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Sydney Airport | Sustainability Report 2020 Contents Sustainability at Sydney Airport 02 Chair and CEO message 04 Performance highlights 05 Benchmark and ratings performance 06 Our approach to sustainability 06 Contributing to the United Nations Sustainable Development Goals 07 Global trends 08 Stakeholder engagement 10 Focusing on issues that matter 12 Delivering on our commitments Responsible business 14 Safety 18 Security 19 Business continuity and resilience 21 Operational efficiency and continuous improvement 21 Environmental management 24 Our people 27 Fair and ethical business Planning for the future 28 Building resilience to climate change 34 Sustainable development of the airport 35 Airspace and airfield efficiency 36 Customer experience 37 Access to and from the airport 37 Innovation and technology Supporting our community 39 Fostering strong relationships 39 Community engagement and social impact 42 Reconciliation Action Plan 44 Supporting our partners 45 Economic contribution Performance data 46 General metrics 47 Health, safety and security 48 Environment and climate 49 Customer 50 People and organisation 51 Community investment Other information 53 GRI Index 58 SASB Index 60 Limited assurance statement About this report This 2020 Sustainability Report covers the year 1 January 2020 to 31 December 2020. All financial values are in Australian dollars. This report is prepared in accordance with the Global Reporting Initiative Standards: Core option and the Sustainability Accounting Standards Board (SASB) Standards. The Management Approach for each of our material issues can be found at www. sydneyairport.com.au/corporate/sustainability. The UN Sustainable Development Goals guide our reporting of relevant global issues. Due to the business challenges associated with the COVID-19 pandemic, a small number of our sustainability commitments and performance have been impacted and this is discussed throughout the report and indicated in data points. KPMG has provided limited assurance over selected data sets within our 2020 Sustainability Report (see Limited Assurance Statement). We welcome feedback on our sustainability reporting and performance. Please email us at sustainability@syd.com.au.
Sustainability at Sydney Airport Responsible business Planning for the future Supporting our community Performance data Other information 1
2 Sydney Airport | Sustainability Report 2020 Chair and CEO message Staying the course From left to right: Geoff Culbert (CEO) and Trevor Gerber (Chairman) In a year like 2020, when everything Our leadership in sustainable finance and wellbeing. More than 1,000 hours you know about your business is also continued when we issued a in new mental health training were challenged, you are forced to reassess world-leading $600 million Sustainability delivered, including our first volunteers your priorities. As we worked our way Linked Bond in February 2020. Building being trained in Mental Health First Aid. through the year there were many things on our market-leading Sustainability We also introduced three new days of we had to change, and many tough Linked Loan issued in 2019, this bond wellbeing leave for our people in 2021, decisions we had to make. At the same issuance was the first of its kind in the and our Flex@SYD policy was updated to time, you get an opportunity to truly US private placement and global bond support a positive work life balance and assess what you stand for. Some things markets. These financial initiatives improve the productivity of our teams. are so core to your values that you stay underpin our drive to improve our We continued to build our safety culture the course irrespective of the challenges sustainability performance. this year, exceeding the target for safety of the external environment. Despite This year also reinforced the importance walks and continuing to strengthen a summer of devastating bushfires, of strong relationships with our many safety governance. The number of followed by the COVID -19 global health and varied stakeholders. We have injuries across our workforce also crisis, we maintained a steadfast focus worked closely with governments, reduced by 43 per cent. on keeping the airport open, our people airlines, our commercial partners and the and passengers safe, and serving For the first time ever we achieved community to navigate the challenges our community. 50:50 male:female representation on presented by the COVID-19 pandemic our executive team, and our gender pay Importantly, whilst every aspect of our and are on a path to come out the other equity ratio improved to 99.8 per cent. business and operations were disrupted side stronger for it. over the year, our commitment to the Our commitment to our people during long-term sustainability of our business Responsible business this time was reflected in an improved remained unchanged. As a result we are From late January 2020 our priority employee engagement score of 80 per pleased to report that we continued to became ensuring a COVID-safe cent, up 14 per cent on the 2019 result. improve our sustainability performance environment for our people and passengers to minimise the risk of We also updated a number of important in a number of key areas outlined below. community transmission of COVID-19. policies this year including our Code Over the year our leadership in of Conduct and Human Rights policy New procedures were introduced sustainability was recognised by global and introduced a new Fraud and and our teams worked closely with ratings agencies. We ranked 3rd globally Corruption Control policy. Sustainability government agencies to agree in Sustainalytics’ Airports sub-industry requirements under our Supplier Code constantly adjusted protocols for the sector, as sector leaders in S&P Global’s of Conduct were strengthened, and safe passage of arriving, transiting and Sustainability Yearbook 2021 and were we developed our first Modern Slavery departing passengers. rated ‘AAA’ by MSCI. Statement under the new Federal Given the duress the business and Modern Slavery Act, which can be our people have been under we found on our website. expanded our focus on mental health
3 Sustainability at Sydney Airport Responsible business Planning for the future Planning for the future We continued to optimise our airfield Looking forward with the Northern Ponds development Our commitment to tackling climate The challenges of 2020 have only converting existing layover bays to change remains strong. This year, reinforced our commitment to active bays fitted with ground power we deepened our scenario analysis, sustainability and we recognise the role and preconditioned air. Importantly, this and a stand-alone report against the strong sustainability performance plays means aircraft at these bays can switch framework of the Taskforce for Climate- in long term company value. We will off their auxiliary power units and plug in related Financial Disclosures (TCFD) is continue to invest in understanding and to this infrastructure, reducing emissions available on our website. building resilience across all aspects of and ground-based noise. Supporting our community our business to meet any challenges the The use of sustainable aviation fuel, or SAF, is widely recognised Supporting our communities future may bring. as the greatest contributor to the While financial contributions in our The COVID-19 pandemic has taught decarbonisation of aviation. With the community investment program were us the importance of Sydney Airport Joint Fuel Infrastructure (JFI) at the down this year given the impact of remaining a strong and sustainable airport returning to our control, we are COVID-19, our people volunteered more business, one that is a committed to now positioned to drive the use of SAF time than ever before. From collecting providing a safe and reliable aviation at Sydney