Australian property companies the most sustainable in the world

19 Oct 2022

  • Several Australian property companies have ranked number one across benchmark categories for the 12th consecutive year
  • Oceania maintains the highest regional average score of 82 in the Standing Benchmark and 88 in the Development Benchmark
  • The 2022 benchmark saw GRESB’s largest ever growth in total numbers, with a 20% increase in real estate participation 
  • GRESB now covers US$6.9 trillion of real estate assets under management, up from US$5.7 trillion in 2021, and nearly 150,000 individual assets

Australian property companies top the 2022 GRESB Real Estate Benchmark, once again leading the global cohort in sustainability. 

GRESB is the global benchmark for environmental, social and governance (ESG) performance of real assets and Green Building Council of Australia (GBCA) CEO Davina Rooney said Australian companies continue to perform well in sustainability and it’s pleasing to see this reflected in the global results.

“Eliminating emissions from the built environment will require a lot of heavy lifting from our entire industry. In Australia we’re seeing a lot of big and small players in our industry take great strides toward the goal of a healthier, net zero future,” Ms Rooney said.

“We applaud all of the companies who have been recognised in the GRESB leaderboards, as well as the many other companies that are showing impressive leadership in this area.”

Every year, the GRESB Real Estate Assessment generates two benchmarks – the GRESB Standing Investments Benchmark, which considers ESG management and performance factors and is aimed at portfolios with operating buildings, and the GRESB Development Benchmark, which considers ESG management and property development factors and is for portfolios with new construction and major renovation projects.

Globally, Oceania maintains the highest regional average score of 82 in the Standing Investment Benchmark and 88 in the Development Benchmark.

Each year, participation in the GRESB Assessment grows significantly in light of strong investor interest in ESG data and sustainability, and 2022 was no exception – with the largest ever growth in real estate participation in real numbers, jumping 20% from 2021.

Property Council of Australia Chief Executive Ken Morrison said there is growing demand from the investment community for robust disclosure of sustainability credentials from property sector organisations. 

“GRESB continues to deliver these key insights and encourages investment flows to more sustainable projects and organisations,” Mr Morrison said.

“Australian companies are once again leading overall scores and providing a blueprint for other jurisdictions to follow in the transition to a resilient and decarbonised economy. Australia cannot achieve its net zero goals without the built environment. 

“Australian leadership is a testament to the innovation, collaboration and sustainability ambition of our industry and merits the global recognition on display in this year’s results.” 

Ruben Langbroek, Head of Asia Pacific at GRESB, added:

“Decarbonizing the built environment is one of the greatest challenges the global real assets industry faces today. We are proud to see the real estate sector in Oceania remain steadfast in its commitment to ESG transparency and performance and continue to lead the way in creating a more sustainable future for all with every passing year.”

GRESB's global leaders for Australia

2022 GRESB Real Estate Standing Investments Sector Leaders

Overall Global Sector Leaders (Achieved highest score for its sector)*

  • Office – Australian Prime Property Fund Commercial, Lendlease; ISPT 50 Lonsdale Street Property Trust, ISPT Pty Ltd; Lendlease One International Towers Sydney Trust (LLOITST), Lendlease
  • Diversified, Office/Retail – CBUS Property, CBUS Property; ISPT Core Fund, ISPT Pty Ltd. 
  • Residential – Lendlease Retirement Living Trust, 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)

  • Office - Australian Prime Property Fund Commercial, Lendlease; ISPT 50 Lonsdale Street Property Trust, ISPT Pty Ltd; Lendlease One International Towers Sydney Trust (LLOITST), Lendlease
  • Retail - Vicinity Centres Direct Portfolio, Vicinity Centres; AMP Capital Retail Trust, AMP Capital Funds Management Limited; Charter Hall Prime Retail Fund (CPRF), Charter Hall; Charter Hall Retail Partnership 1 (RP1), Charter Hall; Vicinity Centres Direct Portfolio, Vicinity Centres
  • Industrial - Aliro Trusco 1 Pty Ltd as trustee for the Aliro Group Industrial Value Fund, Aliro Management Pty Ltd; Frasers Property Industrial Australia Pty Limited, Frasers Property Industrial Australia Pty Limited
  • Diversified – Office/Retail - Cbus Property, Cbus Property; ISPT Core Fund, ISPT Pty Ltd
  • Diversified – Office/Industrial - Goodman Australia Partnership (GAP), Goodman Group; Growthpoint Properties Australia, Growthpoint

Overall Non-listed Regional Sector Leaders (Achieved highest score for its sector)

  • Office - Australian Prime Property Fund Commercial, Lendlease; ISPT 50 Lonsdale Street Property Trust, ISPT Pty Ltd; Lendlease One International Towers Sydney Trust (LLOITST), Lendlease
  • Retail - AMP Capital Retail Trust, AMP Capital Funds Management Limited; Charter Hall Prime Retail Fund (CPRF), Charter Hall; Charter Hall Retail Partnership 1 (RP1), Charter Hall
  • Industrial - Aliro Trusco 1 Pty Ltd as trustee for the Aliro Group Industrial Value Fund, Aliro Management Pty Ltd; Frasers Property Industrial Australia Pty Limited, Frasers Property Industrial Australia Pty Limited
  • Diversified – Office/Retail - Cbus Property, Cbus Property; ISPT Core Fund, ISPT Pty Ltd

2022 GRESB Real Estate Development Sector Leaders

Overall Global Sector Leaders (Achieved highest score for its sector)*

  • Office - Charter Hall Prime Office Fund (CPOF), Charter Hall
  • Healthcare - Dexus Healthcare Property Fund, Dexus
  • Retail - Scentre Group, Scentre Group
  • Diversified - ISPT Core Fund, ISPT Pty Ltd

*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 – Aliro Trusco 1 Pty Ltd as trustee for the Aliro Group Industrial Value Fund, Aliro Management Pty Ltd
  • Office – Charter Hall Prime Office Fund (CPOF), Charter Hall
  • Residential – Lendlease Retirement Living Trust, Lendlease

Overall Non-listed Regional Sector Leaders (Achieved highest score for its sector)

  • Industrial - Aliro Trusco 1 Pty Ltd as trustee for the Aliro Group Industrial Value Fund, Aliro Management Pty Ltd
  • Residential - Lendlease Retirement Living Trust, Lendlease