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Council Controlled Organisation Direction and Oversight
Committee
09 September 2025
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Quarter four
performance reports 2024/2025 for Tātaki Auckland Unlimited, Watercare,
Eke Panuku and Port of Auckland Limited
File No.: CP2025/17459
Te take mō te
pūrongo
Purpose of the report
1. To receive a summary of, and comments on, Tātaki
Auckland Unlimited (TAU), Eke Panuku and Watercare fourth
quarter reports, for the period ending 30 June 2025.
2. To receive the Port of Auckland Limited (POAL) annual report, which
includes the full year results for the key performance indicators in the
2024-2025 Statement of Corporate Intent (SCI).
Whakarāpopototanga matua
Executive summary
3. Under Auckland
Council’s accountability framework, each substantive council-controlled
organisation (CCO) must provide a quarterly report. The reports for TAU,
Watercare and Eke Panuku for the fourth quarter of 2024/2025 are contained in
Attachments A to C and are measured against the Long-term Plan 2024-2034
and Statements of Intent 2024-2027 (SOIs). The
financial and non-financial results in the CCO quarter four reports remain
subject to audit, POAL results are from their audited 2024/2025 annual report.
4. This
is the last quarterly report from Eke Panuku, as the urban regeneration,
property management and marina management functions have now been transferred
and integrated into Auckland Council.
5. Under
the Memorandum of Understanding (MOU) between POAL and the council, POAL is
required to provide annual reports to council on the matters and within the
timeframes specified in the Port Companies Act 1988. POAL’s audited
annual report is attached as Attachment D. POAL’s full year results for
the key performance indicators against the annual targets in the 2024-2027
Statement of Corporate Intent (SCI) are included in the annual report.
6. Key
results are highlighted in the table below and in more detail in the body of
the report.
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Council-controlled
Organisation
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Summary of Quarter Four
results
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Tātaki Auckland Unlimited (TAU)
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· TAU achieved ten of its twelve performance measure targets,
with two not achieved.
· Ticketed attendance across TAU venues
and events full-year
result was 2.29m (above the target of 2.12m) and almost 10 per cent higher than the
previous year’s result. Contribution to regional GDP from major and
business events attracted or supported by TAU full year result was $89.3m
(above the target of $50m).
· TAU’s net direct operating
result was $4.2 million favourable driven by higher visitation revenue across
a number of venues, better than expected revenue in Performing Arts and
stronger Film Production margins.
· Capital programmes made steady
progress, full year expenditure was $69.5 million against budget of $81
million with some timing related deferred into the current financial year.
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Watercare
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· This is the first quarterly report from Watercare
prepared in accordance with the new Watercare Charter. In becoming
financially separate from Auckland Council, Watercare received an
investment-grade Aa3 rating from Moody’s and successfully completed New
Zealand’s largest corporate debt capital raise securing $3.4 billion of
committed bank debt facilities.
· Of the 43 performance measures, targets were met for 35
measures.
· Net direct operating revenue was $14 million
favourable to plan with higher development related revenue offsetting
shortfalls in water and wastewater charges. Direct operational expenditure
came in right on budget.
· Capital expenditure reached $1,002 million
against budget of $1,211 million. Progress was made on planned milestones,
though timing of delivery was impacted by scope changes, design refinement,
drought conditions, and the need to maintain resilience of water supply.
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Eke Panuku
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· Net operating result was favourable for the
year, driven by higher-than-budgeted property revenue and lower expenditure
from vacancies and reduced corporate costs.
· Capital expenditure was $91.2 million
against budget of $98.9 million. Competitive tender pricing and project
delays contributed to the underspend, partly offset by board-approved scope
and timing adjustments for key renewal projects.
· Eke Panuku met 10 of their 12 performance measure
targets. The two measures that were not met were both around asset sales, due to market conditions. $10
million of asset sales were completed against a combined target of $76
million (the asset recycling and transform and unlock targets combined).
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Port of Auckland
Limited
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· POAL reported record financial results for
FY25. Underlying net profit after tax was $85.4 million (up 55 per cent from
$55.2 million in FY24) on revenue of $393 million.
· A $52 million full-year dividend was
declared, and a $45 million special dividend was paid to council from the
sale of the port’s stake in Marsden Maritime Holdings.
