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08/03/2020 - General News

Z Energy comment on oil commodity prices and the impact of Covid-19

Z, like many others, is following the significant movements in the oil market. It is clear that the impact of Covid-19 is escalating when it comes to global commodity markets, and that this is now likely being compounded by geopolitical machinations in relation to oil-producing states.

Before Z makes any further detailed comment, we need to understand how the markets will settle.  

What we can say is that we will be reacting prudently, but sufficiently promptly, in relation to the price of crude, as passing through any wild price swings does not benefit anyone.

Z pricing response to Covid-19 to date

All Z service stations across the country have seen a continuous reduction in prices over the past recent weeks, which reflects all of the factors that go into our pricing, including but not limited to the price of crude, the New Zealand dollar and the dominant hyper local competition factors.

27/02/2020 - General News

Z Energy response to Government’s Fuel Market Bill

Z Energy (NZX:ZEL) welcomes today’s announcement that the Government is acting quickly on the Commerce Commission’s recommendations following the conclusion of the retail fuel market study in December last year.

Z CEO Mike Bennetts says that the details of the fuel industry bill that have been released today are consistent with Z’s expectations and commentary in December 2019, and that there is benefit to the industry in both the proposed changes and in the certainty of the Bill passing into legislation mid-year.


“As we have stated for some time, we believe that there are competition and consumer benefits to measures such as a Terminal Gate Pricing regime and the display of Premium fuel prices on all price boards. We look forward to working with stakeholders as required in the coming months to ensure a robust set of regulations and piece of legislation. A speedy resolution enables us to move forward and avoids regulatory overhang for all participants,” says Mike.

Z was disappointed to learn that participants will have 18 months once the legislation comes in to display Premium prices when this is something that could be done immediately.

“We find it surprising that it would take 18 months to bring about price transparency. This market study has ultimately been about ensuring positive consumer outcomes, so we believe it is essential that all consumers are able to compare all prices across all sites as quickly as possible. As per our commitment to Minister Faafoi in response to his letter in December last year, we will continue to our work rolling out Premium prices across the Z and Caltex networks by mid-year,” Mike says.


Media enquiries: Victoria Crockford 
Investor enquiries: Matt Hardwick 

19/02/2020 - Sustainability news

What is the carbon cost of refuelling your vehicle?

For the better part of a decade, Z has worked on reducing its environmental impact and helping others reduce theirs.

Now, with the launch of Carbon Count, any Z app user can offset up to 100 percent of their fuel purchases at a cost of around $4.30 for a 50 litre tank of petrol. (Prices vary depending on whether you use petrol or diesel.)

Carbon Count calculates your carbon footprint in real time, using the industry standard value for carbon, and you can check your total as often as you like. You can choose to pay each time you fill up, once a month, or whenever. Motorists who make purchases at the till or via another retailer can still use Carbon Count to offset their fuel, by downloading Z App, then entering payment details and number of litres purchased.

“Many people say they want to do something about climate change, but they don’t know what to do – Carbon Count is a response to that,” says Z’s Chief Innovation Officer, Scott Bishop.

All the money goes to supporting Permanent Forests New Zealand, which aggregates, markets, and sells carbon credits on behalf of forest owners registered under the Government’s Permanent Forest Sink Initiative - all fully auditable and traceable.

Trees act as carbon sinks, consuming carbon dioxide and storing it in the leaves and roots. Permanent forestry land is locked up and protected for a minimum of 50 years and the sole income derived from it is carbon offsets. Once the units are bought, they are taken out of circulation, meaning that they cannot be used for compliance with the Emissions Trading Scheme.

This is important because for each carbon offset, there is one less metric tonne of carbon in the atmosphere than there otherwise would have been. 

The fuel that Z sells each year releases around 9 million tonnes of carbon into the atmosphere, which is about 9 percent of New Zealand’s total emissions. The company has recognised this impact since its founding in 2010 and has put finding solutions at the heart of the business. One step they have taken is to work with Permanent Forests New Zealand to protect 4,000 hectares of permanent forest with 93,000 tonnes of carbon capture capability since 2017. This is the largest single voluntary contribution to forest carbon sinks in New Zealand to date.

