2016 GRESB Snapshot - Australia/NZ · 2017-07-11 · Office Retail Industrial 2014 2013 2012 2011...
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New data for Australia/NZ property companies and funds show significant variation in health and well-being practices. Many companies are working to promote the health of their employees. A smaller fraction of participants complement these internal efforts with strategies to actively promote the health of customers through their products and services. GRESB Aspects Office Retail Industrial 2014 2013 2012 2011 2015 2016 Region Score Carbon Management Health & Well-being Stakeholder Engagement GRESB Model Reporting carbon intensity data Offsetting carbon emissions Reporting carbon emissions data Data management system in place Risk assessments include carbon emissions Due diligence process includes carbon emissions Carbon emissions target ESG policy includes carbon emissions External review of carbon emissions data 100% 0% % of entities 2016 Improvements 0% 20% 40% 60% 80% 100% Global Average Australia/NZ Asia Europe North America 9 8 7 6 5 4 3 2 1 0 Number of carbon management practices reported % of entities Leaders (>= 7 indicators) Renewable Energy (generated on-site) Region Score 74 100 3 5 6 4 4 7 52 47 44 42 42 33 13 New participants Churn Existing participants 2016 2015 2014 2013 2012 2011 2010 12 7 6 6 14 23 Australia/NZ Asia Europe North America E T S C E T S C E T S C E T S C Employees E Tenants T Supply chains S Communities C 2016 Improvement 2016 Decline Average Score/Type 2014 2 GWh 2.9 GWh 2015 0.1% of total energy consumption in Australia/NZ 0.1% of total energy consumption in Australia/NZ H&W Entities Australia/NZ 0 50 100 50 0 100 Promotion of health of employees Promotion of health through products and services Leading in operations Leading in products/services Leading in both operations and products/services H&W Australia/NZ Response Rate Development GRESB Industry Partners “Investors increasingly understand that sustainability is intimately connected with risk, reward and reputation – which is why they are demanding reliable, standardised data to assess the sustainability of their assets. Green building certification programs are now institutionalised in mature real estate markets, and Australia has more than 1,320 Green Star-rated buildings. GRESB can help investors understand important non-financial metrics that are influencing the value of buildings across global markets.” Romilly Madew, Chief Executive Officer, Green Building Council of Australia "Many players, such as policy makers and investors, want to encourage and reward sustainability in the market. To do so, they need reliable sustainability metrics on which to judge businesses and make decisions. Through high quality benchmarking tools like NABERS and Green Star, the Australian property sector has long had such metrics, and the market has consistently rewarded high performance. By providing these metrics to an audience of global institutional investors, the GRESB Assessment maximized their potential as a catalyst for change." Carlos Flores, National Program Manager, NABERS The average GRESB Score of companies and funds in Australia/NZ improved from 70 in 2015 to 74 in 2016. Office portfolios in Australia/NZ continue to have the highest average GRESB Score. GRESB includes 11 indicators addressing the engagement of property companies and funds with employees, tenants, supply chain, and community. Each circle represents a point available for these 11 indicators. GRESB indicators can be examined individually or as functional groups to understand management and performance in key areas, such as carbon, water, waste, and health. The charts below illustrate average responses to individual carbon management indicators and the cumulative achievement of the set of carbon management strategies. The GRESB Assessment provides data on year-over-year growth in on-site renewable energy. The dark shading indicates renewable energy generated by companies and funds based in the region. The light shading indicates renewable energy generated elsewhere in the world. 75 50 25 2016 2015 Performance Indicators Building Certifications Stakeholder Engagement Management Policy & Disclosure Risks & Opportunities Monitoring & EMS 82 82 77 60 62 78 89 Property companies and funds in Australia and New Zealand continue to lead their peers with respect to environmental, social, and governance (ESG) performance. The new 2016 GRESB data show that the region extends its unbroken streak of global leadership despite increasing competition from peers around the world. The region’s leadership reflects a long-term commitment to sustainability and pervasive spirit of collaboration and knowledge sharing. Companies and funds in Australia and New Zealand are competitive, yet they also are unusually open to exchanging experiences and insights. Competitors frequently work together to address new issues. For instance, firms in Sydney recently worked together to tackle the intractable issue of operational solid waste generation. At the same time, the sector regards superior ESG performance as a proxy for quality – both at the asset and manager level. Collaboration and competition help drive the region’s companies and funds to higher levels of performance and support its global leadership year-after-year. While Australia and New Zealand continue to lead, this year’s relative improvement in average ESG performance trails other regions – from 70 to 74. This reflects the challenge of trying to continue to raise the bar from an already high level of performance. Regardless, companies and funds in the region made notable improvements in Building Certifications, Policy & Disclosure, and Performance Indicators. Going forward, there will be no rest for the world’s leading region. Governments in Australia and New Zealand are expected to develop more aggressive policies to achieve the goals of the COP21 climate agreement. Investors are moving beyond disclosure to demand tangible improvements in operational performance metrics, such as energy intensity or water consumption. At the same time, companies and funds around the world are working hard to improve their performance and close the gap with Australia and New Zealand. This creates a challenge for companies and funds in the region. Fortunately, owners, investors, and society will all benefit from their efforts to maintain their leadership position. 2016 GRESB Snapshot - Australia/NZ
Transcript of 2016 GRESB Snapshot - Australia/NZ · 2017-07-11 · Office Retail Industrial 2014 2013 2012 2011...
