Climate Change Related Disclosure Report

NZX RELEASE

13 NOVEMBER 2023

Napier Port publishes third Climate Change Related Disclosure
Report

Napier Port (NZX.NPH) today publishes its third annual Climate Change Related Disclosure Report,
which seeks to provide stakeholders with an understanding of the potential financial implications of
climate change on its business. The report has been prepared in accordance with the
recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD).

The main focus of the third report is to highlight updates to Napier Port’s climate change ‘physical
risks’ and ‘transition impacts’ following the refresh of our climate change risk assessment. It adopts
newly available climate change data and builds on the scenario modelling used in the two previous
reports. The other key focus area is reporting and analysing our certified emissions output for the
2023 financial year against our benchmark 2022 financial year.

Our emissions audit certification can be found on our website at:
www.napierport.co.nz/environment/environmental-monitoring/

Our Sustainability Strategy and Climate Change Related Disclosure Reports are available at:
www.napierport.co.nz/investor-centre/

ENDS


For more information:

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


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

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CLIMATE
CHANGE RELATED
DISCLOSURE REPORT
NOVEMBER 2023

THIS REPORT IS PREPARED IN ACCORDANCE WITH THE
RECOMMENDATIONS OF THE TASKFORCE ON CLIMATE-RELATED
FINANCIAL DISCLOSURES (TCFD).
THE NEW ZEALAND EXTERNAL REPORTING BOARD (XRB)
IN DECEMBER 2022 ISSUED THE AOTEAROA NEW ZEALAND
CLIMATE STANDARDS (NZ CS), WHICH ARE EFFECTIVE FOR
REPORTING PERIODS COMMENCING ON OR AFTER 1 JANUARY 2023.
THESE NEW MANDATORY CLIMATE STANDARDS ARE BASED ON
THE TCFD FRAMEWORK SO NAPIER PORT EXPECTS TO ISSUE
A NZ CS COMPLIANT REPORT IN 2024.

INTRODUCTION
This is the third report produced by Napier Port Holdings Limited (Napier Port)
which seeks to provide stakeholders an understanding of the potential financial
implications of climate change on its business.
The main focus of the third report is to highlight updates to Napier Port’s
climate change ‘physical risks’ and ‘transition impacts’ after a refresh of its
Climate Change Risk Assessment (CCRA) report. A key driver for the update
is adopting newly available climate change data which builds on the scenario
modelling used in the previous two reports. The other key focus area is
reporting and analysing our certified emissions output for the 2023 financial
year (FY23) against our benchmark 2022 financial year (FY22).
Napier Port’s sustainability journey is one of continuous improvement
and the people of Napier Port are committed to improving its environmental,
social and economic performance by identifying and managing risks and finding
opportunities to use our resources more efficiently.
Napier Port expects to further develop and improve its climate change related
disclosures as we gather more information and knowledge and continue
to deliver against our publicly disclosed sustainability strategy.
TABLE OF CONTENTS
1. GOVERNANCE 2
2. RISK MANAGEMENT 4
3. STRATEGY 6
4. METRICS AND TARGETS 12
DISCLAIMER: Quantifications in this report of financial impacts of climate
change are estimates only and are not intended to constitute earnings
guidance. No representation is made as to their accuracy, completeness or
reliability. These risks and opportunities may not eventuate and if they do the
actual impact may differ materially from these estimates. Other material risks
and opportunities may exist or eventuate that are not included within this report.
CLIMATE CHANGE RELATED DISCLOSURE REPORT • NOVEMBER 2023 / 1

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

FIGURE 1. GOVERNANCE OF CLIMATE-RELATED RISKS AT NAPIER PORT
RISK MANAGEMENT POLICY
• Provides the overarching framework for identifying,
assessing, managing and monitoring risk at Napier Port,
including climate-related risks.
• Objectives of the policy include ensuring that Napier Port
operates in a sustainable manner and protects the Port
environment in accordance with its sustainability strategy.
BOARD OF DIRECTORS
• The Board is ultimately responsible for identifying
the principal risks faced by Napier Port and taking
reasonable steps designed to ensure that appropriate
internal controls and monitoring systems are in place to
manage and, to the extent possible, reduce the impact
of these risks, including material climate-related risks.
• The Board receives reports and recommendations from,
and has access to management reports provided to, the
Audit and Risk Management Committee, in relation to
Napier Port’s overall risk management framework, and
reviews the Risk Management Policy annually.
• The Board is also responsible for setting the strategic
direction of Napier Port. This includes ensuring that the
environmental, social and governance (ESG) risks and
opportunities in Napier Port’s sustainability strategy,
including climate-related risks and opportunities, are
integrated into the Group’s long-term strategy and
investment decision making.
• The Board receives reports and recommendations from,
and has access to management reports provided to the
Sustainability Committee, and reviews the Sustainability
Committee Charter annually.
AUDIT AND RISK MANAGEMENT COMMITTEE
• Ensures that management is implementing Napier
Port’s overall risk management framework and policy.
• Monitors corporate risk assessments and internal
controls implemented.
• Reports to the Board whether Napier Port’s
overall risk management framework and processes
are sufficient.
CHIEF EXECUTIVE AND SENIOR MANAGEMENT TEAM
• The Chief Executive and senior management team are
responsible for ensuring that risks to the business,
including climate-related risks, are identified and
evaluated, effective responses and control activities
developed, and appropriate monitoring and timely re-
evaluation conducted, in accordance with Napier Port’s
Risk Management Policy.
• The Chief Financial Officer, working with senior
management, updates Napier Port’s overall risk
management framework and reports to the Audit and
Risk Management Committee on a six-monthly basis.
• The General Manager – Assets and Infrastructure
has overall responsibility for the development and
implementation of the sustainability strategy, including
assessment of climate-related risks, and reports
on progress to the Sustainability Committee.
KEY STAFF TASKED WITH RISK MANAGEMENT ACTIVITIES (from infrastructure, finance and operations teams)
• Provide support with identifying, monitoring and
assessing climate change risks and ensuring appropriate
management actions are taken in relation to them.
• Responsible for maintaining the safety, performance and
capability of Napier Port’s infrastructure assets and plant
and equipment over their projected economic lives.
• Maintain a 50-year property asset management plan.
SUSTAINABILITY COMMITTEE
• Makes recommendations and reports to the Board on
material ESG matters requiring governance decisions.
• Ensures the integration of ESG considerations into
business planning and strategy, risk management,
key policies, processes and culture.
• Oversees the development of Napier Port’s ESG
sustainability strategy and workplan.
• Monitors progress against the goals and actions
included in Napier Port’s sustainability strategy,
including climate-related goals and actions.
• Ensures an appropriate framework is maintained for the
management of ESG risks, including climate-related
risks and opportunities. Reviews and monitors ESG
related risk assessments and the effectiveness of the
related risk management processes.
• Oversees and reviews ESG reporting processes,
including relevant internal controls and external review
and audit processes.
CLIMATE CHANGE RELATED DISCLOSURE REPORT • NOVEMBER 2023 / 3

