We understand the value of strategic locations and the environmental benefits of repurposing brownfield sites into modern facilities. Key to our development specifications are innovative materials, energy generation and low carbon solutions.
Our development specifications continue to respond to shifting customer needs, our commitment to reducing carbon and on-site renewable power generation.
We are accelerating our transition to carbon neutral buildings. One path towards that outcome is our participation in the Materials and Embodied Carbon Leaders Alliance (MECLA), which unites developers, owners, builders and suppliers with a single common goal – to decarbonise buildings.
It is our ambition for brownfield sites in infill locations to be the majority of our developments. These developments are a great opportunity for Goodman and planning authorities to transform industrial areas into thriving commercial precincts, reuse materials and reduce waste, as well as place our customers closer to their consumers.
|Material drivers of our strategy|
|Sustainable design and management|
|Customer attraction and retention|
|Climate risk and resilience|
|Carbon reduction strategies|
|Smart energy solutions|
|Flexible and adaptable properties.|
|Target||Progress||UN SDG alignment|
|400MW of solar PV capacity in operation by 2025||
A further 70MW of solar PV installed or committed to during FY21 taking Goodman’s global installations to approximately 125MW.
Targeting an additional 75MW in FY22 subject to planning approvals.
|100% renewable energy use within our operations by 2025||
Finalised an agreement to start using 100% green power in our Australian operations from 1 July 2021. This will raise our global energy usage from renewable sources to approximately 60%.
Continued investing in solar to increase renewable energy across our property portfolio.
Looked at opportunities to generate renewable energy certificates to compensate for limited renewable options in some markets.
|Carbon neutral operations by 2025||
Achieved carbon neutrality for our global operations in FY21. This includes emissions within our operational control and excludes embodied emissions from our developments and our customers’ emissions.
We will continue to lower our operational emissions and increase our use of renewable energy.
|Maintain >95% overall occupancy rate||Achieved a 98% occupancy rate.|
Our properties are designed with efficiency, function and customer comfort front of mind. Throughout a building’s lifecycle, its purpose will need to adapt to changing customer needs, which is why our assets are flexible, resilient and in demand for the long-term.
We engage extensively with our customers during the design phase, and incorporate sustainable design features and solutions into our development approach. Our objective is to partner with our customers and deliver them a highly functional, sustainable and exceptional property that enhances their business.
We acknowledge that the changing climate presents tangible risks to Goodman’s business. Goodman completed a scenario-based climate risk assessment aligned with TCFD guidelines in 2020 to examine key physical and transitional climate risks in our major regions.
Our five most material risks are:
|Increasing temperatures and heatwaves|
|Extreme precipitation events|
|Windstorms (tropical and extra tropical)|
|Severity of hailstorms|
|Sea level rise|
The process identified several ways we could mitigate climate impacts on our business and lead by setting ambitious targets around reducing emissions, increasing renewable energy and achieving carbon neutrality.
We continue to evaluate the risks posed by extreme weather events and to update design guidelines to minimise the financial risks associated with them.
Goodman achieved carbon neutral global operations ahead of our 2025 target. Certified by the Australian government’s Climate Active program, our emissions inventory included Scope 1 and 2 GHG emissions and upstream and downstream Scope 3 emissions generated from our operational activities. The boundary of our carbon neutral certification excluded customer emissions, however our commitments to solar PV and energy efficiency help support our customers with aligned emissions reduction targets. Importantly, emissions from Goodman controlled areas across our global portfolios (landlord controlled areas) were included. The embodied emissions of the materials we use in our developments were excluded and are being addressed separately as part of our commitment to carbon neutral developments. The result comes from reducing our own operational emissions, increasing our use of renewable energy and investing in 100% Australian carbon credit units.
All regions contributed to our reduced carbon footprint, with Europe and New Zealand having already achieved carbon neutral status. During the year, our Australian operations transitioned to 100% green power, which will dramatically reduce the Company’s total future emissions.
We continued to support and influence long-term sustainable solutions for our customers and investors. We believe the property sector has a vital role – from the estates we develop, through to how we can work with our customers to achieve sustainability outcomes in their businesses too.
Goodman is reducing carbon in the development process as well. We are calculating the volume of – and placing a value on – embodied emissions in our projects globally, which means we can reduce and offset.
