Working for customers
enhancing their journeys
As Auckland Airport continues to grow New Zealand’s flight connections to the world, we are striving to deliver a world-class experience for every customer who passes through our doors. From improving processes for travellers, to online shopping, we are investing significant time and resources to deliver improvements across every aspect of the customer journey to ensure we meet the expectations of travellers and deliver a great experience.
During the 2019 financial year, we achieved a significant milestone: the completion of our expanded departures area in the International Terminal – a 36,000m2 upgrade to the aviation security screening area and retail precinct, providing a sophisticated new retail high street and a modern food and beverage area.
The development features a wide range of customer experience improvements, including:
- upgraded and oversized bathroom facilities, a dedicated ‘recompose area’ post security for customers to repack and get organised, numerous new charging points to power devices, as well as two hours free Wi-Fi for all visitors and extended hours for members of our loyalty programme, Strata Club;
- contemporary Maori design and illustration by award-winning artist Dr Johnson Witihera, featured in digital panels through to carved details on columns, doorways and pillars;
- 14 new food and beverage outlets offering everything from Vietnamese, to award-winning Italian and authentic Chinese dumplings, as well as popular New Zealand high-street brands such as Al Brown – Best Ugly Bagels, Mexico and Better Burger; and
- in total, 32 new retail concepts opened in the financial year 2019, showcasing the best of New Zealand including Icebreaker merino clothing to Manuka honey, Whittaker’s Chocolate and an All Blacks Adidas outlet. Luxury international brands include Kate Spade, Weekend Max Mara and Michael Kors – the first time these stores have opened in New Zealand.
The international departures development, which also features sculptured godwits and kahawai fish created by Weta Workshop, has been recognised in several awards, including from the NZ Institute of Architects, the NZ Property Council and the Moodie Davitt Report Airport Food & Beverage Awards, winning the F&B Offer of the Year Award in June 2019.
Auckland Airport looks forward to embarking upon another significant expansion of the International Terminal in the year 2020 – with the 30,000m2 upgrade of the arrivals area. The project’s physical works are currently scheduled to begin in January 2020, featuring a new arrivals hall and expanded Biosecurity New Zealand and New Zealand Customs Service processing and queue areas to improve peak-time capacity.
It was another record year for traveller numbers at both our International and Domestic terminals. Over the 2019 financial year, an average of 31,555 travellers arrived or departed each day from the International Terminal, up 2.2% on the previous year. At the Domestic Terminal, an average of 26,284 travellers arrived or departed each day, up 3.6% year on year.
The response from our customers to the new expanded environment has been very positive with sustained overall customer satisfaction scores ranking above 4 out of 5 for both terminals in all four quarters of the year, a 12-year high for Auckland Airport. During the third quarter of the financial year, following the completion of improvements to retail, food and beverage and dwell spaces in departures, our customer satisfaction rating at the International Terminal improved to its highest point in 12 years - 4.36 out of 5. This placed Auckland Airport third out of a comparative international peer group of 24 airports, selected on the basis of size, passenger volumes, routes and ownership structure by Airport Service Quality (ASQ), a global benchmarking programme for airport customer service.
Beyond the expansion of our International Terminal, Auckland Airport has continued to focus on additional operational and customer service improvements throughout the precinct.
In the financial year 2019, Auckland Airport’s Service Delivery team carried out research and embarked upon a customer service transformation to ensure we provide a relaxing and enjoyable experience for our customers. We have developed a customer service promise and guiding principles to enhance service levels throughout the customer journey. Over the coming months, as we train our staff on the new principles and service standards, we are confident that our customers will see the benefits when travelling through.
As we shift into a new phase of significant construction works to create an airport of the future, we are also building a strong, collaborative community of contractors and stakeholders to ensure we keep our customers safe.
In the financial year 2019, we established a Common User Safety Protocol (CUSP) with many of our partners (airlines, border agencies, security partners and ground handlers). The CUSP, signed by our CEO and other senior executives, is a joint commitment by businesses operating around the airport precinct to provide the safest working environment possible in common-use areas in and around the terminals. We also reallocated staff resourcing to high-accident areas, helping to reduce our passenger injury rate by 41.3%.
