Australia’s property industry has reaffirmed its position as an industry leader in environmental, social and governance performance.
Australia and New Zealand property outperformed its rivals, winning the Global ESG Benchmark for real estate assets (GRESB), with the Oceania region topping the global ranks for the ninth consecutive year.
Property Council of Australia chief executive Ken Morrison believes the result shows Australia is being a world leader and is not merely sitting back waiting for government action.
“The investments that Australian property companies are making in sustainability is supporting the global transition to a low-carbon, more sustainable and more resilient future, which is delivering value for investors and meeting the needs of a growing population and economy,” Mr Morrison continued.
GRESB’s results are used by more than 100 institutional investors around the world representing US$22 trillion in assets under management. More than 1,000 property companies, REITs, funds and developers participated in the 2019 assessment.
The assessment scored and benchmarked the ESG performance of 80 real estate funds, companies and developers from Australia and New Zealand with assets valued at US$242 billion.
Australia and New Zealand achieved an average GRESB score of 81, up from 76 last year, which is well ahead of the global average of 72.
“The strong performance by Australian property assets in a growing pool of participants is testament to our industry’s commitment to ESG principles and their leadership on energy efficiency, emissions reduction, inclusion and health and wellness which are all increasingly important factors for the global investment marketplace,” Mr Morrison concluded.