Leighton Contractors Energy Efficiency Opportunities Report 2011

Leighton Contractors

Energy Efficiency Opportunities Report 2011 Controlling Corporation Leighton Holdings Limited ABN 57 004 482 982 This report contains Leighton Contractors’ energy use data for financial year 2010/2011.

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Introduction Leighton Contractors Pty Ltd Leighton Contractors Pty Limited (LCPL) is a leading contractor and services provider across Australia and New Zealand. It is a subsidiary of parent company Leighton Holdings Limited, which is the controlling corporation under the Energy Efficiency Opportunities (EEO) Program.

With capabilities in construction and infrastructure, resources mining and services, telecommunications, energy, infrastructure investment and facilities management, Leighton Contractors is committed to building a sustainable company - one that is longlasting, consistently profitable, safe and corporately responsible.

Infrastructure Council (AGIC). In 2010/2011, Leighton Contractors has been involved in the first two stages of AGIC’s rating tool pilot trial, with projects engaged in both QLD and NSW. We also actively participate in best practice industry forums on energy efficiency including the Australian Industry Greenhouse Network, Australian Constructors Association and Minerals Council of Australia.

Energy Efficiency Opportunities (EEO) Program

Our core purpose is ‘to be a trusted partner integral to our clients’ success’ and our approach is underpinned by our values, leadership and excellence.

Leighton Contractors has a four-stream strategy to embed sustainability throughout its diverse business.

Key drivers of the strategy include: Living by the values that underscore our performance, relationships and responsibilities Ensuring sustainability is a key consideration in strategic and operational decision making Driving innovation and business improvement, delivering better solutions for clients and creating more diverse opportunities for our people; and Engaging with stakeholders to improve the way we conduct our business.

Energy efficiency, including our involvement in the Federal Government’s Energy Efficiency Opportunities Program, forms part of the company’s wider approach to environmental sustainability.

In 2010/2011, we have continued to develop and refine energy management systems that identify innovative actions to reduce the intensity of our energy footprint.

Learnings are shared across the business, ensuring a process for continued business improvement.

Demonstrating our commitment to sustainable building and infrastructure, we maintain a close relationship with the Green Building Council of Australia (GBCA) and the Australian Green

In November 2006, Leighton Contractors registered with the Australian Government’s Energy Efficiency Opportunities Program through our parent company, Leighton Holdings.

Leighton Contractors formed an Energy Efficiency working party to implement a systematic approach to identifying and assessing opportunities to improve the efficiencies and effectiveness of our operations, either in partnership with clients and stakeholders, or on a standalone basis. Leighton Contractors continue to support our national network of environmental professionals driving energy efficiency at the grass roots level through direct engagement with staff.

Our ongoing approach aims to create an organisational culture that delivers energy efficiency as an enduring outcome of business-as-usual management. Working closely with industry regulators, clients and other stakeholders, this approach will continue to evolve, mature and be carried into the next EEO assessment cycle.

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EEO at Leighton Contractors Meeting the requirements of the Australian Government’s EEO program is a deliverable of Leighton Contractors’ Environment & Energy Strategy. This requires the integration of efficient energy use principles into all aspects of the business.

verification against ISO14064: Greenhouse Gases – Part 1: Specification with guidance at the organisational level for quantification and reporting of greenhouse gas emissions and removals – a significant accomplishment and one which reflects robust energy management and reporting culture.

Further, in 2011, Leighton Contractors has drafted a specific Energy Management Business Standard, setting the companywide expectations for energy assessment, management and reporting. This standard requires each division to:

In 2010/ 2011, Leighton Contractors recorded a total energy consumption of 3,012,276 GJ. Table 1.1 LCPL Energy and Emissions Summary

Identify and record energy sources (i.e. diesel, electricity) and activities (i.e. mobile plant, electricity generation)

Energy (GJ)

3,012,276

Scope 1 (t CO2-e)

189,029

Document energy reporting boundaries and methodology

Scope 2 (t CO2-e)

71,805

Provide transparent, accurate and timely energy data

Total (t CO2-e)

260,834

Actively pursue opportunities for efficiency improvements, including Divisional workshops with key personnel to identify areas for improvement Complete cost/benefit analysis for identified energy efficiency initiatives Capture and communicate business benefits post implementation This Standard, as well as the goals and targets identified in the Environment & Energy Strategy, and the development of the National Environment and Energy Team (NEET) have all contributed to another step forward in the Leighton Contractors energy management journey.

