While it has been a challenging few years in the property industry, with turbulent macroeconomic conditions proving no sector is immune, I am proud of the high-quality work the QIC Real Estate team has continued to deliver, implementing our environmental, social and governance (ESG) strategy across our portfolio.

This year, we spent time revisiting and refreshing our Real Estate ESG strategy, to ensure it continues to respond to the most material risks and opportunities across our portfolio and addresses the most pressing ESG considerations and challenges we face today and into the future. Critical to this process was the integration of outputs from our second materiality assessment conducted this year. Through this assessment process we undertook research on current and emerging megatrends and extensive stakeholder engagement to identify the ESG factors most material to our portfolio.

We also developed our Real Estate Sustainable Finance Framework, in collaboration with a consortium of selected banks. The Framework outlines the parameters for the issue and management of sustainable finance instruments across the Funds within our portfolio, and has been created in line with our ESG strategy. We look forward to beginning to issue sustainable finance instruments under the Framework in FY25 and beyond.

As we work towards achieving our net zero carbon emissions objective, I am proud to report that the QIC Active Retail Property Fund (QARP) achieved net zero carbon emissions (Scope 1 and 2) from 1 April 2024¹, well ahead of its 2028 target.

Pleasingly, I can also report that all five of our real estate Funds received a 5 Star GRESB² rating this year, placing them in the top 20% of performance globally. This is the highest rating available under the GRESB ratings system and recognises our funds as global industry leaders in the sustainability performance of our assets.

Our privilege as a real estate owner and manager is the role we play in serving our communities while also delivering for our clients. This year, we continued to deliver our Community Investment Program, focused on the theme of ‘physical health and wellbeing’. In collaboration with our community partners, Nutrition Australia and YMCA, we delivered a six-week Wellness Challenge at select assets, driving deeper measurable impact for participants and supporting them to make informed, long-term choices about their health and wellbeing.

Our ’physical health and wellbeing’ focused programs, alongside the delivery of a range of other community support programs across our portfolio, saw QIC Real Estate provide approximately $1.93 million in community contributions in FY24, an increase of 21% from FY23.³ We are proud of the important role our centres play in their communities, and want to ensure we continue to make the most of our opportunity to contribute in this way.

The QIC Real Estate team and I are pleased to present our 2024 ESG Report.

 

2024 Report Highlights:

• Achieved net zero carbon emissions (Scopes 1 and 2) for the QIC Active Retail Property Fund, ahead of our 2028 target⁴
• Achieved 5 Star GRESB ratings across all five of our real estate funds, placing them in the top quintile or 20% of performance globally and recognition as global industry leaders 
• Continued our large-scale onsite solar rollout program⁵, completing new rooftop solar systems in Victoria, New South Wales and Queensland
• Developed our QIC Real Estate Sustainable Finance Framework, positioning us to issue sustainable finance instruments in FY25 and beyond
• $1.93m in community contributions, an increase of 21% from FY23⁶
• Delivered a six-week Wellness Challenge at select assets through our Community Investment Program partnership with Nutrition Australia and YMCA, delivering measurable physical health and wellbeing impacts for program participants⁷
• Obtained Cleaning Accountability Framework (CAF) certification for five additional assets, with our three already certified assets successfully completing independent ‘health checks’ to ensure ongoing compliance with the CAF standard⁸

 

¹ QARP’s Net zero carbon emissions operating status relates to existing assets held in the fund as at 30 June 2024 which are 100% owned and managed, using a Climate Active certification pathway and definition of operational carbon emissions which includes Scope 1, Scope 2 and some Scope 3 (noting certification is not yet complete and is due for finalisation in Q2 FY25).  Note that while the asset level Climate Active certifications for Domain Central, QLD, Craigieburn Junction, VIC and Bathurst City Centre, NSW, once finalised, will apply from 1 July 2023, QARP’s stated date for having achieved Net zero carbon emissions is 1 April 2024 onwards to allow for the Fund’s divestment of Hinkler, QLD on 27 March 2024.  Any future asset acquisitions into the Fund will be assessed for their ability to achieve Net zero carbon emissions, noting that at least 12 months of operating data covering a full financial year would be required before certification could be contemplated and achieved.

² QIC is an investor member of GRESB and pays an annual fee.

³ QIC Real Estate uses the B4SI Framework to measure its community contributions. QIC Real Estate is a member of B4SI and pays an annual fee. 

⁴ QARP’s Net zero carbon emissions operating status relates to existing assets held in the fund as at 30 June 2024 which are 100% owned and managed, using a Climate Active certification pathway and definition of operational carbon emissions with includes Scope 1, Scope 2 and some Scope 3 (noting certification is not yet complete an is due for finalization in Q2 FY25).  Note that while the asset level Climate Active certifications for Domain Central, QLD, Craigieburn Junction, VIC and Bathurst City Centre, NSW, once finalised, will apply from 1 July 2023, QARP’s stated date for having achieved Net zero carbon emissions is 1 April 2024 onwards to allow for the Fund’s divestment of Hinkler, QLD on 27 March 2024.  Any future asset acquisitions into the Fund will be assessed for their ability to achieve Net zero carbon emissions, noting that at least 12 months of operating data covering a full financial year would be required before certification could be contemplated and achieved.

⁵ 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. Further information on QIC’s approach to modern slavery can be seen in QIC’s latest Modern Slavery Statement.

⁶ Our community contributions for FY24 have been verified by Business for Societal Impact (B4SI). QIC Real Estate is a member of B4SI and pays an annual fee.

⁷ Refer to Community Investment section of this report for more details.

⁸ Refer to Our Progress for details on our sustainable value chain, including reference to the Cleaning Accountability Framework.