Vector LimitedNZX: VCT

2024 GHG Inventory Report

Aug 26, 2024 at 9:19 PM UTC · MarketScreener

GREENHOUSE GAS EMISSIONS INVENTORY REPORT 2024

Summary of

Organisational

Operational

Data collection

GHG emissions

References

emissions

boundaries

and quantification

calculation

reductions

and Appendix

and results

Introduction

This report is for the Vector Limited Group (Vector or the group). The group comprises Vector Limited and its subsidiaries. Vector Limited is NZX listed and 75.1% owned by Entrust, a private community trust. A list of all subsidiaries can be found in appendix 1.

The purpose of this report is to transparently disclose Vector's greenhouse gas ("GHG") emissions: how they are quantified, how Vector is tracking towards its reduction target and steps planned to further reduce GHG emissions.

The inventory covered in this report is a complete and accurate quantification of the amount of GHG emissions that can be attributed to Vector's operations within the declared boundary and scope for the specified reporting period. Any exclusions from reporting are disclosed and justified.

This report has been prepared in accordance with the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard [1] ("GHG Protocol Standard"), the Greenhouse Gas Protocol: Corporate Value Chain (Scope 3) Accounting and Reporting Standard [2] ("GHG Protocol Value Chain Standard"), and other related technical guidance issued under the GHG Protocol Standards.

Statement of intent

Vector reports on its GHG emissions on an annual basis and has been calculating its carbon footprint since 2017. The intended users of this report are all interested stakeholders, including shareholders, investors, regulators, communities, employees, customers and contractors. The GHG inventory has been reasonably assured by KPMG; see appendix 3.

Reporting period covered

This GHG inventory report covers Vector's financial year 1 July 2023 to 30 June 2024 ("FY2024"). A summary of emissions can be found in both Vector's annual report 2024 and climate-related disclosures 2024.

Disclaimer

This report is not earnings guidance or financial advice for investors. Rather, this report provides a summary of Vector's greenhouse gas emissions inventory. The report reflects Vector's current understanding as at 26 August 2024, in respect of the 12 months ended 30 June 2024.

Greenhouse gas emissions calculations use data and methodologies that are developing. Vector acknowledges that the understanding of climate change, and the inputs to assist with this understanding are constantly evolving.

This report contains forward looking statements (including targets and assumptions) that may not evolve as predicted.

Vector (including its directors, officers and employees) do not:

represent that the statements, intentions and/or opinions contained in this report will not change, or will remain correct after publishing this report, or
promise to revise or update those statements and opinions if events or circumstances change or unanticipated events happen after publishing this report.

The greenhouse gas emissions data described in this report, and Vector's strategies to achieve our greenhouse gas emissions target, may not eventuate or may be more or less significant than anticipated. There are many factors that could cause Vector's actual results, performance or achievement of climate- related targets to differ materially from that described, including economic and technological viability, climatic, government, consumer, and market factors outside of Vector's control. Vector gives no representation, warranty or assurance that actual outcomes or performance will not materially differ from the forward-looking statements.

To the maximum extent possible under New Zealand law, Vector (including its directors, officers and employees) does not accept and expressly disclaims any liability whatsoever for any direct, indirect or consequential loss or damage occasioned from any use or inability to use the information contained in this report, whether directly or indirectly resulting from inaccuracies, defects, errors, omissions, out of date information or otherwise.

We recommend you seek independent advice before acting or relying on any information in this report. Vector reserves the right to revise statements made in, or its strategy or business activities described in, this report, without notice.

This disclaimer should be read along with other methodologies, assumptions and uncertainties and limitations contained in this report, as well as in Vector's climate-related disclosures for FY2024. All amounts disclosed in this report are estimates and are in NZD unless context otherwise requires.

This report is not an offer document and does not constitute an offer or invitation or investment recommendation to distribute or purchase securities, shares, or other interests. Nothing in this report should be interpreted as capital growth, earnings or any other legal, financial tax or other advice or guidance. For detailed information on our financial performance, please refer to our annual report,available on vector.co.nz/investors/reports.

