Seven years of leadership in sustainability
Australia’s largest property companies continue to lead the world in environmental, social and governance performance, with seven years of sustained leadership at the top of the GRESB survey.
GRESB, the global real estate sustainability benchmark, assessed 8 real estate companies and funds, representing more than 77,000 properties and $4.6 trillion in global assets under management.
The Australia/New Zealand regional score of 73 was 10 points higher than the global average, although GRESB notes that the rest of the world is beginning to catch up.
The number of Australian companies that report to GRESB has grown by 20 per cent, with 66 participants representing $205 billion in assets, up from 55 last year.
“It’s great to see our leaders continue to lead, and that more Australian property REITs are reporting on ESG,” says the Property Council’s chief executive Ken Morrison.
“It shows that investors in Australian property value performance in sustainability, and it’s an impressive outcome for Australia to retain its strong leadership despite a 20 per cent increase in reporting entities.
“This year’s report shows that we continue to outperform the other regions, by demonstrating leadership in social issues such as diversity and inclusion, health and wellbeing, and tenant engagement.
“However, the narrowing gap between Australia and the rest of the world suggests the lack of clarity around climate and energy policy is starting to influence our ability to continually improve,” Morrison adds.
“For the region as a whole, increased commitment from policymakers on climate change and carbon emissions can provide an important incentive for further improvement,” says GRESB’s head of Asia Pacific, Ruben Langbroek.
Lendlease’s Australian Prime Property Fund Commercial claimed the top spot of all 8 companies and funds globally. Lendlease International Towers Sydney Trust and Lendlease One International Towers Sydney Trust were also named the most sustainable development funds globally.
“Our investors share our belief that environmental, social and governance outcomes are integral to creating long-term value and managing risk,” says Josh McHutchison, managing director of Lendlease’s Australian investment management business.
Dexus Wholesale Property Fund was named among private funds for the diversified office and retail sector. Paul Wall, Dexus head of group sustainability and energy, says the company has saved $93 million through energy efficiency measures since 2008, all the while increasing its “focus on customer amenity and wellbeing, while lessening our environmental impact on the broader community”.
Seven Australian entities were acknowledged as ‘regional sector leaders’ – Vicinity Centers, Dexus Office Trust, Australian Prime Property Fund Commercial – Lendlease, Frasers Logistics & Industrial Trust, Dexus Wholesale Property Fund, Goodman Group and Lendlease International Towers Sydney Trust.
Stockland was ranked first globally among listed companies for the diversified office and retail sector. Stockland has also announced that it will invest $23.5 million on Australia’s largest ever property solar project at 10 of its shopping centres across the country.
Langbroek says Australia’s regional sector leadership highlights real estate companies and funds at the “top of the sustainability curve” for their region.
Meanwhile, the Dow Jones Sustainability Index has recognised Mirvac as its top real estate group. Investment specialist group RobecoSAM, which compiles the rankings, says Mirvac’s “climate strategy and approach to biodiversity” is “particularly laudable”.
The Property Council’s National Sustainability Roundtable provides a forum for sustainability leaders of the industry to drive industry-wide strategies and guide advocacy for effective government policy.