Environmental performance

Introduction

DPC recognises its role in contributing to Victoria’s climate action targets and is committed to reducing its environmental impact through sustainable practices. This report is guided by Financial Reporting Direction (FRD) 24.

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 (landfill, commingled and organics) to encourage waste reduction and recycling
• prioritising energy efficiency through the use of 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 waste management
• recycling usable furniture and equipment during refurbishments or relocations to minimise waste
• adopting digital solutions to reduce paper usage and shift towards more sustainable practices.

DPC aims 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’s commitment to fostering a culture of sustainability is reflected in the department’s dedication to realising a greener future.

DPC has sought to mitigate the environmental impacts of its operations during 2024–25 through office-based initiatives that integrate environmental considerations across the department.

DPC is continuing to mature its Environmental Management System (EMS) to further guide the department’s environmental management and follow standards set out in AS/NZS ISO 14001:2016. This includes targeted sustainability initiatives in the central agency emissions reduction plan currently under development.

Reporting boundary for environmental data

This report outlines DPC’s environmental performance from 1 July 2024 to 30 June 2025, with data captured through consumption reports and audits. Data encompasses all sites where DPC conducts its operations, and relevant activities of departmental staff (e.g. travel). This report includes chauffeur fleet emissions data whilst the associated vehicles are captured in the DGS’s annual report.

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.

In some instances, consolidated environmental data includes contributions from other DPC entities co-located at reporting sites.

For comparative analysis, certain data indicators have been normalised using Full-Time Equivalent (FTE) to represent employees. This normalisation provides a clearer view of performance and facilitates trend analysis.

During 2024–25, a reporting platform of the State Government Environmental Sustainability service provider transitioned from the Canopy system to IBM Envizi. Historic data was migrated to Envizi, which offers enhanced functionality, and more comprehensive dashboards and data views. Envizi is now a primary source for electricity, gas, and site-based environmental data used in this report.

Certain environmental metrics such as water, gas and waste were not available for all sites due to factors such as different metering systems and data measurement methods.

DPC will continue to see further refinement of reporting outcomes by engaging with both internal and external data sources aligning with FRD 24 requirements.

Climate-related risk disclosure statement

The DPC Board of Management recognises its responsibility for managing climate-related risks and the potential for climate change to impact the department’s service delivery. DPC provides advice to the government on whole-of-government climate risk activities and supports the governance arrangements for the Victorian Government’s 2026–2030 pledge through engagement with DEECA and other agencies. DPC also participates in cross-government climate action groups and works with other departments on coordinated actions to address climate-related risks to government operations.

Climate-related risk governance

The DPC Board of Management is responsible for the department’s Risk Management Framework and regularly reviews changes to the risk environment and the effectiveness of risk mitigation activities. DPC is committed to comprehensive risk governance, strategy development and effective risk management practices. Guided by the Victorian Government Risk Management Framework and the AS ISO 31000:2018 standard, DPC promotes proactive identification and management of risks, including climate-related risks. The framework provides structured processes for designing, implementing, monitoring, reviewing and continually improving risk management across DPC, ensuring climate-related risks and opportunities are considered within the department’s operating context.

Climate-related risk strategy

DPC receives accommodation and vehicle services from its shared services provider, DGS, which applies relevant policies to improve the environmental performance of government buildings and the 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 strengthen its understanding of potential climate-related impacts on operations, workforce and financial planning. Key areas of focus include:

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

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

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:

• 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.
• 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 Schedule.

Greenhouse gas emissions

DPC reports its greenhouse gas emissions broken down into emissions ‘scopes’ consistent with national and international reporting standards:

• Scope 1 emissions are from sources that DPC owns or controls, such as burning fossil fuels in vehicles or machinery.
• Scope 2 emissions are indirect emissions from the department’s use of electricity from the grid, which still includes coal and gas-fired power generation.
• Scope 3 emissions are indirect emissions from sources DPC does not control but can influence. DPC’s scope 3 reporting includes corporate air travel and waste disposal.
• Scope 1 emissions increased in 2024–25 due
  to higher greenhouse gas emissions from the vehicle fleet resulting from an amended reporting methodology that now includes additional data attributed to the department.
• Scope 2 emissions remain stable compared to the previous reporting period.
• Total Scope 3 emissions have increased, primarily due to an increase in air travel emissions.

SEC and green power transition

Emissions are forecast to decrease in 2025–26 following the commencement of the State Electricity Commission (SEC) on 1 July 2025. The SEC will transfer the electricity accounts of Victorian Government operations to green power, providing a shift to higher renewable energy sources and reducing Scope 2 emissions.

Air travel offsets

Until February 2025, greenhouse gas emissions from corporate air travel were offset through the CTM Climate+ program. This program was replaced by a new offset approach that allows DPC to select offset providers that align with its business objectives. This approach enables carbon offsets to be applied retrospectively for travel undertaken between March and June 2025.

