Not for release or distribution in the US
AMP Capital launched an ambitious 2030 ESG strategy for its real estate business at an event held with clients, industry partners and customers yesterday. The strategy aims to address key sustainability challenges including climate change, waste, biodiversity, social impact, accessibility and supply chain sustainability.
According to Head of Sustainability, Real Estate, Chris Nunn: “Sustainability has become a dominant global economic risk and business megatrend that will transform industries and society. The real estate sector holds many of the solutions and is in a position to act now. AMP Capital is committed to working with our industry peers, clients and customers to improve every day for future generations.”
We want to shape a better future and this strategy marks a step change in our thinking around how we’re going to do that. This comprehensive sustainability framework addresses material environmental, social and governance areas, with a focus on six main initiatives that the business believes will have the most impact by 2030. I’m most excited about creating a conservation reserve of more than four million square metres, which we believe is a first for an Australian real estate company.”
The strategic aims that AMP Capital’s real estate business will work towards for 2030 include:
- to be zero net carbon for scope one and two emissions
- to create a biodiversity conservation reserve that is equivalent in area to its entire managed real estate portfolio – more than four million square metres.
- to improve accessibility for the one in five people who have a disability across its managed assets;
- and implement improved supply chain governance and work with partners to identify and address ESG-related supply chain risks such as modern slavery and materials safety.
To coincide with the launch of the strategy, AMP Capital has also released a research paper, ‘Why sustainability matters in Real Estate’. The paper explores the material environmental, social and governance (ESG) issues being faced globally, the key drivers for action, and the important role that the real estate industry, asset owners, customers, partners and the community play in driving change that delivers positive outcomes, while continuing to deliver strong investment performance.
This was the topic of conversation at the launch event, with Emma Herd from the Investor Group on Climate Change, Chris Wade from the Clean Energy Finance Corporation, and Lisa Wade from NAB who all agreed that no matter what our role in real estate, we can all play our part in helping to tackle these ESG issues.
“We look forward to working with our industry peers, our clients, our tenant customers, retailers and the community to address the many ESG risks and opportunities ahead of us, while ensuring we continue to deliver strong, sustainable assets that generate both environmental and financial benefits a long way into the future”, said Mr Nunn.
AMP Capital is one of the largest direct real estate fund managers in the Asia-Pacific1 with more than $28billion2 in assets under management on behalf of global investors. AMP Capital’s extensive global network and integrated management model allows its 600-strong team of real estate professionals to realise true value for clients through the investment management, property management and development of a portfolio of some of the most iconic shopping centres, office buildings and industrial estates across Australia and New Zealand.
1. Source: ANREV/INREV/NCREIF Fund Manager Survey 2018
2. As at 30 June 2019. This includes AMP Capital’s 24.9 percent share of PCCP’s NAV, equivalent to A$1.6b.
While every care has been taken in the preparation of this article, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) and AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This article has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this article, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This article is solely for the use of the party to whom it is provided.