We aim to provide business solutions that better serve our customers while reducing our impact on the environment.
The following elements are our key areas of environmental impact and how we seek to manage them:
Carbon and energy
Water management and quality
|Waste and materials|
|Australian first Green Star – Performance portfolio rating for 22 of our shopping centres|
|96% of Residential and Retirement Living and 39% of Retail waste diverted from landfill|
|Electricity intensity reductions at our retail centres, resulting in $30m savings since FY06|
|Pioneering solar air conditioning technology at Stockland Wendouree with CSIRO|
|Around 1,750 hectares reserved for biodiversity conservation and protection in perpetuity|
As a real estate manager and developer, we are always looking for smarter and more efficient ways to develop and operate our assets in line with our Operational Excellence strategic priority. We are committed to creating resilient assets and communities that can flourish with adaptive and responsive design. Our customers want to run their homes and businesses cost effectively, but also appreciate a connection to the natural environment.
For the benefit of our stakeholders, and society more broadly, we are committed to creating climate resilient assets and communities that can endure severe weather impacts and operate without disruption. Understanding where events are likely to occur and how well our assets and communities are able to respond enables us to improve the resilience of our assets and reduce risks to business continuity. It also potentially reduces the risk to human life and community safety.
Maintaining an active focus on climate change adaptation and resilience assists us to:
Our ability to understand and effectively respond to current and predicted climate change aims to:
Following our extensive work on the climate resilience of our retail buildings and infrastructure in previous years, in FY16 we developed a community resilience scorecard with an initial focus on our Retail portfolio. The purpose of the scorecard is to understand underlying issues in communities around social cohesion, economic viability and connectivity and to identify opportunities to contribute further to community resilience through our community development planning process. The community resilience scorecard has since been adapted and integrated into the climate resilience strategies for our Residential and Retirement Living businesses, allowing us to assess the resilience of buildings and infrastructure as well as our residents’ ability to respond to significant climatic events.
Across Commercial Property, we continued to focus on understanding the regional variances and unique vulnerabilities, using the 1-to-9 rating scale developed as part of our assessment methodology. Climate resilience assessments were undertaken at Stockland shopping centres at Bundaberg in Queensland and at Nowra in New South Wales in FY16. We also engaged the 19 centres assessed over the last four years to review progress on the range of climate resilience actions that have been implemented across the portfolio.
For our retail assets in North Queensland where there is a high exposure to extreme weather events, we have set a regional improvement target to be achieved by FY17. Our aim is to improve the regional average resilience score for North Queensland shopping centres from 5.9 to 5.5 through the implementation of recommended actions and reassessment of the centres in this region. During the year, we worked with the Cyclone Testing Station at James Cook University to complete two cyclonic wind vulnerability assessments at our shopping centres at Bundaberg and Hervey Bay in North Queensland.
We also completed a national review of our retirement living villages and residential masterplanned communities to identify those individual villages and communities which have the greatest exposure to climate extremes including heat waves, drought, flooding, storms, cyclones, coastal inundation and bushfires. We have also remapped all of our residential projects against a revised risk assessment matrix. Over the next 12 months we will focus our attention on preparing climate and community resilience plans for priority projects identified as being in high climate risk locations and implementing initiatives on all assessed sites.
Read more in our Climate and Community DMA at www.stocklandsustainability.com.au
We recognise we have a role to play to influence the energy efficiency of our assets and reduce emissions, and have taken a proactive approach to developing policies and implementing action plans over a number of years.
The increasing cost of energy, particularly electricity, poses a challenge for the property industry and for all Australians. Improving the energy efficiency of our assets and communities will not only ensure improved environmental outcomes, but will also improve cost of living and deliver tangible benefits for our business.
Across our commercial property developments and assets we continue to trial new technologies as they emerge and where proven successful, we stage implementation through the portfolio. This year, implementations included major LED lighting upgrades and large heating, ventilation and air conditioning (HVAC) system upgrades at centres in Queensland and New South Wales, which have resulted in projected energy savings of approximately 1,718,000kWh annually. This is equivalent to removing 255 passenger vehicles driven for one year.
Civil works on residential development projects constitute a major source of our emissions. Civil contractors fall inside our operational control boundary, as defined by the National Greenhouse and Energy Reporting Act 2007 (NGER Act). Our civil contractors use heavy equipment to move large volumes of spoil across sites to achieve development and landscape levels. We work with our contractors to develop strategies for bulk earthworks at a site and regional level, targeting opportunities to minimise vehicle movements, which reduces emissions, and, where possible, balance excess spoil and fill requirements, reduce earthworks and save money.
We are committed to design and technology innovation and access to alternative energy supplies to help us and our customers realise a cost efficient, low carbon future.