Other customer improvements included:
- 4,000 new braked baggage trolleys across Domestic and International terminals. The new trolleys are an upgrade in safety, design and functionality being 10kg lighter and able to handle loads up to 300kg;
- four additional AviRamps purchased, providing travelling guests with a safer, more comfortable and faster disembarkation experience;
- around 70% of customers now using self-service kiosks to start their journey. In the financial year 2019, we doubled the number of self-service kiosks to 120, reducing average check-in and bag drop times from 20 minutes to 8.5 minutes; and
- ongoing works at the Domestic Terminal to provide additional space for aviation security screening, a reconfiguration of the food court area as, well as a new retail offering.
Strata Lounge at the International Terminal continues to be a popular choice for the travelling public, with 230,189 guests in the 2019 financial year, up 49% on the previous year. We are looking to introduce a Strata Lounge into the Domestic Terminal in the 2020 financial year, with construction already under way.
Our online community is going from strength to strength, as we have continued to invest in our digital channels to provide useful information, convenient retail experiences and to recognise and reward regular travellers. Highlights for 2019 included:
- we outperformed our target for new Strata Club memberships, increasing 87% during the period; and
- The Auckland Airport app had a 9.9% increase in travellers using the app, and an increase of 69.2% in parking bookings via the app, while new features were added, such as real-time queue wait time information.
Auckland Airport is proud to have been recognised as one of Colmar Brunton’s top 10 most trusted New Zealand companies for the third year running. Being a reputable New Zealand business is important to us and we are proud to be trusted by customers and our stakeholders.
Airport store of the future
As the world becomes increasingly digital, Auckland Airport has been working hard behind the scenes to develop innovative online shopping platforms for our customers.
Auckland Airport was one of the first airports in the world to launch an online multi-retailer shopping marketplace called The Mall, enabling international travellers to shop at multiple retailers via a single online check out, with a click and collect service.
In June 2019, we marked the one-year anniversary of The Mall, which now offers over 4,500 duty and tax-free products across 10 categories, including over 375 leading New Zealand and international brands. The platform has been well received by international travellers, with orders growing 20% month on month throughout the 2019 period and earning a customer satisfaction score of 89%.
In February 2019, we also launched a WeChat mini-store specifically for Chinese customers travelling through Auckland Airport. Customers now have available to them more than 700 items from across eight different categories within the WeChat app and select whether they would like to collect their order as they arrive or depart from Auckland Airport.
AIAL & Biosecurity NZ
Forging stronger relationships to drive customer experience improvements
Greater collaboration between Auckland Airport and Biosecurity New Zealand has continued to deliver an improved experience for customers in the financial year 2019, resulting in faster processing times for travellers.
Over the past three years, our two organisations have worked closely together to enhance biosecurity screening and provide a more seamless experience for travellers during busy periods, particularly during the northern winter/summer peak. By sharing data unique to each organisation, the partnership has been able to simulate and test scenarios involving high traveller numbers, allowing for improved future resource planning.
Auckland Airport and Biosecurity New Zealand also worked together to simplify the way travellers move through biosecurity screening, reducing the number of lanes from three to two and removing the option for people to move through biosecurity differently, depending on their nationality.
These changes resulted in a more streamlined customer journey through the international arrivals area during 2018 and 2019 and reduced overall processing times by 10.5%, while preserving border security standards. We are proud of these gains and it demonstrates what a close working relationship can achieve when there is a common goal. We look forward to working with Biosecurity New Zealand in the year ahead, as we begin our 30,000m2 upgrade of the arrivals hall, including an expansion of Biosecurity New Zealand’s area.
Consistent, reliable journeys
Auckland Airport is the guardian of one of New Zealand’s most important transport hubs and we are working hard to build for the future, delivering long-term improvements to the transport network for our customers.