2 Vector GHG Emissions Inventory Report FY2024

Summary of

Organisational

Operational

Data collection

GHG emissions

References

emissions

boundaries

and quantification

calculation

reductions

and Appendix

and results

Summary of emissions

In FY2024, Vector's greenhouse gas emissions across scopes 1, 2 and 3 amount to 1,530,722 tCO2e. This is a 19% reduction from FY2020, Vector's base year.

Table 1: GHG inventory by scope and category in tCO2e. FY2024 emissions highlighted in green indicate a reduction since the base year or the year in which emissions were first reported, whereas emissions in red show increases.

EMISSIONS CATEGORY	FY2020	FY2021	FY2022	FY2023	FY2024
Total scopes 1, 2 and 3	1,900,841	1,682,645	1,602,955	1,620,856	1,530,722
Scope 1	24,431	19,991	23,763	20,019	15,545
Natural gas distribution fugitive emissions ‡	18,313	13,507	16,218	13,323	9,379

SF6 leakage ‡	524	1,263	2,081	1,299	924
Other fugitive emissions	141	142	134	141	65
Stationary combustion	3,558	2,971	3,348	3,183	3,102
Vehicle fleet	1,895	2,108	1,982	2,073	2,075
Scope 2	33,148	34,448	39,486	42,810	26,900
Electricity consumption* (market-based)	643	826	408	220	8

Electricity consumption (location-based)	815	801	891	1,210	682

Electricity distribution losses	32,505	33,622	39,078	42,590	26,892

Scope 3	1,843,262	1,628,206	1,539,706	1,558,027	1,488,277
Purchased goods and services

Upstream-purchased natural gas	227,569	170,442	136,821	152,290	148,230
Upstream-purchased LPG	46,555	47,609	52,806	58,140	62,529
Fuel used by field service providers	6,475	6,822	6,456	7,235	7,127
Upstream-purchased materials and products	15,266	11,733	13,874	11,783	16,089

Upstream-purchased other goods and services	75,939	71,465	75,080	79,559	78,783

Fuel-andenergy-related activities	1,405	1,312	1,450	1,456	1,406

Upstream transportation	2,717	2,557	3,225	2,891	3,085

Waste generated in operations				92	174

Business travel	332	103	95	271	187
Employee commuting and working from home				933	821
Use of sold products
Distributed natural gas AKL - Total	772,265	760,185	711,337	735,048	706,356

Sold natural gas - AKL	151,603	115,578	57,149	66,376	42,475

Shipped natural gas - AKL			55,245	66,265	64,985

Other distributed natural gas - AKL	620,662	644,607	598,943	602,407	598,896

Sold natural gas - non-AKL	562,567	381,871	231,127	223,568	184,162

Shipped natural gas - non-AKL		47,002	183,614	160,293	154,973
Sold LPG	131,385	126,245	122,904	123,542	123,565
Investments
Liquigas	87	89	108	105	86
Bluecurrent	700	771	809	821	703

Biogenic carbon	162	134	150	138	131

Updated emission factor for methane to GWP of 28, and SF6 to GWP of 23,500 in FY2024

Market-basedmethod for electricity consumption. While location-based electricity emissions are also included in our inventory, the amounts in table 1 include only market-based emissions, as these form part of our emissions reduction target.

