Lyttelton Port: Putting nature first

Lyttelton Port Company (LPC) has taken a bold step as the first New Zealand company to sign up to publicly report on its nature-related impacts and dependencies. 

Chief Executive Graeme Sumner says LPC’s board and management recognised early on there was a need to focus on more than greenhouse gas emissions by identifying the areas where LPC makes a specific impact on nature – and how it depends on nature. 

By joining the Taskforce for Nature-related Financial Disclosures (TNFD), LPC is assessing the impacts of the Port activities on four drivers of nature change – land/fresh water ocean use change, resource use, pollution, and invasive species. 

Sumner says it is essential to identify how your business is dependent on nature and the risks associated with nature loss. 

“Assessments should be specific to your organisation and the environment the business operates within. Strong engagement with external stakeholders will also be crucial and boards should look for evidence that the methods are robust and locally relevant to ensure credibility.”

In addressing nature risks and opportunities, Sumner says LPC sees the TNFD initiative as a way to build on the positive actions the company already undertakes and apply a standardised framework to resourcing business risk over the long term. Although in the short term, he says, the bias is probably more towards community relationships and maintaining its social licence.

“In the medium term, we expect current global trends and markets to incorporate emissions and TNFD ratings. This puts LPC in an advanced position to respond with efforts towards turning the dial on biodiversity and joining with other like-minded operators around the world,” he says.

However, Sumner says companies need to be careful about what you are committing to, and promising.

“One of the first things auditors will advise you to consider is how specific should your commitments be. They are naturally wary of the liability that might arise if you make commitments that you subsequently don’t honour. 

“We have seen a lot of challenges to corporations in the climate change realm already. Boards, therefore, need to ensure authenticity in what their organisations are committing to, balanced against any risks of overpromising.”

As the first TNFD early adopter in New Zealand, and one of 320 organisations worldwide, LPC has been guided in the process by Nature Positive, a consultancy based in Dunedin. 

“There are many businesses in New Zealand interested in LPC’s approach to nature disclosures and our environment and sustainability team have been open to sharing their approach,” Sumner says.

LPC’s journey to becoming an early adopter began with the Canterbury earthquakes in 2010 and 2011, which had a profound effect on Lyttelton Port. 

More than $850 million has been spent on its rebuild and the company has consents to reclaim up to 34 hectares of additional land. Port infrastructure, including the areas of reclamation, represents a permanent loss of habitat, however it also presents opportunities for restoration. 

“It was a chance to start afresh,” Sumner says. “The company was keen to establish productive relationships with iwi and other Whakaraupō/Lyttelton Harbour stakeholders. 

“This was documented in the Port Recovery Plan, which included a commitment to the implementation of Whaka-Ora, the catchment management plan for a healthy harbour.”  

LPC committed to a biodiversity positive ambition in 2019, a natural progression because it reflected the desires of the board, management and the wider community to continue to improve environmental performance. 

“The development of the frameworks for businesses (the TNFD and the Science-based Target Network) have assisted LPC’s journey towards a standardised approach to reporting impacts and dependencies on nature,” Sumner says.

The board maintains direct responsibility and oversight of the top strategic risks faced by LPC, including those related to nature. While risks are actively managed in the various business units across LPC, the board has delegated responsibility to the Audit and Risk Committee for oversight of these risks and communications to the board.

Dr Crystal Lenky leads an internal environmental and sustainability team, which has a strong background in biological sciences and Geographical Information Systems (GIS) expertise. 

“The GIS expertise of Kirsty Brennan, our Environmental and Sustainability Business Partner, has been instrumental in LPC being able to spatially map our impacts,” says Sumner. “The team, in turn, accesses external advice where necessary and they have developed a long-term sustainability plan which is reviewed by the board each year.”

Sumner, who joined LPC in September 2023, is a former chair of NCI (Australia), Transfield WorleyParsons (New Zealand) and Inser (Chile). His other board roles have included New Zealand SOEs, government entities and professional services organisations. 

“The nice thing about joining LPC was that I haven’t had to change my approach at all. We have very capable leaders in this area, so they have led, and I have very much been the support partner.”

He says Chapter Zero is a valuable initiative that ensures directors remain current and forward thinking on the issues pertaining to climate change. “There’s a lot of emphasis on recognising the opportunities, as well as the threats, which is important.”