Australia's leading run on environmental, social and governance performance continues
The 2017 Global ESG Benchmark for real estate assets (GRESB) has found that Australia and New Zealand’s continue to be world leaders in environmental, social and governance (ESG) performance.
Australian and New Zealand property companies continue their unbroken run outperforming all other regions in this year’s report. The average score was 73 and compares to the global average of 63.
Sixty-six, Australian companies, representing $205 billion in assets, now report to GRESB.
Lendlease’s Australian Prime Property Fund Commercial claimed the top spot of all 849 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.
Dexus Wholesale Property Fund was named a global sector leader amongst private funds for the diversified office and retail groups.
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 amongst listed companies for the diversified office and retail sector.
“This is a remarkable result given that the Australian companies that report to GRESB has grown by 20 per cent in the last year”, said Ken Morrison, Chief Executive of the Property Council of Australia.
“It’s not just that ESG principles are valued by management, increasingly they are valued by investors as well.
“This is Aussie and Kiwi leadership demonstrating that energy efficiency, emissions reduction, diversity, inclusion, and health and wellness can be integral parts of property management.
“However, we should acknowledge that the gap between Australia and the rest of the world is closing and this suggests that the lack of clarity around climate and energy policy is influencing our ability to continuously improve.”
“The success of these Australian funds and companies follows the announcement by the Dow Jones Sustainability Index that Mirvac is its top real estate group.”
Mr Morrison said the Property Council of Australia works closely with the Green Building Council of Australia and facilitates a National Sustainability Roundtable which allows sustainability leaders of the industry to share ideas and drive industry-wide strategies for sustainability.
Paul Ritchie | [email protected]