2. RISK MANAGEMENT
TCFD REQUIREMENTS:
• DESCRIBE THE ORGANISATION’S PROCESSES FOR IDENTIFYING AND ASSESSING
CLIMATE-RELATED RISKS
• DESCRIBE THE ORGANISATION’S PROCESSES FOR MANAGING CLIMATE-RELATED RISKS
• DESCRIBE HOW PROCESSES FOR IDENTIFYING, ASSESSING AND MANAGING CLIMATE-RELATED
RISKS ARE INTEGRATED INTO THE ORGANISATION’S OVERALL RISK MANAGEMENT
Napier Port’s Risk Management Policy provides the
overarching framework for identifying, assessing,
managing and monitoring risk at Napier Port, including
climate-related risks. Each Napier Port business unit
is responsible for establishing and maintaining risk
documentation to monitor and report risks that threaten
achievement of business objectives. The Chief Executive
and senior management team are responsible for ensuring
that risks to the business are identified and evaluated, that
effective responses and control activities are developed,
and appropriate monitoring and timely re-evaluation is
conducted. The Chief Financial Officer, working with
senior management, updates the Napier Port enterprise
risk register, drawing on business units’ documentation,
and reports this register to the Audit and Risk
Management Committee at least on a six monthly basis.
In addition to this process, for climate-related risks Napier
Port has benchmarked against recommendations of
the Taskforce on Climate-Related Financial Disclosures
(TCFD) for identifying and assessing climate-related
risks. The Napier Port Assets & Infrastructure team which
includes environmental & sustainability subject matter
experts, supported by others as required, are tasked with
staying up-to-date with the latest climate-related research,
facilitating regular risk assessments and performing
detailed climate change analysis. The Board and
Management of Napier Port are also continually monitoring
developments to existing and emerging regulatory
requirements related to climate change as part of their
risk assessment processes.
In November 2020, Envirolink, Gisborne District Council,
and Hawke’s Bay Regional Council collaborated to
commission a review of climate change projections and
their impacts on the Tairawhiti (Gisborne) and Hawke’s
Bay regions. This was conducted by the National Institute
of Water and Atmospheric Research (NIWA)
1
and used
as the basis for the scenario analysis contained within
our FY21 and FY22 reports. For the 2023 report, Napier
Port has drawn upon the findings of our previous reports
and data sources and has incorporated recently released
data from various sources, including the Intergovernmental
Panel on Climate Change (IPCC), to determine potential
shifts in sea levels, wind patterns, temperatures, and
extreme weather events. These data inputs enable us to
analyse a range of potential future scenarios and assess
how they may affect Napier Port’s assets, operations,
financial plans, and business model.
Future climate projections strongly depend on estimates
for future global mean temperature rise resulting
from greenhouse gas concentrations. In turn, those
concentrations depend on global greenhouse gas
emissions that are driven by factors such as economic
activity, population changes, technological advances and
policies for mitigation and sustainable resource use. This
range of uncertainty has been considered by the IPCC.
The IPCC Fifth Assessment Report considered ‘scenarios’
that describe concentrations of greenhouse gases in the
atmosphere. These scenarios were called Representative
Concentrations Pathways (RCPs)
2
. The IPCC’s more
recent Sixth Assessment Report provides updated future
climate change findings and projections. The IPCC Sixth
report refers to Shared Socioeconomic Pathways (SSPs)
3

for future projected socioeconomic global changes used
to derive greenhouse gas emissions scenarios based
on different climate policies. Differences between RCP
findings and projections from SSPs stem from using
improved models as well as a more precise estimate of
historical warming
4
. While the scenarios represent the same
amount of radiative forcing (i.e. RCP4.5 and SSP2-4.5
both represent 4.5Wm-2 radiative forcing), the emissions
pathway and socio-economic drivers to achieve this are
slightly different, and predictions generally show higher
levels of warming associated with SSP’s than RCP’s.
Timelines for warming have also changed; SSPs are
focused around “pre-industrial” times which refers to
1850-1900, which is in line with the Paris Agreement.
These pre-industrial levels are now what temperature
increases are based off rather than the period between
1986-2005 as used in RCPs.
Therefore, a move to SSPs from RCPs is considered
an evolutionary step given SSPs provide the most up
to date climate change information and data for future
climate scenarios.
4 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

