Climate Change Data

Environmental Metrics

ESG Focus Areas

• Water Conservation
• Environmental Sustainability

Environmental Achievements

• Reduced water intensity in office and retail portfolio by 29% since 2013.
• Achieved a 3.96-star average NABERS Water rating across the office portfolio (pre-COVID).
• Improved 380 St Kilda Road's NABERS Water rating from 3 stars in 2012 to 5 stars in 2020.

Social Achievements

• Proactive customer communications to build understanding about water conservation.
• Collaboration with industry peers, government, and water utilities to improve water infrastructure and programs.
• Implementation of water-efficient fixtures and fittings in residential developments.

Governance Achievements

• Transparent reporting on water use, offsets, and net positive water strategy.
• Peer review of the net positive water plan.
• Commitment to continuous improvement and innovation in water management.

Climate Goals & Targets

Environmental Challenges

• Varying rainfall conditions across Australia, intensified by climate change.
• Ineffective water policy due to low commercial signal on water.
• Lack of clear data within the property industry.
• Challenges in influencing tenant and customer behavior.
• Increased potable water use due to portfolio growth, changes in rainfall, higher temperatures, and increased tenant amenities.

Mitigation Strategies

• Focus on water efficiency initiatives, behavioral change, and procurement.
• Capture, production, and supply of non-potable water to replace potable water use.
• Setting ambitious NABERS Water rating targets for new and existing office assets.
• Continuous improvement in water-efficient fixtures and fittings and rainwater tanks in residential developments.
• Collaboration with stakeholders to innovate with water infrastructure and reduce potable water use.

Supply Chain Management

Responsible Procurement

• Preferencing suppliers with lower embodied water in their products.
• Requesting information about water used in materials through Environmental Product Declarations.

Climate-Related Risks & Opportunities

Physical Risks

• Increased evaporation
• Intense precipitation events
• Droughts

Opportunities

• Innovation in water infrastructure
• Water-efficient technologies

Reporting Standards

Frameworks Used: NABERS, National Greenhouse and Energy Reporting

UN Sustainable Development Goals

• SDG 6: Clean Water and Sanitation

Reducing water consumption and offsetting through recycled water supply.

Sustainable Products & Innovation

• Water-efficient fixtures, fittings, and appliances
• Rainwater tanks

Environmental Metrics

ESG Focus Areas

• Health and safety
• Innovation
• Sustainability

Environmental Achievements

• Achieved a 5.1 Star NABERS Energy rating average for office portfolio without GreenPower
• Achieved a 6.0 Star NABERS Energy rating for 23 Furzer Street in Canberra without GreenPower, reducing greenhouse gas emissions by approximately 100 tonnes per annum and saving $25,000 annually on energy costs.
• Launched a new sustainability strategy called 'This Changes Everything' aiming for net positive water, waste, and energy by 2030 and creating the first smart portfolio by 2020.

Social Achievements

• Launched a new health and safety initiative called ‘Be Safe for Life’, resulting in a 46% reduction in workers' compensation claims.
• Introduced a Diversity Policy in 2011 and received the highest rating from BlackRock for gender diversity disclosures.
• Recognized as an Employer of Choice for Gender Equality.
• Held inaugural National Community Day with over 700 employees volunteering.
• Rolled out several INSEAD programmes to top 150 employees focusing on culture, leadership and innovation.
• Improved employee engagement score (as defined by Aon Hewitt).

Governance Achievements

• Introduced a deferral requirement for short-term incentive awards to senior executives (25% deferred in FY14).
• Extended the Short Term Incentive program to all Mirvac employees for the first time.
• Actively engaged in the review and refinement of remuneration practices and policies.
• In the process of identifying two new non-executive directors to join the Board.

Climate Goals & Targets

Environmental Challenges

• Small Board size for a company of Mirvac’s size and complexity.
• Queries regarding the residential market, foreign investors, and potential housing bubble.

