Three years ago, we comprehensively reviewed our ESG approach. We considered our desire for continued growth and strong financial performance, our purpose of making space for greatness, and the challenges and opportunities of the future. The result was our 2030 sustainability strategy. It builds on our work to date, aligns with our purpose and approaches the future proactively.
We monitor and review our performance annually to make sure our strategy and targets have a positive impact on our business and core operations.
Our logistics properties have become essential infrastructure for the storage and movement of goods around the world. We acknowledge this leads to environmental and social challenges and that it’s our obligation to build and manage desirable and well utilised properties in a responsible manner.
This presents opportunities for Goodman to contribute to meeting global challenges such as using renewable energy, reducing emissions, waste and water, and creating employment within better, safer workplaces. We believe our response will help to provide sustainable returns for our stakeholders over the long term. This is why sustainability is embedded into our business strategy and our operations, and why we believe our ESG targets fundamentally improve what we do.
Driving authentic and positive change is important to Goodman. Our growth and success are due to a business strategy that is focused on the long-term, not the quick wins, and a leadership team that is empowered to assess investment decisions accordingly.
Positive economic, social and environmental outcomes are crucial to our financial sustainability. Regulators, customers and capital markets are driving change and the clear integration of ESG priorities into our core business has never been more important. We believe the measures and investments we are making today respond to these changes while also supporting our financial returns.
Goodman’s 2030 sustainability strategy articulates the areas where we can make the greatest difference. Our strategy is structured around three pillars: sustainable properties, people and culture, and corporate performance. We measure our progress against long-term and short-term targets based on material ESG issues. These include:
|Climate risk, reducing emissions and using renewable energy|
|Owning strategically located properties close to consumers in key global markets|
|Developing or adapting innovative, efficient and flexible properties|
|Investing responsibly with defined governance and sustainable capital structures|
|Viewing the safety and wellbeing of people as paramount|
|Engaging regularly and openly with stakeholders including the broader community|
|Demonstrating Goodman’s values and promoting diversity, inclusiveness and social equity.|
The design of our buildings improves energy and water efficiency and the performance and well-being of our customers. Innovation is moving quickly and technology and new materials are influencing how buildings look, function and adapt over time.
Our investment portfolio and development activity remain focused on urban infill markets located close to large consumer populations. These properties, often re-purposed existing buildings, are in high demand. They present opportunities to create positive social outcomes and give our customers closer access to markets, which helps reduce their transport-related emissions.
Goodman supports the Paris Agreement goal to limit global warming to well below two degrees celsius compared to pre-industrial levels. And we support the call from COP26 in Glasgow, for countries to renew efforts to strengthen their emissions reduction targets and transition away from coal towards renewable sources of electricity.
We have assessed our climate risks and set targets around reducing carbon and increasing renewable energy use.
A major priority is to decarbonise our business. We’re measuring our emissions and doing something about them. We’re looking closely at our design and construction processes and using our global scale to influence our supply chain. Investing in carbon offsets is part of the transition and we expect that innovation, technology, materials and processes will positively impact our development approach over the next five to 10 years.
Our solar and renewable energy targets remain instrumental in minimising our global emissions. We can also use them to support our customers by initiating aligned targets. Our Australian business transitioned to 100% GreenPower this year, which will significantly reduce our emissions.
This approach aligns us with the ambitions of many of our large global customers and we are embracing new opportunities to collaborate on solutions with them.