Airport, while developing an donations for bushfire-affected gateway to the people of NSW, open access fuel regime for the first time communities to mentoring young people Australia and beyond. since privatisation. and donating their skills to charitable organisations, our people made We began resurfacing works on our significant and selfless contributions runways this year, a project that only to the community. Performance data happens every eight to ten years. We made sure the existing pavement The first-ever SYD Scholarship was material was put to good use with more awarded in 2020, supporting the next Trevor Gerber than 24,700 tonnes recycled for reuse generation of industry professionals Chairman during the year. and we continued to build relationships with local indigenous groups, working New Sustainable Design Guidelines together to raise the airport community’s were developed this year, which set awareness of local indigenous history requirements that are designed to and to deliver the objectives in our improve our sustainability performance Reconciliation Action Plan. Geoff Culbert and the long-term resilience of our Other information assets to the impacts of climate change. Chief Executive Officer
4 Sydney Airport | Sustainability Report 2020 Performance highlights We continued to improve our sustainability performance in key areas in 2020 and were proud to issue the first Sustainability Linked Bond in the US private placement market during the year. Safety Our people and the Environment community 43% reduction in injuries across > 1,980hrs volunteering in the 75,854 tCO2e Scope 1 & 2 emissions our workforce community ↓ from 83,620 tCO2e in 2019 2 Gender pay equity ratio 1 736 99.8% 44.7% safety walks completed ↑ from 95.9 waste recycling rate in 2019 ↑ from 43.4% in 2019 2 (excluding quarantine waste) Employee engagement 1,000hrs > 80% Level 3 of mental health training ↑ from 70% maintained 'optimisation' Airport Carbon Accreditation in 2019 1. Employee fixed annual remuneration paid to men and women in management roles vs non-management roles 2. Environmental data has transitioned to calendar year reporting from 2020, and includes T3. 2019 environmental data is reported for the period 1 July 2018 to 30 June 2019.
5 Sustainability at Sydney Airport Benchmark and ratings performance Responsible business We benchmark our progress against a number of leading sustainability ratings and frameworks to drive better performance in environmental, social and governance issues. In 2020, we continued to be included in a number of leading sustainability indices. Ratings and indices 1 Planning for the future AAA Ranked in the 94th Ranked 3rd ‘AAA’ rating Index Series percentile globally in SAM’s globally in the Airports sub Ranked in the top nine per Membership CSA 2 in the Transport industry sector and 1st in cent of companies globally reflecting our strong ESG and Transportation our peer group within the infrastructure management practices Infrastructure sector and sector included in Dow Jones’ World, Asia Pacific and Australia Sustainability Supporting our community Indices ACSI Rated ‘Prime’ Maintained Level 3 4★ ‘Leading’ rating in the Transportation ‘Optimisation’ Airport for Master Plan 2039, the for our Sustainability Infrastructure Industry Carbon Accreditation first for an airport Report by the Australian group Council of Superannuation Investors Frameworks Performance data GRI This report is 2020 is Sydney Supporter of the Participant in the Track and measure prepared in Airport’s first year Task Force on United Nations community accordance with the reporting against Climate-related Global Compact investments in line Global Reporting the standards of Financial Disclosures and commitment to with the framework Initiative Standards: the Sustainability and committed to implementing its ten developed by Other information Core option Accounting disclosure under its principles Business for Social Standards Board reporting framework Impact 3 1. As at February 2021 2. Corporate Sustainability Assessment 3. Formerly London Benchmarking Group
6 Sydney Airport | Sustainability Report 2020 Our approach to sustainability We recognise the important role our airport can play in addressing sustainability challenges in our sector now and into the future. Despite the impacts of COVID-19, our commitment to sustainability remains unchanged. Our sustainability strategy responds to a changing world and to Contributing to the United Nations the challenges and opportunities that will shape our business. Sustainable Development Goals This report provides a clear account of our performance under The United Nations Sustainable Development Goals (UN SDGs) the three strategic themes: Responsible Business, Planning seek to address the most significant challenges our world is for the Future and Supporting our Communities. Our three- facing today. year sustainability commitments drive our focus on our material issues. We have mapped the UN SDG framework against our sustainability strategy to understand the role we play As our industry emerges from the COVID-19 crisis, we in addressing these challenges. Sydney Airport directly are working with our stakeholders to drive towards a contributes to the achievement of ten UN SDGs, and indirectly sustainable recovery. contributes to five. Details on what this means in the context of We continued to participate in global, national and local our airport is referenced throughout this report and available on industry forums to share and stay across best practice our website. sustainability initiatives. Sydney Airport became a signatory to the United Nations The Board’s Safety, Security and Sustainability Committee Global Compact in 2017 and is pleased to reaffirm its is responsible for monitoring the effectiveness of our commitment to this initiative and its principles. sustainability strategy. It assists the Board in overseeing To read more about how our sustainability strategy supports sustainability performance. Our Sustainability Working the UN SDGs, visit our website. Group and Champions support the delivery of our sustainability commitments and help build our airport sustainability community. We continued our sustainable finance journey in 2020, issuing the first Sustainability Linked Bond in the US private placement and global bond markets in February. This follows our $1.4 billion Sustainability Linked Loan in 2019, which established a direct two-way link between our sustainability performance and funding costs. Values Sydney Airport launched its refreshed values in 2020 which underpin our purpose – to make Sydney proud every day – and represent the behaviours that shape how we work. Always do the right Have each other’s back Do what you say Think like our customers thing Working at SYD is a team We challenge We walk in their shoes and Integrity and honesty are effort. We care. We keep respectfully then always strive to improve at the heart of everything each other safe and well collaborate to get to ‘yes’. we say and do We commit and deliver
