Climate Change Risk Assessment
The Star Entertainment Group recognises that its properties may be susceptible to future changes in climate and that we have a responsibility to reduce resource consumption. Accordingly, we are committed to improving the resilience of our business operations, our assets, and the precincts in which our properties are located.
The Board People, Culture and Social Responsibility Committee has oversight of all Sustainability matters including climate risk assessments. The Star Entertainment Group used a specialist consultancy to complete climate risk assessments for each of our properties during FY2017. The project assessed the predicted climate variables at 2030, 2050 and 2070 for each location including the expected changes in rainfall, temperature and extreme weather events, and assessed these predicted physical impacts on the buildings. By analysing the predicted climate exposure and property sensitivity, the climate risk was identified for each of our properties.
Climate change risk forms part of the company risk register and is managed under the normal risk processes. The Group acknowledges that climate change, particularly in relation to planning and contingency planning, may create a range of potential impacts. In the areas in which the Group has properties located, there is potential for changes in temperatures and related weather events in future that might impact air conditioning, building, construction and design standards. To help manage these risks into the future and to design and build with a changing climate in mind, prioritised mitigation and adaptation actions have been developed and are included in the Group’s Sustainable Design and Operational Standards that are required to be applied to all major projects.
The Star Entertainment Group has set a target to reduce carbon intensity on a square meter basis by 30% from a baseline year of financial year 2013 by financial year 2023.
In addition to the climate change assessment work already completed, including the setting and monitoring of targets, The Group recognises the recommendations of the Financial Stability Board Task Force on Climate-related Financial Disclosures and the associated framework. The Group will work to align current and new projects to the four framework areas including Governance, Strategy, Risk Management and Metrics and Targets over time, and report progress.
As part of progressing this commitment, in 2019 The Group conducted a gap analysis to understand progress under the four TCFD Recommendations’ disclosure categories.
The Star’s current approach to managing climate-related risks was evaluated.As a result of this analysis, recommendations were identified for future activities to further support the understanding and disclosure of climate-related physical and transition risks and opportunities in accordance with the TCFD recommendations. The Group will look to implement recommendations overtime and report annually on progress.
The Group has a National Sustainability Steering Committee which activates climate related projects and the business’s strategic approach to reducing energy use and cost, energy efficiency and the use of new technology to create our world class properties. The Steering Committee supports capital and operational projects and ensures that the Sustainability Strategy, Our Bright Future is delivered. Metrics, including targets and KPIs, are recommended at the Steering Committee level which then receive the Executive Committee and approval from the Board People, Culture and Social Responsibility Committee.