Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable development
• Asset management
• Corporate performance
• People and community

Environmental Achievements

• Over 7 MW of renewable energy installed or in progress in Continental Europe, Japan and Australia
• Approximately 87% of common areas now use LED lights, reducing energy consumption by up to 60% for our China properties
• 6% reduction in energy consumption across Goodman’s Australian office portfolio using the Buildings Alive system
• Goodman’s FY18 greenhouse gas emissions for its Australian operations are estimated at 35,524 tonnes of CO2 -e., a reduction of 2,032 tonnes

Social Achievements

• 4% increase from FY17 in Good + Heart hours donated by our people
• Staff fundraising increased by 15% year on year.
• Goodman’s support with property space saved millions of dollars for Good360 Australia so it could use those resources for core programmes
• The charity also uses the Goodman supplied warehouse to run traineeships for the long-term unemployed

Governance Achievements

• GRESB 3 Star Green Star status or above achieved by all previously participating Goodman entities
• Goodman Australia Industrial Partnership (GAIP) and Goodman Japan Core Partnership (GJCP) ranked 1st in their respective peer groups
• All previously participating Goodman Partnerships maintained Green Star status, achieving 3 Star or above, with three Partnerships achieving 4 Star

Climate Goals & Targets

Environmental Challenges

• Rapid advances in technology, urbanisation, the growth of e-commerce, evolving patterns of consumer behaviour and the modernisation of supply chains
• Automation increasing energy consumption and a property’s environmental footprint
• Concrete and steel production are major contributors to emissions from construction materials
• The iron and steel industry produces about 5% of the total world greenhouse gas emissions per annum

Mitigation Strategies

• Incorporating smart energy solutions such as renewable energy generation, LED lights and smart metering
• Partnering with our supply chains to create spaces using responsible materials and means
• Continually investigating lower emission construction methods and products, in addition to technologies that reduce emissions from the operational phase of each building’s lifecycle
• Reviewing options to reduce the embodied carbon in our developments, such as modified forms of concrete
• Investigating sources and availability of lower emission steel, to identify potential alternatives with a reduced carbon intensity

Supply Chain Management

Responsible Procurement

• Partner with our supply chain providers to promote on-site waste management and provide recycling opportunities

Climate-Related Risks & Opportunities

Physical Risks

• rain, hail, storms, flooding, snow, wind, fire and heat

Opportunities

• Continued evolution of renewable technologies, particularly solar and battery

Reporting Standards

Frameworks Used: GRESB, UN Sustainable Development Goals (UNSDGs)

Certifications: Green Star, BREEAM, LEED, CASBEE

UN Sustainable Development Goals

• Goal 7
• Goal 11
• Goal 12
• Goal 13
• Goal 17

We understand our role in a global sustainable future and as part of our annual strategy review and planning process we reviewed how these goals aligned with our own sustainability strategy. We found 8 of the 17 UNSDGs were relevant to our business.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy
• Carbon Neutrality
• Water Conservation
• Energy Efficiency
• Workplace Safety
• Gender Equality
• Supply Chain Ethics
• Modern Slavery
• Community Investment
• Stakeholder Engagement

Environmental Achievements

• Reduced energy use by approximately 15% across the Australian office portfolio
• Reduced water consumption by approximately 60% at Australian properties
• Reached approximately 50MW of solar PV in operation on Goodman’s rooftops across the global portfolio
• Increased target from 100MW to 400MW of solar PV capacity installed by 2025
• Completed sustainably certified developments in Europe, the UK, Australia, Japan, China and the United States
• Completed a global climate risk assessment in accordance with TCFD recommendations (two years ahead of target)

Social Achievements

• More than doubled annual contribution to community and philanthropic causes to $13.7 million
• Increased efforts to minimise the risk of modern slavery in supply chains
• Implemented well-being initiatives in developments benefiting customers (health and recreation facilities, breakout spaces)

Governance Achievements

• Adopted TCFD guidelines for climate risk assessment and disclosure (two years ahead of target)
• Maintained investment grade credit rating (BBB+ (S&P) and Baa1 (Moody’s))
• Goodman Group and Goodman Japan Partnership achieved 5 Stars and were awarded Sector Leader in the 2019 GRESB survey

Climate Goals & Targets

Environmental Challenges

• Climate-related risks (increasing temperatures, extreme precipitation, cyclones, hailstorms, sea-level rise)
• Modern slavery risks in global supply chains

Mitigation Strategies

• Global climate risk assessment and TCFD aligned disclosure
• Modern slavery evaluation process, supply chain review, ethical sourcing portal, updated Code of Conduct and Ethical Concerns Policy

Supply Chain Management

Supplier Audits: Over 100 suppliers audited (Australia)

Responsible Procurement

• Ethical Sourcing Portal
• Supplier questionnaire
• Updated Group Code of Conduct and Ethical Concerns Policy

