Environmental performance

Environmental sustainability remains an important element of DPC's operational strategy, reflecting the department’s commitment to reducing its environmental footprint. The Financial Reporting Direction (FRD) 24, which now includes 42 key reporting indicators, guides the department’s environmental performance tracking.

DPC’s commitment to sustainability in its operations is demonstrated through several key initiatives, including:

• integrating environmental considerations into tender specifications to promote responsible procurement practices
• utilising a tri-stream waste disposal system within offices (landfill, commingled, and organics) to encourage waste reduction andrecycling
• prioritising energy efficiency using energy-saving appliances and sensor lighting
• sourcing sustainable and locally produced furniture, with an emphasis on certifications like Global GreenTag
• adopting responsible relocation practices with a focus on sustainable wastemanagement
• recycling usable furniture and equipment during refurbishments or relocations to minimise waste
• adopting digital solutions where possible to reduce paper usage and shift towards more sustainable practices.

DPC’s ongoing efforts aim to support the Victorian public sector in adopting technologies and practices that lower emissions and enhance environmental sustainability, contributing to a greener and more environmentally responsible future.

DPC’s environmental management system

DPC is committed to developing a comprehensive Environmental Management System (EMS) in line with the AS/NZS ISO 14001:2016 standard. As an interim measure while the EMS is developed, the department has integrated environmental considerations and embedded sustainable practices across its operations. These efforts lay the foundation for a robust EMS that will guide and mature DPC’s environmental management into the future.

Reporting boundary for environmental data

This report details DPC’s environmental performance for 1 July 2023 to 30 June 2024, with data sourced from consumption reports, audits, and surveys. This data encompasses all sites where DPC conducts its operations, and the relevant activities of departmental staff (e.g. travel).

Where DPC staff are located within another Victorian Government entity’s facility, the entity who is the owner or primary lessee is responsible for FRD 24 reporting for all staff in the building.

Where consolidated data from DPC entities is included, it is noted in the footnotes of the corresponding tables below. Conversely, data from DPC sites housing minimal staff from other entities is included where relevant.

Some datasets may reflect inflated figures due to the inclusion of measures for other entities, with migration of reporting systems and data to the relevant entity to be completed in future periods. These instances are noted in the corresponding commentary.

For comparative analysis, certain data indicators have been normalised using full-time equivalents (FTE). This normalisation provides a clearer view of performance and facilitates trend analysis.

Certain environmental metrics, such as water, gas, and waste were not available for all DPC sites due to factors including landlord metering systems and data measurement methods. DPC will continue to improve its data collection practices over the coming year to address gaps in future reports.

DPC will continue to enhance its data collection processes by engaging with both internal and external data sources aligning with FRD24 requirements.

Climate-related risk disclosure statement

The Victorian Government has set ambitious goals to reach net zero emissions by 2045 and to build resilience to climate change.

The DPC Board of Management recognises its climate-related risk management responsibilities and the potential for climate change to impact the delivery of the department’s services.

At the operational level, DPC is working with other departments on coordinated actions to address climate-related risks to government operations.

Furthermore, DPC’s Economic Policy and State Productivity group provides policy advice on whole-of-government climate policy initiatives. DPC also contributes advice to a number of cross government climate action groups.

Climate-related risk governance

The DPC Board of Management is responsible for the organisation’s risk management framework and regularly reviews any changes to the risk environment and the effectiveness of risk mitigation activities.

DPC, along with other Victorian Government departments, established a baseline of its climate-related risk maturity through a self-assessment survey in July 2023. DPC provides six-monthly reports to the Victorian Secretaries’ Board on progress to increase this risk maturity. To further uplift DPC’s climate risk maturity, DPC will undertake climate risk assessments of physical assets.

DPC’s Audit and Risk Management Committee provides independent assurance to the Secretary that the department’s risk and control environment is operating effectively and efficiently. The committee monitors the department’s compliance with the Victorian Government Risk Management Framework. The internal audit program provides further assurance that the department’s key risks to the achievement of the department’s objectives are appropriately managed.