· POAL exceeded most FY25 targets, with profit
and dividends well above target, strong safety performance (zero serious
harm), improved operations (72 per cent berth window, 24-minute truck
turnaround), high customer satisfaction (87 per cent), and progress on Māori
outcomes and sustainability including new solar and electric equipment.
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Ngā tūtohunga
Recommendation/s
That the Council Controlled
Organisation Direction and Oversight Committee:
a) whiwhi / receive the 2024/2025 fourth quarter
reports for Tātaki Auckland Unlimited, Watercare and Eke Panuku provided as Attachments A to C of the agenda report.
b) whiwhi / receive the 2024/2025 annual report of
Port of Auckland Limited and the 2024/2025 full year results for the key
performance indicators in the 2024-2027 Statement of Corporate Intent provided
in Attachment D of the agenda report.
Horopaki
Context
7. Each
substantive CCO must provide a quarterly report to Auckland Council. They are
required to:
· summarise
the CCO’s performance against the approved budget and agreed targets in
the Long-term Plan and SOI;
· provide
a forecast of the CCO’s performance;
· identify
the cause of major variances;
· highlight
major achievements for the quarter; and
· signal
any potential or developing issues.
8. Tātaki
Auckland Unlimited, Watercare and Eke Panuku quarter four performance reports
for 2024/2025 are Attachments A to C of the agenda report. Auckland Transport
quarter four performance was reported to the Transport and Infrastructure
Committee on 4 September 2025. The Auckland Future Fund Trustee Limited
fourth quarter report will be reported to the Governing Body meeting on 25
September 2025.
9. Under
the MOU between POAL and the council, POAL is required to provide annual
reports to council on the matters and within the timeframes specified in the
Port Companies Act 1988.
Tātaritanga me ngā
tohutohu
Analysis and advice
Tātaki Auckland Unlimited
Financial and capital performance overview
10. TAU finished
the year with net direct expenditure $4.2 million under budget. This favourable
result was driven by direct revenue exceeding budget by $11.3 million,
primarily due to strong performance in Performing Arts events and film studio
operations. The higher revenue more than accommodated the $7.2 million in
additional costs required to support the increased volume of event activities
and the delivery of a refreshed Performing Arts programme.
11. Capital
expenditure for the year was $69.5 million, representing 86 per cent of the
adjusted annual budget. TAU reports steady progress was made on key projects:
· Auckland
Art Gallery Heritage Restoration project (total project budget of $31.8
million) is in its final stages, with 99 per cent of the Kitchener Street roof
and façade works complete and remedial work progressing on the upper
clock tower. The project remains on track to be delivered within budget.
· Security
transformation programme (total project budget of $8.3 million) is advancing,
with 8 of 12 sites complete. Work continues at the Zoo and Go Media Stadium
with CCTV and access control works, while two sites (North Harbour Stadium and
Western Springs Stadium) are on hold pending future direction.
12. The
timing-related capital underspend has been carried forward as part of the
Annual Plan 2025/2026 process to ensure continued delivery.
Non-financial performance and other issues
13. TAU has 12 SOI performance measures, of which five are
Long-term Plan measures. Nine of the 12 measures are tracked quarterly, one is
a six-monthly measure and two are annual measures. At the end of quarter four,
10 performance measures were achieved, two were not achieved.
14. The two performance measures that were not achieved were:
· “Percentage change in greenhouse
gas emissions against 2028/19 baseline (scope 1 and 2 only).” Annual target is -20 per cent, quarter four result +2.7 per
cent. TAU advises this result was largely driven
by increased refrigerant leakage, and a less favourable emissions factor for
electricity being generated from non-renewable sources across New Zealand (a
factor outside of TAU’s control).
· “Percentage of operating expenses funded by non-rates
revenue.” (LTP measure). Annual target is 59 per cent, quarter four
result is 56 per cent. This is below target but a slight improvement on
last year’s result of 55 per cent.
15. Highlights
for quarter four include:
· Ticketed attendance to the end of quarter four across TAU
venues and events was 665,000,
contributing to a full-year result of 2.29m – 8 per cent above the
year-end target of 2.12m, and almost 10 per cent higher
than the previous year’s result.