Summary of

Organisational

Operational

Data collection

GHG emissions

References

emissions

boundaries

and quantification

calculation

reductions

and Appendix

and results

Glossary of terms

Table 2: Definition and glossary of terms

TERM	DESCRIPTION
AKL	Auckland
Carbon footprint	Vector's greenhouse gas emissions covered by the Kyoto Protocol, calculated in tonnes of carbon dioxide
	equivalent (tCO2e)
CO2	Carbon dioxide
CRD	Climate-related disclosures - that comply with Aotearoa New Zealand Climate Standards
DEFRA	Department of Environment, Food and Rural Affairs (UK)
EGF	Vector's electricity distribution, gas distribution and fibre business
Emissions	Greenhouse gas emissions
EPD	Environmental product declaration
EV	Electric vehicle
FSP	Field service provider
FY	Financial year
GHG	Greenhouse gas
	For the purposes of this report, GHGs are the seven gases listed in the Kyoto Protocol. These are currently:
	carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs),
	sulphur hexafluoride (SF6), and nitrogen trifluoride (NF3)
GHG Protocol	The Greenhouse Gas Protocol, a partnership between the World Resources Institute (WRI) and the World Business
	Council for Sustainable Development (WBCSD). The GHG Protocol develops standards and guidance, such as the
	Corporate Standard and the Corporate Value Chain (scope 3) Standard, both used as guidance for this report
GWP	Global warming potential, a measure of how much energy the emissions of 1 tonne of a greenhouse gas will
	absorb over a given period, relative to the emissions of 1 tonne of carbon dioxide (CO2)
GXP	Grid exit point
HVAC	Heating, ventilation, and air conditioning
ICP	Installation control point
IPCC (AR5)	Intergovernmental Panel on Climate Change (Fifth Assessment Report)
LPG	Liquefied petroleum gas - a mixture of hydrocarbons, consisting primarily of propane and butane. The higher
	density - in contrast to natural gas - allows it to to be easily compressed to liquid, and is therefore largely
	distributed in bottles
MfE	Ministry for the Environment (New Zealand)
NZ	New Zealand
NZU	New Zealand units
NZECS	New Zealand energy certificate scheme
NZ ETS	New Zealand emissions trading scheme
OGMP	Oil and Gas Methane Partnership
SBTi	Science Based Targets initiative
SELMA	Street evaluation laser methane assessment
SF6	Sulphur hexafluoride - a gas used to electrically insulate electrical assets. SF6 has a global warming potential of
	23,500 times that of CO2
T&D	Transmission and distribution
tCO2e	Tonnes of carbon dioxide equivalent
TPD	Third-party damages
Vector	Vector Limited Group
WTT	Well-to-tank

4 Vector GHG Emissions Inventory Report FY2024

Summary of

Organisational

Operational

Data collection

GHG emissions

References

emissions

boundaries

and quantification

calculation

reductions

and Appendix

and results

1. Organisational boundaries

Description of Vector

Vector is a New Zealand energy company which runs a portfolio of businesses delivering energy and communication services to more than 624,000 residential and commercial customers across New Zealand.

The operations of the group are electricity and gas distribution, natural gas and LPG sales, telecommunications and new energy solutions. For further information, visit vector.co.nz.

Organisational boundaries

Vector uses the operational control approach, as defined by the GHG Protocol Standard. This approach was chosen as it allows a focus on emissions over which the group has greatest control, and thereby can influence most with emissions reduction measures.

For carbon accounting purposes, emissions are categorised into the business areas as outlined in figure 1. A detailed list of all subsidiaries and shareholdings under Vector and their relevance for carbon accounting can be found in appendix 1.

Treatment of investments

In addition to these business areas, Vector has investments in a number of businesses that complement our network businesses and strengthen our capabilities in the energy services field. This subsection discusses the treatment of emissions generated by those businesses.

For carbon accounting purposes, Vector has set a threshold for equity investments of 20%, unless significant influence can be evidenced.

Liquigas Limited (60.25%)

Liquigas provides tolling, storage and distribution of bulk LPG in New Zealand. It is not considered to be under Vector's operational control, because Vector does not have "full authority to introduce and implement its operating policies at the operation" (definition of operational control according to the GHG Protocol Standard). As a result, Liquigas' scope 1 and 2 emissions are included under Vector's scope 3 - category 15 (investments), with a 60.25% equity share. On 26 July 2024 (after the balance date of this disclosure) Vector entered a conditional agreement to sell the 60.25% shareholding of the Liquigas business. Any future sale of Liquigas will be reflected in future reports as required/appropriate.

Bluecurrent (50%)

Previously fully owned by Vector as Vector Metering, Bluecurrent manages around 2.5 million advanced electricity and gas meters across New Zealand and Australia. Bluecurrent provides high- resolution energy data services to enable new and innovative energy products that give customers large and small the ability to make smarter energy choices. Vector has ceased operational control of Bluecurrent and, via the same method as Liquigas, accounts for a proportional share of Bluecurrent's scope 1 and

2 emissions under scope 3 - category 15. Bluecurrent is jointly owned by QIC and Vector.

mPrest Systems Limited (8.1%)

At the balance date of this disclosure, Vector held an 8.1% shareholding in mPrest Systems (2003) Limited. The mPrest technology allows companies to better monitor, analyse, and control energy networks and connect traditional infrastructure like electricity lines and substations with new technology like solar and battery energy solutions.

