An inspiring journey towards decarbonisation

18 April 2024

Motivated by our purpose – to create a better way to live – our refreshed Environmental, Social and Governance (ESG) strategy is founded on four key pillars: decarbonisation, circularity, social impact, and resilience.  

This article dives further into our commitment to environmental sustainability in particular our commitment to continual improvement by understanding the potential impacts of a changing climate and mapping our pathway to decarbonisation. Our staged approach recognises the complexity and scale of the challenge while providing a structured framework for progress, grounded in science, and driven by possibilities 

In our retail town centres we seek to facilitate and improve the environmental sustainability of our operations and the communities within which they reside. From generating and using renewable energy to adopting circular practices, we are focused on creating shopping environments that reduce our carbon footprint and that of our retail partners. 

We are mindful of the areas where we have the greatest opportunity to drive meaningful impact that delivers positive change for the communities in which we operate 

Simple changes, every day 

Sustainability has increasingly become a key factor in consumer decision-making. As people become more conscious of environmental and social issues, they're seeking out brands that not only offer quality products or services but also align with their values. More than 60% of people^ are basing their purchasing behaviours on sustainability and ethical criteria, and this is growing by 10% each year. This shift in consumer behaviour has made sustainability more relevant than ever, providing retail businesses with the opportunity to not only appeal to a growing segment of environmentally conscious consumers but also foster long-term loyalty while building brand trust and integrity. 

Some of the most powerful environmental measures come in the form of simple changes that we can make together every day. Across our centres, we regularly evaluate our energy, water and waste practises to identify low impact ways to improve efficiency and performance.  

When many people are involved, the outcome is magnified. That’s why we support and encourage our retailers and customers to join us on the journey. Initiatives driving change with our retailers include promoting circular design principles to reduce carbon in fit outs and upgrades as well as de-fits, where fixtures, fitting, equipment, and furniture can be directed back into the circular economy and away from landfill. 

For our town centre customers, our campaigns and events continue to encourage sustainable living through fashion, food, and other lifestyle choices crucial for building a more environmentally conscious community from Farmer’s Markets through to circular fashion and sustainable living exhibitions. 

Taking action 

As part of our ESG commitment, Stockland has joined the United Nations’ Race to Zero – Business Ambition for 1.5°C, dedicated to limiting the worst effects of global warming and developed a Climate Transition Action Plan to outline our approach 

Developed with reference to the Science Based Targets Initiative (SBTi) criteria, and in response to the Task Force on Climate Related Financial Disclosures (TCFD), the plan highlights a practical and achievable decarbonisation pathway for retail town centres. The Plan is focused on leveraging innovation and our scale to implement economically sustainable solutions, with a focus on areas we can drive real results. 

Targeted, measurable results 

In collaboration with our retail partners, Stockland is rolling out changes across its retail town centres to deliver on our net zero scope 1 and scope 2 emissions targets in 2025, with our most material scope 3 emissions intensity halved by 2030 and a target of net zero across all three scopes by 2050* 

Throughout FY25 Stockland will continue to reduce our emissions intensity of our retail town centre portfolio through energy efficiency initiatives and onsite renewable energy generation. 

And it’s working. By a combination of energy efficiency initiatives and onsite renewable energy generation, Stockland has proudly achieved a 13% emissions intensity reduction across our retail town centre and workplace portfolio since FY20 (and a staggering 70% since 2006). 

Leveraging large scale, onsite renewable energy 

A key element of our plan is creating large scale, onsite renewable energy generation. The installation of rooftop solar panels and a new partnership with distributed energy company Energy Bay is a significant step towards net zero. We are working with Energy Bay on the provision of 50 megawatts peak (MWp) of solar energy generated on the rooftops of Stockland’s retail town centres and logistics assets to enable the growth of the solar infrastructure across Stockland’s assets by 2025. Once this initiative is completed, it will mitigate an estimated 50,000 tonnes in CO2 emissions annually. Stockland will then be 100% powered by renewable energy generated within its own portfolio. 

Working together towards our targets 

As this partnership progresses, Stockland will explore how tenants across its property portfolio can access onsite renewable energy generation and potentially drive down their own emissions. We will also regularly report on the success of our efforts, demonstrating progress against our net zero goals. 

We are also assessing opportunities for future battery storage to optimise the amount of renewable energy available at these sites. 

Other initiatives include installing energy saving features in all our retail town centres and accelerating our transition towards electric-powered centres. 

In summary 

We will continue to evolve our business side-by-side with you, our valued retail partners, into the future and encourage you to consider where you can have the most meaningful impact, whether by choosing greener transport partners, lowering energy and water consumption, or by asking your suppliers about their commitment to climate action. 

We invite you to join us on this important journey, and find out more about our refreshed ESG.