APA Group (APA) 2023年年度報告「ASX」.pdf

《APA Group (APA) 2023年年度報告「ASX」.pdf》由會員分享，可在線閱讀，更多相關《APA Group (APA) 2023年年度報告「ASX」.pdf（206頁珍藏版）》請在三個皮匠報告上搜索。

1、tomorrowpoweringANNUAL REPORT 2023ACKNOWLEDGEMENT OF COUNTRYAt APA,we acknowledge the Traditional Owners and Custodians of the lands on which we live and work throughout Australia.We acknowledge their connections to land,sea andcommunity.We pay our respects to their Elders past and present andcommit

2、 to ensuring APA operates in a fair and ethical manner that respects First Nations peoples rights and interests.About this report:The 2023 Annual Report is our primary report to securityholders and provides a consolidated summary of APA Groups performance for the financial year ended 30 June 2023.It

3、 should be read in conjunction with the reports that comprise the 2023 Annual Reporting Suite including:Annual Report,Sustainability Data Book,Results Presentation available from https:/.au/investors,as well as the Climate Report and Climate Data Book that will be available at this website in Septem

4、ber 2023.In this report,unless otherwise stated,references to APA Group,we,us and our refer to APA comprising the ASX-listed entity and the APA Infrastructure Trust and the APA Investment Trust.Any reference in this report to a year relates to the financial year ended 30 June 2023.All dollar figures

5、 are expressed in Australian dollars unless otherwise stated.The Board acknowledges its responsibility for the 2023 Annual Report and has been directly involved in its development and direction.The Board reviewed,considered and provided feedback during the production process and approved the Annual

6、Report at its August 2023 Board meeting.This report outlines APA Groups activities governed by our purpose,vision and values and corporate strategy delivering the financial,non-financial and sustainability performance required to capture opportunities whilst managing risks.Towards integrated reporti

7、ng:APA Group is committed to providing securityholders,other external stakeholders and our people with timely,consistent and transparent corporate reporting.APA is moving towards integrated reporting over a multi-year period in order to create trusting and transparent relationships with all stakehol

8、ders and to provide a more complete picture of how we create and preserve long-termvalue.The integrated reporting concept refers to a principles-based,multi-capital framework in which companies can communicate clearly and concisely about how their strategies,governance,performance,prospects and sust

9、ainability-related actions create value in the context of their external environment.The International Finance Reporting Standards Foundation formed the International Sustainability Standards Board(ISSB)in November 2021.The ISSBs purpose is to deliver a comprehensive global baseline of sustainabilit

10、y-related disclosure standards that provide investors and other capital market participants with information about companies sustainability-related risks and help them make informed investment.These standards,when issued,are expected to result in a more definitive approach for companies to follow wi

11、th regard to integrated reporting.Our FY23 Annual Report has been developed with this in mind.About this reportIFCDisclaimer1Overview and highlights2Chairmans and Managing Directors Report2FY23 summary4About APA8External environment11Our strategy14Risks and opportunities18Sustainability at APA24Sust

12、ainability highlights26Climate change transition and risk28Community and social performance30First Nations Peoples34Environment and heritage36People and culture38Safety,health and wellbeing42Customers and suppliers46Performance50Outlook59Governance60APA Group Board62APA Executive Leadership64APA Inf

13、rastructure Trust Financial Report68Directors Report68Remuneration Report74Consolidated Financial Statements92Directors Declaration160Auditor Independence/Audit Report161APA Investment Trust Financial Report168Directors Report168Consolidated Financial Statements174Directors Declaration189Auditor Ind

14、ependence/Audit Report190Additional information194Five year financial summary195Investor information196Glossary197About this report:APA Group comprises two registered investment schemes,APA Infrastructure Trust(ARSN 091 678 778)and APA Investment Trust(ARSN 115 585 441),the securities of which are s

15、tapled together.APA Group Limited(ACN 091 344 704)is the responsible entity of APA Infrastructure Trust and APA Investment Trust.Disclaimer:Please note that APA Group Limited is not licensed to provide financial product or investment advice in relation to securities in APA Group.This publication doe

16、s not constitute financial product advice and has been prepared without taking into account your objectives,financial situation or particular needs.Before relying on any statements contained in this publication,including forecasts and projections,you should consider the appropriateness of the inform

17、ation,having regard to your own objectives,financial situations and needs and seek professional advice if necessary.Past performance information should not be relied upon as(and is not)an indication of future performance.Forward-looking information:This publication contains forward-looking informati

18、on,including about APA Group,its financial results and other matters which are subject to risk factors.Forward-looking statements may include indications of,and guidance on,future earnings and financial position and performance,statements regarding APA Groups future strategies and capital expenditur

19、e,statements regarding estimates of future demand and consumption and statements regarding APAs sustainability and climate transition plans and strategies,the impact of climate change and other sustainability issues for APA,energy transition scenarios,actions of third parties,and external enablers s

20、uch as technology development and commercialisation,policy support,market support and energy and offsets availability.Forward-looking statements can generally be identified by the use of forward-looking words such as,expect,anticipate,likely,intend,could,may,predict,plan,propose,will,believe,forecas

21、t,estimate,target,outlook,guidance,goal,ambition and other similar expressions and include,but are not limited to,forecast EBIT and EBITDA,free cash flow,operating cash flow,distribution guidance and estimated asset life.At the date of this report,APA Group believes there are reasonable grounds for

22、these forward-looking statements and due care and attention have been used in preparing this report.Forward-looking statements,opinions and estimates are not guarantees or predictions of future performance and involve known and unknown risks and uncertainties and other factors.Many of these are beyo

23、nd the control of APA Group,and may involve significant elements of subjective judgement and assumptions about future events,which may or may not be correct.There can be no assurance that actual outcomes will not materially differ from these forward-looking statements,opinions and estimates.A number

24、 of important factors could cause actual results or performance to differ materially from such forward-looking statements,opinions and estimates.These factors include,but are not limited to:general economic conditions;exchange rates;technological changes;the geopolitical environment;the extent,natur

25、e and location of physical impacts of climate change;changes associated with the energy market transition;and government and regulatory intervention,including to limit the impacts of climate change or manage the impact of Australias transitioning energy system.A number of these factors are described

26、 under the heading Material risks beginning on page 20 of this report.Readers should review and have regard to these risks when considering the information in this report,and are cautioned not to place undue reliance on forward-looking statements,particularly in light of the long-time horizon which

27、this report discusses.There are also limitations with respect to climate scenario analysis and it is difficult to predict which,if any,of the scenarios might eventuate.Scenario analysis is not an indication of probable outcomes and relies on assumptions that may or may not prove to be correct or eve

28、ntuate.Scenarios may also be impacted by additional factors to the assumptions disclosed.Investors should form their own views as to these matters and any assumptions on which any forward-looking statements,estimates or opinions are based.Except as required by applicable laws or regulations,APA does

29、 not undertake to publicly update or revise any forward-looking statements to reflect any change in expectations,contingencies or assumptions,whether as a result of new information or future events.To the maximum extent permitted by law,APA and its officers do not accept any liability for any loss a

30、rising from the use of the information contained in this report.Non-IFRS financial measures:APA Group results are reported under International Financial Reporting Standards(IFRS).However,investors should be aware that this report includes certain financial measures that are non-IFRS financial measur

31、es for the purposes of providing a more comprehensive understanding of the performance of the APA Group.These non-IFRS financial measures include FCF,EBIT,EBITDA and other normalised measures.Such non-IFRS information is unaudited,however the numbers have been extracted from the audited financial st

32、atements.OPERATING&FINANCIAL REVIEWSUSTAINABILITYGOVERNANCEAPA INFRASTRUCTURE TRUST FINANCIAL REPORTAPA INVESTMENT TRUST FINANCIAL REPORTADDITIONAL INFORMATION1Message from the Chairman and Managing DirectorFY23 was another solid year of delivery for APA.Over the past 12 months we delivered earnings

33、 and distribution growth,invested in infrastructure to support Australias energy security and refreshed our strategic ambition to be the partner of choice in delivering infrastructure solutions for the energy transition.With execution against this strategy building momentum,we have revitalised our e

34、xecutive team to position us to capture future growth opportunities.We also made good progress on our three strategic priorities ensuring our people are engaged,motivated and safe;delivering operational excellence;and creating value for investors and communities.Financial performanceOur financial pe

35、rformance in FY23 was underpinned by the reliability of our operations and the strength of our infrastructure and capabilities.Total statutory revenue(excluding pass-through revenue)was$2,353million,up 5.1%,driven by a strong Energy Infrastructure performance and initial contributions from Basslink.

36、Earnings before interest,tax,depreciation and amortisation(Reported EBITDA)of$1,686 million represented a 3.4%increase on the previous year and on an underlying EBITDA basis,earnings were up 2%to$1,725million.Statutory profit after tax(including significant items)was up 10.4%to$287 million.Our perfo

37、rmance enabled the Board to declare a final distribution of 29.0 cents,taking the FY23 distribution to 55.0 cents per security,in line with guidance.This represents an increase of 3.8%on FY22 and has been delivered in parallel with our ongoing significant investment to build capability and capitalis

38、e on emerging growth opportunities.Our peopleThe skills and dedication of our people are critical to our ongoing success,and their safety and engagement remain a priority focus area.We reported zero fatalities and zero seriousinjuries in FY23 and achieved a 42%reduction in our potential serious harm

39、 incident frequency rate compared to FY22.This was the result of our focus on incident prevention and drive towards continuous improvement in safety performance.Our Total Recordable Injury Frequency Rate(TRIFR)increased slightly this year following a 42%decrease in FY22.Over the last 12 months we al

40、so progressed our strategy to improve employee inclusion and diversity.Highlights included increasing female representation across our total workforce from 29.5%to 31.8%and in senior leadership roles from 30.4%to 31.4%.These trends are a direct result of the specific action weve taken to attract wom

41、en to APA and support their career progression.We also completed a comprehensive review of like-for-like roles and where any gender pay equity gaps were identified,we ensured they were immediately addressed.Delivering operational excellence Delivering operational excellence goes to the heart of our

42、social licence and underpins our ongoing financial results.In FY23 we opened our new national state-of-the-art Integrated Operations Centre a facility that will allow us to support all our customers and markets from one central location.In process safety we recorded three Tier 1 incidents,including

43、a rupture on our Young-Lithgow pipeline during a flooding event,as well as two power outages highlighting the need to ensure we are always vigilant in the operation and maintenance of our assets.Creating valueCreating value is central to our success and underpins our ability to deliver for customers

44、,investors,communities and our people.In FY23 we brought clarity to our growth strategy.Our focus is to be the partner of choice in our selected asset classes of contracted renewables and firming,electricity transmission,gas transportation and future energy.We already have momentum with the executio

45、n of this strategy.In FY23 we invested$845 million in growth opportunities and completed several major projects.This included the delivery of the largest remote-grid solar farm in Australia,the Dugald River Solar Farm,the acquisition of the Basslink interconnector which further expands our electrici