For the IPCC global scale modelling to be useful for
Napier Port’s climate change risk assessment process
the results need to be downscaled to a localised level.
While some work has been done to downscale the IPCC’s
Sixth Assessment Report findings to a NZ and Napier
Port regional level, regional downscaling is not yet fully
available. However, for risks and hazards associated
with sea level rise and tropical cyclone intensity, relevant
information from the IPCC Sixth Assessment Report
has been downscaled to local levels and made available.
Interim guidance from the Ministry for the Environment (MfE)
recommends using existing data that has been based on
modelling from the IPCC’s Fifth Assessment Report with
reasonable confidence, until newer data becomes available
for areas where IPCC’s Sixth Assessment Report findings
have not yet been downscaled5.
The use of the 2020 NIWA report and the RCPs
scenarios was central to modelling future climate change
projections and impacts in our prior two Climate Change
Related Disclosure Reports and are still relevant in this
year’s report where regional downscaling of the IPCC’s
Sixth Assessment Report findings has not yet been
completed. In this year’s report we adopt the IPCC’s
recently released Sixth Assessment Report where
regional downscaling has been completed. This sees
the introduction of three SSP scenarios for the climatic
effects of sea level rise, temperature increase,
and tropical cyclone.
Our climate-related risk assessment process continues
to consider the following RCP’s:
• RCP4.5 is a ‘stabilisation’ pathway that stabilises
radiative forcing at 4.5W m-2 in the year 2100 without
ever exceeding that value.
• RCP8.5 represents continuing high global emissions
without effective mitigation, which will lead to high
greenhouse gas emissions (a high-end pathway).
The reason for choosing these two scenarios was to
present a ‘high-end’ scenario if atmospheric greenhouse
gas concentrations continue to rise at high rates (RCP8.5)
and a scenario which could be realistic if moderate
global action is taken towards mitigating greenhouse
gas emissions (RCP4.5).
Where regional downscaling has been completed, our
climate-related risk assessment process now considers
three SSP scenarios identified as plausible outcomes.
• SSP1-1.9 is the ‘sustainable’ pathway (where global
warming is limited to 1.5 degrees by 2100),
• SSP2-4.5 is the ‘middle of the road’ pathway (where
socio-economic factors follow their trends, with no
significant change in reducing current temperature rise
projections)
• SSP5-8.5 represents ‘the highway’ pathway (effectively
the worst case scenario where the world economy
grows rapidly, but this growth is driven by fossil fuel
exploitation and very energy intensive lifestyles).
These three scenarios were chosen to align with NZ CS,
which requires three scenarios to be analysed:
• one where global temperature increase is limited
to 1.5 degrees Celsius (with an emissions pathway
aligned to SSP1-1.9),
• another where the temperature is 3 degrees Celsius
or greater (aligned to SSP5-8.5)
• a third scenario of the reporting company’s choice.
Napier Port has chosen a scenario which looks to limit
global temperature increases to a range between
2.1 and 3.5 degrees Celsius (aligned to SSP2-4.5).
The reason for choosing this pathway is that SSP2-4.5
has been recognised by members of the climate science
community as a most likely pathway to eventuate out
of the five SSPs6.
Our climate-related risk management spans 50 years,
aligning with asset management and scenario-based
likelihood of risk occurring.
For climate-related risk management, we believe a medium
to long-term horizon is appropriate. This time frame is
aligned with the economic lives of our infrastructure
assets and Napier Port’s asset management plan. As a
result, we have used the following timeframes to assess
the likelihood of climate-related risks occurring under
each scenario: Short-term 0-20 years (using RCP & SSP
scenarios up until 2040); Medium-term 20-70 years (using
RCP scenarios up until 2090 and SSP scenarios up until
2070); and Long-term 70 plus years (using SSP scenarios
up until 2100). We regularly monitor whether climate
science requires us to reassess this approach.
In accordance with Napier Port’s Risk Management Policy,
we assess the significance of each identified climate-
related risk using a likelihood and consequence matrix.
The climate-related risk register assesses the likelihood of
risks occurring during the short-term, medium-term and
long-term timeframes outlined above, to recognise the
longer-term nature of climate-related risks. This varies from
the overall risk management framework which assesses
the likelihood of a risk occurring based on whether it is
probable to occur within the next 12 months. For both,
the consequence of the identified risk is assessed based
on the potential level of impact on our people, assets/
infrastructure, operations and systems, environment,
reputation and financial planning. Based on the likelihood
and consequence, levels of risk are categorised as
either very high, high, moderate or low. This allows us
to determine the appropriate response for each issue
identified. Climate-related risks are reviewed at least
annually to ensure they reflect material changes in our
knowledge, business strategy, and operating environment.
During the 2023 financial year, using the process
described above, we completed an update to our ‘Whole
of Port’ Climate Change Risk Assessment – looking at
infrastructure resilience, trade forecasting, land levels,
weather conditions, emergency preparedness and habitat
modification. We identified 71 climate-related physical
and transition risks and 24 opportunities. An overview of
the top physical and transition impacts is contained in our
strategy disclosures section.
CLIMATE CHANGE RELATED DISCLOSURE REPORT • NOVEMBER 2023 / 5

3. STRATEGY
TCFD REQUIREMENTS:
• DESCRIBE THE CLIMATE-RELATED RISKS AND OPPORTUNITIES THE ORGANISATION HAS IDENTIFIED
OVER THE SHORT, MEDIUM AND LONG-TERM
• DESCRIBE THE IMPACT OF CLIMATE-RELATED RISKS AND OPPORTUNITIES ON THE ORGANISATION’S
BUSINESSES, STRATEGY, AND FINANCIAL PLANNING
• DESCRIBE THE RESILIENCE OF THE ORGANISATION’S STRATEGY, TAKING INTO CONSIDERATION
DIFFERENT CLIMATE-RELATED SCENARIOS, INCLUDING A 2 DEGREE OR LOWER SCENARIO
Napier Port’s purpose is very clear: together we build a
thriving region by connecting our customers, people and
community to the world. This drives everything we do and
sets the scene for our business strategy, which provides a
robust and comprehensive direction for the future.
Our strategic goals are Customer Connection, Harnessing
Data and Technology, Networked Infrastructure and
Collaborative Partnerships, all underpinned by our
Culture of Care and Sustainability foundations.
Our business is exposed to climate-related risks outside
our port gate, including transport links and the impact
of climate change on our community and customers.
We intend to work collaboratively with relevant territorial
authorities and community groups, sharing information and
developing solutions, to deliver a more resilient business
and region. For example, during FY23 Napier Port has
been actively sharing climate related information with
Hawke’s Bay Regional Council’s Climate Action Hub.
Napier Port recognises that climate change is currently
impacting the way we operate in the following ways:
CURRENT IMPACTS OF CLIMATE CHANGE
CURRENT PHYSICAL CLIMATE IMPACTS
Tropical Cyclone Gabrielle in February 2023 caused
widespread flooding and property damage to the Hawke’s
Bay region. Although the physical impact on Napier Port’s
infrastructure was not significant it was a timely reminder
of the devastating impact severe weather events can have
and the potential consequential effects arising from such
events, as flooding and infrastructure damage outside the
port gate resulted in decreases in cargo being exported
from the region via our port. Such losses represent millions
of dollars of lost earnings in 2023 for Napier Port
*
.
Along with cyclone events, more extreme weather
conditions during 2023 have also directly and indirectly
affected Napier Port as higher than average rainfall
across the region and longer periods of swell events
have impacted crop yields and marine berthing availability,
respectively, with a financial flow on affect for Napier Port.
CURRENT TRANSITION CLIMATE IMPACTS
As part of its asset management programme, Napier
Port is considering how it can utilise technological
advancements and alternative equipment choices to
shift its fuel intensive heavy equipment and marine fleet
assets towards lower emission and more energy efficient
options. However, much of this technology is still at an
early development stage and therefore carries additional
cost premiums when compared with the traditional fuel
consuming equivalent. For example, this year Napier
Port acquired two new Eco Reachstackers (container
handling mobile plant), which carried a cost premium
of approximately 15% over the price of the base model
reachstacker. Napier Port will continue to consider a broad
range of objectives including the financial implications and
its obligations as a lifeline asset and significant regional
infrastructure as it considers pathways and the timeframes
it adopts to transition its mobile plant equipment and
marine assets.
The impacts of severe weather events such as extreme
rainfall and tropical cyclones (like Cyclone Gabrielle)
are having an adverse impact on our insurance renewal
programme for our material damage and business
interruption policies. As a result of Cyclone Gabrielle
trading losses incurred by Napier Port, policy premiums
and insurance capacity have been negatively affected,
however the direct financial impact is not determinable.
*
The amount of insurance proceeds to compensate for Napier Port’s lost
earnings as a result of Cyclone Gabrielle are disclosed in the 2023
annual financial statements of Napier Port Holdings Limited.
6 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

