warning
05 May 2021 – Please be aware of scammers falsely representing AMP Capital. AMP Capital is aware of an ongoing scam operation targeting customers and the broader community, offering inflated interest returns available through fictitious investment vehicles titled the Capital Protected Fixed Income Government Fund and the Woolworths Group Fixed Rate Bonds. Through the use of phishing emails, malicious operators are sending falsified e-brochures to people in an effort to entice them to invest in a false product that features AMP Capital’s branding. Please be aware this is a not a legitimate product from AMP Capital.

AMP Capital does not approach potential customers via electronic direct mail (EDM) nor does the company solicit personal or financial information via email. 
If you are concerned that you may have been targeted by scammers, please contact us on 1800 658 404 from 8.30am to 5.30pm Monday to Friday (Sydney time).
More information on scams can also be found on the ACCC’s website Scamwatch.

Real Estate

Sustainable investing in real estate

By Chris Nunn
BA, LLB, MSc Head of Platform Operations and ESG Investing Sydney, Australia

Key points

check_circle

2020 reinforced the increasing importance of ESG to our clients.

check_circle

We made significant progress implementing our ambitious 2030 Sustainability Strategy.

check_circle

Transparent disclosure is critical as the industry increases its sophistication toward and scrutiny of ESG themes.

Sustainable investing is growing for good reason. Looking after the planet and its inhabitants is fundamental to long-term prosperity, and investments that support those goals are unsurprisingly popular.

Assets in Australian sustainable funds topped $25 billion last year with $4 billion of net flows notwithstanding the pandemic. Retail assets invested grew 35 per cent compared to a year earlier.1

For a variety of reasons, investors are increasingly putting their money into companies and funds that think about environmental, social and governance (ESG) issues: whether they are screening for non-financial risk, using ESG as a proxy for quality assurance, re-weighting toward future growth areas, or practicing impact investing to achieve particular ESG outcomes. Being able to demonstrate ESG credentials is important for many investment strategies.

Reflecting not only the COVID-19 outbreak but also the fierce drought and bushfires earlier in 2020, AMP Capital’s commitment to sustainability in real estate has only strengthened. We responded to last year’s natural disasters directly by raising money for charities and bushfire relief, and adjusted our operating procedures to keep our customers and staff safe during the pandemic. Recognising the toll these challenges place on people, we also increased access for staff and families to mental health support, and researched ways we can continue to improve wellbeing.

Despite the difficulties 2020 brought, it was a year we achieved significant sustainability milestones.

We signed our first 100 per cent renewable electricity contract. Along with buying offsets to compensate for residual emissions (from gas, diesel and refrigerants), our renewable electricity contract means we achieved zero net carbon for Scope 1 and Scope 2 emissions for the internally managed assets within our leading office fund from 1 Jan 2021.2

We achieved a 6-star energy rating at Royal Randwick Shopping Centre in Sydney, and a 6-star energy rating for Bond One, an office building in Sydney’s CBD, and continue to install electric vehicle chargers in our car parks.

At the same time, we improved our NABERS water ratings at 24 assets during 2020. Since 2017, we experienced a 32 per cent reduction in water intensity. In the same period, we’ve seen a five per cent improvement in recycling rates and a 22 per cent reduction in waste generated per square metre.

We introduced our first Charopy smart bins at a shopping centre to improve recycling rates (see box for more detail). We also installed technology that automatically analyses buildings’ ventilation, cooling and heating systems, and makes control changes to optimise the balance between energy efficiency and occupational comfort for tenants.

We installed controls on our waste compactors that improve the way we manage and track waste and recycling, and retailers were encouraged to use compostable packaging as part of a retail food court pilot supported by the NSW Government Environment Protection Authority.

During 2020 we also demonstrated compliance against ISO14001, the world’s best practice standard for Environmental Management Systems, and researched ways to maximise the resilience of our clients’ real estate assets against the impacts of climate change.

We continue to have a strong focus on inclusion and diversity: we track the number of women in senior leadership positions (38%) and across all staff (60%); we opened the first ‘Changing Places’ 24/7 accessible bathroom facility in the Melbourne CBD at Collins Place; we published a Modern Slavery Act Statement; collaborated with the Property Council of Australia on an initiative which surveyed over 900 suppliers to screen for human rights and labour issues; we launched our Innovate Reconciliation Action Plan; and held cultural awareness training sessions that educated over 170 staff about Aboriginal and Torres Strait Islander heritage and installed plaques to acknowledge Aboriginal custodians of the land.

Our 2030 strategy is based on three pillars.

  1. Environment: We operate within environmental limits so that our real estate investments are sustainable in the long-term. We focus on energy and climate, waste minimisation, water efficiency, biodiversity and habitat.
  2. Social: We want everyone to enjoy happy, healthy lives in vibrant, inclusive communities and workplaces. That involves focusing on health and wellbeing, culture and community, equity and diversity, and transport and mobility.
  3. Governance: We respect the rules, behave ethically, transparently disclose our performance and continually strive for best practices. Critical to good governance are policies and procedures, engaging with our supply chain partners, regular performance monitoring and reporting and participating in sustainability ratings and third-party benchmarks.