To offset the carbon emitted in areas outside Goodman’s control, as well as to support an Aboriginal-owned and operated carbon farming business, we invested in the Arnhem Land Fire Abatement (ALFA) projects in Australia’s Northern Territory.
Arnhem Land is prone to extreme wildfires that affect people, plants and animals. The ALFA projects employ Traditional Owners and Aboriginal rangers to undertake traditional fire management across more than 80,000 square kilometres. This work drastically reduces emissions while protecting culturally significant sites from destructive wildfires.
Funding from carbon offsets also enables the projects to invest in other community identified priorities and projects that support Traditional Owners to manage the land and sea country of Arnhem Land.
Following our milestone of achieving carbon neutral operations this year, we are evaluating the embodied carbon liability of our development activities. We know this is significantly higher than our operational carbon.
The primary source of Goodman’s embodied carbon emissions is from materials such as concrete and steel. We are collaborating with our supply chain partners to identify lower carbon solutions for our design and construction process. Data and resources are being shared across our markets to bring consistency to our approach.
We have created carbon baselines for our developments globally. Using a baseline of carbon per square metre, we can work towards reducing embodied emissions. By placing a value on the embodied carbon, we’re creating a budget to evaluate and invest in carbon reduction opportunities. Options include low carbon concrete and recycled materials as well as carbon offsetting options.
Goodman is working towards a target of using 100% renewable energy within its operations by 2025.
This is not a simple transition, as renewable sources of power are not easily available in some markets. In these places, we’re looking to our investments in solar PV and to innovative ways to generate renewable energy certificates as part of the solution. In other markets, we’ve made great steps towards our goal. In Australia, Goodman completed its transition to 100% certified GreenPower for its electricity needs. Because electricity generates more than 90% of our operational emissions in Australia, the new arrangement should result in a significant reduction of our emissions.
In other regions, we are looking at ways to increase our use of renewables and reducing our use of fossil fuels. In Germany, Goodman has installed high quality heat pumps at our new Halle VI Logistics Centre to moderate internal temperatures during winter and summer. The heat pumps use around 35% less energy than traditional gas-powered systems.
As Goodman continues to advance its sustainability strategy, it has increased its goals for generating renewable energy and reducing carbon globally.
The increased target of 400MW of solar PV installed or committed globally by 2025 is estimated to produce enough electricity to power 120,000 homes for a year. Installations increased during the year as we reached 125MW of solar capacity either installed or in progress, with a further 70MW targeted for FY22.
As the pace to install solar picks up, we review some key solar projects across Goodman’s operating regions.
In Europe, Goodman’s target is to install approximately 90MW (peak capacity) of solar across its properties by 2025.
The Alblasserdam Logistics Centre in the Netherlands is a strong example of how we’re working on our target. 6.8MW of solar capacity was installed on the 55,000sqm roof, producing enough energy to power the entire building.
Also, on the Antwerp-Brussels logistics route, we have undertaken a massive 3.2MW solar upgrade at the Puurs Logistics Centre in Belgium. Featuring 7,120 solar panels, the result is the size of almost three football fields.
Blending form, function and sustainable design in a logistics and data centre hub, the 500,000 square metre estate of Goodman Business Park in Greater Tokyo has progressively installed a massive 14.9MW solar array across the park. The majority of the energy generated from the roof-mounted systems is distributed into the local electricity grid.
Goodman has installed or committed 40MW of solar in Australia to date. This included 15MW installed or committed as part of new developments during 2021, ranging from 240kW systems up to large 3.5MW installations. A further 23MW of installations and commitments is forecast for the stabilised portfolio next year.
In 2021, Goodman’s industrial development in Shanghai, Pudong International Airport Logistics Park, underwent LEED operations and maintenance re-certification. All six buildings in the facility have now achieved a LEED Platinum rating, improving from the single LEED Platinum and five LEED Gold ratings achieved in 2019.
The initiatives to achieve the rating include:
|A 4.2MW solar system with real-time monitoring|
|Automated LED lighting and ambient light sensors|
|A smart irrigation system which adapts to soil and weather conditions|
|Improved waste management to optimise recycling|
After delivering more than 600 million meals in 2020, meal delivery service HelloFresh needed a new temperature-controlled production and distribution facility in a prime location to support its rapid expansion. The facility also needed to mitigate the environmental impact of its growth.