New data for Australia/NZ property companies and funds show significant variation in health and well-being practices. Many companies are working to promote the health of their employees. A smaller fraction of participants complement these internal efforts with strategies to actively promote the health of customers through their products and services.
GRESB Aspects
Office
Retail
Industrial
2014
2013
20122011
2015
2016 Region Score
Carbon Management
Health & Well-being
Stakeholder Engagement
GRESB Model
Reporting carbon intensity data
Offsetting carbon emissions
Reporting carbon emissions data
Data management system in place
Risk assessments include carbon emissions
Due diligence process includescarbon emissions
Carbon emissions target
ESG policy includes carbon emissions
External review of carbon emissions data
100%0% % of entities
2016 Improvements�
0%
20%
40%
60%
80%
100%
Global Average
Australia/NZ
Asia
Europe
North America
9876543210Number of carbon management practices reported
% o
f ent
itie
s
Leaders(>= 7 indicators)
Renewable Energy (generated on-site)
Region Score
74100
3 56
4 47
5247444242
33
13
New participants ChurnExisting participants
2016201520142013201220112010
1276614
23
Australia/NZ
Asia
Europe
NorthAmerica
E
T
S
C
E
T
S
C
E
T
S
C
E
T
S
C
EmployeesE TenantsT Supply chainsS CommunitiesC
2016 Improvement�
2016 Decline�Average Score/Type
20142 GWh 2.9 GWh
2015
0.1% of totalenergy consumption
in Australia/NZ
0.1% of totalenergy consumption
in Australia/NZ
H&W EntitiesAustralia/NZ
0 50 100
50
0
100
Pro
mot
ion
of h
ealt
h of
em
ploy
ees
Promotion of health through products and services
Leading in operations
Leading in products/services
Leading in both operations and products/services
H&W Australia/NZ
Response Rate Development
GRESB Industry Partners“Investors increasingly understand that sustainability is intimately connected with risk, reward and reputation – which is why they are demanding reliable, standardised data to assess the sustainability of their assets. Green building certification programs are now institutionalised in mature real estate markets, and Australia has more than 1,320 Green Star-rated buildings. GRESB can help investors understand important non-financial metrics that are influencing the value of buildings across global markets.”Romilly Madew, Chief Executive Officer, Green Building Council of Australia"Many players, such as policy makers and investors, want to encourage and reward sustainability in the market. To do so, they need reliable sustainability metrics on which to judge businesses and make decisions. Through high quality benchmarking tools like NABERS and Green Star, the Australian property sector has long had such metrics, and the market has consistently rewarded high performance. By providing these metrics to an audience of global institutional investors, the GRESB Assessment maximized their potential as a catalyst for change."Carlos Flores, National Program Manager, NABERS
The average GRESB Score of companies and funds in Australia/NZ improved from 70 in 2015 to 74 in 2016.
Office portfolios in Australia/NZ continue to have the highest average GRESB Score.
GRESB includes 11 indicators addressing the engagement of property companies and funds with employees, tenants, supply chain, and community. Each circle represents a point available for these 11 indicators.
GRESB indicators can be examined individually or as functional groups to understand management and performance in key areas, such as carbon, water, waste, and health. The charts below illustrate average responses to individual carbon management indicators and the cumulative achievement of the set of carbon management strategies.
The GRESB Assessment provides data on year-over-year growth in on-site renewable energy. The dark shading indicates renewable energy generated by companies and funds based in the region. The light shading indicates renewable energy generated elsewhere in the world.
75
50
25
2016 2015
PerformanceIndicators
BuildingCertifications
Stakeholder Engagement
Management
Policy &Disclosure
Risks &Opportunities
Monitoring & EMS
82
82
77
60
62
78
89
Property companies and funds in Australia and New Zealand continue to lead their peers with respect to environmental, social, and governance (ESG) performance. The new 2016 GRESB data show that the region extends its unbroken streak of global leadership despite increasing competition from peers around the world.
