FY15 PERFORMANCE AGAINST COMMITMENTS  

= Achieved , = Not achieved, = Underway

COMMITMENT

STATUS

FY15 ACHIEVEMENTS

Continue to expand waste reporting across the office and retail portfolios and target 65% diversion from landfill for the Group's office portfolio by the end of the three year program in FY16

Continued to expand and improve the accuracy of waste reporting across 94% of the Group's office and retail portfolios

Diverted 63% of waste from landfill for the Group's office portfolio, against the three year program target of 65% by FY16

Refer to Delivering FY15 Commitments and Case Studies

Continue to deliver energy savings across the Group's property portfolio in FY15, the final year of a three year program, to deliver a 10% reduction

Delivered absolute energy savings 10.4% across the Group's like-for-like property portfolio, exceeding the three year program target of a 10% reduction by FY15

Refer to Delivering FY15 Commitments

Implement new Environmental Reporting Systems across the Group's portfolio providing visibility over granular environmental data and streamlined data collection to enhance analysis of consumption trends

Implemented a new Environmental Reporting System

Streamlined data collection and payment processes to realise operating efficiencies

Refer to Delivering FY15 Commitments

Establish Regional Control Centres to centrally monitor and optimise heating, ventilation and air conditioning operations to reduce energy and maintenance costs

Established two Regional Control Centres across 15 Sydney and Brisbane properties to centrally monitor heating, ventilation and air conditioning

Refer to Office

Extend the minimum 4.5 star average NABERS Energy rating across the entire Dexus office portfolio, including newly acquired properties

Improved the average NABERS Energy rating across the Dexus office portfolio, including newly acquired properties to 4.7 stars

Refer to Office

Extend the minimum 3.5 star average NABERS Water rating across the entire Dexus office portfolio, including newly acquired properties

Improved the average NABERS Water rating across the Dexus office portfolio, including newly acquired properties to 3.8 stars

Refer to Office

Refer to Delivering FY15 Commitments and Office sections in the 2015 Dexus Annual Review.

DEFINITIONS

NABERS - National Australian Built Environment Rating System

GBCA - Green Building Council of Australia

Green Star - An environmental rating tool for commercial design and construction, which evaluates a building's impact against eight environmental impact categories

SIPs - Strategic Improvement Plans

Dexus, the Group - refers to the ASX listed entity and the Third Party Funds Management business

Dexus - refers to the portfolio of properties in ASX listed entity only

DWPF - Dexus Wholesale Property Fund

Third Party Funds or Third Party Funds Management business - refers to the Third Party Funds Management business including the Australian mandate, three capital partnerships and DWPF.

Dexus PROPERTY GROUP - ENVIRONMENTAL SUMMARY

Metric

FY081

FY11

FY12

FY13

FY14

FY15

Greenhouse gas emissions (tCO2-e) - Property portfolio & corporate tenancies

Scope 1

6,226

8,675

7,882

9,159

10,700

15,021

Scope 2

151,951

123,674

112,803

103,947

116,672

133,625

Subtotal Scope 1 & 2

158,177

132,349

120,686

113,107

127,373

148,646

Scope 3

26,213

24,940

26,193

24,612

29,664

29,680

Subtotal Scope 1, 2 & 3

184,389

157,289

146,879

137,718

157,036

178,326

Greenhouse gas emissions (tCO2-e) - Additional scope 3 emissions from corporate operations

Scope 3

-

1,127

1,316

998

1,361

1,530

Greenhouse gas emissions (tCO2-e) - Dexus total emissions

Total Scope 1, 2 & 3

184,389

158,416

148,195

138,716

158,397

179,855

Energy and water consumption

Total net energy consumption (GJ)

735,723

590,867

540,752

519,791

592,609

705,801

Water consumption (kL)

1,499,044

1,319,761

1,216,191

1,223,177

1,444,152

1,644,013

Waste and recycling

Waste to landfill (tonnes)

-

2,581

4,828

4,475

6,444

8,269

Recycling (tonnes)

-

1,646

3,781

4,210

6,279

7,472

Total waste (tonnes)

-

4,226

8,610

8,685

12,723

15,741

Waste data coverage across portfolio2

-

63%

75%

79%

92%

94%

1 FY08 represents the Group's base year.

2 Coverage by net lettable area across office and retail portfolio, excludes industrial properties as Dexus does not manage waste.

Energy, water and greenhouse emissions have increased over the past 12 months due to the growth of the portfolio and the additional resource consumption and emissions attributed to the first full year of management of the Dexus Office Partnership.

Since FY14, the Group's energy consumption has increased by 19.1%, Scope 1 and 2 emissions have increased by 16.7% and water consumption is up by 13.8%. Intensity figures are also marginally higher due to a reweighting of the portfolio towards office and retail properties that exhibit higher intensities than industrial properties.

Contrasting the absolute figures above, within each asset type Dexus has performed strongly delivering annual performance improvements on an intensity basis (incorporating recent acquisitions), and on an absolute like-for-like basis (for properties held since FY12).

Key FY15 environmental performance results for the Group include:

  • Achieving a 10.4% reduction in net energy consumption against the FY12 like-for-like baseline, exceeding the three-year 10% energy reduction target across the Group. This corresponds to a 15.4% reduction in Scope 1 & 2 greenhouse gas emissions
  • Expanding waste data capture to cover 94% of total office and retail lettable area, achieving a diversion rate of 63% across the Group's like-for-like office portfolio
  • Achieving a 4.7 star NABERS Energy rating across the Group's office portfolio, improving by 0.1 stars against FY14. The Group's office portfolio now includes 13 properties with 5.5 star NABERS Energy ratings representing 27% of total rated area. A further 18 properties achieved 5.0 stars NABERS Energy ratings and the Group's office portfolio now has 31 properties representing 57% of rated area that have achieved a NABERS Energy rating of 5.0 stars or higher
  • Transitioning to a new Environmental Reporting Platform. Historical data was migrated from several legacy systems to a new enterprise-wide platform to provide operational teams with enhanced access to data and a range of trending and analytical reports. The new system will also deliver ongoing cost savings and process efficiencies

In the following sections, data is presented for the Group portfolios and like-for-like portfolios to enable comparison of the pre-existing portfolio as well as the overall Group trends including acquisitions.