Leighton Contractors is looking to further develop energy efficiency initiatives across all of its projects and offices, acknowledging the varied work activities whilst also working for consistency and integration of energy management and reporting processes.

In 2010/2011, Leighton Contractors has continued its work to streamline and improve energy reporting processes, systems and software, with a range of improvements either implemented or in progress. With the wide range and number of facilities across Australia, New Zealand and Papua New Guinea, the efficiency and effectiveness of the reporting process is an ongoing priority.

Further to this, Leighton Contractors Northern Region (Construction Division – QLD, NT) has recently achieved regional

As a large contractor and services provider, diesel consumption continues to be a significant percentage of Leighton Contractors’ energy use.

As a result, the majority of efficiency projects and research to date have been conducted within the Resources (mining) Division – historically the primary source of energy consumption and emissions within the company.

Due to Operational Control determinations and the evolution of LCPL’s business structure, the energy management focus during the next EEO cycle is likely to be much more diverse – reflecting the varied locations and industries we now operate in.

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Part 1.

Our Assessment and Response LCPL’s first EEO assessments were conducted between July 2007 and June 2008. Throughout the first cycle, the dynamic, project based nature of our operations has encouraged Leighton Contractors to focus on opportunities that can be readily expanded to a range of projects, in order to ensure that efficiencies are maintained over time.

To this end, the Plant Department have played a considerable role in conducting assessments and implementing efficiency programs across a broad range of business activities.

With the second EEO cycle commencing, it is expected that Leighton Contractors will begin to increase its assessment focus within its Construction, Telecommunications, Investment & Facility Management; and Industrial & Energy operations more broadly.

This will enable Leighton Contractors to build upon the work of our Resources (mining) operations to date, and encourage this level of opportunity identification and implementation throughout each division, while supporting continuing efficiency improvements within the company’s mining operations.

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Table 1.2 – Energy Use Assessed Activity Description

Assessments completed

Period over which assessment were taken

Energy use per annum in GJ in the current reporting year

1. Lighting / Energy Efficiency Activities

LED lighting efficiency in mining camp (R)

July 2008 – Jan 2009

422

LED lighting system for haul trucks (R)

July 2008 – June 2009

3,460

Branch office lighting replacement (C)

July 2008 – June 2009

3,616

Lighting Tower Initiatives

July 2008 – June 2010

2,970

Solar powered LED warning lights (R)

July 2009 – June 2010

70

Plant yard lighting replacement (R)

July 2008 – June 2009

569

Smart lighting system (R)

July 2009 – June 2010

2,250

Purchase of renewable energy (C)

July 2009 – June 2010

9,765

Wheel loader bucket modification assessment (R)

July 2007 – June 2008

36,125

Brake system Innovation on loaders, trucks and water carts (R)

July 2008 – June 2009

665,311

Fixed plant modification on mine site (R)

July 2008 – June 2009

7,060

Mining camp heating pumps (R)

July 2008 – June 2009

883

Fuel efficient site vehicle (C)

July 2008 – June 2009

205,479

Fuel efficient site vehicle (IFM)

July 2010 – June 2011

643

Water Truck Smart System (R)

July 2009 – June 2010

14,566

HQ south tower - 5+ Star Nabers Brisbane office (C)

July 2009 – June 2010

1,769

Eastern busway site office energy efficiency inclusions (C)

July 2009 – June 2010

7,304

Group IT windows 7 rollout (GC)

July 2009 – June 2010

12,668

Energy Efficient Tower Cranes (C)

July 2010 – June 2011

5,083

Energy Efficient Data Centres (T)

