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Our climate change related strategic activity is channelled through three key areas.

1. Maintain and grow a portfolio of highly efficient buildings

As the world moves to a low carbon economy, the property sector will experience transitional impacts including increased consumer preference for resource-efficient buildings. To ensure that Growthpoint continue to attract and retain premium tenants, we focus on continuous improvement in NABERS/Green Star ratings across our portfolio (a core driver for tenant demand).

Key activities in support of this objective include:

  • Annual project budget allocation for the identification, evaluation and implementation of energy efficiency projects each year (as an indication, this allocation has ranged from 6.5% and 8% of total annual capital expenditure over FY19 and FY20)
  • Oversight of third-party property managers via quarterly meetings and contractual Key Performance Indicators (KPIs) to maintain and/or improve NABERS ratings (with financial penalties if these are not met)
  • Consideration of energy efficiency in evaluation and development of new acquisitions

 

2. Progress decarbonisation by 2050

In 2017, Growthpoint announced a goal to reach net zero emissions by 2050 to frame our decarbonisation pathway in readiness for a low-carbon future. The majority of our operationally controlled emissions arise from third party supply of electricity (i.e. scope 2 emissions) with the remainder arising predominantly from small quantities of gas consumption. 

Key activities in support of this objective include:

  • Development and implementation of an Energy Purchasing Strategy to best manage Growthpoint’s combined energy cost and emissions reduction goals. The strategy is intended to secure the most cost-effective approach to decarbonisation of the Group’s energy supply in the near to medium term and allow improved definition of 2050 reduction goals
  • Ongoing investments in onsite renewable energy generation, including additional solar projects

 

3. Build climate resilience across portfolio

The property sector is exposed to existing and future physical impacts from climate change, both in the form of acute weather events causing direct damage and interrupting normal operations as well as chronic changes (increasing temperatures and sea level rise) that will have building design and operating cost implications. 

Growthpoint’s most immediate physical risk exposure is from flooding events, which have the potential to interrupt electricity supply and other key infrastructure as well as occupant accessibility and safety. We also have a number of properties in locations likely to experience marginal temperature increases due to climate change over coming years. 

Key objectives to support this activity include:

  • Investment in Climate Change Risk Assessments and Climate Change Adaptation Plans for material acquisitions and new developments
  • Maintenance of a Flooding Risk Register across the portfolio to identify assets at high risk of flooding and invest in preventative adaptation measures where necessary
  • Maintenance of Business Continuity and Disaster Recovery Planning policies in the event of extreme weather events affecting building access or safety
  • Ongoing activities to optimise efficiency and minimise potential cost impacts from higher energy requirements driven by marginal temperature increases