GROUP OFFICE PORTFOLIO - CONSUMPTION/EMISSIONS ON AN INTENSITY BASIS

Intensity metric

FY081

FY11

FY121

FY13

FY14

FY15

Base year1 to FY15

12 month change

Whole portfolio

Energy consumption (MJ/sqm)

597.7

481.0

407.4

402.2

385.5

360.8

-39.6%

-6.4%

Water consumption (L/sqm)

893.3

772.7

650.4

665.8

678.5

619.9

-30.6%

-8.6%

Scope 1 & 2 greenhouse gas emissions (kgCO2 - e/sqm)

130.9

109.9

93.5

88.8

84.5

78.3

-40.2%

-7.2%

Waste diversion from landfill (%)

-

48%

51%

57%

60%

56%

15.9%

-6.8%

Like-for-like portfolio2

Energy consumption (MJ/sqm)

632.3

504.4

414.9

388.2

371.1

357.5

-43.5%

-3.7%

Water consumption (L/sqm)

924.2

805.1

698.4

693.5

686.8

647.5

-29.9%

-5.7%

Scope 1 & 2 greenhouse gas emissions (kgCO2- e/sqm)

144.7

119.8

98.9

91.7

88.1

81.5

-43.6%

-7.4%

Waste diversion from landfill (%)

-

49%

53%

59%

66%

63%

27.7%

-4.9%

1 FY08 represents the Group's base year for energy, water and greenhouse gas emissions. FY12 represents the Group's base year for waste diversion from landfill.

2 Like-for-like portfolio comprises all properties under the Group's control between 1 July 2012 and 30 June 2015.

Commentary

Continued active management of the Group's office portfolio has contributed to ongoing reductions in resource consumption and greenhouse gas emissions. Key highlights for FY15 include:

  • Reducing energy intensity by 6.4% over the last 12 months and by 39.6% since FY08
  • Reducing greenhouse gas emissions intensity by 7.2% since FY14 and by 40.2% since FY08
  • Decreasing water consumption intensity by 8.6% on last year and by 30.6% since FY08
  • Expanding waste data capture to cover 96% of total lettable area, and achieving a diversion rate of 63% across the Group's like-for-like portfolio

The following charts highlight the Group's office portfolio's eight year performance trends on an intensity basis:

Commentary

Dexus continued to focus on operational performance to improve energy efficiency. This included the deployment of advanced analytics to identify further opportunities for reducing energy use while improving tenant conditions. Across the Group, energy intensity improved by 6.4% against FY14, which was enhanced in part by the inclusion of the highly efficient Dexus Office Partnership portfolio. The overall improvement also reflected a 3.7% improvement in like-for-like performance, which was achieved by implementing control upgrades and conducting retro-commissioning to improve mechanical operations across several properties including Southgate Complex in Melbourne, and Australia Square Tower and 39 Martin Place in Sydney.

Water intensity continued to improve due to ongoing operational management combined with bathroom facility upgrades however gains were offset by increased water usage arising from expanded end-of-trip facilities.

Dexus continued to expand the collection of waste and recycling data across the Group office portfolio, achieving 96% coverage by area in FY15. Dexus, together with its Sydney waste management services provider, deployed weight-scales in 19 office properties across Sydney. The scales enable cleaning staff to directly weigh waste rather than relying on me to weight conversion for waste collection figures, thereby providing robust, accurate waste and recycling figures and improving data collection efficiency.

The reduced diversion rates in FY15 against FY14 are primarily due to changes in waste services data providers and inability to obtain information for selected recycling streams.

NABERS ENERGY AVERAGE - GROUP OFFICE PORTFOLIO

 

Like-for-like basis

Absolute basis1

 

FY10

FY11

FY12

FY13

FY14

FY13

FY14

FY15

NABERS Energy average (by area) (inc GreenPower)2

Dexus

3.2

3.6

3.9

4.7

4.8

4.5

4.6

4.7

Dexus Office Partnership

-

-

-

-

-

-

-

4.8

Third Party Funds Management

3.3

3.9

4.0

4.1

4.5

4.1

4.5

4.7

DWPF

2.6

3.3

3.9

3.8

4.1

3.9

4.2

4.5

Dexus

3.3

3.7

3.9

4.5

4.7

4.4

4.6

4.7

NABERS Energy average (by area) (ex GreenPower)2

Dexus

2.8

3.0

3.5

4.2

4.3

4.3

4.4

4.4

Dexus Office Partnership

-

-

-

-

-

-

-

4.7

Third Party Funds Management

2.8

3.3

3.7

3.7

4.1

3.8

4.2

4.4

DWPF

2.0

2.9

3.6

3.4

3.7

3.5

4.0

4.1

Dexus

2.8

3.1

3.5

4.0

4.3

4.1

4.3

4.4

1 Dexus commenced reporting its NABERS portfolio on an absolute basis to incorporate all acquisitions including assets from the CPA transaction from FY14.

2 At 30 June 2015.

Commentary

On an absolute (or whole portfolio) basis, the average Group office NABERS Energy rating as at 30 June 2015 was 4.7 stars with GreenPower, an incremental improvement of 0.1 stars against FY14. The Group office NABERS Energy rating without GreenPower remained steady at 4.4 stars.