46、ty transmission business,delivery of the first stage of the East Coast Gas Grid expansion and completion of the Northern Goldfields Interconnect(NGI)pipeline,providing greater energy security and supporting growth and transition in the Western Australia resources sector.2APA GROUP ANNUAL REPORT 2023

47、Positioning for the energy transition APA has a critical role to play in the energy transition and we look forward to progressing the opportunities in front of us.The strength of our infrastructure and capabilities will be central to this.In FY23 we took important steps to further build the capabili

48、ty we need to deliver our strategy and capitalise on these opportunities.Weve done this by investing in our people and bringing new skills and experiences into the organisation,including in our executive leadership team.We appointed Adam Watson as Chief Executive Officer and Managing Director in Dec

49、ember.Over the past year we also welcomed Liz McNamara as Group Executive,Sustainability and Corporate Affairs,and Vin Vassallo as our Group Executive,Electricity Transmission.We also announced the appointment of Petrea Bradford as Group Executive,Operations,and Garrick Rollason as Chief Financial O

50、fficer,who will both join APA in the first half of FY24.Similarly,we have recently announced the appointment of Nino Ficca as a Non-Executive Director,with effect from 1 September 2023,who will bring significant electricity transmission and energy market experience to APA.These appointments compleme

51、nt the existing diverse skills and experiences of our executive leadership team and Board and will ensure we are well positioned to deliver on the next phase of growth.Building a sustainable business Incorporating sustainability into everything we do is central tohow we operate.Further progress agai

52、nst our FY21-24 Sustainability Roadmap was delivered throughout the year.This included the release of our first Climate Transition Plan(CTP),detailing our commitment and pathway to net zero and the development of our inaugural Reconciliation Action Plan that we will launch inFY24.This year we have a

53、lso brought our non-financial or sustainability reporting into our Annual Report as a first step towards integrated reporting and look forward to progressing this further for securityholders in FY24.Our FY23 Climate Report will also be released ahead of the FY23 Annual General Meeting,satisfying our

54、 commitment to report annually on the progress against our CTP.Delivering for securityholdersOver the past three years we have invested in ongoing safe and reliable operations,funded the acquisition of Basslink as well as$1.6 billion in organic growth opportunities from existing cash flow and debt,a

55、ll while maintaining an investment grade credit rating.In FY23 we again delivered growth in EBITDA and distributions.Reflecting our ongoing investment in the business and the significant opportunities presented by the energy transition,in FY24 we will ensure our distribution growth is appropriately

56、balanced to accommodate ongoing investment in the business and drive long-term value accretive growth.Looking aheadOur progress in FY23 provides a strong foundation for us to build on.We have clarity around our customer focused strategy andthe role APA can play in the energy transition.The growth op

57、portunity set for our organisation is large.We are focused on continuing to invest in our business,executing our growth strategy and ensuring we can continue to deliver sustainable earnings growth for securityholders over the long-term.On behalf of the Board and leadership team,we would like to than

58、k our employees for their ongoing efforts and dedication.We would also like to thank our customers,communities and other stakeholders for their continuing engagement.Finally,our sincere thanks to our securityholders for their support.We look forward to updating you over the year ahead.Michael Fraser

59、 Chairman Adam Watson Chief Executive Officer andManaging DirectorOPERATING&FINANCIAL REVIEWSUSTAINABILITYGOVERNANCEAPA INFRASTRUCTURE TRUST FINANCIAL REPORTAPA INVESTMENT TRUST FINANCIAL REPORTADDITIONAL INFORMATION3FY23 summaryFinancial highlights1 Segment Revenue excluding pass-through.Pass-throu

60、gh revenue is offset by pass-through expenses within EBITDA.Any management fee earned for the provision of these services is recognised within total revenue.Reported increase is against FY22.2 Underlying earnings before interest,tax,depreciation,and amortisation(EBITDA)excludes recurring items arisi

61、ng from other activities,transactions that are not directly attributable to the performance of APA Groups business operations and significant items.Reported increase is against FY22.3 Free Cash Flow is Operating Cash Flow adjusted for strategically significant transformation projects,less stay-in-bu

62、siness(SIB)capex.SIB capex includes operational assets lifecycle replacement costs and technology lifecycle costs.Reported decrease is against FY22.4 DPS=Distribution per security.5 Distribution guidance is subject to asset performance,macroeconomic factors,regulatory changes as well as timing of di

63、stributions from non-100%owned assets,with distributions to be determined at the Boards discretion.It does not take into account the impact of any potential acquisitions or divestments by APA and any associated funding arrangements,other than the acquisition of Alinta Energy Pilbara and the associat

64、ed Placement and Security Purchase Plan announced today.FREE CASH FLOW(FCF)-1.0%to$1,070mImpacted by higher stay-in-business capexFY23 DPS+3.8%to55.0cpsIn line with guidance;representing a payout ratio of 60.6%SEGMENT REVENUE1+5.1%to$2,353mDriven by a solid Energy Infrastructure performance and infl

65、ationUNDERLYING EBITDA+2.0%to$1,725mUp 3.5%excluding Orbost;includes investment in capability to support growth ambitions and business resilienceBALANCE SHEET 10.6%FFO/Net DebtFunded$1.2bn of investment from cash flow and debt FY24 DPS GUIDANCE5 56.0 cps Up 1.8%on FY23,reflecting desire to accommoda

66、te ongoing investment4APA GROUP ANNUAL REPORT 2023Partnering with our customers to achieve their decarbonisation objectives$845m invested in critical infrastructure in FY23Deliveredkey projects to underpin reliable energy supply for the community Operational excellence enhancementsEstablished a new

67、Integrated Operations Centre,implemented a new Field Mobility system,GRID solution program underwayInvested in capability Enhanced capability across business development,technology and business resilience,regulatory,risk and compliance,sustainability and corporate affairsSustainability progress achi

68、eved across priority areas in FY23Set a methane target,developed APAs inaugural RAP1,developed and commenced the roll-out of our Being Heritage Aware training moduleRefreshed our strategy Customer focused across four priority asset classes Non-financial highlightsDELIVERED SOLUTIONS FOR OUR CUSTOMER

69、S,INVESTED IN CAPABILITY AND PROGRESSED OUR SUSTAINABILITY AGENDA1 Reconciliation Action Plan(RAP).OPERATING&FINANCIAL REVIEWSUSTAINABILITYGOVERNANCEAPA INFRASTRUCTURE TRUST FINANCIAL REPORTAPA INVESTMENT TRUST FINANCIAL REPORTADDITIONAL INFORMATION5Financial results30 June 2023$m30 June 2022$mChang

70、es%1Revenue 2,9132,732 6.6%Total revenue excluding pass-through22,4012,2367.4%Segment revenue excluding pass-through32,3532,2385.1%Underlying EBITDA41,7251,692 2.0%Total reported EBITDA51,6861,630 3.4%Statutory profit after tax including significant items287260 10.4%Profit after tax excluding signif

71、icant items287 240 19.6%Free cash flow61,0701,081(1.0%)Financial positionTotal assets15,86615,8360.2%Total drawn debt711,24011,1460.8%Total equity1,9102,629(27.3%)Financial ratiosFree cash flow per security(cents)90.791.6(1.0%)Earnings per security(cents)including significant items24.322.1 10.0%Earn

72、ings per security(cents)excluding significant items24.320.4 19.1%Distribution per security(cents)55.053.0 3.8%Distribution payout ratio(%)860.657.9 4.7%FFO/Net Debt(%)910.6 11.1(7.8%)FFO/Interest(times)3.3x 3.6x(8.3%)1 Positive/negative changes are shown relative to impact on profit or other relevan

73、t performance metric.2 Statutory revenue excluding pass-through.Pass-through revenue is offset by pass-through expenses within EBITDA.Any management fee earned for the provision of these services is recognised within total revenue.3 Segment revenue excludes:pass-through revenue;Wallumbilla Gas Pipel

74、ine hedge accounting unwind;income on Basslink debt investment;Basslink AEMC market compensation and other interest income.4 Underlying earnings before interest,tax,depreciation,and amortisation(EBITDA)excludes recurring items arising from other activities,transactions that are not directly attribut

75、able to the performance of APA Groups business operations and significant items.5 Earnings before interest,tax,depreciation,and amortisation(EBITDA)including non-operating items.6 Free cash flow is Operating Cash Flow adjusted for strategically significant transformation projects,less stay-in-busine

76、ss(SIB)capex.SIB capex includes operational assets lifecycle replacement costs and technology lifecycle costs.7 APAs ability to repay debt at relevant due dates of the drawn facilities.This amount represents the actual debt outstanding in Australian Dollars at period end.The methodology of calculati

77、ng debt has changed,for details refer to the Financing Activities section on page 57 of this report.8 Distribution payout ratio=total distribution applicable to the financial year as a percentage of free cash flow.9 The methodology of calculating debt has changed,for details please refer to the Fina

78、ncing Activities section on page 57 of this report.FY23 Summary (continued)6APA GROUP ANNUAL REPORT 2023A SOLID FY23 FINANCIAL RESULT AS WE CONTINUE TO INVEST TO SUPPORT AUSTRALIAS ENERGY TRANSITIONOPERATING&FINANCIAL REVIEWSUSTAINABILITYGOVERNANCEAPA INFRASTRUCTURE TRUST FINANCIAL REPORTAPA INVESTM

79、ENT TRUST FINANCIAL REPORTADDITIONAL INFORMATION7About APA PURPOSE WHY WE EXISTTo strengthen communities through responsible energy.STRATEGY WHAT WE DOTo be the partner of choice in delivering infrastructure solutions for the energy transition.8APA GROUP ANNUAL REPORT 2023APA Group is a leading Aust

80、ralian energy infrastructure business,owning,operating and managing a diverse$22 billion portfolio.We are proud of the role we play in delivering energy solutions to millions of customers in every State and Territory.Our strategic ambition is to be the partner of choice in delivering infrastructure

81、solutions for Australias energytransition.Our approach is customer driven as we look to support the decarbonisation ambitions of our priority customer groups including governments,resource companies,energy supply and wholesale customers,and large commercial and industrial customers.Through this appr

82、oach to market we see immense opportunities across our four priority asset classes of contracted renewables and firming,electricity transmission,gas transportation and future energy.Our behaviours Our behaviours set the benchmark for how our people interact with customers,communities and each other.

