Our environment
Sep 28, 2018

At QIC, we recognise the benefits of embedding objectives that reduce our environmental footprint and continually monitoring our performance against these objectives.

Our targets

We are implementing the environmental initiatives set-out below across our portfolio to deliver our commitments on energy, water and waste reduction targets.

In 2017, QICGRE established a new target to generate 30% of our core retail shopping centres base load power from renewable energy by 2025.

Our short to medium-term (1-5 year) environmental objectives, are:

 

Target Status
Reduce our energy, water and waste intensity by 20% by 2020 On Track
NABERS energy and water ratings for all core retail assets Complete
All new development projects to be designed to receive minimum 5 star NABERS energy rating Ongoing
Adopt real time energy monitoring to optimise energy efficiency On Track
Engage with communities to grow environmental education across the portfolio Ongoing
Increase external awareness of our Environmental Management System (EMS) and reinforce our policies through regular training Ongoing
Continuously improve the EMS in alignment with ISO 14001 toward certification Ongoing

 

Our long-term objectives are:


  • To transform our business processes to achieve a step-change toward sustainable energy against our stated target
  • To strive for innovation and social leadership projects to leverage across our portfolio, guided by our Corporate Social Investment (CSI)
  • To promote and educate to all our stakeholders the inherent values of our EMS Framework.
CEFC partnership

In 2018, QICGRE entered into a partnership with the Clean Energy Finance Corporation. The landmark agreement to invest $200 million into the QIC Shopping Centre Fund (QSCF), an Australian retail property first, will support improvements in energy performance across the portfolio.

National Australian Built Environment Ratings System (NABERS)

NABERS in a national ratings system that measures the environmental performance of Australian buildings. QICGRE submits properties in QIC Property Fund (QPF), QIC Shopping Centre Fund (QSCF) and QIC Government Office Fund (QGOF) for NABERS energy and water assessment.

In the most recent NABERS assessment period, the average portfolio energy ratings achieved were:

  • QIC Property Fund rating of 3.0 stars
  • QIC Shopping Centre Fund rating of 3.0 stars
  • QIC Government Office Fund rating of 4.0 stars.

The implementation of environmental initiatives is delivering ongoing annual improvements in these scores, with the goal of a minimum 4.0 star rating in future NABERS assessments a key target for QSCF assets in particular (a key target of our new partnership with the Clean Energy Finance Corporation).

Green Star

In 2018, QICGRE has begun submitting retail assets in our QARP and QACPF portfolios for Green Star Performance Portfolio Ratings, an internationally-recognised sustainability rating system for buildings, fitouts and communities.

Well suited to assets <20,000m2 GLA, the Green Star Performance Benchmark provides a holistic sustainability performance measure. 

GRESB

The Global Real Estate Sustainability Benchmark (GRESB) survey provides visibility and transparency on the sustainability performance of investment portfolios and benchmarks their investments across the global property sector, providing comparative business intelligence and a roadmap for improving ESG performance.

Since commencing GRESB ratings in 2012, QICGRE has consistently outperformed the national and global average rating. QICGRE again performed well in GRESB 2018, with 'Green Star' rating maintained across all funds.  QPF, QSCF and QGOF achieved the highest possible rating of 5 stars, with QARP and QACPF achieving a 4 star rating.

QICGRE is ranked in the top 5% of participating real estate divisions globally, with the Australian/New Zealand region recording the highest national average GRESB rating in the world. 

FUND GRESB Score 2018 Global Ranking Australian Peer Ranking
QIC Property Fund (QPF) 88 64th out of 874 4th out of 14
QIC Shopping Centre Fund (QSCF) 84* 14th out of 874 10th out of 14
QIC Government Office Fund (QGOF) 84 149th out of 874 10th out of 22
QIC Active Retail Property Fund (QARP) 82 187th out of 874 11th out of 14
QIC Australian Core Plus Fund (QACPF) 88 299th out of 874 12th out of 14

*A transcription error during completion of QSCF GRESB response impacted the overall GRESB score for this fund. A corrected response would increase QSCF overall score and move QSCF in the Global Rankings

Our data and trends

This year, QICGRE has formalised Environmental Reporting Standards, which define the scope and methodology for all environmental data reported through this ESG Report and other public interfaces.