The Group's office portfolio now includes ten properties with 5.5 star NABERS Energy ratings, representing 27% of total rated area. A further 16 properties achieved 5.0 stars NABERS Energy ratings and the Group's office portfolio now has 31 properties representing 57% of rated area that have achieved a NABERS Energy rating of 5.0 stars or higher.

Highlights for the year include:

  • 11 Waymouth Street, Adelaide and 145 Ann Street, Brisbane join 123 Albert Street Brisbane, 30 The Bond Sydney, Australia Square Plaza and 1 Margaret Street, Sydney in achieving NABERS Energy ratings of 5.5 stars
  • 39 Martin Place, Sydney continued to improve performance achieving a 3.5 star NABERS Energy rating, an improvement of 1.0 star from 2.5 stars from acquisition, assisted by a building-wide lighting retrofit program and ongoing focus on maximising the efficient operation of the mechanical plant
  • 45 Clarence Street, Sydney improved its NABERS Energy rating by 0.5 stars to 5.5 stars as a result of active management which reduced energy use by 13% over the year

DWPF's weighted average NABERS Energy rating is 4.5 stars; an improvement of 0.3 stars from FY14. The uplift is due to improvements at 39 Martin Place Sydney, Gateway 1 Macquarie Street Sydney and 360 Collins Street, Melbourne as well as the sale of 40 Market Street Melbourne.

NABERS WATER AVERAGE - GROUP OFFICE PORTFOLIO

 

Like-for-like basis

Absolute basis1

 

FY10

FY11

FY12

FY13

FY14

FY13

FY14

FY15

NABERS Water average (by area)2

Dexus

2.6

3.1

3.3

3.5

3.5

3.2

3.5

3.8

Dexus Office Partnership

-

-

-

-

-

-

-

3.9

Third Party Funds Management

2.5

2.7

3.0

3.2

3.1

3.2

3.3

3.6

DWPF

2.0

1.9

3.0

3.0

2.6

2.9

3.0

3.2

Dexus

2.4

3.0

3.2

3.4

3.4

3.2

3.5

3.7

1 Dexus commenced reporting its NABERS portfolio on an absolute basis to incorporate all acquisitions including assets from the CPA transaction from FY14.

2 At 30 June 2015.

Commentary

On an absolute or whole portfolio basis, the average Group office NABERS Water rating as at 30 June 2015 was 3.7 stars. This represents an incremental improvement of 0.2 stars against FY14.

Several properties achieved improvements of 0.5 stars including:

  • 201 Elizabeth Street, Sydney
  • 309 Kent Street, Sydney
  • Australia Square Tower, Sydney
  • 1 Margaret Street, Sydney
  • Allara House, 48 Allara Street, Canberra
  • Customs House, 5 Constitution Avenue, Canberra
  • 11 Waymouth Street, Adelaide
  • 54-58 Mounts Bay Road, Perth

The NABERS Water rating for DWPF improved by 0.2 stars to 3.2 stars due to ratings uplifts at 39 Martin Place Sydney and Gateway 1 Macquarie Street, Sydney.

GROUP INDUSTRIAL PORTFOLIO - CONSUMPTION/EMISSIONS ON AN INTENSITY BASIS

Intensity metric

FY081

FY11

FY121

FY13

FY14

FY15

Base year1 to FY15

12 month change

Whole portfolio

Energy consumption (MJ/sqm)

32.2

25.0

24.4

21.5

20.7

18.7

-42.0%

-9.7%

Water consumption (L/sqm)

300.6

272.4

254.7

267.4

285.0

276.7

-7.9%

-2.9%

Scope 1 & 2 Greenhouse gas emissions (kgCO2- e/sqm)

8.1

6.4

6.1

5.2

4.9

4.3

-46.4%

-12.2%

Waste diversion from landfill (%)

-

-

-

-

-

10%

-

-

Like-for-like portfolio2

Energy consumption (MJ/sqm)

20.3

14.3

13.3

16.0

15.7

17.1

-15.8%

9.0%

Water consumption (L/sqm)

294.4

276.5

258.1

262.3

284.6

275.1

-6.6%

-3.3%

Scope 1 & 2 Greenhouse gas emissions (kgCO2- e/sqm)

5.1

3.7

3.5

4.0

3.8

4.0

-21.7%

5.2%

Waste diversion from landfill (%)

-

-

-

-

-

-

-

1 FY08 represents the Group's base year for energy, water and greenhouse gas emissions. FY12 represents the Group's base year for waste diversion from landfill.

2 Like-for-like portfolio comprises all properties under the Group's control between 1 July 2012 and 30 June 2015.

Dexus continued to deliver reductions in resource consumption across the Group's Industrial properties. Key highlights for FY15 include:

  • Reducing energy intensity by 9.7% over the last 12 months and by 42% since FY08
  • Reducing greenhouse gas emissions intensity by 12.2% since FY14 and by 46.4% since FY08
  • Decreasing water consumption intensity by 2.9% on last year and by 7.9% since FY08
  • Collecting data on waste and recycling across industrial properties for the first time

The following charts highlight the Group's Industrial portfolio's eight year performance trends on an intensity basis for energy and water consumption, greenhouse gas emissions and waste diversion from landfill.

