in good shape for continued
use which will enable us to complete a comprehensive
Fitness for Service (FFS) assessment report supporting
the pipeline Certificate of Fitness.  With these important
checks undertaken, we are assured of the integrity of
the pipeline, and can continue uninterrupted operation of
this piece of nationally significant infrastructure, keeping
Auckland supplied with the transport fuel it needs.
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Channel Infrastructure NZ Limited | Delivering a sustainable future

Environmental
performance
2022 Performance Highlights
>98%
Reduction in Scope 1 & 2 emissions
30%
Reduction in the extent of the legacy
gr
oundwater contamination in past 6 years
Over 1,255
Tonnes of decommissioned metals recycled
78%
Reduction in water consumption during
2
022, saving 641 M litres
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Channel Infrastructure NZ Limited | Delivering a sustainable future

Our Approach
Channel Infrastructure is committed to maintaining the
highe
st standard of environmental performance and
protecting the unique environment in which we operate.
We take these commitments very seriously. We also
live and work at Marsden Point and the surrounding
community is our community too.
As noted earlier, Channel Infrastructure seeks to
r
educe our carbon footprint, build resilience to climate
change risks, and responsibly contribute to achieving
New Zealand and global decarbonisation targets.
We seek to do this while acting as responsible
managers of the land and sea upon which we
operate. Moreover, our environmental commitments
extend beyond carbon emissions to include waste,
wastewater, land contamination and erosion, all of which
must be managed responsibly.
We actively plan and prepare for weather impacts
on our s
ite and assets, with well-developed response
systems, coastal erosion management framework and
established incident management processes.  In recent
years, we have improved the resilience of our site
to severe weather events through investments in our
stormwater management systems and dune protection
improvements.  In 2023, we will be undertaking work to
assess site resilience to an extreme 4 degree warming
scenario to inform a range of short and long-term
coastal erosion management options and ensure robust
long-term Asset Management Plans are in place. 
In addition to the above we are developing a Coastal
L
andscape Management Plan in conjunction with our iwi
partners, which will, among other things, include dune
planting to improve dune resilience to erosion events.
Our environmental management systems include
monit
oring of our discharges to air and water,
soil and groundwater management, awareness and
permit to work controls, as well as cleaning and
remediation of all leaks or spillage. More information
on our environmental management systems can be
attained on the Environment section of our website
at www.channelnz.com.
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Channel Infrastructure NZ Limited | Delivering a sustainable future

Atmosphere and climate change
To hold ourselves to account and ensure that we focus our efforts where we can make the most impact along our
Climat
e Transition Roadmap, in early 2022 we set a range of transition targets and measure our performance against
those targets. Our targets are:
Net Zero
Net zero Scope 1 and 2 emissions by 2030

Customer Scope 3
Our infrastructure is utilised to support the decarbonisation of New Zealand’s transport
sector and facilitate customer Scope 3 emission's reduction by 2030

Just Transition
At least 90 per cent of employees seeking new employment find new roles, or have
been retrained, within six months.

In this section, we outline our 2022 performance outcomes against the first two targets.
TARGETTARGET DELIVERABLE2022 ACTIONS2022 PERFORMANCE OUTCOMES
NET ZERO
Net zero Scope 1
and 2 emis
sions
by 2030
• Following closure of the
refinery,
our emissions
are primarily from our
electricity use and the
use of some diesel for
vehicles and pumps on
our site.
• We will seek to eliminate
our r
esidual Scope
1 and 2 emissions
through operational
improvements,
renewable electricity
supply and the
use of high-quality
offsets, where emissions
r
eductions are not
otherwise accessible.
• We see opportunity
t
o move to renewable
electricity supply.
• With the
refinery closure and decommissioning
completed, Scope 1 and 2 emissions reduced
from 1,257,173 tonnes C02 in 2019 to 284,261
tonnes in 2022.
• From Q2 2022, following the refinery closure, we
s
aw a >98 per cent reduction of CO
2
emissions
from site compared to 2019 levels.
• It is acknowledged that some of the Scope
1 and S
cope 2 emissions will have moved
upstream in our value chain. Nonetheless,
the emissions intensity of the fuel that our
infrastructure delivers to customers is expected
to decrease over time as discussed in Our
Climate Transition Roadmap on page
38.
• Following the conversion, emissions from direct
(S
cope 1) sources are now minimal, arising
from small quantities of fuel combustion in
vehicles, off-road equipment, boilers, pumps
and generators, as well as some ongoing
fugitive emissions from tanks, valves and
flanges. Scope 2 emissions largely come from
consumption of electricity generated off site.
• In August 2022, we issued an RFI seeking
pr
oposals for long-term electricity supply.  We
are currently exploring opportunities to improve
our electricity supply.
• The reduction in our
s
ite emissions by over
98 per cent (>1 million
Tonnes of CO
2
per annum),
has directly contributed
half of the required
emissions reductions New
Zealand needs to
meet its first emissions
reduction budgets.
• An almost 90 per cent
r
eduction in electricity
consumption and no
natural gas requirements –
reducing thermal generation
demand and supporting
New Zealand’s wider efforts
to decarbonise.
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Channel Infrastructure NZ Limited | Delivering a sustainable future