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: entities previously under DPC, continue to be captured by DPC’s reporting systems.

Fleet operations

In 2024-25, DPC operated a fleet of 35 vehicles through VicFleet to meet operational requirements.

The table below shows that:

Electricity production and consumption

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

• 121 Exhibition Street, Melbourne
• 1 Macarthur Street, East Melbourne
• 1 Treasury Place, East Melbourne
• 3 Treasury Place, East Melbourne
• 35 Collins Street, Melbourne
• 300–304 Mair Street, Ballarat
• 189–229 Lyttleton Terrace, Bendigo.

The total electricity consumption for DPC over the 2024–25 reporting period remains stable at 1,558 megawatt hours (MWh).

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:

• 121 Exhibition Street, Melbourne
• 1 Macarthur Street, East Melbourne
• 1 Treasury Place, East Melbourne
• 35 Collins Street, Melbourne
• 300–304 Mair Street, Ballarat
• 189–229 Lyttleton Terrace, Bendigo.

Total fuel use in buildings for 2024–25 was 2,800,885 megajoules (MJ), an increase on the previous reporting period. This increase represents consumption captured from 35 Collins Street, 121 Exhibition Street and 198–229 Lyttleton Terrace. Data at these sites was not available for previous reporting periods. Consumption at 1 Macarthur Street and 1 Treasury Place decreased compared to the 2024-25 period.

Correspondingly, greenhouse gas emissions from stationary fuel consumption increased, totalling 144 tonnes CO2-e.

Transportation

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

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 data attributed to the department.

For the reporting period, total distance travelled by commercial air decreased by 6 per cent.

Total energy use

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

• 121 Exhibition Street, Melbourne
• 1 Macarthur Street, East Melbourne
• 1 Treasury Place, East Melbourne
• 3 Treasury Place, East Melbourne
• 35 Collins Street, Melbourne
• 300–304 Mair Street, Ballarat
• 189-229 Lyttleton Terrace, Bendigo.

During the 2024-25 reporting period, DPC's total energy use was 10,311,750 MJ.

This total includes energy from both fuel 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 5 per cent and non-renewable energy increasing by 7 per cent.

Sustainable buildings and infrastructure

Relevant DPC leases, negotiated and managed by ACLS with support from its outsourced service provider, incorporate a Green Lease Schedule within the Standard Government Lease. The schedule outlines obligations for both landlords and tenants to maintain properties at a minimum NABERS rating for energy, water, waste, and indoor environment. It is proposed to landlords or managing agents during each new lease negotiation.

Where premises are not subject to Commonwealth mandatory disclosure laws, or landlords are unwilling to include these obligations, ACLS and its outsourced service provider work with landlords to implement measures that improve energy efficiency, reduce emissions, and cost savings. The Green Lease

Schedule also mandates a NABERS energy rating for all leases, with additional performance requirements for larger tenures. It requires efficient lighting systems to be installed and energy data to be shared to support emissions reporting.

DPC discloses a summary of NABERS ratings for its occupied premises using data from the NABERS public portal. In 2024–25, three office buildings received an environmental performance rating, as detailed in the table below. No new buildings were commissioned in this reporting period, and no NABERS ratings were undertaken for owned buildings or tenancy fit-out works. There were also 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:

• 121 Exhibition Street, Melbourne
• 1 Macarthur Street, East Melbourne
• 1 Treasury Place, East Melbourne
• 3 Treasury Place, East Melbourne
• 300–304 Mair Street, Ballarat
• 189–229 Lyttleton Terrace, Bendigo.

Total water consumption for DPC during the 2024–25 reporting period was 3,162 kilolitres (kL), noting water consumption for 35 Collins Street is represented in the 2023–24 data but was unavailable for this reporting period. Water consumption decreased at all DPC locations recorded, except for 189–229 Lyttleton Terrace and 121 Exhibition Street, which were not captured in previous reporting periods.

Waste and recycling

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

• 121 Exhibition Street, Melbourne
• 1 Macarthur Street, East Melbourne
• 1 Treasury Place, East Melbourne
• 3 Treasury Place, East Melbourne
• 35 Collins Street, Melbourne
• 300–304 Mair Street, Ballarat
• 189-229 Lyttleton Terrace, Bendigo.

During the 2024–25 reporting period, DPC generated a total of 35,458 kilograms of waste, reflecting an increase from the previous year.

The update to environmental reporting systems and processes has allowed additional data sources to be captured. This additional source has increased the quantity of paper and cardboard recycling from the previous year.

Reporting of secure document destruction was previously included in co-mingled recycling waste, has been separated for the 2024-25 reporting period.

Greenhouse gas emissions related to waste disposal decreased in 2024–25. DPC continues to maintain dedicated processes for the disposal of e-waste and printer cartridges across all key office sites.