Since launching AMP Capital’s 2030 Real Estate Sustainability Strategy in 2019, we have delivered on a number of our targets and remain on track to achieve our ambitious plan. Ensuring our entire business is committed to ESG initiatives is a major and necessary task, particularly as we remain one of the largest unlisted real estate fund managers in the Asia-Pacific region3, managing some of the most iconic shopping centres, office buildings and logistics estates across Australia and New Zealand on behalf of global investors.

Many investors want to put their money into assets that provide a financial return as well as making a difference to society. Real estate assets have a major role to play in improving environmental, social and governance outcomes. Our clients and customers are repeatedly telling us that ESG matters, and we hear that message. It matters to us also. We are serious about it and we are making progress toward achieving real sustainability every day.

Charopy Smart Bin

In 2020, we were the first in Australia to install ‘smart bins’ at a shopping centre.4

 

The Charopy smart bins have an electronic door controlled by a bar code reader that only admits eligible container deposit scheme recyclable bottles and cans. This helps our customers make the right choice, which prevents contamination of our recycling bins, and helps us to gather a clean stream of higher-value recyclable materials. They were developed by a start-up company under the NSW Treasury Start-Up hub, supported by the CSIRO.

 

We installed two Charopy bins at Macquarie Shopping Centre’s food court in Sydney. The smart bins allow shoppers to scan the barcode on their beverage bottle or can and the bin aperture lights up green and opens the door if it’s eligible for the 10- cent container rebate. If it’s not an eligible recyclable container, the door stays closed and lights up red.

 

In the three months from installation to the end of December 2020 we collected 11,872 containers. All funds raised by recycling these containers at Macquarie Centre will be used to install additional sustainable features at the centre.

 

These smart bins have resulted in improved recycling rates of eligible containers at Macquarie Centre, whereas typically fewer than half the eligible drink containers in NSW end up being recycled.

To read more about AMP Capital Real Estate’s sustainability strategy, click here.  
To read the AMP Capital Real Estate Sustainability Report for 2020, click here.
 

Subscribe to Market Watch using the form below to receive all of my articles

Chris Nunn, Head of Sustainability and Platform Operations, Real Estate
  • Covid-19
  • Institutional Edition
  • Market Watch
  • Opinion
  • Real Estate
  • SMSF News
Share this article

Subscribe to our Insights

Here's what we found for you

Here's what we found for you

Here's what we found for you

Here's what we found for you

Our Privacy Policy explains how we handle personal information and use cookies and website tracking. We will follow the cookie and tracking settings you have selected in your browser.

AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) (AMPCFM) is the responsible entity of the AMP Capital Australian Equity Income Fund, known as the AMP Capital Equity Income Generator (Equity Income Generator) and the issuer of the units in the Equity Income Generator. To invest in the Fund, investors will need to obtain the current Product Disclosure Statement (PDS) from AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232 497) (AMP Capital). The PDS contains important information about investing in the Fund and it is important that investors read the PDS before making a decision about whether to acquire, or continue to hold or dispose of units in the Fund. Neither AMP Capital, AMPCFM nor any other company in the AMP Group guarantees the repayment of capital or the performance of any product or any particular rate of return referred to in this document. Past performance is not a reliable indicator of future performance. While every care has been taken in the preparation of this document, AMP Capital makes no representation or warranty as to the accuracy or completeness of any statement in it including without limitation, any forecasts. This document has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. Information, without taking account of any particular investor’s objectives, financial situation or needs. Investors should, before making any investment decisions, consider the appropriateness of the information in this document, and seek professional advice, having regard to their objectives, financial situation and needs. This document is solely for the use of the party to whom it is provided and must not be provided to any other person or entity without the express written consent of AMP Capital.

Distributions for AMP Capital Equity Income Generator are preannounced six months in advance. Distributions for the AMP Capital Income Generator may be preannounced six or twelve months in advance. It is important to note that the final annualised distribution yield will not be known until the end of the financial year, that the distribution yield estimate is not guaranteed, and that it may change due to market conditions.

Estimated Distributions Assumptions: The estimate is based on the amount of income we expect to receive into the fund over the period from 31 December 2015 to 30 June 2016, based on the current investments held by the Fund, the level of dividends and franking credits expected to be earned from investments held in the Fund. If the companies whose securities we hold in the fund do not pay the dividends or franking credits they have forecast, or if the Fund portfolio changes materially over the period, this may impact our estimated distribution amount.
 

Cookies & Tracking on our website.  We use basic cookies to help remember selections you make on the website and to make the site work. We also use non-essential cookies, website tracking as well as analytics - so we can amongst other things, show which of our products and services may be relevant for you, and tailor marketing (if you have agreed to this). More details about our use of cookies and website analytics can be found here
You can turn off cookie collection and/or website tracking by updating your cookies & tracking preferences in your browser settings.