7 Sustainability at Sydney Airport Global trends We are a truly global business that continually looks beyond our borders to understand emerging trends and changing expectations. This helps us to better meet the needs of our stakeholders. Responsible business Steady recovery From innovations in next generation including electric aircraft will continue aircraft design, to developments in to reduce the environmental impact of Past world events that disrupted air sustainable aviation fuel (SAF) and growth in air transport. travel, such as the SARS outbreak and ensuring infrastructure at airports 9/11, saw the industry rebound quickly. Sustainable and safe supports emissions reduction, the The impacts of the COVID-19 pandemic aviation sector is working to take action planning and design on the sector are likely to be felt on climate change. Commercial development will play a key for years to come, with recovery role in the recovery from COVID-19 for coming at a slower, steadier pace as Sustainable aviation many airports around the world as they countries around the world respond The development of aircraft work to diversify revenues streams in the Planning for the future to the pandemic and international and technology and use of SAF is widely wake of COVID-19. domestic travel opens again. viewed as critical to reducing the sectors emissions. SAF has lower Taking a lead from the commercial This disruption has led many to ask how property sector, airports are increasingly emissions than traditional jet fuel the world can build a stronger, more looking to sustainable planning and and has the potential to decouple resilient global economy. Sustainable design to attract top tier tenants, the industry’s growth from increased tourism is set to become the new norm, reduce operating costs and increase carbon emissions. with sustainable air travel playing an asset value. important role. With governments Collectively, the industry will benefit around the world driving towards a net from the development and use of SAF. A renewed focus on safe passage for zero future, action on climate is also a Some European countries have already travellers, as well as building resilience central pillar to a sustainable recovery. mandated its use, and it is anticipated and reliability is also anticipated in the wake of COVID-19. This coupled with Supporting our community the development and uptake of SAF will Action on climate change continue as the industry seeks to reduce ongoing innovation in materials, design Global leaders agree that action must be its carbon footprint. and technology that reduce emissions taken between 2020 and 2030 to reduce and resource use will place sustainable Airports have an important role to planning and design at the heart of greenhouse gas emissions and slow play to ensure their infrastructure future airport developments. global warming. supports the use of SAF and to support Collaboration across the aviation its development. industry is key to addressing the sector’s Aviation is a high-tech industry, and contribution to climate change. Taking continuous progress in the development action to reduce emissions is essential of new technologies is vital for a as expectations on our industry grow sustainable growth of the sector. and influence the decisions taken by passengers to travel. Radical technological innovations Performance data to improve fuel efficiency and and development of green aircraft technology Other information
8 Sydney Airport | Sustainability Report 2020 Stakeholder engagement We worked closer than ever before with our stakeholders this year, building stronger relationships through adversity while pursuing our shared commitment to sustainability. Our key stakeholders Each of our stakeholders have different interests, expectations and interactions with the airport. Their areas of interest influence how we assess our material issues. These are discussed in the material issues section of this report. Business and Customers Employees Government and airline partners regulators Investors Community Suppliers Tourism bodies and analysts and industry associations
9 Sustainability at Sydney Airport Responsible business Planning for the future How we engage We have also worked closely with airport – Seeking and providing feedback via tenants to provide rent relief and other customer satisfaction surveys 1, Our strong commitment to stakeholder support during the year, particularly employee engagement surveys, engagement meant we were able to Supporting our community small businesses operating at the analyst surveys, supplier assessments work together with our stakeholders airport, and supported our people to and government submissions during this challenging year to keep adapt to agile working environments people safe and to keep the airport While COVID-19 profoundly impacted and business changes. operating as an essential service. our industry, it created opportunities for We continued to use a variety of a deeper level of communication and Together with governments, industry and channels to engage with, understand collaboration with our stakeholders. We Safe Work Australia, we delivered COVID- concerns and respond to stakeholders. are focused on ensuring we continue to safe environments in our terminals This year, these included: maintain these important relationships and offices and ensured our people, – Briefings and meetings, including our as the sector recovers. customers, investors and communities were provided with reliable information Annual General Meeting, roadshows, conferences, all staff briefings, and Our COVID management about the rapidly changing situation. and recovery efforts were meetings with all levels of government Our teams worked with stakeholders to strengthened by multi- Performance data – Media and information channels, stakeholder partnerships implement changes to our operations, including via ASX and media releases, that mobilise and share at times multiple times each day. This knowledge, expertise our website and intranet, as well as meant we could facilitate repatriation and resources traditional and social media flights, medical flights, essential worker travel and support the import and export – Partnerships and forums, of crucial freight since the beginning of including employee committees and border restrictions in early 2020. working groups, industry forums and working groups, community forums and partnerships Other information 1. Customer satisfaction surveys were placed on hold from Q1 2020 due to reduced passenger numbers as a result of COVID-19
10 Sydney Airport | Sustainability Report 2020 Material issues Focusing on issues that matter Every two years, Sydney Airport conducts a detailed materiality assessment by engaging directly with our stakeholders to understand the sustainability issues that are most important to them. These issues are then mapped against those that are most important to our business and where we have the greatest impact. This process identifies our material issues which help structure our reporting and are a key consideration in how we evolve our sustainability approach over time. In a year dominated by COVID-19, we re-evaluated our material issues. This considered the context of the pandemic, emerging global trends, key stakeholder interests, sustainability best-practice, and our overall business strategy. This resulted in some material issues increasing in priority, such as: – Safety – Business continuity and resilience – Economic contribution – Operational efficiency – Climate change – Employee attraction, retention and development
11 Sustainability at Sydney Airport Material issue Description Stakeholder groups Safety Managing health and safety risks and maintaining a strong safety culture, while providing a work environment that protects the health and wellbeing of our people and people working at the airport Business continuity and Designing and maintaining our facilities and operational plans resilience to support continuity of operations under a range of different circumstances Economic contribution The creation and distribution of economic value Responsible business Operational efficiency Operating the airport efficiently and with agility to support and continuous governments, customers and business partners, while looking for improvement ways to improve Security Working collaboratively with airport stakeholders to provide and maintain a safe and secure airport operating environment Climate change Building resilience to the physical and strategic risks associated with climate change, and taking action to reduce our impacts including through our energy use Employee attraction, Attracting, retaining and developing our people to ensure the success Planning for the future retention and of our business development