On the 22 August 2024 (after the balance date of this disclosure) Vector sold its shares in mPrest.

Vector's shareholding in mPrest is excluded from our analysis.

Treatment of business closures

Vector Powersmart

Vector Powersmart discontinued operations as of 31 December 2023. Because this was an organic business shutdown, as opposed to a sale, the FY2020 base year does not need to be rebased. Further to this, Vector Powersmart's emissions are well below Vector's materiality threshold for re-calculation.

The data captured during the period October 2023 to December 2023 may not be complete due to the business not being operational in January 2024 to conduct adequate quality control. We expect any excluded data to be immaterial and therefore have not conducted quality control of this data from the group level.

Natural Gas Trading

Vector's Natural Gas Trading business has been on a wind-down since FY2020, whereby contracts for natural gas sales were not renewed. This has led to a year-on-year reduction in gas sales- related scope 3 emissions, under category 11 (use of sold products) and category 1 (purchased natural gas). In FY2024, Vector entered into a conditional agreement to sell the remaining contracts of the Natural Gas Trading business as of 1 July 2024, and shut down the business from then on. Because the remaining contracts are to be sold to a third party, for FY2025 reporting Vector will rebase the emissions associated with these sold contracts.

Free public electric vehicle chargers

Since 2016, Vector has provided free public electric vehicle ("EV") charging stations across Auckland to support the uptake of EVs. The electricity costs associated with charging these vehicles are paid for by Vector, and therefore have been included in our scope 2 emissions. In FY2024, Vector sold/de-energised our charging stations. The emissions associated with the electric chargers do not meet Vector's materiality threshold for rebasing

the FY2020 base year.

Summary of

Organisational

Operational

Data collection

GHG emissions

References

emissions

boundaries

and quantification

calculation

reductions

and Appendix

and results

1. Organisational boundaries (continued)

Figure 1: Vector Limited's businesses per organisational boundaries. Vector's Natural Gas Trading business and Vector Powersmart have been discontinued as of 1 July 2024 and 31 December 2023, respectively.

EGF

Vector Ongas

Electricity

distribution

network

Natural gas distribution network

Vector

Fibre

LPG

Owns and operates the electricity network within the wider Auckland region. This consists of more than 19,000 km of electricity lines, delivering power to over 624,000 homes and businesses.

Owns and operates the gas distribution network in the wider Auckland region, supplying gas to over 120,000 installed connection points, through 4,650 km of mains pipelines, distributing around 13 PJ of gas per year.

Designs, builds and maintains data networks in the wider Auckland region.

Distributes and sells LPG to residential, commercial and industrial customers throughout New Zealand, through bottled LPG products and piped LPG networks. On 26 July 2024 (after balance date of this disclosure) Vector entered a conditional agreement to sell the LPG business. Any future sale of the LPG business will be reflected in future reports as required/appropriate.

Vector Limited

Natural

Gas

Trading

HRV

Vector

Powersmart

Vector

Technology

Solutions

Supplies piped natural gas to industrial and commercial businesses in the North Island including customers in the agriculture, horticulture and manufacturing industries. This business has been discontinued as of 1 July 2024.

Provides energy-efficient solutions covering home ventilation, home heating, and water filtration systems, as well as electric vehicle charging.

Vector Powersmart has delivered solar photovoltaic and energy storage systems in New Zealand and the Pacific Islands. This business has been discontinued as of 31 December 2023.

A digital solutions business that takes internally developed products to market.

6 Vector GHG Emissions Inventory Report FY2024

Summary of

Organisational

Operational

Data collection

GHG emissions

References

emissions

boundaries

and quantification

calculation

reductions

and Appendix

and results

2. Operational boundaries

Operational boundaries

The GHG Protocol Standard splits emissions into three categories:

Scope 1 - Emissions Vector directly controls, such as vehicle fleet fuel combustion, diesel backup generators, natural gas fugitive emissions, and SF6 leaks.