83、They support our strategy and the high-performance culture that we strive for.The behaviours guide how we conduct our business and help to shape our inclusive culture:We are customer focused,innovative and collaborative,with empowered and energised teams.PURPOSE WHY WE EXISTTo strengthen communities

84、 through responsible energy.STRATEGY WHAT WE DOTo be the partner of choice in delivering infrastructure solutions for the energy transition.COURAGEOUSWe are honest and transparent;we learn from our mistakes and we challenge the status quo.ACCOUNTABLEWe spend time onwhat matters,we do what we say and

85、 deliver world classsolutions.NIMBLEWe are curious,adaptive and futurefocused.COLLABORATIVEWe are inclusive,work together and respect and listen to our stakeholders.IMPACTFULWe create positive legacies and work safely,for our customers,communities,our people and theenvironment.OPERATING&FINANCIAL RE

86、VIEWSUSTAINABILITYGOVERNANCEAPA INFRASTRUCTURE TRUST FINANCIAL REPORTAPA INVESTMENT TRUST FINANCIAL REPORTADDITIONAL INFORMATION9APA PORTFOLIO OF ASSETS AND INVESTMENTSAbout APA (continued)Pipeline3 Amadeus Gas Pipeline(inc laterals)13 Berwyndale Wallumbilla Pipeline1 Bonaparte Gas Pipeline9 Carpent

87、aria Gas Pipeline(inc laterals)22 Central Ranges Pipelines23 Central West Pipeline37 Eastern Goldfields Pipeline47 Goldfields Gas Pipeline38 Kalgoorlie Kambalda Pipeline40 Mid West Pipeline20 Moomba Sydney Pipeline(inc laterals)21 Moomba to Sydney Ethane Pipeline28 Mortlake Gas Pipeline39 Northern G

88、oldfields Interconnect45 Parmelia Gas Pipeline48 Pilbara Pipeline System12 Reedy Creek Wallumbilla Pipeline15 Roma Brisbane Pipeline(inc Peat lateral)30 SEA Gas Pipeline29 SESA Pipeline10 South West Queensland Pipeline49 Telfer/Nifty Gas Pipelines and lateral25 Victorian Transmission System14 Wallum

89、billa Gladstone Pipeline(inc laterals)2 Wickham Point Pipeline36 Yamarna Gas Pipeline51 Kurri Kurri Lateral Pipeline(KKLP)52 Western Outer Ring Main(WORM)Gas Processing and Storage27 Dandenong(680TJ/12000t)18 Kogan North(12TJ/d)46 Mondarra(18PJ)Gas Distribution16 Allgas Gas Network50 Australian Gas

90、Networks24 Tamworth Gas NetworkElectricity Transmission19 Directlink31 Murraylink53 Basslink*Generation17 Daandine(30 MW)6 Diamantina(242 MW)33 Gruyere(47 MW)7 Leichhardt(60 MW)5 Thomson(22 MW)4 X41(41 MW)35 Gruyere Battery Station(4.4 MW/MWh)Solar Farm43 Badgingarra(19 MW)11 Darling Downs(108 MW)41

91、 Emu Downs(20 MW)34 Gruyere Solar Farm(13.2 MW)8 Dugald River Solar Farm(88 MW)Wind Farm44 Badgingarra(130 MW)42 Emu Downs(80 MW)32 North Brown Hill(132 MW)KeyAPA Group assetAPA Group distribution network assetAPA Group investmentInvestment distribution networkAPA Group managed asset(not owned)Manag

92、ed distribution networkOther natural gas pipelinesUnder constructionWind farmSolar farmLNG planBattery storageGas storage facilityGas processing plantGas power stationIntegrated Operations Centre Dubbo53Gruyere454648412567891013121114151617232422252829272019213231301833473634353738414243444039349505

93、1Kurri KurriWallumbillaRomaMount IsaKarrathaBallaratBendigoTamworthIOCLithgowTropicanaYarmanaAlice SpringsKatherineKalgoorlieGladstoneMoombaAlburySydneyCanberraBrisbaneMelbourneHobartDarwinPerthAdelaideMelbourneMelbourne Airport52Ballera*Acquired October 2022.10APA GROUP ANNUAL REPORT 2023External e

94、nvironment APA is committed to working with our customers,communities and governments to deliver an energy transition that prioritises reliable,affordable and low emissions energy for all Australians.Major trends Both industry and governments continue to confront the challenge of balancing the compe

95、ting demands of the energy sector to deliver:reliable energy affordable energy and low emissions energyAustralia,like most countries,strives to balance these three interconnected objectives as our energy sector transitions towards net zero.As low emission variable renewable electricity(VRE)steps in

96、to replace coal-fired generation,industry and governments are searching for solutions to ensure the transition remains affordable and reliable.Transitioning to these cleaner energy sources often requires significant upfront capital investments in new infrastructure,new technologies,and research and

97、development with long lead times to commercialisation.1 AEMO Market Suspension FAQs June 2022.Both Federal and State governments throughout Australia are adjusting policy settings in energy markets in an attempt to both encourage lower carbon energy sources as well as ensure energy remains affordabl

98、e and reliable.Interventions that commenced in FY22 continued in FY23 as it was deemed necessary by government bodies to take action in the electricity,coal and gas markets across eastern Australia.This was driven by supply constraints leading to highenergy prices and included:The National Electrici

99、ty Market(NEM)was suspended in June 2022 by the Australian Energy Market Operator(AEMO).Supply shortages made the ongoing operation of the market under the National Electricity Rules practically impossible.1 The Federal Government introduced legislation in December 2022 which applies a temporary pri

100、ce cap of$12/GJ on the supply of regulated gas for 12 months.The government also requested a domestic coal price cap of$125/T to be implemented in New South Wales and Queensland.In Western Australia,June 2022 saw the announcement by the WA Government that all state-owned coal generators are to close

101、 by 2030.Following this,the WA Government announced a review of the States domestic gas reservation policy.This was part of the Governments efforts to determine if the policy remains fit for purpose in supplying the domestic market or if amendments are needed to allow for more gas to be delivered to

102、 domestic users.OPERATING&FINANCIAL REVIEWSUSTAINABILITYGOVERNANCEAPA INFRASTRUCTURE TRUST FINANCIAL REPORTAPA INVESTMENT TRUST FINANCIAL REPORTADDITIONAL INFORMATION11Economic regulatory mattersGas pipelines in Australia are regulated under the National Gas Law(NGL)and National Gas Rules(NGR)by the

103、 Australian Energy Regulator(AER)or the Economic Regulation Authority of Western Australia(ERA).On 2 March 2023,amendments to the NGL and NGR were proclaimed and came into effect across all States except Western Australia.Prior to these amendments the NGL and NGR established two regulatory pipeline

104、frameworks:1.Scheme pipelines(NGR Parts 8-12)subject to either:Full regulation with regulator approved tariffs and terms and conditions;or Light regulation where pipeline owners publish services and prices and comply with information provision requirements.2.Non-Scheme pipelines(NGR Part 23)where ta

105、riffs and terms are negotiated between parties.The 2 March 2023 amendments to the NGL and NGR discontinue light regulation and transition to a:heavier form of regulation,based on the current full regulation for scheme pipelines;or lighter form of regulation,based on the previous Part 23(now Part 10)

106、regime for non-scheme pipelines.In practice,pipelines currently subject to full regulation are not expected to experience much change.APAs non-scheme pipelines and pipelines previously subject to light regulation will transition to the new lighter form ofregulation.Following on from this legislative

107、 change,the regulator will now have the power to determine the form of regulation to apply to a particular pipeline.In effect,this means that the AER can decide to apply full regulation to non-scheme pipelines.The AER would then have the role of approving capital and operating expenditure and rates

108、of return under five year access arrangement proposals.APA will also be required to publish actual contracted prices across its pipeline network.Further changes to the information disclosure framework will take place from FY25,under a new Pipeline Information Disclosure Guideline,currently underdeve

109、lopment.APA pipelines(owned and/or operated)by regulation typeExternal environment (continued)Full regulation pipelinesLight regulation pipelinesNon-scheme pipelinesPartly full regulation/non-scheme pipelines12APA GROUP ANNUAL REPORT 2023Regulatory resetsThe diagram below shows the scheduled regulat

110、ory reset dates for pipelines owned and operated by APA.During FY23,approximately 8.2%of APAs Energy Infrastructure revenues were subject to regulated outcomes.Key regulatory matters relating to APA assets addressed during the year included:Victorian Transmission System(VTS)2023-2027 access arrangem

111、ent On 9 December 2022,the AER published its final decision on the 2023-27 VTS access arrangement.The decision recognised the importance of continued investment in the VTS to maintain reliability and system security for Victorian gas users.The access arrangement will have effect for five years from

112、1January2023.Murraylink 2023-2028 revenue proposal1 On 28April2023,the AER published its final determination for the Murraylink electricity transmission interconnector between South Australia and Victoria,approving total revenues for the 2023-28 period at levels 4.5%lower than allowed for in the 201

113、8-22 period.This cut was driven largely by reductions in the allowed cost of capital.Energy industry policy developmentsIn FY23 APA continued to engage in national and jurisdictional policy processes focused predominantly on gas security,development of the hydrogen and renewable gas industries,and t

114、he decarbonisation of the economy.The focuses of our submissions were as follows:Gas security APA submitted that market approaches,rather than direct Government intervention,are the most efficient means of ensuring gas is delivered to customers.Our submissions also stressed the importance of bringin

115、g new gas supplies to market.Hydrogen and renewable gas reforms APA lodged submissions to various jurisdictional processes proposing to extend licensing and technical frameworks to include hydrogen and renewable gases.Decarbonisation of the economy APA supports the development of Renewable Energy Zo

116、nes and contestability in transmission delivery to help efficiently connect renewable generation to the National Electricity Market.APA also supported amendments to the National Energy Objectives and the Safeguard Mechanism to help drive the decarbonisation of theeconomy.Banning new gas connections

117、The ACT and Victorian governments are taking steps to ban new gas connections at the distribution level for households and small business.Both governments are also offering subsidies for households and small business to replace gas appliances with electric ones.Scheduled regulatory reset dates for p

118、ipelines owned and operated by APA2Victorian Transmission System31 DECEMBER 2027Roma Brisbane Pipeline30 JUNE 2027CY23CY24CY25CY26CY27Amadeus Gas Pipeline30 JUNE 2026Goldfields Gas Pipeline31 DECEMBER 20241 APA has 20%ownership of Murraylink.2 Victorian Transmission System access arrangement from 1

119、January 2023 to 31 December 2027.OPERATING&FINANCIAL REVIEWSUSTAINABILITYGOVERNANCEAPA INFRASTRUCTURE TRUST FINANCIAL REPORTAPA INVESTMENT TRUST FINANCIAL REPORTADDITIONAL INFORMATION13Our strategyCreating value asTHE PARTNER OF CHOICEMeeting the needs of our customersWHERE WE HAVE A COMPETITIVE ADV

120、ANTAGEDisciplined investment ACROSS FOUR ASSET CLASSES14APA GROUP ANNUAL REPORT 2023An effective transition requires an ambitious but pragmatic approach to delivering affordable,reliable and low emissions energy.To achieve this,we believe the transition must focus on the retirement of coal fired pow

121、er generation and the introduction of renewable generation,firmed with gas and/or other low emissions firming and storage technologies.APA is well positioned in Australia to play a key role in developing and deploying energy solutions that strike the balance between these often competing priorities.

