Unitary Plan spurs housing development

Unitary Plan spurs housing development

Auckland Council chief economist Gary Blick says recent research provides compelling evidence that up-zoning has significantly increased Auckland’s housing supply and led to lower rents, compared to a scenario where it was never introduced.

Research on the impact of up-zoning on housing construction in Auckland by Associate Professor of Economics Ryan Greenaway-McGrevy and Distinguished Professor Peter Phillips from the University of Auckland sheds new light on the efficacy of up-zoning to address housing shortages and affordability challenges.

“Different households have different preferences, but in the main people generally want to be closer to jobs, transport and amenities — whether that is parks, schools or shops,” explains Blick.

The study, which considered the first six years since the Unitary Plan was introduced, compared parts of Auckland that were up-zoned and parts that weren’t, and used statistical analysis to determine the increase in housing development as a result.

It found strong evidence that from 2016 to 2021, almost 22,000 additional consents occurred due to the policy change.

Blick says this works out to be about 32 per cent of the total 67,000 consents over that period.

To put this into context, Blick’s own analysis shows a significant increase in dwelling consents per thousand residents since the introduction of the Unitary Plan.

In the 20 years prior to its introduction, the average number was 5.9. Since the change in policy, the average number of dwelling consents has jumped to 9.5 per thousand residents. This figure has seen Auckland surpass New South Wales and almost match Victoria.

Impact on rental prices

Blick’s analysis shows the increased housing supply may have helped limit rental price growth in Auckland.

Data from Statistics NZ’s rental price index shows that although Auckland’s rents are 22 per cent higher in nominal dollar terms since 2017, rents in New Zealand overall have grown about 50 per cent faster than Auckland over the same period.

“Research also shows that for a three-bedroom home, rents are 20-30 per cent lower than they otherwise would have been,” Blick says.

He argues that without the increased supply of housing, rental prices may have been higher, and people may have decided they couldn’t make Auckland work for them and would have chosen to leave or not come at all.

“It has given the city a better chance of holding on to some of our younger people who want to form households and of attracting people with skills who compare us with other destinations.”

Looking ahead

Blick acknowledges development under the Unitary Plan is ongoing and will require continued monitoring to assess its long-term effects.

However, these early indications are encouraging and suggest that up-zoning can be a viable strategy for addressing housing shortages. Blick says the Unitary Plan’s success is being closely observed by other cities facing similar challenges, potentially offering a valuable roadmap for tackling their own housing crises.

The Unitary Plan

Auckland’s Unitary Plan, operative from November 2016, allowed for denser housing options, such as townhouses and apartments, within existing urban areas.

Prior to the Unitary Plan, Auckland’s residential zoning was dominated by standalone houses, making it difficult to accommodate a growing population.

Up-zoning resulted in roughly 75 per cent of Auckland’s residential land being reclassified into denser categories.

Since up-zoning allows for higher-density housing options that require less land per dwelling, it allows lower development costs per dwelling and makes it more profitable for developers to build more houses, ultimately increasing supply.

An economic powerhouse

Auckland’s city centre continues to be the economic engine of New Zealand, outpacing national growth in GDP and employment for the second consecutive year.

The recent Auckland City Centre Overview report from Infometrics reveals that GDP grew by 9.2 per cent in the year to March 2023, reaching $30.4 billion and representing 8 per cent of national GDP.

This growth rate sits well above New Zealand as a whole, which increased by 2.8 per cent in the same period.

“The city centre has grown at a faster rate than the rest of Auckland and New Zealand for many years,” Blick says.

He attributes this growth to the concentration of high-value services businesses.

“The city centre is accessible for the workforce needed in this sector. Although working from home has become more of a thing, people still need to form social relationships at the workplace and engage with clients.”

Unsurprisingly, high-value services account for the largest proportion of GDP, 65.2 per cent, in Auckland’s City Centre (compared with 27.3 per cent of the national economy).

Primary industries account for the smallest proportion at 0.2 per cent (compared to 5.7 per cent in the national economy). Employment in the city centre was also up 7.3 per cent in the year to March 2023, compared with 2.5 per cent for New Zealand as a whole.

Blick acknowledges that the pandemic threw a curveball at the city centre.