Mitigation Strategies

• Actively recruiting two new non-executive directors.
• Addressing concerns about the residential market by highlighting the undersupply of housing and the relatively low percentage of foreign buyers (11% of settlements in FY14).

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Modular homes with reduced construction time

Awards & Recognition

• Employer of Choice for Gender Equality

Environmental Metrics

ESG Focus Areas

• Climate Change
• Natural Resources
• Communities
• Social Inclusion
• People
• Trusted Partner

Environmental Achievements

• Reduced carbon intensity by 3.6%
• Reduced water intensity by 2.3%
• 96% of construction waste recycled
• Released plan to reach net positive carbon by 2030
• Australia’s first large-scale One Planet Living Community at Marrick & Co, Sydney

Social Achievements

• Increased community contributions by more than 800% since FY17 baseline (three years ahead of target)
• Launched first Social Return on Investment (SROI) report
• Partnership with Homes for Homes to address social and affordable housing needs in Victoria
• Partnered with Property Industry Foundation to build a house for homeless youths
• Donated land for Queensland’s first purpose-built bridging accommodation facility for domestic violence victims
• Maintained employee engagement score of 90%
• 43% of senior management roles held by women
• Workplace Gender Equality Agency Employer of Choice for the fifth consecutive year

Governance Achievements

• 50% gender representation on the Board
• Zero per cent like-for-like gender pay gap for three consecutive years
• Corporate governance framework consistent with ASX Corporate Governance Council’s principles

Climate Goals & Targets

Environmental Challenges

• Challenging residential market conditions
• Political and economic uncertainty
• Deterioration of institutional trust
• Climate change impacts
• Housing affordability
• Concerns about building quality and combustible cladding
• Digital disruption

Mitigation Strategies

• Disciplined approach to capital allocation
• Strong, diversified business model
• Focus on quality and operational excellence
• Commitment to transparency and responsible reporting
• Sustainability strategy (This Changes Everything)
• Build-to-rent (BTR) sector involvement
• Innovation program (Hatch)
• Proactive safety strategy (Thrive)
• Investment in technology and data analytics

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Social procurement with Indigenous businesses, social enterprises, and B Corps

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001, OHSAS 18001, AS/NZS 4801

Third-party Assurance: PricewaterhouseCoopers

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• All-electric buildings powered by 100% renewable energy

Awards & Recognition

• Workplace Gender Equality Agency Employer of Choice (5 consecutive years)
• Two PCA Innovation and Excellence Awards
• 2018 Green Globe Built Environment Award

Environmental Metrics

ESG Focus Areas

• Climate change
• Natural resources
• Our communities
• Social inclusion
• Our people
• Trusted partner

Environmental Achievements

• Reduced carbon footprint by 60% by switching a large portion of assets to 100% renewable energy.
• Released plan to send zero waste to landfill by 2030, including halving development waste and buying 25% recycled content.
• Achieved 69% diversion of operational waste from landfill and 95% of construction waste from landfill.
• Improved the carbon intensity of our operating portfolio by 49% from an FY18 baseline.

Social Achievements

• Delivered $9.3 million in community investment in FY20.
• Directed $9.4 million towards social procurement (almost $20 million since FY18).
• Concluded the House with No Bills study, delivering more affordable and sustainable homes.
• Held fifth annual National Community Day, with 800 employees participating.

Governance Achievements

• Established effective governance structures to help eradicate modern slavery.
• Maintained 50:50 gender representation on the Board.
• Maintained over 40% representation of women in senior roles.
• Released an Ethical Principles guide.

Climate Goals & Targets

Environmental Challenges

• Australia's worst bushfire season, devastating communities and biodiversity.
• Global outbreak of COVID-19, dramatically changing ways of living and working.
• Growing global outrage against injustice and inequity of racism.
• Scope 3 emissions associated with activities not within operational control.
• Poor definitions of scope 3 emissions boundaries.