GROUP RETAIL PORTFOLIO - CONSUMPTION/EMISSIONS ON AN INTENSITY BASIS

Intensity metric

FY081

FY11

FY121

FY13

FY14

FY15

Base year1 to FY15

12 month change

Whole portfolio

Energy consumption (MJ/sqm)

491.5

486.2

498.0

503.4

483.2

452.4

-8.0%

-6.4%

Water consumption (L/sqm)

1,273.6

1,237.5

1,229.9

1,346.4

1,364.3

1,272.4

-0.1%

-6.7%

Scope 1 & 2 greenhouse gas emissions (kgCO2- e/sqm)

94.0

98.2

97.7

100.4

92.8

82.2

-12.5%

-11.4%

Waste diversion from landfill (%)

-

23%

30%

31%

29%

31%

34.6%

9.7%

Like-for-like portfolio2

Energy consumption (MJ/sqm)

578.8

530.2

524.0

503.4

487.5

489.0

-15.5%

0.3%

Water consumption (L/sqm)

1,430.3

1,321.9

1,296.9

1,346.4

1,392.1

1,423.6

-0.5%

2.3%

Scope 1 & 2 greenhouse gas emissions (kgCO2- e/sqm)

118.4

113.4

108.8

100.4

95.5

92.9

-21.5%

-2.7%

Waste diversion from landfill (%)

-

23%

30%

31%

28%

28%

18.2%

-0.5%

1 FY08 represents the Group's base year for energy, water and greenhouse gas emissions. FY12 represents the Group's base year for waste diversion from landfill.

2 Like-for-like portfolio comprises all properties under the Group's control between 1 July 2012 and 30 June 2015.

Dexus's retail rortfolio has delivered incremental reductions in resource consumption and greenhouse gas emissions. Key highlights for FY15 include:

  • Reducing energy intensity by 6.4% over the last 12 months and by 8% since FY08
  • Reducing greenhouse gas emissions intensity by 11.4% since FY14 and by 12.5% since FY08
  • Decreasing water consumption intensity by 6.7% on last year, however it remains steady against FY08
  • Expanding waste data capture to cover 85% of total lettable area, and achieving a diversion rate of 28% across it's like-for-like portfolio

The following charts highlight the Group's retail portfolio's eight year performance trends on an intensity basis:

NABERS ENERGY AVERAGE - GROUP RETAIL PORTFOLIO

 

FY10

FY11

FY12

FY13

FY14

FY15

NABERS Energy average (by area)1

Third Party Funds Management

n/a

3.1

3.9

3.9

3.7

3.9

DWPF

n/a

2.0

2.5

2.5

3.5

3.9

1 At 30 June 2015.

NABERS WATER AVERAGE - GROUP RETAIL PORTFOLIO

 

FY10

FY11

FY12

FY13

FY14

FY15

NABERS Water average (by area)1

Third Party Funds Management

n/a

3.2

3.7

4.4

4.1

4.1

DWPF

n/a

3.5

4.0

4.0

4.2

4.1

1 At 30 June 2015.

Commentary

The retail portfolio continues its ongoing commitment to energy and water reduction targets through the NABERS rating tool and is seeking further reductions in energy and water usage via optimised operations following recent upgrade works. NABERS Energy performance results for FY15 include:

  • QV Melbourne achieved a 2 star NABERS Energy rating
  • Beenleigh Marketplace remained steady with 2.5 stars NABERS Energy and 4.5 stars NABERS Water ratings
  • Plumpton Marketplace retained its ratings of 3.5 stars for NABERS Energy and 3.0 stars for NABERS Water
  • Sturt Mall was rated by the previous owner and achieved a 6 star NABERS Energy rating incl GreenPower, 4.5 stars excluding GreenPower and 4 star NABERS Water rating
  • Deepwater Plaza achieved a 3.0 star NABERS Energy and 4 star NABERS Water ratings
  • Smithfield Centre retained its 3.5 star NABERS Energy rating and improved its NABERS Water rating 0.5 stars to achieve 5 stars

 

ACHIEVEMENT OF THE GROUP'S ENERGY REDUCTION COMMITMENT

Commentary

In FY12, Dexus committed to deliver a 10% energy saving over the next three years across its Group property portfolio.

Dexus achieved a 10.4% energy reduction by 30 June 2015, achieving the 10% target six months ahead of the target date.

The table below reports on performance against the three year target, which is reported in absolute terms on a like-for-like basis against the FY12 baseline.

ENERGY CONSUMPTION (GJ)

FY12

FY13

FY14

FY15

Change from FY12

12 month change

Office

311,939

291,866

279,078

269,608

-13.6%

-3.4%

Industrial

12,433

15,530

15,279

16,974

36.5%

11.1%

Retail

107,313

103,100

99,851

100,008

-6.8%

0.2%

Total

431,686

410,496

394,208

386,590

-10.4%

-1.9%

VOLUNTARY GREENHOUSE GAS ABATEMENT - GROUP PROPERTY PORTFOLIO

Commentary

Dexus continues its focus on reducing its carbon footprint with investments in renewable and low-carbon technologies and through the purchase of accredited, emission-free GreenPower.

In FY15, the Group generated 63MWh of electricity from solar photovoltaic (PV) and 2,061MWh from gas-powered cogeneration plants. The Group also sourced 11,432MWh of its purchased electricity from GreenPower.

From these activities the Group estimates that it has abated 10,461 tonnes of greenhouse gas emissions, which represents 5.5% of its total Scope 1, 2 and 3 emissions.

