Sustainability Report 2010
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Environment

EnvironmentEnvironment

Westfield Chermside, AUSWestfield Chermside, AUS
Westfield Santa Anita, USWestfield Santa Anita, US
Westfield London, UKWestfield London, UK

Reducing its environmental impact through the way it designs, constructs and manages its shopping centres is a priority for the Group. 

Measuring the Impact

Westfield’s approach to sustainability has broadly been to run an efficient business and use resources more wisely. 

In many cases this has simply meant extending current practices where there is a strong record of achievement, such as water and waste management. In other areas it has involved the introduction of complex processes, such as ways of accurately measuring greenhouse gas (GHG) emissions.

As the Group continues to run a more efficient and environmentally-responsible business through the management of current assets and the design and construction of new centres, it has also taken into consideration factors including financial implications of environmental inefficiency; evolving regulatory requirements; energy and emissions reporting obligations and growing industry and stakeholder expectations.

Some years ago, the Group began a process to measure and report accurately and consistently on its global GHG emissions. An inventory of global GHG emissions was undertaken for the first time in 2006, allowing Westfield to identify energy efficiency opportunities and also report on GHG emissions externally through the Carbon Disclosure Project and other reports. 

Energy and Emissions

Westfield’s ability to measure and monitor energy consumption is critical to reducing operational costs which fluctuate due to changes in energy source and prices. The type and quantity of energy used also determines the volume of GHG emissions generated from Westfield’s operations. 

 

 

It is an ISO 14064 requirement that all direct and indirect emissions (scope 1 and 2) from facilities within the organisational boundaries be reported. 

For other indirect emissions (scope 3), reporting is optional. In assessing whether to report other indirect emissions, Westfield used guidance from the GHG Protocol in determining which indirect emission categories were relevant and selected the most material categories that could be influenced by the company.

emissions by source

Sources of Emissions

Direct Emissions (Scope 1)

Westfield’s direct emissions result from the natural gas consumed on site, transport fuels combusted by Westfield’s controlled vehicles and non-transport fuels used on site. Westfield also generates direct emissions from the leakage of synthetic gases, being refrigerants from air conditioning units.

Indirect Emissions (Scope 2)

The greatest proportion of Westfield’s emissions is ‘indirect’ emissions, arising from the purchase and consumption of electricity, heat or steam in the common areas of the shopping centres and Westfield-tenanted buildings. 

Other indirect Emissions (Scope 3)

Other indirect emissions are generated by disposal of waste to landfill; business travel by air, taxi, train and car; and employees commuting to and from work. 

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GHG Emissions by Scope

Total global GHG emissions for 2010 across all scopes were 689,497 metric tonnes CO2-equivalents (t CO2e), comprising 30,975 t CO2e direct emissions, 482,582 t CO2e indirect emissions and 175,940 t CO2e of other indirect emissions. Total emissions decreased in 2010 by 2,541 metric tonnes, or 0.4%, from 2009. This net emissions reduction is predominantly due to the decrease in waste sent to landfill and the slight decrease in purchased electricity emissions offsetting the increase in direct emissions arising from more accurate measurement of synthetic gas usage. 

Purchased electricity is globally the largest source of Westfield’s GHG emissions; accounting for 78% of scope 1, 2 and 3 emissions.

In Australia, emissions from purchased electricity have decreased each year from 2008. The decrease between 2009 and 2010 was 19,600 tCO2-e, or 5%. This decrease is due the ongoing benefit of weekly reporting of house usage, implemented in 2010, and Centre Management diligence along with energy efficiency Capital Projects. 

The current focus in New Zealand and the United States is minimising emissions through ‘low hanging’ operational efficiencies. The greatest opportunities for reduction are in electricity and waste through ongoing monitoring of electricity and waste data and implementing operational efficiencies. Emissions are forecast to remain stable for the next five years based on current project pipeline and asset portfolio.

In the United Kingdom, Facilities Managers and Building Services Managers continue to reduce energy consumption by monitoring the building management system, adjusting non-essential lighting schedules and changing the light fittings to more energy efficient versions. Specific initiatives were undertaken at Westfield London to reduce the energy used for air-conditioning. Smoke damper controls were installed which open when a set temperature is reached, allowing air cooling in the centre. This saved four hours of air-conditioning time in the morning and in addition, the condenser flow and return temperature were optimised in order to reduce the need to cool, therefore reducing the consumption of gas. 

 

 

 

direct consumption by source

Direct Energy Consumption by Source 

Westfield’s direct energy consumption has remained relatively stable over the past 12 months with natural gas continuing to make up the greatest proportion (approximately 80%) of total direct energy consumed. Jet fuel and diesel for back-up generators make up the bulk of the remaining energy consumed. In the United States, 1,478,790 MJ of electricity is directly generated on-site from solar panels installed at three shopping centres. 

Westfield continues to focus on energy efficiency initiatives. For example, at Westfield London optimisation of condenser flow and return temperature reduced the need for cooling and achieved a significant reduction in natural gas usage (22,280,000 MJ reduction). 

 

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indirect consumption by source

 

Indirect Energy Consumption by Source 

The bulk of indirect energy consumed is electricity from non-renewable sources such as coal and gas-fired power plants. Westfield is working on increasing the energy efficiency of its properties in order to reduce the electricity consumed per square metre.

In Australia, Westfield challenged the shopping centre portfolio to cap electricity consumption at 2008 levels. At December 31, 2010 electricity consumption in kWh reduced by 9% from the 2008 baseline level and it’s anticipated that by December 31, 2011 a reduction of 11% will be achieved. From 2012 Westfield Australia will cap usage at 2011 consumption levels through until 2015. 

In the United Kingdom — the Group’s only market using an alternative indirect non-renewable source of energy — heat comprises 3.8% of Westfield’s energy use. Improved energy purchasing strategies and reducing non-essential use of equipment and lighting at centres has achieved significant energy and cost savings. For example, at Westfield London there has been a 40% decrease in energy use due to the reduction of non-essential mall and car park lighting between 12am-8am.

In the United States 3,788,298MJ of indirect renewable energy is generated from wind energy sourced from a third party. This represents 25% of the energy supplied to the three centres in Ohio. In addition, work has been completed to implement an enterprise energy management system across the Group’s US portfolio to manage and improve centre efficiency. (See page 25, EcoWISE case study). 

New Zealand’s energy consumption has remained relatively stable over the past two years. An electricity consultant has been engaged to advise on all aspects of electricity use including procurement and a contract has been established to increase efficiencies in the building management control systems.

 

 

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Future Activities

The Group’s increased focus on sustainability in recent years has provided an opportunity to implement long-term strategic changes with every new project. The cycle of a shopping centre’s development from beginning to end could typically cover up to 15 years, incorporating planning, design, construction and operations until the next major redevelopment opportunity, so new projects are a significant opportunity to implement more sustainable business practices. 

Environmental impact assessments are a core component of the design phase and elements that form part of Westfield projects in recent years include:

  • the installation of more efficient building management systems;
  • use of more sustainable heating and cooling systems;
  • increased use of recycled materials for construction (including wood; concrete; brick and foundation materials);
  • more efficient supply chain – use of local contractors and suppliers;
  • installation of water-efficient facilities internally and externally including amenities; irrigation such as in-ground tanks and other rain‑water harvesting systems;
  • efficient recycling of non-hazardous construction materials;
  • project design targeting specific ratings outlined by relevant policy-makers and industry bodies (for example, Westfield Sydney in Australia has been designed to target a 6-star green-star rating with the Green Building Council of Australia);
  • collaboration with policy-makers and industry bodies to establish meaningful benchmarks and design tools for future projects