FUTURE IMPACTS
OF CLIMATE CHANGE
For Napier Port, a warmer world in 2100 consistent with
the RCP8.5 and the SSP5-8.5 scenario would result in
potential physical impacts on our infrastructure, create
uncertainties as to how our region would be affected
and be required to adapt, and affect what our business
may look like as a result. The transition impacts of climate
change caused by strong climate action policy will also
create a mix of risks and opportunities for our business.
We have identified and assessed these risks and
opportunities, undertaking analysis of the potential
impacts for our business.
The physical and transition risks included below are
from Napier Port’s ‘Whole of Port’ Climate Change Risk
Assessment (dated June 2023) and are rated very high,
in accordance with the risk management policy and
specific climate-related timeframes noted above. This
assessment is based on the likelihood of the risk occurring
(likely or almost certain) and consequence (greater than
$5 million), in at least the RCP8.5 or SSP5-8.5 scenario
in the medium to long-term. Under the RCP4.5 (2 degrees
or lower scenario) or SSP2-4.5 (3 degrees or lower
scenario), these risks are also present, although they
would manifest themselves at a later date.
From the analysis undertaken, at this stage, we do not
consider that the effects of climate change materially
change our overall strategy. Sustainability will be
embedded into our ways of working as we continue
to collaborate to look after people, planet and place,
including completing the actions contained in our
sustainability strategy. The more financially material
infrastructure improvement actions are required over
the medium to long-term to ensure that we continue
to have a resilient and agile infrastructure network.
Planning to address this is being embedded within our
asset management plans and infrastructure masterplan.
In the short-term, we will continue to complete more
detailed investigations of climate-related effects and
ensure these are considered in Napier Port’s master
planning process. We have included climate-change
considerations within Napier Port’s procurement
processes and policies. Work in these two respective
areas is ongoing.
PHYSICAL RISKS
Climate change related effects result in several risks to
Napier Port infrastructure, due to its coastal location and
susceptibility to sea level rise. Our assets are susceptible
to physical risks today, including from acute weather
and natural disaster events. Climate change modelling
indicates that higher temperatures will increase the
likelihood of extreme weather events that may affect
operations and damage infrastructure and there will be
the ongoing impacts of sea-level rise, extreme rainfall,
and intensifying tropical cyclones which may cause
coastal inundation, erosion and flooding.
The physical impacts of climate change considered
most material to Napier Port are described below:
I) INCREASE IN RELATIVE SEA LEVEL
One of the major and most certain consequences of
increasing concentrations of atmospheric greenhouse
gases and associated warming is the rising sea level.
SSP scenario modelling has confirmed the pace of sea
level rising is also accelerating.
Interim guidance on the use of sea level rise projections
from the Ministry for the Environment
7
recommends using
data from the NZSeaRise research programme, which
uses SSP sea level data on a localised scale across
New Zealand. This is a shift away from the RCP sea level
rise based data used in the 2020 NIWA report. These
projections include not only sea level rise (SLR) (relative
to 2005), but also vertical land movement (VLM), from
satellite data, at 2km spacing across all of NZ’s coastlines.
By combining both SLR and VLM, we can understand
relative sea level rise (RSLR). Adopting RSLR is a pivotal
departure from last year’s Climate Change Risk Disclosure
report, the results of which now show a heightened level
of risk to Napier Port’s infrastructure.
There are three sites in NZSeaRise within the Napier Port
footprint and these sites are reportedly subsiding at an
average rate of 3.01mm/year (2.93-3.14mm/year). When
this rate of VLM is combined with the various rates of SLR,
dependent upon the emissions scenario, overall RSLR
is higher.
With sea levels continuing to rise, even under low
emission scenarios, there is high confidence in the
increased frequency and severity of coastal flooding
8
.
In respect of extreme coastal flooding, in the short term
(2040), there is no difference seen between different
SSP pathways and inundation risk remains manageable.
However, projected inundation in a one in one-hundred-
year event shows the previously identified northern log
yard areas experiencing more prolific inundation in line
with escalating temperature over time. This trend expands
under all SSPs in 2070, and eventually, in 2100 under all
SSPs, coastal flooding projections show a large portion
of the Napier Port site could be potentially impacted
during a one in one-hundred-year event.
CLIMATE CHANGE RELATED DISCLOSURE REPORT • NOVEMBER 2023 / 7

Furthermore, as sea levels rise, high-energy waves
that strip sediment can reach higher up the shoreline
and cause erosion
9
. Due to the nature of Napier Port,
being built directly on the coast, coastal erosion could
cause loss of usable land area and damage to existing
infrastructure if not prepared for carefully. Among the three
beach areas within the port boundaries, risk exposure is
materially present within the two easternmost stretches.
Whilst these areas undergo continuous natural movements
due to wave action, these areas serve as inherent natural
sea defences, safeguarding critical structures and
operational zones from potential inundation.
Erosion has been managed using ad-hoc shore protection
where key infrastructure is situated, such as the
Plant Services workshop, near the East Beach area of
Napier Port. Climate-related risks such an anticipated rise
in RSLR, coupled with heightened cyclone/rainfall intensity
are expected to increase erosion in this area. In the long-
term a hard structure may be required to provide long-term
protection in this area with a preliminary estimated cost
of $10 - $15 million.
Note in this year’s report erosion is treated as one of the
possible outcomes of the RSLR risk rather than a separate
direct weather event.
RISK DRIVER:
INCREASE IN SEA LEVEL (RSLR)
SCALE
High to Very High
LIKELIHOODAlmost certain
TIMEFRAMEMedium to Long-term
FINANCIAL
IMPLICATIONS
Inundation: $10-$15 million
Erosion: $10-15million
METHODOLOGY
Potential financial impact is
estimated capital expenditure
required, based on current civil
construction costs in today’s money
RISK
MITIGATION
• Northern log yards will need
to be re-developed to raise the
level of pavement
• Ensure the western reclamation
area is developed to levels to
meet future extreme sea levels
due to climate change
• Detailed investigation and
potential design of sea defences
to provide long-term protection
in the East Beach area
II) EXTREME RAINFALL EVENTS
Climate change is expected to result in an increase in
the frequency and intensity of extreme rainfall events.
The NIWA report notes that short duration rainfall events
have the largest relative increases compared with longer
duration rainfall events. Rainfall depths for 1-in-50 year
and 1-in-100 year events are projected to increase across
the greenhouse gas concentration scenarios and future
time periods.
Napier Port has seen minor issues with storm water
management in recent years due to extreme rainfall events
that the systems were not designed for. The storm water
system will be further compromised by sea level rise with
more outlets likely to be below sea level which impacts the
system’s ability to discharge effectively resulting in backing
up of storm water. This is likely to result in inundation if the
extreme rainfall coincides with extreme sea levels. Detailed
modelling is to be completed to better understand the
system capacity both currently and under future scenarios
so appropriate plans can be put in place. Likely options
include additional drainage networks or pumping stations.
RISK DRIVER:
EXTREME RAINFALL EVENTS
SCALE
High to Very High
LIKELIHOODAlmost certain
TIMEFRAMELong-term
FINANCIAL
IMPLICATIONS
Still being determined
RISK
MITIGATION
• Modelling of the stormwater
system capacity under future
scenarios
• Assess capacity of the outer
breakwater drain under future
scenarios and frequency
of drain cleaning
III) TROPICAL CYCLONES
Tropical cyclones are predicted to be more severe under
all temperature scenarios, yet there is still a huge amount
of uncertainty on the changes in frequency of tropical
cyclones
10
. Potential damage caused by tropical cyclones
can be quantified using the power dissipation index (PDI),
which considers maximum sustained wind speeds, and
the distance/time the cyclone has travelled. Projections for
future severity of cyclones aligned with SSP findings show
increases across all scenarios, with the greatest increase
in PDI seen in SSP5-8.5 (24%).
8 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

