Community

Environmental and social responsibility management

MAp considers that social, environmental and economic benefits arise from responsible private-sector investment in the construction, development and operation of high-quality infrastructure. Such infrastructure underpins much social and economic development – it helps people to travel, trade and communicate and improves the quality of their lives through the provision of important services.

Many new infrastructure projects undergo extensive social and environmental impact reviews before being approved to proceed. The process is typically run by governments which will have balanced the costs and benefits of the project. Accordingly, a government-run process will usually require new infrastructure to produce more efficient environmental outcomes than existing alternative infrastructure or, where an investment is made in existing infrastructure, for that investment to produce improved environmental outcomes than existed beforehand.

Consequently, MAp is aware of the potential for environmental and social risks, as well as significant benefits. These risks may include pollution, including carbon emissions. MAp is conscious that its investments providing essential services create environmental and social responsibilities.

Against this awareness of risk and responsibilities, there are relevant practical and structural factors which must be considered when determining steps to take to address environmental and social responsibilities. MAp holds and manages an investment stake in the underlying airport on behalf of its investors. The majority of the social and environmental impacts of MAp’s investments are at the airport level and are dealt with by each airport’s management. This management is separate from Macquarie and Macquarie’s management company staff who administer the fund and monitor the assets through board representation and regular reporting.

MAp has an overarching risk management framework governing its investments which encompasses its environmental and social responsibilities. Key within that framework is MAp’s board environmental policy which, in essence, recognises that it is the responsibility of each airport to comply with relevant laws and regulations. The framework requires that each airport complies with the regulatory framework and minimum standards of the jurisdiction within which the airport operates, and with any additional requirements imposed by governments or other authorities as part of the investment approval process. As MAp’s airports are currently in OECD or OECD-like nations, regulatory standards and other requirements are rigorous.

In addition, MAp’s environmental and social responsibilities are identified and acknowledged through the investment process, as follows:

• Asset selection – social and environmental obligations are identified as part of the acquisition process
• Ongoing asset management – compliance with environmental requirements is monitored and potential social and environmental issues are identified
• Stakeholder reporting – policies, social and environmental initiatives and compliance performance are reported internally and, where appropriate and/or required, externally.

Environmental and social responsibility-related regulatory requirements

MAp is not aware of any material breaches of relevant environmental or social responsibility-related regulatory standards by its airports during the year ended 31 December 2007.

“Social, environmental and economic benefits arise from responsible private sector investment”

Environmental and social responsibility-related initiatives during 2007

Because of MAp’s continuing commitment to high standards of environmental stewardship, we recognise that our businesses will only be able to reach their full potential if we respond to the needs of the community surrounding our airports and beyond.

Examples of notable environmental and social responsibility-related initiatives undertaken during the past financial year at MAp’s airports include:

Sydney Airport

Important progress was made with the implementation of Sydney Airport’s environment strategy which aims to improve the airport’s environment while managing the environmental risks associated with its operations.

Water and energy saving action plans were developed in line with New South Wales Government guidelines.

Water

In early 2007 Sydney Airport participated in a pilot program with Sydney Water to convert all existing taps and showers in T1, T2 and the Ulm Building, making them significantly more water efficient. The conversion reduces water usage by 6% while maintaining full functionality. Sydney Airport is also monitoring water usage in the domestic precinct and at T2 to identify water-saving opportunities and investigating the feasibility of stormwater harvesting across the airport.

Work commenced during the year on a water reticulation system at T1 to allow for the use of recycled water in toilets. Tenders were issued for the construction of a water treatment plant to provide the recycled water, with construction of this facility expected to start in 2008. Once complete and fully operational, the plant will save up to one million litres of water per day.

Energy and carbon emissions

Sydney Airport also commenced an investigation to determine its carbon footprint and will develop a strategy to reduce carbon emissions. This involves working with on-airport partners to reduce energy use by encouraging efficient energy use. Measures will also include more efficient ways to manage aircraft on the ground before departure, and giving aircraft more accurate landing times for cruise and descent planning, thereby eliminating the need for aircraft to hold to the west or north of Sydney.

Waste

Implementation of Sydney Airport’s resource recovery plan began in 2007. The plan will reduce the amount of waste by recovering resources from the non-quarantine waste stream.
This will reduce both the quantity of waste requiring disposal and the cost of processing waste that cannot be recovered.

