2016 GRESB Real Estate & Debt Results Release presentation, Sydney, September 7, 2016

3. 7.3
billion
73
USD trillion
9.8
GtC/year
+0.810C above 20th century average
Worldwide
GDP CO2
Population

4. ACTIAM
Aegon NV
Alberta Investment Management Corporation (AIMCo)
Amundi
AMP Capital
AP1 First Swedish National Pension Fund
AP2 Second Swedish National Pension Fund
AP3 Third Swedish National Pension Fund
AP4 Fourth Swedish National Pension Fund
AP7 Seventh Swedish National Pension Fund
Archbishops' Council
Armstrong Asset Management
ATP
Australian Ethical Investment
AustralianSuper
Aviva Investors
AXA
AXA IM
Baldwin Brothers Inc.
Bank J. Safra Sarasin
Bayerische Versorgungskammer
Bedfordshire Pension Fund
BMO Global Asset Management
BNP Paribas Investment Partners
Brawn Capital
Brown University Sustainable Investment Fund
BT Pension Scheme
California Public Employees' Retirement System
California State Teachers' Retirement System
Cathay Financial Holding Co., Ltd.
Catholic Super CBRE Global Investors
Cbus Super
CCLA
Central Finance Board of the Methodist Church
Christian Brothers Investment Services
Christian Super
Christopher Reynolds Foundation
Church Commissioners for England
Church of England Pensions Board
Church of Sweden
Connecticut Retirement Plans and Trust Funds
Dana Investment Advisors
Danske Bank Asset Management
Danske Civil- og Akademiingeniørers Pensionskasse
Deutsche Asset Management
Dragon Capital
EdenTree Investment Management Ltd.
Encourage Capital
Environment Agency Pension Fund
Epworth Investment Management Ltd
ERAFP
ESSSuper
ETF Partners
Eureka Funds Management
First Affirmative Financial Network
Friends Fiduciary Corporation
Friends Provident Charitable Foundation
FRR - Fonds de Réserve pour les Retraites
Greater Manchester Pension Fund
Henderson Global Investors
Hermes Investment Management
HESTA
HSBC Global Asset Management
IFM Investors
Impax Asset Management
Inflection Point Capital Management
Insight Investment
Jesuits in Britain
Juristernes og Økonomernes Pensionskasse
Kempen Capital Management
L&G Investment Management
Local Government Super
London Pensions Fund Authority
Mercer
Merseyside Pension Fund
Miller/Howard Investments, Inc.
Mirova MN Nanuk Asset Management Pty Ltd
Natixis Asset Management
NEI Investments
New York City Comptroller
New York State Common Retirement Fund
New Zealand Superannuation Fund
NextEnergy Capital
Nordea Wealth Management
North East Scotland Pension Fund
OFI
Ohman
Old Mutual Global Investors
OPTrust Oregon State Treasurer
OTTP
Pax World Management LLC
PensionDanmark
PGGM
PKA
Plater Trust
Railpen Investments
Rathbone Greenbank Investments
Representative Body of the Church of Ireland
Reynders, McVeigh Capital Management
Robeco
Russell Investments
Sisters of St. Dominic of Caldwell, New Jersey
Sonen Capital
South Yorkshire Pensions Authority
Stafford Sustainable Capital
Statewide Super
Tellus Mater Foundation
Temporis Capital LLP
The Barrow Cadbury Trust
The Joseph Rowntree Charitable Trust
The Pensions Trust
The Sustainability Group at Loring, Wolcott and
Coolidge
The United Reformed Church
Trillium Asset Management
Trustees of Amherst College
Unipension FAIF A/S
Unitarian Universalist Association
USS
Veris Wealth Partners
VicSuper
Vision Super Pty Ltd
Walden Asset Management
Wespath Benefits and Investments
West Midlands Pension Fund
West Yorkshire Pension Fund
WHEB
130
investors

5. Buildings are (a big part of) the problem…
99TWh 27.9Mt 0.47km3 15.5Mt

6. Innovation in renewable energy
…but also part of the solution

7. New waste management standards
…but also part of the solution

9. Market
Transformation

10. Sustainability Performance
BuildingStock
Leading
BREEAM Outstanding
LEED Platinum
Green Mark Platinum
Etc.
Regulation

11. Market transformation
Top down, bottom up
Capital
Market
Company
Portfolio
Building
Investment Community
CAPITAL
Investment
Manager
Portfolio Manager/
Asset Manager
Property Manager/
Facility Manager
COMMITMENT

