Considering our double materiality assessment, we have established environmental sustainability commitments which are outlined in the following five key policy areas: Biodiversity, Climate Change, Energy, Materials and Resource Circularity and Water.
Highlights
GPT has a proud track record of leading positive environmental change within the property industry. These improvements have focused on driving resource efficiency, reducing costs, providing greater transparency, decarbonisation and investing in nature restoration.
Climate
92%
Emissions intensity reduction since 20051
$937m
Sustainable finance total for GPT and GWOF since 2021
100%
Of GPT operational assets reviewed for climate vulnerability as at 31/12/2023
8MW
Of installed solar PV capacity on GPT-owned assets as at 31/12/2023
52%
Energy intensity reduction since 20051
25
GPT operationally controlled assets Climate Active Carbon Neutral Certified as at 31/12/2023
Nature
300,000
Trees planted in partnership with Greenfleet since 2019
110ha
Green space biodiversity assessments completed for operational assets since 2022
100%
Of GPT’s key assets reviewed for nature interfaces as at 31 December 2023
245ha
Of trees planted via GPT’s ‘Restoring Country for Climate’ partnership since 2022
34%
Closed loop recycling in 2023
57%
Water intensity reduction since 20051
See further highlights in each policy area.
1. Measured against GPT’s 2005 baseline as at 31 December 2023. Detailed data and breakdowns are available in GPT’s Sustainability Data Dashboard.
Environmental Focus
We understand that there is an imperative for urgent action to mitigate climate change and establish nature roadmaps contributing to halting and reversal of biodiversity loss, over-exploitation of natural resources and the pollution of land and water.
By late 2023, all GPT managed assets held for investment were operating carbon neutrally, with 25 of those assets Climate Active certified.
Our climate policy commitments are guided by the scientific imperative of avoiding dangerous climate change by limiting global warming to well below 2º Celsius in alignment with the Paris Agreement.
Moving beyond Carbon Neutral, GPT has created a set of targets and metrics that will help deliver positive outcomes for nature.
Strategy
As part of GPT’s ESG Strategy, our overarching environmental objective is to deliver resilient assets that optimise environmental outcomes.
Water Neutrality
GPT strives to be water neutral and resilient to drought and flood (water scarcity and extreme rainfall).
Climate Response
GPT is delivering certified carbon neutrality and building resilience to the impacts of climate change.
Resource Circularity
GPT is committed to circular outcomes by maximising the lifecycle of materials, closed-loop recovery processes and avoiding unnecessary consumption of materials.
Restoring Nature
GPT is focused on achieving a net positive impact on biodiversity.1
GPT’s policies are aligned with the principles of the Paris Agreement and Kunming-Montreal Global Biodiversity Framework.
1. GPT’s nature positive targets are detailed in the TNFD section of our Sustainability Data Dashboard. The specific net positive impact on biodiversity refers to the policy commitment to invest in biodiversity protection and restoration projects with a cumulative footprint greater than that of GPT owned and operationally controlled assets.
Read moreMetrics and targets
GPT receives assurance from PwC over its environmental performance metrics and uses a number of third party ratings and certifications, including NABERS, Greenstar and Climate Active to validate our buildings’ environmental performance to customers, investors and stakeholders.
Full details of GPT’s environmental sustainability performance metrics and targets, including building ratings and certifications, are transparently disclosed in our Sustainability Data Dashboard.
Climate Response
At GPT, we have been working for almost two decades to decarbonise our assets, reduce water use, increase recycling, and participate in nature restoration projects, all contributing to our 2030 Net Zero target. Many risks associated with climate change remain, so we are improving the resilience of our assets through climate adaptation planning.
Highlights
1st
GPT is the first Australian commercial property owner to have carbon neutral certified operational buildings and developments
Over
$340m
in accrued energy cost savings from efficiency improvements since 2005
Climate Change Policies
GPT’s climate response is covered by two major policy areas:
- Climate Change – GPT will decarbonise and be resilient to the impacts of climate change, and
- Energy – GPT will drive energy efficiency and shift to renewables while supporting a resilient transition to a low carbon future.
Climate change has been a focus of GPT for many years. Climate change impacts nature, including land, freshwater, oceans and biodiversity. In turn, changes in nature, can influence climate. Our climate-focused policies reflect this interconnection.
GPT will decarbonise and be resilient to the impacts of climate change, with specific commitments to:
- Decarbonise in a manner that contributes to the avoidance of dangerous climate change and supports the target to restrict global warming to well below 2ºC, in alignment with the Paris Agreement. We will also advocate for alignment with the Paris Agreement
- Deliver GPT’s Net Zero Plan, including delivery of carbon neutral certifications for our corporate operations (maintained since 2011), managed operating buildings (by end 2024) and upfront embodied carbon for developments (from 2023 onwards) as well as work with co-owners for certification by 2030
- Assess and consider climate-related risks and opportunities in all major investment decisions and develop climate adaptation plans
- Transparently disclose climate-related matters in alignment with the TCFD framework, and
- Support our management mandates, tenants, supply chain partners and other stakeholders to decarbonise and adapt to the impacts of climate change.
Task Force on Climate-related Financial Disclosure (TCFD)
GPT has disclosed its governance, strategy, risk management and metrics and targets with regard to climate-related risk and opportunities since 2020.