In the 2019 financial year, we completed a number of significant projects and progressed others through to design and construction, greatly improving access and travel times for people travelling to, from and around the airport.
In November 2018, we completed the new Nixon Road extension – a 920 metre stretch of road providing a direct link from north (SH20A) to south (SH20B), enabling motorists to bypass the busy main intersection at George Bolt Memorial Drive and Tom Pearce Drive. In the six months to June 2019, the connection helped to remove 50,000 heavy vehicle transit movements from the core airport roading network, helping to improve flows and travel times for terminal-bound traffic. Currently, of all vehicles transiting through the precinct, 27% of them are heavy vehicles using Nixon Road.
Auckland Airport built over 2,000 new car parks in the 2019 financial year to meet customer demand, including 500 valet storage spaces (open in July 2019) and a new system to guide customers to available spaces. At the same time, we provisioned for 20 electric vehicle charging stations, to complement the existing electric charging stations we have at the Domestic Terminal and at our valet storage area.
During the peak 2018/2019 summer period, we introduced a range of initiatives to ensure a well-functioning transport network. These included a new ‘drop and ride’ service away from terminal buildings to reduce forecourt traffic and a travel reward promotion to encourage airport precinct workers to use public transport.
In the year ahead, we will continue our programme of work to create a resilient transport network, ensuring consistent, reliable journeys for people travelling to, from and around Auckland Airport.
In June 2019, a contract was awarded for the Northern Network project – our largest roading infrastructure upgrade since the airport was first built. The project will deliver a range of benefits, including:
- widening George Bolt Memorial Drive to add high-occupancy vehicle lanes;
- the construction of Altitude Drive, which will provide additional roading capacity, allowing terminal bound traffic greater journey time reliability;
- a new one-way loop road for traffic exiting the International Terminal;
- enhanced pedestrian and shared pathway links along George Bolt Memorial Drive connecting to the wider airport precinct; and
- upgrading and installing new underground utilities to create a resilient, future-proofed network able to support the wider terminal and runway developments.
Auckland Airport is continuing to work closely with New Zealand Transport Agency (NZTA) and Auckland Transport (AT) to coordinate network operations and improve access to and from the airport, benefitting workers, travellers and freight movements.
In collaboration with NZTA and AT, the first stage of the Southwest Gateway programme will begin in late 2019 and is due to be completed in 2021 with the following benefits:
- A new rapid transit link between Auckland Airport and Puhinui Station, including widening SH20B to provide two new priority lanes for bus and high-occupancy vehicles;
- A new bus and rail interchange at Puhinui Station, allowing quick travel to and from the airport;
- Fast and convenient 10-minute bus services to run between Puhinui Station interchange and the Airport; and
- A shared-use path providing improved walking and cycling opportunities along SH20B.
Plans are also well advanced for a new six-storey car park to be built at the International Terminal, with construction expected to begin in early 2021. The development will include 3,000 car parks, including rental bays, electric vehicle charging stations, valet products and self-parking facilities and is expected to be complete in 2023. Construction of a new southwest Park and Ride facility off SH20B is also expected to begin in 2020, with stage 1 of the project providing circa 2,000 new car parks.
A new six storey car park is to be built at the International Terminal, featuring 3,000 car parks and rental bays, valet products and self-parking facilities. Construction is expected to begin in early 2021.
In December 2018, following a public hearing process, Auckland Council released its recommendations on the notices of requirement to enable the construction and operation of the northern runway. Auckland Airport largely accepted these recommendations, however, a number of appeals have since been lodged with the Environment Court. Resolution of these appeals will be a significant milestone, allowing us to progress the next phase of detailed planning and design for the second runway.
In the meantime, we continue our work on design and construction planning. We are in deep consultation with our airline customers regarding the timing.
The financial year 2019 also marked the beginning of our largest airfield expansion since the 1970s and the next phase of our infrastructure development programme.
Over the next three years, more than 250,000m2 of land or about 30 rugby fields will be converted into new airfield at the western end of the airport, delivering an additional taxiway, extension of an existing taxiway and development of six stands for the parking and servicing of aircraft.