“The shock really hit street-level businesses, particularly hospitality and retail, which are heavily reliant on foot traffic from tourism and students.”

Yet he remains optimistic about its long-term prospects.

“The underlying drivers of the city centre are still there,” he says, pointing to the return of tourists, students and workers and the opportunity that the City Rail Link will present. “We may have had a shock that meant that activity, population and jobs took a hit, but we’re now in a period of clawing some of that back.”

Bold investment needed for success

With Auckland’s tourism industry continuing to navigate a post-pandemic recovery, Franz Mascarenhas is urging local and central government to step up investment in attracting visitors.

Mascarenhas has been in the luxury hotel industry for more than 35 years, including leadership positions at ITT Sheraton Hotels, Hyatt Hotels Corporation and the Langham Hospitality Group.

He steered the city’s largest hotel through the pandemic, one of the few that didn’t take on MIQ guests during the Covid years. Unsurprisingly, the hotel saw significant signs of recovery from 2022.

“With international travel not being an option at the time, an overnight stay or a longer staycation quickly became a very popular treat,” he says. “This growth in demand was obviously gratefully received for a business like ours, but it brought its own set of hurdles, primarily in recruiting enough staff to meet the increased demand.”

Since then, the industry has seen a decent recovery and has come through a strong summer period. Mascarenhas says Cordis has seen occupancy rates back close to the mid-70s over the summer months, although looking ahead to the winter season, numbers do not yet look as robust.

Mascarenhas says cost of living pressures seen worldwide along with increased prices of airline fares have undoubtedly contributed to lower inbound travel numbers.

Key markets like China (151,000 visitors in 2023 compared with 407,000 in 2019) and Australia (161,000 in 2023 compared with 196,000 in 2019) have seen a significant decline from pre-pandemic levels.

“An exception we have seen at the hotel has been US visitors, thanks to the strength of the dollar and strong connectivity, with some existing US airlines increasing their schedules and new airlines like Delta flying in,” he says. (There were were 337,000 US visitors to NZ in 2023, falling only slightly from 368,000 in 2019).

To help boost tourism, Mascarenhas wants local and central government to take the importance of the sector to Auckland and New Zealand seriously.

“We are a large contributor to the Government’s GST intake, a large employer, given we are a people-related business, a large foreign exchange earner, and the conduit to much more economic activity such as shopping, eating out and entertainment.”

He says there is not enough ability for the tourism industry to effectively market Auckland or New Zealand as a destination.

“Every major event — be it business, sport, entertainment or cultural — needs significant funding to secure them to the city or country.”

Events like last year’s Fifa Women’s World Cup provide an immediate boost to the tourism industry. So too did this month’s Pink concerts, with Cordis at capacity for the shows.

However, Mascarenhas highlights the disparity between Auckland’s investment and the returns major events can bring. While Auckland struggles to raise $15 million in a year for tourism attraction, other markets pay millions just to attract a single event. Singapore’s recent investment to lure Taylor Swift pales in comparison to the economic boon her Eras show delivered, with economists estimating it generated up to NZ$600m. Had the shows been hosted in New Zealand, they could have amounted to around $70m for the country.

“Bold investments have proven to have an incredible impact on the economy and a large return on investment,” he says.

He proposes a solution is needed that not only helps to attract tourism to Auckland, but all of New Zealand. This could involve a partnership with contributions from the private sector (including all who directly benefit from tourism), central government and local councils. “The fund should be ring-fenced and exclusively used for reinvestment in tourism infrastructure and destination marketing activity.”

According to Mascarenhas, the industry is open to considering contributions through new sources of funding but wants to be involved in finding the solution.

He stresses the urgency of the consultation, given the lead time required for major events.

“We may well be losing out as we speak,” he says.

Migrant workers will help

The border opening has helped to address Cordis’ staffing challenges since the pandemic, with skilled migrants arriving in increased numbers.

“We find that combining local talent with skilled migrants, coupled with the training and development that we offer at Cordis, is a winning formula that elevates our overall standards.”

Mascarenhas says he is pleased with the business-friendly approach of the new Government when it comes to areas like wage growth, fair-pay agreements and migration. “Getting these settings correct help businesses to succeed and ultimately have a natural positive flow on effect to the workforce.”