For further detail, see the 2023 Climate and Nature Disclosure Statement which has been prepared in alignment with the recommendations from the TCFD, the Taskforce on Nature‑related Financial Disclosures (TNFD), and in preparation for the adoption of the International Sustainability Standards Board (ISSB) S1 and S2 reporting recommendations.
The 2023 Climate and Nature Disclosure Statement is approved by the GPT Board and prepared in consultation with our cross functional Sustainability Reference Group, which contributes to the identification of foreseeable climate and nature-related risks and opportunities and assists in formulating and implementing our ongoing response.
Sustainability Governance Framework
Download Sustainability Governance Framework Chart PDF
View a summary of the membership of each Board Committee and the responsibilities of key sustainability-related management committees, along with their areas of focus in 2023.
Our strategies and targets recognise the interconnectedness of all aspects of environmental sustainability, and we endeavour to ensure that a positive impact on one has a positive flow-on effect on the others.
GPT has considered the direct and indirect risks and opportunities of acute and chronic physical climate change as well as the transition risks in relation to stakeholder expectations, technology, our net zero plans and government policy and regulation. We have considered scenarios of both a fast transition (RCP 2.6) and business-as-usual emissions (RCP 8.5). Our strategy to optimise our portfolio through climate adaptation planning involves taking a view of our assets across multiple future time horizons using detailed modelling to manage climate change impacts, taking into account alignment with the lifecycle of our assets.
In considering our business prospects in the context of climate change, no material climate-related risks have been identified that we believe could have a negative impact on our current business model or strategy over the short to medium term time horizon.
Additionally, climate specific strategies create opportunities as we meet and exceed stakeholder expectations with our Net Zero Plan.
Further detail is available in the ‘Uncertainty in Managing Climate Risk’ paper.
Effective risk management is fundamental to GPT’s ability to achieve our strategic and operational objectives. Climate-related risk and opportunity considerations inform key decisions across GPT, both to minimise our impact on the environment and to ensure the financial and operational resilience of our assets and core business strategy to the changing environment.
We undertake resilience planning for a transition to a low carbon economy as well as scenario modelling and climate adaptation planning for potential future physical impacts caused by continued business‑as‑usual emissions.
Further detail is available in the Managing Climate Risk at GPT.
GPT has established metrics and targets for our climate-related commitments which include both metrics and targets associated with:
GPT’s emissions and delivery of activities to reduce emissions, and Delivery of activities that respond to climate-related risks and opportunities.
Further detail is available in the TCFD tab of the Sustainability Data Dashboard
GPT’s Net Zero Plan
As part of our environmental sustainability focus of Carbon Neutral Now, Nature Positive Next, GPT has made significant progress with our Net Zero Plan, which includes both decarbonisation goals with certified carbon neutral milestones, as well as goals to improve climate resilience.
View GPT’s Net Zero Plan Chart PDF
Decarbonisation
GPT has set and is delivering on carbon neutral milestones for all material emissions where we have principal decision making authority. GPT applies consistent principles to our plans to manage environmental impacts. We always aim to measure, eliminate and reduce emissions. Residual emissions are offset in a manner the create co-benefits and we will transparently disclose our plans.
For further detail on how we deliver our Net Zero Plan for our directly controlled activities.
Read more
Scope 1 and 2 emissions – Net Zero Plan for areas of control by GPT
Scope 1 emissions stems from gas for heating, diesel for back-up generators and fire pumps and fugitive refrigerant losses.
Scope 2 emissions stem from electricity consumption. See GPT’s Energy Master Plan for details of how we eliminate and reduce these emissions.
Scope 3 emissions plan
Scope 3 emissions stem from our supply chain, customers and investments. GPT has varying levels of control and influence over these emissions and, accordingly, invests in managing and mitigating them at levels commensurate with the risk they pose to the business and impact our investments can have. Our Scope 3 emissions plan includes supply chain partners, tenants, investment and property management services.
GPT’s offsetting strategy
GPT has adopted a ‘last but not later’ approach to offsetting which is applied to residual emissions following on from our processes to measure, eliminate and reduce emissions where feasible. We target offsets which achieve benefits in addition to carbon and ensure they meet criteria of being real, additional, of long duration, avoiding double-counting and negative environmental impacts. Carbon removal is preferred and we expect transparency with independent verification of outcomes.
Climate Resilience
GPT has undertaken scenario analysis and planning for both a fast transition to a low carbon economy (RCP 2.6) and business-as-usual emissions (RCP 8.5) that will result in dangerous climate change. Both scenarios create risks and opportunities for our business that we manage. Our climate response aims to contribute to a fast transition to align with the Paris Agreement targets, while also protecting our business against the impacts of continued high international emissions.
Highlights
100%
of GPT operational assets reviewed for climate vulnerability
Climate adaptation planning has been incorporated into the design phase of all new developments
22
Climate risk reviews and adaptation plans completed of GPT’s assets, with a target to develop and deliver a risk based program of climate adaptation plans for at least 90% (by value) of GPT’s wholly owned and managed assets by 2026
Lifecycle analyses with consideration of climate change risks have been undertaken across all portfolios
Processes for managing climate risk at GPT
GPT integrates climate risk assessment and management into its operational, development and investment decision-making. Through a series of steps, ultimately GPT develops climate adaptation plans to manage both physical (acute and chronic) and transitional climate risks and opportunities at assets.
The below graphic summarises our processes.
