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Our performance

QIC Real Estate uses a number of ESG ratings systems, including NABERS, Green Star and GRESB, to benchmark against peers and track our performance over time. We also monitor our performance against short and long-term objectives to track our progress in implementing our ESG Strategy.

We are pleased to present our performance ratings and data for FY23.

National Australian Built Environment Ratings System (NABERS)

NABERS is a national ratings system that measures the environmental performance of Australian buildings. QIC Real Estate submits properties in QIC Property Fund (QPF), QIC Town Centre Fund (QTCF) and QIC Office Fund (QOF) portfolios for NABERS Energy and Water assessments annually.1

QIC Real Estate transitioned from the use of calendar year to financial year ratings periods for NABERS Energy and Water ratings in FY23. Waste ratings will move to calendar year from next year's report. In the NABERS results received in FY23 (covering the FY222 reporting period), the following average portfolio ratings were achieved:

Table 2: QIC Real Estate NABERS ratings

Fund NABERS Energy Ratings   NABERS Water Ratings   NABERS Waste Ratings
  CY20 CY21
CY22  FY22   CY20 CY21 CY22 FY22   CY21 CY22
QPF 3.6 4.1 4.4  4.6   3.1 3.9 3.9 3.8   N/A N/A 
QTCF 3.4 4.0 4.3  4.5   3.2 4.1 4.0 3.8   N/A N/A 
QOF3 5.1 5.3 5.3  5.4   4.1 4.2 4.6 4.8   1.3  1.2

Note: The above table presents self-calculated portfolio ratings based on formal individual asset ratings provided by NABERS in the years displayed. Portfolio ratings use average weighted star ratings and ownership percentage to determine a final result.

The ongoing implementation of environmental initiatives aims to deliver continuous annual improvements in these scores, in line with the ESG objectives identified in Our Approach. Recent NABERS Energy and Water ratings are based on the FY22 performance period where COVID-19 lockdowns in Victoria and New South Wales may have partially contributed to score uplift for funds more heavily weighted with assets in these geographies.

The execution of a new waste management services contract covering the QOF assets in FY24 is expected to drive future improvements in that fund’s NABERS Waste ratings.

QPF

NABERS Energy and Water ratings for Shopping Centre Base Building: 100%4 of QPF's shopping centre portfolio has been rated by NABERS Energy and Water. 

  • Claremont Quarter, Perth, WA
  • Castle Towers, Sydney, NSW
  • Westpoint, Sydney, NSW
  • Canberra Centre, Canberra, ACT
  • Eastland, Melbourne, VIC
  • Watergardens, Melbourne, VIC
  • Woodgrove, Melbourne, VIC
  • Hyperdome, Logan, QLD
  • Robina Town Centre, Gold Coast, QLD
  • Grand Central, Toowoomba, QLD
  • Werribee, Melbourne, VIC
  • Epping, Melbourne, VIC
  • Coomera Town Centre, Gold Coast, QLD

QTCF

NABERS Energy and Water Ratings for Shopping Centre Base Building: 100%5 of QTCF's shopping centre portfolio has been rated by NABERS Energy and Water.

  • Claremont Quarter, Perth, WA
  • Castle Towers, Sydney, NSW
  • Westpoint, Sydney, NSW
  • Canberra Centre, Canberra, ACT
  • Eastland, Melbourne, VIC
  • Watergardens, Melbourne, VIC
  • Woodgrove, Melbourne, VIC
  • Hyperdome, Logan, QLD
  • Robina Town Centre, Gold Coast, QLD
  • Grand Central, Toowoomba, QLD
  • Werribee, Melbourne, VIC
  • Epping, Melbourne, VIC

QOF

NABERS Energy, Water and Waste Ratings for Office Base Building: 100%6 of QOF's office portfolio has been rated by NABERS Energy, Water and Waste.

  • 111 George Street, Brisbane, QLD
  • 33 Charlotte Street, Brisbane, QLD
  • 54 Mary Street, Brisbane, QLD
  • 63 George Street, Brisbane, QLD

 

1 Lodgement fees are paid on behalf of QIC to NABERS for each individual rating undertaken.
2 QIC Real Estate transitioned from the use of calendar year to financial year ratings periods for NABERS ratings in 2022.
3 QOF assets use an annual rating period of September to August.
4 100% of rateable portfolio. Merrifield City (VIC) is excluded from annual NABERS ratings due to its limited GFA (<7,000m2) making it unsuitable for the NABERS Shopping Centre rating system.
5 100% of rateable portfolio. Merrifield City (VIC) is excluded from annual NABERS ratings due to its limited GFA (<7,000m2) making it unsuitable for the NABERS Shopping Centre rating system.
6 100% of rateable portfolio. Development site at 62 Mary Street excluded. 

