We aim to manage materials in a way that retains their value in a circular economy. We endeavour to recycle as much waste material as possible, with a focus on recycling materials that may be used repeatedly, constantly being returned to the same production cycle, and can be recovered without any consequent hazardous material build-up in the environment (A-Grade waste materials). We also look to reuse and repurpose existing materials and procure products that contain a high level of recycled content within our development projects.

In FY23, we continued to improve our waste management processes. Working with a specialist waste management consultant, we developed operational waste management plans for our retail assets. These plans are helping to standardise our waste management practices across the portfolio and identify additional resource recovery initiatives for implementation.

We also formalised our facilitation of the Containers for Change program at Robina Town Centre in Queensland. Containers for Change aims to increase recycling rates and reduce litter by providing Queenslanders an incentive to collect and return containers for recycling, in exchange for a 10-cent refund. Within Queensland, the recycling scheme benefits social enterprises and local individuals through the creation of employment opportunities and upskilling, as well as fundraising opportunities for local not-for-profits. During the year, approximately $2,000 was raised through containers deposited at Robina Town Centre. This money was donated to Support Mates, a Gold Coast based disability support service promoting community participation for young adults with disabilities – offering daily support with a variety of recreational activities, self-care, and independence building opportunities. We aim to extend our facilitation of Containers for Change to our other Queensland based assets in FY24.

In FY24, we will prioritise the extension of organic waste recycling across all assets that do not already have it in place. This initiative is expected to result in a significant increase in the diversion of waste from landfill.

We will also tender for a new national waste management contract in FY24. Under the new contract, we will seek to upgrade our waste management infrastructure, roll-out additional recycling streams and standardise our waste/recycling related communications and signage across our portfolio. We expect this to drive improvements in our waste diversion from landfill rates in future years.

We aim to minimise our potable water use wherever possible by improving the efficiency of water-using equipment and optimising our building services to minimise unnecessary water use.

Our water meter upgrade program continued throughout FY23. This initiative involves the installation of digital water meters across our retail assets. The meters are connected to our building optimisation platform (CIM PEAK) and improve our ability to monitor the water use of key plant and equipment, identify and address leaks and abnormal usage spikes, and more accurately understand our common area water use separate from tenant usage.

The FY23 total waste diversion from landfill rate of 37% represents a decline in performance of ~2% below the FY22 diversion rate. COVID-19 related lockdowns may have temporarily increased waste diversion rates in FY20, FY21 and FY22 in Victoria, the ACT and New South Wales due to lower customer visitation and reduced retailer waste generation as a result of extensive store closures. We expect our performance to improve as additional waste diversion initiatives are implemented throughout FY24 and beyond. 

In FY23, we also began tracking the diversion from landfill of ‘A-Grade’ waste material. This is material that can be used repeatedly, constantly being returned to the same production cycle, and can be recovered without any consequent hazardous material build-up in the environment (e.g. paper/cardboard, glass, metal, organics, etc). This year, QIC Real Estate achieved an A-Grade operational waste diversion rate of 33% across the portfolio.

Figure 9: QIC Real Estate portfolio annual waste diversion rate, FY19 - FY23¹

Water use during FY23 increased by ~19% compared to FY22. This increase was driven by a reduction in the number of days our Victorian, New South Wales and Canberra-based assets were impacted by COVID-19 related lockdowns. We expect our water use to reduce in FY24 once our digital water meter roll out is complete. The meters will be connected to the CIM Peak platform and improve our ability to monitor the water use of key plant and equipment, identify and address leaks and abnormal usage spikes quickly, and further separate tenant water use from common area usage.

Figure 10: QIC Real Estate portfolio annual water use, FY19 - FY23²

¹ Waste and recycling data covers QIC Real Estate's retail and office portfolios. QIC Real Estate does not provide waste management services for industrial or commercial assets held within the QIC Australia Core Plus Fund.
² Water use data covers QIC Real Estate's retail, office, and industrial portfolios.