Read more
Case studies
A number of case studies demonstrating tangible climate resilience actions are listed below. Click on
the link to view the case study addressing physical and transition risks and opportunities.
Energy
GPT will drive energy efficiency and shift to renewables while supporting a resilient transition to a low carbon future, with specific commitments to:
- Maintain an ‘efficiency first’ approach to energy management operationally controlled assets
- Use 100% renewable electricity in all operationally controlled assets
- Electrify building services and utilise low/no greenhouse warming potential refrigerants in new developments and at lifecycle upgrade
- Invest in demand-side energy flexibility and energy storage programs to support the transition to a renewable energy grid
- Transparently disclose energy performance metrics, and
- Support our management mandates, tenants, supply chain partners and other stakeholders to improve energy management and switch to renewable electricity.
Highlights
52%
Energy intensity reduction since 20051
Establishment of Loadflex programs and Smart Energy Hubs to assist with an orderly transition to a low carbon energy grid
1. Measured against GPT’s 2005 baseline as at 31 December 2023. Detailed data and breakdowns are available in GPT’s Sustainability Data Dashboard.
Energy Master Plan
Energy is inherently the largest source of emissions for an operating real estate asset. As part of our long term climate response, we have been largely successful in disaggregating our energy from emissions through efficiencies and switching to renewables. There are still some residual emissions to address and the transition to a low carbon grid requires leaders to support an orderly change.
Our Energy Master Plan has been implemented to achieve our decarbonisation aspirations as well as support an orderly transition while creating partnerships with like-minded stakeholders.
The GPT Energy Master Plan has three pillars:
- Decarbonisation,
- Resilient transition and
- Partnerships.
Pillar 1: Decarbonisation
Directly supporting the decarbonisation goals of our climate response, the Energy Master Plan maps out strategies to have efficient buildings run on renewable electricity. There are five key strategies to achieve decarbonisation associated with energy:
1. Energy efficiency
Improving energy efficiency is, and will remain, the number one tool in managing our impacts on the environment from energy consumption and the financial cost to assets (with energy being one of the Group’s highest operational expenses).
2. On-site solar
Generating renewable electricity on-site from solar photovoltaic arrays eliminates emissions and reduces exposure to volatile energy markets with project returns creating operational savings. GPT has solar PV implementation plans for managed retail and office assets, as well as a program to offer our logistics tenants solar PV options.
3. Off-site renewable electricity
GPT has long term renewable energy contracts in place out to 2030 to meet the modelled needs for GPT balance sheet and Fund assets. Our contracts also deliver significant cost reduction compared to market renewable energy certificate prices.
4. Electrification
GPT’s electrification strategy aims to eliminate the use of fossil fuels in our buildings by upgrading to electrical heating systems (run on renewable electricity) at lifecycle and development triggers. We will also work with our tenants to assist them to electrify.
5. Changing refrigerants
GPT’s policy is to shift to low and no greenhouse warming potential refrigerants at lifecycle and development opportunities to eliminate potential emissions from our HVAC systems. We will implement systems to monitor and rectify refrigerant leaks to reduce emissions where possible until their ultimate replacement.
Pillar 2: Resilient Transition
GPT aims to move beyond just delivering on our carbon neutral milestones to delivery in a manner that ensures a resilient and orderly transition to a low carbon future. We have four key strategies to decarbonising our energy in a manner that supports both our business and enables a further shift to a low carbon grid:
1. Energy cost management
We are focused on minimising exposure to energy market price volatility that often results in high energy prices. Our energy procurement strategies address the risk of large cost increases through a progressive approach to contracting that spreads the risk over a series of market hedges that are increased when there is value in the market and decreased when energy costs are high
2. Demand management and response
As the grid transitions to renewables, generation becomes more dependent on factors such as wind and sunshine and as the coal-fired generators age, they become less reliable. These factors increase the risk of supply shortfalls that drive up costs. GPT is implementing demand management and demand response programs to manage when we use electricity, reducing our exposure to demand-related electricity charges and contributing to a more stable grid.
3. On-site storage
To provide even greater ability to respond to supply constraints in the grid, GPT is installing large scale on-site battery energy storage systems. These batteries charge when there is abundant energy on the grid and discharge during supply constraint periods. GPT currently has four large batteries installed with a combine storage capacity of 7MWh.
4. Back-up generation
Back-up generators have been installed in many of GPT’s assets to provide safe operations in the case of black outs. GPT has reviewed this infrastructure and has included a number of assets with appropriate control in our demand response program to be utilised in times of severe supply constraints in the grid.
Pillar 3: Partnership
The transition to a low carbon energy economy is not something that GPT can deliver on our own. While we’ll actively contribute to an orderly transition, success requires a collaborative effort and strong partnerships are essential. GPT has a focus on three key stakeholder groups:
1. Tenants
GPT is providing options to support our tenants with their own decarbonisation pathway and address scope 3 emissions. Similar to our own approach, we start with driving efficiencies by targeting energy efficient design then look to renewable energy options through solar on logistics and renewable electricity options in our embedded networks. We also encourage data monitoring and benchmarking.
2. Suppliers
GPT works with our suppliers to drive energy efficiency and reduce emissions in their own operations and for the services they provide to us. Our improvement in energy efficiency over the past decade has been underpinned by innovating with suppliers that deliver efficiency improvements as part of the business case.