For our commercial properties, our approach to alternative energy is focused predominantly on solar PV, with installations already in place at Shellharbour, Green Hills and Nowra in New South Wales and Jimboomba in Queensland. In FY16 we committed to installing a 900 kW system at Stockland Wetherill Park in FY17, following feasibility analysis assessments conducted at 15 shopping centres and two business parks to identify new retail solar projects in FY17. The Wetherill Park installation will take our installed capacity to 2.27MW or 5.37% of FY13 retail electricity consumption, which is 70% above our Retail portfolio renewable energy target of 3.0% by FY17.
A large proportion of our retirement village homes already have solar PV installations. Over the next 12 months we will be looking closely at how solar can be adopted in the Residential business on a large scale through different network ownership and management models. We also focus on building embedded energy networks across our retail centres and retirement living villages. This enables larger installations to meet both base building and tenancy energy requirements and enables us to reduce the cost of electricity for our tenants and gain visibility of asset-wide energy consumption data. This allows us to identify further emission reduction opportunities and will enable us to work collaboratively with our tenants to further reduce their energy costs in the future.
Through our partnership with CSIRO, we have recently unveiled a new solar powered air conditioning system that aims to change the way energy is used on a commercial scale.
Operating at Stockland Wendouree Shopping Centre in Ballarat, Victoria, the system uses concentrating solar thermal technology to produce heat energy that powers the air conditioning system. The operational system is expected to significantly reduce HVAC electricity usage for commercial buildings. The roof space required for this pioneering technology can be 40% less than a traditional single stage desiccant system.
The Australian Renewable Energy Agency provided $520,000 support toward to the $1.2 million, three-year project, which has been jointly managed by CSIRO and Stockland.
Read more in our Carbon and Energy DMA at www.stocklandsustainability.com.au
Image © CSIRO
Asset ratings and certifications are a key means of assuring and demonstrating the quality of our projects and assets. These ratings serve as validation that key social and environmental aspects have been considered in our project and asset designs, developments and operations. Rating and certification schemes also enable us to demonstrate compliance with state and national regulations, benchmark our sustainability performance against our peers and regularly track and improve on our performance across our various asset classes.
At Stockland, we have a strong commitment to the use of product rating and certification tools to ensure the sustainability performance of our projects and assets:
Green Star is now a standard Stockland requirement on all shopping centre and retirement living developments, with a minimum of 4 Star Green Star – Design & As Built certification required. In FY16 we continued to extend our Green Star certifications across all new retail and retirement living projects, achieving 4 Star Green Star ratings at Stockland Harrisdale (Design) and at Mernda Retirement Village (Custom Design).
In addition, Stockland is progressing its Green Star – Communities certification credentials. Building on our FY15 achievement of the 6 Star rating at Aura in Queensland, we registered seven new projects for our residential communities at Cloverton, The Grove, Calleya, Newport, Willowdale, Altrove and Stamford Park. Six of these projects were subsequently awarded a combination of 5 and 6 Star Green Star – Communities ratings in August 2016, with the rating for Stamford Park expected to be received later in FY17.
Stockland’s Office and Business Parks portfolio achieved a NABERS combined portfolio average for energy in calendar year 2015 of 4.76, up from 4.64 in the prior year. For our Retail portfolio, we undertook ratings on a broader selection of sites for calendar year 2015, with 16 centres scoring energy ratings of 4.0 stars or better and 12 centres scoring water ratings of 4.0 stars or better. Hervey Bay was rated for the first time since development and achieved an energy rating of 4.5 stars.
In FY16, we progressed our Liveable Housing Australia (LHA) certifications, achieving a LHA Silver rated design for Willowdale House, our sustainability and community hub, and delivering the first stage of our LHA Gold Standard certified Willowdale Retirement Village. We also updated and relaunched our Retirement Living Design Guidelines to reflect LHA principles and committed to 100% LHA Silver for new greenfield retirement living village developments. We maintained our approach to achieve a target of 20% of medium density homes by FY18 and 50% target by FY19 to be developed in accordance with LHA Guidelines.
Read more in our Asset Rating and Certification DMA at www.stocklandsustainability.com.au
Stockland has the largest number of Green Star rated retail properties in Australia, as verified by the GBCA. In FY16 we continued to extend our ratings and certifications, with a key target to secure a Green Star – Performance portfolio rating for our retail centres. This is a new Green Star tool requiring an existing energy rating from NABERS.
In an Australian first, in June 2016 we achieved a Green Star – Performance portfolio rating for 22 of our metropolitan and regional retail centres, receiving an average 3 Star rating, which is considered ‘Good Practice’.
Stockland’s innovations such as climate adaptation and resilience, inclusive playspaces, electric vehicle charging stations and use of cool roof materials rated particularly well. We will now continue working with our retailers and the community to improve the sustainability management and performance of our retail centres and capitalise on savings we achieve through operational efficiencies to invest in bringing the next wave of new technologies to life.