· 65,000 children participated in educational experiences though TAU
venues over the quarter, bringing the year-end result to 175,533.
· Contribution to regional GDP from major and business events
attracted or supported by TAU in quarter four was $6.8m, bringing the total
across 2024/2025 to an estimated $89.3m – above the SOI target of $50m.
· Auckland Live presented Darkfield:
Séance and Flight throughout May until 15 June. The show exceeded
targets, reaching nearly 16,000 tickets sold. A
Century of Modern Art exhibit opened in June at
Auckland Art Gallery and is attracting strong attendance.
· Auckland Zoo broke records in quarter four with 7,686 visitors
attending on Anzac Day - its biggest ever paid-entry opening day in its
102-year history – and a record 80,082 visitors in June.
· Auckland FC’s debut season also concluded over the quarter,
with more than 26,000 attending the home-leg of their semi-final appearance at
Go Media Stadium. Attendance was strong across the entire season, with an
average home crowd of more than 18,000 – the highest in the A-League.
· After engaging with Mana Whenua and the screen sector, a new
indigenous film protocol and a change to the Auckland Unitary Plan were
finalised in quarter four. This change allows filming (up to 30 days) on Sites
and Places of Significance to Mana Whenua without needing resource consent.
· At year-end, Auckland Conventions Venues and Events (ACVE) had
delivered 360 events across its portfolio of 13 venues, delivering $23.3m
revenue. Combined, these events attracted 161,000
business delegates – a 7 per cent increase on the 2023/2024 financial
year.
16. The
below table sets out a summary of performance measure results as at quarter four.
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TAU
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Targets met or exceeded
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Targets not met
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Total
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Experiences and events
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5
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5
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Facilities
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3
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2
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5
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Investment and innovation
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2
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2
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Total
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10
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2
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12
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Issues / risks
17. TAU remains focused on finding suitable long-term alternatives to
the Accommodation Provider Targeted Rate (APTR), such as a bed levy as
contemplated in the LTP. While a minimum level of interim funding has been
provided for 2025/2026, funding for 2026/2027 and beyond remains uncertain and
will impede Auckland’s ability to attract and retain events from early
2025/26 planning cycles. TAU advises that ongoing delays in confirming a
long-term solution will damage TAU’s and Auckland’s reputation.
18. Watercare is carrying out essential repairs
on the Ōrākei Main Sewer from within Auckland Zoo
grounds. During sewer inspections, Watercare
identified two defects beneath the Zoo grounds. These areas are being
excavated so that repairs can be completed, which is expected to take three
months. The work area is fully secure and not accessible to the public. The Zoo
is working closely with Watercare to manage impacts and keep any disruption to
a minimum.
19. Auckland Zoo continues to work closely with the council to prepare
both the Zoo and wider Auckland for the anticipated arrival of Highly
Pathogenic Avian Influenza (HPAI) in Aotearoa. As part of preparations, the Zoo
has initiated a work programme to install additional bird exclusion measures in
Te Puna café.
20. Financial pressures continue to be felt by the tourism sector with
the Destination Partnership Programme forecasting a $400k reduction in partner
funding primarily from hotels and Auckland Airport.
21. A decision
has been made not to progress with any further development of an Auckland Pass.
The feasibility has been completed, incorporating customer and industry
research alongside commercial modelling. Key findings identified
integration complexities, particularly in aligning pricing strategies and
addressing operational challenges across multiple partners, including the
availability of the pass during peak periods. These issues, coupled with a
misalignment between customer expectations and industry capabilities,
significantly impacted the commercial viability of the initiative.
Watercare
22. The Watercare quarter four report for the period ending 30 June 2025
is the first quarterly report, prepared in accordance with the new Watercare
Charter (the Charter). The Charter is an Order in Council[1] under the Local
Government (Water Services Preliminary Arrangements) Act 2024 containing
interim economic regulations that apply from 1 April 2025. The Charter is one
element of governance changes accompanying the financial separation of
Watercare from Auckland Council from 1 July 2025.