Climate-related risk strategy

DPC receives accommodation and vehicle services from its shared services provider, DGS.

DGS applies relevant policies for DPC to improve the environmental performance of government buildings and vehicle fleet, in line with Victoria’s Climate Change Strategy.

While DPC’s physical assets are not greatly exposed to climate risks or hazards, DPC continues to build its understanding of the potential impacts of climate-related risks on its operations, workforce and financial planning. These include:

• reducing greenhouse gas emissions resulting from DPC operations in line with Victorian Government commitments
• improving environmental performance monitoring, evaluation and reporting of DPC operations
• supporting the continued uptake of renewable energy and other low-emissions technologies across Victoria
• monitoring the impact of increased temperatures and extreme heat on DPC operations including the health and safety of staff that attend events outdoors.

DPC will also be completing portfolio emissions reduction plans to identify actions to reduce direct carbon emissions.

Climate-related risk management

DPC’s Risk Management Framework requires consideration of the operating context to identify, assess and manage risks and opportunities. The framework is aligned to the Victorian Government Risk Management Framework and provides guidance for designing, implementing, monitoring, reviewing and continually improving risk management in DPC.

Climate-related metrics and targets

DPC reports climate-related metrics in line with government reporting requirements set out in FRD 24.

Data is obtained from suppliers, equipment metering, reports and surveys and is used to assess and manage relevant climate-related risks and opportunities.

DPC works with internal and external stakeholders to support achievement of the whole-of-government targets established under Victoria’s Climate Change Strategy including:

• The Victorian Government legislated interim targets to reduce emissions by 28–33 per cent below 2005 levels by 2025, 45–50 per cent by 2030, 75–80 per cent by 2035, and a net zero emissions target by 2045.
• The Victorian Government emission reduction pledge which includes sourcing 100 per cent of electricity used in government operations from renewable sources by 2025.
• From 2021, a requirement for all new Victorian Government buildings having embedded environmentally sustainable design. A minimum five-star energy performance rating applies to new office buildings and tenancy fit-outs. This will be increased to six-star (the highest rating for office buildings) in 2025.
• Participating in planning to consolidate its workforce to a smaller office footprint, in line with whole of Victorian government strategy, which will contribute to emissions reductions.
• Prioritising high NABERS (National Australian Built Environment Rating System) rated leased premises in line with the Victorian Government Green Lease

Greenhouse gas emissions

Greenhouse gas emissions are categorised into ‘scopes’ consistent with national and international reporting standards:

• Scope 1 refers to emissions from sources that DPC owns or controls, such as burning fossil fuels in vehicles or machinery.
• Scope 2 refers to indirect emissions from the department’s use of electricity from the grid, which still relies on coal and gas-fired power generation.
• Scope 3 refers to indirect emissions from sources DPC does not control but can influence. DPC’s scope 3 reporting includes corporate air travel and waste disposal.

DPC now includes data on fleet vehicle usage and subsequent vehicle fuel use within Scope 1 greenhouse gas emissions, resulting in a reported increase against previous years.

DPC’s Scope 2 greenhouse gas emissions decreased from 2022–23 to 2023–24. This decrease reflects a reduction in DPC’s workforce and corresponding accommodation requirements.

The department’s Scope 3 greenhouse gas emissions from corporate air travel and waste disposal increased from 2022–23 to 2023–24. This increase can be attributed to two factors:

• an increase in air travel activities
• Victorian Government entities, that once fell under DPC, continuing to be captured by DPC’s reporting systems.

Greenhouse gas emissions from corporate air travel were offset through the CTM Climate+ program, which supports initiatives such as rainforest conservation, sustainable livelihoods, wildlife protection, and renewable energy. DPC is now fully covered by this program and has backdated its involvement to cover the 2022–23 reporting period, thereby offsetting emissions from that period as well as 2023–24.