The implications of Cyclone Gabrielle provided insight
into the susceptibility of Napier Port’s breakwaters and
sea defences to damage. Anticipated synergies between
relative sea level rise and the amplification of cyclone PDI
appear to forecast an uptick in the magnitude of damage
sustained per event. Such powerful weather events have
the potential to dislodge or displace the armour units
(akmons) that help protect the breakwater structure.
With a projected increase in cyclone PDI for storms
arriving at Napier, proactive maintenance is required,
not only for dissipating wave energy and upholding the
structural integrity of the breakwater itself, but also for
the preservation of the infrastructure sheltered behind
its protection.
RISK DRIVER:
TROPICAL CYCLONES
SCALE
High to Very High
LIKELIHOODAlmost certain
TIMEFRAMEMedium to Long-term
FINANCIAL
IMPLICATIONS
$5-$10 million
METHODOLOGY
• Potential financial impact is
estimated capital expenditure
required, based on current civil
construction costs for shore
protection in today’s money
RISK
MITIGATION
• The akmon unit “top-up” program,
already embedded within the
Asset Management Plan
TRANSITION IMPACTS
The transition impacts of climate change caused
by strong climate action policy are also a mix of risks
and opportunities for our business.
Government regulation to encourage a shift to a low
carbon economy (like the Aotearoa New Zealand Emission
Reduction Plan) may result in:
- increased fuel costs particularly for Napier Port’s
mobile plant;
- requirements to invest in new technologies, equipment
and supporting infrastructure to move away from diesel
powered plant; and
- policies to increase the use of rail which may require
additional infrastructure investment and changes
to Napier Port’s operating model.
The transition impacts considered most material
to Napier Port are:
I) GOVERNMENT REGULATION TO ENCOURAGE
A SHIFT TO A LOW CARBON ECONOMY
RESULTING IN HIGHER FUEL COSTS
Government policy may increase emissions taxes on fuel
by greater amounts to encourage the significant reduction
in emissions required to achieve net zero emissions by
2050. This will likely significantly increase diesel fuel costs
and operating costs for Napier Port which is currently
reliant on diesel fuel to power tugs, mobile harbour cranes,
and container handling equipment.
The higher fuel costs may encourage the shift to
alternative fuels throughout the region which may
ultimately reduce the fuel imported through Napier Port
and the revenue that this generates.
RISK DRIVER:
GOVERNMENT REGULATION TO ENCOURAGE
A SHIFT TO A LOW CARBON ECONOMY
RESULTING IN HIGHER FUEL COSTS
SCALE
High to Very High
LIKELIHOOD
Moderate risk in short term. Almost
certain in medium to long term
TIMEFRAME
Short to Medium term
FINANCIAL
IMPLICATIONS
To be determined
RISK
MITIGATION
• Ensure fuel price escalation risk
is considered in forecasting
II) GOVERNMENT REGULATION TO ENCOURAGE
SHIFT TO ALTERNATIVE FUELS
Combined with the above it is highly likely there will be
government regulation to ban or limit the procurement
of, and reduce the use of, diesel powered machines and
encourage the shift to machines powered by alternative
fuels (e.g. electricity, hydrogen). It is expected that import
bans will precede the outright ban of diesel equipment,
which will provide some time to adapt.
Napier Port is expected to transition in a planned orderly
way with emission reduction pathways under development
as part of the wider sustainability strategy. The transition
triggers are likely to be a mix of fuel and other price
pressures, investment cycles, and equipment and
alternative energy availability and reliability.
CLIMATE CHANGE RELATED DISCLOSURE REPORT • NOVEMBER 2023 / 9

The development of the required infrastructure is expected
to occur over a longer period and require additional
capital investment.
Napier Port currently has an Electrical Master Plan under
development which shows that electrical capacity at
Napier Port will likely need to more than double to meet all
the future anticipated electrical demands. The Electrical
Master Plan will provide an effective pathway to meet future
electrical demand. There are, however, numerous policy
risks which may affect the electrification programme:
• A ban on the importation of diesel equipment within
a short timeframe may result in the need to accelerate
infrastructure investment, uneconomically extending the
lifetime of existing plant or affecting expansion aspirations;
• An early ban in the importation of diesel equipment may
result in effective and reliable alternative low emission
options not being readily available;
• Policy that results in dramatic increase in fuel price may
result in earlier than expected move to an electric fleet.
If electrical infrastructure is not ready this may result in
higher than desired operating costs.
The decision making process for investing in low emission
versus diesel technology poses a risk when considering the
lifespan of equipment, in particular key plant with relatively
longer lifespans such as tugs and mobile harbour cranes.
Decisions today are relatively simple due to costs and
available technology and will likely be in 20 years’ time when
low emissions technology will be more established and
cost effective. In the intervening period the decision making
process is more complex and where policy risk could have
a significant effect. Higher fuel costs may result in an earlier
than expected move to alternative technologies that could
result in existing equipment becoming redundant before the
end of its expected useful life.
This is not an issue where equipment can be retro-fitted
such as mobile harbour cranes or for equipment that has a
relatively low remaining lifespan (< 10 years) but may pose
an issue for the tugs with a long remaining useful life and
limited ability to retro-fit.
Actions Napier Port are taking to mitigate these risks are
considering future fuel cost risk in equipment purchasing
and investment decisions, considering whether equipment
can be retro-fitted in investment decisions and regularly
assessing the remaining life and residual value of key
equipment as a result of climate change pressures.
RISK DRIVER:
GOVERNMENT REGULATION TO ENCOURAGE
SHIFT TO ALTERNATIVE FUELS
SCALE
High to Very High
LIKELIHOOD
Almost certain
TIMEFRAME
Medium to Long-term
FINANCIAL
IMPLICATIONS
Still being determined as options
continue to be assessed
RISK
MITIGATION
• Consider flexibility in electrical
infrastructure development as
part of the Electrical Master Plan
• Consider future fuel cost risk
in equipment purchasing and
investment business cases
• Consider equipment that can be
retro-fitted in investment decision
making process
• Regularly assess the remaining
life and residual value of key
equipment because of climate
change pressures
III) RAIL
Notwithstanding New Zealand’s topography and lack of
rail infrastructure compared to other countries, currently
rail has significantly lower emissions per tonne compared
to road freight, and provides other benefits, in particular
reducing the number of trucks on New Zealand’s roads.
In the short-term, a lack of national and regional rail
infrastructure is and will remain a major hindrance to a
significant step change in the use of rail. In the medium
term, it is likely that road transport will continue
or accelerate the adoption of green energy technology
to reduce their emissions
Under the long-term (50+ years), it is expected that
New Zealand’s rail network will be effectively emission
free, running on alternative fuels such as hydrogen for
long haul routes or potentially a fully electrified network,
which may result in a significant uptake of rail. A significant
increase in cargo transported by rail would require
changes in Napier Port’s operational layout and associated
infrastructure investment.
10 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