3. Industry and Government
Developing solutions and creating a market for efficient and renewable energy solutions can only work in collaboration with the broader industry or leveraging government policy settings. GPT works with counterparts in industry groups such as the PCA and GBCA to drive energy solutions. We also work closely with government programs for innovation grants and NABERS and Climate Active to ensure integrity in verifying claims.
Nature
GPT’s focus of Carbon Neutral Now, Nature Positive Next acknowledges the need to mitigate key risks to the business and broader society by halting and reversing nature loss. Nature positive refers to actions to halt and reverse nature loss measured from a baseline of 2020 through increasing the health, abundance, diversity and resilience of species, populations and ecosystems, so that nature is measurably on the path of recovery.
What is Nature?
Nature is referred to as both the non-living and living environment (climate, land, freshwater, ocean, and biodiversity, of which people are a part). Half of Australia’s GDP has a moderate to very high direct dependence on nature which makes nature loss a material financial risk.
Sectors with a very high direct dependence on nature are agriculture, forestry, fisheries, food product manufacturing, construction and waste and water services which generate $293.6 billion per year (approx. 15.9% of Australia’s GDP).
Sectors with a moderate to high direct dependency on nature, such as mining, real estate, transport and logistics, accommodation and hospitality, contribute $602.7 billion to Australia’s economy (approx. 33.1% of GDP). As one of Australia’s largest real estate groups dependent on diverse and complex supply chains from all over the world, GPT acknowledges nature loss as a risk to our business.
Task Force on Nature-related Financial Disclosure (TNFD)
The Task Force on Nature-related Financial Disclosures (TNFD) is a set of disclosure recommendations and guidance that encourage and enable business and finance to assess, report and act on their nature-related dependencies, impacts, risks and opportunities.
The TNFD was launched to address the growing recognition of the importance of nature to the economy and financial markets and is seen as a critical initiative in advancing sustainability and nature goals, complementing existing frameworks such as the TCFD.
GPT was an early adopter of the TNFD with the release of our first integrated Climate and Nature Disclosure Statement in February 2024. The Statement sets out our governance, strategy, risk management and metrics and targets with regard to nature-related risks and opportunities. This disclosure has been undertaken in alignment with the recommendations of the TNFD and the International Sustainability Standards Board S1 and S2 reporting recommendations.
The 2023 Climate and Nature Disclosure Statement has been approved by the GPT Board and was prepared in consultation with our cross functional Sustainability Reference Group, which contributes to the identification of foreseeable climate and nature-related risks and opportunities and assists in formulating and implementing our ongoing response.
Management Governance
In addition to the Board level governance detailed in GPT’s Climate and Nature Disclosure Statement, we have a number of governance processes at management level.’ For further information see the summarised table. To understand our governance structures, see our Sustainability Governance Framework.
Our strategy to optimise our portfolio assesses and manages nature-related risks in the context of our direct operations and upstream supply chains, including materials, utilities and land. Impacts to our down-stream value chains (principally our tenants) have not yet been considered in detail.
In considering our business prospects in the context of nature-related risks, two risks – stormwater regulation and biodiversity regulation – were identified with potential to impact aspects of portfolio-level strategy over the short to medium term time horizon.
Effective risk management is fundamental to GPT’s ability to achieve our strategic and operational objectives. Nature-related risk and opportunity considerations inform key decisions across GPT, both to minimise our impact on the environment and to ensure the financial and operational resilience of our assets and core business strategy to the changing environment.
GPT has considered the direct and indirect risks and opportunities of acute and chronic physical nature-related risks, as well as the transition risks, in relation to stakeholder expectations, technology, our water, biodiversity and resource circularity plans, and government policy and regulation.
Nature-related risks are mostly assessed over the short-term (up to 2030) in alignment with GPT’s nature commitments, current business strategy and average lease terms. Medium term nature-related risk assessments consider our broader business model and sustainability commitments to nature restoration. Long term nature-related risks have been excluded from the current assessment due to the inability to conduct nature-based scenario analysis with sufficient integrity.
Direct and indirect nature-related risks and their potential impacts are assessed using GPT’s Risk Consequence and Likelihood Matrix, which considers strategic, financial, operational, compliance and environmental impacts, among others. In addition, in 2023, GPT developed our first nature risk register.
GPT is developing a nature roadmap, which includes details on how GPT identifies, evaluates, assesses and responds to nature-related dependencies, impacts, risks and opportunities. GPT is applying the TNFD ‘LEAP’ framework (locate, evaluate, assess and prepare) in delivering our roadmap.
GPT has established metrics and targets for our nature-related commitments which include metrics and targets associated with pollution/pollution removal, land-use/freshwater-use change, resource use/replenishment and invasive species introduction and removal.
Further detail is available in the Sustainability Data Dashboard (Environment and TNFD).
Since engaging with the TNFD, GPT has identified and assessed 33 nature-related risks and 31 nature-related opportunities for increasing asset and supply chain resilience and value, including opportunities towards generating risk adjusted returns from nature based investments.
Water
GPT aims to be water neutral and resilient to water-related risks to our business, with specific commitments to:
- Target water neutral operations for GPT owned and operationally controlled assets by 2030
- Develop a Water Master Plan by end 2024 for GPT owned and operationally controlled assets
- Eliminate and reduce water withdrawals and stormwater impacts at operationally controlled assets by:
- Undertaking annual reviews of asset water efficiency opportunities and setting targets
for efficiency improvements - Identifying all assets with surrounds that are highly sensitive to stormwater impacts and implementing stormwater plans and monitoring by end 2024 for those assets, and
- Undertaking asset-level evaluations to identify all high individual water uses by end 2024 and implement corresponding ongoing targeted water savings programs.
