Australia’s built environment has been declared the most sustainable in the world, following the release of the 2022 GRESB Real Estate Benchmark.

The GRESB assesses the environmental, social and governance (ESG) performance of real assets in counties across the world.

Each year, the GRESB Real Estate Assessment generates two benchmarks – the GRESB Standing Investments Benchmark, which considers ESG management and performance factors and is aimed at portfolios with operating buildings, and the GRESB Development Benchmark, which considers ESG management and property development factors and is for portfolios with new construction and major renovation projects.

Oceania holds the highest regional average score of 82 in the Standing Investment Benchmark, and 88 in the Development Benchmark.

“Eliminating emissions from the built environment will require a lot of heavy lifting from our entire industry. In Australia we’re seeing a lot of big and small players in our industry take great strides toward the goal of a healthier, net zero future,” says Green Building Council of Australia CEO, Davina Rooney.

“We applaud all of the companies who have been recognised in the GRESB leaderboards, as well as the many other companies that are showing impressive leadership in this area.”

Participation in the assessment grows significantly year-on-year due to strong investor interest in ESG data and sustainability. 2022 saw the largest ever growth in real estate participation, up 20 percent from 2021.

Property Council of Australia Chief Executive Ken Morrison says there is growing demand from the investment community for disclosure of sustainability credentials from property organisations.

“GRESB continues to deliver these key insights and encourages investment flows to more sustainable projects and organisations,” he says.

“Australian companies are once again leading overall scores and providing a blueprint for other jurisdictions to follow in the transition to a resilient and decarbonised economy. Australia cannot achieve its net zero goals without the built environment.

“Australian leadership is a testament to the innovation, collaboration and sustainability ambition of our industry and merits the global recognition on display in this year’s results.”

Head of Asia Pacific at GRESB, Ruben Langbroek, says the organisation is delighted to see Oceania at the top of the list for sustainable property.

“Decarbonizing the built environment is one of the greatest challenges the global real assets industry faces today. We are proud to see the real estate sector in Oceania remain steadfast in its commitment to ESG transparency and performance and continue to lead the way in creating a more sustainable future for all with every passing year.”

Image: Lendlease’s new Blue & William commercial building in North Sydney.

GRESB's global leaders for Australia

2022 GRESB Real Estate Standing Investments Sector Leaders

Overall Global Sector Leaders

Office – Australian Prime Property Fund Commercial, Lendlease; ISPT 50 Lonsdale Street Property Trust, ISPT Pty Ltd; Lendlease One International Towers Sydney Trust (LLOITST), Lendlease

Diversified, Office/Retail – CBUS Property, CBUS Property; ISPT Core Fund, ISPT Pty Ltd.

Residential – Lendlease Retirement Living Trust, Lendlease

*Overall Global Sector Leaders are also recognised as being the “Global Sector Leaders” by GRESB for achieving the highest score for the combination of nature of ownership and sector

Overall Regional Sector Leaders

Office - Australian Prime Property Fund Commercial, Lendlease; ISPT 50 Lonsdale Street Property Trust, ISPT Pty Ltd; Lendlease One International Towers Sydney Trust (LLOITST), Lendlease

Retail - Vicinity Centres Direct Portfolio, Vicinity Centres; AMP Capital Retail Trust, AMP Capital Funds Management Limited; Charter Hall Prime Retail Fund (CPRF), Charter Hall; Charter Hall Retail Partnership 1 (RP1), Charter Hall; Vicinity Centres Direct Portfolio, Vicinity Centres

Industrial - Aliro Trusco 1 Pty Ltd as trustee for the Aliro Group Industrial Value Fund, Aliro Management Pty Ltd; Frasers Property Industrial Australia Pty Limited, Frasers Property Industrial Australia Pty Limited

Diversified – Office/Retail - Cbus Property, Cbus Property; ISPT Core Fund, ISPT Pty Ltd

Diversified – Office/Industrial - Goodman Australia Partnership (GAP), Goodman Group; Growthpoint Properties Australia, Growthpoint

Overall Non-listed Regional Sector Leaders

Office - Australian Prime Property Fund Commercial, Lendlease; ISPT 50 Lonsdale Street Property Trust, ISPT Pty Ltd; Lendlease One International Towers Sydney Trust (LLOITST), Lendlease

Retail - AMP Capital Retail Trust, AMP Capital Funds Management Limited; Charter Hall Prime Retail Fund (CPRF), Charter Hall; Charter Hall Retail Partnership 1 (RP1), Charter Hall

Industrial - Aliro Trusco 1 Pty Ltd as trustee for the Aliro Group Industrial Value Fund, Aliro Management Pty Ltd; Frasers Property Industrial Australia Pty Limited, Frasers Property Industrial Australia Pty Limited

Diversified – Office/Retail - Cbus Property, Cbus Property; ISPT Core Fund, ISPT Pty Ltd

2022 GRESB Real Estate Development Sector Leaders

Overall Global Sector Leaders

Office - Charter Hall Prime Office Fund (CPOF), Charter Hall

Healthcare - Dexus Healthcare Property Fund, Dexus

Retail - Scentre Group, Scentre Group

Diversified - ISPT Core Fund, ISPT Pty Ltd

Overall Regional Sector Leaders

Industrial – Aliro Trusco 1 Pty Ltd as trustee for the Aliro Group Industrial Value Fund, Aliro Management Pty Ltd

Office – Charter Hall Prime Office Fund (CPOF), Charter Hall

Residential – Lendlease Retirement Living Trust, Lendlease

Overall Non-listed Regional Sector Leaders

Industrial - Aliro Trusco 1 Pty Ltd as trustee for the Aliro Group Industrial Value Fund, Aliro Management Pty Ltd

Residential - Lendlease Retirement Living Trust, Lendlease

Jarrod Reedie

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