July 2010 – June 2011

83,629

Review refuelling practices for haul trucks iVolve refuelling Telemetry (R) iVolve digger truck loading Telemetry (R)

July 2008 – June 2010

650,745

Eco driver training (C)

July 2009 – June 2010

35,234

Operator training for fuel efficiency (C)

July 2009 – June 2010

707,959

Energy audits (C)

July 2009 – June 2010

1,489

Light Vehicle Pool (C)

July 2010 – June 2011

5,625

2. Technology Efficiency Activities

3. Process Efficiency Activities

Total energy use covered by all assessments in this report

2,464,694 GJ

Total energy assessed as percentage of total energy use of the corporate group (in 2010/2011)

82%

*Note – There are projects which were identified in the LCPL Assessment and Reporting Schedule which are now understood to be outside of LCPL operational control. Assessments at these facilities are not included in the above figures. Such assessments, conducted by LCPL, covered approximately 3 870 380 GJ of energy consumption across non-operational control sites. ** The reduced number of opportunities listed in this report is due to consolidation of similar opportunities for more practical implementation; removal of opportunities for facilities no longer under operational control; and cessation of initiatives with negligible energy reductions.

Key: (R) Resources (C) Construction (IFM) Investment & Facility Management (GC) Group Corporate (T) Telecommunications

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Part 2 – Energy Efficiency Opportunities that have been identified and evaluated Part 2 of this report provides data and analysis for all energy efficiency opportunities that have been identified and assessed across the business.

During this first cycle of EEO reporting, the determination of Operational Control has become systematic and documented agreements have been finalised. Accordingly, it has become clear that LCPL does not have operational control of a number of facilities that were considered part of our energy profile at the commencement of the cycle.

These changes are evident in the reduction in energy consumption reported by LCPL in this financial year relative to previous years.

Nonetheless, Leighton Contractors have continued to identify opportunities for efficiency improvements across the business.

Table 1.3 – Summary of Assessments Total energy use in the last financial year

3 012 275

GJ

Total energy use assessed

2 464 694

GJ

Energy use assessed as a percentage of total corporate group energy use

82

%

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Resources (Mining) Division Table 1.4 – Summary of Resources Division Assessments Total energy use in the last financial year

1 524 295

GJ

Total energy use assessed for this entity in the last financial year

1 384 413

GJ

Energy use assessed in this entity as a percentage of total entity energy use

91

%

Energy use assessed in this entity as a percentage of total corporate energy use

46

%

Part 1 - Status of opportunities assessed to an accuracy of better than or equal to ±30%

Annual Net Value of Savings arising from Opportunities by Payback Period and Fuel Type Initiative

Energy type

Payback 0<2, 2–4 or 4+ (years)

Annual net energy savings (GJ)

Annual net financial benefits ($)

Business Response

LED lighting efficiency in mining camp

Electricity

2-4

302

$9 280

Wheel loader bucket modification assessment

Diesel

0-2

6 074

$207 734

2-4

1 631

$50 453

0-2

1 750

$59 875

Lighting Tower Initiatives

0-2

2 970

$219 262

Water Truck Smart System

0-2

1 390

$30 020

-

-

-

Solar powered LED warning lights

4+

70

$2 393

Brake system Innovation on loaders, trucks and water carts

4+

15 953

$545 558

Review refuelling practices for haul trucks ; iVolve refuelling Telemetry & iVolve digger truck loading Telemetry

4+

9 496

$324 720

2-4

34

$2 046

4+

1 147

$39 248

-

-

-

Implemented

Mining camp heating pumps Implementation Commenced

LED lighting system for haul trucks

To be implemented Under Investigation

Diesel

-

Plant yard lighting replacement

Electricity

Smart lighting system Not to be implemented Total opportunities identified

-

11

-

40 817

$1 490 589

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Other Divisions Includes: Construction; Investment & Facility Management; Industrial & Energy; Telecommunications; Group Services.