ELECTRICITY FROM RENEWABLE AND LOW CARBON SOURCES (MWh)

Energy consumption (MWh)

FY11

FY12

FY13

FY14

FY15

Volume of GreenPower procured/committed

13,000

13,000

12,808

12,125

11,432

Electricity generated from solar energy

-

13

62

69

63

Electricity generated from cogeneration

-

506

1,110

1,431

2,061

Total electricity from renewable and low carbon sources (MWh)

13,000

13,519

13,980

13,626

13,556

Greenhouse gas abatement from renewable and low carbon sources (t.CO2-e)

FY11

FY12

FY13

FY14

FY15

GreenPower purchases (Scope 2 only)

-

12,109

11,929

11,281

10,587

Electricity from solar energy (Scope 2 & 3)

-

14

67

73

62

Electricity from cogeneration (Scope 2 & 3) arising from:

-

-234

-706

-450

-188

Avoided grid-purchased electricity emissions (Scope 2 & 3)

-

516

1,110

1,374

1,937

Natural gas emissions for generation (Scope 2 & 3)

-

-750

-1,816

-1,824

-2,126

Total greenhouse gas abatement from use of electricity from renewable and low carbon sources (t.CO2-e)

-

11,890

11,289

10,904

10,461

% of Group emissions that have been abated

-

7.5%

7.6%

6.5%

5.5%

VOLUNTARY GREENHOUSE GAS ABATEMENT - CORPORATE OPERATIONS

Commentary

Dexus is a signatory to Australia's Carbon Neutral Program which is administered by the federal Department of the Environment. Each year the Group develops an emissions inventory in line with the program's National Carbon Offset Standard (NCOS) across its Corporate Operations.

Dexus was the first real estate investment trust in Australia to achieve a carbon neutral certification for its head office, which it has maintained since 2011. Over the last five years, Dexus has expanded its reporting boundary across its entire Corporate Operations, including:

  • Dexus office tenancies for Sydney, Brisbane and Melbourne, and proportion of base building services attributable to those tenancies
  • Dexus Place, Level 5, 1 Margaret Street, Sydney
  • Corporate travel and employee commuting for all staff employed directly by Dexus nationally

The Group has offset direct emissions from refrigeration and electricity usage and indirect emissions generated by waste to landfill, paper use, airline travel and car mileage for national employees, taxi travel, hire cars and employee commuting.

Metric

FY11

FY12

FY131

FY142

FY15³

Greenhouse gas emissions (tCO2-e)

Scope 1

2

2

2

1

3

Scope 2

403

332

270

233

318

Scope 3 comprising the following:

1,841

1,970

1,684

1,762

2,020

- Tenancies and base building energy/refrigerants

604

587

443

348

471

- Office paper use and waste

35

10

221

58

27

- Corporate travel

1,202

1,373

1,021

1,009

1,102

- Employee commuting

-

-

-

347

420

Avoided emissions from renewable energy purchased by Dexus

-81

-66

-28

-

-

Total emissions (scopes 1, 2 & 3)

2,165

2,239

1,928

1,995

2,340

Voluntary carbon abatement (tCO2-e)

Carbon offsets purchased and retired by Dexus

2,200

2,300

2,000

2,200

2,700

1 2013: Boundary expanded to include Melbourne Office.

2 2014: Employee commuting included.

3 2015: Boundary expanded to include Brisbane Office and Dexus Place.

STRATEGIC IMPROVEMENT PLANS

FY10

FY11

FY12

FY13

FY14

FY15

Cumulative number of SIPs developed

Office and Industrial

19

30

27

32

33

36

Retail

n/a

5

5

5

5

5

Cumulative number of SIPs implemented

Office and Industrial

0

6

17

20

21

25

Retail

n/a

n/a

n/a

n/a

3

4

Commentary

In FY15 Dexus continued to identify and implement opportunities to improve energy and water consumption, successfully completing four Strategic Improvement Plans (SIPs) and developing a further three. Dexus conducts periodic engineering assessments of its properties, and develops and maintains SIPs for properties that are targeted for strategic improvement. Dexus collaborates with third party property managers to implement projects and measure improvements in performance.

Up until its repeal in September 2014, Dexus was obligated under the federal government's Energy Efficiency Opportunities (EEO) program and reported publicly each year on progress achieved via SIP implementation. Dexus achieved a 10.4% reduction in like-for-like energy use in FY15 against its FY12 baseline, which highlights the effectiveness of Dexus's SIP program. Dexus continues embrace the aims of the EEO program, focusing on identifying and implementing energy efficiency opportunities to improve operational efficiency and Dexus has set new five year performance targets to drive ongoing activity. Dexus's FY16 environmental commitments are to:

  • Deliver 1,000,000 square metres of office space rated at least 5 Star NABERS Energy rating and 1,000,000 square metres rated at least 4 star NABERS Water rating by 2020
  • Reduce energy consumption and emissions across the Group by a further 10% by 2020 using the FY15 baseline including exploring opportunities for renewables

ENERGY SAVINGS CERTIFICATE SCHEME

FY10

FY11

FY12

FY13

FY14

FY15

ESCs created1

0

0

8,608

17,004

42,814

22,301

ESCs traded1

0

0

0

0

32,446

58,093

  • Includes 25,389 ESCs transferred to Dexus for properties acquired within the Dexus Office Partnership in April 2014.

Dexus participates in the NSW Energy Savings Scheme, and generates Energy Savings Certificates (ESCs) based on demonstration of electricity reductions due to energy efficiency projects. These certificates are traded to realise extra funds for repaying projection implementation capital costs and for use in further building works. Each ESC is equivalent to 1 tonne of carbon dioxide equivalent (tCO2-e).

RESOURCE CONSUMPTION - METHODOLOGY

The resource consumption data is derived from office, industrial and retail properties under the operational control of Dexus for part or all of the 12 months ending 30 June 2015 with the inclusion of Dexus Head Office.

Dexus has applied the principles contained within the National Greenhouse and Energy Reporting Act 2007 and its associated guidelines to determine the operational control of its properties across Australia and New Zealand. Dexus also included water usage from 11 current and five previously managed Australian industrial properties where water is purchased by Dexus and consumed by tenants and Dexus for property maintenance e.g. landscaping.