The project will add more than 18% surface area to the airfield pavement, improving aircraft movement and eventually linking to the future second runway.
Building in a digital world
Leading the way in infrastructure planning and design
Over the next two decades, Auckland Airport will deliver an infrastructure development programme that will transform our precinct and upgrade a number of key legacy assets, including the International and Domestic terminals, expansion of our airfield and substantial changes to the roading network.
To manage the scale and complexity of the work ahead, we have embarked on a digital transformation journey to enhance our building programme and the way we manage our assets over their lifecycles, from early design through to end of life.
Over the past two years, Auckland Airport has trialled and adopted integrated Building Information Modeling (BIM) and Geographical Information Systems (GIS) software – leading-edge design technologies that have allowed us to start creating digital 3D replicas of our airport assets.
Blending geospatial and engineering, architecture and construction data, the technology enables designers to work together throughout every phase of a project. It provides a complete picture of an asset, from its nuts and bolts to its steel framework, helping project teams to streamline processes and resolve complex construction challenges prior to building works beginning.
We initially trialled the technology for the 36,000m2 redevelopment of the airside departure and dwell area of the International Terminal, and due to its success, we adopted the technology in full for the development of new gates located at Pier B at the northern end of the airfield. The initial challenge was to map the structure of the existing International Terminal, which involved the collation of existing 3D models, along with ground-based 3D laser scanning, to create a sophisticated replica. Designers and builders also contributed, modelling construction elements in detail, allowing the team involved to collaborate and analyse any issues in a digital world, without even having to leave their offices.
With more than 200 projects planned over the next two decades, Auckland Airport has also used the technology to create a complex model of future construction projects at the airport precinct, called the ‘Capital Works Master Schedule’. The model is used to visualise complex sets of data in an easily understood manner. By linking 3D models to a time schedule and project costings, the team is now better able to assess workflow planning, logistics and other aspects of the construction process.
Supporting sustainable growth and high-value tourism
Tourism is one of New Zealand’s most important industries, and for good reason. The sector employs at least 8% of New Zealand’s workforce, and directly contributes $15.9 billion to Gross Domestic Product – making it New Zealand’s most valuable export earner.
Auckland Airport is committed to ensuring our tourism industry continues to flourish. We are working to support our tourism partners and airlines to attract high-value visitors from a diverse range of markets. As New Zealand’s gateway, we are also playing a leading role in connecting New Zealand to the world by developing a strong, sustainable and thriving aeronautical network.
Driving demand in offshore markets
In the financial year 2019, Auckland Airport continued to work alongside our partners investing in emerging and more established markets to drive growth and support airlines to operate sustainable air routes. The aviation market remains dynamic and we are focused on building a diverse network to build resilience.
In the China market, our focus was on supporting airline partners with e-commerce, travel trade distribution and public relations activity, to attract higher-value independent Chinese travellers to New Zealand. In Australia, we continued to work alongside airline partners, Tourism New Zealand and regional tourism organisations, such as ATEED to encourage Australians to visit Auckland and the Central North Island all year round. In the United States, we focused our efforts on growing visitation from the eastern states of America. We recognise the potential of other promising markets, such as India, where we appointed a representative in the financial year 2019 to grow our interests there. We also continue to work with partners in South Korea, Taiwan and Indonesia to develop these markets.
Working for New Zealand
Auckland Airport continued to work closely with industry partners over the period, sharing insights and analysis to help inform decision-making. This included supporting the development of the Government’s tourism policy, as well as a new industry strategy for the Tourism Industry Association: ‘Tourism 2025 and Beyond’. In the 2019 financial year, we also extended our support of tourism product innovation through our partnership with Eat NZ, and we participated in the development of a new tourism management strategy for Auckland – ‘Destination AKL 2025’.