TARGETTARGET DELIVERABLE2022 ACTIONS2022 PERFORMANCE OUTCOMES
CUSTOMER
SCOPE 3
Our infrastructure
is utilis
ed to
support the
decarbonisation of
New Zealand’s
transport sector
and facilitate
customer Scope 3
emissions reduction
by 2030
• Customer emissions,
including end-us
er
Scope 3 emissions,
make up the
majority of Channel
Infrastructure’s supply
chain emissions profile.
• Channel Infrastructure
has a critical r
ole to
play in finding solutions
to deliver transport
fuel which is low-
carbon, affordable and
available when needed.
• Our goal is to
ens
ure that our
existing infrastructure
is utilised to support
the decarbonisation
of New Zealand’s
transport sector through
the use of biofuels
and Sustainable
Aviation Fuel.
• We are committed
t
o working with
customers to measure
and manage Scope
3 emissions.
• Discussions are underway with customers and
Go
vernment on the infrastructure required to
support the biofuels obligation.
• Discussions with Air NZ continue regarding the
Air NZ/MBIE S
AF feasibility study.
• Fortescue Future Industries study is underway
int
o the feasibility of producing green hydrogen
and green hydrogen products at Marsden Point
for domestic use in New Zealand, with the
range of potential uses including natural gas
substitution, transport fuel and the production
of SAF.
• First SAF import into the
countr
y received through
Marsden Point in September
2022 and delivered via the
pipeline into Auckland.
• First phase of the Fortescue
Futur
e Industries (FFI)
study completed.
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Channel Infrastructure NZ Limited | Delivering a sustainable future