He would like to see continued efforts to market Auckland as a great place for hospitality workers to stay.

“With the cost of living impacting everyone, the size of Auckland is an advantage compared with smaller cities which struggle when it comes to the likes of housing and job opportunities.”

After 11 years, Mascarenhas will soon step down from running Cordis Auckland and move to an advisory role with the Langham Group.

NZ has built a reputation among the best international investors

Tim McCready spoke to Angus Blair, Partner at Outset Ventures and head of its investment team.

Herald: How does the physical space of Outset Ventures foster collaboration and innovation?

Angus Blair: The Outset Campus has always been about founders helping founders and the facilities are there to enable that. The community seeks to capture the magic that helped start Rocket Lab, LanzaTech, Mint Innovation and others to get going and move quickly.

Outset is also the only place in the country that can accommodate almost every type of research operation, whether that’s heavy machinery, physical confinement, extraction, customs zones, hazardous materials or all of these things at once.

An added benefit is that it’s right here in the heart of Auckland!

Herald: What factors contribute to Auckland’s attractiveness as a hub for innovation and entrepreneurship?

Blair: All of Aotearoa is brimming with innovation and entrepreneurship, but it’s hard to understate how significant Auckland is as the heart of the industry.

It’s the centre of our migration boom, has the highest density of talent, and for companies looking to export their wares around the world, it’s typically one less flight to get wherever you need to be.

It’s worth noting that as the fastest-growing subsector in tech, it’s the best time in New Zealand history to build a deep tech company, and these businesses are largely gravitating to our largest city.

We have a legacy of major success stories like Lanzatech to learn from, and a healthy network of start-ups working across diverse problems and solutions, many from the Outset hub.

Herald: Outset operates an early-stage venture fund to support innovative ideas. How is the current climate for attracting capital into New Zealand’s deep tech innovation?

Blair: New Zealand has quietly built a reputation among the best international investors as not only the birthplace for great deep tech companies, but the place they grow, and ultimately provide phenomenal returns.

As with all fundraising, high interest rates and low liquidity in public markets mean that fund investors aren’t able to deploy as readily as they would like. However, increasingly the money that was flowing to software during Covid is now being redirected to deep tech, where investors are seeing greater potential return on investment.

Herald: What more would you like to see happen in Auckland to attract and nurture talent?

Blair: I’d like to see our schools from Year 1 to 13 get the support and strategy they need for New Zealand to get back near the top of the OECD for science and maths. We’ve really fallen behind and it’s hard for our universities to get people where they need to be from that starting point.

We certainly still produce the outlier talents that start companies and great people want to move here, but to grow these important businesses we also need to nurture and grow the workforce capable of operating them.

Herald: What developments or trends in deep tech are you excited about for New Zealand in the coming year?

Blair: I think trends are over-rated when you’re in a market as small as New Zealand. One company doesn’t make a trend, so we just try to look at the most compelling founders going after the biggest problems off the back of advances in science and engineering.

Yes, we are building incredible capability in areas like aerospace or biosciences, but does that explain that the most exciting start-up last year was in nuclear fusion?

Our philosophy is to keep meeting the world-class founders who this country produces and to understand their aspiration to build impactful, world-class businesses, whatever they might be doing.

 

 

 

Mayor on the Port - 'It's a pragmatic approach'

Auckland mayor Wayne Brown was elected on a platform of moving the Port of Auckland.

But he has now made selling a lease to operate the port a cornerstone of his 10-year budget, known as the Long-Term Plan (LTP).

Critics have questioned Brown’s approach, concerned the port lease would keep cargo locked in its current location for an extended period.

But he says the proposed 35-year lease is a pragmatic solution to extract maximum value from the port. The phased approach would see the return of Captain Cook and Marsden wharves to the public in two years, with Bledisloe North following in 12 to 15 years.

This phased approach would mitigate against a significant drop in land value if the entire port operation was put up holus-bolus.

“If we get it back progressively, the market has shown it can pick up about 5 hectares a year and still pay top price,” Brown says. “If you put it all up straight away, the price will drop sufficiently that even I’d be able to buy a few hectares of it.”

Detractors say the port is a strategic asset and should be kept by the city to retain jobs.

