Environmental

Market Leadership, Sustainable Growth, Financial Performance and Capital

Environmental

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ENVIRONMENTAL
Indicator Description Reported Response Reference link

Materials

EN1 Materials used by weight, value or volume. Not material - the consumption of materials used is not a significant part of Dexus's operations, as its primary business is the leasing of commercial, retail and industrial buildings.
EN2 Percentage of materials used that are recycled and reused input materials. Not applicable - see direct answer in EN1.

Energy

EN3 Direct energy consumption by primary energy source. Direct energy consumption is 125,457 GJ, comprising natural gas: 120,283 GJ (33,412 MWh) of which 29,472 GJ (8,187 MWh) is used as input for tri-generation; diesel: 4,925 GJ (1,368 MWh) and solar: 249 GJ (69 MWh). Environmental performance
EN4 Indirect energy consumption by primary source. Indirect energy used is grid electricity 473,269 GJ (131,464 MWh), of which 12,125 MWh is GreenPower. Environmental performance
CRE1 Building energy intensity.

Energy Intensity for Office portfolio: 384.7 MJ/sqm (106.9 kWh/sqm); Industrial portfolio: 21.9 MJ/sqm (6.1 kWh/sqm); Retail: 510.4 MJ/sqm (141.8 kWh/sqm); Total (Australia and New Zealand): 234.0 MJ/sqm (65.0 kWh/sqm)

Environmental performance
EN5 Energy saved due to conservation and efficiency improvements. Dexus achieved reductions on a like-for-like basis across the Group. Energy and greenhouse gas emissions were reduced on an intensity basis by 3.7% and 4.5%, respectively from the previous year.

Environmental performance

2013 Energy Efficiency Opportunities Report

NCOS Public Disclosure Summary 2014

EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.

Dexus is driving cost efficiencies and energy savings across its portfolios and within the Dexus tenancy. Dexus's sustainability initiatives, including IT and facilities management improvements, within the Sydney office achieved significant reductions in energy consumption from FY13 to FY14, and resulted in the tenancy being certified carbon neutral for a fourth successive year.

In FY13 Dexus set a 3-year target to reduce like-for-like energy consumption by 10% across its property portfolio which in turn will drive greenhouse gas emissions reductions in the order of 10%. Initiatives to reduce emissions include the completion of the 4.5 star NABERS Energy upgrade program across the Dexus office portfolio, ongoing targeted sustainability upgrade works across core and trading assets, and ongoing focus on efficient building operations incorporating improvements to management systems and processes.

Together these have contributed to reductions in energy use and Scope 1 & 2 greenhouse gas emissions of 8.4% and 10.2% respectively in FY14 against a FY12 baseline. Dexus continues to work towards meeting its 10% energy reduction target by FY15.

Dexus adopts renewable and low carbon energy generation technology where feasible and actively purchases renewable energy based products to reduce its carbon footprint. In FY14 the Group purchased 12,125MWh of emission-free GreenPower and generated 2,934MWh of electricity onsite from solar and cogeneration infrastructure. For FY14, this resulted in a total greenhouse gas emission abatement of 12,365 t.CO2-e, and reduced the Group's total emissions footprint by 7.2%.

Delivering committments Annual Review pg 25

Office Annual Review pg 39

Industrial Annual Review pg 43

Developments Annual Review pgs 44-45

Third Party Funds Annual Review pg 52

DWPF Annual Review pg 61

Environmental performance

2014 NCOS public disclosure summary pgs 5-7

NABERS upgrade program case study

2013 Energy Efficiency Opportunities Report

EN7 Initiatives to reduce indirect energy consumption and reductions achieved. See direct answer in EN6.

Delivering committments Annual Review pg 25

Office Annual Review pg 39

Industrial Annual Review pg 43

Development Annual Review page 44-45

Third Party Funds Annual Review pg 52

DWPF Annual Review pg 61

Environmental performance

2014 NCOS public disclosure summary pgs 5-7

NABERS upgrade program case study

2013 Energy Efficiency Opportunities Report

Water

EN8 Total water withdrawal by source.