Land, waste and water
In 2021, we undertook an extensive investigation of
the impact
s of our operations as part of our resource
consent renewal and in preparation for our transition.
This assessment reviewed our operations’ effects on the
harbour, land, air quality and the surrounding community
and found that there has been minimal impact beyond
our boundary or risk of harm to the environment. Our
operation today as an import terminal remains
firmly
in line with the heavy industrial zoning of the Marsden
Point area. We worked closely with the Northland
Regional Council and iwi, and in 2021, we were granted
a Resource Consent with a 35-year term to continue
operating our heavy industrial site.  The consent set
sound environmental standards for the management of
our site over the long-term, given we have a long-term
commitment to remain operating at Marsden Point.
Following the shutdown of the refinery
processing
units, we continue to work hard on remediating the
groundwater beneath our site, due to the presence
of legacy hydrocarbon contamination.  Our extensive
groundwater remediation network of 140 wells, spread
across our entire site, have been continuously operating
for a number of years to contain and reduce this
contamination. And it’s working: over the past six years
we have seen a 30 per cent reduction in the size of
this legacy contamination, and we expect to see this
continue to decline over the coming years, now that
we have stopped refining. We will continue working to
fix this legacy contamination, and we have allocated
funding to continue this important work and ensure
that the groundwater that leaves our site remains free
of hydrocarbons.
Unlike other industrial sites in New Zealand, there are
no s
tockpiles of leftover toxic materials from oil refining
that need to be disposed of at Marsden Point. That
is because, when we were operating as a Refinery, we
recycled, reused, or sold all of the by-products and
waste from the refining process: from CO
2
and bitumen to
sulphur for use in the fertiliser industry. Other waste such
as catalyst was sent
offsite for reprocessing or disposal.
An important part of the closure of any heavy industrial
pr
ocess, is the decommissioning of the assets that are no
longer required.
Permanent decommissioning of the refinery process plant
is no
w nearing completion and on track to be completed
in the first half of 2023.  The refinery will be left in a
state that is safe and structurally sound for at least 10
years allowing time for us to explore options for future
repurposing of these parts of the site. The huge task of
decommissioning involved:
• The removal of over 1,500 tonnes of catalyst which
is r
eady for export to Singapore, where it will be
regenerated for reuse in other facilities 
• 1,255 tonnes of steel sent for recycling
• 219 heat exchangers removed for recycling
• More than 100 columns and vessels opened and
cleaned, with 99 per cent o
f all hydrocarbons removed
from processing units.
More information about our waste management plans
can be f
ound on page 71.
Waste
Steel, aluminium, paper and other waste is recycled
r
esponsibly. As part of our waste management
programme, we recycled more than 1,255 tonnes of
material, including steel, aluminium and additional wood
from the decommissioning of the refinery.  Read more
in our Waste Management case study on page 71 of
this report.
Wastewater
Wastewater on-site is treated through our on site
effluent
water treatment plant. Stormwater, treated
wastewater and  recovered groundwater is collected in
our stormwater basin where it is continually monitored
before being discharged to ensure it remains within the
strict quality limits of our resource consent. In recent
years, we have invested c.$25 million in improving our
wastewater collection and treatment systems to ensure
they remain robust. During 2022 we experienced a
number of severe weather events, resulting in 3 non-
compliances with our consent conditions. We have acted
promptly to report, investigate and embed learnings from
these events to ensure our systems are robust to future
weather events.
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Channel Infrastructure NZ Limited | Delivering a sustainable future

Water Consumption
As a result of the transition to import terminal operations
our s
ite water consumption has already reduced
considerably. Water consumption for the second half of
2022 was around 839 m3 per day, a reduction of 78
per cent on the prior refinery operation, and we plan
to reduce this further as the final stages of the refinery
process plant decommissioning is completed in 2023.
Erosion Management Strategy
Recent studies have observed and confirmed evidence
o
f erosion at the coastal site boundary, and identified
the future possibility of ongoing erosion events, such as
storms and tsunami aggravated by sea level rise and
changing weather patterns because of climate change.
Our erosion management strategy aims to manage the
dynamic coastal environment in which we operate in a
way that provides resilience to our nationally significant
infrastructure while appropriately recognising its wider
social, cultural, and environmental values.
The strategy includes monitoring of the dunes of the
coas
tal foreshore to track movement or recession over
time. Our mapping, along with information from the
Northland Regional Council, has been used to predict
and track expected retreat of the dunes over the next
35 to 50 years so that we can make the necessary
investments now to manage the potential retreat from
land that is most at risk of weather-related impacts
over this time period. Our most recent coastal survey
was undertaken at the end of 2022 and will be used to
update our erosion management strategy.
Site Remediation
An important piece of work that remains ongoing
is the r
emediation of our site, following the refinery
closure.  There is an ongoing need to remediate the
groundwater beneath our site, and work to complete
this is fully funded for the lifetime of the project. During
the time the refinery operated, there was hydrocarbon
leakage beneath the now shutdown process plant. To fix
this, our extensive groundwater remediation network of
140 wells, spread across our entire site, are continuously
operating to contain and reduce the contamination, and
have been for some years.
And it’s working: we have seen a measurable decrease
in the s
ize of this legacy contamination of c.30 per cent,
and we expect to see this continue to decline over the
next few years now that we have stopped refining. We
will continue working to fix this legacy contamination,
and we have allocated funding as part of our ongoing
costs to operate the terminal to continue this important
work and ensure that the groundwater that leaves our
site is free of hydrocarbons. 
Data tables, summarising our environmental performance
o
ver the last five years against a range of metrics can be
found in Appendix 2. 
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Channel Infrastructure NZ Limited | Delivering a sustainable future