23. The
Watercare quarter four report contains both reporting under the Charter and
their SOI 2024-2027, framed by the six priority areas in the SOI. The first
part of the report includes reporting information required by clauses 28 and 29
of the Charter and a statutory declaration by the Board Chair that it is true
and correct. The council shareholder supplement covers additional reporting
requirements outlined in the Watercare SOI 2024-2027 (which do not require a
statutory declaration).
24. Under
the Letter of Expectations from the Crown monitor, Watercare is also required
to report on the performance of the Papakura network, which Veolia operates
under a franchise agreement with Watercare. Watercare delivers wholesale
services to Veolia water, who are contracted to operate, maintain and develop
the local network. As Veolia is not a council-controlled organisation, their
report is not included in this report. However, staff will consider the
relevance of this in future reporting.
Financial and capital performance overview
25. Watercare delivered an operating result with a net favourable
revenue variance of $14 million. This was driven by higher revenue from
Infrastructure Growth Charges, development revenue, and subvention income,
offsetting a shortfall in user charges due to lower consumption. Direct
operating expenditure was on budget, with higher costs from flood-related
repairs and one-off employee adjustments balanced by savings elsewhere.
26. Capital expenditure reached $1,002 million (83 per cent of the
$1,211 million budget). Key milestones achieved in the last quarter included
completion of the Judges Bay Wastewater Upgrade, advances in the Wellsford
Treatment Plant expansion, and near-completion of flood recovery work. The
underspend resulted from lower delivery costs (e.g. the Huia 1 pipeline that
runs for 15.5km from Titirangi to Epsom delivered well under budget), and
project delays due to scope changes, refinement of design and construction
methodology, drought-related commissioning challenges and the need to maintain
resilience of water supply.
Highlights
27. More rain than normal in the quarter meant that water storage dams
were replenished. By the end of June water storage was at 88 per cent (about 11
per cent higher than the same time last year) and has since hit 100 per cent.
The impact of having dams this full means less reliance on Waikato treatment
plants (with resulting cost savings) and that water efficiency campaigns can be
stepped down.
28. Progress on
new financial and regulatory arrangements for Watercare achieved in the quarter
include:
· Following the investment-grade Aa3 credit rating from Moody’s
and successfully completing the debt capital raise, Watercare progressed work
to become financially separate from Auckland Council. This occurred on 1 July
2025.
· Three improvement plans specified under the Charter have been
completed - pricing, operational efficiency and capital delivery.
29. Key water and wastewater projects milestones were achieved –
in the Ōrākei Main Sewer, Queen Street Diversion, Rosedale Northern
Interceptor Integration, Warkworth to Snells Transfer Pipeline and Central
Interceptor (southern section).
Non-financial performance and other issues
30. The Watercare quarter four report contains 43 measures.
These measures are set by council in the SOI 2024-2027 and in the new Charter,
which came into effect from 1 April 2025. The table below sets out a summary of
performance, by the six priorities in the Watercare SOI 2024-2027.
Table 1: Watercare
performance measures for 2024/2025
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Watercare
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Target met
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Target not met
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Total
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Priority 1: Deliver safe and reliable
water and wastewater services
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25
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4
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29
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Priority 2: Renewing and building
infrastructure
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2
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2
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4
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Priority 3: Efficient service and infrastructure
delivery
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1
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0
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1
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Priority 4: Strengthening
relationships
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2
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1
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3
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Priority 5: Improving organisational
performance
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2
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1
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3
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Priority 6: Embedding a sustainable
financial model
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3
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0
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3
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Total
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35
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8
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43
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31. The majority of performance measure were met (35
out of 43 measures). The eight performance measures where targets were not met
are:
i) Residual
disinfection (chlorine) water quality – some of the 40 distribution zones
were, at times, not compliant with the monthly target in the period 1 July 2024
to 30 June 2025. However, the average monthly performance of all distribution
zones was 97 per cent. (Taumata Arowai Quality Assurance Rule D3).
ii) Leakage
performance – 119.2 liters per connection per day, compared with a target
of 98.2 liters per connection per day. The programme to reduce non-revenue
water is ongoing, and leak reduction efforts continue within the existing
operating expenditure budget to bring results towards the target. (SOI
measure).
iii) Response
time for attendance at wastewater overflows – 77 minutes median against
the target of 75 minutes or less. Auckland traffic and large-scale weather
events pushed the result slightly over target. The failure to meet this target
means that the performance measures target for Watercare to meet all Department
of Internal Affairs non-financial service performance measures is also missed. (DIA
measures).
