Z Energy “proud” to support biodiversity partners
Learning about the relationship between business and biodiversity has been a hugely valuable exercise for Z Energy (Z).
“Z is very aware of the emissions resulting from the fuel we sell. While we have a responsibility to continue to meet New Zealanders’ energy needs now, we believe our role is to make alternative energy choices easier for our customers too,” says Abbie Bull, Head of Community and Sustainability at Z.
Earlier in the year, Z released its Climate Statements under the Aotearoa New Zealand Climate Standards regime, one of a handful of companies to disclose a transition plan. While investment in the energy transition is a key part of Z’s strategy, the issue of biodiversity loss and degradation can’t be ignored, says Bull.
In 2022, Z launched its annual $1 million Biodiversity Fund, to support initiatives designed to improve the resilience of Aotearoa New Zealand’s indigenous biodiversity. To help progress the headline goal of restoring nature, Z formed three foundation partnerships with not-for-profit organisations – the Sustainable Business Network (SBN), Trees That Count and The Nature Conservancy Aotearoa (TNC).
Z selected organisations who had the skills and experience to deliver impactful biodiversity projects and where there was alignment on strategic issues needing to be addressed.
“Our partners are well established in their fields with technical expertise and are great at enabling collective efforts while engaging with a wide range of stakeholders,” says Bull. “One of the real benefits of working with organisations involved in on-the-ground restoration efforts is the opportunity for our staff to learn about nature’s contribution to people and hear first-hand about the challenges in restoring biodiversity resilience.”
As part of this, representatives from all three partners met with Z’s leadership team to discuss the work they do and what could be achieved through the fund. “I think our leadership came away really inspired. It deepened their understanding about the connection between nature and human well-being and solidified their commitment,” says Bull.
Like climate change, the loss of nature is becoming recognised as an economic and financial risk on an international scale. Around the globe, there are heightened stakeholder expectations for companies to understand their reliance on nature and the associated risks.
Ecosystems are important for addressing the impacts of climate change and for carbon sequestration, but a singular focus on climate can have negative impacts on our indigenous biodiversity which is already under pressure, says Bull: “Planting native trees is disadvantaged due to the stronger financial incentives to plant fast-growing pine, and our voluntary carbon offsetting market currently lacks clear guidance and incentives.
“There are also important ecosystems like coastal wetlands that are currently not included in carbon accounting systems.
“Rebalancing the differential between exotic and native trees requires investment and delivery organisations need certainty of funding. To help with this, we made donations to our partners over consecutive years since Z’s Biodiversity Fund launched.”
Last year, Z helped fund SBN’s Nature Systems Change Programme, including supporting the release of its flagship report Regenerating Nature in Aotearoa New Zealand: The Transformative Role of Business.
The report, which aims to encourage businesses to increase action and investment, found key barriers including financial constraints and a lack of understanding and knowledge around the value of nature-based investments to their business.
Bull believes all businesses could benefit from engaging with the nature-restoration sector: “Most businesses understand they’ll be impacted by climate change, it’s probably one of their most material risks. But many lack a clear understanding of the biodiversity crises and more so, relevance to their business resilience and long-term profitability.
“Maybe they don’t think nature is an issue they can wade in on or they don’t know what to do about it. Or they might be worried about greenwashing. These are all inhibitors for positive action from business, yet it’s such a critical issue.”
Establishing a relationship with and getting closer to the sector is a good way to start, she says: “Stakeholders, consumers and investors are concerned about a wide range of issues, not just climate change. It’s not about choosing one over the other; we need to tackle these challenges together and solve climate, nature and social issues together.”
Working to restore nature
The Z Biodiversity Fund has three criteria – to support innovation that accelerates nature restoration, improve financial incentives for ecosystems most vulnerable to climate change and to invest in restoration projects that provide meaningful social benefits.
Close to a small cluster of Z’s sites in South Auckland, a programme supported by SBN is under way to regenerate the Puhinui catchment and provide employment opportunities for local rangatahi. The project was originally kickstarted with the help of seed funding from the Department of Conservation’s Mahi mō te Taiao Jobs for Nature funding; Z was one of the private funders ready to step in and fill the funding gap when the government’s financial contribution ceased.
“We wanted to focus on where it makes sense for our business and to our stakeholders,” says Bull.
Support to SBN for the Puhinui Regeneration Project flows through to its delivery partners Te Pu-a-Nga Maara and Makarau Marae Native Nursery and has created new roles contributing to planting and pest control, as well as a new vehicle and infrastructure upgrades for the Makaurau Marae Native Nursery.
In 2023, the Biodiversity Fund also supported the Nature Conservancy Aotearoa’s New Zealand Coastal Wetland Programme which set up seven blue carbon pilot sites to investigate how Aotearoa New Zealand’s coastal wetlands can help be restored through sustainable financing mechanisms.
The programme is tracking well, with data collection and monitoring already under way, coastal resilience modelling in progress at two sites, and blue carbon policy research taking place in partnership with the Ministry for the Environment.
The focus of the project is investigating the potential of coastal wetlands to store carbon and offer carbon credits from the restoration of these wetlands, all while providing rich biodiversity habitats, says Bull. Being able to bring those into a voluntary carbon market would provide an additional incentive for private funding.
Another key partner helping to deliver the Biodiversity Fund is Trees That Count, who are leading an R&D project around the concept of seed islands; planting in concentrated areas to enable natural regeneration.
The project aims to find ways to deliver landscape-scale restoration in a more cost-effective way. A network of demonstration trial sites has been identified and is being established in both the North and South Islands. Field work has begun with planting already done at several of the sites.
“I’m really grateful for the incredible mahi our partners do for our communities, and I’m just proud that Z is able to provide them with a bit of extra support,” says Bull.
For more information visit z.co.nz/sustainability/nature-restoration/