EPA Prosecution Conclusion
In 2021, there was an unauthorised discharge of fire-
fighting
foam used during a fire training exercise.  When
we were made aware of this issue, we acted immediately
to report the incident to the Environmental Protection
Authority (EPA), the Northland Regional Council and
tangata whenua, and since then we have fully
cooperated with the EPA as they undertook their
investigations on this matter. At the same time, our
priority has been to minimise the impact of this
incident on the surrounding environment.  We are
disappointed our on-site standing instructions as to the
use of the PFAS firefighting foam were not followed,
and have since strengthened the monitoring and our
on-site enforcement to ensure it does not happen
again.  Following the closure of the refinery all PFAS
firefighting foam has now been removed from site and
we no longer have an on-site firefighting training facility. 
In November 2022, the Environmental Protection Agency
pr
osecution process concluded.
1
  We pled guilty,
accepting our responsibility, and our focus now is on
ensuring that an avoidable incident such as this never
happens again.  We have been working hard with our
iwi partners to monitor for any adverse impacts of this
discharge, and we are pleased that our testing has
confirmed there were no concentrations of this substance
in nearby biota. 
OUR FOCUS IN 2023
Complete Fortescue Future Industries (FFI) study (2
nd
phase) on hydrogen production
Continue to assess Sustainable Aviation Fuels options at Marsden Point
Assess physical impacts from a 4-degree global warming scenario
Extend our climate change reporting disclosures in accordance with XRB requirements
Work with customers on Scope 3 emissions reporting
Continue programme of groundwater remediation
Increase reliability of groundwater network by implementing improved asset maintenance strategies
Establish pathway for 20 per cent reduction in waste to landfill
Expand our environmental pest control by supporting Mediterranean Fan Worm Research
1
Channel Infrastructure was
fined $169,000
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Channel Infrastructure NZ Limited | Delivering a sustainable future

Case Study – Waste Management
Throughout the decommissioning project and the
dismantling of the refinery, we have made a commitment
to prioritise the reuse and recycling of materials as much
as possible, and only if we cannot find an alternative
use, is the material disposed of in a responsible manner.
In line with that commitment, we have had a team
dedicated to sourcing alternative uses for the materials
that have come out of the refinery, including precious
metals, catalyst, and scrap wood.
Recycling steel, aluminum, copper, brass and other
me
tals keeps these materials out of landfills, as they are
metals that can be used again and again.  As we have
decommissioned the Marsden Point refinery processing
units and 219 heat exchangers, we have sent over 1,255
tonnes of metals, to be reused in a number of ways
and helping to contribute to a more sustainable planet
without the need for mining new metal ores. 
Catalyst, a chemical substance that is used to increase
the r
ate of chemical reactions within the refining process,
and can be re-used in other refineries around the world
once treated, and has been recycled with over 1,500
tonnes of catalyst to be exported. Before it is recycled,
we reclaim and recycle the metals in the catalyst, and
remove carbon and hydrocarbon contaminants.  Over 30
tonnes of scrap wood has been removed from the site in
the second half of 2022. This is then turned into woodchip
and supplied to Golden Bay Cement in Whangarei, to fire
their kiln. 
From within the pipes, and various pumps and
compr
essors that were used to run the refinery, we
have so far collected 47,000 litres of lube and seal oil.
L
ube and seal oil is being recycled into a cost-effective
heating fuel which is used to power various NZ industries
including hor
ticulture, floriculture, timber processing, meat
processing and bitumen plants. It is typically used for
boilers and kilns.  The recycled fuel oil meets the
specification requirements of the EPA (Environmental
Protection Agency).
Our commitment to responsible waste management is
als
o reflected in our day-to-day operations.  When we
were operating the refinery, with a much larger workforce
and more operations taking place on site, we recycled
more than 190 tonnes of material, including steel,
aluminium and paper, every year.  Today, our recycling
footprint is smaller, because we have fewer people on
site, and a smaller day-to-day operation. Nonetheless,
recycling remains a core part of our environmental
management practices and in the future, we aim to
achieve a 20 per cent reduction in waste to landfill
compared to 2022 (measured by tonnes).  At the same
time, we are working hard to embed a culture of waste
elimination by championing the small but impactful
initiatives such as providing all
staff with a branded
‘keep cup’ to limit the number of single use coffee cups
brought onto site, and have completely removed single
use polystyrene cups from site, and replaced plastic
spoons and forks in the café with wooden renewable
material ones.  We have policies around the printing of
documents and we recycle printer cartridges.  In early
2023, we began a trial to collect single use PPE such
as nitrile gloves, ear plugs, safety glasses and masks
for recycling.
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Channel Infrastructure NZ Limited | Delivering a sustainable future

