Contact Us
Which best describes you?:








 Security code
×

Thank you
×

Climate Change & Energy

Climate Change & Energy

GPT’s Climate Change and Energy Policy commits the group to carbon neutrality in areas within control of the business while also encouraging stakeholders within the group’s influence to reduce greenhouse gas emissions and energy use.

Since 2005 the Group has achieved:

  • 39% reduction in energy intensity and;
  • 57% reduction in emissions intensity.

In 2015 this meant:

  • $23 million of electricity and $1 million of gas bill costs avoided; and
  • 182,864 tCO2e greenhouse gas emissions avoided *.

*compared to 2005 baseline

The Environment Data Pack provides detailed analysis by portfolio and property

Background and Policy

GPT recognises that greenhouse gas (GHG) emissions globally are at unsustainable levels and society needs to respond urgently to the issue of climate change. The response will require both carbon reduction efforts to minimise the consequences of climate change, and adaptation to address climate change impacts that cannot be avoided.

The greenhouse emission reduction program has been recognised as an important component of GPT’s Shared Value program with emission reductions proving valuable for the business while meeting a number of societal needs in the transition to a low carbon economy.

GPT participates indirectly in climate change public policy development through membership and participation in a range of industry organisations including the Property Council of Australia, Green Building Council of Australia and the City of Sydney, Better Building Partnership. The full Climate Change and Energy Policy is publicly available and contains the policy background and commitments.

GPT’s carbon reduction strategy is in 4 parts;

Energy efficiency Energy intensity down 5% year on year, 39% since 2005 avoiding $24million in energy bills in 2015 alone
Developing onsite low carbon and renewable energy systems 1.879 MW of solar PV systems installed 7 MW of cogeneration/trigeneration systems installed
Purchasing elecrticity from sustainable, zero carbon, renewable sources Screen-Shot-2016-03-11-at-6-30-50-am.png
Purchasing offsets as a method of last resort 3,415 tonnes of greenhouse gas emission offset credits retired in 2014 for GPT management office carbon neutral program
Result Greenhouse emissions intensity down 17% year on year and 57% on 2005 basline

Targets

GPT's specific climate change and energy targets, and performance against targets, are summarised below:

Target Performance and progress
2015 target to reduce carbon emissions to 65 kg CO2e/sqm Achieved 59 kg CO2e/sqm
2016 target for base building carbon emissions 56 kg CO2/sqm (5% decrease)
2015 target to reduce energy consumption to 359 MJ/sqm Achieved 349 MJ/sqm
2016 target for operational base building energy intensity 338 MJ/sqm (3% decrease)
Employees performing their roles and tenancies occupied by GPT Employees to be Carbon Neutral GPT’s Tenancies and work environments have been certified Carbon Neutral. For details refer to GPT Carbon Footprint
Weighted average 4.5 star NABERS Energy across office portfolio Target exceeded in 2015, 5.0 stars with Green Power, 4.7 stars without, see NABERS Ratings for more information
The ongoing target will be to continue to improve environmental performance above the average rate of the Global Real Estate Sustainability Benchmark - Green Stars in all relevant environmental categories while continuing to strive to meet the aspirational targets as fast as commercially viable.

Initiatives

Energy is a valuable and costly resource that can also have a strong environmental impact so through:

  • Better energy information and diagnostic systems,
  • Smarter control strategies and
  • A rolling program of lighting and air conditioning system upgrades

GPT has improved energy efficiency resulting in GPT and tenants, avoiding $24 million in energy bills in 2015 alone.

Screen-Shot-2016-03-11-at-6-41-39-am.png

Energy intensity is calculated by taking the annual base building energy consumption as measured at the utility meter for electricity, gas and other fuels if applicable, and dividing by the total lettable area of the building..

In addition to energy efficiency, GPT has lowered carbon emissions through fuel switching in some cases replacing grid coal power with onsite gas powered electricity generation and in others through generation of onsite, renewable, solar electricity.