Key observable trends in FY17/18 include:

  • Ongoing reduction in overall consumption intensity across most measured categories for QICGRE’s assets, including electricity, gas, water, and greenhouse gas (GHG) scope 1 and 2
  • Waste and recycling has been identified as an area of focus for the coming year. As well as a comprehensive portfolio audit which has already commenced, individual centres are implementing their own focused education and awareness programs such as the Hyperdome Recycling Project – read the case study here.
  • Our ongoing rollout of real-time monitoring software and sub-metering is also contributing to savings at some assets, and will provide growing opportunities to capture efficiencies in consumption in the coming years.
Electricity FY16 FY17 FY18 Variance Variance %
Number of metered areas 50 63 64 1 1.6%
Area (m2) 1,443,089 1,484,320 1,579,694 95,373 6.4%
Raw data (MJ) 538,848,420 535,738,605 529,278,857 -6,459,748 -1.2%
Intensity (MJ/m2) 373 361 335 -26 -7.2%
GAS FY16 FY17 FY18 Variance Variance %
Number of metered areas 10 12 11 -1 -8.3%
Area (m2) 577,881 568,109 546,573 -21,536 -3.8%
Raw data (MJ) 84,715,081 98,264,791 94,507,284 -3,757,507 -3.8%
Intensity (MJ/m2) 147 173 173 -0.0594 0.00%
WATER FY16 FY17 FY18 Variance Variance %
Number of metered areas 40 54 54 - %
Area (m2) 1,373,736 1,456,216 1,449,546 43,330 3%
Raw data (KL) 1,419,353 1,454,656 1,432,989 -21,667 -1.5%
Intensity (L/m2) 1,033 999 956 -43 -4.3%
WASTE - LANDFILL FY16 FY17 FY18 Variance Variance %
Number of metered areas 34 44 45 1 2.3%
Area (m2) 1,321,375 1,573,650 1,440,209 -133,441 8.5%
Raw data (tonnes) 15,008 17,942 20,442 2,500 13.90%
Intensity (tonnes/m2) 0.0114 0.0114 0.0142 0.0011 8.30%
RECYCLING FY16 FY17 FY18 Variance Variance %
Number of metered areas 32 40 42 2 5%
Area (m2) 1,297,218 1,582,544 1,448,892 -133,652 -8.4%
Raw data (tonnes) 8,042 9,623 9,742 119 1.2%
Intensity (tonnes/m2) 0.0062 0.0061 0.0067 0.0003 -3.9%
SCOPE 1 GHG FY16 FY17 FY18 Variance Variance %
Number of metered areas 10 12 11 -1 -8.3%
Area (m2) 577,881 568,109 546,573 -21,536 -3.8%
Raw data (tCO2-e) 4,354 5,051 4,866 -185 -3.7%
Intensity (tCO2-e/m2) 0.0075 0.0089 0.0089 0 0.1%
SCOPE 2 GHG FY16 FY17 FY18 Variance Variance %
Number of metered areas 50 63 64 1 1.6%
Area (m2) 1,443,089 1,484,320 1,579,694 95,373 6.4%
Raw data (tCO2-e) 137,168 127,914 127,578 -336 -.3%
Intensity (tCO2-e/m2) 0.0951 0.0862 0.0808 -0.0054 -6.3%
Climate change

Climate change and its impact on investments are an increasingly important focus of QIC’s Responsible Investment framework, with the potential to impact a wide range of asset classes and investments.

In 2017, QIC commenced a Climate Change Resilience Study to understand the potential physical impacts of climate change across the real assets we invest in. This work involved mapping the climate projections for over 40 assets in Australia to climate projections over different periods.

 

Based on this initial assessment, we were able to:

  • Understand the climate projections for the various regions throughout Australia where assets are located;
  • Develop a high-level risk screening process for each asset based on historical exposure to extreme weather events; and
  • Facilitate the informed prioritisation of further action to manage natural hazard and climate adaptation risk.

 

We are now in the process of building on this study to gain a more granular understanding of the potential vulnerability of key assets, by understanding the level of resilience measures in place at each asset.

 

Read more about the progress of this project in our Climate Change Case Study.

Automated operations monitoring

QICGRE has commenced implementation of a new approach to energy monitoring and optimisation, through  hardware (sub-metering) and advanced building tuning and optimisation services deliver real-time asset management.

The technology platform delivers:

  • A centralised platform which immediately identifies heating, ventilation and air conditioning (HVAC) plant and equipment faults to support enterprise monitoring
  • Root-cause analysis on each fault to determine source of inefficiencies
  • Solutions to on-site and third-party contractors to streamline and provide efficiencies in repair of faults
  • Prioritised opportunities for improvement based on energy, water consumption and maintenance, as well as the comfort of those within our assets.

This technology is already delivering significant savings and reducing energy consumption as the rollout continues. For more information, read our case study.

 

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Tags
ESG 2018
Sustainability
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