Electricity production and consumption

DPC’s electricity consumption reporting covers tenancies at the following sites:

• 1 Macarthur Street, East Melbourne
• 1 Treasury Place, East Melbourne
• 3 Treasury Place, East Melbourne
• 35 Collins Street, Melbourne
• 300–304 Mair Street, Ballarat.

The total electricity consumption for DPC over the 2023–24 reporting period was 1,600 megawatt hours (MWh), which is a 17 per cent decrease from the previous reporting period. This decrease can be attributed to a reduction in DPC’s FTE and, therefore, accommodation footprint following significant Machinery of Government changes.

DPC exclusively leases offices with electricity, gas and water as the sole energy sources, without ownership or access to any other energy sources.

Stationary fuel use

DPC’s stationary fuel consumption reporting covers tenancies at the following sites:

• 1 Macarthur Street, East Melbourne
• 1 Treasury Place, East Melbourne
• 3 Treasury Place, East Melbourne
• 35 Collins Street, Melbourne
• 300-304 Mair Street, Ballarat.

Total fuel use in buildings for 2023–24 was 2,265,563 megajoules (MJ). Unlike total electricity consumption, the reduction in DPC’s accommodation requirements has not led to a decrease in reported total fuel use in buildings. There are some limitations in gas data in certain DPC sites, resulting from different metering systems and data measurement methods. Greenhouse gas emissions from stationary fuel consumption totalled 117 tonnes CO2-e.

Transportation

DPC uses vehicles from both VicFleet and from the Accommodation, Carpool and Library Services (ACLS) Carpool Services for operational car travel.

The DPC Travel Policy and Procedure stipulates that government business travel should only be undertaken if it is expected to deliver a return on investment; otherwise, alternatives methods (e.g. conference calls, video calls) should be pursued. Such alternatives support the State’s environmental policy objectives by promoting resource-efficient technology.

The reported increase in energy used in transport fuels and greenhouse gas emissions from the vehicle fleet is due to an amended reporting methodology that now includes additional VicFleet data attributed to the department.

In 2023-24, DPC operated a fleet of 81 vehicles from VicFleet, to meet its operational requirements

For the reporting period, commercial air travel increased, driven by two primary factors:

• Business requirements; the distance travelled by air is comparable to 2018–19 levels.
• Victorian Government entities, previously under DPC, continue to be captured by DPC’s reporting

Total energy use

DPC’s energy consumption covers tenancies at the following sites:

• 1 Macarthur Street, East Melbourne
• 1 Treasury Place, East Melbourne
• 3 Treasury Place, East Melbourne
• 35 Collins Street, Melbourne
• 300–304 Mair Street, Ballarat.

During the 2023–24 reporting period, DPC's total energy use was 9,774,995 MJ. This total includes energy from both fuels and electricity; details on these contributors are outlined in the relevant sections of the report. The total energy use is further broken down by source, with renewable energy decreasing by 16 per cent and non-renewable energy increasing by 8 per cent.

While data indicates energy use per FTE increased, the result is primarily due to differences in reporting methods, particularly for transportation data between reporting periods, rather than material changes in actual energy consumption.

Including additional VicFleet data has also impacted results for energy used in transport fuels and greenhouse gas emissions. With the new baseline established for future reporting, DPC is in a better position to more accurately monitor and report on energy use to inform development of its Environmental Management System and associated initiatives to improve sustainability outcomes.

Sustainable buildings and infrastructure

Leases for DPC, negotiated and managed by DGS through outsourced service providers, incorporate a Green Lease Schedule within the Standard Government Lease. This schedule outlines obligations for both landlords and tenants to maintain properties to a minimum NABERS rating for energy, water, waste, and indoor environment.

During site acquisition and lease negotiation, sustainability requirements are prioritised. The Green Lease Schedule is proposed to landlords or managing agents with each new lease negotiation. However, in cases where premises are not subject to Commonwealth mandatory disclosure laws or landlords are unwilling to include these obligations, ACLS and its outsourced provider work with landlords to implement energy efficiency, emission savings, and cost improvements.