The following joint venture partner controlled properties and those under development are omitted where Dexus does not maintain operational control:

  • Westfield Miranda, Miranda, NSW
  • Westfield Plenty Valley, South Morang, VIC
  • Westfield North Lakes, Mango Hill, QLD
  • Westfield West Lakes Shopping Centre, West Lakes, SA
  • Westfield Hurstville, Hurstville, NSW
  • Westfield Mount Druitt, Mt Druitt, NSW
  • Knox City Shopping Centre, Wantirna South, VIC
  • 5 Martin Place, Sydney, NSW
  • 480 Queen Street, Brisbane, QLD
  • 324 Queen Street, Brisbane, QLD
  • Kings Square, Wellington Street, Perth, WA

Refer to the Dexus 2015 Assurance Criteria for further details including the list of consumption and emission sources, and references for factors that have been applied. The 2015 Assurance Criteria can be found at the CR&S library within the Dexus CR&S website.

Like-for-like data has been based on a portfolio whereby operational control and data for energy and water was available for the full 36 month period in FY13, FY14 and FY15.

Reporting against Dexus's 10% energy reduction target is based on the like-for-like data portfolio whereby operational control and data for energy and water was available for the full 36 month period across FY12, FY13 and FY14.

Dexus has reviewed its environmental dataset to fully align with NGER by adding minor source items and confirming calculation methods and factors. Non-material historical figures have been applied to all years since the 2008 base year and have been restated for consistency. Prior years' data has been updated to reflect current information where applicable resulting in minor restatements. Repetition only occurs when there is an overlap of reporting periods. There may be small discrepancies in the totals in some tables due to rounding.

For further information refer to Dexus's Environment Disclosures of Management Approach (DMA).

APPENDIX A - ENERGY, WATER AND GREENHOUSE GAS EMISSIONS METRICS

ENERGY CONSUMPTION AND PRODUCTION BY SOURCE

FY081

FY11

FY12

FY13

FY14

FY15

Energy consumption (GJ)

Diesel

957

5,636

2,242

4,456

5,285

3,117

Electricity

614,987

489,187

445,639

407,419

465,899

533,367

Natural Gas

119,779

96,044

92,823

107,693

121,177

169,091

Solar Energy

-

-

48

224

249

226

Electricity consumed from on-site thermal and solar generation

-

-

1,869

4,221

5,402

7,646

Total energy consumption

735,723

590,867

542,620

524,012

598,011

713,447

Energy production (GJ)

Electricity produced from thermal and solar generation for on-site use

-

-

1,869

4,221

5,402

7,646

Electricity generated and exported off site

-

-

0

0

0

0

Total energy production

-

-

1,869

4,221

5,402

7,646

Net energy consumption (GJ)

Total net energy consumption

735,723

590,867

540,752

519,791

592,609

705,801

1FY08 represents the Group's base year.

The following highlights the net energy consumption for FY15 by energy source.

Net energy consumption comprises energy that is consumed within properties as measured at the property boundary and excludes energy produced or consumed within a property through energy transformations such as cogeneration.

Net energy consumption excludes energy that is purchased by Dexus and on-sold to tenants.

Dexus does not consume or export heating or cooling from/to district thermal sources.

WATER CONSUMPTION BY SOURCE

FY081

FY11

FY12

FY13

FY14

FY15

Office

839,884

698,691

622,802

648,487

807,704

934,289

Industrial

288,931

297,153

293,555

298,940

328,598

317,196

Retail

370,229

323,917

299,835

275,750

307,850

392,528

Total water consumption (potable water) (kL)

1,499,044

1,319,761

1,216,191

1,223,177

1,444,152

1,644,013

Estimated recycled water recovery at 145 Ann Street, Brisbane

-

-

-

1,962

3,869

3,869

Total water consumption including recycled water (kL)

1,499,044

1,319,761

1,216,191

1,225,139

1,448,021

1,647,882

1 FY08 represents the Group's base year.

Reported water consumption comprises potable water purchased from local water utilities, plus on-site water treatment to recycle water at 145 Ann Street, Brisbane, in which grey water is collected from the building's showers and hand basins and recycled in a treatment plant for reuse in within the building and for irrigation.

WASTE AND RECYCLING FROM PROPERTY OPERATIONS BY STREAM

Tonnes

FY15

Disposal method

Cardboard

2,961

Sent to EPA licensed receiving facilities for recycling into

raw materials for new products or packaging.

Paper

1,813

Secure paper

428

Comingle

1,807

Fully comingle

277

Organics and used cooking oil

187

Sent to EarthPower or similar receiving facility for conversion to green energy and nutrient-rich fertiliser. Energy is produced through the burning of 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.

Waste to landfill

8,268

Sent directly to landfill or to receiving stations that may process the waste within a bio-reactor to produce energy.

Total waste and recycling (tonnes)

15,741

In FY15 there were no significant spills or waste or hazardous materials. There was no solid or liquid waste (deemed hazardous under the Basel Convention Annex) transported locally from one location for treatment.

EMISSIONS OF OZONE DEPLETING SUBSTANCES

FY08

FY11

FY12

FY13

FY14

FY15

Emissions of ozone depleting substances (t.CFC-11e)

n/a

n/a

n/a

n/a

0.1

0.9

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.

