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Home / Business / Companies / Telecommunications

Spark NZ wins Deloitte Top 200 Sustainability Leadership Award

By Tim McCready
NZ Herald·
5 Dec, 2024 03:59 PM9 mins to read

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Spark NZ won the Snowflake Sustainability Leadership award. Video / NZME

Spark NZ’s commitment to sustainability has solidified its role as a leader in environmental and social responsibility within the telecommunications sector.

Deloitte Top 200 sustainability judge Katie Beith praises Spark’s journey, saying it has demonstrated exemplary sustainability credentials. “Since 2020, Spark has been implementing a comprehensive three-pillar strategy, fully integrated into its day-to-day operations and across the entire footprint of the company.”

This approach has seen Spark awarded the 2024 Deloitte Top 200 Sustainability Leadership award, recognising its exemplary governance, accountability and long-term strategic approach to integrating sustainability across its operations.

Leela Ashford, Spark’s corporate relations and sustainability director, says: “We think of embedding sustainability in two ways — through a robust governance structure and by operationalising our strategy into the business.”

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Leela Ashford.
Leela Ashford.

This includes oversight through its board, leadership squad and several steering committees that focus on material topics. “We then have three cross-functional squads that bring together a diverse group of people, perspectives, and skillsets from across the business to drive our work across emissions reduction, supply chain and human rights, and governance.”

Electricity accounts for more than 80% of Spark’s Scope 1 and Scope 2 emissions, and it has recognised that its biggest opportunity to achieve its science-based emissions reduction target is to decouple business growth from emissions growth by investing in renewables.

In May, Spark entered into a 10-year power purchase agreement with Genesis Energy. This will see it take 100% of the energy generated by Genesis’ first solar farm in Lauriston, Canterbury, from January 2025 — accounting for around 60% of Spark’s electricity needs. The remaining 40% will continue to be sourced from Genesis via the grid as it is today.

“This will continue to be Spark’s focus in the years ahead, using its electricity procurement to underpin new renewable developments, thus enabling it to meet its target in a way that also supports New Zealand’s broader decarbonisation,” says Ashford.

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Spark is also critically aware that New Zealand has an unacceptably wide digital divide, with cost, accessibility, lack of skills or a lack of trust being the primary barriers for those who are excluded.

Both Spark and the Spark Foundation are focused on digital equity, investing in increasing Māori and Pasifika participation in the technology sector, continuing to support low-income households to participate in the digital world, and increasing the accessibility of its products and services.

Through Spark Foundation’s not-for-profit broadband service, Skinny Jump, it supports over 32,000 homes across New Zealand.

Ashford says: “Digital equity is critical to a just transition and at the heart of our sustainability approach.”

This focus on digital inclusion extends to robust cybersecurity, privacy and data ethics practices.

The judges were also impressed with the extent of Spark’s sustainability impact beyond its own internal goals.

“Spark goes beyond its own sustainability goals, actively driving New Zealand’s progress on the agenda. This is reflected in the different leadership positions it has taken to enable access to technology and showcase how it can be used to drive sustainable practices,” says Beith.

Spark’s approach reflects a commitment to addressing the significant challenges that climate change will bring to New Zealand. It recognises the need for a system-wide change across the economy to mitigate these impacts and adapt to a warmer planet.

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At the heart of its strategy is the understanding that New Zealand cannot achieve the scale of this change without addressing its long-term productivity challenges and that technology will be essential in enabling the transformation.

This is exemplified through Spark’s thought leadership, public policy approaches and its role as a founding member of the Climate Leaders coalition — a chief executive-led community of almost 100 organisations driving the response to climate change through collective, transparent and meaningful action. Spark chief executive Jolie Hodson has been the convenor of the coalition for the past three years.

Ashford says Spark knows technology has a critical role to play in helping New Zealand transition to a high-productivity, low-carbon future, and its approach to sustainability aims to maximise opportunities as well as manage risks.

“We see it as our responsibility to advocate for the integration of technology into our country’s climate change responses and to invest in the technologies and digital infrastructure that will underpin productivity and sustainability improvements across the economy and within New Zealand businesses.”

  • The Sustainability Leadership Award is sponsored by Snowflake.

Finalist: Oceania Healthcare

Oceania Healthcare, a leader in New Zealand’s retirement living and aged care sector, has been recognised as a finalist for the Deloitte Top 200 Sustainability Leadership award for its dedication to building sustainable, community-centred villages that put environmental responsibility and resident wellbeing at the forefront.

“By fostering environmental stewardship and social connection, Oceania is leading responsibly, supporting its long-term goals, and making a positive impact across New Zealand’s communities,” says Beith.

Since 2019, Oceania has measured its Scope 1 and 2 emissions, along with certain Scope 3 categories. In FY2023, it completed a detailed assessment of all material Scope 3 emissions sources, using FY2022 as a baseline.

This assessment identified that emissions from capital goods — such as upfront carbon from its developments and emissions associated with our refurbishments — are its most material emissions source. To address these, Oceania has set a short-term science-based target, verified by the Science Based Target initiative (SBTi) in FY2024.