Green Star

Green Star is an internationally recognised sustainability rating system for buildings, fitouts and communities. The Green Star Performance rating system provides a holistic sustainability performance measure in relation to the operation of existing buildings.

In FY23, QIC Real Estate submitted all retail and commercial assets (excluding peripherals) for Green Star Performance Year 1 ratings. Due to a lack of availability of Green Star accredited assessors we are yet to receive our finalised Year 1 ratings, however draft performance analysis indicates QIC Real Estate will achieve a portfolio average performance of 3-Stars.7

 

7 QIC is a member of the Green Building Council of Australia who administer the Green Star sustainable building rating tools, and we pay an annual fee. 

GRESB

GRESB is one of many tools used by institutional investors to engage with their investments, with the aim of improving the sustainability performance of their investment portfolio, and the global property sector.

QIC Real Estate has participated in GRESB reporting since 2012 for QTCF and QPF, and started reporting for QOF, QIC Australia Core Plus Fund (QACPF) and QIC Active Retail Property Fund (QARP) in 2016.8

We continue to work closely with the Property Council of Australia and its members to ensure the GRESB benchmark further evolves as a useful tool for investors to understand and compare performance, reward demonstrated leadership in real performance, and appropriately measure the industry's contribution to mitigating climate change impacts and the many other significant ESG challenges faced by Australian real estate managers. Our 2023 results, alongside prior year results, are detailed in the table below.

Table 3: FY23 GRESB ratings

Fund 2020
score
2021
score

2022
score
2023 score9 Overall score vs GRESB average10
QPF

77

3 Stars

83

4 Stars

91

5 Stars

85

4 Stars

85 vs 75
QTCF

76

3 Stars

82

4 Stars

92

5 Stars

85

4 Stars

85 vs 75
QACPF

77

4 Stars

82

4 Stars

82

4 Stars

84

4 Stars

84 vs 75
QARP

79

4 Stars

87

5 Stars

85

4 Stars

86

4 Stars

86 vs 75
QOF

89

5 Stars

81

4 Stars

92

5 Stars

92

5 Stars

92 vs 75

 

  • Our 2023 GRESB results relate to the CY2022 performance period.
  • Improvements were seen in the 2023 scores for QACPF and QARP when compared to 2022 results. This is largely attributed to improvements in energy performance and the adoption of a broader range of ESG performance targets.
  • QOF upheld its 2022 score of 92 and maintained its 5-Star rating.
  • QTCF and QPF suffered declines in their scores compared to 2022 results. The declines relate to fewer points being achieved in the Energy, Carbon, and Water aspects of the survey’s Performance section. GRESB’s methodology assesses like-for-like performance across these aspects, comparing the current reporting period (CY22), with the previous reporting period (CY21) to calculate a score based on how a fund’s year-on-year performance compares to the benchmark values reported by other funds contained in the same peer group. QTCF and QPF saw an increase in energy and water use in CY22 compared to CY21, driven by a return to ‘back to normal’ operating hours at Victorian, New South Wales, and Australian Capital Territory based assets in CY22 compared to CY21, when those States/Territories all experienced significant periods of COVID-19-related lockdowns. QACPF, QARP and QOF did not experience a similar impact due to their portfolios being weighted towards assets outside of Victoria, New South Wales, and the Australian Capital Territory.

 

8 QIC is an investor member of GRESB and pays an annual fee. 
9 2023 GRESB scores cover the 2022 calendar year performance period. 
10 Average score of all GRESB participants in 2023.

Key data and trends

FY23 was the first financial year since FY19 not impacted in some way by COVID-19 related lockdowns. The return to ‘back to normal’ operating hours and foot traffic experienced at our Victorian, New South Wales and Canberra-based assets in FY23 compared to recent years resulted in increases in energy and water use and a reduction in our waste recycling performance.

