Tuesday, 19 October 2021
Key insights
- Australia has ranked number one in GRESB results for the 11th consecutive year
- Oceania maintains the highest regional average score of 79 in the Standing Benchmark and 84 in the Development Benchmark
- The 2021 benchmark saw GRESB’s largest ever growth; the group of listed entities grew by 20%, the non-listed group grew by 25%
- GRESB now covers US$5.7 trillion of assets under management, up from US$4.8 trillion in 2020, and nearly 117,000 individual assets
- Notable performance improvements were recorded in GHG emission, water and waste reductions with the most improvement seen in materials, highlighting the increased focus on material selection and embodied carbon
Australian property companies have topped the results of the 2021 GRESB Real Estate Assessment ranking, proving once again that Australia’s real estate sector leads the world in sustainability.
GRESB is the global benchmark for environmental, social and governance (ESG) performance of real assets and Green Building Council of Australia’s (GBCA) CEO Davina Rooney has applauded Australian companies for outperforming other regions for the eleventh consecutive year.
“In what has been a challenging year globally, our region keeps lifting the bar of ESG and sustainability within the property sector by meeting GRESB’s targets then innovating to improve results year on year.
“As we all have our eyes set on Glasgow as COP26 approaches, Australia’s property sector has strengthened its commitment to climate change mitigation, emission reduction and sustainability performance, and this commitment is second to none,” Ms Rooney said.
The GRESB Real Estate Assessment generates two benchmarks. The GRESB Standing Investments Benchmark considers management and performance factors and is is aimed at portfolios with operating buildings, while the GRESB Development Benchmark considers management and development factors and is for portfolios with new construction and major renovation projects.
Globally, Oceania maintains the highest regional average score of 79 in the Standing Investment Benchmark and 84 in the Development Benchmark.
Participation in the GRESB Assessment experienced its largest ever growth with the group of listed entities growing by 20% while the non-listed group grew by 25%, a spike likely driven by investor interest in ESG data and industry’s focus on emerging regulations.
Property Council of Australia’s Chief Executive, Ken Morrison, says GRESB’s ESG data is highly valued by investors, and defines the standards of sustainability performance and reporting.
“GRESB continues to set the international goalposts for ESG performance and Australia continues to score highly, showing the rest of the world how a sustainable, net zero and healthy future is possible.
“Our industry’s leadership is testament to what can be achieved when targets are in place and our sector leaders should be recognised and praised for their willingness to innovate to meet these goals,” Mr Morrison said.
GRESB’s Head of Asia Pacific, Ruben Langbroek, says the impacts of climate change and the international pandemic have accelerated responsible investments within the property industry, with institutional investors increasingly allocating their capital to portfolios that generate positive environmental, social and economic outcomes.
“We are realising that the environmental and social challenges we face cannot be solved with a business-as-usual approach. Our industry needs to respond by building back better, reaching net zero earlier and moreover, becoming climate positive.
“The 2021 GRESB results for Oceania show that transformative change is possible, and transparency on ESG performance supports this transition,” Mr Langbroek said.
—
GRESB’s global leaders for Australia
2021 GRESB Real Estate Standing Investments Sector Leaders
Overall Global Sector Leaders (Achieved highest score for its sector)*
- Office – Shared between Lendlease International Towers Sydney Trust, Lendlease; and Australian Prime Property Fund Commercial, Lendlease
- Retail – Non-listed – Australian Prime Property Fund Retail, Lendlease
*Overall Global Sector Leaders are also recognised as being the “Global Sector Leaders” by GRESB for achieving the highest score for the combination of nature of ownership and sector
Overall Regional Sector Leaders (Achieved highest score for its sector and region)
- Diversified – Office/Retail – Dexus Wholesale Property Fund, Dexus
- Industrial – Frasers Property Industrial Australia Pty Limited, Frasers Property Industrial Australia Pty Limited
- Office – Shared between Lendlease International Towers Sydney Trust, Lendlease; and Australian Prime Property Fund Commercial, Lendlease
- Retail – Australian Prime Property Fund Retail, Lendlease
- Diversified – Office/Industrial – Shared between Cromwell Property Trust 12, Cromwell Property Group; and Growthpoint Properties Australia, GrowthPoint
2021 GRESB Real Estate Development Sector Leaders
Overall Global Sector Leaders (Achieved highest score for its sector)*
- Diversified – ISPT Core Fund, ISPT Pty Ltd
- Diversified – Office/Industrial – Frasers Property Industrial Australia Pty Limited, Frasers Property Industrial Australia Pty Limited
- Office – Australian Prime Property Fund Commercial, Lendlease
- Retail – Shared between Scentre Group, Scentre Group; and Unisuper, managed by AMP Capital Investors Limited
*Overall Global Sector Leaders are also recognised as being the “Global Sector Leaders” by GRESB for achieving the highest score for the combination of nature of ownership and sector
Overall Regional Sector Leaders (Achieved highest score for its sector and region)
- Industrial – Shared between Core Logistics Partnership (CLP), Charter Hall; and Goodman Australia Partnership (GAP), Goodman Group
- Office – Australian Prime Property Fund Commercial, Lendlease
- Residential – Lendlease Retirement Living Trust, Lendlease
- Retail – Shared between Scentre Group, Scentre Group; and Unisuper, managed by AMP Capital Investors Limited
About Green Building Council of Australia
Green Building Council of Australia (GBCA) is the nation’s authority on sustainable buildings and communities. Our mission is to accelerate the transformation of Australia’s built environment into one that is healthy, liveable, productive, resilient and sustainable. We work with industry and government to encourage policies and programs that support our mission. We educate thousands of people each year on how to design and deliver sustainable outcomes for Australia’s buildings and communities. And we operate Australia’s only national, voluntary, holistic rating system for sustainable buildings and communities – Green Star. www.gbca.org.au
About Property Council of Australia
The Property Council of Australia is the leading advocate for Australia’s biggest industry and biggest employer – property. Our industry represents 13% of Australia’s GDP, employs 1.4 million Australians (more than mining and manufacturing combined) and secures the future of 14.8 million Australians who have a financial stake in property through their super funds. The Property Council champions the interests of more than 2,200 member companies that represent the full spectrum of the industry, including those who invest, own, manage and develop in all sectors of property, creating landmark projects and environments where people live, work, shop and play. Led by a powerful board and strong executive leadership team, the Property Council’s vision is a thriving industry creating prosperity, jobs and strong communities. The Property Council has around 100 staff located across 10 offices around the country to service the needs of our members.
About GRESB
GRESB is a mission-driven and industry-led organization providing standardized and validated Environmental, Social and Governance (ESG) data to financial markets. Established in 2009, GRESB has become the leading ESG benchmark for real estate and infrastructure investments across the world, used by 140 institutional and financial investors to inform decision-making. For more information, visit GRESB.com