RISK DRIVER:
GOVERNMENT REGULATION TO ENCOURAGE
INCREASED USE OF RAIL
SCALE
High to Very High
LIKELIHOODAlmost certain
TIMEFRAMELong-term
FINANCIAL
IMPLICATIONS
Greater than $10 million
METHODOLOGY
Potential financial impact is high-
level estimate of capital expenditure
required, in today’s money
RISK
MITIGATION
• Changes to Napier Port’s
operational layout in line with
existing provisions in the Master
Plan to increase our on-Port rail
infrastructure
• Further consideration of climate
change related effects will be
included in Napier Port’s Master
Planning process
IV) COMMERCIAL IMPACTS
While the full extent of climate change’s direct impacts
remains uncertain, available data suggests potential
negative effects on Hawke’s Bay’s primary industry with
potential for crop production disruption, heightened pest
and disease spread, and destabilised growing conditions.
Forestry, agriculture and horticulture are all significant
primary industries within the Hawke’s Bay region, and
Napier Port plays an important role within these industries,
by connecting suppliers with international customers.
These sectors are vulnerable to the impacts of climate
change (i.e. potential increases in rainfall intensity, mean
temperatures and drought severity) while changes in
production may not directly affect Napier Port, there is a
significant indirect risk to revenue should these industries
suffer from the effects of a changing climate.
Drought, in particular, has been highlighted as one of
the key risks for Hawke’s Bay, with some of the largest
increases to the annual number of days of soil moisture
deficit compared to other parts of the country.
The largest impact is expected to be in the meat industry
with increased drought frequency resulting in changes
to pasture composition. Increased droughts coupled with
occasional heavy rainfall could have major adverse effects
on soil stability.
The meat industry is a significant exporter through
Napier Port and drought therefore poses a risk to revenue
in the medium term and almost certainly in the long term.
Other industries such as horticulture and forestry are in
a better position to manage the risk of drought through
various practices, although horticulture will have an
increased reliance on water security.
RISK DRIVER:
DROUGHT
SCALE
High to Very High
LIKELIHOODAlmost certain
TIMEFRAME
Medium to Long-term
FINANCIAL
IMPLICATIONS
$5 million
METHODOLOGY
Potential financial impact is an
estimate of the annualised impact
on trade volume in today’s dollars.
RISK
MITIGATION
• Napier Port has limited direct
control in managing this risk.
Napier Port will keep an active
interest on potential impacts and
how that might change export
volumes, shipping patterns and
changes in exports through the
regular master planning process
TRANSITION OPPORTUNITIES
Addressing climate change potentially offers various
chances for growth and improvement. These include the
opportunity for Napier Port to become more resource-
efficient, using cleaner energy sources, creating innovative
service offerings, and enhancing supply chain resilience.
Opportunities may include a reduction in recurring
expenses over the long term or additional revenue streams
from requirements for ships to use shore power while
in Port and opportunities to partner in the supply chain
to provide low carbon or zero emission solutions
for customers.
Additionally, climate change might create new
opportunities as crop dynamically shift, allowing the
horticulture sector to cultivate new thermally resistant
species and varieties. Napier Port assumes that if climate
change alters the primary sector, crop substitution will be
considered until more relevant data prompts a shift
in perspective.
CLIMATE CHANGE RELATED DISCLOSURE REPORT • NOVEMBER 2023 / 11

4. METRICS AND TARGETS
TCFD REQUIREMENTS:
• DISCLOSE THE METRICS USED BY THE ORGANISATION TO ASSESS CLIMATE-RELATED RISKS AND
OPPORTUNITIES IN LINE WITH ITS STRATEGY AND RISK MANAGEMENT PROCESS
• DISCLOSE SCOPE 1, SCOPE 2, AND, IF APPROPRIATE, SCOPE 3 GREENHOUSE GAS (GHG) EMISSIONS,
AND THE RELATED RISKS
• DESCRIBE THE TARGETS USED BY THE ORGANISATION TO MANAGE CLIMATE-RELATED RISKS
AND OPPORTUNITIES AND PERFORMANCE AGAINST TARGETS
GREENHOUSE GAS (GHG) EMISSIONS
Napier Port has been measuring their Scope 1, 2 and
limited Scope 3 emissions for several years which have
been reported in the Annual Report and on the Napier
Port website. During FY21, we reviewed and redefined
our GHG inventory to enable a better understanding of
our emissions profile. During FY22, we took this expanded
GHG inventory and collected the associated data to
create a new base year for emissions reporting. Reported
emissions for FY22 included a wider range of scope 3
emissions and was externally certified by Toitū Envirocare.
The additional scope 3 emissions now include freight and
employee commuting. Reported emissions for FY23 have
been collected and certified on the same basis as FY22.
The FY23 audit certification can be found on our website at:
napierport.co.nz/environment/environmental-monitoring
The certification means we’ve measured and managed the
operational emissions of our organisation in accordance with
ISO 14064-1:2018 and the Greenhouse Gas Protocol:
A Corporate Accounting and Reporting Standard (2004).
DEFINING OUR (GHG)
EMISSIONS INVENTORY
We worked with an external consultant, BraveGen, to
define our GHG inventory scope to reflect best practice
including identifying a wider range of Scope 3 emissions.
This expanded definition of our GHG inventory is being
used to determine and report Napier Port’s emissions
from FY22. This provides a better understanding of Napier
Port’s emissions profile, identifies where opportunities
for reductions are, enables setting of GHG targets and
measures, and reporting overall progress. The GHG
emissions sources included in this inventory were
identified with reference to the methodology in the
GHG Protocol and ISO 14064-1:2018 standards.
We are also now using BraveGen’s GHG emissions
inventory software to record and report these emissions.
With a robust emissions inventory in place the same GHG
emission sources were able to be reported on in FY23
and compared to our FY22 base year.
Under the GHG Protocol, these emissions are classified
under the following categories:
Scope 1 – Direct GHG emissions occurring from sources
that are owned or controlled by the company.
Scope 2 – Indirect GHG emissions occurring from
the generation of purchased electricity, heat and steam
consumed by the company.
- Reported by both location and market-based
emission factors
- Total emissions are reported using the market-based
approach
Scope 3 – emissions that occur because of the company’s
activities, but from sources not owned or controlled by the
company. These have been further categorised using the
Scope 3 standard categories:
- Purchased goods and services (category 1);
- Business travel (category 3);
- Employee commuting (category 3);
- Capital goods (category 4);
- Fuel and energy-related activities not included in Scope
1 or 2 (category 4);
- Waste generated in operations (category 4);
- Upstream transportation and distribution -
Electricity (category 4);
Additional Scope 3 categories are not reported where they
are not relevant to our business. The excluded scope 3
categories include:
- Upstream leased assets (category 4);
- Downstream transportation and distribution (category 3);
- Processing of sold goods (category 5);
- Use of sold products (category 5);
- End-of-life treatment of sold products (category 5) and
- Franchises (category 5)
12 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