Unlocking new routes and capacity
Auckland Airport has experienced significant growth over the past four years, increasing from 19 airlines in 2015 to 29 airlines as at 30 June 2019. We welcomed announcements and capacity changes from a range of airlines over the 2019 financial year, including:
- the introduction of a new direct route from Auckland to Seoul by Air New Zealand that will add 105,000 seats and 4,855 tonnes of cargo per year, commencing in November 2019;
- new flights between Auckland and Vancouver to be operated by Air Canada from December 2019, adding 31,000 seats per year and 650 tonnes of cargo;
- the introduction of a third daily Auckland to Singapore flight from October 2018 by Air New Zealand / Singapore Airlines; and
- in November 2018, Air New Zealand commenced new direct routes from Auckland to Chicago and Auckland to Taipei.
These and a range of other flight changes across our airline partners resulted in 685,000 net additional seats per annum and an estimated 60,800 net tonnes of additional international cargo capacity in the financial year 2019.
While our outlook for the 2020 financial year remains solid, our strong trend of capacity growth has slowed in recent times due to airlines adjusting their business strategies, reducing capacity and softening demand for travel to New Zealand in some visitor source markets, such as Australia, China and Japan. Hong Kong Airlines and AirAsia discontinued their New Zealand services in the year to 30 June 2019 and, from October 2019, LATAM Airlines will reduce its Santiago (via Auckland) to Sydney flights, from a daily service to four times a week. This change will coincide with LATAM commencing non-stop Santiago to Sydney services.
In Focus: sustainable tourism growth
In the last year, over 21 million travellers passed through Auckland Airport – a number which is expected to double by 2044.
The growth in tourism numbers will provide enormous benefits to New Zealand economically but at the same time it will also create challenges from a sustainability perspective.
Auckland Airport believes the tourism industry needs to better understand and manage the industry’s impact, to ensure it can continue to successfully grow without undermining sustainability and to continue to hold its social license to operate amongst New Zealanders. Otherwise we risk losing the support of our local communities, impacting our environment and visitor experience.
Auckland Airport is playing a leading role in discussions around the future sustainability of the tourism industry, funding research that has proposed a new industry framework called the Sustainable Tourism Growth Monitor (STGM). The monitor suggests a broad framework for the tourism industry to measure itself on a range of factors, including infrastructure, congestion, the environment and community wellbeing.
We believe there is an opportunity for the industry to work together to extend this research to create a robust STGM for the future. We are committed to collaborating with government and members of the tourism industry in the 2020 year to build on this work.
Outstanding year for investment property
The 2019 financial year was a record year for Auckland Airport’s investment property business, which now owns and manages one of New Zealand’s largest investment-grade portfolios. Our rent roll has increased 10.9% to $100 million, the portfolio value now exceeds $1.7 billion and our weighted average lease term is sitting at 9.38 years – one of the longest in New Zealand’s listed property sector.
Growth continues to be underpinned by strong development activity. During the 2019 financial year, new development projects were completed for EBOS and DSV Logistics, while 13 hectares of land was prepared and added to our development-ready reserves. The quality of our delivery model has also been recognised in both the property and architectural sectors. In 2019, we were awarded the Property Council’s Property Team of the Year Award for urban planning at The Landing Business Park, the NZ Institute of Architects’ Commercial Award for the Rohlig Logistics development and the DSV development was awarded Excellence and Best in Category at the 2019 Property Council Industry Awards.
The development outlook remains strong. Currently, we have more than $515 million of pre-committed investment assets under construction, including the 85,000m2 office and warehouse complex for Foodstuffs, a new office and control centre for Airways Corporation, plus standalone developments for Thrifty, Europcar, and ASX-listed Bapcor. We have also maintained our speculative building programme, with 11,000m2 of new facilities under construction in Timberly Place.
Our investment programme also includes the expansion of our hotel portfolio. Construction of the 5-star Pullman Auckland Airport Hotel, located adjacent to the International Terminal, has commenced and is our second project in partnership with Tainui Group Holdings. This is expected to complete in 2022. A fourth hotel, comprising a 146-room mid-tier hotel located within the Quad Office Campus, is also under way and this is expected to complete in Q4 2020.