Brown explains his proposal would lock in a 35-year commitment, providing certainty to businesses and workers about the long-term footprint of the Port.

“If we offer a lease for 35 years, the jobs will be there for 35 years. If we don’t sell a licence, it will be gone in 10 years.

“Winston and I will be under way dismantling the port.”

He is adamant he will not carry on using the rates paid by some 35,000 houses to cover the difference between what the port makes and the cost of ownership.

Brown acknowledges it might look as though he has done a flip but says the one thing he knows is you have to compromise.

“All those people who think the port will stay there forever are dreaming,” he says.

“I am being accused of changing my mind, but it’s a pragmatic approach. I’m the ultimate pragmatist.”

Dynamic Business: ASEAN key to ambitious trade goals (NZ Herald)

Dynamic Business: ASEAN key to ambitious trade goals (NZ Herald)

Over the past five years, New Zealand’s economic ties with Asean (the Association of Southeast Asian Nations) have undergone significant growth, from $17.15 billion in 2017 to $27.42b in 2022.

With 10 member states, the union is New Zealand’s third-largest trading partner — we now trade more in a week with Asean than we did in an entire year in the early 1970s.

The National-led Government has set an ambitious trade goal to double the value of our exports within a decade. Despite the region navigating the same economic challenges that echo worldwide, it is clear Asean will be an important component in New Zealand reaching its lofty ambitions.

The NZ Asean Business Alliance Conference in Kuala Lumpur last month saw more than 250 attendees gather from across the region and New Zealand to explore the tremendous opportunities inherent in mutual collaboration. There is a keen interest to do more and a desire from Asean to deepen its ties with New Zealand.

An economic anchor

Dynamic Business: NZ ministers tout Government’s trade ambitions at US summit (NZ Herald)

Dynamic Business: NZ ministers tout Government’s trade ambitions at US summit (NZ Herald)

Key coalition ministers have articulated a unified vision for New Zealand’s future that embraces innovation, value uplift and enhanced diplomatic ties with the United States and beyond.

The have also pledged to undertake a record number of trade missions in the Government’s first term — more than any government in the history of New Zealand.

Speaking at last week’s United States Business Summit, Foreign Affairs Minister Winston Peters and Trade Minister Todd McClay delivered their first major speeches since the Government’s formation to a room packed with business leaders.

Peters outlined specific actions to unlock economic potential, including maximising the value of bilateral trade, resolving barriers to trade and strengthening supply chains. He stressed the importance of collaboration in industries that are key to building a more prosperous and secure future, including critical technologies and space.

He also spoke of the enduring and special relationship between New Zealand and the United States.

Silver Fern Farms’ Rob Hewett wins Chairperson of the year at Deloitte Top 200 awards (NZ Herald)

Silver Fern Farms’ Rob Hewett wins Chairperson of the year at Deloitte Top 200 awards (NZ Herald)

Rob Hewett, a prominent figure in New Zealand’s agribusiness sector, has been honoured as the 2023 Chairperson of the Year at the Deloitte Top 200 awards, celebrating his impressive leadership roles and the business success he has overseen.

Hewett is co-chair of Silver Fern Farms, a leading producer and global marketer of grass-fed red meat, owned in equal partnership by Silver Fern Farms Co-operative (a farmer co-operative that he also chairs) and Shanghai Maling Aquarius.

He is also chair of Farmlands Cooperative, Pioneer Energy, Woolworks, Fern Energy and Haulage.

Hewett has directorships at Pulse Energy and T&G Global.

Additionally, he actively manages a carbon-positive farm and participates in a think-tank for agricultural innovation.

Xero, Tourism Holdings, Grant Webster, Sir Richard Taylor, NZME among Deloitte Top 200 winners (NZ Herald)

Xero, Tourism Holdings, Grant Webster, Sir Richard Taylor, NZME among Deloitte Top 200 winners (NZ Herald)

Cloud accounting heavyweight Xero has been recognised as the Company of the Year in the 2023 Deloitte Top 200 Awards for its transformative year marked by significant milestones.

Winners in the prestigious Deloitte Top 200 Awards were revealed tonight at Auckland’s Viaduct Events Centre. Now in its 34th year, the highly anticipated black-tie dinner event saw close to 900 business leaders gather to celebrate the best of New Zealand business.