- Assess water supply and discharge risks and opportunities in all major investment decisions
- Work with industry to develop robust methods to measure embodied water in developments
and supply chains
- Transparently disclose key water dependencies, impacts, risks and opportunities in alignment with
the Taskforce on Nature-related Financial Disclosure (TNFD), and
Support our management mandates, non-managed assets, supply chain partners, tenants and other stakeholders to reduce their water-related impacts, risk and dependencies.
For further information see the full policy
What is water neutrality?
We define water neutrality as being achieved when the environmental impacts on the water cycle are eliminated or reduced and compensated for in nature, with the most material of these direct impacts for
- GPT being:
- Water withdrawal from potable water supplies;
- Discharged water flows, and
- Discharged pollution from stormwater and sewage systems.
Highlights
57%
Water-intensity reduction since 20051
100%
Of operational assets mapped for stormwater discharge and rainwater capture
1,375kl
Combined storage capacity of recycled/re-use water
Piloting smart rainwater system to reduce on-site flooding and deliver environmental flows
1. Measured against GPT’s 2005 baseline as at 31 December 2023. Detailed data and breakdowns are available in GPT’s sustainability data dashboard.
Water Master Plan
The property sector accounts for a significant proportion of potable water (i.e. drinking quality water) consumption in urban areas. Given the collective size of commercial buildings, the amount of hard surfaces, the nature of business and operational activities and locations often in environmentally-sensitive areas, the sector is expected to contribute to the degradation of water systems through stormwater discharge rates and pollution.
GPT has significantly reduced potable water consumption in our assets through water efficient design, sound management practices and the use of recycled water.
There are, however, opportunities to further improve how we manage water discharges and to work more closely with key stakeholders to drive better outcomes.
GPT is developing a Water Master Plan that, by improving our understanding of how water moves to, within and from our assets, will increase our resilience to water scarcity and flooding, as well as support the transition to water neutrality.
The GPT Water Master Plan has three pillars – foundations, resilience and water neutrality – that are incorporated within site-specific ‘Water Blueprint’ reports.
Pillar 1: Foundations
In the Foundations pillar of the Water Master Plan, we are developing an intimate understanding of our water flows and infrastructure to inform management of costs and environmental impacts.
Drawings & Documentation
The Foundations pillar starts with ensuring key drawings and documentation are current and available which is critically important to provide a sufficient level of understanding of the asset’s hydraulic systems (including water-consuming plant and fixtures) and subsequently enables monitoring of water management performance, guides investigative/remedial works and facilitates future upgrade planning.
Metering & Monitoring
GPT’s water consumption data is obtained from key end-uses via a remote meter-reading system
(e.g. a BMS) or manual meter readings. The aim is for this data to be suitably high integrity, readily verifiable and able to be transferred uninterrupted to GPT’s environmental monitoring/reporting platform to enable timely and effective evaluation and (where required) remedial action.
Set-up of GPT’s Environmental Monitoring & Reporting Platform
Our environmental monitoring and reporting platform houses all of GPT’s water accounts and selected meters to enable performance monitoring, optimum NABERS Water Ratings, accurate tenant water recharges, the planning of plant upgrades/non-potable water projects and corporate reporting. Our Sustainability Team manage the set-up of the platform and work with our asset teams and BMS contractors to ensure objectives are met.
Benchmarking & Performance
GPT has established a broad range of key performance indicators and benchmarking systems to enable us to effectively understand how we are tracking against our water management goals. The Water Master Plan aims to systematise the capture of these performance metrics, enabling benchmarking.
Pillar 2: Resilience
The Resilience Pillar of the Water Master Plan aims to identify and manage risks associated with water scarcity, water supply and weather or asset infrastructure failure induced flooding events.
Asset-Level Water Supply Protection
Ensuring there is a reliable supply of water to, and within, our assets is vitally important for building operations. Also minimising our dependencies on water withdrawals and potable water can have cost, asset resilience and reputational benefits in times of water scarcity or supply incidents. As such, strategies to protect and augment supplies are being developed.
Protection Against Flooding
With increasing rainfall intensities likely to be experienced in areas in which GPT operates, it is imperative we have sound processes in place to reduce our exposure to flooding and the significant impacts it can have from an operational, financial and reputational perspective. The Water Master Plan includes options to mitigate flooding risks disrupting our business.
Protection From Harmful Water Exposure
As part of a robust risk‑based approach, GPT is very committed to ensuring the health and safety of our building occupants, visitors and the broader communities in which we operate is not compromised by any harmful conditions associated with the water systems in our assets. The Water Master Plan reviews and develops contains mitigation plans for water‑borne pathogens or high temperature water related risks.
Pillar 3: Water Neutrality
GPT aims to ensure water usage at our assets is reduced through efficiency measures, stormwater and sewers are being effectively managed and our residual impact on the water cycle is compensated for in nature via off-site projects. The Water Master Plan includes detailed strategies for assets to work towards our water neutral goal.
Water Efficiency
Water Efficiency Plans are being developed for each GPT owned/managed asset to ensure the most-efficient water consuming plant, equipment and appliances for base building and tenant operations are selected at the initial design or lifecycle upgrade stages and that they are installed, operated and maintained in a manner which enables optimum performance.