122、Our natural gas assets are strategically integrated in both the East Coast and West Coast gas markets.They will remain a critical part of the future energy mix,balancing the load and helping to unlock the expansionof renewable energy required to replace retiring coal power stations and support the n

123、ations decarbonisation.In addition,natural gas continues to play an important role for powering hard-to-abate and hard-to-electrify industrial sectors and provides essential heating in colder climates.APAs assets will help to ensure Australia continues to have access to reliable and cost-efficient e

124、nergy.APAs strategy is to be the partner of choice in delivering infrastructure solutions for the energy transition.We will do this in select asset classes,where we have acompetitive advantage renewable electricity and firming,electricity transmission,gas transportation andfuture energy(including cl

125、ean fuels such as hydrogen andrenewablemethane).This approach will be underpinned by anticipating the needs of our customers,partnering with them,pursuing unsolicited proposals,and delivering bundled energy solutions.APAs energy transition strategy is focused on four asset classesAPAs strategy is to

126、 be the partner of choice in delivering infrastructure solutions for the energy transition.We are supporting Australias energy transition through investment inOPERATING&FINANCIAL REVIEWSUSTAINABILITYGOVERNANCEAPA INFRASTRUCTURE TRUST FINANCIAL REPORTAPA INVESTMENT TRUST FINANCIAL REPORTADDITIONAL IN

127、FORMATION15Contracted Renewables and FirmingElectricity TransmissionGas TransportationFuture EnergyOur strategy (continued)BRINGING THE APA STRATEGY TO LIFE THROUGH A CUSTOMER DRIVEN APPROACH TO MARKET RESOURCE INDUSTRYENERGY SUPPLY AND WHOLESALEGOVERNMENTLARGE COMMERCIAL AND INDUSTRIAL.ACROSS VARIO

128、US ASSET CLASSES.MEETING THE NEEDS OF OUR CUSTOMERS WHERE WE HAVE A COMPETITIVE ADVANTAGE.A CUSTOMER FOCUSED STRATEGY.Levelised cost of energy remains keyFlexibility to respond to changing supply sourcesReliability of service remains highOpportunity across both East and West coastsLeverage current a

129、ssets along with incremental learning and executionRequire trusted partner to support accelerating transitionReliability and social licence are keyCost is important,but timely delivery drives outcomesOpportunity estimated amounts to$54bn including REZs and subsea cablesBasslink,Murraylink,Directlink

130、 illustrate our capabilityAbility to provide flexible and responsive services to changing market demandsReliability of supply with a trusted partnerRequiring innovative ways to respond to the energy transitionOpportunity across both East and West coastsCore operating business with a proven track rec

131、ordResource companies are decarbonising majority have CO2 reduction goalsReliability of energy supply with a trusted operator/partnerLevelised cost of energy remains key for global competitivenessSignificant opportunity exists in North West Minerals Province,Pilbara,GoldfieldsMt Isa and Gruyere show

132、cases our capabilityAsset class and total estimated addressable market size1:$8bn Gas Pipelines$260bn Hydrogen$54bn Electricity Transmission (including Subsea Cables)$206bn Contracted VRE and Firming on Grid(NEM)$13bn CO2 Transmission$25bn Contracted VRE and Firming Remote Grid1 Estimated addressabl

133、e market sizes in Australia.Estimates are based on a number of key assumptions,including in relation to macroeconomic factors,future technology advancements and costs,market demand,regulatory requirements and government policies and there can be no assurance the estimates are accurate.The actual add

134、ressable market sizes may differ materially from the estimates because events frequently do not occur as projected.16APA GROUP ANNUAL REPORT 2023Our sustainability roadmap As a leading Australian energy infrastructure business,we believe we have a responsibility to steward our natural resources and

135、preserve long-term value for security-holders,communities and our people.At APA we see sustainability as a priority that involves both opportunities and risks.We understand the value and scrutiny our partners and stakeholders place on our sustainability performance and that this is used to assess AP

136、As comparative performance across the industry.Our approach to sustainability is governed by a Sustainability Roadmap centred on nine material sustainability issue areas identified through a consultative process.Our Roadmap provides a three-year framework for building the foundations of sector-leadi

137、ng sustainability performance.APAs Net Zero ambitions and the low-carbon transition are at the heart of our Roadmap and we are prioritising achievement of the targets outlined within our Climate Transition Plan(CTP).Our Sustainability Roadmap and our CTP are overseen by our Board and guided by the S

138、afety and Sustainability Board Committee.Climate Change Transition and Risk Environmental Managementincluding Heritage ManagementSafety,Health and WellbeingCommunity and Social PerformanceFirst Nations Peoples Inclusion and Diversity People and CultureGovernance and Risk ManagementSustainable Develo

139、pmentSustainability issuesLeverage our strengths and focus on the things that matterEngage,listen and innovate with key stakeholders and alliancesAchieve consistently meaningful,measurable and impactful outcomesAnticipate and be well positioned to respond to fast moving issues and opportunitiesAccel

140、erate our improvement actions to close the gapTake a know and show approach with disclosure and transparencyESG SCORECARDROADMAP AND PLAN PRINCIPLESBUILDACCELERATEMAINTAIN AND EVOLVEPriority issues to be built into strengthsFundamental issues which require strengtheningExisting plans and processes t

141、o evolve via ESG lens123456OPERATING&FINANCIAL REVIEWSUSTAINABILITYGOVERNANCEAPA INFRASTRUCTURE TRUST FINANCIAL REPORTAPA INVESTMENT TRUST FINANCIAL REPORTADDITIONAL INFORMATION17Risks and opportunitiesEMBRACING the energy transition opportunityOPTIMISING outcomes in a highly regulated and fluid env

142、ironmentFUTURE PROOFING APA with the right capability and technology18APA GROUP ANNUAL REPORT 2023As a leading energy infrastructure business,APA is exposed to risks that can have a material impact on our delivery of energy and our financial success.Our approach to managing material risks is summari

143、sed below.Risk management framework APAs risk management framework supports the identification,management,escalation and reporting of material risks.By implementing an effective risk management framework APAs Board and executive aim to ensure that strategies are in place to manage potential opportun

144、ities and threats.APA adopts a three lines model for managing risks and establishing controls to promote the behaviours and decision making to support effective risk management.This model of risk management is depicted below.The first line,our employees,are accountable for day-to-day risk management

145、 and decision making within appropriate guidelines.In lines two and three,APAs Executive Leadership Team,the Boards Risk Management Committee and the relevant business divisions have oversight of and review material risks regularly,with the support of internal and external experts.During FY23,the ac

146、celerating energy transition,as well as emerging geopolitical risks,inflation and supply chain disruptions were key risks and opportunities impacting our operational and financial performance.To create and protect value APA has focused on these risks and opportunities,updating actions to manage risk

147、s and achieve our objectives.Existing material risks also have ongoing oversight with a major priority being ensuring the safety of our operations and supporting activities to provide reliable energy to our customers,and to maintain our financial strength to respond to changes in the Australian ener

148、gy market.BOARDAccountable to stakeholders for organisational oversightRISK MANAGEMENT COMMITTEE/AUDIT AND FINANCE COMMITTEEDelegates,directs,ensures adequate resourcing and provides oversightEXECUTIVE RISK MANAGEMENT COMMITTEEAccountable for risk and reporting to the Risk Management CommitteeMANAGE

149、MENTINTERNAL AUDITEXTERNAL ASSURANCE PROVIDERS(External Audit1,Regulator Audit,Third Party Audit,Advisory Reviews)LINE ONEOwns and manages risksLINE TWOBuilds,reviews and supportsLINE THREEIndependent assuranceGroup Executives Our PeopleEnterprise/Divisional Risk,Compliance and Assurance Teams,HSEH,

150、Enterprise Security,Enterprise PMOGroup Internal Audit Provide products/services to customers Implement risk management frameworks(identify,assess,own and manage risks to achieving objectives)Own internal controls and actions Own and manage compliance with legal,regulatory and ethical expectations C

151、ontrol attestation/self-assessment Provide expertise,support,monitoring and challenge on risk-related matters Maintain and continuously improve risk management practices at an enterprise/function,system or process level Report on the adequacy and efectiveness of risk management Coordinate insurance

152、Maintain and implement risk-based control assurance programs at enterprise/function level Provide independent and objective assurance of objectives Ensure that governance structures and processes are appropriately designed and operating as intended Provide oversight and direction in aligning governa

153、nce activities,including integrated assuranceKey:Accountability reporting1 External Auditors have not provided assurance over the risk management framework in FY23.Alignment,communication,coordination,collaborationDelegation,direction,resources,oversightOPERATING&FINANCIAL REVIEWSUSTAINABILITYGOVERN

154、ANCEAPA INFRASTRUCTURE TRUST FINANCIAL REPORTAPA INVESTMENT TRUST FINANCIAL REPORTADDITIONAL INFORMATION19Material risksAPA currently considers the following risks to have the possibility of materially impacting our ability to meet our business objectives.Material risks are subject to enhanced overs

155、ight by management and the Risk Management Committee.Thislist is not exhaustive and is subject to change as new risks emerge or are no longer considered material risks.RISKDESCRIPTIONMANAGING THE RISKStrategic Risks Strategic risks are those uncertainties that could materially impact the business ab

156、ility to implement its strategic objectives.Energy market transitionAccelerating decarbonisation and carbon emissions(net zero)targets drives potential for cleaner power generation,renewables development,and energy innovation/new entrants in markets.Government net zero policies/targets and new techn

157、ologies could materially decrease the market for gas and gas transportation and APA may fail to grow in other energy infrastructure classes,limiting domestic market growth.Execution of APAs customer-focused strategy creates value as the partner of choice,delivering infrastructure solutions for the e

158、nergy transition where APA has a competitive advantage and across targeted asset classes.Actively contribute to Government policy process and advocate for the importance of APAs role in supporting energy transition and managing the intermittency of renewables.Engage with customers and pro-actively m

159、anage opportunities to retain,re-contract or switch to alternative APA assets via structured,flexible and competitive price and service offerings.Government and regulatory interventionAPA is exposed to regulatory policy change and government interventions.These changes and interventions may be at Fe

160、deral,state or territory level,and may vary.They could include those that are designed to support decarbonisation,limit the impacts of climate change,or manage the impact of Australias transitioning energy system.Those policy changes and interventions may constrain gas supply(including through limit

161、ing or restricting new gas projects),impact the availability of competitively priced gas,increase compliance costs for APA and its customers and otherwise place additional operating restrictions or complexities on APAs businesses and the businesses of its customers.In addition,under the recent amend

162、ments to the National Gas Law and National Gas Rules,the Australian Energy Regulator(AER)will now have the power to determine the form of regulation to apply to a particular pipeline,and could apply full regulation to pipelines that are currently non-scheme.If implemented,any of those policy changes