Total water consumption for Dexus (Australia and New Zealand) during FY14 was 1,448,507 m3 (1,448,507 kL), of which 14,977 m3 (14,977 kL) was specifically from the property located in New Zealand.

Except on select properties which contain water recycling facilities, all water is sourced from municipal water supplies. Monitoring through live sub-metering system allows for identification of variances in load groups and reduction in water consumption.

Environmental performance
EN9 Water sources significantly affected by withdrawal of water. All water used in Dexus operations is sourced from water authorities or obtained from on-site rainwater harvesting.
EN10 Percentage and total volume of water recycled and reused. The volume of water recycled and reused is not material.
CRE2 Building water intensity. Water Intensity for Office portfolio: 683.6 L/sqm; Industrial portfolio: 289.0 L/sqm; Retail: 1,352.9 L/sqm; Total (Australia and New Zealand): 566.1 L/sqm Environmental performance

Biodiversity

EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas. Dexus Industrial Estate, Laverton, Victoria. Dexus has been working with the Victorian State Department of Planning and the Department of Sustainability and Environment (DSE) for a number of years on operational and management plans to develop stage 3 (65 hectares of industrial land) within the Dexus Industrial Estate, Laverton. Dexus, at the direction of the DSE, engaged flora and fauna specialists to identify and survey for any species present and to understand the ecological value of the land and develop species management plans where necessary to preserve and protect biodiversity.

Under the management plan that was developed and approved by the DSE, the species of Stripe legless lizard was relocated and conserved.

Biodiversity
EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. See direct answer in EN11. Biodiversity
EN13 Habitats protected or restored. See direct answer in EN11. Biodiversity
EN14 Strategies, current actions, and future plans for managing impacts on biodiversity. Dexus has a Biodiversity policy in place to provide overall guidance on management and retention of biological diversity.

Biodiversity

Biodiversity policy

EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk. No species on the IUCN Red List are affected by Dexus operations. As stated in Dexus's Biodiversity Policy Dexus will only engage in development activities that do not contribute to the extinction of the International Union for Conservation of Nature (IUCN) listed endangered species Biodiversity

Emissions, effluents and waste

EN16 Total direct and indirect greenhouse gas emissions by weight.

Total direct and indirect greenhouse gas emissions for Australia and New Zealand for FY14: 129,634 t CO2-e (Scope 1: 10,781 t CO2-e; Scope 2: 118,854 t CO2-e).

Environmental performance
EN17 Other relevant indirect greenhouse gas emissions by weight.

Total Scope 3 emissions from property management and corporate operations for Australia and New Zealand for FY14: 31,046 t CO2-e, comprising:

Total Scope 3 emissions from property management operations and corporate tenancies for FY14: 29,683 t CO2-e. Emission sources include transmission and distribution losses associated with purchased electricity, natural gas and diesel, and emissions arising from tenant and Dexus waste from properties sent to landfill.

Total Scope 3 emissions from corporate operations for FY14: 1,363 t.CO2-e. Emission sources include refrigerant losses from base building air conditioning equipment at Dexus Sydney and Melbourne Offices, reams of paper procured at Dexus Sydney and Melbourne offices, airline travel for all national employees, employee commuting for all national employees, taxi travel, hire cars and car mileage from all national employees.

The reported figure for FY14 of 1,363 t CO2-e represents a subset of the total Scope 1, 2 & 3 emissions of 1,995 t.CO2-e reported within Dexus's 2014 Public Disclosure Summary, an inventory prepared for the purpose of achieving carbon neutrality under the National Carbon Offset Standard. All Scope 1 and 2 emissions for corporate operations are included within the total figures disclosed under indicator EN16. Scope 3 emissions relating to transmission and distribution losses associated with purchased electricity, and emissions arising from waste sent to landfill are reported within the property management operations totals disclosed above, as Dexus is a tenant within properties under Dexus management.