Goodman worked closely with HelloFresh to deliver its new 21,400sqm centre in Nuneaton, named the Beehive by employees. It’s within a four-hour drive of 55.9 million consumers and ideally suited to national fulfilment and fresh food delivery.
Key sustainability features of the Beehive include:
|BREEAM Excellent rating|
|Skylights occupy 12% of the roof to maximise natural light|
|Optimised solar system to be installed across the whole roof|
|Motion and daylight sensors to reduce power consumed by lights|
|Superior air tightness for improved temperature control|
|Electric vehicle charging stations|
Laurent Guillemain, UK CEO, HelloFresh
Goodman is continuing to acquire and redevelop brownfield sites. We have extensive development experience in this area and, currently, close to 60% of our global developments are existing sites.
Brownfield sites are those that have been previously developed yet offer an opportunity to be re-developed into modern, efficient, sustainable properties. These older style developments are typically located in established industrial locations, close to urban centres, which we refer to as infill locations.
Brownfield redevelopments offer significant benefits to our customers and communities. Being close to consumers means faster speed to market and lowered transport-related emissions. Such sites bring employment to local communities and lessen the need to rezone and develop greenfield (undeveloped) land.
Brownfield sites can utilise existing infrastructure, while materials from the previous facility can be recycled into the new construction, thereby reducing waste.
Together with the City of Long Beach, California, Goodman is sustainably redeveloping a major brownfield site, removing the need for large-scale demolition and new construction.
50 acres of the 93-acre former Boeing C-17 manufacturing plant is being adaptively re-purposed as the headquarters for Relativity Space, the first company to 3D print a rocket and build the largest metal 3D printers in the world.
The new property will feature aerospace amenities, walking paths, bike paths and drought tolerant landscaping. It will be able to employ 2,000 local residents.
Its sustainability features include:
|Electric vehicle charging stations and bike racks|
|Cool roofing system for lowered power consumption|
|Improved water quality and conservation by reducing site runoff|
It is important that we contribute tangibly to the resilience of the environments where we operate. Due to the nature of our development activities, we must be part of efforts to improve the natural environment and biodiversity, specifically. This works well with our preference for developing brownfield sites and our expertise, when needed, in rehabilitating contaminated environments.
Biodiversity is becoming a major focus area for Goodman. We are looking for opportunities where we can contribute and enhance biodiversity, including establishing urban forests, linking wildlife corridors, installing beehives and expanding conservation areas at our sites.
Goodman is supporting efforts to increase forestry in the Netherlands where team members are planting trees to help compensate for the ecological footprint of developments. This includes our Nijmegen III Logistics Centre, which led to the planting of around 18,000 new trees. The team has also trialled a forestry method known as the Miyawaki method at the Puurs Logistics Centre in Belgium, which involves the dense planting of native trees in a limited space.
At Oakdale Industrial Estate in Western Sydney, Goodman is improving the estate’s biodiversity and potential for future flora and fauna as it works respectfully alongside First Nations groups to manage sensitive sites and artefacts.
About 50 hectares of the site has been set aside as biodiversity management areas (BMAs) and around one million native species have been planted.
Goodman’s approach has been dedicated and detailed. For example, native turtles, eels, fish and an endemic swamp lily were rescued from farm dams and relocated to a rehabilitated creek. Elsewhere, sandstone waste from the nearby infrastructure tunnelling project, Westconnex, was recycled and used across the estate – providing both an aesthetic and an environmental benefit.
Goodman completed a national tree audit in Australia and estimated 24,490 trees exist across our portfolio.
Trees store carbon from the atmosphere, which helps to mitigate the rising temperatures associated with climate change. The total lifetime carbon stored in our Australian tree portfolio is approximately 15,000 tonnes.
To maintain the balance of species, age and the replacement of removed trees, Goodman continually plants new stock and conducts maintenance as new trees are established to keep them healthy.
The organic seasonal produce being grown at Goodman’s new sustainable garden, Good+Nature at Interchange Park in Sydney’s west, is helping to fill OzHarvest hampers for those in need.
With its own biodynamic ecosystem, the garden features 23 individual garden beds made from predominantly recycled materials, stingless native bees to help with pollination, native fish and aquatic plants. A 2.2kW solar system provides electricity, while rainwater irrigates the garden.