Mitigation Strategies

• New energy agreement reducing carbon emissions by 60%.
• Further asset agreements signed to reduce emissions by an additional 5%.
• Joined RE100, committing to 100% renewable energy.
• Released second report on climate-related risks and opportunities (TCFD aligned).
• Implementing strategies to avoid, reduce, reuse, recycle, and regenerate materials.
• Focusing on energy efficiency across office assets.
• Developing a new way of measuring social impact and undertaking a qualitative study into social connections.
• Developing a new resource page on the Intranet linking employees to social and Indigenous enterprises, charities, and B-corps.
• Working towards a Stretch RAP with measurable targets on Indigenous procurement, employment, and training.
• Implementing a comprehensive Pandemic and Spread of Diseases Guidelines.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Social procurement
• Requesting environmental product disclosure for major procurement investments.

Climate-Related Risks & Opportunities

Physical Risks

• Bushfires
• Extreme weather

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Renewable energy
• Energy efficiency

Reporting Standards

Frameworks Used: TCFD, UNGC

Certifications: ISO 14001, OHSAS 18001, AS/NZS 4801

Third-party Assurance: Pricewaterhouse Coopers (limited assurance)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 11 (Sustainable cities and communities)
• Goal 13 (Climate action)

Initiatives contribute to reducing emissions, promoting sustainable urban development, and fostering resilient communities.

Sustainable Products & Innovation

• Picket & Co housing typology

Awards & Recognition

• Canberra’s Biggest Recycler (Cooleman Court)
• #2 in the world for gender equality (Equileap)
• Employer of Choice for Gender Equality (WGEA)
• #7 in Fast Company World’s Most Innovative Companies 2020
• #1 in the Property and Construction Sector in the 2019 AFR Most Innovative Company Awards
• Top 50 of the 100 Best Workplaces for Innovators globally (Fast Company)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Natural Resources
• Our Communities
• Social Inclusion
• Our People
• Trusted Partner

Environmental Achievements

• Reduced carbon footprint by 80 percent
• Transitioned entire retail portfolio and 90% of office portfolio to renewable electricity
• Reduced carbon intensity by 84 percent since FY13
• Diverted 69% of operational waste and 95% of construction waste from landfill
• Installed three 100kW solar PV systems across the industrial portfolio

Social Achievements

• Spent $7 million in community investment
• Directed $8 million towards social enterprises, Indigenous business and B-corps
• Hosted sixth annual National Community Day with over 800 employees participating
• Launched second Innovate Reconciliation Action Plan (RAP)

Governance Achievements

• Published first modern slavery statement
• Maintained AAA rating from MSCI
• Received A+ for strategy and governance, and A+ for property in the 2020 Principles for Responsible Investment assessment
• Received the Board Leadership of the Year award at the Climate Alliance Leadership Awards

Climate Goals & Targets

Environmental Challenges

• Impacts of the COVID-19 pandemic
• Climate change impacts (extreme weather, rising sea levels, bushfires, water scarcity)
• Transition risks (policy changes, legal liabilities, technological advancements, market shifts)
• Maintaining a strong reputation in a low-trust environment
• Managing risks within a diverse supply chain

Mitigation Strategies

• Robust balance sheet and diversified debt portfolio
• Prudent capital management
• Prioritizing employee health and wellbeing
• Net positive carbon target by 2030
• Net positive water and zero waste to landfill targets by 2030
• Proactive engagement with government and industry bodies
• Well-established processes and oversight bodies for supply chain management
• Implementing energy efficiency initiatives
• Investing in flood prevention infrastructure
• Utilizing prefabricated construction methods
• Developing alternative water supplies
• Designing and building water-efficient buildings
• Employing best practice bushfire building codes
• Transparent ESG reporting
• Investing in renewable energy
• Exploring lower carbon materials

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Social procurement initiatives
• Working with suppliers to use lower-carbon materials

Climate-Related Risks & Opportunities

Physical Risks

• Extreme temperatures
• Extreme rainfall
• Rising sea levels
• Bushfires
• Access to water

Transition Risks

• Policy changes
• Legal liabilities
• Technological advancements
• Market shifts
• Reputational risks

