Eco Innovation: Our Commitment
Deliver smart solutions that make a difference for our customers and the planet.

By creating and maintaining high-performing, environmentally efficient and resilient assets, we can not only minimise our carbon emissions and environmental impacts, we can also help our stakeholders combat issues important to their business.

178
Green Star Performance
rated buildings
18
Green Star Design and As Built rated buildings
Charter Hall has Australia’s largest Green Star footprint
ISSUES
OUR APPROACH
ISSUES & OUR APPROACH
Energy, water and waste efficiency and carbon footprint

The carbon, energy, water and waste associated with our large property portfolio can have significant impacts on our environment. Managing our impacts and optimising efficiency is also a crucial part of meeting Australia’s commitment to climate action under the Paris Agreement of 2015.

Energy security and pricing
Energy security and pricing poses a challenge due to increasing costs and power cuts during peak events, which create issues for our customers, our assets and for all Australians.
ENVIRONMENTAL
PERFORMANCE
SDG 12 Responsible Production and Consumption
Our approach incorporates the Global SDG 12 targets of sustainable management, efficient use of natural resources and substantially reducing waste generation. We will also work with our supply chain to adopt similar practices.
Climate change and increasing climatic events / global warming
Climate Change and increasing extreme weather events have the potential to damage our properties, disrupt operations and impact the safety and wellbeing of our employees, customers and visitors.
RESILIENCE
SDG 13 Climate Action
Our approach incorporates Global SDG 13 targets of strengthening the resilience and adaptive capacity of our buildings and developments to climate–related hazards and natural disasters, and the integration of climate change considerations in our governance processes.
Eco Innovation
The Issue Our Approach in FY18 FY20
Target
FY25
Target
Aspiration

Environmental Performance

     

Energy and Carbon

In Australia, the built environment represents 23% of the country’s emissions. As a manager of 332 assets nationally, we seek to reduce the emissions from our buildings.

Reducing our impact on the planet

Using the Science Based Targets methodology, we developed a 2–degree reduction and net zero carbon emissions pathway.

Since FY17 we have achieved a 1% reduction in emissions, through divestment of less energy efficient buildings; acquisition and development of more energy efficient assets; and base building energy efficiency upgrades. Future activities will align with our Science Based Targets pathway.

Implement pathway to an equivalent 2–degree reduction in emissions. Achieve the equivalent of a 2–degree reduction in emissions. Net Zero Emissions.

Our stakeholders are increasingly concerned about rising energy prices and security.

Invest in renewable technologies

Commenced solar installation feasibility studies across 16 shopping centres in FY18 and achieved the installation of a 250kW solar system at Singleton Square.

Significant increase in renewable energy across the entire Charter Hall portfolio, with 2.5MW of solar currently installed, and with our tenants generating 3,670MWh per annum in green energy.

This represents more than a 2MW increase in solar installations across Australia, since FY17, associated with our retail and industrial developments, in partnership with our tenant customers.

Implementation of solar projects across applicable Charter Hall managed shopping centres.

Renewable energy on all new large retail and industrial developments.

Renewable energy creation in portfolio.

Natural Resources

With natural resources depleting and an increasing national focus on addressing waste and recycling locally, it is important we continue to be responsible with our waste.

Improve our waste management

Charter Hall Office assets have achieved a 35% diversion of waste from landfill, a 3% decrease from FY17.

In retail, through implementation of our waste management strategy with Veolia, we maintained a 22% waste diversion across retail assets. Our waste management strategies will continue to work with our suppliers and tenant customers to achieve our targets.

50% waste diversion in retail and office assets. 70% waste diversion in retail and office assets.

Australia is the driest inhabited continent, and the demand on water resources is increasing with growing urban populations and agriculture, and variable rainfall.

Conserve Our Water Resources

In FY18, our office portfolio achieved a reduction in water intensity by 4% and our retail portfolio by 5.3%, reflecting the divestment of several high water consuming assets and the correction of water leaks in our retail portfolio.

We achieved an increased Office NABERS Water weighted average rating from 3.57 Stars in FY17 to 3.78 Stars in FY18. Despite addressing water leakages our weighted average Retail NABERS water rating decreased from 3.43 Stars in FY17 to 3.3 Stars in FY18.

Establish water targets. Implement water targets.

Green Certifications

Customers are increasingly demanding environmentally efficient and high performing assets.

Improving our Green Star footprint

Charter Hall has maintained and expanded our Green Star footprint. We continue to have Australia’s largest Green Star footprint, consisting of 178 Green Star Performance rated assets and 18 Green Star Design and Built assets, now achieving 5 and 6 Star standards. Our developments continue to achieve or exceed our Green Star targets and improvement plans are underway to meet Green Star Performance targets.

In FY18 we achieved an increased Office NABERS Energy weighted average rating from 4.5 Stars in FY17 to 4.66 Stars in FY18. Our Retail NABERS Energy weighted average rating also improved from 3.5 Stars in FY17 to 3.9 Stars in FY18, tracking towards FY20 targets.

3 Star average Green Star Performance rating across the Group.

5 Star Green Star Design and As Built ratings sought on all new large developments.

4.75 Star NABERS Energy weighted average rating for office assets.

3.75 Star NABERS Energy weighted average rating for retail assets.

5 Star Green Star Design and As Built ratings sought on all new large developments.

5 Star NABERS Energy Weighted Average Rating for Office Assets.

4 Star NABERS Energy Weighted Average Rating for Retail Assets.

Resilience

     

Impacts of Climate Change

Climate change and increasing extreme weather events have the potential to damage our properties, disrupt operations and impact the safety and wellbeing of our employees, customers and visitors.

Addressing Climate Change Risk

Climate change adaptation planning workshops were held across office, retail and industrial and adaptation plans commenced, in line with our FY20 targets.

Employee engagement and education on climate change impacts was undertaken in partnership with WWF.

We continued Red Cross community resilience programs across our communities.

All assets have climate change adaptation plans. Capital improvements in portfolio in line with climate change adaptation plans. Resilient communities and future proofed assets.

Address environmental risk

In line with our targets, we developed a draft Environmental Management Plan for rollout in FY19. Pre–certification audits were conducted across 10 office and industrial properties.

All assets have environmental management plans to AS 14001. Maintain certified EMS to ISO 14001.

For more detailed information on our environmental performance refer to Environmental Data Tables.

Environmental Performance
Resilience