Environmental performance

2014 NCOS Public Disclosure summary 2014 pg 8

CRE3 Greenhouse gas emissions intensity from buildings. Greenhouse gas emissions Intensity for Office portfolio: 84.4 kgCO2-e/sqm; Industrial portfolio: 5.2 kgCO2-e/sqm; Retail: 102.2 kgCO2-e/sqm; Total (Australia and New Zealand): 50.7 kgCO2-e/sqm. Environmental performance
CRE4 Greenhouse gas emissions intensity from new construction and redevelopment activity. All emissions associated with refurbishment activities have been included in the overall summary of greenhouse gas emissions performance. Emissions associated with developments are included only once Dexus obtains 'operational control' on project completion. Environmental performance
EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved.

Dexus is driving cost efficiencies and energy savings across its portfolios and within the Dexus tenancy. Dexus's sustainability initiatives, including IT and facilities management improvements, within the Sydney office achieved significant reductions in energy consumption from FY13 to FY14, and resulted in the tenancy being certified carbon neutral for a fourth successive year.

In FY13 Dexus set a 3-year target to reduce like-for-like energy consumption by 10% across its property portfolio which in turn will drive greenhouse gas emissions reductions in the order of 10%. Initiatives to reduce emissions include the completion of the 4.5 star NABERS Energy upgrade program across the Dexus office portfolio, ongoing targeted sustainability upgrade works across core and trading assets, and ongoing focus on efficient building operations incorporating improvements to management systems and processes.

Together these have contributed to reductions in energy use and Scope 1 & 2 greenhouse gas emissions of 8.4% and 10.2% respectively in FY14 against a FY12 baseline. Dexus continues to work towards meeting its 10% energy reduction target by FY15.

Dexus adopts renewable and low carbon energy generation technology where feasible and actively purchases renewable energy based products to reduce its carbon footprint. In FY14 the Group purchased 12,125MWh of emission-free GreenPower and generated 2,934MWh of electricity onsite from solar and cogeneration infrastructure. For FY14, this resulted in a total greenhouse gas emission abatement of 12,365 t.CO2-e, and reduced the Group's total emissions footprint by 7.2%.

Delivering committments Annual Review pg 25

Office Annual Review pg 39

Industrial Annual Review pg 43

Developments Annual Review pg 44-45

Third Party Funds Annual Review pg 52

DWPF Annual Review pg 61

Environmental performance

2014 NCOS public disclosure summary pgs 5-7

NABERS upgrade program case study

EN19 Emissions of ozone-depleting substances by weight.

Total tonnes of ozone depleting substances during FY14 were 0.1 tonnes CFC-11 equivalent.

Dexus does not produce CFCs, HCFCs, halon or methyl bromide. Minor amounts of gases are used in air conditioning units across properties under management. Ozone-depleting substances are being phased out as required.

EN20 NOx, SOx, and other significant air emissions by type and weight. Not material - Dexus has not reported NOx or SOx or any other air emissions as they are not material to Dexus's business. There are only minor emissions from the co-generation plants.
EN21 Total water discharge by quality and destination. Not material - All water from Dexus properties is discharged into the public sewerage or storm water drainage or recycled. Not material due to low volumes and toxicity.
EN22 Total weight of waste by type and disposal method.

Total waste to landfill for Australia and New Zealand for coverage stated below in FY14: 6,187 tonnes Total waste recycling for Australia and New Zealand for coverage stated below in FY14: 6,063 tonnes Diversion rate (% of total waste diverted from landfill) for Australia and New Zealand for coverage stated below in FY14: 49%

Waste data coverage comprises 90% by lettable area of all Office and Retail properties under Dexus operational control during FY14. For Industrial sites, tenants manage their varied waste streams directly, and hence Industrial sites are excluded from the coverage calculation.

Total amount of waste composed: 35.7 tonnes of organic waste (or 18.6% of all organic waste)

Total amount of waste incinerated: 156.3 tonnes of organic waste (or 81.4% of all organic waste), used at Earthpower facility. Note: The word incinerated is incorrect. EarthPower accepts organic waste and converts it to green energy and nutrient-rich fertiliser. The process is not incineration, the energy is produced through the burning of methane and other bio gasses that are produced by the bacteria that digest the organic waste. The digested organic component can then be processed into a fertiliser pellet. This is completely different from an incinerator that burns waste as a coal substitute.

