Optimising the environmental performance and resilience of our buildings

Enriching our environment

As Australia continues its search for secure, affordable, and environmentally conscious energy, we are transitioning to a low carbon future.

This year we made progress towards our 2020 environmental targets, and improved engagement across the business to further integrate resource efficiency considerations into strategic decisions.

FY17 was a significant year with regards to waste and recycling, including the implementation of key initiatives such as the Better Buildings Partnership’s (BBP) operational waste management guidelines, and engaging with customers to improve waste recycling.

We also made positive steps to improve resource recovery rates from vacant tenancy de-fits in line with our 2020 commitment. We completed several trials and partnered with customers and community groups to recycle office furniture and carpet.

We installed cloud-based building analytics platforms as part of our ‘virtual engineer’ program to optimise energy and water performance, and initial results confirm our investment decision. To date, we have rolled out the virtual engineering program across 44 office properties, centralising 240,000 data points into a single platform.

Dexus continues to be recognised for environmental performance by CDP, which ranks companies globally on their strategies and performance for managing greenhouse gas emissions and climate change. Dexus was included on the CDP Climate Change ‘A List’ for the fourth consecutive year, and was recognised as one of the top 9% of respondents.

We maintained our commitment to Australia’s Carbon Neutral Program by certifying our corporate operations carbon neutral for the seventh straight year.

We also collaborated through the Property Council of Australia to shape policy, aiming to drive efficiency and guide an orderly transition to more responsible energy sources.

We have commenced planning the next goals beyond our 2020 targets to develop a net-zero emissions pathway.

Delivering FY17 enriched environment commitments  

= Achieved , = Not achieved, = Underway

Commitment

Status

FY17 achievements

Deliver 1,000,000sqm of office property to a minimum 5 Star NABERS Energy rating and 4 star NABERS Water rating by 2020

On track with over 600,000sqm at 5 star NABERS Energy rating and 4 star NABERS Water rating at 30 June 2017
Reduce energy consumption and emissions across the Group by a further 10% by 2020 using the FY15 baseline including exploring opportunities for renewables Dexus made progress towards its 2020 target achieving a 4.9% reduction in energy consumption and a 7.1% reduction in Scope 1 and Scope 2 greenhouse gas emissions against FY15 like-for-like baseline
Consistently demonstrate a resource recovery rate of 80% from de-fitting vacant space by 2020, actively identifying charities and markets for re-use and increasing waste diversion from landfill Adopted the Better Building Partnerships strip-out waste guidelines to minimise fit-out waste to landfill with eight de-fit projects in New South Wales and Queensland diverting all the furniture and computer appliances bound for landfill and donated them to charity and aid organisation. Local donations have also occurred
Expand the “Virtual Engineer” program by applying 24/7 computer analytics to predict and react to Heating Ventilation and Air Conditioning (HVAC) events in real time             44 sites have been included in the central platform with implementation of analytics and/or smart metering up to June 17
Review design briefs across all asset classes to develop an in-house suite of best practice sustainable development practices Design briefs reviewed and updated across the Office and Industrial portfolios to include best practice sustainable design focusing on environmental performance and wellbeing

Climate and energy

2017 saw the national climate change and energy debate take another shift with the Finkel Review of Australia’s energy supply in response to recent supply security issues and sustained increases in electricity and natural gas prices.

During the year, we renegotiated our near term electricity contract to secure forward supply. Dexus locked in energy rates prior to the 2016/17 summer, avoiding the highly volatile peak electricity prices seen thus far in 2017. However, we recognise that prices are unlikely to return to prior levels in the medium term.

We support Australia’s decision to ratify the Global Climate Agreement that was signed in Paris at the Marrakech Climate Change Conference, and await clearer national direction regarding energy and climate change domestic policies.

Despite uncertainty at a federal level, state governments and cities are leading the way, setting bold visions for a low carbon future consistent with current climate science.

In March, Cyclone Debbie inundated Australia’s east coast with rain, threatening to impact Dexus retail centres at Beenleigh Marketplace and Tweed City in Tweed Heads. Although our centres were not materially affected, storms such as this are forecast to increase in frequency in a climate change affected world.

New Toshiba development - investing for the future

When Toshiba Australia made the decision to move to a new national distribution centre with office facilities, it knew the premises had to stand out from the crowd, and partnered with Dexus to develop a state of the art industrial facility at Quarry at Greystanes.

In developing its new facility, Toshiba’s goal was to outperform its corporate peers on measures of sustainability and technological innovation, while building a facility that would make it attractive to staff.