Aside from this, several initiatives were undertaken throughout the year to improve our performance across the retail and office portfolios against various environmental sustainability metrics: 

  • QIC Real Estate's large-scale solar rollout continued during the reporting period, with the completion of additional rooftop solar systems at Merrifield City (VIC, 0.33MW), Bathurst City Centre (NSW, 0.605MW), The Village Upper Mount Gravatt (QLD, 0.346MW), and Nerang Mall (QLD, 0.515MW). Renewable energy generated by onsite solar systems accounted for 15% of QIC Real Estate’s total direct energy use in FY23, contributing to a reduction in grid-sourced electricity use, and the avoidance of more than 12,300 tonnes of Scope 2 carbon emissions across the portfolio during the reporting period.
  • Despite the implementation of a number of key plant and equipment upgrades across the portfolio to improve energy efficiency, energy use across the portfolio increased slightly as a result of a return to ‘back to normal’ operating hours and foot traffic experienced at our Victorian, New South Wales and Canberra-based assets in FY23.
  • Natural gas use increased by 4% in FY23 compared to FY22. This increase was driven by a return to normal operating hours in FY23, which had the greatest impact on performance at our Victorian, New South Wales, and Canberra-based assets. These assets account for the majority of our natural gas usage across the portfolio and experienced significant COVID-19 lockdowns, reducing gas use during FY22. This year-on-year increase, driven by operational hours, has hidden efficiencies achieved through a focus on winter tuning of heating setpoints and boiler operation optimisation that has been a focus of our partnership with CIM during FY23. 
  • Despite a 4% increase in natural gas use, Scope 1 carbon emissions decreased overall by 24% in FY23 compared to FY22.  This was due in large part to an improvement in data capture processes related to the use of refrigerant gases within the HVAC systems at our assets. The improvement has meant that we can now report on actual gas use amounts and related carbon emissions instead of relying on industry standard leakage rates to estimate related carbon emissions.
  • The recycling rate across QIC Real Estate's asset portfolio has declined during the reporting period, from 39% in FY22 to 37% in FY23. The variations in recycling rates across the past five years can be attributed to COVID-19 related lockdowns experienced during FY20, FY21 and FY22, which reduced the amount and mix of waste being generated across our asset portfolio during this time, as well as improvements to the accuracy and completeness of data capture over this period. Recent actions to drive improvements in our recycling rates include the completion of physical waste assessments at all retail and office assets during FY22, and the incorporation of findings from these assessments into asset level operational waste management plans during FY23. 
  • With reference to the Greenhouse Gas Protocol 'Corporate Value Chain (Scope 3) Accounting and Reporting Standard', our reported Scope 3 carbon emissions include Category 3, 5, 13 and 15 emissions from fuel and energy related activities, waste generated in operations, downstream leased assets and investments. The increase in scope 3 carbon emissions between FY20 and FY21 was due to the inclusion of emissions related to major tenant energy use from FY21 onwards.

  FY19
FY20
FY21   FY22  FY23 Year on Year Variance
Energy

Total energy use

(GJ) 

645,674    563,121    492,672    495,903    507,639 11,736
↑ 2.4%
 

Intensity

(MJ/m2)

400  366 333 313 321 ↑ 8 
Water (potable)

Total water use

(KL) 

 1,575,176 1,262,988 899,996 1,026,204 1,218,912

192,708

↑ 19% 

Intensity

(KL/m2)

 0.98 0.82 0.61 0.65 0.77 ↑ 0.12
Recycling

Waste recycling rate

(% of total waste) 

 35% 39% 44% 39% 37%  ↓ 2%
GHG Emissions

Total Scope 1 emissions

(tCO2-e) 

 8,008 12,630 11,379.4 12,498 9,520 ↓ 2,978

Total location-based Scope 2 emissions 

(tCO2-e) 

118,965  101,361 83,619 75,332 66,433 ↓ 2,978

Scope 1 & 211 intensity 

(kg CO2-e/m2

 79 74 64 55 48 ↓ 7

Total Scope 3 emissions 

(tCO2-e

 143,814 117,492 226,588 237,449 236,004 ↓ 1,445

Total Scope 3 emissions intensity 

(kg CO2-e /m2

 89 76 153 150 149  ↓ 1
Intensity Factor

Gross Lettable Area

(m2)

 1,613,652   1,538,338   1,477,866   1,586,064 1,582,746 ↓ 3,318

 

Note: This table presents aggregated data from QIC Real Estate's portfolio of retail, office and industrial assets. The FY23 data in the table has received limited assurance. Data from assets that QIC does not have operational control over is excluded, including our joint venture assets, Westfield Coomera and Claremont Quarter.

Intensity metrics are calculated by dividing annual usage data by gross lettable area, allowing presentation of relative annual performance while accounting for changes in portfolio structure over time.