Auckland Airport already operates two hotels inside the precinct, the Novotel Tainui Auckland Airport Hotel and the ibis Budget Auckland Airport. When the Pullman and our fourth hotel are open, it will make Auckland Airport one of the largest hotel operators (by number of rooms) in New Zealand.
Our People: An employer of choice
Auckland Airport employs more than 730 full-time and contracted staff, and we are proud of our diverse workforce and our long-term commitment to their safety and wellbeing. Our workforce has grown by more than 40% over the last three years, and we are working hard to create an environment where people want to work, providing new opportunities to develop, support and empower them. As our workforce continues to grow to drive our infrastructure programme, we also recognise that work-life balance is good for our people and we are reshaping our practices to meet the needs of a flexible modern workplace.
In the year to 30 June 2019, we introduced a new Parental Leave Policy, offering parents greater financial support and flexibility through a wide range of key benefits.
These include two weeks’ extra paid leave for the partner of a primary caregiver and up to 10 days paid special leave for a mother during pregnancy, allowing her time to attend special appointments, such as scans and antenatal classes.
In addition to the existing government-funded paid parental leave, we are also offering primary caregivers 80% of their base salary for a period of 18 weeks during their parental leave, as well as personal coaching before they return to work to help make the transition back as smooth as possible. Another key priority has been to ensure we are operating within a fair and equitable remuneration framework.
Our talented workforce includes 45 ethnicities, and we believe the diversity of our people is one of our strengths. In the financial year 2019, we increased female representation in key positions across the business, including at Board level (38% to 50% increase year on year) and in our leadership team (12.5% to 22% increase year on year). Overall, the number of female senior managers across the business rose from 31% to 33%.
We also recognise and celebrate the uniqueness of different cultures through an annual calendar of events and festivals and through sponsorship of community events, such as ASB Polyfest. Our people also continue to learn and be inspired by other like-minded organisations through our ongoing association with the Global Women’s Champions for Change programme.
In the financial year 2019, we continued to focus on the safety and wellbeing of our employees, creating a workplace culture that supports people to stay well, both from a physical and mental health perspective.
In the 2019 financial year, we registered a decrease in the number of recordable injuries (lost time, medical treatment and restricted work) amongst our people, in comparison to the previous year. This resulted in a reduction in our employee recordable injury rate of 2.2%.
We are pleased that proactive attitudes and increased staff engagement relating to safety were reflected in the number of safety observations and hazards reported, increasing 6.8% year on year. Looking ahead, we will continue to support our staff through our digital wellbeing programme Tracksuit, which offers a range of health information and challenges to engage our people and ensure their wellbeing is front of mind.
Our People and Community: Mana whenua as kaitiaki
We understand that as a New Zealand business and employer, we must continue to develop our understanding and awareness of Tikanga Māori, particularly as we increase our engagement with local iwi and work to develop the diversity of our workforce. In 2019, members of our Leadership Team completed a specialised Indigenous Growth Cultural Capital programme for executives to enhance their understanding of mana whenua, cultural protocols and the importance of recognising indigenous employees. The wānanga was facilitated by Indigenous Growth Limited at Te Manukanuka o Hoturoa marae - the marae located on the Auckland Airport precinct.
We also embarked upon a design collaboration with iwi, as part of our departures project at the International Terminal. Te Ākitai Waiohua, Te Kawarau ā Maki and Makaurau Māori trust shared stories aligned with the overarching design narrative ‘a journey through New Zealand from the sea to the sky’. These stories inspired award-winning artist Dr Johnson Witehira to design contemporary manifestations that were interwoven through the fabric of the interior architecture in the form of routered relief, water-blasted etching and laser cut stainless steel inserts.
Across the business, we have been working closely with mana whenua in relation to many developments, including our airfield expansion and the Northern Network roading project.
Our Community: Ara jobs and skills hub
Established in 2015 Ara, our airport jobs and skills hub, is a joint initiative between Auckland Airport, the South Auckland community, government agencies, training providers and employers.