Scope 2 - Vector's consumption of purchased electricity, and electricity distribution losses along the network.

Scope 3 - All other indirect value chain emissions, such as customer energy consumption and supply chain emissions.

The GHG Protocol Value Chain Standard splits scope 3 emissions into 15 categories. To gain a more comprehensive understanding of our emissions, in FY2020 Vector commissioned an external review of our carbon accounting methodology. This included a scope 3 screening exercise to identify applicable and material categories and activities across Vector's supply chain. A total of

14 categories were determined as being applicable to Vector (all but category 10 - processing of sold products), of which two were defined as material. The threshold at which a scope 3 category is considered as material is set to 1% of total scope 3 emissions.

During the screening process, emissions were calculated for 11 scope 3 categories, with emissions from the remaining three categories considered to be included in other categories of the inventory (categories 2 and 8) or to be zero (category 12). Prior to FY2023, we chose to externally report only on emissions categories that were material (categories 1 and 11) or where data was deemed robust (categories 3, 4, 6 and 15). With additional work undertaken to more accurately determine emissions from other sources, from FY2023 we also reported on emissions under categories 5 and 7 as well as emissions from all purchased products and services under category 1.

Included in other categories

Category 2 - capital goods: Included in category 1 as it was not possible to separate new infrastructure construction and other assets from maintenance of existing infrastructure.

Category 8 - upstream leased assets: Included in scope 1 and 2, as leased assets are expected to be under Vector's operational control.

Excluded scope 3 categories

Category 9 - downstream transportation and distribution: immaterial.

Category 12 - end-of-life treatment of sold products: expected to be zero.

Category 13 - downstream leased assets: immaterial.

Category 14 - franchises: immaterial.

GHG emissions source inclusions

Table 4 provides an overview of all emissions sources highlighted in Vector's GHG inventory, including their data sources, calculation methods and an assessment of data quality and uncertainty.

For completeness, Vector is reporting on well-to-tank ("WTT") emissions for fuel used by field service providers ("FSPs") under categories 1 and 4 as well as on emissions from gas distributed via Vector's gas network under category 11 (other distributed natural gas).

As some gas sold or shipped by Natural Gas Trading is transported via Vector's gas distribution network, these volumes are subtracted from the overall 'other distributed natural gas' amount to avoid double counting.

Exclusions from GHG inventory

Table 3 shows scope 3 emissions sources that were excluded from reporting (in addition to the excluded categories listed previously) and the reasoning behind this.

Other emissions - biogenic CO2

Vector uses a 5% biodiesel blend in generators used by Vector Fibre and the electricity distribution network. In FY2024, Vector's combustion of biodiesel blend created 131 tonnes of biogenic emissions. This is a reduction of 19% from FY2020.

Table 3: Excluded emissions sources from reporting
EXCLUDED EMISSIONS ACTIVITY	REASONS FOR EXCLUSION
Emissions from FSP fuel use where fuel amount is <1% of overall FSP fuel use (part of category 1 -	Emissions immaterial; data
fuel used by FSPs)	difficult to obtain

Third-party transportation for upstream-purchased materials and products covered under	Emissions immaterial; low
category 1, and distribution services paid by Vector, other than where data on fuel use was	data quality using spend- and
available (part of category 4 - upstream transportation)	distance-based methods

Use of sold HVAC units (part of category 11 - use of sold products)	Likely immaterial; limited data
	availability

WTT emissions from natural gas used at the Ongas BottleSwap depot (part of category 3 - fuel-	Emissions immaterial
and energy-related activities)

Emissions from cash expense claims for air travel, hotels, employee travel in public transport and	Emissions immaterial; data
rental cars (part of category 6 - business travel)	difficult to obtain

