Purpose of the project:
To measure the energy efficiency features of its properties, Goodman has developed a unique assessment tool – the Goodman Sustainability Snapshot. Currently available instruments calculate overall energy consumption, including lessee operations over which a property landlord has no control. The Goodman tool gauges the intrinsic quality of just the building. By measuring the quality of assets in this way, Goodman is better able to advise on investment and timing for feature upgrades, including those related to sustainability. A more complete understanding of the total value of a property portfolio facilitates more meaningful conversations with the market and shareholders. Measurements are carried out regularly to track performance over time.
Assessment of energy efficiency features in a building provides a snapshot of the energy efficiency of insulation, heating, lighting, cooling and ventilation systems, as well as measuring and monitoring devices. Buildings with no heating or cooling system are neither privileged nor penalised. Renewable energy sources, such as photovoltaic panels do not impact scoring. The tool also provides for the implementation of new technologies like LED lighting.
Energy performance has the highest impact on sustainability for logistics assets, as opposed to water and waste which are almost entirely associated with lessee operations. It also has the greatest impact on operating costs. Assessment results allow potential improvements to be undertaken in a way that makes most economical sense. Elements under operational control can be retrieved solitarily, but customer involvement can make the process easier and quicker.
A first measurement of the assets in the Goodman Europe Logistics Fund (GELF) was carried out in 2011 and reviewed on an annual basis. In 2013, 97% of the portfolio (92 assets) was assessed again.
Overall, average scores improved across all regions in which GELF owns assets (France, Germany, Netherlands, Belgium, Hungary, Spain, Poland, Italy, Slovakia, Austria, Czech Republic). The positive results were due to the acquisition of new, advanced developments. Asset improvements were achieved by upgrading lighting to include sensors and replacing heating and ventilation systems. In the few assets that have cooling and ventilation systems, these features are of a very high quality to offer optimal efficiency.
Based on the energy performance of its assets, GELF has drawn up a five-year CAPEX plan. The plan has been integrated into the Fund’s technical and financial planning processes. As a result, management has an in-depth technical outlook on standing investments and an economically sensible timeline to upgrade specific features, especially those related to sustainability. Implementing energy efficiency improvements to selective properties offers GELF the opportunity to improve the level of ‘greenness’ of its portfolio. It also supports the Fund’s commitment to continual innovation, particularly in the area of sustainability, with the aim of creating real long-term value for stakeholders.
The Goodman Sustainability Snapshot is a valuable tool developed by Goodman specifically for its logistics assets. It means that GELF has a structured way to assess and continually improve the performance of its buildings, and in turn safeguard the future value of its portfolio.
“The Goodman Sustainability Snapshot places GELF in a prime position to ensure our assets perform optimally for customers and investors alike over the long term. Energy efficiency is a key concern. Enhancing assets in an economically sensible way not only benefits GELF, but supports the environmental efforts of customers who lease our properties.” - Emmanuel Van der Stichele, Fund Manager, GELF