In 2019, Ara was awarded the NZ Airports Association Community Engagement Initiative of the Year. Judges commented it was a superb example of innovation, providing benefits to the community and the airport. Ara continues to connect South Auckland people with training and employment pathways. Highlights for 2019 include:
- 210 job placements made through the programme;
- 175 of these people reside in South Auckland;
- 784 people completed training opportunities offered through Ara;
- 696 participants engaged in training; and
- 77 students from five local South Auckland secondary-schools graduated from a year-long work experience programme working with businesses within the airport precinct, gaining valuable skills and earning credits to support their NCEA* studies.
* National Certificate of Educational Achievement
In 2019, Ara further strengthened its service relocating to new headquarters and establishing new partnerships. As Auckland Airport’s development programme continues to evolve, opportunities for job seekers have expanded beyond construction and building to include hospitality and logistics.
Our people and place: Being a good neighbour
Auckland Airport is committed to growing New Zealand’s success in travel, trade and tourism but our impact extends far beyond our financial contribution to the New Zealand economy. We continue to empower people through a range of community programmes in South Auckland and across wider Auckland. Highlights for the 2019 financial year include:
- Ten Year 13 school leavers were awarded Auckland Airport Education Scholarships, including a financial grant, laptops and a mentor from the airport team to help kick-start their university careers;
- Our people teamed up with staff and students from Tangaroa College to participate in our annual environmental coastline clean up adjacent to the airport’s runway on Manukau Harbour;
- We supported several local organisations and events through our sponsorship programme, including the Counties Manukau Life Education Trust, ASB Polyfest, the Auckland Arts Festival’s schools’ programme, Firefighters Sky Tower Stair Challenge (Leukaemia and Blood Cancer Foundation) and the Second Nature Charitable Trust. The total amount of these sponsorships (including leverage funding) was $140,250;
- We granted $30,000 to 30 community groups across Auckland. In addition, we redistributed $120,000 of donations made by generous travellers into charity globes in our terminals to 12 charities as part of our annual 12 Days of Christmas; and
- In 2019 we also granted $345,780.92 to the Auckland Airport Community Trust, which distributes these funds to residents, schools, community groups and organisations living within the Trust’s aircraft noise area.
Our Place: Environment
This year we continued to progress our targets for energy, carbon, water and waste minimisation across our operations. As a founding member of New Zealand Climate Leaders Coalition, we are particularly proud of the progress we have made towards our new, more ambitious carbon targets, set through the international Science Based Target Initiative (SBTi) in 2017. We are now one of only 568 companies globally that have set targets through the SBTi commensurate with global warming less than 2°C. We have continued to advance one of our key initiatives to install ground power units (GPUs), allowing arriving and departing aircraft to use low-carbon New Zealand grid power rather than more carbon-intensive jet fuel while at our gates. We are delighted that our energy efficiency and low-carbon initiatives have resulted in us being a finalist in Enviro-Mark Solution’s 2019 Excellence in Climate Action Awards.
Sustainability Governance: Non-financial disclosure
We have a proud history of the voluntary disclosure of our sustainability performance. In the past year, this has included the publication of our own Corporate Social Responsibility (CSR) Report aligned to the Global Reporting Initiative (GRI) Standard as well as:
- Carbon Disclosure Project (CDP): disclosure of progress on our carbon-reduction targets and benchmarking against international peers. In the latest assessment we moved upwards in our ranking to a B, signalling active management. This is higher than the general average of B- and the Oceania regional average of C;
- Dow Jones Sustainability Index: best-in-class benchmark for investors who have recognised that sustainable business practices are critical to generating long-term shareholder value. We were included in the index for the 7th year in a row;
- FTSE4Good: a series of ethical investment stock market indices launched in 2001 by the FTSE Group. We are proud to have been included in the index since 2008; and
- GRESB: an emerging index that assesses the Environmental, Social and Governance performance of real estate and infrastructure portfolios and assets worldwide. We have participated in the infrastructure assessment since 2017, including the new Public Disclosures Assessment in 2019.