Carbon Count is a way of offering customers the same ability to take action, while sending the message that everybody needs to use less fuel and to use it responsibly when they do.

“We set the sustainability standards eight years ago around reducing our impact and enabling others to reduce theirs,” explains Z’s Head of Sustainability and Community, Gerri Ward. “Z developed a 5-year program and worked out how to do more, better.”

With 2,500 retail staff and a large network of service stations, Z can make a substantive difference towards New Zealand’s goal of net zero emissions by 2050. The company has embraced initiatives such as coffee cups that can be composted on the forecourt; developed the country’s first biodiesel plant using local, renewable feedstock; and has worked with the Energy Efficiency Conservation Authority on driving efficiency programs for commercial drivers.

“We are lucky to have visibility and impact and we need to make the most of both on behalf of Kiwis,” says Gerri. “We want to be able to provide the easiest way for people to reduce the impact of their fuel use. With everything transformational, you have to make the starting point easy for people.”

https://z.co.nz/carbon-count

19/02/2020 - Sustainability news

Why carbon sinks are important for urgent action on climate change

As humans gobble through the earth’s resources, we release carbon dioxide into the atmosphere, warming the earth and harming our environment at a rate that is unprecedented and unsustainable. This is no longer hypothetical -- it’s happening. 

An effective way of consuming excess carbon is through carbon sinks, which store carbon for indefinite periods of time. Examples are kelp farms and forests. Ocean and land sinks absorb around half of the CO2 emissions produced by human activities; as polluters look for ways to reduce the impact of their actions, carbon sinks have become more widely understood.

The government estimates that in 2017 New Zealand forests sequestered – or ‘sucked up’– 24 million tonnes of carbon from the atmosphere, offsetting about a third of the country’s total emissions. There is opportunity for forests to work even harder. Historically, New Zealand was covered in trees; we have lost two thirds of our natural tree coverage to human settlement, when land was cleared for pasture and towns. 

Carbon offsetting through permanent forestry has multiple benefits – trees don’t just suck up carbon, they can improve soil quality, prevent erosion and promote biodiversity, creating habitats for animals. This is especially true in the case of natives. 

“Land use and land use change is a huge part of the climate change issue that people often forget about,” says Ollie Belton of Permanent Forests New Zealand, which links companies like Z Energy with landowners who have carbon credits to sell. Permanent Forests New Zealand manages about 10,000 hectares of permanent forest throughout the country. 

“It’s cool and it’s growing,” says Ollie of carbon offsetting through forestry. “People can see that there’s an opportunity to do this instead of clearing land for farming.”

Z is one of the biggest players in the voluntary carbon offsetting space. They have bought into 20 forest schemes, with about half being pure native forests and half being a mixture of native and exotic trees, including Douglas fir, eucalyptus and Pinus radiata. 

There are two ways trees can be used to offset carbon -- through plantation forestry or permanent forestry. Plantation forestry is usually a monoculture (most often the fast-growing Pinus radiata), and while the trees provide habitat for kiwi and falcons and help stabilise the soil, after 25 to 30 years they are harvested, and all that good work is undone. 

With permanent forestry, the land is locked up and protected for a minimum of 50 years and the sole income derived from it is carbon offsets. Once those units are bought, they are taken out of circulation, meaning that they cannot be used for compliance, says Ollie. 

The government’s Emissions Trading Scheme (ETS) is the main way New Zealand meets its obligations to reduce emissions. It puts a price on emissions and provides a financial incentive for businesses to reduce their impact, through cutting emissions or offsetting them. To offset them, a business must buy emission units, with each unit representing one metric tonne of carbon dioxide. 

Z Energy’s participation in Permanent Forests NZ is the largest single voluntary purchase of units from permanent forest sinks in New Zealand to date. “We are very intentionally going above and beyond our ETS obligation,” says Gerri Ward, Head of Community and Sustainability at Z.

“It is all about impact. I’m really conscious that, because of our size, the way we do business and our values that we have significant impact. Supporting permanent forests is about that impact being underpinned by integrity and validity.” 

https://z.co.nz/carbon-count

 

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