Environmental Operating an environmentally responsible airport, actively management managing the use of resources and minimising waste. Protecting the local natural environment and managing impacts on the surrounding community Fair and ethical business Respecting and protecting human rights across all aspects of our operations. Maintaining an effective system of corporate governance and building a culture to maintain high ethical standards and integrity. Responsible management of our supply chain, working with suppliers to effectively manage environmental, social and governance risks Supporting our community Cyber security Prepare, safeguard and respond to cyber attacks that could impact our operations and those of our customers Sustainable Sustainably developing the airport through collaborative decision development of the making, efficiency improvements, sustainable infrastructure design airport and strategic planning Customer experience Providing a superior customer experience for airlines and passengers Diversity and inclusion Creating and managing a diverse and inclusive workforce, while contributing to the creation of an inclusive society Aircraft noise Working with government and airline partners to manage and mitigate Performance data noise impacts Community investment Playing a meaningful role in our local community, while building and and engagement maintaining enduring relationships based on trust Innovation and Embracing future trends to create new opportunities technology Access to and from the Ensuring our passengers have a safe and efficient journey to and from airport the airport, and that a range of transport modes are available to suit their preferences Other information Business partners and Customers Employees Government and regulators airline partners Investors and analysts Community Suppliers Tourism bodies and industry associations
12 Sydney Airport | Sustainability Report 2020 Commitments progress report Delivering on our commitments Our 2019-2021 commitments embed sustainability in all aspects of our business and align with the pillars of our strategy. Our flagship initiatives support these pillars and focus our attention on issues where we can drive improvements in our performance. Efforts to contain the spread of the COVID-19 pandemic There are two main reasons COVID-19 has impacted these resulted in a sharp fall in air travel, reducing passenger traffic commitments: and associated revenue for Sydney Airport. Progress in some – they are measured using passenger intensity metrics, and of our 2019-2021 commitments has been impacted by these, impacted by the sharp reduction in passenger numbers particularly those measured using metrics to calculate a rate. – progress on the initiatives was deferred in 2020 due to reduced capital expenditure Responsible business Being ethically responsible and transparent in how we do business Safety and wellbeing of all airport users Operating ethically and with integrity Achieve year-on-year improvement in injury statistics and Complete supplier questionnaire to assess and mitigate aviation safety performance risks on biennial basis Increase uptake and awareness around wellbeing and Align procurement policy with ISO 20400 mental health Maintaining an environmentally responsible airport Continuing to support a diverse and inclusive workplace Continue to meet regulatory compliance requirements for Achieve a 10 per cent uplift in female representation in noise and air quality management and overall on 2018 performance Reduce potable water use per passenger by 10 per cent in Achieve 30 per cent female board representation terminals and commercial buildings Looking after and developing our people Maintain 30 per cent average annual use of recycled water at T1 international terminal Target an employee engagement score of at least 75 per cent Reducing waste to landfill Deliver 1.5 days of training per employee per annum Remove plastic straws and single-use plastic bags from our terminals Building operational resilience Recycle landside organic waste at T1 international terminal Deliver employee incident and crisis management training Protecting local natural areas and biodiversity Restore and rehabilitate Environmental Conservation 1 zones, predominantly consisting of the Sydney Airport Wetlands Achieved Significant progress In progress Not achieved Progress impacted by COVID-19
13 Sustainability at Sydney Airport Planning for the future Supporting our communities Delivering operational excellence through Working with communities to innovative, technology-based solutions and create shared value supporting customer needs now and into the future Responsible business Increasing and supporting landside efficiency Building relationships and supporting Support diversity of public transport modal options community resilience Establish a baseline for community investment Delivering better outcomes for our customers Develop a community investment strategy to drive Maintain a passenger satisfaction score above continuous improvement four out of five Work with business partners to deliver a pilot program Sustainable development of the airport towards prevention of human trafficking and slavery Achieve a minimum 4-Star Green Star Design and As‑Built rating for new developments Deliver on the commitments in our 2019-2021 Reconciliation Action Plan Planning for the future Flagship initiatives Supporting our community Climate resilience Airspace and airfield efficiency Follow the recommendations of the Task Force on Climate- Deliver an Airport Collaborative Decision Making (A-CDM) related Financial Disclosures (TCFD) program together with business partners Achieve carbon neutrality by 2025 Improve airfield and aviation support infrastructure Reduce carbon emissions per passenger by 50 per cent Explore opportunities to further improve efficiencies from 2010 baseline levels by 2025 through initiatives such as co-location of certain domestic and international activities and runway rebalancing Electrification 100 per cent electric landside bus fleet Install Electric Vehicle (EV) charging stations in new Performance data landside facilities five per cent above EV market penetration Increase aircraft utilisation of both fixed ground power and pre-conditioned air at T1 international terminal from 20 per cent to above 50 per cent Facilitate and support increase of Sydney Airport airside electric vehicle usage to 50 per cent Other information
14 Sydney Airport | Sustainability Report 2020 Responsible business We strive to be ethically responsible and transparent in how we do business 43% reduction in employee 99.8 gender pay equity ratio 1 75,854 tCO2e Scope 1 & 2 emissions injuries ↓ from 83,620 tCO2e in 2019 2 0 class 1 injuries 44.7% waste recycling rate Achieved ACI Airport Health Accreditation ↑ from 43.4% in 2019 2 (excluding quarantine waste) Safety Working through the COVID-19 pandemic Throughout the COVID-19 pandemic, Sydney Airport has remained open and fully operational, continuing to provide essential aviation services in the darkest and most uncertain days of the crisis. We have facilitated travel for thousands of essential workers, foreign nationals heading home, 50 per cent of more than 210,000 Australians who have repatriated so far, and the critical freight flights that kept our export industries afloat. This obligation to the people of NSW and Australia has shaped our response to COVID-19. Guided by our purpose - to make Sydney proud every day – and our values, there have been enormous efforts across the airport community to safely respond to, and look to recover from, the unprecedented COVID-19 crisis. 1. Employee fixed annual remuneration paid to men and women in management roles vs non-management roles 2. Environmental data has transitioned to calendar year reporting from 2020, and includes T3. 2019 environmental data is reported for the period 1 July 2018 to 30 June 2019.