Watercare noted that the median response
time to priority one (urgent) service requests was 47 minutes against an
internal target of 60 minutes. For priority two requests the median response
time was 95 minutes against an internal target of four hours.
iv) Planned
network pipe renewal – 23 kilometers delivered against a target of 26
kilometers planned for the year (rolling). The new planned pipeline renewal
programme had a series of initial operational constraints that meant the target
was not achieved. (SOI measure).
v) Deliver
capital programme in line with asset management plan - 11 out of 19 projects
(57 per cent) were completed within budget and timelines, against a target of
80 per cent. (SOI measure). Of the remaining projects:
· three projects had timing delays but have now been completed within
budget
· three projects
are now expected to be completed by November 2025, due to changes in scope or
methodology
· two projects
are being further refined, and potentially merged, at the Rosedale wastewater
treatment plant.
vi) Community
trust score – 52 per cent trust against a target of 55 per cent, measured
by the rolling 12-month average of a monthly survey. The trust score has
improved from 50 per cent in the first half of 2024/2025 to 54 per cent in the
second half, supported by Watercare communications on infrastructure progress,
planned investment and incident response. The trust metric can be sensitive to
public perceptions around perceived under-investment in infrastructure,
capacity constraints, and price increases. (SOI measure).
vii) Procurement
sourced through Māori owned business – the result was 3.23 per cent
against the increased target of five per cent While the target was not met, the
total Māori-owned supplier spend has increased from $22.8m in 2022/2023 to
$30.6m in 2023/2024 and $38.6m in 2024/2025. (SOI measure). Watercare advises
that the capacity of Māori suppliers, the size and complexity of work
required, and the nature of large infrastructure projects are an ongoing
constraint to achieving the target.
Issues / risks
32. Wastewater overflows into the Mahurangi River (in the Warkworth
area) have impacted the ability of oyster farmers to harvest due to norovirus
contamination. Watercare are engaging directly with affected parties and
implementing measures to reduce environmental risk.
33. Watercare note that there remains pressure from developers for
growth in areas of Auckland where there is limited network capacity, and no
infrastructure investment planned. Watercare have shared an updated capacity
map with developers to help mitigate this risk.
Eke
Panuku
34. With the
transfer of urban regeneration, property and marina management functions into
council, this is the last quarterly report from Eke Panuku.
Financial and capital performance overview
35. Eke Panuku
operating financial results, including activities managed on behalf of the
council, were favourable for the year. Revenue exceeded budget by $11 million
due to several properties being held for longer than anticipated and a change
in accounting treatment for lease income from a Northcote property. Direct
expenditure was $1.9 million favourable to budget largely resulting from staff
vacancies and savings on consultancy, audit, and directors' fees.
36. Capital
expenditure was $91.2 million against a budget of $98.9 million. The underspend
was driven by lower than anticipated supplier pricing in a competitive market which
delivered projects like the PS6 Wastewater Upgrade and Cambridge Terrace
Extension under budget. It was also impacted by timing delays on specific
projects, including consenting for Panmure’s Lagoon Edge and
decontamination at Waterfront’s Te Ara Tukutuku site. These variances
were partially offset by board-approved additional investment in the Wynyard
Crossing Bridge renewal and brought-forward remediation work on Queens Wharf.
37. From a delivery perspective, Eke Panuku have met their target for
delivering capital project milestones approved by their board (13 of 15 capital
project milestones were completed, 86 per cent of delivery against the target
of 80 per cent). This performance measure tracks the
completion of key project stages including planning and delivery and does not
directly align to total capital expenditure spend against budget as part of
financial reporting.
Non-financial performance and other issues
38. Eke Panuku had 12 performance measures of which five are long-term
plan measures. These performance measures will continue to be reported through
council processes.