163、 and interventions may change the commercial viability of existing or proposed projects or operations and adversely impact APAs future business and operations.Maintain strong regulatory and policy functions and be an active participant and stakeholder in the development of regulation and policy,incl

164、uding AER guidelines which support the exercise of its new powers.Continually assess and respond to key policy change proposals with potential impacts on APAsbusinesses.Actively engage with updating/developing relevant Australian standards.Social licence APA relies on a level of public acceptance fo

165、r the development and operation of its assets.Changing societal and community sentiment in relation to the energy industry,as well as APAs business,may impact APAs commercial opportunities,and its ability to develop new projects and operate its assets.Engage with key stakeholders(landowners,producer

166、s,customers,government etc)to identify focus areas.Monitor expectations,major trigger events within the community and APAs reputation score.Drive community and social performance initiatives and programs working with First Nations People.Implementation of APAs Climate Tranistion Plan,Sustainability

167、Roadmap,transparent and proactive annual disclosure.Risks and opportunities (continued)20APA GROUP ANNUAL REPORT 2023RISKDESCRIPTIONMANAGING THE RISKOperating multiple asset typesRisks arise from managing and partnering across multiple asset types.While many existing structures for managing people,p

168、rocesses and plant are already asset agnostic(e.g.asset management framework,IT systems,risk and assurance O&M workforce management and the Integrated Operations Centre),risks will arise from the need to scale up and integrate new assettypes.Continue to invest in our capability in electricity transm

169、ission development and engineering,power generation optimisation and asset development and integration.Continuous improvement of existing asset agnostic structure and framework for managing people,processes and plant.Continue to invest in maturing asset management framework and real time data analyt

170、ics.Partnering across multiple stakeholder groupsAPAs engagement spans a diverse range of stakeholders(e.g.across State and Federal Government agencies,community,landholders,customers,suppliers,investors and employees)who hold different perspectives and objectives.Risks arising from engagement with

171、this complex and changing set of stakeholders could lead to reputation damage,loss of stakeholder support/trust which ultimately affects APAs ability to win projects,source approvals,and diversification into new energy markets.The development of targeted State-based stakeholder engagement plans to e

172、nsure appropriate owners are assigned to stakeholders and there is coordination and cohesion across the business.Continued investment in core capability around targeted workforce planning.Operational Risks Operational risks potentially arise from weaknesses in internal processes,people or systems or

173、 from unforeseen external events.Health and safetyPreventing workplace injury and keeping all our employees and contractors safe is our highest priority.Risks arise from operating within our hazardous industry,where safety events or major hazards have the potential to cause illness,injury or impact

174、the safety(including psychological safety)and wellbeing of APAs employees,contractors and communities.APAs Board Safety and Sustainability Committee has oversight of this risk.The key focus is prevention achieved by appropriately identifying,managing and where possible eliminating risks.Continued fo

175、cus on comprehensive health and safety management policies,strategies,frameworks(including employee Wellbeing Framework),systems and processes.Reporting of key performance metrics to monitor safe behaviours and identify continuous improvement opportunities.Asset operationsAPA is exposed to major inc

176、idents or events that may result in harm to our people,environment,and the communities we operate in;or materially impact our reputation or financial performance.Comprehensive operational,process safety,cultural heritage and environment management programs.Continue to engage with wider industry to s

177、tay abreast of best practice asset management processes.Implement asset management and maintenance engineering standards,including integrity monitoring and maintenance programs,as part of risk-based asset lifecycle management.Conduct asset operational monitoring through control rooms to manage asset

178、s within design parameters and coordinate asset maintenance issues.Provide comprehensive insurance arrangements as part of the asset protection program.Infrastructure developmentRisks associated with the development of new pipeline capacity,renewable,battery and gas-fired power generation plants,and

179、 gas storage and gas processing assets.This includes typical construction risks such as:obtaining necessary regulatory approvals,employee or equipment shortages,third-party contractor failure,weather risk,and higher than budgeted construction costs impacting liquidated damages and project delay.Acce

180、ss and approvals management for new construction projects.Dedicated construction project management capability and governance to manage efficient,safe and quality delivery of construction projects.OPERATING&FINANCIAL REVIEWSUSTAINABILITYGOVERNANCEAPA INFRASTRUCTURE TRUST FINANCIAL REPORTAPA INVESTME

181、NT TRUST FINANCIAL REPORTADDITIONAL INFORMATION21RISKDESCRIPTIONMANAGING THE RISKCorporate transformationAPA is exposed to the risks associated with the design and delivery of enterprise-wide corporate transformation programs.These strategic programs include the transformation of APAs core financial

182、 and people management processes,technology platforms and capability uplift to achieve APAs net zero targets and the security of critical infrastructure.Roll-out of an enterprise-wide project governance and delivery framework,tools and organisational change management capability.Project/program repo

183、rting,risks and issues management and escalation and oversight by senior management and the Board.SustainabilityThe risks arising from the management and disclosure of sustainability issues(including climate and ESG matters)impacting APA performance and reputation.APAs Board Safety and Sustainabilit

184、y Committee has regular oversight of this risk.Delivery of comprehensive environment and heritage management policies,strategies,frameworks,systems and processes.Refreshed sustainability risk assessment(including climate risks)with clear business ownership.Formalised procedures supporting sustainabi

185、lity including integrated reporting,an enhanced scorecard and APAs Sustainability Roadmap and strategy.People and cultureOur leaders are held accountable for creating cultural alignment with APAs behaviours and establishing a workplace where everyone feels safe,respected and included.APAs inclusive

186、culture is a prerequisite to our ability to attract,engage,develop and retain a diverse pool of skills and capabilities in a competitive talent market.APAs Board People and Remuneration Committee has oversight of this risk.Execution of clear employee value proposition and effective talent programs t

187、o develop and maintain talent pipelines.Delivery of comprehensive learning and development programs including leadership programs to build the skills and capability required for now and the future.Implementation of holistic cultural programs designed to improve workplace inclusion and diversity,empl

188、oyee experience and wellbeing.Identification of clear expectations of behaviour in APAs Code of Conduct and RespectWork procedure.Technology strategy,operation and securityThe risk of interruption to APAs operations due to unreliability of information and operational technology systems,applications,

189、technology architecture or third-party providers.Manage APAs information and technology assets in accordance with recognised industry standards across hardware,software,applications and communication systems.Apply security standards across APA information and technology systems,including those manag

190、ed by third-party vendors,with standards continually assessed against new threats and vulnerabilities.Regular reviews and testing of information and operational technology systems.Cyber securityCyber-attacks are increasing in frequency,scale and sophistication across both our communities and industr

191、y.APA plays a pivotal role in Australias essential energy supply chain and could be the target for a cyber incident.Breaches may involve sensitive commercial and/or personal information or impact the operation of critical infrastructure assets and systems possibly leading to shutdowns of our energy

192、assets.Implementation of a program to strengthen the security of APA assets,and cater for emerging threats,security regulation and stakeholder expectations.Robust security monitoring and incident response process supported by regular exercises and security control assurance programs.Compulsory secur

193、ity awareness training for APA employees and contractors,including how to identify phishing emails and keep data safe;and a regular program of random testing.Risks and opportunities (continued)22APA GROUP ANNUAL REPORT 2023RISKDESCRIPTIONMANAGING THE RISKFinancial and Compliance Risks Financial risk

194、s are those arising from the management of APAs financial resources,accounting,tax and financial disclosure.Compliance risks arise from laws,regulations,licences and recognised practising codes including health,safety,environment,cultural heritage,payroll,asset construction and operation,and other c

195、orporate compliance requirements.Legal,compliance and operating licencesAPA is exposed to the risk of operating within a highly regulated environment with complex legal requirements,operating licence conditions,industry standards/codes of practice and corporate obligations.Comprehensive Enterprise C

196、ompliance Management Framework in place with regulations identified,controls monitored and assurance operating.Dedicated specialist teams that provide asset level monitoring and assurance for technical,safety,environment and cultural heritage compliance.Debt and capital managementThe risk arising fr

197、om reduced business and financial flexibility due to ineffective management of APAs debt and capital or limited availability,or unfavorable pricing,timing and access to debt and equity funding.Board approved risk limits and Treasury Risk Management Policy.Regular,independent reviews of corporate and

198、 asset models underpinning investment decisions.Effective debt and capital management strategy and hedging against interest rate movements and foreign currency rate fluctuations.Maintain access to a broad range of global banking and debt capital markets.Key emerging risks,threats and opportunitiesBe

199、low we note several key emerging risks that are highly uncertain by nature and include threatsandopportunitiesforAPA:EMERGING RISKTHREATS AND OPPORTUNITIESAPPROACHGlobal economic slowdownThreat:Global economic slowdown impacts financial markets and customer demand,potentially reducing gas contract c

200、apacity demand and recontracting revenue,access to new debt markets and liquidity and commodity prices.Strong capital management framework,including hedging arrangements and customer credit monitoring.Actively monitor commodity pricing impacting sourcing of goods and materials utilised in large cons

201、truction projects and domestic demand.Closely monitor changes in energy demand including substitution.Geopolitical uncertaintyThreat:Geopolitical uncertainty with rising tensions in the region and continuation of the Russia/Ukraine conflict impacting changes in sanctions regimes,international energy

202、 demand,rising national security interests and worsening supply chain disruption.Continue to evaluate options for alternative sources of supply for international construction procurement.Conduct resilience updates for information technology infrastructure,including cyber resilience.Focus on gas rese

203、rving management,including increases in gas line pack to meet high demand periods.Carbon offsetsOpportunity:Introduction of carbon offsets as part of decarbonisation and climate change requirements to support energy infrastructure development and growth.Continue to investigate a number of carbon off

204、set programs via a mix of direct procurement and investment opportunities.Artificial intelligenceOpportunity:Growth in artificial intelligence and potential impact on productivity improvements.Initiatives to improve data quality and data governance providing for adoption of digital technologies impa

205、cting workforce improvements.OPERATING&FINANCIAL REVIEWSUSTAINABILITYGOVERNANCEAPA INFRASTRUCTURE TRUST FINANCIAL REPORTAPA INVESTMENT TRUST FINANCIAL REPORTADDITIONAL INFORMATION23Sustainability at APA Developed our inaugural APA RECONCILIATION ACTION PLANSupported our communities through ourSOCIAL

206、 INVESTMENT INITIATIVESEstablished GENDER-NEUTRAL PARENTAL LEAVE BENEFITS24APA GROUP ANNUAL REPORT 2023We prioritise sustainable outcomes so that APA,our employees,customers and communities in which we operate can thrive now and in the future.At APA we are united behind a singular purpose to strengt

207、hen communities through responsible energy.We are committed to act responsibly across all of our business activities.We seek continual improvement,working collaboratively with our industry peers and engaging transparently with our stakeholders.We understand the value and focus that our partners and