15 Sustainability at Sydney Airport Creating a COVID-safe Our COVID-Safe Workplace Plan sets In our terminals environment out how we are continuing to monitor We worked closely with Australian and respond to the COVID-19 pandemic Border Force, the Australian Federal Our priority is the health and safety and government and medical advice. It Police, Department of Agriculture, Water of airport staff and frontline workers applies to all Sydney Airport employees and Environment, NSW Health, and while maintaining critical airport and in-house contractors and has been NSW Police to agree protocols for the functions, roles and processes to serve registered with SafeWork NSW. safe passage of arriving, transiting and Responsible business the community. Our operations teams have been at the departing passengers. Early in 2021, Sydney Airport achieved frontline of the COVID-19 pandemic, Changes were made to airport the Airport Council International's working with government departments operations to minimise the risk of Airport Health Accreditation following and agencies to protect the health and community transmission of COVID-19. an assessment of health measures safety of our community and keep our rolled out across our terminals against The actions that Sydney Airport and airport open. global standards. This examined things government agencies are taking like cleaning, staff protection, physical These teams were split into A and B to minimise the risk of COVID-19 layout, passenger communications and teams and contactless handovers transmissions on the passenger journey passenger facilities. were introduced to ensure we had through the terminals are set out in our operational resilience and continuity if COVID-Safe Terminal Plan. This plan We are committed to keeping people a COVID-19 case occurred in a shift. We is endorsed by the Australian Health Planning for the future safe, and giving passengers the provided appropriate personal protective Protection Principal Committee and confidence they need to travel. equipment (PPE) and introduced aligns with the Australian Aviation For our people mask-wearing protocols for our people, Recovery Coalition’s COVID-safe Flying A precautionary approach was adopted encouraging others working on airport Principles and Processes Framework. and controls applied to reduce the risk of to adopt these as well. To ensure the safe passage of arriving COVID-19 transmission and minimise the In April, airport workers and their passengers through the terminal, three risk of infection where possible. Masks, immediate families were provided priority dedicated lanes were established gloves and hand sanitiser are available access to the Summer Hill drive through based on traveller risk levels within T1 to all staff and airport workers and we COVID testing clinic. In October, we international terminal. Health screening continue to monitor the situation with worked with South Eastern Sydney Local of all passengers was facilitated through COVID-19 and follow the best available District Health Service to set up a testing NSW Health and we worked with the Supporting our community medical and government advice to clinic in our P9 car park, providing easy NSW Government and the Australian ensure the safety of frontline workers. access and fast results for the airport Police and Defence Force to support As the severity of the COVID-19 community and the general public. mandatory quarantine requirements pandemic became clear early in 2020, Mid-year, our people who had been for new arrivals. new procedures were introduced working remotely were required to The small number of confirmed cases to minimise operational disruption complete an online COVID-safe training amongst airport workers were tracked if a positive case was found in module which outlined the new office by Sydney Airport to ensure areas were our workforce. protocols before they returned to the disinfected, and to support notification Our leave policy was updated so workplace. When they returned, room and contact tracing. employees who are asked to self-isolate, capacity requirements were put in place for meeting rooms, kitchens and We continue to work with our cleaning contract COVID-19 or are caring for breakout areas so as to maintain social provider to enhance cleaning measures someone who is ill are able to take this distancing in the office and additional including the use of hospital grade Performance data time as paid personal leave without cleaning was introduced. disinfectant and more frequent cleaning impacting their leave balances. of high-touch surfaces. Complimentary At the end of December 2020, there We require our people to stay home face masks continue to be provided for were no cases reported among Sydney if they are unwell and while awaiting airport visitors and travellers, and hand Airport employees. This is testament test results, and continue to encourage sanitising stations have been installed to the strength of our COVID-safe virtual external meetings where throughout our terminals and offices. plans and safety procedures and the possible to limit the number of visitors to our office. We continue to encourage social commitment of our staff in adhering distancing in gate lounges, check-in to these protocols. We continue to communicate clear areas, and food courts. This is facilitated and consistent advice related to social by additional security staff, floor decals, Other information distancing, hygiene measures, personal signage and announcements in terminal. protective equipment requirements and managing contactless handovers with our people and the airport community.