GHG EMISSIONS REPORTING
In FY23, our total carbon emissions were 8,772 tonnes
which was down from 9,744 tonnes in FY22.
This is shown in figure 1 below.
The decrease in total emissions correlates with a decrease
in annual cargo volumes during FY23 compared to FY22.
This is largely due to the impacts of Cyclone Gabrielle
which struck the Hawke’s Bay in February 2023.
FY23 has seen a decrease in scope 1 emissions to 6,278
tonnes from 7,155 tonnes in FY22. The lower volumes
resulted in a decrease in fuel usage for forklifts, cranes,
and diesel generators. Offsetting these reductions was
the marine fleet (tugs and pilot boat) whose fuel usage
increased due to the return of cruise ships during FY23,
as the FY22 cruise season was effectively cancelled due
to the impact of COVID-19 and which had an impact
on the FY22 fuel emissions result.
The acquisition during FY23 of two Eco Reachstackers,
which are classified as forklifts in our emissions analysis,
has demonstrated the benefits of improving technologies
on our emissions and have contributed to the decrease in
fuel usage for the forklift fleet during FY23. Fuel usage data
collected so far has shown the Eco Reachstackers fuel
usage averaging 17 litres of diesel fuel per hour compared
with the legacy reachstackers which average 25 litres per
hour - this represents a 32% reduction. Offsetting these
reductions was the marine fleet (tugs and pilot boat) whose
fuel usage increased due to the return of cruise ships
during FY23.
Our purchased electricity (scope 2) emissions decreased
to 1,487 tonnes from 1,759 tonnes in FY22. Contributing
to this was a 16% reduction in the number of refrigerated
(‘reefer’) containers on power during the year, again largely
due to cyclone affected lower cargo volumes.
Partially offsetting this scope 1 and scope 2 decrease
is an increase in scope 3 emissions.
Scope 3 emissions increased to 1,007 tonnes from
830 tonnes in FY22. The main contributor to this increase
was employee commuting as our FY23 data collection
has evolved increasing the scope of measurement. Other
smaller increases related to air travel due to increased air
travel undertaken after the easing of COVID-19 restrictions,
and container freight movements. The latter increase was
due to temporarily needing to use truck road transport post
cyclone Gabrielle while a key rail bridge was being repaired.
Our ‘per cargo tonne’ intensity metric increased from
0.00181 t/CO2e in FY22 to 0.00190 t/CO2e in FY23
as shown in the below chart. This is primarily attributable
to the increase in vessel visits from 514 in FY22 to
587 during FY23, in particular the return of cruise vessels,
and the resulting additional marine fleet movements
required for pilotage and safe berthage of these vessels.
0.0020
0.0015
0.0010
0.0005
-
FIGURE 1: TOTAL CARBON EMISSIONS tCO2e
12,000
10,000
8,000
6,000
4,000
2,000
-
FIGURE 2: CARBON EMISSIONS tCO2e PER TONNE
Scope 1Scope 2Scope 3
FY2018FY2019
FY2020FY2021FY2022

(certified)
FY2023

(certified)
FY2018FY2019
FY20120
FY2021FY2022

(certified)
FY2023

(certified)
CLIMATE CHANGE RELATED DISCLOSURE REPORT • NOVEMBER 2023 / 13

Key insights into our carbon footprint and our FY23 emissions are represented by the charts below:
1) TOTAL EMISSIONS BROKEN DOWN BY SCOPE
2) SCOPE 1 EMISSIONS BROKEN DOWN BY TOP EMISSION SOURCES
72% of Napier Port’s total FY23 emissions related to scope
1 emissions which is consistent with FY22 (73%). This
is due to its large fleet of mobile plant and marine assets.
These machines are all diesel consumers and are utilised
across day and night shifts throughout the financial year.
To help improve annual diesel usage a move to more
eco-efficient machinery is underway with two new
Eco Reachstackers purchased and operational during
FY23 and another is on order and due to arrive in FY24.
Other fuel reduction initiatives arise from our engagement of
our people with ways to identify and reduce our emissions
in practical ways. During FY23 this has been supported by
the inclusion of a emissions reduction component to our
annual staff recognition programme which incentivises and
rewards our people for achieving objectives aligned with
Napier Port’s strategic objectives. As a result of this,
during FY23 our people have identified a number
of practical initiatives to help reduce our emissions.
A sample of these initiatives that are being progressed
involves the investigation of the possible use of flow meters
on our tugs so that the Tug Masters can see in real time
the amount of fuel they are using during marine manoeuvres
and, secondly, investigating the possibility of switching
to synthetic shorelines to reduce the amount of pushing
required by tugs during berthing manoeuvres. Additionally,
various workstreams are underway to reduce the fuel usage
of our vehicle fleet e.g. reducing mobile plant idling times,
increasing the availability of existing electric/hybrid vehicles
to name a few.
The make-up of Scope 1 emissions is represented in the
charts below:
Scope 1 ...............6,278
Scope 2 ...............1,487
Scope 3 ...............1,007
Scope 1 ...............7,155
Scope 2 ...............1,759
Scope 3 ...............830
T/CO2e (FY23)T/CO2e (FY22)
SCOPE 1 (tCO2e) (FY23)SCOPE 1 (tCO2e) (FY22)
Forklift .......................................................................2,946
Marine Plant (incls Tugs) ...................................... 1,538
Crane ........................................................................1,412
Stationary Energy ...................................................
763
Light Vehicle ............................................................ 496
Forklift .......................................................................2,406
Marine Plant (incls Tugs) ...................................... 1,961
Crane ........................................................................1,126
Stationary Energy ...................................................
170
Light Vehicle ............................................................ 615
14 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