The facility was developed in a short time frame of just over 12 months, with Dexus working with Toshiba Australia to simplify the process while delivering the desired product.

The facility’s design incorporates environmental features aimed to create a 5 Star Green Star building, technological innovation to improve operational efficiency and staff amenity that supports the wellbeing of the workforce.

Decarbonising our energy supply

Recognising our need to adapt to a low carbon economy, our focus on investment in renewable energy continues to grow. We are looking beyond our 2020 targets to identify pathways towards net-zero emissions.

We are seeing increasing interest from our customers to partner on alternative energy to hedge electricity price risk and take action on reducing carbon emissions.

In FY17 we partnered with Toshiba to install solar photovoltaics (PV) for their new industrial development at Greystanes. Together with other sustainability inclusions, the development achieved a 5 star Green Star As Built – Industrial v1 rating.

We are assessing the feasibility of on-site electricity generation at a number of industrial and managed retail centres to fully quantify the financial sensitivities and identify the optimal implementation approach to partnering with technology providers and customers.

In addition to onsite generation, we purchased accredited, emission-free GreenPower to reduce our carbon footprint. In FY17, the group generated 274MWh of electricity from solar PV and 1,616 MWh from gas-powered cogeneration plants. We also sourced 2,143 MWh of the group’s purchased electricity from GreenPower.

From these activities we have abated an estimated 2,805 tonnes of greenhouse gas emissions, which represents 1.5% of total Scope 1, 2 and 3 emissions across the group portfolio.

Optimising performance at 1 Farrer Place

1 Farrer Place, Sydney recently achieved a 4.0 star NABERS Energy performance rating.

This is a whole star improvement from the previous year's rating that recognises the full impact of the upgrade works carried out on the air conditioning system and building management control system (BMCS).

The energy, emissions and cost benefits are coming to fruition - and with the added benefit of the building operation system analytics platform - 1 Farrer Place is destined to become one of Dexus's most efficient properties.

Additionally, the 1 Farrer Place team are working on improving their recycling infrastructure, doing their bit to divert waste from landfill.

An example of this is the recent purchase of Method Recycling bins which they are in the process of implementing throughout the two towers, driving a collective effort towards achieving sustainability goals.

A set of three bins - Mixed Recycling, Paper and Landfill - is being supplied to each of their 80+ tenants. The feedback from the tenants that have already received the bins has been extremely positive.

Optimising resource efficiency

Our 2020 environmental targets drive Dexus daily to optimise our resource use.

As at June 2017 like-for-like energy consumption reduced by 4.9%. Emissions reduced by 7.1% against the baseline year. With these results, we are on track to meet our group 10% energy and emission reduction targets.

Energy and emissions intensity improved across the group’s office portfolio due to:

  1. The installation of cloud-based building analytics platforms was completed as part of our ‘virtual engineer’ program. FY17 was the first full year of commissioning with ongoing improvements in issue identification and implementation workflow to rectify them. Dexus will continue to add properties to the platform in FY18
  2. Progress or completion of strategic improvement plans comprising energy and water efficiency projects such as chiller upgrades and lighting replacements
  3. A milder Autumn, with reduced heat loads saw energy use drop for most Sydney and Brisbane properties
 

A standout performer was 1 Farrer Place, Sydney which comprises the Premium grade Governor Phillip and Governor Macquarie Towers.

Energy consumption reduced by over 7,000 GJ or 17% as the benefits of a long term strategic improvement plan were realised, with further reductions targeted.

Water intensity has increased across the group’s office portfolio by 2.2% against the prior year, yet remains unchanged across like-for-like properties.

With group average water intensity of 668 litres per square metre, the Dexus portfolio has met the BBP’s 2030 target to achieve 700 litres per square metre across Sydney office properties.

The introduction of analytics has increased the detail and frequency by which we monitor water, and has identified water leaks that could not be detected easily using prior methods.

Across our managed retail centres, energy and emissions have increased over the last two years in line with portfolio growth including a higher proportion of CBD and city retail properties with their higher energy demand.

In centres across the country, older inefficient lighting is being progressively upgraded to the latest LED technology. We are reviewing feasibility for on-site renewables to expand our solar energy generation beyond our existing installation at Deepwater Plaza.

Industrial energy and emissions intensity has reduced significantly since 2008 due to:

  1. Retrofitting industrial lighting systems to replace inefficient high bays with LED fixtures, including successful projects at Regents Park, 4 Inglis Road Ingleburn and Military Road Matraville. In addition to energy savings, we have generated Energy Savings Certificates that improve the payback further
  2. Energy efficiency incorporated into design of new industrial properties at Quarry in Sydney and Laverton North in Melbourne
  3. Divestment of industrial properties with high energy intensity at Rosebery in Sydney and Donkin Street in Brisbane

Strategic improvement plans

We continued to identify and implement opportunities to improve energy and water consumption, capturing these within our Strategic Improvement Plans (SIPs).

