Energy & emissions

The quantum and type of energy source consumed is the driver of the Group’s GHG emissions. Therefore, maintaining focus on increasing the energy efficiency of its assets can help to reduce energy costs as well as GHG emissions.

With a portfolio that sees changes through the composition its assets through acquisitions or divestments, or to its size through redevelopments, the Group’s approach to date has been to set specific energy and emissions targets and related efficiencies by asset and activity, as opposed to setting total targets across the Group. Each asset and activity will have a target set based on its specific parameters, such as current performance, technical limitations and market demand, allowing for a more detailed and actionable approach to energy and emissions reductions.

Energy consumption

Direct energy consumption

Westfield’s direct energy consumption decreased slightly during 2011 despite continued growth in the size of Group’s shopping centre portfolio. Natural gas comprised the majority of total direct energy consumed – around 80% - and has remained stable with last year. The other significant energy sources are jet fuel, petrol, diesel consumed in construction activity, and diesel for backup generators. Diesel consumption decreased significantly this year due to the completion of construction activity at Westfield Stratford, the Friary (both in the United Kingdom) and Westfield Sydney. Petrol consumption increased due to a change in the contract with security contractors in the United States which brought them under Westfield’s operational control. In the United States 463 GJ of electricity was directly generated on-site from solar panels.

Westfield continues to focus on energy efficiency initiatives relating to fuel.  

Indirect energy consumption

Westfield has invested in technology for metering, management and reporting systems for electricity, improving the accuracy and granularity of data collected and giving facilities greater oversight of opportunities to improve energy efficiency. Overall, electricity, heating and cooling consumption remained similar in 2011 to 2010, despite the increase in size of the Westfield managed areas (chiefly mall common areas and Westfield office space). This is due to the initiatives in each country to improve efficiency, including solar installations; smoke damper modifications; lighting schedule adjustments; building management software upgrades; infrastructure replacements and process improvements. These initiatives are expected to significantly reduce electricity, heating and cooling consumption over the next five years.

In Australia, Westfield set a shopping centre portfolio electricity consumption cap at 2008 levels. As at December 31, 2011 electricity consumption has reduced from 2008 levels by around 20%. From 2012, Westfield Australia has committed to capping usage at 2011 consumption levels through until 2015. In 2011 the total Australian electricity consumption decreased slightly on prior year, due to continued operational savings across the shopping centre portfolio, partially offset by the completion of redevelopment openings at Westfield Belconnen and Sydney.

In the United States, in addition to targeting broad operational efficiencies, the portfolio-wide rollout of the ecoWISE system will substantially reduce energy consumption over the next five years. The ecoWISE building management system, which allows for real-time monitoring and management of all electrical equipment in the centre, will help drive these assets to become ‘smart buildings’, anticipated to reduce emissions by 5,281 tonnes CO₂ e over the first five years of implementation. 

The current focus in New Zealand is the identification and realisation of operational efficiencies to reduce emissions. The greatest opportunities for reduction will be in electricity and waste through ongoing monitoring of usage data and subsequent operational efficiencies. Carbon emissions are forecast to reduce annually by approximately 200 tonnes thanks to asset-specific targets achieved in 2011. 

In the United Kingdom at the London head office recycling included incineration of wet waste for renewable energy as part of the building-wide strategy for recycling. At shopping centres, facilities managers and building services managers have continued to reduce energy consumption by monitoring the building management system, adjusting non-essential lighting as well as a number of lighting retrofit programs. The opening of Westfield Stratford in October 2011, while contributing to the absolute increase of emissions in the United Kingdom (demonstrating the difficulty for the Group in setting global targets) has set the benchmark for retail centres in Westfield’s portfolio. It is one of the most environmentally efficient retail centres in the United Kingdom with an onsite combined heating and cooling plant that generates 75% of energy requirements.

GHG Emissions

The policy and regulatory landscape relating to GHG emissions and energy is changing internationally. Governments are responding to the challenge of climate change through a range of policy responses. In Australia, for example, there are new regulatory reporting requirements forGHG emissions. Each of these requirements are underpinned by reporting obligations essential to enable accurate measuring and monitoring of emissions and energy, and informed decisions-making by stakeholders. 

In 2011 Westfield’s total GHG emissions were 699,070 metric tonnes CO₂ -equivalents (t CO₂ e), comprising 31,126 t CO₂ e direct emissions, 479,785 t CO₂-e indirect emissions and 188,159 t CO₂ e of other indirect emissions. Total emissions increased in 2011 by 9,573 metric tonnes, or 1.4%, from 2010, as the business continues to expand.

Direct Emissions (Scope 1)

Around two-thirds of Westfield’s direct emissions result from the combustion of natural gas and other fuels on-site and transport fuels consumed by Westfield’s controlled vehicles. The remainder of Westfield direct emissions is from the leakage of refrigerant gases. 

Indirect Emissions (Scope 2)

The greatest proportion of Westfield’s total GHG emissions comprises indirect emissions, arising from the purchase and consumption of electricity, heat or steam in the common areas of the Group’s shopping centres and office space.

Other Indirect Emissions (Scope 3)

Westfield voluntarily reports selected other indirect emissions in accordance with guidance from the GHG Protocol. This includes emissions generated by disposal of waste to landfill; business travel by air, taxi, train and car; and employees commuting to and from work. Westfield also reports the full fuel cycle emissions associated with the purchase of fuels and emissions arising from distribution and transmission losses of purchased electricity where local Scope 3 emission factors are available.  

There has been a slight increase in Scope 3 emissions in 2011, chiefly due to an update in the waste emissions factor the United States (the quantum of US waste to landfill was similar to prior year), and more accurate US employee commute data after conducting a detailed survey of employees. There was also an increase in emissions from air travel, due to increased overseas travel arising from the international projects and business activities of the Westfield Group, including the expansion to Brazil. 

GHG Emissions by Scope