This year, the awards recognise outstanding agility, resilience and results despite the pressures that business leaders have faced. Notably, they have navigated through the persistent cost-of-living crisis, inflationary pressures, geopolitical complexities, global unrest, and the severe weather events earlier this year.

After a difficult year in 2022, Xero completed a significant restructuring and saw strong revenue, subscriber, and share price growth. Founder Rod Drury formally stepped down from the board of directors after 17 years, and Sukhinder Singh Cassidy has taken on the role of chief executive.

Last month, Xero delivered a strong bottom-line result for the half-year to September 30, reporting a revenue rise of 21 per cent to $799.5 million and net profit increasing to $54.1m, compared to a net loss of $16.1m in the first half of the previous financial year.

The panel of high-profile judges, convened by NZME business editorial director Fran O’Sullivan, note Xero’s outstanding performance.

“Xero is an extraordinary Australasian success story and our leading high-tech success unicorn. Its current market capitalisation of over $15 billion makes it the most valuable NZ company, and one of the top 20 companies on the ASX,” they say.

“Xero has maintained strong margins and is keeping a disciplined focus on costs. This resulted in adjusted Ebitda up by 44 per cent in 2023 over 2022 and a share uplift of 44 per cent for the year ended September 30, 2023.”

Grant Webster, CEO of Tourism Holdings, was named Chief Executive Officer of the Year for his exceptional resilience and strategic prowess, particularly during the Covid-19 pandemic.

His leadership was crucial in navigating the world’s largest campervan rental company through a drastic downturn in international travel. By selling assets to protect shareholder value, he achieved record results, showcasing his ability to make tough yet effective decisions.

“Webster’s 15-year tenure as CEO has been defined by steering the company through major crises and positioning Tourism Holdings for future growth,” say the judges. “Tourism Holdings’ strategic expansion, combined with Webster’s adept relationship-building, spurred a remarkable financial recovery: turning a $2.1m loss into a $49.9m profit and a 92 per cent increase in revenue.”

“His legacy is that of a transformative leader who successfully converted challenges into opportunities for innovation and growth.”

The Visionary Leader award is the only one given without finalists. This year, the award went to the creative duo behind Wētā Workshop, Sir Richard Taylor and Tania Rodger. Renowned for their award-winning work on blockbuster films, their influence extends to tourist attractions, a digital game studio, and cultural collaborations in China.

“Sir Richard and Tania’s passion and creativity has brought imaginations to life, inspired millions, and put New Zealand’s creative industry on the world map,” say the judges. “They are New Zealand icons and true visionary leaders.”

Chairperson of the Year has been awarded to Rob Hewett. A prominent figure in New Zealand’s agribusiness sector, Hewett is co-chair of grass-fed red meat producer and marketer Silver Fern Farms and chair of Silver Fern Farms Co-operative. He is also chair of Farmlands Cooperative, Pioneer Energy, Woolworks, Fern Energy and Haulage and has directorships at Pulse Energy and T&G Global.

“Hewett has a very clear vision for the businesses he chairs, he communicates that well and maintains solid relationships with his managing directors,” the judges say.

They recognise that last year was a banner year for Silver Fern Farms and applaud Hewett for playing a significant role in its result, which saw a net profit after tax of $189.3m, representing an 82 per cent increase.

Xero’s chief financial officer, Kirsty Godfrey-Billy, was also recognised last night, taking out the award for Chief Financial Officer of the Year.

The judges say that during Godfrey-Billy’s five years as CFO, Xero New Zealand’s revenue has increased from about $550m to $1.4b – up 250 per cent.

“Godfrey-Billy is respected by the market, board, management and other stakeholders for her financial management over this period of growth, which includes developing and maintaining financing and tax management in multiple countries,” they say.

“During her time as CFO, the company has moved from a start-up approach in which revenue is paramount, to a more mature company, where revenue and profit growth are both important.”

Port of Auckland has been named winner of the Most Improved Performance award, for its remarkable turnaround in profitability and operations.