In July 2016 Dexus and CBRE completed Level 1 Energy Audits and these featured in our annual asset planning for FY18, as we prioritise capital and operating expenditure to optimise performance our 2020 NABERS portfolio rating and energy/emissions reduction targets.

We also saw further benefits arising from completed strategic improvement plans. At 12 Creek Street in Brisbane, we progressed a multi-year strategic improvement plan to retrofit controls and variable air volume (VAV) boxes across each floor.

The property’s NABERS rating continues to improve, increasing by a whole star since 2012, and we are forecasting further gains.

In conjunction with the expansion of Willows Shopping Centre, we adopted a holistic view to reimagine the central cooling plant, installing a central chilled water system. We worked with anchor tenants to connect them to the system, improving system efficiency.

Waste management

In FY17 we commenced implementing recommendations from the BBP operational waste management guidelines. This follows our collaboration with other property owners and the BBP to develop the best practice guidelines.

We continued our push with waste contractors to improve the coverage and accuracy of our waste and recycling data, expanding use of direct weight based measurement using scales, and trialling bar coded bin tracking. In FY17 we recorded waste and recycling across 98% of our office and retail space.

Across several NSW offices, we continued our engagement with customers on their waste practices via the NSW Environment Protection Authority’s (EPA) ‘Bin Trim’ program. We also accessed NSW EPA funding to assist with introducing waste segregation within several tenancies.

We partnered with MRI and other partners to establish regular electronic waste collection, providing customers with a convenient value added service. In FY17 we diverted 44 tonnes of e-waste from landfill.

During the year we established an office de-fit program in response to our commitment to achieve 80% diversion from landfill for office tenancy de-fit projects.

We continue to develop our capability in this area, improving our project management systems, capturing data for de-fit materials inventories, and developing downstream materials receiving networks.

In a key step this year, we now include de-fit recycling requirements within agreements with demolition contractors. We are also moving towards single sourcing arrangements for precincts which will strengthen working relationships in this area.

Reducing waste from landfill

Office de-fits and electronic waste predominantly end up in landfill, creating emissions harmful to the environment and high disposal costs. To reduce the harmful effects of waste to landfill on the environment and drive down costs, Dexus rolled out waste management strategies across our portfolio, setting an 80% diversion from landfill target for de-fit projects by 2020.

Office de-fit program

Dexus collaborated with charities and other users to repurpose de-fit and increased the diversion rate from landfill across eight projects in FY17.

Dexus donated items from office de-fits at 12 Creek Street, Brisbane to local and international not-for-profit organisations including:

  • ­Furniture donated to AID Vanuatu for re-use across their medical facilities in Vanuatu
  • Computer equipment donated to Be A Hero, for re-use in schools in Cambodia, Indonesia and the Philippines
  • Carpet tiles donated to Point Lookout Surf Lifesaving Club, Stradbroke Island

Recycling e-waste

Dexus partnered with a specialist e-waste recycler to provide customers across our portfolio with e-waste collection services.

Provided a structured and seamless collections process and innovative methods of disassembly resulting in:

  • Collection of 44 tonnes of e-waste across 30 properties
  • Diversion of 98% (by weight) e-waste from landfill
Working with our customers to reduce waste

Australia generates 48 million tonnes of waste per year, placing it as one of the highest waste producers in the world. As a manager of more than 130 office and industrial properties across Australia, Dexus investigated recycling opportunities to promote awareness and reduce waste across its portfolio.

Dexus supported the NSW Environment Protection Authority Bin Trim program to encourage businesses to increase recycling and reduce waste costs and embarked on a tenancy Bin Trim waste assessment at over 14 sites in NSW.

  • At Gateway in Sydney, Dexus upgraded bin infrastructure on all 47 floors utilising a funding grant to help pay for an additional 215 yellow mixed recycling bins
  • At 56 Pitt Street in Sydney, Dexus provided customers with free mixed recycling bins and installed a centralised three bin system in each tenancy
  • At 141 Walker Street in North Sydney, Dexus graded all customer tenancies to a centralised three bin system and eliminated under the desk bins

Performance certifications

NABERS

Dexus properties are rated annually using the National Australian Built Environment Rating System (NABERS) to maintain our legal obligations and to benchmark operational performance across the portfolio.