208、stakeholders place on our sustainability performance and that this is used to assess APAs performance across the industry.Our Sustainability Roadmap provides the foundations for APA to develop key strategic sustainability initiatives and deliver on them in a prioritised way.Over the last two years o

209、ur main areas of focus have been on the build and accelerate pillars of our Sustainability Roadmap.These pillars identify fundamental focus areas that require growth and/or strengthening.It is important that we are targeted in our approach and focused on those topics that matter most to APA and our

210、stakeholders.Our material sustainability focus areasIn FY21,we conducted a stakeholder-centric materiality assessment to identify the core sustainability-related issues that APA should focus on.This process informed the development of our three-year Sustainability Roadmap and enabled us to bring APA

211、s vision and purpose to life.APAs Sustainability Roadmap categorises the core issue areas into three groups:Build,Accelerate and Maintain and Evolve.The diagram on page 26 highlights our progress against the Sustainability Roadmap in FY23.To continue to deliver the most positive impact for APA and h

212、ighest value for our stakeholders,it is critical we regularly re-evaluate the sustainability issues most material to our business and stakeholders.This will enable us to assess the economic,social,environmental and cultural impacts of our activities and business relationships and refine our main foc

213、us areas and associated initiatives.As our Sustainability Roadmap is due to complete in June 2024,work is underway to prepare a refreshed Roadmap.The first step towards this is delivery of a sustainability materiality assessment,culminating in an impact-based sustainability materiality matrix.The ma

214、teriality assessment approach will be guided by the Global Reporting Initiative(GRI 3:Material Topics 2021)which considers actual and potential negative and positive impacts of our business to determine our material sustainability issues for prioritisation.Supporting the UN Sustainable DevelopmentGo

215、als APA continues to support the delivery of the 17 United Nations Sustainable Development Goals(SDGs).By working more strategically and aligning our initiatives to the relevant SDGs we can tackle major societal,environmental and economic challenges whilst also identifying and unlocking significant

216、business opportunities.At their core,the SDGs aim to create a shared value approach through the creation of economic and business value in a way that fundamentally addresses societal needs and challenges.The paradigm shift required to transition from a philanthropic approach to one delivering both b

217、usiness and social values now guides our approach.To demonstrate how the business is meeting the relevant SDGs,we have mapped goals to the three areas of our Roadmap and indicated where each goal is connected to our performance and priorities.SUSTAINABILITYGOVERNANCEAPA INFRASTRUCTURE TRUST FINANCIA

218、L REPORTAPA INVESTMENT TRUST FINANCIAL REPORTADDITIONAL INFORMATION25OPERATING&FINANCIAL REVIEWSustainability at APA (continued)FY23 PROGRESS AGAINST APAS SUSTAINABILITY ROADMAPBUILDPriority issues to be built into strengthsACCELERATEFundamental issues which require strengtheningMAINTAIN AND EVOLVEE

219、xisting plans and processes to evolve via ESG lens Climate change transition and risk Community and social performance First Nations Peoples Environmental management including heritage management Safety,health and wellbeing Inclusion and diversity People and culture Governance and risk management Pr

220、ogressed CTP actions in line with FY23 commitments.Established a dedicated Community and Social Performance(CSP)team to deliver CSP strategy and social investment framework.Hosted workshops with our five corporate partners to understand new and meaningful ways to collaborate together Contributed$1.2

221、 million through discretionary social investment to communities via targeted community grants programs,corporate partnerships with charitable organisations and local sponsorships and donations.Prepared APAs Reconciliation Action Plan(RAP)under the guidance of a newly established cross-functional RAP

222、 Working Group.Progressed our four year Environment Improvement Program in line with the HSEH Strategy schedule.Processes,tools and templates for 3 of 8 environment risks areas have now been developed/refined,integrated and implemented across the business.Scoped environment data uplift opportunities

223、 across the waste,water and contaminated land risk areas.Uplifted our heritage practices at targeted assets and recruited additional Heritage Specialist.Ongoing delivery of our three-year weed survey program.Delivered 15 environment audits.Refreshed our HSEH Policy.Prepared,approved and initiated ou

224、r five-year HSEH strategy with strategic pillars centred on safety performance,leadership and innovation.Introduction of the Board Safety and Sustainability Committee.Prepared an ESG Risk Register tracking and monitoring our business-wide ESG risks.Revised our Inclusion and Diversity(I&D)Plan and re

225、freshed our Policy to focus on facilitating an inclusive culture,including the launch of our RespectWork Procedure and e-module and completing a gender pay review.Established gender-neutral parental leave benefits.Uplifted leadership training and capability including the introduction of the INSEAD C

226、urriculum.Refer to APAs FY23 Sustainability Data Book for further information about our FY23 sustainability performance.26APA GROUP ANNUAL REPORT 2023Climate transition planOur CTP is an important step in APAs commitment to actively participate and support Australias energy transition,consistent wit

227、h the objectives of the Paris Agreement.Our FY23 progress on the commitments in our CTP will be reported in our new FY23 Climate Report,due to be released in September 2023.Gas infrastructure net zero operational emissions by 20501 Power generation and electricity transmission infrastructure net zer

228、o operational emissions2 by 20403GOAL:30%emissions reduction for gas infrastructure(FY21 base year)TARGET:100%renewable electricity procurement from FY23 onwards TARGET:100%zero direct emission fleet by 2030Responsible criteria applied when ofsets are requiredGOAL:COMMITMENT:INTERIM COMMITMENTS FOR

229、2030KEY SUPPORTING COMMITMENTS35%reduction in emissions intensity for power generation(FY21 base year)GOAL:Contribute positively to grid decarbonisation measured by MW of enabled renewable infrastructure GOAL:Active program to reduce emissions we can control and apply best practice management techni

230、ques to managing line lossesCOMMITMENT:GOAL:Incorporation of the Methane Guiding PrinciplesWhen setting APAs targets and goals,we have made our commitments clear to stakeholders,based on the level of uncertainty in the pathway required to reach them.Target:an intended outcome where we have identifie

231、d one or more pathways for delivering that outcome,subject to certain assumptions or conditions.1 Includes transmission,distribution,gas processing,storage and corporate.2 The organisational boundary for all targets and goals relates to assets under APAs operational control,as defined by the Greenho

232、use Gas(GHG)Protocol.The following assets are not within APAs operational control for emissions reporting purposes:Victorian Transmission System(maintenance excepted),Gruyere and X41 Power Stations,Wallumbilla Gladstone Pipeline,SEA Gas Pipeline and Mortlake Pipeline,North Brown Hill Wind Farm and A

233、ustralian Gas Networks.3 Includes power generation and interconnectors.Goal:an ambition to seek an outcome for which there is no current pathway but for which eforts will be pursued towards addressing that challenge,subject to certain assumptions or conditions.Hold a non-binding securityholder vote

234、on future material updates to our Climate Transition PlanReport annually on progress against the targets,goals and commitments in our Climate Transition PlanLink executive remuneration to climate-related performance from FY23Scope 3 emissions goal to be finalised before or in conjunction with next C

235、limate Transition Plan12345NEW COMMITMENT FOR 203030%methane reduction target(FY21 base year)TARGET:SUSTAINABILITYGOVERNANCEAPA INFRASTRUCTURE TRUST FINANCIAL REPORTAPA INVESTMENT TRUST FINANCIAL REPORTADDITIONAL INFORMATION27OPERATING&FINANCIAL REVIEW BUILDClimate change transition and riskOur FY23

236、 Climate Report will be released in September 2023,in line with our commitment to report annually on progress against our CTP.This allows for sufficient time to prepare and independently assure our emissions data.The Climate Report will contain disclosures consistent with the recommendations of the

237、TCFD.Our climate transition plan defines interim and long-term emission reduction targets and goals by asset class.We have sought to set interim targets and goals aligned with the objective of the Paris Agreement and to disclose consistent with the Taskforce on Climate-related Financial Disclosures(

238、TCFD)recommendations.Since the release of our CTP in August 2022,APA has made clear progress against our plan.Our focus has been on embedding the necessary structures,processes and systems to ensure our approach to climate is integrated across the business.Performance against our gas infrastructure

239、and power generation interim targets and goals will be detailed within our FY23 Climate Report.APAs strategy is to achieve our CTP commitments through:Electrifying and optimising the operation of compressors.Reducing the emissions intensity of power generation through investments in renewables.Reduc

240、ing methane emissions through leak detection and repair and implementation of specific initiatives such as seal gas recovery.Optimising the performance of existing power generation equipment.Buying or internally generating high quality offsets where emissions reduction is not possible or cost prohib

241、itive.APA has committed to finance these infrastructure emission reduction initiatives through a$150 million to$170 million net zero fund over FY23 to FY30.There is some upside pressure on this spend projection in the area of compressor electrification due to higher grid connection and electric moto

242、r drive unit costs,while other opportunities may be implemented in a more cost-efficient manner.Linked executive remuneration to CLIMATE-RELATED PERFORMANCE OUTCOMESProcured large-scale generation certificates (LGCs)to meet our 100%RENEWABLE ELECTRICITY PROCUREMENT COMMITMENTSet a methane target ali

243、gned with the Global Methane Pledge(GMP)of an AT LEAST 30%REDUCTION IN OUR OPERATIONAL METHANE EMISSIONS BY 2030 (FY21 BASE YEAR)28APA GROUP ANNUAL REPORT 2023Supporting a lower carbon future and the energy transition APAs Pathfinder ProgramAPA is investing in future fuels through our Pathfinder Pro

244、gram established in FY21,to understand the requirements to support clean molecules in either existing or new infrastructure.In May 2023,our landmark Parmelia Gas Pipeline(PGP)conversion project in Western Australia confirmed via pressurised hydrogen laboratory testing the technical feasibility of co

245、nverting a 43km section of the PGP to carry 100%hydrogen.The testing results indicate it is technically feasible,safe and efficient to run the 43km section of the pipeline at the current operating pressure using hydrogen.The project will now consider preparing the section of pipeline for hydrogen se

246、rvice,and will include detailed safety studies and conversion plans,while continuing to investigate potential supply and offtake opportunities.Off the back of this research,APA has developed a Pipeline Screening Tool (PST)that provides a high-level assessment of the hydrogen readiness of its nationa

247、l pipeline assets,based on key pipeline material and operating characteristics.Initial assessments using the PST indicate there is a high likelihood that around half of APAs natural gas pipeline assets could be used for hydrogen transportation in 100%pure or blended form,with no,or small,changes to

248、their current operating profile.For the remainder of APAs pipelines,which consist largely of high strength steel operating at higher pressure,further research and materials testing will be required to determine if any changes in operating pressure are needed to maintain pipeline integrity whilst tra