Summary of

Organisational

Operational

Data collection

GHG emissions

References

emissions

boundaries

and quantification

calculation

reductions

and Appendix

and results

2. Operational boundaries (continued)

Figure 2: Examples of emissions sources across Vector's value chain

Scope 3

Scope 2

Scope 1

Scope 3

INDIRECT

DIRECT

INDIRECT

Upstream

Vector

Downstream

The extraction,	Due to the laws	Some of our assets	Distributed and sold
production and	of physics, some	can leak global	gas is burned by
manufacture of	electricity that	warming gases	consumers for their
materials and	Vector distributes	through damage	everyday activities.
services Vector	is lost along the	or age.
purchases from	way. Generation
around the globe	emissions
create emissions	associated with
at source and	this electricity loss
en route to us.	is included in
	Vector's footprint.
	Scope 2 emissions
	also include
	electricity
	consumption at
	Vector's ofﬁces,
	and substations.

Field service crews	We use fuels in
distribute and	vehicles to deliver
install these	goods, and in
materials on	generators to keep
behalf of Vector.	the power going
This requires	during outages.
transportation.

8 Vector GHG Emissions Inventory Report FY2024

Summary of

Organisational

Operational

Data collection

GHG emissions

References

emissions

boundaries

and quantification

calculation

reductions

and Appendix

and results

Table 4: Emissions calculation methods, data quality and sources
REPORTING	EMISSIONS	CALCULATION	DATA	GWP	DATA QUALITY
CATEGORY	ACTIVITY	METHOD	SOURCE	SOURCE	AND UNCERTAINTY

SCOPE 1

Natural gas	Fugitive	See section 3	FSP records;
distribution	natural		company
fugitive	gas across		records on asset
emissions	Vector's		database
	distribution
	network

SF6 fugitive	SF6 leaks in	Top-up method	Gas recovery
emissions	switchgear		records; FSP SF6
			cylinder records'
			log sheets;
			nameplate
			capacity
			amounts

Other fugitive	LPG losses	Top-up method	Service records;
emissions	from venting,	for LPG, CO2	invoices;
	HVAC leaks	and HVAC;	inventory lists
	(offices,	screening
	substations,	method
	vehicle fleet),	for HVAC;
	and CO2	estimates for
		LPG and CO2
Biodiesel	Biodiesel	Fuel-based	Provider records
stationary	used in	method
combustion	generators

Diesel	Diesel used in	Fuel-based	Invoices
stationary	forklifts and	method
combustion	generators

LPG stationary	LPG used	Fuel-based	Invoices
combustion	in forklifts,	method
	flaring and
	vaporisers

Natural gas	Water and	Fuel-based	Invoices
stationary	space heating	method
combustion

Vehicle fleet	Fuel used in	Fuel-based	Fuel records by
	vehicle fleet	method	lease providers

MfE (2024) -

IPCC AR5

Quality-assured data on all leaks by asset and emissions category provided by FSPs. Multiple estimates and assumptions made, as laid out in section 3, lead to medium uncertainty that Vector is continuing to improve. Vector's methodology has been reviewed by GNS Science, and assessed as OGMP 2.0 Level 3 or slightly above.

Records on gas top-ups and recoveries provided by FSPs. Multiple estimations, adjusted over time as data becomes available. Medium level of uncertainty that Vector is working on improving where possible.

Most data on HVAC top-ups available, and when not available annual averages for each inventory item used as specified by MfE. LPG and CO2 use estimated - de minimis. High uncertainty, but emissions <1% of scope 1 and are considered adequate.

Records on litres of diesel used in generators supplied by lease provider monthly. Low uncertainty.

Records on diesel used in forklifts provided by supplier. Remaining diesel use estimated - de minimis. Overall low uncertainty.

Invoices for forklift LPG use. LPG amounts in vaporisers are estimates based on annual actual consumption, while re-valve flaring amounts are estimates based on standard capacity of the sites. Medium uncertainty that is considered adequate as <1% of scope 1.

Usage data sourced from invoices. Low uncertainty.

Records on diesel and petrol use sourced from fuel card data. Low uncertainty.