Diversity, equity, and inclusion
2022 Performance Highlights
97%
Of our people
affected by the closure
of the refinery, supported into their next
opportunity within six months, exceeding
our target of 90%
$29 M
Paid to employees as redundancy and
entitlement benefits
2260+
Hours (or an average of 11 hours per
emplo
yee) invested in transition support
36%
Of the corporate and senior leadership
t
eam identify as female
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Channel Infrastructure NZ Limited | Delivering a sustainable future

Diversity and engagement
Our Approach
From the beginning of the Company’s Strategic Review,
our C
orporate Leadership Team committed to treating
everyone with respect and dignity, as we worked through
what changes might be required in the future plans for
our business.  This commitment continues today, and
diversity and inclusion are important aspects of our
culture at Channel Infrastructure.  These two pillars were
identified by our materiality assessment as impactful
t
o the Company. We value diverse backgrounds and
technical experience as a source of strength, which has
been important as we made our transition to import
terminal operations.   We recognise the importance of
adaptability and are committed to improving the ways
we respect, connect with, and empower, our diverse
workforce to improve the Company as a whole.
Our commitments to a diverse and inclusive work culture
contribut
es to UN SDG 5 Gender Equality and should
be considered with reference to international instruments
including the UN Convention on Discrimination Against
Women and the UN LGBTI Standards of Conduct for
Business. Channel Infrastructure’s specific values and
commitments are detailed in our Diversity and Inclusion
Policy (available on the website under Governance),
noting that the Company commits to four core
diversity principles:
• Diversity will be pervasive and evident throughout all
levels of the organisation
• We will gain and retain top talent by attracting a
div
erse candidate pool
• Our decision making will be enhanced by the richness
o
f the experiences and backgrounds of our people
• The way we lead and the way we behave, will
demons
trate the value we place on diversity.
These diversity principles practically manifest through
our r
ecruitment, talent management, inclusive
communication, performance management, values and
succession planning.
The Company's Diversity and Inclusion Policy also states
the C
ompany’s definition of diversity, and details what
metrics are captured and monitored.
1
These metrics are
recommended to the Board by the Corporate Lead
Team with the Board annually assessing progress towards
diversity objectives while also making any required
updates or revisions to the policy.
Our 2022 Performance
Our 2022 diversity and inclusion metrics are depicted in
the dat
a table included in Appendix 2. At the end of
the year, Channel Infrastructure had employees from 12
different countries and 9 different ethnicities working at
the Marsden Point site.
Diversity
Through the transition to import terminal operations and
the e
stablishment of the new organisation, we made
significant progress towards increasing diversity within
the Company:
• 43 per cent of the Board identify as female, up from
the previous year’s 29 per cent
• 36 per cent of the corporate and senior leadership
t
eam identify as female (this is an increase from 27 per
cent in the previous year)
• 36 per cent of women employed are in
leader
ship positions
• Of our workforce employees 23 per cent identify as
w
omen, 76 per cent male and 1 per cent other.
1
Channel Infrastructure’s Diversity and Inclusion Policy defines
diversity to include gender, gender identity, disability, sexual orientation, religion, age,
ethnicity, backgrounds, cultures, and worldly experiences
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Channel Infrastructure NZ Limited | Delivering a sustainable future