This downloadable spreadsheet presents asset level FY23 environmental performance data for each of QIC Real Estate's five funds: QIC Real Estate FY23 Asset Environmental Performance Data

To calculate the emissions related to major tenants' energy use, QIC Real Estate has: 

  • Used actual FY23 energy use figures provided by the tenant, or
  • Used actual CY22 energy use figures provided by the tenant, or
  • Estimated FY23 energy use based on actual FY23/CY22 energy intensity (kWh/m2) of an alternative tenant that most closely matches the expected operational profile of the tenancy that requires estimation. This method was applied to approximately 31% of the total gross lettable area occupied by major tenants across the portfolio of retail assets which accounts for 11% of scope 3 emissions.

 

11 Location-based scope 2 carbon emissions.

Performance against FY23 targets

QIC Real Estate continued to monitor our annual performance against a set of short-term targets during the FY23. These targets can be seen in the table below, along with a status update on our performance against them. 

Our current FY24 short-term targets can be viewed in ESG Strategy.

Table 5: Performance against FY23 goals

ESG Strategic Focus Area Target
Status
Resource efficiency & circular economy



Achieve a total operational waste diversion rate of 45% in FY23 and a total 'A-grade' operational waste diversion rate of 40% in FY23

Not achieved

FY23 total operational waste diversion rate: 37%

FY23 total 'A-grade' operational waste diversion rate: 33%

Achieve a total retail portfolio potable water use intensity of ≤820 L/m2 and a total office portfolio potable water use intensity of ≤600 L/m2 in FY23

Achieved

FY23 total retail portfolio potable water use intensity: 819.8 L/m2

FY23 total office portfolio water use intensity: 313.8 L/m2

Deliver average 5.5-Star NABERS Energy and 4.5 Star NABERS Water ratings across QOF by 31 December 2025 In progress (noting 2025 target date) 
Deliver 4-Star NABERS Energy rating by 31 December 2021 and minimum 4-Star rating by 31 December 2023 for each of the core retail assets

Achieved: Average 4-Star NABERS Energy rating achieved in FY22

In progress: Minimum 4-Star Energy rating (noting December 2023 target date)

All new development projects at core retail and office assets to be designed to receive a minimum 5-Star Green Star Buildings rating  Achieved
Climate change Reduce QPF and QTCF core retail assets' Scope 1 and 2 intensity-based and absolute carbon emissions by 10% in FY23 compared to FY22

Achieved: 12% reduction reached 

FY23 combined Scope 1 and 2 carbon emissions: 57,480 tCO2-e

FY22 combined Scope 1 and 2 carbon emissions: 65,228 tCO2-e

Reduce QACPF Scope 1 and 2 intensity-based and absolute carbon emissions by 10% in FY23 compared to FY22

Achieved: 15% reduction reached

FY23 combined Scope 1 and 2 carbon emissions: 4,359 tCO2-e

FY22 combined Scope 1 and 2 carbon emissions: 5,122 tCO2-e

Reduce QARP Scope 1 and 2 intensity-based and absolute carbon emissions by 15% in FY23 compared to FY22

Achieved: 36% reduction reached

FY23 combined Scope 1 and 2 carbon emissions: 1,730 tCO2-e

FY22 combined Scope 1 and 2 carbon emissions: 2,719 tCO2-e

Reduce QOF Scope 1 and 2 intensity-based and absolute carbon emissions by 3% in FY24 compared to FY22 In progress (noting FY24 target date)
30% of energy sourced from centre-based renewable energy by 2025 In progress (noting 2025 target date): Tranche 1 solar PV systems installed and fully operational, and installation of Tranche 2 systems commenced in FY23 and expected to be completed in FY24 delivering 30% target
Community investment Community investment Program focused on 'physical health and wellbeing' established with implementation activity to progress our flagship social theme evident at 50% or more of our asset portfolios Achieved: Community Investment Program focused on physical health and wellbeing delivered at 76% of our assets in FY23, with some centres being revisited where engagement from customers was very high
Increase Indigenous spend by 15% against FY22 across retail and office portfolio Achieved: FY23 Real Estate Indigenous spend exceeded the target, with a 315% increase on FY22 spend achieved
Sustainable value chain Increase social procurement spend (ex. Indigenous) by 10% against FY22 across retail and office portfolio Achieved: FY23 Real Estate spend with social enterprise businesses exceeded the target, with a 75% increase on FY22 spend achieved
100% of high-risk suppliers on Property Council Modern Slavery platform12 Achieved

 

 

12 Refer to Our Progress for details on our Modern Slavery approach, including reference to the human rights issue and risks associated with the allegations of the use of forced labour of Uyghur and other ethnic minorities. For further information, read QIC's latest Modern Slavery Statement.

 

 

 

Tags
ESG 2023