GREENHOUSE GAS EMISSIONS BY GAS TYPE

FY08

FY11

FY12

FY13

FY14

FY15

Direct greenhouse gas emissions (tCO2-e)

Carbon Dioxide (CO2)

6,207

5,311

4,908

5,822

6,577

8,873

Methane (CH4)

12

10

9

11

13

17

Nitrous Oxide (N2O)

7

5

3

4

5

6

Hydrofluorocarbons (HFCs)

-

3,349

2,961

3,322

4,106

6,125

Sulphur Hexafluoride (SF6)

-

-

-

-

-

-

Perfluorocarbon (PFC)

-

-

-

-

-

-

Scope 1 GHG emissions (tCO2-e)

6,226

8,675

7,882

9,159

10,700

15,021

Indirect greenhouse gas emissions (tCO2-e)

Scope 2 GHG emissions (tCO2-e)

151,951

123,674

112,803

103,947

116,672

133,625

Scope 3 GHG emissions (tCO2-e)

26,213

26,067

27,510

25,610

31,025

31,210

Dexus has determined its emissions resulting from the common greenhouse gases reported under the Kyoto Protocol, being carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6).

Emissions are aggregated into carbon dioxide equivalents (CO2-e) using factors called global warming potentials (GWPs).

GREENHOUSE GAS EMISSIONS BY SOURCE

FY081

FY11

FY12

FY13

FY14

FY15

Scope 1 & 2 greenhouse gas emissions (tCO2-e)

Diesel

67

392

156

310

374

217

Natural Gas

6,159

4,934

4,765

5,528

6,220

8,680

Refrigerants

-

3,349

2,961

3,322

4,106

6,125

Electricity

151,951

123,674

112,803

103,947

116,672

133,625

Scope 1 & 2 GHG emissions (tCO2-e)

158,177

132,349

120,686

113,107

127,373

148,646

Scope 3 greenhouse gas emissions (tCO2-e)

Energy transmission and distribution losses

26,213

22,101

20,882

19,689

22,575

20,584

Waste to landfill

-

2,839

5,311

4,922

7,088

9,096

Corporate travel

-

1,127

1,316

998

1,361

1,530

Scope 3 GHG emissions (tCO2-e)

26,213

26,067

27,510

25,610

31,025

31,210

1 FY08 represents the Group's base year

The following highlights the total Scope 1, 2 and 3 greenhouse gas emissions for FY15 by emissions source.

APPENDIX B - ENVIRONMENTAL DATASETS FOR LISTED, UNLISTED AND DWPF EQUITY BOUNDARIES

ENVIRONMENTAL SUMMARY - Dexus

Metric

FY081

FY11

FY12

FY13

FY14

FY15

Greenhouse gas emissions (tCO2-e) - Property portfolio

Scope 1

4,335

5,376

5,234

6,173

6,830

8,457

Scope 2

78,702

64,487

59,409

55,899

59,362

64,582

Total Scope 1 & 2

83,037

69,864

64,643

62,072

66,193

73,039

Scope 3

13,815

12,452

12,496

11,906

14,378

13,609

Total Scope 1, 2 & 3

96,853

82,315

77,139

73,979

80,570

86,648

Energy and water consumption

Total net energy consumption (GJ)

390,649

323,015

300,244

305,123

328,177

366,165

Water consumption (kL)

737,147

682,900

647,662

666,376

762,003

820,679

Waste and recycling

Waste to landfill (tonnes)

-

730

1,513

1,350

2,756

3,323

Recycling (tonnes)

-

755

1,697

1,999

3,066

3,361

Total waste (tonnes)

-

1,485

3,209

3,348

5,822

6,684

Waste data coverage across portfolio

-

72%

74%

73%

90%

95%

Energy productivity

Total operating segment revenue ($m)

702.2

684.7

764.4

683.7

824.9

1,056.4

Energy productivity

($ Segment Revenue / Net energy Consumed (GJ))

1,797.5

2,119.6

2,546.1

2,240.7

2,513.6

2,885.0

1 FY08 represents the Group's base year.

ENVIRONMENTAL SUMMARY - THIRD PARTY FUNDS MANAGEMENT

Metric

FY081

FY11

FY12

FY13

FY14

FY15

Greenhouse gas emissions (tCO2-e) - Property portfolio

Scope 1

908

1,898

1,793

2,015

2,616

4,429

Scope 2

42,298

34,934

34,283

33,148

36,938

48,543

Total Scope 1 & 2

43,205

36,832

36,077

35,199

39,554

52,972

Scope 3

6,776

7,654

9,276

8,855

9,856

11,637

Total Scope 1, 2 & 3

49,981

44,486

45,352

44,054

49,410

64,609

Energy and water consumption

Total net energy consumption (GJ)

178,648

148,252

146,897

144,694

167,655

232,157

Water consumption (kL)

458,758

416,015

415,017

440,029

508,153

635,090

Waste and recycling

Waste to landfill (tonnes)

-

1,617

2,872

2,646

2,822

3,804

Recycling (tonnes)

-

644

1,504

1,503

2,040

2,778

Total waste (tonnes)

-

2,260

4,376

4,149

4,861

6,582

Waste data coverage across portfolio

-

67%

88%

84%

91%

91%

1 FY08 represents the Group's base year.

ENVIRONMENTAL SUMMARY - Dexus WHOLESALE PROPERTY FUND

Metric

FY081

FY11

FY12

FY13

FY14

FY15

Greenhouse gas emissions (tCO2-e) - Property portfolio

Scope 1

624

1,091

1,166

1,479

1,597

1,729

Scope 2

20,901

15,379

17,940

20,185

22,046

23,465

Total Scope 1 & 2

21,526

16,469

19,106

21,664

23,644

25,194

Scope 3

3,118

3,198

4,144

4,471

4,953

5,179

Total Scope 1, 2 & 3

24,643

19,667

23,250

26,135

28,597

30,373

Energy and water consumption

Total net energy consumption (GJ)

86,602

65,513

77,221

89,320

98,298

104,862

Water consumption (kL)

217,760

204,619

234,406

264,772

291,866

325,642

Waste and recycling

Waste to landfill (tonnes)

-

718

1,068

1,006

1,074

1,493

Recycling (tonnes)