The region’s leadership reflects a long-term commitment to sustainability and pervasive spirit of collaboration and knowledge sharing. Companies and funds in Australia and New Zealand are competitive, yet they also are unusually open to exchanging experiences and insights. Competitors frequently work together to address new issues. For instance, firms in Sydney recently worked together to tackle the intractable issue of operational solid waste generation. At the same time, the sector regards superior ESG performance as a proxy for quality – both at the asset and manager level. Collaboration and competition help drive the region’s companies and funds to higher levels of performance and support its global leadership year-after-year.
While Australia and New Zealand continue to lead, this year’s relative improvement in average ESG performance trails other regions – from 70 to 74. This reflects the challenge of trying to continue to raise the bar from an already high level of performance. Regardless, companies and funds in the region made notable improvements in Building Certifications, Policy & Disclosure, and Performance Indicators.
Going forward, there will be no rest for the world’s leading region. Governments in Australia and New Zealand are expected to develop more aggressive policies to achieve the goals of the COP21 climate agreement. Investors are moving beyond disclosure to demand tangible improvements in operational performance metrics, such as energy intensity or water consumption. At the same time, companies and funds around the world are working hard to improve their performance and close the gap with Australia and New Zealand. This creates a challenge for companies and funds in the region. Fortunately, owners, investors, and society will all benefit from their efforts to maintain their leadership position.
2016 GRESB Snapshot - Australia/NZ
© 2016 GRESB BV
Property type Entity name
Retail Lendlease Sub-Regional Retail Fund - Lendlease
Office - Listed DEXUS Office Trust
Office - Private Australian Prime Property Fund Commercial - Lendlease
Diversified - Retail/Office Stockland 🌐
2016 GRESB Participants - Australia/NZ
GRESB Global Partners
Premier Partners - Australia/NZ
Partners - Australia/NZ
Sector Leaders - Australia/NZPerformance Indicators
� 5-year participant ♥ Health & Well-being Module completed
About GRESBGRESB is an industry-driven organization committed to assessing the environmental, social, and governance (ESG) performance of real assets globally, including real estate portfolios (public, private and direct), real estate debt portfolios, and infrastructure. More than 200 members, including 58 pension funds and their fiduciaries, use GRESB data in their investment management and engagement process, with a clear goal to optimize the risk/return profile of their investments. For more information, visit www.gresb.com.
Institutional capital represented by GRESB's 58 Investor Members$7.6 trillion
Like-For-Like Change 2014-2015 (relative) Equivalent of ChangeFootprint 2015 (absolute)
2%34,395MWh
5.4%
91,271tonnesCO2
0.07% 152,153
m3
3,767,401MWh
81% AveragePortfolio Coverage
2,312,696tonnes CO2
95% AveragePortfolio Coverage
26,347,894m3
96% AveragePortfolio Coverage
1,472,514tonnes
92% AveragePortfolio Coverage
721,532tonnes
diverted49% Diverted fromlandfill
ENER
GY
⌁ Equivalent of 3,037 homes
CAR
BO
N E
MIS
SIO
NS
☁
WAT
ER
💧
WA
STE
trash
Equivalent of 19,279
passenger cars
Equivalent of 62
Olympic pools
Equivalent of 80,170
truck loads
GRESB defines “like-for-like” as the fraction of a portfolio continuously owned by an entity for at least 24 months. Like-for-like measurements represent a relatively stable sub-set of a portfolio, and they may better reflect management action to improve performance. GRESB like-for-like metrics do not directly account for variation in weather, occupancy, and other factors.
The GRESB Performance Indicator Score is the weighted combination of data coverage, like-for-like change, intensity, third-party review and related factors for energy (55.6%), GHG (15.9%), water (15.9%), and waste (12.7%).
🌐 Global Sector Leader
0
20
40
60
80
100
2014 2015 2016 2014 2015 2016
Per
form
ance
indi
cato
r sc
ore
achi
eved
� Energy
� Carbon emissions
� Water� Waste
Performance Indicator Score Development
Global Australia/NZ
ListedCromwell Property Group Cromwell Property Group (Core) DEXUS Office Trust ♥DEXUS Property Group �♥
GPT Metro Office Fund ♥Growthpoint Properties Australia Investa Office Fund (IOF) � Mirvac �♥
Scentre Group Shopping Centres Australasia Property Group RE Limited Stockland �♥
The GPT Group �♥
Vicinity Centres �
PrivateAMP Capital Investors � Brookfield Office Properties Australia Pty Ltd Cbus Property ♥Charter Hall � CorVal DEXUS Property Group �♥
Eureka Funds Management Fife Capital Management Pty Limited Fortius Funds Management Frasers Property Australia �♥
Goodman Group � Investa �ISPT �♥
LaSalle Investment Management Lendlease �♥
Local Government Super � Logos Investment Management Pty Ltd QIC Global Real Estate � Scape Australia The GPT Group �♥
Vicinity Centres � Growthpoint Properties ♥Hyprop Investments Limited ♥Redefine Properties Limited ♥
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