Climate-Related Risks & Opportunities

Physical Risks

• Increasing temperatures and heatwaves
• Extreme precipitation events
• Cyclones
• Severe hailstorms
• Sea-level rise

Opportunities

• Renewable energy investments, on-site energy solutions, carbon neutral operations

Reporting Standards

Frameworks Used: GRI Standards (Core Option), TCFD, GRESB, MSCI, Sustainalytics

Certifications: ISO 14001 (aligned)

Third-party Assurance: NGER (for financials and selected environmental measures)

UN Sustainable Development Goals

• Goal 3
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 15

Awards & Recognition

• 2020 NSW RFS Supportive Employer Award

Environmental Metrics

ESG Focus Areas

• Climate risk management

Environmental Achievements

• Achieved carbon neutrality for its global operations in 2021 by increasing the use of renewable energy and investing in 100% Australian carbon credit units. Scope 1 and 2 GHG emissions from operations in Australia decreased by 14% in absolute value compared to 2018 levels.

Social Achievements

• Not disclosed

Governance Achievements

• Aligned its climate risk assessment and ESG-related disclosure with Task Force on Climate-related Financial Disclosure (TCFD) framework guidelines in 2020. Risk and Compliance Committee oversees sustainability objectives and targets.

Climate Goals & Targets

Environmental Challenges

• Scope 3 emissions represent a large majority of the Group’s total emissions, but Goodman has neither operational control nor visibility over its scope 3 tenants’ emissions.

Mitigation Strategies

• Investing in onsite power generation through solar PV systems, energy efficiency initiatives, and procurement of electricity through renewable energy certificates. Prioritizing the procurement of renewable energy certificates (RECs).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Working with supply chain partners to identify lower carbon solutions for the production process of its construction materials (concrete and steel)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: Climate Active (Australian Government)

Third-party Assurance: Independent external verification by an accredited/qualified party

UN Sustainable Development Goals

• SDG 7
• SDG 9

Reducing GHG emissions contributes to affordable and clean energy (SDG 7) and upgrading infrastructure to make it sustainable (SDG 9).

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Actively contributing to the net zero transition
• Owning strategically located properties close to consumers in key global markets
• Developing and adapting innovative, efficient, and flexible properties with a future focus
• Demonstrating Goodman’s values and promoting diversity, inclusiveness, and social equity
• Investing responsibly with defined governance and sustainable capital structures
• Promoting workplace safety and wellbeing
• Delivering resilient assets that support human health and value natural capital
• Influencing the sustainability practices of our value chain

Environmental Achievements

• Reached approximately 75% of our 2025 solar PV target (306MW installed or committed to)
• Maintaining carbon neutrality for global operations
• Achieved key green building certifications around the world (including first 6 Green Star Design ratings in New Zealand)
• Completed physical climate risk assessments in four regions (New Zealand, Hong Kong SAR, Mainland China, Continental Europe)
• Reduced Scope 2 market-based emissions substantially due to GreenPower and I-RECs

Social Achievements

• Zero reported fatalities on construction projects overseen by Principal Contractors
• 99% of employees demonstrated Goodman’s values
• 6.24% voluntary turnover
• 95% parental leave return rate
• Goodman Foundation invested $10 million in cash, plus $0.8 million in staff fundraising and in-kind contributions, bringing total investment to $42.4 million

Governance Achievements

• Maintained investment grade credit rating (BBB+ (S&P) and Baa1 (Moody’s))
• Strong GRESB, MSCI, and Sustainalytics ESG benchmark performance
• Updated climate disclosures in line with TCFD guidelines
• Established sustainability-linked loans and green loans in four operating regions

Climate Goals & Targets

Environmental Challenges

• Availability of low-carbon solutions and materials
• Managing increasing power supply demand
• Customers’ GHG emissions (Scope 3)
• Cultural, socio-economic differences in implementing sustainable sourcing framework
• Low voluntary turnover and high retention impacting female representation in senior roles
• Cybersecurity risks

Mitigation Strategies

• Engaging with suppliers, architects, builders, consultants and industry groups on low embodied carbon solutions and materials
• Increasing use of renewable electricity and installing solar PV systems
• Sustainable design, retrofitting existing assets, and installing solar PV systems to reduce customers’ emissions
• Tailored approach to sustainable sourcing in each region, sharing knowledge and best practices
• Targeted recruitment, talent reviews and career development to increase female representation
• Safeguarding critical systems, networks, and sensitive information from cyber-attacks

Supply Chain Management

Responsible Procurement

• Sustainable Sourcing Framework (considering social and environmental impacts)
• Statement of Business Ethics
• Modern Slavery Statement

Climate-Related Risks & Opportunities

Physical Risks

• Increasing temperatures and heatwaves
• Extreme precipitation events
• Windstorms
• Severity of hailstorms
• Sea level rise
• Wildfires
• Landslides

Transition Risks

• Regulatory changes
• Market shifts
• Availability of low-carbon materials

Opportunities

• Development of energy-efficient products
• Onsite solar PV
• Sustainability-linked finance

