Scope 1 and 2 emissions reductions are the key focus of the PoM’s sustainability linked loan, as it moves towards net zero emissions
The Port of Melbourne’s (PoM) net zero emissions targets are moving closer to reality, with the recent announcement that it has completed a $475 million sustainability linked loan (SLL).
The loan links to major sustainability indicators covering scope 1 and 2 emissions reductions, which the PoM is hoping to reach net zero in by 2030.
Scope 1 and 2 emissions cover emissions created directly from sources that an organisation can control (such as the port’s ships),and emissions created from the energy a company uses, such as electricity or fuel.
The PoM is looking to achieve this target through the sourcing of 100 per cent electricity from renewable sources, and the electrification of its fleet of vehicles and marine survey vessel.
PoM CEO Saul Cannon says that the completion of the loan will help to achieve the company’s goals for sustainable ports to increase the liveability of Melbourne.
“As Australia’s largest general cargo and container port, we are committed to facilitating the decarbonisation of the port’s supply chain, minimising the port’s impact on our land, air and waters and building strong stakeholder relationships,” Cannon says.
“Linking an element of our financing structure to sustainability embeds our people, our environment and our stakeholders into what we do now and in the future.”
Financed by a syndicate of 10 banks, the loan will also be used for the PoM to obtain a mental health first aid workplace certification and work towards targets to reduce scope 3 emissions as well.
Scope 3 emissions come from other stakeholders within the company’s value chain, with the PoM committing to working with those stakeholders to reach net zero.
The PoM recently signed a memorandum of understanding with industry to explore the commercial feasibility of establishing a green methanol bunkering hub.
“In addition, we’ve committed to engaging with our tenants, shipping lines and other port users on emissions reduction measurement and opportunities,” Cannon adds.
Adelaide Airport signed the first Australian SLL in 2018, with more companies undertaking the loans across the past five years to work towards their emissions goals.