12. TRANSPARENCY RISKOPPORTUNITY

13. 3.9x
The difference in overall
GRESB Score between the
Top 10% and Bottom 10%
entities in 2016

14. “U.S. REITs with higher
GRESB ratings deliver higher
returns per unit of risk”
“2.75% return spread between
the Top 10% and Bottom 10%
European non-listed GRESB
entities”

15. The Assessment

16. REAL ESTATE PORTFOLIOS
PROPERTY
COMPANIES
CAPITAL
MARKET
BENCHMARK
SCORE
ASSESS
COMMUNICATE
DATA QUALITY
PROPERTY
COMPANIES/FUNDS

17. DATA PARTNERS (API)
GRESB ASSET DATA
GRESB ASSET-LEVEL SPREADSHEET

18. GRESB
SCORE
Management
Policy & Disclosure
Risks & Opportunities
Monitoring & EMS
Building Certification
Stakeholder
Engagement
Performance Indicators
8.8
%
9.5
%
12.4
% 25.2
%
24.5
%
10.9
%
8.8
%

19. Data Quality
Three-layer validation process for investment-grade data
100%
Validation
Plus
Site Visit
All Participant
Check
Open text boxes (quality)
Open-ended questions
Hyperlinks
Evidence (presence)
Evidence (content)
Data accuracy18%
2.5%
Reporting boundaries
Data quality
Evidence for answers

20. GRESB Coverage

21. 63 Countries 759 Entities 66,000 Assets

24. USD 100 billion

25. Apple Market Cap
USD 584 billion

26. USD 7.6 trillion
Commercial Real Estate
Owned by Investors

27. USD 2.8 trillion
GRESB Coverage

28. Competitive Differentiation & Advantage
Risk & Uncertainty
USD 2.8 trillion
GRESB Coverage

29. GRESB Performance

30. GRESB Model
Global ESG performance

31. GRESB Model
Regional ESG performance

32. GRESB Model
Australia/NZ

33. Performance?

34. 3,037
Homes
Energy
Australia/NZ: Footprint and LFL Consumption 2014-2015

35. 19,279
passenger cars
Carbon
Australia/NZ: Footprint and LFL Consumption 2014-2015

36. 62
Olympic
pools
Water
Australia/NZ: Footprint and LFL Consumption 2014-2015

37. 80,170
truck loads
Waste
Australia/NZ: Footprint and LFL Consumption 2014-2015

38. Renewable Energy
Global

39. Renewable Energy
Australia/NZ

40. Intensities – energy consumption
Input versus output

41. But also...

42. GRESB Aspects
Global
2016 2015

43. GRESB Aspects
Australia/NZ
2016 2015

44. Stakeholder Engagement
Global

45. …and many more indicators
Such as Health & Well-being

46. What drives
performance?

47. PLAN
DO
CHECK
ACT INDICATOR

48. Carbon Management
Global
1. ESG policy includes carbon emissions
2. Carbon emissions target in place
3. Due diligence process includes carbon
emissions
4. Risk assessments include carbon emissions
5. Data management system in place
6. Reporting carbon emissions data
7. Offsetting carbon emissions
8. Reporting carbon intensity data
9. External review of carbon emissions data
1.
2.
3.
4.
5.
6.
7.
8.
9.

49. ESG Performance Dynamics
Global leadership trends over time

50. Sector leaders
Australia/NZ
2016 Regional Sector Leader
Retail Lendlease Sub-Regional Retail Fund – Lendlease
Office (private) Australian Prime Property Fund Commercial - Lendlease
Office (listed) DEXUS Office Trust
Diversified -
Retail/Office
Stockland 🌐
🌐 Global Sector Leader

51. Road Ahead

52. 759
ENTITIES
60
(2015: 54)
AUS/NZ
ENTITIES
-2% LFL Change in Carbon Emissions (427kt)
SCORE LEADREPORT

54. Sustainability Performance
BuildingStock
Leading
BREEAM Outstanding
LEED Platinum
Green Star Six Star
Etc.
Regulation

56. And it’s not just investors…
Lenders are waking up…
18
GRESB Debt
Participants
USD 44 bln
Total
Loan Portfolio
USD 7.1 bln
Green
Property Bonds

57. Sustainability Performance
Companiesandfunds

58. So, what is your GRESB Rating?