Head of sustainability at Oceania, Stephanie Spicer, says sustainability is a key consideration in Oceania’s decisions around new developments and refurbishments.

“We choose locations where we can add value to the local community, and climate resilience is a key part of our due diligence process.

“Our designs incorporate energy-efficient systems and improve indoor environmental quality, and we have construction waste diversion targets in place during the build process.”

Oceania’s focus on sustainability is embedded in its design and construction practices, with all new developments designed to meet the New Zealand Green Building Council’s certification, such as Homestar, ensuring warmer, healthier living environments for residents and improved workspaces for employees.

The judges recognise Oceania’s Sustainability Linked Loan as being a catalyst for meaningful change. It includes ambitious environmental and social key performance indicators (KPIs) and has driven Oceania to implement emissions reduction projects, divert construction waste away from landfills and enhance care resident wellbeing.

“As a people-centric organisation, the care resident wellbeing KPI was crucial to align with our commitment of providing exceptional care and improving the quality of life for our residents,” says Spicer.

Stephanie Spicer.
Stephanie Spicer.

Governance plays a critical role in Oceania’s sustainability initiatives.

The company has established a governance framework that ensures both internal and external accountability.

“We have a board sustainability committee and a management sustainability steering group chaired by our CFO,” says Spicer. These oversee Oceania’s sustainability initiatives, set targets, and ensure transparency in its reporting, helping to integrate sustainability into its strategic decisions and daily operations.

To embed a culture of sustainability, Oceania provides training and workshops focused on sustainability topics and has introduced an annual employee sustainability award.

To drive accountability, the company has linked sustainability performance metrics to senior management remuneration.

“By fostering a culture of sustainability, we ensure that our people are not only aware of our commitments but are also active participants in achieving them,” says Spicer.

Finalist: Precinct Properties

Precinct Properties, a leader in New Zealand’s real estate sector, is setting the benchmark for sustainable urban development.

An owner, developer and manager of real estate in New Zealand’s largest city centres, Precinct is a finalist for the Deloitte Top 200 Sustainability Leadership award and is noted for its strong commitment to environmental, social, and governance (ESG) principles.

“Precinct is dedicated to redefining urban development with a focus on sustainable, community-centric growth that enhances urban living,” Beith says.

“Its robust $3.3 billion portfolio sets a strong example of how cities can grow vibrantly with sustainability, social value and economic growth at their core.”

As the only New Zealand company to sign the World Green Building Council’s net zero carbon buildings commitment, Precinct is leading the charge in addressing climate change in the built environment.

“This commitment underscores our dedication to addressing and managing our built environment impacts on climate change,” says Lisa Hinde, head of sustainability at Precinct.

Lisa Hinde.
Lisa Hinde.

“Through this, Precinct can leverage the collective expertise of an industry that has contributed and built this framework and position ourselves to deliver meaningful progress toward net zero.”

Precinct’s sustainability programme is deeply embedded throughout the organisation, underpinned by a robust governance framework.

A dedicated ESG committee at board level, along with four sub-committees focused on specific pillars of the ESG strategy, ensures sustainability is integrated across all business levels.

“Our sustainability programme is supported by transparent targets and objectives, both internally and externally,” says Hinde. “With operational control over our development pipeline and investment portfolio, we maintain strong influence in upholding these commitments across our portfolio and supply chain.”

A key focus of Precinct’s sustainability strategy is reducing Scope 3 emissions, particularly upfront embodied carbon — emissions generated before a building becomes operational, mainly through the production, transportation and construction of materials.

“Embodied carbon is a substantial contributor to our overall emissions and a challenging aspect for the real estate sector to manage,” says Hinde. “To address this, we prioritise adaptive reuse projects, retaining as much of a building’s original structure as possible to minimise demolition and reconstruction.”

Precinct is also taking steps to address emissions from carbon-intensive materials like steel and concrete.

“Our current embodied carbon research study is examining global benchmarks and comparing them to local suppliers, aiming to assess their capacity to meet or exceed these standards,” Hinde says.

These efforts not only drive improvement but also incentivise the use of local suppliers, creating industry-wide benefits.

Precinct’s sustainability efforts extend beyond its own operations, actively engaging clients and tenants to create shared value.

“We recognise the many benefits of progressing toward mutual outcomes together — not only for the environment but for building lasting partnerships,” says Hinde. This approach includes initiatives such as quarterly occupier reporting and the promotion of social values such as diversity, inclusion and community engagement.

One standout initiative is Precinct’s joint venture with Ngāti Whātua Ōrākei, a partnership that embeds cultural representation and social value into developments.

This includes the Te Tōangaroa project with capital partner PAG and the upcoming Downtown Carpark redevelopment, which will involve cultural representation, scholarships and social procurement initiatives.

“Across our portfolio, we have the potential to influence other businesses,” says Hinde. “We’re excited about the opportunity to create real change within the procurement space.”

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