On-site renewable energy generation

Over the past four years, GPT has increased on-site renewable energy generation capacity from zero to 1.879 kilowatts. This includes the addition of Australia’s largest shopping centre rooftop solar project at Casuarina Square in Darwin in late 2015.

Property Peak solar capacity (kW)
Casuarina Shopping Centre 1,250 kW
Rouse Hill Shopping Centre 350 kW
5 Murray Rose 130 kW
3 Murray Rose 99 kW
Homemaker Maribyrnong 50 kW
Total 1,879 kW

Cogeneration and trigeneration systems are able to use gas as a fuel source generating electricity simultaneously with heat maximising useful energy extraction. This form of energy generation produces less greenhouse emissions per kW of electricity than regular grid electricity.

Property Gas generator electrical capacity (approx) kW
Charlestown Square Shopping Centre 2,800
Liberty Place, 161 Castlereagh St 1,200
One One One Eagle St 1,200
530 Collins St 800
Workplace6 800
150 Collins St 300
Total 7,100

GreenPower procurement

Emissions from grid supplied electricity have been reduced through the purchase of Government accredited GreenPower. In 2015 over 30% of base building electricity or 44.5 GWh of electricity was supplied as certified GreenPower. (excludes some joint owned and externally managed assets that are not supplied with GreenPower)

Screen-Shot-2016-03-11-at-6-30-50-am.png

Scope 2 emissions and the Greenhouse Gas Protocol

An amendment to the Greenhouse Gas Protocol published in January 2015 recognises the choice companies can make in the source of electricity and allows for accurate reporting of emissions avoided related to the purchase of GreenPower. GPT continues to apply the National Greenhouse Accounts Factors for standard grid electricity with a zero carbon factor for purchased certified GreenPower.

Screen-Shot-2016-03-11-at-6-42-26-am.png

Emissions include scope 1 and scope 2 emissions in accordance with the Greenhouse Gas Protocol.

GPT’s Processes to Achieve Reductions

Savings have been achieved through a range of initiatives informed by diligent metering and monitoring of energy use that enables us to make informed decisions on the most effective and efficient means of reducing energy and greenhouse gas emissions. Initiatives include:

Area Key initiatives
Energy efficiency Use of energy efficient appliances in new developments. Efficiency upgrades at existing sites where viable including lighting replacements, installation of separate switches, installation of PE cells, and use of sensors. Replacement with more efficient appliances as part of normal maintenance and capital programs, including making use of variable speed drives for escalators and higher efficiency chillers. Changing the start/stop time on mechanical plant (especially airconditioning plant).
Passive energy Use of passive forms of energy and natural ventilation where possible. For example, at Rouse Hill Town Centre the Building Management System adjusts shades to optimally leverage the sun for warmth and lighting.
Metering Sub metering systems to provide detailed energy information to site teams.
Targets and monitoring Continuous commissioning to ensure systems maintain efficiency. Site teams committed to annual and longer term targets, and provided with training to micro-monitor performance and calibrate systems for optimal efficiency. Operations management receiving frequent performance reports at asset and portfolio levels. Management, monitoring and incentives.
On-site energy production Implementation of on-site energy production. For example, a gas trigeneration facility is in use at One One One Eagle St to provide base building electricity requirements with waste heat creating cooling through an absorption chiller. At Charlestown Square, a cogeneration facility is being used to provide electricity for base building services as well to tenants.
Renewable energy Purchase of certified GreenPower. Implementation of a solar thermal facility at Charlestown Square and solar photovoltaic systems.
Tenant support Training for Investment Managers in environmental outcomes and on-going communication with tenants. Green leases, fitout guides and minimum standards to reduce tenant GHG emissions. Site tours to renewable energy plants to aid tenant education and awareness on how 'green' electricity is produced.
Refer to the case studies section for more information on some specific examples of how GPT has achieved energy and emissions reductions.

Exploring Carbon Neutrality

GPT has achieved its commitment to provide carbon neutral workplaces for all GPT staff by improving the efficiency of its workspaces, utilising renewable green power and purchasing offsets for the remaining emissions.