249、nsporting hydrogen.Supporting the PGP conversion project is a Memorandum of Understanding between APA and Wesfarmers Chemicals,Energy and Fertilisers(WesCEF),signed in May 2022.As part of this,we committed to a pre-feasibility study to assess the viability of producing and transporting green hydroge

250、n via the PGP to WesCEFs production facilities in Kwinana.The findings were promising,demonstrating that the PGP study area is likely to be suitable for green hydrogen development.APA and WesCEF are now considering the results further.In September 2021,APA joined an international consortium in an ef

251、fort to establish Queenslands largest green hydrogen project the Central Queensland Hydrogen Project(CQH2).In April 2023,APA paused our involvement in the early stages of the CQH2 project but believes the project has an exciting pathway ahead.APA remains interested in a future role in the project an

252、d continues to be involved in other Queensland projects developing hydrogen export supply chains.Pathfinder is investigating other hydrogen and Carbon Capture and Storage(CCS)project opportunities where APA can bring its market-leading energy infrastructure expertise and experience to large-scale pr

253、ojects.SUSTAINABILITYGOVERNANCEAPA INFRASTRUCTURE TRUST FINANCIAL REPORTAPA INVESTMENT TRUST FINANCIAL REPORTADDITIONAL INFORMATION29OPERATING&FINANCIAL REVIEWCommunity and social performanceDriven by our purpose,to strengthen communities through responsible energy,we are committed to outstanding pe

254、rformance in our interactions with communities.We work to understand the needs and aspirations of our host communities and contribute to their sustainable development.We seek respectful and mutually valuable relationships with our stakeholders.Building stronger community and socialperformance APA wo

255、rks to embed community engagement,development,partnership and participation in all our business activities.We strive to engage with stakeholders in a culturally appropriate way.In FY23 we prepared a revised Social Investment Framework and 2-year CSP Strategy which is scheduled for consultation in ea

256、rly Q1 FY24.This strategy seeks to elevate practices and drive consistency and awareness throughout the business.Community and stakeholder engagement APA plays a critical role in the energy supply chain and we recognise the impacts our activities may have on a range of stakeholders and on the progre

257、ss of energy transition more broadly.For APA,understanding who our stakeholders are and how we impact each other is vital to achieving operational excellence.APAs community and stakeholder engagement programs connect and work with local landholders,Traditional Owners,communities,governments and indu

258、stry.Our programs are tailored to meet the broad needs of our stakeholders and range from simple awareness of our activities to involvement in the design of new infrastructure.Supported more than 84 organisations through ourSOCIAL INVESTMENT PROGRAMSLaunched the Mount Isa and Cloncurry COMMUNITY GRA

259、NTS PROGRAM11,271 landholder contact visits through our LANDHOLDER CONTACT PROGRAM BUILD30APA GROUP ANNUAL REPORT 2023Regulatory Engagement Basslink Basslink is fundamental to both the supply of affordable and reliable energy to Victoria and Tasmania and also the energy transition through the supply

260、 of renewable energy to the National Electricity Market.Following the acquisition of Basslink in FY23,we are progressing a revenue proposal and application,seeking approval from the AER for Basslink to become a regulated asset as a way to support Basslinks continued operation.Converting Basslink to

261、a regulated asset means the maximum prices consumers pay as part of their retail bills for Basslink would be set by the AER through a public consultation process.For consumers,this means a more transparent and independent approach to setting prices for Basslink,and a range of opportunities for publi

262、c consultation on what prices consumers should pay.In November 2022,we established a Regulatory Reference Group(RRG)to co-design the development and implementation of our regulatory engagement plan for Basslink.This plan identifies the scope,timing,themes and engagement methodology.The RRG served as

263、 an independent advisory group representing residential,small business and large energy users in Tasmania and Victoria.The RRG guided our understanding of the needs and expectations of different consumer segments and was used to continually refine our engagement materials and our approach to consult

264、ing with consumers,industry and Government stakeholders.With direct representation from APAs senior leadership team,the engagement program was both broad and deep including:regular RRG engagement forums online focus groups consumer workshops in Launceston and Melbourne an online quantitative survey

265、of 1,200 electricity consumers from Victoria and Tasmania.SUSTAINABILITYGOVERNANCEAPA INFRASTRUCTURE TRUST FINANCIAL REPORTAPA INVESTMENT TRUST FINANCIAL REPORTADDITIONAL INFORMATION31OPERATING&FINANCIAL REVIEWBUILDCommunity and social performance(continued)Landholder engagement APA sees landholders

266、 as key partners in our operations.With easements across many properties throughout the country,access to these properties is an essential part of maintaining and developing our infrastructure.When this is needed,we engage proactively with landholders and seek to minimise our footprint as much as po

267、ssible.In FY23,we continued to run the annual APA Landholder Contact Program,sharing operational and safety information with landholders and providing Before-You-Dig information.This Program also allows landholders to update APA about their activities,access and notification requirements,and to rais

268、e any concerns.The Landholder Contact Program aims to make contact with at least one representative from each parcel every year,preferably face to face.In FY23,we made contact with 11,271 landholder contacts.Over the past few years we have consistently achieved at least 80%of contacts completed in a

269、ll States.In most cases we have achieved over 90%.In recent years we have conducted a popular APA Landholder Photo Competition,with entries used in our annual calendar to highlight the stunning and diverse landscapes in which we operate.APA continues to receive positive feedback from landholders.Our

270、 proactive engagement with landholders is seen as a point of difference with other similar companies.The Energy Charter APA works collaboratively across the energy industry to address common issues and improvement opportunities.As a signatory to the Energy Charter a national CEO-led collaboration we

271、 share the vision to support better outcomes for energy customers.APA is one of 20 Australian energy businesses forming the charter.Signatories commit to publicly disclose their progress against the Energy Charter Principles through the release of an annual disclosure report.In September 2022,we sub

272、mitted our third disclosure report under the Energy Charter.The annual disclosure report details the actions,investments,partnerships and programs that have been delivered and demonstrates our alignment to the five Energy Charter Principles.A copy of this report is published on the APA website.32APA

273、 GROUP ANNUAL REPORT 2023Focusing investment on sustainable development outcomes APA continued to refine and deliver on its Social Investment Framework in FY23.The Framework provides meaningful,valuable discretionary funding to support sustainable development outcomes in host communities.Partnership

274、s and employee contributions As part of our commitment to better outcomes for First Nations people and communities,APA continued our long-standing corporate partnerships with the Clontarf FoundationandThe Fred Hollows Foundation in FY23.APA also recommitted to another year of funding with three corp

275、orate partners who we began working with in FY22 the Stars Foundation,Rural Aid and Uniting.The Stars Foundation aligns with our commitment to support gender equity and better outcomes for First Nations communities.Rural Aid is our dedicated partner when preparing for and responding to natural disas

276、ters through community resilience initiatives.Our corporate partnership with Uniting is derived from our membership of the Energy Charter and provides energy literacy support to individuals and households suffering energyhardship.In FY23 we invested$1.2 million in our communities,prioritising rural

277、and regional communities,First Nations Peoples,climate transition and natural environment protection.Community grants programs In addition to the partnerships and employee contributions,in FY23 APA contributed more than$92,000 in grants across almost 30 community orgnisations as part of our Communit

278、y Grants Program.These initiatives align to APAs Investment Priority Funding Areas and focus on maximising social impact.Projects funded under this program included NAIDOC celebrations,social infrastructure investment and community health and wellbeing initiatives across our East Coast Grid Expansio

279、n,Kurri Kurri Lateral Pipeline,and Mount Isa and Cloncurry assets.APAS SOCIAL INVESTMENT PRIORITY AREASREGIONAL AND REMOTE COMMUNITIESFIRST NATIONS PEOPLESWe also recognise the importance of considering the following when designing,selecting and delivering initiatives,investments and partnerships:CL

280、IMATE TRANSITIONNATURAL ENVIRONMENTBuilding the strength and resilience of regional economies and communities located near APA assets/projectsWorking in partnership with First Nations Peoples to support better outcomes for First Nations communities and heritageSupporting communities in climate trans

281、ition outcomes and adaptation activitiesProtecting and enhancing the natural environments and biodiversity located near APA assets/projectsImpacted community needs and aspirationsPeople in vulnerable circumstancesInclusion and diversityAccess to energy and energy afordabilityBuilding human capabilit

282、y e.g.skillsSUSTAINABILITYGOVERNANCEAPA INFRASTRUCTURE TRUST FINANCIAL REPORTAPA INVESTMENT TRUST FINANCIAL REPORTADDITIONAL INFORMATION33OPERATING&FINANCIAL REVIEWReconciliationAPAs Sustainability Roadmap identifies First Nations Peoples as a priority area for us to build organisational capability,

283、and in FY22 we committed to developing our first Reconciliation Action Plan(RAP).In FY23,we appointed a Reconciliation and First Nations Manager to improve our First Nations governance,performance and disclosures.We established a cross-functional RAP Working Group(RAPWG),chaired by an Executive Spon

284、sor,to develop,implement and report on a Reflect RAP.With the support of our external advisor,Murawin Indigenous Voice Consultancy,we undertook an extensive internal consultation to co-design a quality RAP that meets Reconciliation Australias standards.APA aims to launch our RAP in the first half of

285、 FY24.Committing to a Reflect RAP allows APA to spend time scoping and developing relationships with stakeholders,defining our reconciliation vision and exploring our sphere of influence,in preparation for future reconciliation initiatives and RAPs.Extensive consultation was undertaken to inform dev

286、elopment of the RAP,involving targeted,APA-wide engagements,directly involving 700 employees.First Nations PeoplesAt APA,partnering with First Nations Peoples is central to our purpose.We seek to become a partner of choice for First Nations stakeholders and supporters as we deliver solutions for the

287、 energy transition.Consultation with more than 700 employees to develop our firstRECONCILIATION ACTION PLANOver 500 APA employees joined our INAUGURAL NATIONAL RECONCILIATION WEEK DISCUSSION PANEL EVENTLaunched our new online cultural awareness training module as part of our FIRST NATIONS WORKFORCE

288、STRATEGY$2.67 million spend on goods and services with 24 directly engaged FIRST NATIONS SUPPLIERS BUILD34APA GROUP ANNUAL REPORT 2023First Nations engagementAPA holds Indigenous Land Use Agreements and Cultural Heritage Management Plans with Traditional Owners.These set out processes and plans for

289、protecting Aboriginal cultural heritage and engaging with Traditional Owners in areas where we operate.We are committed to continually improving processes which guide First Nations engagement and Aboriginal cultural heritage management.Our aim is to drive improved land use and benefit sharing with F

290、irst Nations groups and contribute to community capacity through training and employment in the energy sector.This extends to joint venture and equity partnership opportunities with Traditional Owners.Our future engagement will focus on improving the quality and depth of our relationships with First

291、 Nations groups to ensure we respect their rights and interests and adequately build in the priorities of Traditional Owners and host communities throughout our assets lifecycle.First Nations employment With less than 1%of our workforce who identify as First Nations Peoples compared to 3.2%of the na