The Green Lease Schedule mandates a NABERS Energy rating for all leases, with additional performance requirements for larger tenures. It also requires the installation of efficient lighting systems and data sharing to support energy and emissions reporting.

DPC discloses a summary of NABERS ratings for its occupied premises, based on data downloaded from the NABERS public portal. One main office building has received an environmental performance rating, as detailed in the table below. No new buildings were commissioned by DPC in this reporting period, and no NABERS ratings were conducted on owned buildings or as part of tenancy fit-out works in this reporting period.

There are no newly completed DPC-owned non-office building or infrastructure projects or upgrades valued over $1 million.

Sustainable procurement

DPC continued to commit to the sustainable practice of environmental considerations in tender specifications for project-specific tender documents including environmentally sustainable outputs, business practices and implementation of Climate Change Policy objectives.

Water consumption

DPC’s water consumption reporting covers tenancies at the following sites:

• 1 Macarthur Street, East Melbourne
• 1 Treasury Place, East Melbourne
• 3 Treasury Place, East Melbourne
• 35 Collins Street, Melbourne
• 300–304 Mair Street, Ballarat.

Total water consumption for DPC during the 2023–24 reporting period was 4,705 kilolitres (kL).

Waste and recycling

DPC’s waste reporting covers tenancies at the following sites:

• 1 Macarthur Street, East Melbourne
• 1 Treasury Place, East Melbourne
• 3 Treasury Place, East Melbourne
• 35 Collins Street, Melbourne.

During the 2023–24 reporting period, DPC generated a total of 24,674.22 kilograms of waste, reflecting a decrease from the previous year. Reporting on secure document destruction, which is usually included in co-mingled recycling waste, is lower than expected. This has resulted in an understated decrease in the overall recycling waste figures for this reporting period.

Greenhouse gas emissions related to waste disposal also decreased. DPC continues to maintain dedicated processes for the disposal of e-waste and printer cartridges across all key office sites.

Notes

¹These include the offices of DPC and the Office of the Chief Parliamentary Counsel.

² Electricity and gas usage data was provided by outsourced providers via retailers who operate under the State’s energy purchase contracts.

³ The 2023–24 figures in this annual report contain accrued values for electricity consumption.

⁴ These include the offices of DPC and the Office of the Chief Parliamentary Counsel.

⁵Electricity and gas usage data was provided by outsourced providers via retailers who operate under the State’s energy purchase contracts.

⁶The 2023–24 figures in this annual report contain accrued values for stationary fuel consumption.

⁷Reported emissions include those from both long-term VicFleet vehicles and short-term hire vehicles from ACLS Carpool Services

⁸Electricity used to charge vehicles at DPC sites is not metered separately and is included in the total electricity consumption.

⁹Electricity used to charge vehicles at DPC sites is not metered separately and is included in the total electricity consumption.

¹⁰Under a revised reporting methodology, ACLS Carpool Services vehicles used by DPC for short- and medium-term hire are now reported by DGS, which manages their operations.

¹¹NC denotes ‘not collected’, in instances where data from previous reporting periods is not available. This is due to the changing key reporting indicators that came into effect in the 2022–23 reporting period

¹²These totals include the offices of DPC and the Office of the Chief Parliamentary Counsel.

¹³The 2023–24 figures in this annual report contain accrued values for electricity and stationary fuel consumption.

¹⁴These include the offices of DPC and the Office of the Chief Parliamentary Counsel.

¹⁵The 2023–24 figures in this annual report contain accrued values for water consumption.

¹⁶These include the offices of DPC and the Office of the Chief Parliamentary Counsel.

¹⁷‘NC’ denotes ‘not collected’ in instances where data from previous reporting periods is not available. This is due to the changing key reporting indicators that came into effect in the 2022–23 reporting period.