Reporting Standards

Frameworks Used: GRI, TCFD, SBTi

Certifications: LEED, Green Star, BREEAM, BEAM Plus, Energy Star, Climate Active Carbon Neutral Standard

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 5 (Gender Equality)
• Goal 10 (Reduced Inequalities)
• Goal 17 (Partnerships for the Goals)

Progress on sustainability strategy contributes to addressing these goals

Sustainable Products & Innovation

• Multi-level developments
• Data centers with sustainable design features
• Lower global warming potential concrete
• Battery storage
• Energy, water, and waste smart metering
• Carpark solar PV structures

Environmental Metrics

ESG Focus Areas

• Sustainable Properties
• People and Culture
• Corporate Performance

Environmental Achievements

• 40.9% reduction in corporate emissions from FY20 base year
• 17% reduction in upfront embodied carbon emissions in FY24 completed developments compared to similar sized reference buildings
• Toitū net carbonzero certified since 2021
• 5 and 6 Green Star ratings achieved for developments completed in FY23 and FY24

Social Achievements

• Engaged team score 88% in 2023 workplace survey
• Employee retention rate of more than 95% over the last year
• Abilities Group contracted for recycling of LED lighting upgrade programme
• Social procurement encouraged in new construction contracts and supplier agreements

Governance Achievements

• Maintained a leadership CDP climate score of A-
• Sustainable Finance Framework with $450 million of Green Bonds and Green Loans
• Alignment with the NZX Corporate Governance Code
• GRI reporting framework

Climate Goals & Targets

Environmental Challenges

• Reducing the intensity of upfront embodied and in-use carbon emissions
• Supply chain disruption in the construction sector due to decarbonization
• Increased cost of capital due to ESG expectations
• Increased cost of insurance following climate-related losses
• Potential for assets to become stranded due to policy changes
• Customer preferences shifting towards more sustainable properties

Mitigation Strategies

• Utilizing lower carbon building materials and construction techniques
• Targeting a minimum 5 Green Star rating for all new projects
• Recycling and repurposing demolition materials and construction waste
• Maintaining existing buildings to maximize operational efficiency
• Retrofitting new building technologies that improve energy efficiency
• Engaging with customers on carbon reduction initiatives
• Implementing green leases
• Utilizing the Sustainable Finance Framework
• Investing in resource flexible buildings

Supply Chain Management

Responsible Procurement

• Social procurement encouraged in new construction contracts and supplier agreements
• Team members trained to assess potential risks in our supply chain in relation to money laundering and modern slavery

Climate-Related Risks & Opportunities

Physical Risks

• Pluvial flooding
• Fluvial flooding
• Coastal erosion
• Extreme temperatures

Transition Risks

• Changes in customer preferences
• Stranded assets
• Increased cost of insurance
• Increased cost of capital
• Increased cost of development

Opportunities

• Reduced customer opex
• Increased revenue from redevelopment opportunities
• Lower insurance costs for lower-risk assets
• Decreased funding costs
• Improved leasability of energy-efficient assets

Reporting Standards

Frameworks Used: GRI, Aotearoa New Zealand Climate Standards

Certifications: Toitū net carbonzero, Green Star

Third-party Assurance: Toitū

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Community Investment
• Sustainable Sourcing
• Workplace Safety and Wellbeing

Environmental Achievements

• Maintained carbon neutral operations status under Climate Active.
• Global renewable energy usage remained above 80%.
• Added 24 MW of solar PV installations and/or commitments.
• Completed approximately 30 life cycle assessments in FY24 to measure embodied carbon.

Social Achievements

• Social investment of $13.5 million by the Goodman Foundation.
• Employee volunteering hours totaled 3,993.
• Average positive employee engagement score of 84%.

Governance Achievements

• Continued implementation of the Sustainable Sourcing Framework.
• Maintained investment grade credit rating.

Climate Goals & Targets

Environmental Challenges

• Higher global cost of capital impacting property valuations.
• Macroeconomic uncertainty impacting customer activity levels.
• Supply chain disruptions.
• Cybersecurity risks.

Mitigation Strategies

• Prudent capital management with low gearing and significant liquidity.
• Focus on core property portfolios in key urban market locations and adaptable assets.
• Active asset management and capital rotation.
• Strategic investments in data centers.
• Strong risk management systems and processes, including cybersecurity measures.

Supply Chain Management

Responsible Procurement

• Sustainable Sourcing Framework

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Storms
• Heat

Transition Risks

• Changes in building standards
• Financial market regulation
• Industrial relations laws
• Taxes/subsidies
• International comparative standards

Opportunities

• Development of energy-efficient products and services
• Investment in renewable energy sources
• Redevelopment of properties for higher value uses

Reporting Standards

Frameworks Used: TCFD

Certifications: Climate Active Carbon Neutral Standard for Organisations

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)

Goodman's initiatives contribute to these goals through emission reduction, renewable energy use, sustainable building practices, and community engagement.