16 Sydney Airport | Sustainability Report 2020 Responsible business Supporting mental health Mental health training and support Raising awareness and wellbeing During the year, we provided mental A series of interactive events to support health training to our people with a focus and raise awareness of wellness We are committed to providing a on upskilling people leaders to support and mental health were held during physically and mentally healthy work their teams. September and October for our people environment that upholds Sydney and the airport community. Running Airport’s values and supports our Our people completed more than 1,000 over the course of a month, activities employees to thrive. hours of mental health training in 2020. ranged from a 30-day wellness challenge Our focus on mental health continued We worked with the Black Dog Institute to mental health online training and and expanded this year as we worked to deliver training to better equip people meditation sessions. through the challenges of a changing leaders and team members to identify We again recognised RU OK? Day work environment and the strain of the and support their teams and peers and produced a support pack with COVID-19 pandemic. with mental health concerns. The information and tips to help people start ‘Understanding and Managing Your A mental health and wellbeing strategy conversations about mental health. RU Mental Health' module was completed covering healthy mind, healthy body and OK Day? was also the focus of our all- by team members and leaders. We healthy environment was developed in staff CEO call with an external speaker also worked with En Masse, a group of 2020 and will be implemented over the tackling some of the more confronting organisational psychologists, to deliver next two years. mental health issues in our society. an interactive webinar for our people Under the new Wellness@SYD program covering topics such as anxiety and We continued to make information and introduced in 2020, three days of stress associated with change. resources supporting mental health and wellbeing leave will be provided for each wellbeing available to our people via the We introduced mental health first aid employee from 2021. This is designed new Wellness@SYD intranet page. An training this year. Our 35 accredited as a preventative measure to support online Wellness@SYD staff community Mental Health First Aiders offer support health and wellness. The leave is was also formed which now has more to both staff and visitors who experience intended to provide additional support to than half of our workforce as members. mental health symptoms. ensure the overall work/life balance of employees and nurture their emotional As we shifted to remote working for Our mental health and and mental wellness. part of our workforce, we introduced wellbeing strategy bi-weekly webinars for leaders on topics aims to provide and such as leading teams remotely, leading promote a physically through the crisis, virtual exhaustion and mentally healthy work environment and virtual recognition aimed at supporting our people.
17 Sustainability at Sydney Airport Strengthening our safety Managing aviation safety Safety performance culture and governance With fewer aircraft movements at the Our safety performance improved in This year, we expanded our safety airport this year, more birds and other 2020. Employee Lost Time Injuries (LTI) walks leading KPI program to embrace wildlife were attracted to the area. reduced from six 1 to five this year over safety talks. Materials were provided more than 930,000 hours worked. This We increased our monitoring of bird to support these conversations, many resulted in an employee Lost Time Injury activity on dormant runways to reduce Frequency Rate (LTIFR) of 5.4, down Responsible business of which focused on mental health the likelihood of bird strikes. and wellbeing with many of our people from 6.4 1 last year. There were no class working remotely. We also increased the amount of time 1 injuries or illnesses again this year 2. spent enforcing safe behaviours on the Safety KPIs for people leaders continued Service provider 3 LTIs remained steady airfield this year by 22 per cent. With to support our safety culture in 2020, in 2020 at 13. Due to the reduced activity fewer aircraft movements, we wanted to with 96 per cent of our people leaders at the airport, the hours worked by our be sure that safe behaviours were still in completing four safety walks or talks service providers reduced by 44 per place on the airfield. with their teams in 2020, exceeding our cent. As a result, our service provider target of 95 per cent. We continued to implement initiatives LTIFR increased from 4.9 to 8.0. In 2021, to improve aviation safety, including we will continue to work with service We continued to review and update our managing FOD despite reduced traffic. providers to further improve safety safety governance processes in 2020. We conducted monthly FOD quality performance, building on our program Planning for the future Safeguards, our new incident assurance inspections at both the to investigate high potential safety risk management system, was launched in international and domestic apron events across the airport and redesign October 2020. It consolidates incident and baggage areas and completed our contractor safety audit program. management and reporting from quarterly FOD walks. multiple systems into one and includes Fewer aircraft movements this year has reporting on audits and inspections, resulted in an increase in the number of broadening the information available to empty Unit Load Devices (ULDs) on the identify hazards and risks, and to take airfield, which are used by airlines and preventative actions. ground handlers to transport baggage We also introduced our Critical Risk and cargo on and off aircraft and to and Standards this year, which focus on from our terminals. Supporting our community eliminating or minimising safety risk ULDs are relatively light weight and associated with activities on the airport. there is a chance they may be caught We continue to work with our service by the wind and blown across the providers and stakeholders to ensure airfield, presenting both aviation and these Critical Risk Standards are personal safety risks. To address this, embedded in everything we do. we banned the use and staging of empty In 2021, we will continue our work to Unit Load Devices (ULDs) on any apron, align our Safety Management System aircraft parking bay or common user with the newly published MOS Part 139 storage area. and ISO AS/NZS 45001 standards. This year, we celebrated Airport Safety Week with activities designed to raise Performance data awareness of safety and wellbeing under the Australian Airports Association's (AAA) theme for 2020 'We are in this together'. Our people participated in walks to collect Foreign Object Debris (FOD) on the airfield and terminal area, meditation sessions, webinars, online safety trivia quizzes and a virtual treasure hunt. Other information 1. Post 2019 report publication, closed investigations resulted in the reclassification of one 2019 employee MTI as an LTI 2. Injury or illness which results in a fatality, total permanent disability or permanent partial disability 3. Service providers engaged by Sydney Airport include, but are not limited to, cleaning, security, kerb side management, waste management, parking, maintenance, baggage and trolleys and bussing
18 Sydney Airport | Sustainability Report 2020 Responsible business Security While we reduced the number of active In reviewing the strategy, we have screening points in line with passenger moved away from measuring our We are committed to ensuring the numbers, our security providers cyber security maturity, and are now highest levels of security at Sydney managed team rosters to ensure their working to develop a new measurement Airport. It underpins our organisation and team members remained fit for work. framework that is aligned to changes in ensures we maintain the confidence of the industry landscape. all airport community stakeholders. Cyber security During 2020, we continued to monitor This year, we used a range of COVID-safe security operations the threat environment and build our technologies and controls to mitigate Our security operations were modified cyber security resilience. We delivered our cyber security risk. We developed this year in line with advice from the programs designed to foster a strong a ransomware response plan, which is Department of Home Affairs’ Aviation cyber security environment and educate supported by an incident response team. and Maritime Security division to adapt our people on potential cyber threats. We also continued to run awareness to the COVID-19 crisis and ensure the programs and enhanced monitoring of safety of our passengers. Our information and cyber security critical systems. strategy is designed to respond to the COVID-safe measures were introduced evolving cyber security landscape and Phishing emails and the potential for (see 'Safety', page 14) and included protect the resilience of critical airport subsequent incidents were identified the use of a new fabric tab for each infrastructure and systems. This year as a significant risk for Sydney Airport. indirect explosive trace detection test we realigned our strategy to address We used phishing exercises throughout and additional hygiene requirements the increase in COVID-19 digital threats the year to measure the susceptibility of for security officers conducting frisk and the shift to remote working. We our employees against such threats and searches. We increased the frequency incorporated improvement areas we continue to educate our people to of cleaning routines for screening identified as part of our ISO 27001 mitigate this risk. equipment and ensured sufficient space certification, which we achieved in April, between security lanes to maintain We had no reportable cyber security and other emerging threats. social distancing. breaches in 2020.