Waste – landfill with gas recovery ......................76
Container Freight – diesel tkm* ..........................325
Electricity T&D* losses kWh ................................137
Employee commuting ...........................................396
Other, including air travel/water supply m
3
......73
Waste – landfill with gas recovery ......................123
Container Freight – diesel tkm* ..........................278
Electricity T&D* losses kWh ................................161
Employee commuting ...........................................217
Other, including air travel/water supply m
3
......51
SCOPE 3 (tCO2e) (FY23)SCOPE 3 (tCO2e) (FY22)
3) SCOPE 2 EMISSIONS BROKEN DOWN BY TOP EMISSION SOURCES
17% of Napier Port’s total FY23 emissions related to scope
2 emissions (FY22: 18%) which arise from purchased
electricity off the national electricity grid. Consistent
with FY22, the top emission sources within this category
are powering reefer containers, operational wharf
and street lighting towers, and tug shore power
and related infrastructure.
4) SCOPE 3 EMISSIONS BROKEN DOWN BY TOP EMISSION SOURCES
11% of Napier Port’s total FY23 emissions related to
scope 3 emissions (up from 9% in FY22). Breaking down
the scope 3 emissions data further 39% of total scope
3 emissions are attributable to employee commuting and
32% is attributable to freight (trains and trucks) operating
between Napier Port and Manawatū Inland Port.
*tkm = tonnes per kilometre
*T&D = transmission and distribution
*tkm = tonnes per kilometre
*T&D = transmission and distribution
CLIMATE CHANGE RELATED DISCLOSURE REPORT • NOVEMBER 2023 / 15

SETTING TARGETS – DE-CARBONISING NAPIER PORT
Napier Port is committed to decarbonisation and reaching
net zero greenhouse gas emissions by 2050 and intends
to achieve this incrementally over time whilst considering
all the potential impacts.
Our sustainability strategy includes the development
and adoption of an emissions reduction strategy to
support Napier Port’s goal of net zero emissions by 2050.
During FY22, a draft emissions reduction strategy was
developed to provide the framework for those charged
with governance to outline the most effective emissions
reduction pathway for Napier Port. At a high level the
strategy aims to:
• Focus on the reduction of diesel consumption given
it is the primary source of our current emissions
• Align investment in low emissions technology with
- Our asset renewal program
- Any future transformation of Napier Port container
terminal operating modes
- The availability of emerging technology
• Grow our electrical infrastructure through potential
electrical capacity upgrades.
• Establish a decision-making framework that considers
low emission technologies and incorporates emission
considerations in investment or business development
decisions
This strategy framework will continue to be further
developed and involves further investigations into the
viability of alternative fuel sources and the array of new low
emissions technology.
Current emission reduction initiatives integrated within
our business:
• The operation of two Eco Reachstackers with a further
one on order with delivery due during FY24
• A continual program of light retrofitting with low energy
consumption LED alternatives to our light towers
and storage sheds
• Replacement of clear lite cladding systems to reduce
the need for interior lighting during daylight hours
• Deliberate prioritisation of lower fuel consuming tugs
• Reduction in unproductive usage (idle) hours across our
container handling mobile plant through the leveraging
of IOT data and technology systems
• Procurement policy commitments to consider and
evaluate renewable energy technologies and outcomes
as a step within the procurement of higher value assets.
Underpinning our existing Emissions Reduction
Strategy and supporting our wider Sustainability Strategy,
Napier Port currently has the following initiatives underway,
each with the potential to support the decarbonisation
of our operation:
• Undertaking a decarbonisation and alternate energies
assessment to evaluate in further detail, potential future
pathways of reaching net zero emissions
• On site solar generation installation scoping study
• Tendering of battery electric forklifts to partially replace
equipment within our Warehouse Operations container
packing division
• Identification of potential alternative future operating
modes and the ongoing refinement of existing operating
modes to extract improved working efficiency
• Tendering of potential replacement mobile harbour
cranes with integrated renewable energy sources
embedded within the design
• Partnering with equipment suppliers to evaluate proof
of concept renewable energy alternative equipment.
The decarbonisation and alternate energies assessment will
evaluate currently available renewable energy alternatives,
their wider adoption for use, and the whole-of-life cost
and impact to integrate. Aligned with broader industry
momentum and appreciating economic factors, a key output
is expected to be the delivery of a multifaceted plan for
progressing decarbonisation within our operations.
Napier Port’s Sustainability Strategy and Action Plan
is available on our website at:
napierport.co.nz/wp-content/uploads/2021/08/Napier-
Port-Sustainability-Strategy-and-Action-Plan.pdf
16 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

REFERENCES:
1. Wooley, J. M., et al. (2020). Climate change projections and impacts
for Tairāwhiti and Hawke’s Bay. NIWA.
2. IPCC Fifth Assessment Report. (2013).
3. IPCC Sixth Assessment Report. (2021).
4. Zhou, T. (2021). New physical science behind climate change:
What does IPCC AR6 tell us? The Innovation, 2(4).
5. Ministry for the Environment. (2022). Aotearoa New Zealand climate change
projections guidance: Interpreting the latest IPCC WG1 report findings.
6. Hausfather, Z., & Peters, G. P. (2020). Emissions – the ‘business as usual’
story is misleading. Nature, 557.
7. Ministry for the Environment. (2022). Interim guidance on the use
of new sea-level rise projections.
8. Lawrence, J., et al. (2022). Climate Change 2022: Impacts, Adaptation,
and Vulnerability. Contribution of Working Group II to the Sixth Assessment
Report of the Intergovernmental Panel on Climate Change. IPCC AR6,
WGII, Chapter 11. Cambridge University Press.
9. Stephens, S. A., et al. (2021). Future changes in built environment risk
to coastal flooding, permanent inundation and coastal erosion hazards.
Journal of Marine Science and Engineering, 9 (1011).
10. Williams, J., et al. (2023). Coupled atmosphere-ocean simulations
of contemporary and future South Pacific cyclones. EGUsphere.

CLIMATE CHANGE RELATED DISCLOSURE REPORT • NOVEMBER 2023 / 17

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