Opportunities

• Developing energy-efficient products
• Investing in renewable energy
• Capturing shift to low-carbon products

Reporting Standards

Frameworks Used: TCFD, UNGC

Certifications: ISO 14001, OHSAS 18001, AS/NZS 4801

Third-party Assurance: PricewaterhouseCoopers (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green ceramics made from waste materials
• Energy-efficient buildings

Awards & Recognition

• Best International Investor Relations Award (2021)
• Most Innovative Company in Property, Construction and Transport (AFR BOSS, 2 years running)
• Best Project Innovation (PCA Innovation and Excellence Awards)
• #7 and #49 on Fast Company’s Most Innovative Companies lists (2020)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water
• Waste
• Social Procurement
• Community Investment
• Reconciliation
• Gender Equality
• Diversity & Inclusion

Environmental Achievements

• Net positive in scope 1 and 2 carbon emissions, nine years ahead of 2030 target
• Released Planet Positive – Water, a plan to be net positive in water well ahead of 2030 target
• Recycling 94% of construction waste
• Increased waste diversion from 34% in FY13 to 68% in FY22 in office and retail portfolios
• 900 cubic meters of furniture and fit-out materials diverted from landfill at 55 Pitt Street development

Social Achievements

• $14m spent with Indigenous businesses, social enterprises, B-Corps, and charities in FY22
• $9.6m spent in independently verified community investment in FY22
• Launched Sonder app to support employee mental health and wellbeing
• Ranked #1 globally for gender equality by Equileap
• Ranked #1 in AFR BOSS Best Places to Work for Property, Construction and Transport sector

Governance Achievements

• Established HSE&S Board Committee to oversee HSE&S governance frameworks
• Refreshed Diversity & Inclusion strategy
• Developed Inclusive Leadership Program for leaders
• Secured management rights to the AMP Capital Wholesale Office Fund

Climate Goals & Targets

Environmental Challenges

• COVID-19 related lockdowns and restrictions
• Rising inflation and interest rates
• Supply chain issues
• Labor shortages
• Extreme wet weather and flooding
• Geopolitical instability

Mitigation Strategies

• Integrated and diversified business model
• Prudent capital management
• Early procurement
• Retention of core skillsets
• Strong relationships with tier one subcontractors
• Wellbeing and Mental Health strategy
• Supply continuity plans and alternative sourcing strategies

Supply Chain Management

Responsible Procurement

• Social procurement initiatives
• Commitment to ethical sourcing

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option, TCFD

Certifications: ISO 14001, OHSAS 18001, AS/NZS 4801

Third-party Assurance: PwC (limited assurance)

Sustainable Products & Innovation

• Net positive embodied carbon development (Aspect)

Awards & Recognition

• AFR BOSS Best Places to Work
• #1 Equileap Global Report on Gender Equality
• #1 best workplace to give back by GoodCompany

Environmental Metrics

ESG Focus Areas

• Climate Change
• Waste
• Water
• Social
• Our people
• Connection
• Inclusion
• Governance
• Procurement
• Finance & investment
• Capability & disclosures

Environmental Achievements

• Reached net positive in Scope 1 and 2 emissions by 2030, nine years ahead of intentions
• Recycling waste: 95% construction and 68% operations
• Completed our first Green Star Home at Waverley Park, Victoria
• Set Scope 3 emissions target to be net positive by 2030

Social Achievements

• Ranked #1 most gender equitable company in the world by Equileap
• Investment in Reconciliation education and support of Indigenous artists
• $13.9m in verified community investment; $9.2m spend on procurement with social and Indigenous businesses
• Established community partnerships to build capacity in social enterprises and support LGBTQ+ young people in property and construction

Governance Achievements

• Released fourth Modern Slavery Statement
• First business in Australia to receive the Equifax 5 Gold Star iCIRT rating
• Released Sustainable Finance Framework, with a third of our total debt facilities now certified as green loans