19 Sustainability at Sydney Airport Business continuity and In September, the CMT was superseded dialogue and communications with our resilience by the Recovery Action Team. This group employees, contractors and investors meets fortnightly to monitor the evolving regarding our strategic priorities. In the face of the COVID-19 crisis, we situation, identify risks and mitigation strengthened our focus on ensuring Our operations teams continue to work strategies and work with the Leadership business continuity and resilience. We closely with government agencies Team to implement these. are working to reimagine a business- to facilitate passenger arrivals and Responsible business as-usual environment that minimises Business Continuity Plans (BCPs) were departures, and to ensure the airport disruptions and fosters continuity. implemented as we made the decision to remains operational to accept move office-based staff to working from repatriation flights, medical flights and Keeping SYD open home arrangements from mid-February. freight (See 'Stakeholder engagement', In March 2020, we stood up our Crisis Business units reviewed and confirmed page 8 and 'Fostering strong Management Team (CMT), with critical roles and processes in their relationships', page 39). representatives from our Operations, business area in their BCPs. Operational Aviation, Legal, Corporate Affairs, We worked closely with our suppliers COVID-safe plans were developed and Finance, Human Resources, Technology, to scale back non-essential services implemented to ensure the safety of our Commercial, and Safety, Sustainability and maintenance activities to match frontline workers while we maintained and Environment teams. The CMT met the reduced demand placed across airport operations for the community daily at the height of the crisis and our facilities and baggage handling (see 'Safety', page 14). oversaw the immediate responses systems. Regular review meetings Planning for the future to daily changes in requirements Transparent and timely communications with our suppliers were established to and circumstances. Over the same with our employees and stakeholders monitor their continuing capability to period, the Board met weekly providing were key to ensuring our operations were operate during the COVID-19 crisis and in oversight and guidance to management. functioning and safe during the crisis. preparation for the progressive scale-up We were proactive in how we managed of services as demand returns. SYD Leadership Supporting our community Australian Government CMT / Recovery Action Airport external Department of Health, Team stakeholders Biosecurity & NSW Health Business Units Performance data Reshaping our business We took decisive steps to reduce our design, construction and facilities teams When we realised recovery from the net debt and enhance our financial were consolidated and moved in to our COVID-19 pandemic wasn’t going to resilience. Significant extra liquidity Commercial business unit. be as swift as earlier disruptions like was put in place, providing flexibility These steps supported our commitment SARS, we reviewed our business and to monitor how the situation evolved to maintaining a strong investment capital structure to ensure we were well in a period of ongoing uncertainty. We grade credit rating, maintaining a fully positioned for a more gradual recovery. further strengthened our balance sheet operational airport, and improving by reviewing overall operating costs and Following the end of a six-month job our ability to respond to a range of curtailing all non-essential expenses. guarantee (see 'Our People', page 24), we recovery scenarios. Other information restructured our business which reduced Considering the significant reduction in For more information on our strategic our workforce by 22 per cent at the time. construction and development activity response to COVID-19, see our 2020 in and around the airport, our planning, Annual Report which can be found on our website.
20 Sydney Airport | Sustainability Report 2020 Responsible business Safe travel Sydney Airport actively participated in a We also participated in the Australia Sydney Airport has been an active number of industry and governmental New Zealand Leadership Forum (ANZLF) participant in industry and governmental forums to work through the challenges Trans-Tasman Safe Border Group forums to manage through the associated with getting travel alongside 40 public and private sector pandemic and prepare for the recovery. safely open again. organisations and agencies representing Our approach has focused on the the travel and aviation industry on both This included working with: implementation of a range of protocols sides of the Tasman. designed to keep passengers, our staff, – other airports across Australia through working groups and forums convened The protocols arising out of these airport workers and the public safe, engagements have seen COVID-safe and developing opportunities to restart by the Australian Airports Association systems and processes implemented travel when safe. – a network of global airports through at the airport (see 'Safety', page 14). the Airport Benchmarking Group We are also working to enhance the This also includes supporting public’s confidence to travel through – government agencies focused on government agencies in implementing the airport experience and the working to implement regulatory mandatory screening and quarantining implementation of safe travel protocols requirements on the back of requirements. and processes. travel restrictions We continue to work closely with airlines – airports, airlines, and governments During the year, we worked alongside and on airport stakeholders through domestically and internationally in other airports and airlines through the numerous established forums, internal considering future protocols for the Australian Aviation Recovery Coalition staff working groups, and governmental resumption of safe international travel to establish protocols across the whole working groups to drive increased when the time is right passenger journey to support safe travel. passenger confidence to travel safely – joint government and industry forums as restrictions ease. Read more about We also worked closely with government such as the National Passenger this engagement in 'Fostering strong agencies such as NSW Health to support Facilitation Committee and the relationships' (page 39). the rollout of these protocols and in Customs Advisory Board. implementing additional measures as required. Celebrating the ‘Hubble’ A significant recovery milestone for Sydney Airport was the start of the half-way Trans-Tasman bubble - or the ‘Hubble’ - in October 2020. It was an emotional scene as we welcomed the first flights to Australia from New Zealand under the new quarantine-free travel arrangements. NSW Tourism Minister, Stuart Ayres, described it like a scene from ‘Love Actually’ as more than 350 passengers arrived at Sydney Airport, many of whom were reuniting with family and friends for the first time in more than six months. Significant work went into ensuring the processes and operations in our terminals were seamless. Our SYD Support volunteers were also on hand with a smile distributing Gelato Messina and Tim Tams. It was an important first step for Sydney Airport in creating a safe and sustainable pathway towards the full restoration of both domestic and international travel.