Total amount of waste recovered for recycling: 6,063 tonnes (comprised of fully commingled materials, paper, cardboard, organics and secure paper)

There was no waste for reuse, deep well injection or on-site storage.

Percentage of waste by disposal method: Landfill 50.5%; diverted from landfill 49.5% (recovered for recycling 47.9%; composted 0.3%; use as fuel 1.3%).

Percentage of waste by significant waste type: rubbish 50.5%; commingled (full & partial) 9.8%; paper 18.2%; cardboard 5.6%; secure paper 1.0%; organics 1.6%; other 13.3%.

Environmental performance
EN23 Total number and volume of significant spills. There have been no significant spills from any Dexus facility this year.
EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally. There was no solid or liquid waste (deemed hazardous under the Basel Convention Annex) transported locally from one location for treatment.
EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organisation's discharges of water and runoff. Not applicable - Dexus has a project that has water bodies adjoining and within the site, however water run off and discharges from the site do not significantly affect the water bodies or related habitats could be significantly affected.

Land Degradation, Contamination and Remediation

CRE5 Land and other assets remediated and in need of remediation for the existing or intended land use according to applicable legal designations. Not material - At 30 June 2014 Dexus does not own or manage any sites where remediation has been undertaken or is required to be undertaken for its intended or existing land use.

Products and services

EN26 Initiatives to enhance efficiency and mitigate environmental impacts of products and services, and extent of impact mitigation.

Dexus operates under a stringent EMS certified to ISO 14001. Part of this commitment is continuous improvement. Dexus sets ongoing energy, water and carbon reduction targets, and has certified carbon neutral its corporate operations head office for FY11, FY12, FY13 and FY14. Dexus mitigates the impacts of products and services procured through its Sustainable Procurement Policy and the Supplier Code of Conduct which prefers products, services and materials demonstrating advanced sustainability criteria.

Delivering commitments Annual Review pgs 22-25

Environmental performance

Supplier code of conduct

Sustainable procurement policy

EN27 Percentage of products sold and their packaging materials that are reclaimed by category. Not applicable - Dexus does not provide the types of business products and services relevant to this indicator and therefore it has not been reported against

Compliance

EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations. Dexus did not receive any significant fines or non-monetary sanctions for non-compliance with environmental laws and regulations during FY14.

Transport

EN29 Significant environmental impacts of transporting products and other goods and materials used for the organisation's operations, and transporting members of the workforce.

In general, Dexus does not have operational control of transporting goods and materials used within property operations and the use of materials itself is no considered material.

Dexus partners with suppliers and contractors to influence the selection and use of products and materials including sourcing products locally, and advocating selection of environmentally friendly products. Within developments and refurbishments, Dexus works with contractors to influence the management of construction and demolition waste

Total Scope 3 greenhouse gas emissions for Australia and New Zealand for transportation of employees in FY14 is 1,355 t CO2-e, which forms part of the total Scope 3 emissions reported under EN17 (Air travel: 950.5 t CO2-e; Cars and Taxis: 58.1 t CO2-e; Employee commuting: 346.7 t CO2-e;)

2014 NCOS public disclosure summary pg 8

Overall

EN30 Total environmental protection expenditures and investments by type.

As part of the 4.5 star NABERS Energy upgrade program, $31million was invested in the DXS office portfolio from FY09 to FY12 to reduce energy, water and carbon emissions. Since then Dexus continues to target strategic capital works that focus beyond standard technologies within its Developments program.

Dexus takes a prudent approach environmental risk management and compliance with annual costs of circa $2.2m covering the national office, retail and industrial portfolios to maintain our national NABERS ratings, BEECs, ISO 14001 accreditation, CBD lighting assessments, insurance for environmental liability, EEO and NGERS compliance, climate change risk audits, resource consumption reporting environmental hazardous materials management and audits.

Costs associated with the treatment and disposal of waste are managed by third party suppliers as part of cleaning and waste management contracts and are not disclosed.

Developments Annual Review pgs 44-45

Trading Annual Review pgs 46-47

2013 Energy Efficiency Opportunities Report