“By establishing effective strategies, the port has improved its financials, union relationships, health and safety practices, and operational performance,” the judges say. “Its profits and revenue have skyrocketed – with profit up $50.7m on last year and revenue increasing from $265.3m to $320.2m. The port has nearly doubled the dividend it pays to Auckland Council, which really demonstrates its commitment to delivering returns to shareholders.”

Natural health products provider Comvita has been recognised with the Best Growth Strategy award. The judges say its recent transformation programme, focused on sustainability and storytelling, has helped consumers connect with the brand, and secured rapid growth for the company.

“Comvita has seen strong business performance in China, its key growth market, where it has grown its revenue to $100m. It has also increased its e-commerce share of total sales from 23 per cent to 42 per cent.”

Penny Dell, Treasurer at ANZ, has been named Young Executive of the Year. She is the youngest and first woman to hold the role of Treasurer which involves the management of the funding, capital and liquidity of the bank’s $189b balance sheet – a critical, strategic position for New Zealand’s largest bank.

The judges say Dell is performing at a high level within a very large organisation: “She holds a position of great responsibility within the ANZ organisation and is clearly recognised as a valuable asset”.

Her time in the job has been through a period of significant market volatility. Dell has been responsible for completing many successful funding and capital transactions that have given her bank a competitive advantage.

NZME’s Te Rito journalism project is the winner of the Diversity & Inclusion Leadership award, a 12-month cadetship programme designed to enhance newsroom diversity, specifically focusing on Māori, Pasifika, ethnic, LGBTQIA+, and disabled voices. This initiative aims to provide entry points into media careers across various platforms, including digital, print, television, radio, and podcasts.

The judges were impressed by the novelty of the concept, the collaboration with other media industry players and the potential diversity and inclusion benefits to the nation. They say the partnership and the continuous learning embedded in the programme have ensured it is sustainable.

Gentailer Contact has received the Sustainability Leadership award for its dedication to spearheading New Zealand’s decarbonisation. It has more than $1.2b worth of renewable generation projects currently under construction, and a significant portfolio of further potential geothermal, wind, solar, and battery investments in the pipeline.

“We are impressed that Contact’s efforts in the space are driven and supported by leadership and filter across the national business,” the judges say. “They have created a galvanising framework for decarbonisation that attracts diverse talent and genuine innovations for sustainability actions.”

The Deloitte Top 200 awards include a special Judges’ Award. This award enables the judges to highlight performance they feel is of importance to the business community.

This year, there was a unanimous decision for John Loughlin to receive this award, who has dedicated his career to New Zealand’s agribusiness and infrastructure sectors.

With a governance career spanning three decades, Loughlin serves on a number of boards across critical industries, including Port of Napier, Toll New Zealand, Augusta Capital, Metlifecare, AgResearch, Prism Group Holdings, Central Lines, Dairy Technology Services, KiwiRail and Hop Revolution.

“Loughlin is an extremely talented and highly regarded director who relishes digging into companies and helping them to reach their full potential,” the judges say. “He particularly excels when providing leadership to industries that are challenged.”

“Loughlin’s often finds himself chair at companies he first joined as a director, which shows just how effective and well-regarded he is around board tables. It’s really no surprise that he’s in high demand for the country’s senior governance roles.”

Deloitte chief executive Mike Horne reflected on the last year and its effect on the business community, “with a cost-of-living crisis, inflation, global unrest, and severe weather events, our communities and our economy have taken a beating, but it’s within this challenging landscape that we’ve seen the most resilient and innovative organisations emerge successful.”

“The businesses recognised on the Top 200 have displayed innovative and thoughtful solutions, including creatively rethinking products and services, that have undoubtedly ensured the long-term survival of their businesses, and it’s what has made them our ‘champions of adaptability.’

Returning in her role as judging convener for the 34th year of the awards, NZME’s Fran O’Sullivan said “the Top 200 gives us an opportunity to celebrate unmatched leadership and team performances from the best in New Zealand business.”

“It takes a lot of business prowess to deliver strong results in challenging times, and even more to be at the forefront of our economy, committed to leading the way.”

Deloitte Top 200 Index

The Deloitte Top 200 Index consists of New Zealand’s largest entities ranked by revenue. These include publicly listed companies, large unlisted entities, NZ subsidiaries and branches of overseas companies and the commercial operations of Māori entities. It also includes producer boards, co-operatives, local authority trading enterprises and state-owned enterprises.