In FY16 alone we invested in numerous energy efficient measures across various commercial property assets with projected energy savings of approximately 1,718,000kWh annually. This is equivalent to removing 255 passenger vehicles driven for one year.
These efforts add to our significant achievements since FY06, which have seen us reduce electricity usage by 30% per square metre, resulting in a $30 million saving from avoided bills within our Retail operations.
We maintain a strong focus on water management and quality in the development and operation of our assets, including improving the quality of rainwater runoff leaving our project sites, access to alternate water infrastructure and practical innovation to support more efficient water use.
Ensuring effective water management systems are in place to minimise consumption and manage water quality is a key priority. Effective systems deliver significant benefits to the environment and promote performance and cost efficiencies across our projects and operations.
We use the GBCA Green Star rating tools to support the design and delivery of water initiatives and to set a platform for optimal performance. All new commercial property and retirement living developments are required to achieve a minimum 4 Star Green Star rating. Green Star sets minimum standards for water management and efficiency in commercial property and retirement living assets.
We use the CCAP Precinct tool to help us manage the environmental impact of our projects. Our Residential business, for example, ran the CCAP Precinct tool on new bids to buy land. The Retirement Living business uses the CCAP Precinct tool on new retirement village developments or redevelopments, which enables the business to identify water reduction opportunities compared to regional averages.
All of our residential projects in NSW are BASIX compliant, and water tanks are typically provided at all homes to supply a combination of irrigation, toilets and laundry. Water Sensitive Urban Design is also considered in all our developments. As a minimum requirement for environmental approval on all projects, we have to reduce the pollutant load of any stormwater runoff before discharging water to receiving water bodies.
In Commercial Property operations, we undertake NABERS water ratings to benchmark the performance of our assets against industry standards and to measure the effectiveness of the initiatives and actions we implement. In our Office portfolio, we undertake NABERS ratings annually and have a long-standing portfolio average target of 4.5 stars. In FY16 we have undertaken ratings on 20 out of 23 established retail assets and our portfolio average target is 3 stars by the end of FY17. Several locations could not be rated due to utility billing issues, faulty metering or the absence of metering on bore water supplies. These issues will be rectified for the next rating cycle and we anticipate that we will rate all eligible assets in FY17.
In our Retirement Living business, upgrades to operational village clubhouses and common areas include water saving measures such as water efficient tap fittings and toilets and utilising rainwater tanks for water collection and irrigation where possible. In our Residential business, we generally hand operational control to councils following project completion.
Read more in our Water DMA at www.stocklandsustainability.com.au
Developments on greenfield sites can impact local bushland habitat, ecological communities and protected or significant species. These impacts occur both during construction and as a result of urbanisation and are for the most part particular to our masterplanned communities.
As part of our strategy to deliver shared value, we aim to minimise and mitigate these impacts to protect the biodiversity of our surrounding environments. We appreciate that preserving biodiversity enhances the liveability and vitality of our communities over the long term. Our Liveability surveys (with our residential communities) tell us that customers value green space and so balancing developable land with retention and activation of biodiversity is critical to the success of our masterplanned communities. By effectively minimising and mitigating the impacts on biodiversity, we are also able to reduce development approval delays at a local, state and national level.
Threatened species with habitats affected by our operations are considered as part of the environmental approval process for each development. In many cases we are able to conserve local biodiversity and place a large portion (if not all) of the significant species found on our sites into protected areas. In FY16 we had 25 projects in the construction phase with identified biodiversity on site to be protected. Many of the areas identified for protection include species that are considered threatened or vulnerable.
At Allura in Victoria, for example, we are protecting local grassland habitat for the Golden Sun Moth, and at Calleya in Western Australia we are protecting the Spider Orchids. We are also protecting various areas of koala habitat across our South East Queensland projects. Once these projects are complete, we will have placed approximately 1,750 ha of land into protection for local councils and the community to access and manage in perpetuity.
During the year we also completed the Stockland biodiversity calculator, piloted in FY15, and used it to assess the change in biodiversity value of our projects based on an initial pre-development value at a site. We have now applied the calculator to six new projects with all projects achieving a positive biodiversity outcome. The biodiversity calculator was also used to help us demonstrate the conservation outcomes for projects where we sought Green Star ratings from the GBCA.
Read more in our Biodiversity DMA at www.stocklandsustainability.com.au
To reduce our new environmental impact we aim to achieve:
10% reduction in the emissions intensity of our Office and Retail portfolios in FY17 (based on FY14 baseline).
40% reduction in energy usage per residential lot and retirement home incorporated into the design of newly developed projects (compared to regional averages).
Create a net positive impact on biodiversity across our new developments by FY17.
|40% reduction in potable water consumption per residential lot and 20% reduction per retirement home incorporated into the design of newly developed projects.|
|Our Environmental Metrics are provided on page 63 of our Annual Review.
Download Annual Review (PDF)