Table 1.5 – Summary of Other Division Assessments Total energy use in the last financial year

1 487 980

GJ

Total energy use assessed in this entity in the last financial year

1 080 263

GJ

Energy use assessed in this entity as a percentage of total entity energy use

73

%

Energy use assessed in this entity as a percentage of total corporate energy use

36

%

Part 1 - Status of opportunities assessed to an accuracy of better than or equal to ±30%

Annual Net Value of Savings arising from Opportunities by Payback Period and Fuel Type Initiative

Energy type

Payback 0<2, 2–4 or 4+ (years)

Annual net energy savings (GJ)

Annual net financial benefits ($)

Business Response

HQ south tower – 6Star GreenStar

Electricity

0-2

487

$29 400

Eastern busway site office energy efficiency inclusions

0-2

1 289

$76 370

Group IT windows 7 rollout

0-2

6 812

$283 848

0-2

5 033

$15 700

Purchase of renewable energy

4+

2 441

N/A * *

Energy Efficient Data Centres

0-2

75 265

$3 136 084

Energy audits

0-2

119

$4 964

2-4

25 685

$878 343

Eco driver training

0-2

1 272

$48 918

Operator training for fuel efficiency

0-2

70 796

$2 109 204

Implemented

Implementation Commenced

Branch office lighting replacement

Fuel efficient site vehicle

Electricity

Diesel

Eco driver training

Petrol

0-2

490

$20 949

To be Implemented

-

-

-

-

-

Under Investigation

Fuel efficient site vehicle

Diesel

0-2

109

$4 123

Fuel efficient site vehicle

Petrol

0-2

50

$1 884

0-2

1 582

$63 250

Light Vehicle Pool

Not to be Implemented Total opportunities identified

Energy Efficient Tower Cranes

Electricity

0-2

937

$431 640

0

-

-

-

-

192 367

$7 104 677

15

** Purchase of GreenPower – no associated financial benefit

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Significant initiatives reported 2010-2011 2011 represented the final year in Leighton Contractors five year EEO assessment and reporting schedule, and as such the focus was on sustaining, integrating and improving upon the changes that had been identified and implemented to date.

Despite the focus on embedding existing opportunities during 2010/2011, a number of new energy efficiency opportunities were identified. The following table describes significant opportunities that were identified during the period.

Table 2.3 â&#x20AC;&#x201C; Description of significant opportunities identified in the assessment Opportunity 1 â&#x20AC;&#x201C; Data Centre Efficiency Metronode Metronode is developing state of the art data centres across Australia based on the BladeRoom TM data centre system. In 2011, next-generation facilities will be completed in Melbourne and Perth, with further facilities planned for Sydney, Canberra, Brisbane and Adelaide in 2012.

New Metronode data centres will utilise 90 per cent less electrical energy than our existing data centres. To put this into context, for every 1MW of IT load per annum in our new data centres, Leighton Contractors will save 7.9MWh of energy, which would otherwise cost approximately $1.2 million per annum.

In addition, rainwater harvesting and retention will be implemented at all new Metronode data centres. The roofs of the facility will be used to capture rainwater, the majority of which will be used by the data centre air conditioning system and a smaller amount for irrigation of site vegetation Based on current electricity consumption within our data centres, energy savings could total over 75 000 GJ per annum within the new facilities.

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Table 2.3 – Description of significant opportunities identified in the assessment Opportunity 2 – Fuel Efficient Vehicles Leighton Contractors is investigating opportunities for the use of in-vehicle monitoring systems to improve fuel efficiency within its light vehicle fleet.

With combined benefits of improved efficiency and enhanced driver safety, such monitoring systems can be used to understand and influence driving behaviours to reduce fuel and maintenance costs.

With projected fuel savings of 10-15 per cent, it is anticipated that significant environmental and safety benefits will be realised following implementation of these systems on suitable projects.

In addition, our telecommunications operations have made the decision to phase out all petrol powered vehicles and introduce vehicles with Euro 4 or 5 Diesel engines. These diesel engines are proving highly effective in lowering fuel consumption and significantly reducing emissions.