Most of the changes in our diversity and inclusion metrics
s
tem from a higher than usual degree of change resulting
from our transition to an import terminal. Now that the
people transition is largely complete, we have reset our
baseline and set ourselves new targets.
Three female board members, together with our CEO
Naomi J
ames, and Chief People Officer, Caz Jackson,
play an important role in setting the scene for women
in our business. In addition, we have a strong senior
leadership bench with female leaders sitting in key
operational roles across operations and the business as
a whole. We are proud of the gender diversity across our
Board and senior leadership, and we are committed to
prioritising this advantage into the future.
Pay Equity and Living Wage
We are focused on and committed to pay equity, already
t
aking steps to ensure equity for all employees. The
gender pay equity gap for the business was assessed at
16 per cent in 2022.  Channel Infrastructure will continue
to review and monitor pay equity into the future. In
the current year, we formally committed to paying the
Living Wage.
Parental Leave Policy
In 2022, we
significantly extended our parental leave
policy to support families by offering:
• 26 weeks paid parental leave for the primary caregiver,
with the Company “topping-up” the Government
contribution to the employee’s current remuneration
• Two weeks paid and two weeks unpaid leave, for the
s
econdary caregiver.
The new policy, which was built with the help of a
number o
f our senior women, ensures that our families
are financially supported, to enable them to take the
time out that they need while helping to ensure that our
women stay and grow their careers with us.
Human Rights
Modern slavery is a key human rights risk, both in
oper
ations and in supply chains. Channel Infrastructure
is committed to ensuring it is not doing business with
individuals or companies who knowingly
profit from
modern slavery. On 23 February 2023, we approved our
formal policy on modern slavery. The policy is available
on our website.
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Channel Infrastructure NZ Limited | Delivering a sustainable future

Workforce transition
Our Approach
Since the beginning of 2020, we have reduced our
w
orkforce by around 67 per cent from 412 people down
to 135 people as at 31 December 2022, as a result
of the strategic review and change from refining to
fuels import terminal operations. Contractor numbers
have increased over this period, reflecting the significant
decommissioning project work and tank conversions
curr
ently underway on site.   We expect that as this
speciality project work is concluded, our contractor
numbers will significantly decrease in coming years. 
In 2022, we had 159 employees leaving the Company
either thr
ough redundancies, retirements or resignations,
with $29 million in redundancy and entitlements paid
to former employees. A number of the staff as at
31 December 2022 have supported the decommissioning
project and will leave the business in 2023 and 2024
when those projects are completed. It is expected that
employee numbers will reduce by around 51 in 2023,
with contractor numbers also reducing once the refinery
decommissioning project is complete.
While the Company is conducting this transition with
gr
eat care and concern for our people, it has not
been easy, and we do not take the departures from
our dedicated workforce lightly. Because it has been
important to us as a Company to ensure a just transition,
a number of significant initiatives were put in place to
help
staff make purposeful decisions about their future.
The Northland
Refinery Transition Working Group was
established in 2020 to assist with assessing and
mitigating the impact of the terminal conversion on
refinery employees, and the regional economy. The scope
of work was varied and included identifying opportunities
around regional and national redeployment, training,
and regional economic plans. We played an active
role in the Group which was led by Northland Inc
(Northland’s regional development authority) and made
up of representatives from local councils, community
leaders, iwi, Government agencies, and unions. We would
lik
e to acknowledge and thank the members of the
working group for the roles that they played in supporting
our workforce transition outcomes. 
A large number of our people chose to stay and work
in the t
erminal business, and for those staff, a significant
induction and training plan was implemented to support
those who changed roles or who were required to re-skill
in new areas. Up until December 2022, more than 2,700
hours of training had been undertaken by operational
staff.
The business is committed to ensuring that our
qualified, experienced and skilled staff continue to
have access to development as the business continues
to transform. 
A source of great pride for us can be seen in the
commitment o
f our staff to the business, with the most
recent turnover statistics for the business outlined below.
We maintain close engagement and communication
channels with our employees and throughout 2022 this
culminated in the continuation of the pulse survey called
‘Your Voice’.  The 2022 ‘Your Voice’ survey achieved
a remarkable 93 per cent participation rate, and
provided us with valuable information of what our staff
needed from the organisation. Our unplanned turnover
rate remained very low at 4 per cent. The focus on
communication, leadership, accountability and safety
and wellbeing mean that our staff stay, are engaged with
the changes that we are making and are committed to
helping the business grow into the future.
Our 2022 Performance
As outlined in the Atmosphere and climate change
s
ection, in early 2022 we set a range of transition targets
to hold ourselves to account to ensure that we focused
our efforts on where we can make the most impact along
our Transition Roadmap – including a Just Transition for
our people.
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Channel Infrastructure NZ Limited | Delivering a sustainable future