292、tional population,we recognise more work is needed to ensure our workforce reflects the communities where we operate.In support of this we undertook initiatives in FY23 to improve cultural safety for current and future First Nations employees.In FY23,as part of the implementation of our First Nation

293、s Workforce Strategy,we launched our new online cultural awareness training module.Over 500 APA employees joined our inaugural National Reconciliation Week discussion panel event involving representatives of our RAP Working Group and external First Nations thought leaders.The panel discussed Reconci

294、liation,APAs RAP and the upcoming Referendum.Over 100 employees have joined our Reconciliation Allies APA community.In FY23,we engaged a new Employee Assistance Program provider which has capability to provide primary and secondary health and wellbeing support to First Nations staff and family membe

295、rs.Our Reflect RAP will prioritise our focus and effort on building cultural safety and cultural competency across the entire organisation.First Nations procurement In FY23,APA continued its membership of Supply Nation,a national non-profit organisation that aims to grow the First Nations business s

296、ector through the promotion of supplier diversity in Australia.In FY23,we directly engaged 24 First Nations suppliers,spending$2.67 million on goods and services.Suppliers are comprised of Registered and Certified Supply Nation as well as Land Councils.APAs Reflect RAP will include measurable action

297、s and deliverables to increase the diversity and quantity of goods and services procured directly and indirectly from First Nations-owned businesses.We intend to support and participate in opportunities to build our network of local and First Nations suppliers.We will investigate including First Nat

298、ions Participation Commitments(FNPCs)in our contracts with key suppliers to help facilitate more opportunities for First Nations businesses.Engaging First Nations businesses via FNPCs will enable more First Nations businesses to participate in our supply chain indirectly,growing local industry and e

299、mployment opportunities for First Nations communities.SUSTAINABILITYGOVERNANCEAPA INFRASTRUCTURE TRUST FINANCIAL REPORTAPA INVESTMENT TRUST FINANCIAL REPORTADDITIONAL INFORMATION35OPERATING&FINANCIAL REVIEWEnvironment and heritageAPA performs an extensive range of activities across a diverse range o

300、f environments.We are committed to managing our risks and protecting the environment across all areas of our business.Pursuing a high standard of environment and heritage management is one way we ensure we build and operate our assets in a socially responsible manner.In FY23,APA continued our progra

301、m of strategic initiatives to drive improved environmental performance.We have:Prepared and released updated environmental procedures for Contaminated Site Management and Spill Preparation and Response,including tools,templates and guidelines.The procedures were supported by updates to related busin

302、ess processes and systems and included dedicated staff training and communications.As part of this change a spill response online training module was procured and launched.This has been completed by 450employees.Continued our weed survey program investigating the presence of invasive weeds on APA tr

303、ansmission pipelines.The outcomes of these surveys will inform long-term monitoring and management measures and help to quantify potential impacts on nature andbiodiversity.Completed an assessment of APAs water consumption to improve our understanding of water usage and determine a pathway forward f

304、or more comprehensive water data capture.In addition,we identified all areas of water stress in the areas that we operate and overlaid this information in Geographic Information Systems(GIS)to help inform decision making.Completed a waste assessment to understand waste generation patterns and to bet

305、ter inform future work regarding improved waste data capture and centralisation.Developed a framework to assess site contamination hazards associated with chemical and hazardous substance storage on APA sites and to manage associated contamination risks.LAUNCHED OUR NEW SPILL RESPONSE ONLINE TRAININ

306、G MODULEcompleted by 450 employeesDEVELOPED A FRAMEWORK TO ASSESS SITE CONTAMINATION HAZARDS associated with chemical and hazardous substance storage on APA sitesEMBEDDED HERITAGE MANAGEMENT launched a Being Heritage Aware training module across the business ACCELERATE36APA GROUP ANNUAL REPORT 2023A

307、 four-year Environment Improvement Program is underway to elevate and embed environment processes across the business.This involves uplift of procedures,development of new innovative tools and implementation for eight environment risk areas.Following full completion of the program,all Environment Ma

308、nagement Plans will be updated to ensure alignment of content.YEARENVIRONMENT RISK AREASTATUSFY22HeritageCompletedPests,Diseases and WeedsCompletedFY23Spill Preparation and ResponseCompletedContaminated Site ManagementCompletedFY24Soil ManagementUnder wayWaste ManagementPendingFY25BiodiversityPendin

309、gWaterPendingEnvironment compliance In FY23 APA received seven penalty infringement notices and two regulatory warning notices.The penalty notices were received from the Queensland Department of Environment and Science and had a total penalty value of$34,461.The notices related to late resubmission

310、of Estimated Rehabilitation Cost (ERC)calculations required under the Environmental Protection Act,1994,for six operating assets in Queensland.APA promptly resolved the outstanding information with the Department.One warning notice was received from the First People State Relations(FPSR)portfolio of

311、 the Department of Premier and Cabinet(Victoria).The warning notice related to a ground disturbance activity that did not comply with the approved Cultural Heritage Management Plan.APA self-reported the incident and is working with the stakeholders to resolve the matter.The second warning notice rel

312、ated to missing information required under APAs Environmental Authority for the Kogan North Central Gas Processing Facility.Whilst information was available in technical air quality monitoring reports,required details had not been included in the Register of Fuel Burning and Combustion Equipment Reg

313、ister for the facility.APA rectified the error once aware of the issue.Embedding heritage management acrossthebusiness APA continued to improve heritage management processes throughout FY23.To facilitate continuous improvements in heritage management we have:Completed a targeted heritage study on ou

314、r operational pipeline asset.The study aimed to understand what unrecorded heritage values might existing on ageing infrastructure,constructed in times when heritage management practices and recording were vastly different to today.The heritage surveys,undertaken by the Traditional Owners for the ar

315、ea,identified important heritage values that do remain in these areas.This study will be used to inform APAs approach nationally.Commissioned a review of APAs heritage data management.This review identified opportunities for APA to improve its data management.The recommendations will inform future h

316、eritage improvements.Recruited an additional Heritage Specialist to drive positive First Nations engagement and heritage management outcomes on the Moomba Sydney Pipeline.Environment warning and penalty notices Environmental warning notices recieved Environmental penalty notices recieved012345678910

317、FY19FY20FY21FY22FY23OPERATING&FINANCIAL REVIEWSUSTAINABILITYGOVERNANCEAPA INFRASTRUCTURE TRUST FINANCIAL REPORTAPA INVESTMENT TRUST FINANCIAL REPORTADDITIONAL INFORMATION37People and cultureAPA is committed to being a responsible energy company where people are proud to work.We are striving to creat

318、e a healthy,safe,inclusive and diverse workplace.Building on our Inclusion and Diversity Strategy The four pillars of APAs Inclusion and Diversity Strategy 2020 to 2025 are:Gender Equity We are committed to a level playing field by giving all women and men the same chance to reach their potential.Fl

319、exibility Flex APA means we encourage flexible ways of working and empower people to think differently about where,when and how work is completed to meet the professional goals,priorities and lifestyles.Inclusive Culture We are committed to creating an inclusive culture that values all people and ad

320、dresses biases.(Age,cultural background,LGBTIQ,disability,indigenous,etc.).Inclusive Leadership Inclusive leadership is about making sure our people feel a sense of belonging,are treated fairly and respectfully,and all our peoples voices are heard and valued.COMPLETED A COMPREHENSIVE GENDER PAY EQUI

321、TY REVIEW a like-for-like comparison of roles across the organisation,with all identified gaps resolved Launched APAs RESPECTWORK PROCEDUREINCREASED TOTAL FEMALE REPRESENTATION TO 31.8%among total employees,up from 29.5%in FY22Established GENDER-NEUTRAL PARENTAL LEAVE BENEFITS MAINTAIN AND EVOLVE38A

322、PA GROUP ANNUAL REPORT 2023In FY23,we have continued to build on our Inclusion and Diversity(I&D)Strategy 2020 to 2025 and refreshed our Inclusion and Diversity Policy.We also completed a comprehensive Gender Pay Equity Review.Recent investments in systems and better quality data enabled a like-for-

323、like comparision of roles across the organisation,with all identified gaps resolved immediately.We are working to strengthen APA policies and remuneration processes to avoid any recurrence of Gender Pay Gaps on like-for-like roles at APA in the future.We have also revised our I&D strategy to focus o

324、n the strategic components that will best accelerate the creation of an inclusive culture,including:Refreshed content for our Inclusive Leadership development program.This program was successfully delivered to our Executive Leadership team in March 2023 with roll-out to General Managers and broader

325、leader population starting in August 2023.This program reviews unconscious bias,everyday sexism and the link between diversity and performance.Launched APAs RespectWork procedure.This aligns with the I&D Policy and the APA Code of Conduct.To complement this,a RespectWork e-learning module has also b

326、een implemented.The module encourages employees to speak up if they witness harmful behaviours including unlawful discrimination,bullying,harassment,sexual harassment,sex-based harassment,vilification and victimisation.Introduced APAs enhanced gender-neutral parental leave benefits aligned to indust

327、ry benchmarks.Further embedded our Hybrid APA working model to improve flexibility for employees.The model with 40%of face-to-face office collaboration over the span of a month allows employees the flexibility to manage their lifestyles and priorities outside of work.Achieved a 46%female representat

328、ion in our 2023 Graduate program,and a 53%female representation in the 2022/23 intern programs.Further recruitment efforts are underway to ensure our apprenticeship program reaches a 50%gender split.Became sponsors and partners for Chief Executive Women(CEW).Implemented targeted national campaigns t

329、o promote I&D aligned to national recognition days(such as International Womens Day events,Pride month and NAIDOC Week).Supporting our people Diversity performanceIn FY23,under APAs Gender Target Action Plan,female representation among total employees increased to 31.8%,up from 29.5%in FY22.Senior L

330、eader female representation increased to 31.4%,up from 30.4%,with female representation in the Executive Leadership Team increasing from 29%in FY22 to 44%in FY23.The APA Board has set a gender diversity target of 40/40/20,recognising this may vary slightly depending on the size and required skills m

331、ix of the Board.At 30 June 2023 50%of APAs non-executive directors were female.With the appointment of Nino Ficca to the APA Board from 1 September 2023,female representation will be 43%.APAs challenge is to increase the female representation in operational divisions.These areas have a large proport

332、ion of roles requiring science,technology,engineering and mathematics(STEM)disciplines,in which females are generally underrepresented.In FY23,25%of employees in operational divisions identified as female,compared with 49%in our corporate divisions.APA is also working to improve age diversity.Over 9

333、1%of employees are aged 30 years and over.We continued to address this disparity during the year through a focused early talent strategy,including an increase in our FY23 Graduate Program intake,and identifying younger talent through a continued focus on internships,traineeships,and our National Apprenticeship Program.The increase in workforce mobility experienced nationally over the past 18 month