Table 2.3 – Description of significant opportunities identified in the assessment Opportunity 3 – Energy Efficient Tower Cranes Our Queensland Construction operations have identified the use of electricity on building sites as an area of concern due to the large volumes of electricity consumption associated with the operation of tower cranes. One initiative proposed to tackle this issue is the hire and operation of more energy efficient tower cranes.

A new innovatively designed tower crane is now available, which consists of two jibs linked to a central tower. The jibs are rotated around the central tower by propellers mounted on either end. This technique eliminates the torque forces generated by the central tower during operation, and decreases the amount of energy required to turn and brake the swinging operations.

Simulation modelling carried out on a two-jib tower crane equipped with an 85m jib revealed that the two-jib system could complete a lifting operation comparably with two traditional cranes with 65m jibs at less cost than required to rent a whole crane. Therefore, based on current electricity consumption on Northern Region Building sites, and even without accounting for the enhanced energy efficiency of the two-jib crane itself, approximately 1000 GJ of energy and $140,000 can be saved per annum on each building project simply by replacing two traditional tower cranes with one twojib system.

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Update on significant initiatives reported 2009-2010 Lighting Efficiency Activities Solar Powered LED Warning Lights In the 2010/2011 reporting period a trial was conducted at the Poitrel mine site to replace a 4 header tower with a solar powered lighting tower. A study was also conducted to compare the difference in light intensity between a conventional 4 header lighting plant and the solar powered unit. It was found that the light output was significantly less compared to a standard 4/6 header lighting plant, as the unit was designed to meet Department of Main Roads requirements, not mining requirements. A unit re-engineered to meet mine requirements is expected to be available for trial at the end of 2011.

Lighting Efficiency in Mining Camp LED tube lighting has been installed in accommodation units in preference to incandescent or fluorescent lights. New generation LED array lights can produce the same amount of brightness as conventional T-series fluorescent tubes, while lasting for more than ten years and consuming less power. Energy savings for the 2010/2011 financial year are estimated at 300 GJ per annum in comparison to T5 fluorescent 28W lighting. This is equivalent to over $9,000 in energy savings for this facility alone. Options to expand this initiative are under investigation.

Technology Efficiency Activities Solar Panel Trial In 2009/2010, the Kingsgrove to Revesby Quadruplication (K2RQ) project in Sydney identified the potential for photovoltaic panels along noise wall barriers, which would offset the high power charges at selected locations. Systems of larger arrays of solar panels and stand alone solar power systems were also considered in off grid sites or for duties such as battery charging, emergency lighting and telemetry. It was hoped that this would also allow the client to export electricity to the grid to offset peak power costs, however more detailed assessment of financial payback periods and operational risks revealed that the initiative did not represent value for money or provide sufficient long term benefits. Key concerns raised were the ongoing maintenance costs and potential security issues such as vandalism and graffiti.

LCPL Windows 7 Rollout LCPL has now upgraded 6,590 PCs, resulting in an estimated energy saving of change to 6 812 GJ in the 2010/2011FY.

Green IT is a key strategy of LCPLâ&#x20AC;&#x2122;s Climate 4 Change Program which details the steps Leighton Contractors will take in 20102012 to continually improve our environmental performance and energy efficiency at home, in the office and on our projects.

LCPL has thus implemented the Windows 7 upgrade across the entire business.

The energy efficient operating systems have improved power management system, functionality, reliability and default settings helping to reduce overall PC energy consumption. A key area of efficiency is the Windows 7 sleep mode compared to the equivalent Standby mode in Windows XP.

HQ South Tower - 6 Star Green star Office Design V2 As the new home for Leighton Contractors in Queensland, the HQ Development consists of two innovative and sustainable buildings in Fortitude Valley. The development has been awarded a 6 Star Green Star rating in Office Design v2 and more recently a 6 Star Green Star rating for Office As Built v2. An initial National Australian Built Environment Rating System (NABERS) assessment predicted the development would achieve a 5 Star + 40 per cent NABERS Rating for energy efficiency. The operational assessment is currently being undertaken and a rating has not yet been awarded.

