Unbroken leadership and untold stories

Australia’s property market continues its “unbroken streak of global leadership” and is once again the world’s most sustainable.

The latest Global Real Estate Sustainability Benchmark (GRESB) report, released last week, finds that our region has extended its leadership, despite increasing competition from other markets around the world.

GRESB surveyed a record 759 real estate companies and funds, representing more than 66,000 assets and AUD $3.7 trillion in gross asset value.

This year, the average GRESB score of companies and funds in Australia/New Zealand was 74, compared with the global average of 60.

Australia’s sustainability story is well known. Through collaboration, knowledge sharing and a willingness to take risks, our industry continues to shine as the world’s most sustainable.

However, there are many stories still to be told, and I’m delighted to share a few of them.

Stockland was named GRESB’s global sector leader for diversified office/retail, and Stockland’s team deserves a standing ovation for working tirelessly to embed sustainability across the business to improve the performance of its assets, enhance the transparency of its supply chain, and build communities loved by people.

Stockland has achieved more Green Star – Communities ratings than any other developer in Australia, and some of its communities are so large they will one day have their own postcodes. Stockland was the first to obtain Green Star certification for its entire retail portfolio and led the pack in launching the first property green bond. The Dow Jones Sustainability Index named Stockland the world’s most sustainable property company just last week.

As Mark Steinert, Stockland’s CEO says, “sustainability is integral to what we do, creating vibrant and thriving places to shop, work and live, now and into the future.”

This is what real leadership looks like.

Frasers Property Australia’s GRESB performance improved for the fourth year running – and Frasers Property topped the table of all diversified office/industrial/non-listed funds.

Earlier this year, Frasers Property secured the industry’s first ever Green Star portfolio rating for commercial and industrial properties. In the months since, the company has unveiled several 6 Star Green Star industrial facilities. But Frasers Property General Manager - Sustainability, Paolo Bevilacqua, says his team is “not resting on its laurels”.

“We have made significant progress in generating more sustainable outcomes for our commercial and industrial assets in recent times, but we are continually looking at ways we can improve.”

It’s this determination to drive best practice that sets Frasers Property apart.

DEXUS’s listed office portfolio achieved ‘regional sector leader status’, which CEO Darren Steinberg says is testament to an “active asset management approach” – one which has resulted in 87 Green Star ratings and some of the nation’s most iconic green buildings, such as 1 Bligh Street and 5 Martin Place in Sydney.

DEXUS has been benchmarking the sustainability performance of its listed property portfolio since 2008, and has cut energy consumption by 40 per cent since then. The team has set another ambitious target – a further 10 per cent reduction by 2020.

Darren says his company’s commitment to optimising the environmental performance and resilience of its buildings “ultimately creates a better customer experience”.

Lendlease was also recognised as a ‘regional sector leader’ for its steadfast commitment to sustainability in the retail and office – private categories. Lendlease’s APPF Commercial ranked third globally of 759 international companies.

Managing Director of Lendlease's Australian Investment Management business, Josh McHutchison, says “investors demand ongoing excellence” in sustainability, with around 68 per cent of the equity invested with Lendlease’s funds coming from investors with public commitments to responsible investment practices.

Whether it’s on $12 bn Barangaroo South site in Sydney or down at Library at the Dock in Melbourne, sustainability is a central pillar of Lendlease’s business strategy. This, Josh says, “puts customers, tenants and investors at the heart of our vision to create the best places and deliver positive legacies.”

As we continue to share the untold stories of sustainability leadership, the global green building movement is gearing up for World Green Building Week.

More than 27,000 companies across 75 countries are coming together to change people’s perspectives of green building. We’ll be hosting events in Sydney, Melbourne and Brisbane on Wednesday 28 September and launching a Green Star video to showcase the projects that have pushed boundaries, challenged beliefs and redefined business as usual.

We’ll also be announcing the Future Green Leader of the Year 2016-17, recognising and celebrating the contributions of next generation sustainability leaders.

As the stories of our GRESB leaders show, our movement isn’t just about buildings – it’s about driving change, enhancing resilience, supporting people and creating long-term value for communities.