An overview of the Top 200 Index as well as New Zealand’s Top 30 finance companies has been included toward the back of this report — showing revenue, profitability, efficiency and more. These numbers offer an insight into how the biggest companies in New Zealand operate and are accompanied by explanations and insight from the Herald’s team of business reporters.

The high-level view of the Top 200 this year shows total revenues for Top 200 companies increasing by 12.4 per cent. This compares to a 9.8 per cent increase in 2022. Underlying earnings (Ebitda) increased 8.1 per cent, and total profits after tax also increased 4.0 per cent year-on-year.

Year-on-year assets for the Top 30 finance companies have grown 9.3 per cent, with cumulative profits increasing by 11.4 per cent.

ANZ continues to be the largest bank with assets of $201b, ahead of second placed Westpac by $65b. ANZ also outpaces all other banks in terms of profit and equity.

Deloitte Top 200: Contact Energy wins Sustainability Leadership Award (NZ Herald)

Deloitte Top 200: Contact Energy wins Sustainability Leadership Award (NZ Herald)

Contact is dedicated to playing its role in creating a more sustainable future for New Zealand by leading the country’s decarbonisation efforts, and is making significant progress to achieving net-zero carbon by 2030.

This long-standing commitment to sustainability from the gentailer, coupled with the actions it has made, made it a stand-out winner for the Deloitte Top 200 Sustainability Leadership Award. The award recognises exemplary governance, leadership, accountability and long-term perspectives from companies as they evolve and adapt their business models to support and drive sustainable development.

The Deloitte Top 200 judges commended Contact for its significant efforts to decommission assets that generate electricity from fossil fuels, signifying a clear shift towards renewable energy sources and a clear intent to help decarbonise New Zealand, despite the absence of an overarching national energy strategy.

“We are impressed that Contact’s efforts in the space are driven and supported by leadership and filter across the national business. They have created a galvanising framework for decarbonisation that attracts diverse talent and genuine innovations for sustainability actions,” said Katie Beith, one of the judges in this award category.

Contact is actively investing in the future of sustainable energy with $1.2 billion in renewable generation currently under construction. This pipeline of projects includes geothermal, solar, wind and grid-scale batteries, which will see it not only reduce its carbon profile but also assist its customers in their decarbonisation efforts.

Contact chief executive Mike Fuge is enthusiastic about what this means for the future of New Zealand. “These investments are key to enabling Aotearoa New Zealand to meet its decarbonisation goals,” he says.

“We expect our generation portfolio to be more than 95 per cent renewable by FY27 and have set the ambitious goal to achieve net-zero emissions from our generation operations by 2035.”

Contact’s efforts have already boosted its renewable energy capacity to more than 80 per cent and led to a remarkable 33 per cent reduction in greenhouse gas emissions from generation since 2018.

Its world-class geothermal development near Taupō, Tauhara, will come on-stream in 2024.

It will be Contact’s sixth geothermal power station in the Taupō area.

Contact now has a pipeline of projects ahead of it in Taupō, including an expansion of its Te Huka geothermal plant and a replacement of the 1950s-era Wairākei geothermal power station.

“The wonderful thing about having a pipeline of projects around Tauhara is we can attract the workforce in for a project, and they get the opportunity to roll off on to the next project,” says Fuge.

The judges say a particularly commendable aspect of Contact’s sustainability efforts is its commitment to meaningful engagement with iwi and hapū, especially at the Tauhara plant, which shows a deep respect for indigenous involvement in sustainable energy projects.

In addition to its geothermal projects, Contact is pursuing other renewable energy projects, including a solar project at Christchurch Airport which will have around 300,000 solar panels on 300 hectares of land adjacent to the airport’s runways.

It is looking to develop a wind farm on the elevated land east of Wyndham in Southland.

This would be Contact’s first wind farm project and, with a plan for about 55 turbines generating as much as 300 megawatts of power, it would be New Zealand’s largest.

US Business Summit 2023: Call to Order, Tim McCready

CALL TO ORDER

MC: Tim McCready

—

United States Business Summit 2023 30 November 2023 at Cordis, Auckland. Brought to you by NZ INC. and Auckland Business Chamber.