39. Of these 12 performance measures, 10 targets were met in 2024/2025,
as summarised in the table below:
Table 2: Eke Panuku performance measures for 2024/2025
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Eke Panuku
strategic focus areas
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Target met or exceeded
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Target not met
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Total
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Urban regeneration programmes
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3
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1
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4
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Property management services
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3
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1
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4
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Sector leadership
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4
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4
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Total
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10
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2
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12
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40. The two performance measures that were not met are asset sales
targets:
· Transform and unlock
property sales - $1.3 million of sales were achieved, against the target of $16
million. These sale proceeds are reinvested into urban regeneration.
· Asset recycling
sales - $8.8 million of sales, against a target of $60 million. These sale
proceeds are provided to council.
41. Eke Panuku advise that the target was not met due to the downturn in
the property market. This downturn has also impacted sales in previous years.
42. The Eke Panuku SOI has 13 urban regeneration programmes with
deliverables for 2024/2025. Five programmes have achieved their deliverables,
four have substantially achieved them and four programmes have experienced
delays (Takapuna, Avondale, Panmure and Maungawhau).
43. Highlights
for quarter four include:
· Upgrades to Roulston Park, Pukekohe were completed in June 2025,
including an all age-friendly playground and double intersection upgrades and
footpath widening. The transport aspects are co-funded project with Auckland
Transport to increase safety and access in the area. The project supports the
future growth and development of the Edinburgh superblock a large commercial
block to be developed in the Pukekohe town centre.
· Pump Station (PS6)
wastewater upgrade works in Hobsonville have been completed to allow for the
additional housing development that is anticipated in the area. Ownership of
this asset will be transferred to Watercare.
· Construction works
started on a number of projects including Waiapu precinct in Onehunga, Lagoon
Edge Reserve Enhancement in Panmure and Catherine Plaza in Henderson. Old
Papatoetoe town centre revitalisation continues with the construction of the
Cambridge Terrace extension and car park expected to be completed in September
2025.
· Westhaven Marina has
been recognised as a runner-up in the 2025 Marina of the Year Awards, receiving
a Highly Commended award from the Marina Industries Association.
Issues / risks
44. The slow property market continues to affect development outcomes,
including asset sales (as noted above) and the future development of housing
units through development partners. This has had a big impact on regeneration
programmes in 2024/2025.
45. The new Property Department will take development sites to the
market to test market appetite. Once the market improves, sales will occur in
subsequent years.
Port of
Auckland
Financial performance
46. POAL reported revenue of $393 million for the year. This
is an increase of $54 million (16 per cent) on the prior year.
47. Operating expenses rose with higher container
volumes and inflationary pressures, but the business maintained cost discipline
and reduced net debt by $44 million.
48. The underlying net profit after tax (NPAT) was
$85.4 million, exceeding the SCI target of $65 million and up 55 per cent from
$55.2 million in FY24.
49. A final dividend of $27 million was declared,
bringing the total dividends for the year to $52 million (including the $25
million interim dividend), $7 million above the SCI target of $45 million.
50. POAL also paid a special dividend of $45
million from the sale of its shareholding in Marsden Maritime Holdings.
51. Capital expenditure was $49.6 million for the full year,
against the annual budget of $84 million.
SCI Financial Targets
52. POAL’s SCI results for the year are included in POAL’s
Annual Report (Attachment D). POAL met eight of the nine SCI financial
performance targets:
· Free Cashflow to
Sales ((EBITDA-Capex)/revenue %): 26.9 per cent, exceeding the target of 8.2
per cent.
· Return on Equity
(Underlying NPAT/average equity): 8.5 per cent, exceeding the target of 6.5 per
cent.
· Net Profit after Tax
(Underlying NPAT): $85.4 million, exceeding the target of $65 million.
· Dividend declared:
$97.0 million, exceeding the target of $45 million.
· Revenue growth (year
on year revenue % growth): 16.3 per cent, exceeding the target of 10 per cent.
· Return on Assets
(EBIT/total assets): 7.3 per cent, exceeding the target of 7.2 per cent.
· Ratio of
consolidated shareholders’ funds to total assets: 66.4 per cent,
exceeding the target of 65 per cent.
· Net debt (prior to
any capital recycling): $288 million, favourable compared to the target of $400
million.
53. One of the nine SCI financial performance targets was not met:
· Capital expenditure: $49.6 million, below
the annual budget of $84.0 million, reflecting timing of major infrastructure
projects which will commence in FY26.