Climate Goals & Targets

Environmental Challenges

• Rising inflation and interest rates
• Supply chain issues
• Labour shortages
• Declining consumer confidence
• Wet weather, labour constraints, material shortages, and increased construction costs impacted our residential business, leading to construction delays
• Supply chain disruption, accelerated by COVID-19, geopolitical tensions, and the impact of cost-escalation and labour shortages in the construction industry

Mitigation Strategies

• Protecting our balance sheet
• Growing our third-party capital partnerships
• Maintaining our high-performing culture
• Enhancing our strategy in light of the changing environment
• Strategic procurement and other productivity initiatives
• Strengthening our capital strategy and deployment to growth sectors and lifting our exposure to high-quality, modern, capex-light assets
• Supply continuity plans and alternative supply arrangements

Supply Chain Management

Responsible Procurement

• Social procurement spend of $9.2m

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather conditions

Transition Risks

• Changes in domestic and international economic and macroprudential and regulatory measures

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option, TCFD

Certifications: ISO 14001, OHSAS 18001, AS/NZS 4801, Green Star

Third-party Assurance: PwC (limited assurance)

Sustainable Products & Innovation

• Green Star Home

Awards & Recognition

• Equileap #1 most gender equitable company
• Good Company one of the best workplaces to give back
• Stewardship Asia top Stewardship Leader
• MSCI AAA rating
• Sustainalytics Negligible Risk rating
• UN Principles for Responsible Investment 5 Star rating

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Achieved 4.5 Star average NABERS Water rating in our office portfolio
• 96% construction waste and 66% operational waste diverted from landfill
• 1 Darling Island Road, Pyrmont, Sydney, became our second building to be converted to all-electric base building services

Social Achievements

• $51.6m invested in a strong sense of belonging since FY23, surpassing our target of $50m by 2025
• $13.1m in community investment in FY24, and $72.3m since FY18
• Launched a Supplier Development Program in collaboration with Social Traders
• Re-certified as NSW’s only iCIRT-rated builder for second year in a row

Governance Achievements

• Maintained high governance credentials, including: UN Principles for Responsible Investment: 5 stars for Policy Governance & Strategy and 4 stars for Direct – Real estate; low risk rating; and MSCI: AA rating
• 43% of finance issued under sustainable finance instruments
• Fifth modern slavery report lodged with the Australian Attorney-General’s Department

Climate Goals & Targets

Environmental Challenges

• Challenging economic landscape, particularly in the Australian real estate market, driven by higher interest rates, elevated construction costs, and an increased cost of capital
• Industry-wide asset valuation declines across our portfolio, particularly in the office sector
• Supply chain challenges persisted through contractor insolvency, availability of skilled labour, and inflationary cost pressures
• Higher interest rates, persistent wet weather on the east coast, and continued cost escalation, supply chain constraints and labour shortages, placed pressure on delivery programs and settlement timings

Mitigation Strategies

• Maintaining a healthy balance sheet and a prudent approach to capital allocation
• Approximately $1bn of non-core asset sales and capital partnering initiatives
• Disciplined portfolio management focusing on growth sectors and high-quality assets with low capital expenditure
• Strategic procurement and other productivity initiatives
• Progressing planning outcomes, optimising design, securing pre-sales and pre-commitments, and procuring materials and labour to maximise financial returns

Supply Chain Management

Responsible Procurement

• Supplier Development Program
• Social procurement spend of $15.3m

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes
• Market shifts

Reporting Standards

Frameworks Used: GRI Standards: Core option, International Integrated Reporting Framework (2021)

Certifications: ISO 14001, OHSAS 18001, AS/NZS 4801, 5 Gold Star iCIRT rating

Third-party Assurance: PwC (limited assurance)

Awards & Recognition

• Good Company as one of the best workplaces to give back
• Australia’s most generous companies in the Australian Financial Review Corporate Philanthropy 50
• UN Principles for Responsible Investment: 5 stars
• MSCI: AA rating
• Sustainalytics’ 2024 Top-Rated ESG Companies list