SCOPE 2

Electricity	Electricity	Location-based	Invoices by	MfE (2024) -	Consumption data in kWh provided by
consumption	use at offices,	method and	retailers; NZECS	IPCC AR5	retailers. Records on NZECS to calculate
from grid	substations,	market-based	website (market-	(location-	market-based approach provided on
(market and	and public	method,	based approach)	based)	NZECS website. Moderate uncertainty
location based)	EV chargers	respectively		NZECS -	from emission factors.

				IPCC AR5
				(market-
				based)

Electricity	Electricity	Location-based	Transpower	MfE (2024) -	Metered data at grid exit point ("GXP")
distribution	losses along	method	and distributed	IPCC AR5	provided by Transpower and distributed
losses	the network		generators		generators. Data at installation control
			(ingoing);		points ("ICP") level provided by retailers.
			retailers		Some estimations at year-end. Low
			(outgoing)		uncertainty.

Summary of

Organisational

Operational

Data collection

GHG emissions

References

emissions

boundaries

and quantification

calculation

reductions

and Appendix

and results

2. Operational boundaries (continued)

Table 4 (continued): Emissions calculation methods, data quality and sources

							EMISSIONS
					CALCULATED USING
REPORTING	EMISSIONS	CALCULATION	DATA	GWP	DATA QUALITY	DATA PROVIDED
BY VALUE CHAIN
CATEGORY	ACTIVITY	METHOD	SOURCE	SOURCE	AND UNCERTAINTY
	PARTNERS1
SCOPE 3

C1 - upstream-	Natural gas	Hybrid method	Invoices	DEFRA	Records of gas purchases		76%
purchased	purchased	and average-		(2023) -	sourced from supplier
natural gas		data method		IPCC AR5	invoices. Moderate uncertainty
				NZG 2019	on emission factor for overall
				purchases as it uses national
				- IPCC AR5
				average rather than site-
				(Kapuni
				specific data.
				specific)

C1 - upstream-	LPG	Hybrid method	Cost of sales report	Records of LPG purchases		77%

purchased LPG	purchased	and average-			based on supplier invoices.
		data method			Moderate uncertainty on
					emission factor for overall
					purchases as it uses national
					average rather than site-
					specific data.

C1 - fuel used	Fuel used	Hybrid method	Fuel data provided	MfE (2024) -	Petrol and diesel use on			100%
by FSPs	by FSPs on		by FSPs	IPCC AR5	behalf of Vector shared by
	behalf of			DEFRA	each FSP for relevant business
	Vector, incl.			areas, in litres. Some data on
			(2023) -
	WTT			regular and premium petrol
			IPCC AR5
				combined. Low uncertainty.


C1 - upstream-	Key products	Supplier-	Procurement or FSP	EPDs - IPCC	Records on quantities sourced	6%
purchased	purchased	specific and	data on quantities	AR5	from internal systems. Where
materials and	across Vector	average-data	(by weight or		supplier-specific data was
products	business	method	length) of products		used, uncertainty is lowest.
	areas		purchased		For average-data method,
					some estimations were made
					and secondary data is used;
					therefore, uncertainty is
					relatively high. More details in
					section 3.

C1 - upstream-	All remaining	Spend-based	Procurement spend	Eora MRIO	Spend by supplier sourced		0%
purchased	products	method	data	2017	from internal procurement
other goods	and services				system, emission factor was
and services	purchased				assigned based on supplier's
					main business activity. High
					uncertainty. More details in
					section 3.

C3 - fuel-	T&D,	Average-data	Same invoice	MfE (2024) -	All data based on fuel data		0%
and energy-	upstream,	method	data as fuel and	IPCC AR5	or location-based electricity
related	and WTT		electricity use in	(T&D losses)	consumption data provided
activities	emissions		scope 1 and 2	DEFRA	for scope 1 and 2. T&D
	from the			emissions not calculated for
			(2023) -
	group's			electricity consumption in
			IPCC AR5
	electricity and			Auckland, as this is covered
			(WTT
	fuel use			under scope 2 losses.
			fuels and
				Moderate uncertainty from
				electricity)
				emission factors.

Proportion of emissions calculated using calculation methods based on data obtained from suppliers or other value chain partners. Remaining emissions are calculated using internal or average data.

10 Vector GHG Emissions Inventory Report FY2024