Stormwater Management
GPT’s assessment of natural capital accounts indicates that stormwater impacts from assets could be more material to the environment than water withdrawals from our utility consumption and so the management of stormwater is a very important aspect of our environmental stewardship role. The Water Master Plan sets out how we can better measure and understand these impacts and implement practical measures to eliminate and reduce them where feasible.
Sewer Management
The ingress of sewage or liquid trade waste into the utility water supply from a GPT asset could have serious adverse health and safety, environmental and other consequences. GPT adopts sound management practices to ensure these risks are effectively mitigated.
Water Offsets
Despite our success in reducing water usage through efficient design, sound management practices and recycled water usage, there will always be potable water required in our assets for occupant drinking and washing. Similarly, we can’t stop all stormwater discharges from our assets. Given this, we recognise the need to effectively account for our residual impacts on the water cycle.
GPT will examine a range of compensatory measures to offset our residual impacts on the environment from our water withdrawals and discharges. These will be considered alongside offsetting mechanisms for residual carbon and biodiversity impacts to ensure maximum environmental returns for any offsets that we use. We will pilot activities and work with industry to develop robust accounting methods to facilitate transparent, measurable offsetting.
Materials and Resource Circularity
GPT aims to procure, use and recover materials in a closed-loop, circular manner with the following specific policy commitments:
Targeting an impact neutral position for the procurement and use of materials by:
- Minimising materials consumption and waste that leads to depletion and pollution
- Where possible, retaining existing materials in use through durable and flexible design, specific recycled content and maximising the value retention of materials at end of useful life, and
- Selecting materials with low environmental damage potential such as sustainably sourced timbers and low toxicity consumables.
Targeting the recovery of materials in a closed-loop circular manner, including:
- 80% of operational waste from GPT owned and operationally controlled assets by 2030
- 80% of fit-out materials from GPT managed tenancy de-fits by 2030, and
- 90% of construction and demolition waste materials from the development of GPT owned assets by 2030.
- Transparently disclosing materials and waste metrics in alignment with circular economy principles, and
- Supporting our management mandates, tenants, supply chain partners and other stakeholders to improve materials and waste management processes.
Highlights
3.3
NABERS Waste Rating for Office portfolio1
Over
7,000
tonnes of material, including organics, paper and cardboard, and glass, were recovered in line with circular economy, closed loop principles
Over
70%
(by area) of GPT-managed waste services are provided by Good Environmental Choice Australia (GECA) certified waste collection services
1. Based on 92 per cent coverage of rateable assets that are GPT owned and controlled.
Materials and resource circularity
GPT continually supports a shift to a circular economy by minimising the waste we produce and maximising the lifecycle of materials, avoiding the overconsumption of raw materials and resources.
Our aim to use and recover materials in a closed loop manner guides our approach to materials and waste management. This includes eliminating waste where possible, choosing the right materials for use in our projects and taking steps to recover (or reprocess) everything in our control to its highest value. This approach also reduces the amount of waste sent to landfill, which is the principal source of Scope 3 emissions from our building operations.
GPT addresses its materials and waste impacts in two areas:
1. Operational waste generated by the occupants and users of our buildings that we manage is addressed by:
We manage operational waste by coordinating with operations teams, cleaning contractors, tenants, occupants and supply chain partners to implement a closed-loop approach to materials and waste management.
Collaboratively, we educate, promote and incentivise source separation, set improvement goals, examine the bin materials that leave our buildings and ensure efficient closed-loop recovery in line with our contracts.
We prioritise waste service providers with GECA Waste Collection Services Standard. certification for leading practice and strong data integrity in their reporting.
NABERS Waste Rating helps us compare our office buildings’ performance to similar properties, while the NABERS Waste Materials Recovery Score acknowledges our closed-loop efforts. GPT also transparently reports in our Sustainability Data Dashboard outcomes measured against circular economy principles, as opposed to diversion from landfill reporting.
2. Construction materials and waste from the construction and demolition activity that we manage is addressed by:
We specify materials and processes that achieve the lowest practical environmental footprint, whether that be through the specification of recycled content, improved design that uses less materials, FSC timbers to avoid net deforestation or lower carbon products. We seek Environmental Product Declarations (EDPs) to verify impacts.
We collaborate with developers and builders to enhance material reuse and recycling in new building design and construction. Waste management plans for all projects detail practices such as source separation, weight-based reporting, contractor engagement and project-specific targets, ensuring efficient waste handling and resource conservation.
We educate our workforce and contractors on waste management techniques through training, promoting the use of recycled and reused products.
Monitoring performance
Monitoring our waste and materials recovery performance is essential to achieving our closed-loop objectives. GPT uses outcomes based reporting to measure recycling quantity and quality at the A Grade, B Grade and C Grade levels.
Introduced in 2015, this data collection and reporting approach:
- Increases our understanding of materials recovery and informs our continued collaboration with contractors and suppliers to optimise our performance
- Minimises costs for our tenants and investors
- Prepares our business for emerging regulations, and
- Delivers meaningful environmental outcomes.
NABERS Waste Ratings were developed and launched in 2018 following a period of consultation in which GPT shared its data and outcomes based reporting processes with the NABERS office. GPT achieved Australia’s first NABERS Waste ratings and continues to utilise the ratings as a part of its resource circularity assessment processes.
