Spark New Zealand : 2023 Greenhouse Gas Inventory Report

GREENHOUSE GAS

INVENTORY

Spark Greenhouse Gas Inventory Report 2023

Spark New Zealand  Greenhouse Gas Inventory Report 2023

About this report

This document is the 2023 Greenhouse Gas Inventory Report for Spark New Zealand Limited ('Spark' and together with its subsidiaries, the 'Spark Group'). This report covers the emissions for FY23 (1/7/2022 to 30/06/2023) and the previous three financial years, FY20, FY21 and FY22. It has been prepared in accordance with The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (2004) ('the GHG Protocol'). For a detailed summary of our organisational and operational boundaries please see the Appendix.

This report has been approved by the Spark New Zealand Board and is dated 18 August 2023.

Justine Smyth, CNZM

Chair

Spark New Zealand Limited (NZX: SPK, ASX: SPK)

Contents

Spark's science-based	3
emissions reduction target
Performance summary FY23	4
About Spark	5
Our base year for reporting	6
Greenhouse gas emissions	7
Our emissions reductions	9
performance
Electricity consumption	11
Appendix A: Organisational 12
boundary
Appendix B: Operational	13
boundary
Independent Assurance	15
Report

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Spark New Zealand  Greenhouse Gas Inventory Report 2023

Spark's science-based emissions reduction target

56%

Spark New Zealand commits to reduce absolute Scope 1 and 2 GHG emissions 56% by 2030 from a FY2020 base year.

70%

Spark New Zealand commits that 70% of its suppliers by spend covering purchased goods and services and capital goods, will have SBTi-alignedtargets in place by 2026.

In August 2021, Spark received verification of its science-based emissions reduction target. The Science Based Targets initiative (SBTi) is established as the global standard for corporate emissions reduction targets. Over 3,100 organisations have set verified emissions reduction targets since it launched in 2015. In New Zealand 21 companies have set targets, with a further ten committed to set targets within two years.

All SBTi targets must have a strict absolute reduction target for Scope 1 and 2 emissions, and also include a separate Scope 3 target if these emissions are greater than 40% of the total footprint.

• Scope 1: Direct emissions from sources owned or controlled by Spark
• Scope 2: Indirect emissions from purchased electricity
• Scope 3: Indirect emissions from other sources in the value chain - e.g., production of purchased materials, transportation, business travel and use of sold products

SBTi targets are set against sector-specific emissions trajectories. The ICT sector pathways were developed with the International Telecommunications Union (ITU) and provide specific emissions reductions for mobile and fixed networks, and data centres, based on projected growth and efficiency gains. These reductions are then calculated against our own emissions profile and the share of our emissions from each activity, giving Spark a reduction target of 56% over the next decade.

The SBTi also sets rules for recalculating targets for organisations that have significant changes to their structure, for example when investing or divesting business from group structures. See page 6 for information on our reporting scope and changes made to our reporting over the past year. These changes do not require us to recalculate our scope 1 and 2 SBTi emissions reduction target, which remains at a 56% reduction from FY20 to FY30. The changes in reporting scope are backdated to our FY20 emissions baseline, meaning our ambition level remains the same.

Setting our scope 1 and 2 emissions target:

2020-2030 trajectories for ICT operators

Data			Mobile
Centres			Networks
53%				45%
reduction			reduction

Fixed

Networks

62%

reduction

Spark

Combined

56%

reduction

Source: Guidance for ICT companies setting science based targets, ITU, GESI, GSMA, SBTi

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Spark New Zealand  Greenhouse Gas Inventory Report 2023

Performance summary FY23

13,318	tracking below our SBTi
	Scope 1 and 2 emissions
tonnes CO2e	reduction target pathway

29.8%

scope 1 and 2 emissions

Scope 1 and 2 emissions reduced significantly year-on-year

37.1%

grid emissions intensity

Greater share of renewable generation has driven down emissions per unit of electricity consumed from national grid

1.8%

growth in electricity consumption

Driven by investment in mobile networks and data centres, offsetting efficiency and network simplification savings

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Spark New Zealand  Greenhouse Gas Inventory Report 2023

About Spark

Spark is New Zealand's largest telecommunications and digital services company. Our customers range from individual New Zealanders and households to small businesses, not-for-profits, government and large enterprise clients. Across all our services - mobile, broadband, cloud services, digital services and entertainment - we have relevance for almost every New Zealander.

98%	99%
of New Zealanders	of the population
reached by our	reached by our Internet
4G network	of Things network1

Ctheonnection
to
rest of through
the world
	Australia
Connection through Australia
to
the rest of the world

Connectionto

through		USA	world
	the
of
rest			USA
			through
the
			world
Connectionrest
				the
				of
		the
to

63		699k
retail stores		broadband connections
24	16
regional business hubs		data centres
Active infrastructure on
~1,500	5,432
mobile sites supporting		New Zealand
more than 2.7 million		employees
mobile connections

Fibre Transport Network

Data Centres

Southern Cross Cable

Southern Cross Next Cable

Earth Station Satellite Link

Corporate Offices

Tasman Global Access Cable

We operate the following brands and businesses

Consumer		Business	Community		Growth markets		Other brands

All data at 30 June 2023

1 Cat-M1 Internet of Things network.

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