21 Sustainability at Sydney Airport Operational efficiency and and ground service providers. This Data section of this report in this continuous improvement includes ground handling agents, aircraft transition year to allow for year on year refuelling companies, cargo terminal comparison. From July 2019, emissions, In 2020, we prioritised key upgrades operators, catering and cabin cleaning water and waste data from T3 domestic and focused on completing enabling companies and aircraft maintenance terminal are also included in the works and projects already underway providers, among others. environmental reporting. as part of a scaled back capital expenditure program. The AOL sets minimum standards to PFAS management Responsible business improve behaviours and enhance safety, There are known sources of Baggage handling system upgrades security, environment, operational polyfluoroalkyl substances (PFAS) Baggage Handling Systems and sustainability performance for at Sydney Airport, with the majority (BHS) are critical to the airport’s companies operating on the airfield. attributed to the historic use of continuous operation. firefighting foams by firefighting service A total of 25 companies are currently Enabling works for the construction of required to hold an AOL with providers during training exercises. the T1 international terminal Southern Sydney Airport. Airservices Australia stopped using Bag Room continued throughout products containing PFAS at Sydney lockdown. Contractors worked with our A new Ground Standards Compliance Airport from 2010. remote project team as they managed team has been established to support the implementation of the AOL. During We are committed to applying the both health risks and the continuity of precautionary principle to protect the project. While this project is now on 2021, this team will work with licensees Planning for the future to support compliance with the human health and the environment hold, once completed the new bag room in relation to PFAS. We continue to will provide additional outbound baggage conditions of the AOL. advocate with the Commonwealth handling capacity and improve the Environmental management Government on a polluter pays approach resilience of the T1 international terminal to the management and remediation baggage system. We are committed to continual improvement of environmental of PFAS contamination in accordance During the year, the High-Level Control performance at the airport. with the PFAS National Environmental software system, which handles Management Plan 2.0 (2020). the sortation of bags throughout T1 We use a risk-based approach to environmental management, We have been working with Qantas international terminal, was replaced. Group to support its transition away This provides new operational control incorporating the Airport Environment Strategy 2019-2024 and Sydney from the use of PFAS aqueous film- and monitoring capabilities and also forming foam (AFFF) in the firefighting Airport’s AS/NZ ISO14001 aligned Supporting our community makes it easier to introduce future deluge system in hangars in the Jet BHS technologies to the system at environmental management system (EMS) to control identified environmental Base. Those works are expected to be Sydney Airport. completed during 2021. risks and to achieve a high standard of Emergency exercises environmental management. In October 2020, we became the owner We conducted our biennial large- of the Jet Fuel Infrastructure (JFI) which This year, we continued to implement scale multi agency emergency includes five Jet A1 fuel storage tanks our environmental auditing program exercise in October. The 2020 exercise with a capacity of 29 megalitres of fuel. for airport tenants that are considered was a simulated on-water aircraft The firefighting system at JFI currently high and medium environmental risk. crash involving 17 agencies and uses PFAS containing AFFF. Sydney In 2020, these audits identified no 200 personnel. Airport and the operator Skytanking major non-compliances in addition to Designed to test the effectiveness of several improvement opportunities to be are initiating a scoping study to our emergency response procedures, implemented in 2021 by airport tenants, transition to non PFAS AFFF for fighting the exercise reinforced the strong including improvements in storage and deep tank fires. Performance data relationship Sydney Airport has with handling of chemicals and staff training Energy and emissions management local emergency services and supporting on environmental issues. We remain committed to reducing our agencies, and provided the opportunity emissions footprint, and to be carbon A new environmental monitoring to forge new ones. neutral by 2025 in line with the Airport database was introduced in 2020 Learnings from the exercise will be to support ongoing environmental Carbon Accreditation (ACA) program. In used to update policies and procedures management. This contains our soil, 2020, we maintained our ACA Level 3 and enhance our emergency response groundwater, stormwater and air quality 'Optimisation' accreditation. preparedness. monitoring data. It is also used to gather Progress towards our target to achieve environmental data from our tier one a 50 per cent reduction in emissions Airport Operating Licence tenants, consultants and contractors. per passenger by 2025 1 has been Other information We continued our work to introduce the new Airport Operating Licence (AOL) at This year, we aligned our environmental temporarily impacted this year, due Sydney Airport in 2020. It aligns with reporting to the calendar year. The to the sharp reduction in passenger international best practice establishing 2019-20 and calendar year 2020 numbers. While our absolute emissions a direct relationship between the airport results are included in the Performance 1. Based on 2010 levels
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