To achieve carbon neutrality GPT has:

  • Improved energy efficiency
  • Reduced paper consumption
  • Introduced video conferencing between major centres
  • Purchased zero or low carbon products, especially Green Power
  • Used certified offsets as a last resort to compensate for unavoidable emissions

A summary table of operational emissions associated with GPT employees performing their roles and operating tenancies occupied by GPT employees has been most recently prepared for 2014. This includes the head office, MLC Centre tenancy and management offices at GPT managed properties.

NCOS Logo

GPT’s Greenhouse Inventory was compiled by Pangolin Associates and certified against the National Carbon Offset Standard (NCOS).

NABERS ratings

GPT’s office portfolio weighted average NABERS Energy rating for office is 4.7 while the NABERS Greenhouse rating, including GreenPower is 5.0

Further information is available on the GPT NABERS page.

Climate Adaptation

GPT has commissioned specialist advice to assess the exposure of the asset locations to projected climate changes. Some assets, such as Casuarina Square and Sunshine Plaza, are located in areas that already face severe climatic conditions, however the majority of the assets are sited in areas that are not forecast to suffer the most severe climatic changes in the foreseeable future.

GPT recognises climate change is a real threat and as such the consequences are addressed as part of a normal risk management framework. GPT will continue to monitor revisions to projected climate change that are based on sound scientific criteria that is relevant to Australian conditions and update asset and business risks accordingly. Membership and participation in the Property Council of Australia and through them the Australian Sustainable Built Environment Council provides access to the latest adaptation information.

Operationally, the business continues to update and adjust contingency, maintenance and asset replacement plans to take account of potential climate change impacts. Note that while climate change may increase the intensity and frequency of climatic events such as flooding, extreme heat days, hail and wind storms, these and their secondary impacts already occur and are planned for.

Challenges and Outlook

Mitigating and adapting to climate change is a complex global issue and it is recognised that achieving sustainable energy supplies will require widespread support and the cooperation of many stakeholders. GPT is taking an active role in meeting the many challenges, such as those outlined below:

Challenge GPT’s approach
Skills and expertise To aid development of new skills and expertise internally and externally GPT is undertaking the following actions.
  • Making sustainability data accessible through a company-wide computer system to provide reporting that meets the needs of all users, from site level to the Board.
  • Participating in precinct programs including as a foundation member of both the City of Melbourne1200 Buildings project and the City of Sydney Better Buildings Partnership.
  • Contributing to the Energy Efficiency Council training and accreditation project.
  • Presenting at conferences and training courses such as for the Facility Managers Association and Australian Institute of Refrigeration, Airconditioning and Heating.
Industry standards To help improve standards for the design, delivery and operation of high efficiency buildings in the Office portfolio AIRAH DA19 is included as the maintenance guideline for a portfolio wide mechanical services contract;
On-site energy generation To help address barriers to implementing and connecting on-site energy generation to the electricity network, GPT is:
  • Working with the Property Council of Australia to encourage greater recognition of demand side management opportunities; and
  • using 111 Eagle Street and Charlestown Square as case study projects to demonstrate the benefits of cogeneration and how it can be implemented, including agreement with the local network provider.
Value and rating of energy efficiency GPT contributed to the Green Building Council of Australia development of the Green Star Performance tool for existing buildings to improve understanding of energy efficiency in existing buildings.
Tenant support To improve tenant awareness and understanding of energy efficiency and renewable energy generation, The Group is:
 
  • Holding Building Management Committee meetings to provide information to tenants on building performance and how the tenant space interacts;
  • using the GPT head office workspace to showcase energy efficient technologies along with best practice material and resource efficiency for tenants; and
  • conducting tours to renewable energy sites for tenants and other interested people
Carbon Pricing While Australia has moved away from a carbon pricing model it remains a strategy that could be reapplied in the future. GPT mitigates the risk of a carbon price through the energy efficiency program while any increased costs of electricity and gas creates a greater incentive for energy efficiency and renewable energy projects

Quick Links
Environment Data Pack

For detailed statistics around GPT's Sustainability Reporting Download the Environment Data Pack.

Download Now