Non-financial performance and other issues
SCI
Operational Performance
54. POAL’s
Annual Report provides a summary of operational performance indicators. For
FY25 these were:
· Berth
window performance at Fergusson Container Terminal averaged 72 per cent
· Customer
Experience Performance Index averaged 87 per cent
· Container
terminal net berth rate averaged 39.3 moves per hour
· Truck
turnaround time averaged 24 minutes
· Time
of use: 47.6 per cent peak and 52.4 per cent off-peak
· Import
car dwell time: 2.18 days
· Cruise
ship calls: 117
SCI Safety
and Wellbeing Targets
55. POAL report zero fatalities or serious work-related illnesses or
injuries in the year.
56. Health and Safety Performance Index annual average: 85 per cent
(target ≥ 80 per cent). Performance is above target and has progressively
improved over the financial year.
SCI Sustainability /
Kaitiakitanga Targets
57. Average
carbon emissions per TEU (scope 1 & 2): 11.1 kg CO₂ (target met).
58. Waste
disposed of to landfill: target of 5 per cent reduction not achieved, with a
7.6 per cent increase. POAL is reviewing options to reduce and manage
engineering and construction waste.
Issues / risks
59. POAL is embarking on a significant capital programme following
fast-track consents for Bledisloe North wharf, the Fergusson North extension
and channel deepening. Together with the proposed new cruise terminal these
projects represent around $200 million of investment. The scale, complexity and
reliance on external infrastructure partners mean there will be delivery and
coordination risks for council to monitor.
60. POAL’s
Annual report (section G) describes the financial risks that the group have
identified and how it manages these risks to protect its financial position and
performance.
Tauākī whakaaweawe
āhuarangi
Climate impact statement
61. The quarterly performance reports are a key tool to monitor the
progress of each CCO and POAL on climate change action. The CCOs and POAL
quarterly reports contain commentary on activities relating to climate change.
62. To continue progress towards the ‘net zero emissions’
goal this quarter, TAU has installed electric heat pumps at Go Media Stadiums
to supply domestic hot water and reduce the stadium’s emissions by about
100 tonnes annually. The West stand gas boiler was decommissioned, while the
East stand gas boiler remains for air space heating. Auckland Zoo removed
single-use cups from dine-in cafés Te Puna and Wētāpunga from
1 May and is on track to eliminate single-use cups from
takeaway outlets before the end of this calendar year. TAU’s first draft Climate Transition Plan was presented to the
Risk and Finance Committee of the TAU Board in May, with follow-up actions to
be developed and approved in 2025/26.
63. Watercare
have reviewed their de-carbonisation roadmap, which suggests a
likely 50 per cent reduction in scope one and two by 2035 (not 2030). These
reductions are by reducing wastewater process emissions, thermal hydrolysis,
and potential biosolids treatment. Further work will be carried out in
2025/2026 to identify other opportunities, including microbial hydrolysis and
efficiency strategies.
64. Risk assessment by Watercare of potential sea level rise and
increased flood events and have identified a significant number of their assets
that may be adversely affected. Further work is underway to map additional
climate scenarios, and to integrate these risks into business procedures to
ensure adaptation planning.
65. Eke Panuku continued to progress climate-related projects in quarter
four, including:
· embedding climate
considerations, including in business cases, risk management and mapping
climate hazards such as flooding and urban heat island effects
· scoping a blue-green
network strategy for the city centre as part of the delivery of the City Centre
Action Plan and ongoing community engagement on the Te Whakaorangao te Puhinui
stream regeneration project
· deconstruction
projects in Papatoetoe, Avondale, Northcote, Westhaven and Onehunga to identify
and salvage materials of value for reuse.
66. In FY25, average carbon emissions per TEU remained steady at 11.1kg
CO₂ (scope 1 and 2), consistent with long-term reduction pathways but
showing no year-on-year improvement. POAL commissioned the inner city’s largest solar array, expected to
supply around six per cent of current electricity needs, and introduced its
first electric empty container hoist and seven additional electric vehicles,
taking light-fleet electrification to 52 per cent. POAL did not meet its waste
reduction target, recording a 7.6 per cent increase in landfill waste against a
target of a five per cent reduction. The company is reviewing options to better
manage construction and engineering waste.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
67. Each
CCO and POAL quarterly report contains information on how they are contributing
to the council’s outcomes and objectives.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
68. The governance of substantive CCOs and POAL is a
responsibility delegated to the CCO Direction and Oversight Committee. We have
not sought the views of local boards. CCOs provide six-monthly progress and performance reports
to local boards. The quarterly reports also provide a summary of the engagement
that CCOs have carried out with local boards during the quarter.