The HQ towers are run on a gas fired co-generation system which improves the buildingâ&#x20AC;&#x2122;s energy efficiency and reduces its overall impact on the environment. The co-generation system uses excess heat produced during power generation to operate chillers for the air conditioning system and has the capacity to successfully power and provide air conditioning to both the South and North Towers.

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Water Truck Smart System As of 2010/2011, all water carts have now been fitted with the enhanced water management system. While the optimisation of the water cart water management system is an ongoing process, this initiative is expected to save 1390 GJ of energy per annum.

Coolabah Heat Pumps The heat pump hot water systems installed at the Coolabah Village accommodation camp operate in a similar way to a refrigerator, whereby the compression and evaporation of a refrigerant gas is used to transfer heat from one location to another. Latent atmospheric heat is transferred to water in a holding tank via a non-CFC refrigerant. Only a small amount of electricity (diesel generated) is required to power a compressor and fan, the heating of the water itself is produced entirely from natural atmospheric heat. These systems will work in all types of weather due to the very low vaporisation point of the refrigerant.

The use of energy efficient heat pumps at the Coolabah Village site has provided fuel savings of approximately 65 per cent when compared with a standard hot water system. To this end, energy savings of approximately 1630 GJ were achieved by this initiative within the 2010/2011 reporting year. This is equivalent to over $50,000 per annum in energy savings.

Eco-driver and Operator Training The energy efficient system is predicted to reduce HQâ&#x20AC;&#x2122;s carbon footprint by 559,580 kg of CO2 equivalent emissions each year.

Internally, a range of energy efficient initiatives have been implemented, including efficient lighting, computers, server rooms, refrigerators, freezers and Hot/Chilled water units, supplementary air-conditioning and domestic hot water.

HQ provides staff with access to a 615sqm purpose-built bike centre featuring over 260 bike racks and end-of-trip facilities including 26 male and female showers and 296 lockers. The centre has been an enormous success with an approximate 80 per cent daily occupancy rate.

HQ South Tower also has a dedicated Green Office Management Plan to encourage and drive energy efficient and sustainable thinking within the office.

Results from the Operator Training program for plant and equipment pilot trials continued to be assessed to determine the viability of running the program across the region. Initial findings appear promising with an average decrease in fuel consumption of 9.68 per cent as a result of operator training. A solid business case is being developed and the aim is for the initiative to be rolled out on the next appropriate civil works project in order to better quantify the program results. The Northern Region has an aim in the near future to roll-out Operator Training across all projects in order to greatly reduce diesel consumption in plant and equipment, thereby reducing Scope One emissions.

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Update on significant initiatives reported 2008-2009 Lighting efficiency activities In the 2008-2009 reporting period, Leighton Contractors identified lighting efficiency activities as a key focus area for efficiency gains.

The following summarises these initiatives and provides an update on their status;

Office lighting Following on from the success of the previous reporting periods in LCPL’s office lighting program, Branch Office lighting initiatives continue to be followed through by our divisions. A detailed energy audit has been undertaken by the NSW Construction Division Branch Office, with a range of further opportunities identified. The Green Office Program rollout has continued in various sectors throughout the company.

Auto Stop on Lighting Towers In the 2010/2011 reporting period 9 lighting towers were purchased with auto stop/start controllers. This has resulted in a saving of 21,600 litres of diesel and 834 GJ of energy for the reporting period.

Technology efficiency activities Leighton Contractors continued to engage with our suppliers and customers to develop energy efficient technologies and design.

Some examples are described below.

Braking systems The potential for energy savings in the braking systems of trucks was still under investigation in the 2010/2011 reporting period.

Opportunities, such as the reduction in brake drag in wet disc brakes by using oils, were examined and it is believed that an energy saving of two per cent of the total fuel usage is achievable.

Building design and construction Leighton Contractors construction operations continue to successfully design and build sustainable and industry leading commercial buildings including three current developments in Brisbane.