-

321

573

623

838

1,009

Total waste (tonnes)

-

1,040

1,641

1,629

1,912

2,502

Waste data coverage across portfolio

-

87%

81%

69%

85%

85%

1 FY08 represents the Group's base year.

APPENDIX C - BUILDING NABERS RATINGS

OFFICE PORTFOLIO NABERS RATINGS AT 30 JUNE 2015

Dexus properties

NABERS Energy at 30 June 2015

NABERS Water at 30 June 2015

With GreenPower

Without GreenPower

Garema Court, 140-180 City Walk, Canberra

5

5

5.5

11 Talavera Road, Macquarie Park

5

4.5

4

Victoria Cross, 60 Miller Street, North Sydney

5

5

4

130 George Street, Parramatta

5

5

4

30 The Bond, 30 Hickson Road, Sydney

5.5

5.5

3.5

383 Kent Street, Sydney

4.5

4

4

44 Market Street, Sydney

5

4.5

4

45 Clarence Street, Sydney

5.5

5

3.5

1 Margaret Street, Sydney

5.5

5

3

123 Albert Street, Brisbane

5.5

5.5

4.5

8 Nicholson Street, Melbourne

3.5

2.5

3.5

Flinders Gate, 172 Flinders Street, Melbourne

3.5

3

3.5

Flinders Gate, 189 Flinders Lane, Melbourne

4

3

2

Southgate - HWT Tower, 40 City Road, Southbank

4.5

4

4

Southgate - IBM Centre, 60 City Road, Southbank

4.5

4

2.5

Woodside Plaza, 240 St Georges Terrace, Perth

5

4.5

3

AXXESS Corporate Park, 315 Ferntree Gully Rd Mt Waverley

3

3

5.5

AXXESS Corporate Park, 321 Ferntree Gully Rd Mt Waverley

1

1

5

Third Party Funds Management properties

NABERS Energy at 30 June 2015

NABERS Water at 30 June 2015

With GreenPower

Without GreenPower

Gateway, 1 Macquarie Place, Sydney

5.5

5

3.5

324 Queen Street, Brisbane

4.5

2.5

3.5

360 Collins Street, Melbourne

3.5

3

2

452 Flinders Street, Melbourne

4.5

4

3.5

AM60, 42-60 Albert Street, Brisbane

5

5

-

1 Innovation Road, Macquarie Park

5

4.5

4

141 Walker Street, North Sydney

5.5

5

4

83 Clarence Street, Sydney

5.5

4.5

4

Co-owned properties

NABERS Energy at 30 June 2015

NABERS Water at 30 June 2015

With GreenPower

Without GreenPower

The Zenith, 821 Pacific Highway, Chatswood

5

4.5

3.5

1 Bligh Street, Sydney

5

5

4.5

201 Elizabeth Street, Sydney

4.5

3.5

3.5

309 Kent Street, Sydney

5

5

4

321 Kent Street, Sydney

5

5

3.5

39 Martin Place, Sydney

3.5

3.5

3

Australia Square (Tower), 264 George Street, Sydney

4.5

4

3.5

Australia Square (Plaza), 87 Pitt Street, Sydney

5.5

5.5

4

Governor Phillip Tower, 1 Farrer Place, Sydney

4

3

3.5

Governor Macquarie Tower, 1 Farrer Place, Sydney

4.5

3.5

3.5

Grosvenor Place, 225 George Street, Sydney

4.5

4.5

4

Blue Tower, 12 Creek Street, Brisbane

3

3

4

Allara House, 48 Allara Street, Canberra

4.5

4.5

4.5

Customs House, 5 Constitution Avenue, Canberra

4.5

4.5

4

Nara House, 1 Constitution Avenue, Canberra

4.5

4.5

3.5

2 & 4 Dawn Fraser Avenue, Sydney Olympic Park

5

5

5.5

14-18 Lee Street, Haymarket

5

5

4.5

36-46 George Street, Burwood

5

5

4

60 Castlereagh Street, Sydney

5

4.5

3

101 George Street, Parramatta

5.5

5

4

150 George Street, Parramatta

5.5

5

3.5

175 Pitt Street, Sydney

5.5

5.5

4.5

201 Miller Street, North Sydney

5

5

4

56 Pitt Street, Sydney

4.5

4.5

4

10 Eagle Street, Brisbane

4.5

4.5

4

145 Ann Street, Brisbane

5.5

5.5

-

11 Waymouth Street, Adelaide

5.5

5.5

4.5

108 North Terrace, Adelaide

EXEMPT

EXEMPT

EXEMPT

180 Lonsdale St, Melbourne

4

4

4

222 Lonsdale Street, Melbourne

4

4

4.5

385 Bourke Street, Melbourne

3.5

3.5

2.5

NRMA House, 46 Colin Street, West Perth

4

3.5

-

Alluvion, 54-58 Mounts Bay Road, Perth

5

5

4.5

RETAIL PORTFOLIO NABERS RATINGS AT 30 JUNE 2015

Co-owned properties

NABERS Energy at 30 June 2015

NABERS Water at 30 June 2015

With GreenPower

Without GreenPower

QV, Melbourne

2

2

-

Third Party Funds Management properties

NABERS Energy at 30 June 2015

NABERS Water at 30 June 2015

With GreenPower

Without GreenPower

Tweed City, Tweed

4

4

4

Smithfield Centre, Smithfield

3.5

3.5

5

Capalaba Central, Capalaba

4.5

4.5

4

Plumpton Marketplace, Plumpton

3.5

3.5

3

Beenleigh Marketplace

2.5

2.5

4.5

Deepwater Plaza

3

3

4

Sturt Mall

6

4.5

4

Willows Shopping Centre

4

4

4