Tauākī whakaaweawe
Māori
Māori impact statement
69. Each CCO and POAL report on their contribution towards achieving
Māori Outcomes in their quarterly report.
70. During quarter four, TAU delivered 19 programmes
that contributed to the visibility and presence of Māori in Auckland
Tāmaki Makaurau, contributing to the year-end total of 101 (above the
target of 45). These programmes included the installation of bilingual
signage at Go Media Stadium and the Zoo, Te Rā Ringa Raupā master
weavers at New Zealand Maritime Museum, and the premiere of a te reo version of
the Disney’s Shrek at The Civic. The Māori Engagement Committee of the TAU Board met in June to
endorse management's recommendation to establish an 8 per cent official
procurement target for Māori and Pacific peoples-owned businesses and
social enterprises, with an aspirational goal of reaching ten per cent.
71. Watercare completed its Mana Whenua Engagement Strategy in quarter
four. Its Māori Outcomes Plan is on track for completion in August and
will align with Council's new Tāmaki Ora plan. Monthly hui were held with
mana whenua representatives to discuss the 10-year Business Plan and key
projects such as the Te Whare Manaaki handover and the Coastal Walkway project.
72. Eke Panuku
continued to strengthen relationships with mana whenua with
satisfaction increasing from 56 per cent in 2023, 60 per cent in 2024 and 75
per cent. Mana whenua engagement continued on culture and identity and
environment initiatives including in the Onehunga wharves pathway connection,
Northcote community hub and the Te Whakaoranga o Te Puhinui programme (focused
on regenerating the Puhunui stream). This engagement and initiatives are
expected to continue within council.
73. POAL’s Annual Report outlines its ongoing engagement with mana
whenua and initiatives to support Māori outcomes. In FY25, POAL undertook
33 iwi engagements across areas such as consent processes, Te Taiao hui,
sponsorships and scholarships. 56 participants, representing 7.8 per cent
of staff, engaged in four learning programmes: two online-EP (digital platform)
and Kōrero Online (tutorial series); and two in-person-AMA Training Group
(NZQA-accredited) and Kia Kaha te Reo Māori (internal mihi training for leaders).
75 leaders completed Te Tiriti training through Te Ara Ahurea Wānanga. The
port’s Te Ara Rangatira programme supported 14 emerging leaders,
including three Māori participants, and two iwi internships were
completed.
Ngā ritenga
ā-pūtea
Financial implications
74. Each of the CCOs and POAL’s quarterly reports contain
information regarding their financial performance. These are described in the
sections above.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
75. Each
of the CCOs quarterly reports and POAL’s annual report (section G)
contain information regarding their risks and mitigations, which
is summarised above.
Ngā koringa ā-muri
Next steps
76. This report is primarily for information
purposes. The next CCO and POAL quarterly reports (quarter one, July to September
2025) will be provided to the committee with appropriate delegation in the new
political term.
Ngā tāpirihanga
Attachments
|
No.
|
Title
|
Page
|
|
a⇨
|
Tātaki Auckland Unlimited 2024/2025 quarter four
report
|
|
|
b⇨
|
Watercare 2024/2025 quarter four report
|
|
|
c⇨
|
Eke Panuku 2024/2025 quarter four report
|
|
|
d⇨
|
Port of Auckland Limited Annual Report 2025
|
|
Ngā kaihaina
Signatories
|
Authors
|
Trudi Fava - Principal Advisor
Tracy Xu - Principal Advisor CCO Financial Planning
Chris Levet - Principal Advisor
Sarah Johnstone-Smith - Principal Advisor
Rachel Wilson - Principal Advisor
|
|
Authoriser
|
Alastair Cameron - Manager CCO/External Partnerships
team
|