GPT reports both the outcomes based recycling percentages and the NABERS Waste ratings.
What is closed-loop recovery?
Not all recycling is the same. When recycling is collected from our buildings, our waste contractors take it to a facility that recovers and reprocesses that material into something that can be used again.
For example, a glass bottle, if well separated and sent to the right facility, can be recycled back into another glass bottle, keeping it in the same or similar production cycle. This maximises value retention from the initial investment to make the glass bottle and avoids using additional raw materials and energy to produce a new one. The most common operational closed-loop recycling outcomes come from fibre (paper and cardboard), organic composting and recovery of metals.
This is known as closed-loop recovery or A Grade recycling, which achieves circular economy outcomes. GPT’s resource circularity objective aims to maximise A-grade recovery outcomes, which eliminates pollution from waste materials and the depletion of further raw materials.
There are other ways for materials to avoid landfill but not achieve a closed-loop circular economy outcome, including:
- Downcycling (B-Grade recycling) the materials to a lower materials value product or one that can be recycled in a new production cycle, but can’t be returned to the original production cycle (e.g. food quality plastics being manufactured into mixed source plastic materials). GPT reports this as B-Grade recycling which doesn’t achieve closed-loop circular outcomes. Whilst B-Grade recycling can eliminate pollution from waste materials, it does not eliminate the need to deplete further raw materials for the original production cycle, and
- Linear (C-Grade) recycling describes processes where material is diverted from landfill and recovered for a one off end use. As a result of not being able to be returned to an original production cycle, the end uses of these materials is often pollutive (e.g. waste to energy) and results in depletion to maintain the original production cycles.
Biodiversity
The property sector accounts for a considerable proportion of direct and indirect biodiversity impacts, including displacement and degradation of biodiversity through habitat clearing, water consumption, pesticide use, stormwater pollution and atmospheric emissions, and concrete, steel, and wood‑based product use and disposal.
In 2023, GPT advanced our capacity to identify, respond, monitor and report on biodiversity dependencies, impacts, risks and opportunities, through establishment and enhancement of natural capital accounts, natural capital dependency and impact registers, nature risk and opportunity registers, and delivery of GPT’s first TNFD aligned Climate and Nature Disclosure Statement.
For GPT’s key natural capital accounts, see our Sustainability Data Dashboard which includes a portfolio-level account of electricity, water, fuels, materials, recycling and emissions since 2005, and GPT’s Nature Interface web map, which provides a user friendly application for viewing GPT’s key biodiversity and stormwater interface since 2023. We intend to iterate and improve these processes in the coming years.
GPT aims to have a net positive impact on biodiversity and be resilient to nature-related risks with specific policy commitments of:
- GPT will invest in biodiversity protection and restoration projects with a cumulative footprint greater than that of GPT owned and operationally controlled assets by 2030, in alignment with the Kunming-Montreal Global Biodiversity Framework (GBF) Target 3
- No net deforestation from GPT’s owned and controlled assets and developments and its suppliers with respect to products used directly by GPT
- Establish natural capital accounts, including nature dependency and risk registers by 2024 and maintain thereafter
- For GPT owned assets and developments, avoid developments and sourcing of materials that impact areas of high conservation significance, including areas of World Heritage, national and state legislated ecological communities and species, and areas with International Union for Conservation of Nature (IUCN) category I-IV protected status by 2026.
- Where biodiversity loss is unavoidable for such areas, GPT will implement compensatory strategies for biodiversity loss beyond regulatory offset requirements such as on-site seed collection and restoration projects, species translocations and voluntary biodiversity offsets
- Conduct asset-level biodiversity assessments and develop biodiversity management plans by end 2026, with a goal of increasing biodiversity condition above 2020 levels by 2030
- Transparently disclose key biodiversity-related matters in alignment with TNFD, and
- Raise awareness of property sector specific biodiversity risks and opportunities through engagement with mandates, tenants, supply chain partners and other stakeholders.
For further information see the full policy.
Highlights
300,000
Trees planted in partnership with Greenfleet since 2019
100%
Of GPT’s key assets reviewed for nature interfaces
110ha
Of green space biodiversity assessments completed for operational assets
Identification of all GPT assets located within areas of biodiversity significance (i.e., ecological communities of national significance likely to occur within area)
What is Biodiversity?
Biodiversity refers to the variety of life on earth at all levels, including different plants, animals, micro-organisms, their genes, and the terrestrial, marine and freshwater ecosystems of which they are a part.
Biodiversity and the built environment
We acknowledge that, at its core, the built environment displaces biodiversity. The homes that we live in, the offices and logistics buildings that we work in, and the centres we shop in, will displace natural environments and draw upon natural resources.
The property sector in Australia significantly influences the condition and extent of ecosystems, including biodiversity, in which we and our suppliers operate. The development and operation of property is heavily dependent on biodiversity.
Overall, effectively managing biodiversity is not only essential for the ecological and socio-economic health and resilience of communities, but also offers tangible benefits for GPT, including enhancing the long term sustainability of our business, risk mitigation, regulatory compliance, and alignment with stakeholder expectations.
By integrating biodiversity considerations into GPT’s governance and strategies, GPT is advancing its contribution to a more sustainable and resilient built environment, while maximising long-term value creation. Managing biodiversity is beneficial to GPT in a number of ways.