The Science and Engineering Centre project in the heart of the Queensland University of Technology Gardens Point campus will be a living showcase of sustainable building design and construction. The precinct will provide 45,000m² of new building

which includes technology enabled active learning facilities as well as exciting retail and community hub amenities across two multi-storey towers. With sustainability as a guiding principle in the design and construction of this precinct, the project has achieved a 5 Star Green Star rating in Design Education v1 and is targeting an ‘Australian Excellence’ Green Star rating for As-Built from the Green Building Council of Australia (GBCA). Leighton Contractors is aiming for the successful completion of this project in mid 2012.

Leighton Contractors is also the Project Manager for the design and construction of the new, architecturally designed ABC headquarters in Brisbane, including television and radio studios and accommodation of the Queensland Orchestra. With environmental sustainability a key design element, the ABC is aiming for a benchmark broadcasting centre which is efficient in energy use, environmentally friendly and effective in adaptability to the changing media landscape. It is expected to increase productivity and reduce current operational costs. The design team is targeting a 5 Star NABERS Rating for this facility.

Leighton Contractors is also delivering the GPT Group’s One One One Eagle Street which is located within the city’s ‘golden triangle’. The significant tower is designed to reinforce the premium office identity of the ‘Riverside’ precinct. This impressive high-rise project involves design and construction of approximately 62,500m2 NLA of PCA Premium Grade office space over 44 levels, 128 car parking spaces over six basement levels, ground floor retail space, a business centre and a child care centre. The project has achieved a 6 Star (world leader) Green Star Office Design Rating, and is targeting a 6 Star Office As-Built Rating from the GBCA and a 5 Star rating from the NABERS scheme.

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Update on significant initiatives reported 2007-2008

Part 3 - Voluntary contextual information

Progress in reducing LCPLâ&#x20AC;&#x2122;s energy footprint was achieved through the continued implementation of the energy efficiency activities identified in the 2007-2008 EEO report. The key result areas are outlined below:

Our ongoing commitment

Office lighting As part of the Green Office Management Plan, projects are encouraged to replace old inefficient light fittings with newer technology to decrease their energy consumption in site offices.

HQ South Tower is fitted out entirely with energy efficient light fittings and the Eastern Busway project undertook the initiative to ensure their site office was fitted with this technology as well.

When project teams are residing in existing offices, they are encouraged to replace old light fittings as they expire to ensure compliance with the Green Office Management Plan.

Digger operations This initiative has concluded with a total of 8 wheel loader buckets being modified, which has resulted in a total weight saving of 14 tonnes and an annual energy saving of 6 074 GJ. Likewise, implementing our Fuel Efficient Wheel Loaders using the Le Tourneau wheel loaders has returned a 12 per cent improvement in the fuel efficiency over the previously used machine, whilst moving the same quantity of material. The fuel efficiency of our plant is a critical factor in selecting our equipment. We will continue to use these Wheel Loaders for other applications within the business as appropriate.

In the 2010/2011 reporting period the trial of the two Le Tourneau L-1850 continued.

Throughout this first assessment cycle of the Energy Efficiency Opportunities Program, Leighton Contractors has made some significant progress in the identification and assessment of energy efficiency initiatives within the company. As a result, we have been able to realise substantial energy savings and make numerous improvements to the way we operate.

Over the next 12 months, Leighton Contractors will develop its assessment schedule for the next five year cycle of the Energy Efficiency Opportunities Program. Leighton Contractors is committed to the ongoing identification of efficiency opportunities and we look forward to a new chapter of innovation and efficiency through the EEO program.

Table 4.1 - Declaration of accuracy and compliance (mandatory information) The information included in this report has been reviewed and noted by the board of directors and is to the best of my knowledge, correct and in accordance with the Energy Efficiency Opportunities Act 2006 and Energy Efficiency Opportunities Regulations 2006.

Craig Laslett Managing Director Date: 19 December 2011

Leighton Contractors Pty Limited ABN 98 000 893 667 Head Office Level 8, Tower 1, 495 Victoria Avenue, Chatswood NSW 2067 Ph: +61 2 8668 6000