Airport environment

During the period a management program was developed to support the rehabilitation of the environmentally sensitive ‘engine ponds’. A fish ladder was commissioned to assist native fish from Botany Bay to move into the wetland. A re-vegetation project also began with planting planned to eventually cover 5,000m² of the engine pond banks.

Certification

Sydney Airport is seeking ISO 14001 accreditation – an internationally recognised standard for measuring environmental performance – as a way to manage environmental risk and assess compliance with environmental policies. During 2007 an extensive review of environmental management software was undertaken with a preferred system trialled. The software will provide a solid and comprehensive system for identifying, managing, reporting and reviewing environmental risks. Sydney Airport is on track to achieve ISO 14001 certification by 2010.

Community

During 2007 Sydney Airport supported a wide range of community activities, sponsoring local sporting clubs, awarding educational grants for local schools and raising funds for charities.

Sponsorships included the local Nippers surf lifesaving club, and junior football and rugby teams playing in communities adjacent to the airport. The educational grant program provides funds to improve facilities for students in local schools, and in 2007 more than A$90,000 was collected at the airport and distributed to a variety of charities in partnership with the Rotary Club of Botany.

Copenhagen Airports

Noise

On 1 January 2007 Environmental Centre Roskilde took over from the Danish Environmental Protection Agency as the regulatory authority with respect to noise and air pollution at Copenhagen Airport. Work began with the new authorities and, during the year, noise levels were continuously managed and checked to ensure that the airport complied with the environmental approval governing factors, including noise impact, maximum night-time noise and terminal noise.

Energy and carbon emissions

As part of the organisation’s environmental policy, Copenhagen Airport’s supervisory board adopted an ambitious target during the year – to reduce Copenhagen Airport’s CO2 emissions by 21% by 2012, compared with the 1990 Kyoto baseline. Consumption of non-renewable energy will be reduced as much as possible, always taking into account traffic developments. This target will be achieved and maintained through a reduction in power consumption, continuous monitoring of energy consumption, and an evaluation of new technologies with a view to implementation.

Brussels Airport

Water

Following new agreements with the Belgian authorities, a tendering procedure was established during 2007 for the construction of Brussels Airport’s own water treatment plant. The plant will be developed to treat wastewater flows, including sanitary wastewater from the terminal buildings and from aircraft and de-icing fluids, and will be operational in 2009.

Energy and carbon emissions

Due to the emissions of its central heating plants the Brussels Airport Company falls under the application of the Belgian CO2 Emission Trading Scheme (Kyoto). Between 2005 and
2007 Brussels Airport was required to report CO2 emissions. However, from 2008, the airport will effectively have to buy or be able to sell emission rights.

To this end, two studies were set up during the year to examine CO2 emissions and energy efficiency. The first will inventory all gaseous emissions at the airport, and provide a basis for further investigation of reduction measures. The second study will determine which green energy generation technologies are most appropriate for Brussels Airport.

Bristol Airport

Energy and carbon emissions

Bristol Airport is one of the top three energy efficient regional airports in the UK. A number of initiatives pursued during 2007 focused on reducing the airport’s energy use. A ‘green’ tariff electricity supply contract is now in place for the south side of the airport and a project to install a wind turbine on the north side was developed for delivery in 2008. Bristol Airport also developed and implemented a clean vehicles program, and new car park buses meeting the Euro 5 emissions standards were introduced in the summer of 2007.

Waste

Until August 2007 the majority of waste recycled at Bristol Airport was glass and cardboard. Since then the airport has increased recycling to include paper, plastic bottles, polythene and aluminium with a target of 40% recycled waste by the end of 2010. Since the introduction of new recycling bins across the business, recycled waste for the last quarter of 2007 stood at over 20%.

Noise

The airport operates a noise management complaints process whereby all aircraft noise complaints are logged, investigated and reported at the Consultative Committee. Noise monitors record departures and arrivals on runway 27. A project is underway to install an additional monitor for departures on runway 09. The new monitor and a system to record routes taken by arriving and departing aircraft will be commissioned in 2008.

Community

In 2007 Bristol Airport worked on several projects with the local community and provided the equivalent of almost £39,000 in donations in kind, and £25,000 funding for educational, heritage, environmental and leisure projects within the community.

The airport charity in 2006–2007 was Children’s Hospice South West, for which £77,400 was raised by airport staff and volunteers.