Green spaces and their constituent biodiversity are essential for maintaining health ecosystems (see page 28), which provide a wide range of valuable ecosystem services such as pollination, water purification, soil fertility, and climate regulation. Key ecosystem services specific to the environments in which GPT operates include:
Green spaces absorb pollutants such as nitrogen dioxide and particulate matter, thereby improving air quality and reducing the risk of respiratory disease
Green spaces help mitigate the urban heat island effect by providing shade and evaporative cooling, which lowers temperatures in urban environments, especially during hot summer months
Green spaces absorb rainwater and reduce runoff, which helps prevent flooding and erosion. Additionally, native trees can improve groundwater recharge by
allowing water to infiltrate into the soil
Green spaces act as natural sound barriers, absorbing and deflecting noise from roads, railways, and other sources
Many animals, including bees, butterflies, birds, and bats, are essential pollinators
for plants, facilitating the reproduction of flowering plants by transferring pollen between flowers, leading to the production of fruits, seeds, and nuts. Pollination is crucial for the health of ecosystems and urban food systems
Predatory animals such as birds, bats, and insectivorous mammals help control pest populations by feeding on insects, rodents, and other pests. This natural pest control reduces the need for chemical pesticides and minimises damage to urban infrastructure, benefiting asset owners and their tenants
Green spaces capture and store carbon dioxide through the process of photosynthesis, helping to mitigate climate change by reducing the concentration of greenhouse gases in the atmosphere
Green spaces enhance the visual appeal of cities, providing spaces for recreation, relaxation, social interaction, aesthetic pleasure and spiritual connection. Access to biodiversity has been linked to reduced stress, improved mental health, and increased overall wellbeing
Green spaces contribute to the economic value of cities by increasing property values, attracting tenants, customers, and residents, and providing opportunities for outdoor recreation, which in turn supports local businesses and stimulates economic growth
Spending time in green spaces is associated with various health benefits, including reduced risk of chronic diseases such as obesity, diabetes, and cardiovascular disorders, as well as improved immune function and faster recovery
from illness, and
Green spaces serve as gathering places for community events, volunteering activities, environmental education programs, environmental stewardship and cultural recognition, fostering a sense of belonging and social cohesion.
Ecosystem Services
GPT’s actions to help restore biodiversity support these ecosystem services, ensuring the long-term sustainability and resilience of GPT assets and supply chains.
GPT’s process to manage biodiversity risk and opportunities
Managing biodiversity risks and opportunities requires a comprehensive approach that integrates biodiversity considerations into all aspects of GPT’s operations and decision-making processes. To identify and manage biodiversity-related risks and opportunities, GPT undertakes key actions under three pillars – asset management, governance and engagement – as set out below.
Asset management
GPT conducts biodiversity assessments, develops management plans, promotes sustainable sourcing, and invests in restoration and conservation initiatives to mitigate risks and enhance biodiversity across its assets.
1. Biodiversity assessments
GPT conducts biodiversity assessments to understand the potential biodiversity risks and opportunities associated with our business activities. Assessments include green space biodiversity values assessments at operational assets, and flora and fauna assessments to identify significant ecological communities and species within areas proposed for development.
2. Biodiversity management plans
We develop biodiversity management plans that outline specific measures to mitigate biodiversity risks and enhance biodiversity restoration and conservation. These plans include clear objectives, targets, and timelines for our biodiversity management actions, and allocate resources accordingly.
3. Sustainable sourcing and supply chains
GPT aims to align our sourcing and supply chain practices with our biodiversity conservation objectives. We promote sustainable sourcing practices, including certification schemes for responsibly sourced products and materials (e.g. FSC certification for timber related products).
4. Restoration and conservation
GPT goes beyond meeting our legal requirements and obligations by actively investing in biodiversity restoration and conservation initiatives, such as habitat restoration, reforestation, and protected area management. This commitment creates long term value, like our partnership with Greenfleet, restoring 1,100ha of native Australian forest in the Noosa hinterland, which contributes to our carbon neutral goals.
Governance
GPT integrates biodiversity management within policies, procedures, and guidelines aimed at mitigating impacts, restoring biodiversity, and building ecosystem resilience, in alignment with internationally recognised standards and frameworks.
5. Environmental Management System
GPT has an Environmental Management System that includes specific provisions for managing biodiversity, including biodiversity policies, procedures, and guidelines for mitigating biodiversity impacts, restoring biodiversity, and enhancing ecosystem resilience.
6. Standards and frameworks
We are aligning to internationally recognised best practices and standards for biodiversity conservation and sustainable land management (e.g. Convention on Biological Diversity’s guidelines), and nature-related financial reporting (e.g. TNFD).
Engagement
GPT builds capacity for biodiversity management, fosters innovation and collaboration for biodiversity solutions, and engages key stakeholders to incorporate their perspectives into decision‑making processes.
7. Capacity and awareness
GPT has commenced training and capacity-building initiatives for the Board, employees, suppliers, and other stakeholders to raise awareness of biodiversity issues and build capacity for effective biodiversity management.
8. Innovate and collaborate
We encourage innovation and collaboration to develop and implement biodiversity-friendly technologies, practices, and solutions. We foster partnerships with other businesses, research institutions, and conservation organisations to leverage expertise and resources.
9. Engage stakeholders
Engage with relevant stakeholders, including local and indigenous peoples, government agencies, NGOs, and scientific experts, to understand their perspectives on biodiversity issues and incorporate their input into decision-making processes.