As at 30 June 2017 Dexus achieved the following NABERS Energy and Water portfolio averages:

Portfolio NABERS portfolio average
Energy Water
Group office portfolio 4.8 3.6
Dexus portfolio 4.8 3.6
Dexus Office Partnership 4.9 3.9
Third Party Funds portfolio 4.9 3.7
Dexus Wholesale Property Fund 4.8 3.3
Group retail portfolio1 3.3 3.5
Dexus Wholesale Property Fund1 3.1 3.2
Third Party Funds portfolio1 3.3 3.5
  1. Dexus managed properties only.

Key highlights for the year include:

  • Dexus and DWPF’s co-owned development at Kings Square 2, Perth achieved an inaugural 5.5 NABERS Energy rating, exceeding its 5 star NABERS commitment agreement
  • Governor Phillip Tower, Sydney improved its NABERS Energy performance rating by a whole star to achieve 4 stars
  • A further nine properties achieved 0.5 star improvements to their NABERS Energy performance rating, including Melbourne properties at 385 Bourke Street, 360 Collins Street and Riverside Plaza

 

 

 

Green Star

Dexus continues to adopt Green Star for new developments. In FY17, we achieved 5 star As Built ratings for developments at Kings Square 2 in Perth, Kathmandu’s distribution centre in Laverton North, 480 Queen Street Brisbane and Toshiba’s new facility at Quarry in Greystanes, Sydney.

Dexus maintained Green Star Performance ratings across 73 office and retail properties, enabling us to benchmark and develop initiatives to improve our results.

Carbon neutral program

Dexus is a signatory to the Australian Carbon Neutral program and our corporate head office has been certified as carbon neutral since 2011. We are currently finalising our certification for 2017, through the offsetting direct and indirect emissions from our corporate operations.

For further information on our environmental management practices, refer to Dexus’s Environment Disclosure of Management Approach.

Enriched environment – performance data

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, Dexus group portfolio - Dexus comprising the ASX listed entity (DXS) and the Third Party Funds Management business, unless otherwise stated
  • Dexus portfolio – refers specifically to the portfolio of properties in the ASX listed entity
  • Funds management portfolio – refers to properties managed by Dexus on behalf of third party clients including the Australian mandate, three capital partnerships and DWPF
  • DWPF – Dexus Wholesale Property Fund

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 2017 with the inclusion of Dexus corporate tenancies.

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 seven previously managed industrial properties where water is purchased by Dexus and consumed by customers 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
  • 324 Queen Street, Brisbane, QLD

Refer to the Dexus 2017 Assurance Criteria for further details including the list of consumption and emission sources, and references for factors that have been applied. The 2017 Assurance Criteria is available in the CR&S library.

Like-for-like data has been based on a portfolio whereby operational control and data for energy and water was available for the full like-for-like period.

Dexus has reviewed our 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.

Dexus’s FY17 disclosure includes a restatement of energy and emissions figures for 480 Queen Street Brisbane and 5 Martin Place Sydney following receipt of additional billing information which has added 15,342 GJ to the FY16 energy footprint.

For further information refer to Dexus’s Environment Disclosure of Management Approach.

Dexus group portfolio -  environmental inventory

Metric FY081 FY13 FY14 FY15 FY16 FY17
Greenhouse gas emissions (tCO2-e) - Property portfolio & corporate tenancies  
Scope 1 6,226 9,267 11,050 15,881 17,679 19,856
Scope 2 151,951 103,927 117,422 137,784 136,748 129,154
Subtotal Scope 1 & 2 158,176 113,194 128,472 153,666 154,427 149,010
Scope 3 - property portfolio 26,304 24,661 29,753 30,153  30,850 31,034
Scope 3 - corporate operations - 1,292 1,361 1,452 1,906 1,869 
Total Scope 1, 2 & 3 184,481 139,146 159,586 185,271  187,183 181,913
Energy and water consumption    
Total net energy consumption (GJ) 735,723 519,758 595,032 730,062 755,602 732,323
Water consumption (kL) 1,499,044 1,223,170 1,442,015 1,704,936 1,763,566 1,818,568
Waste and recycling    
Waste to landfill (tonnes) - 4,475 6,441 8,143 8,143 9,563
Recycling (tonnes) - 4,118 6,035 7,141 6,593 6,055
Total waste (tonnes)2 - 8,593 12,476   15,284 14,737 16,518
Waste data coverage across portfolio3 - 74%   84% 92% 95% 98%
  1. FY08 represents the Group's base year.
  2. Excludes secure paper.
  3. Coverage by net lettable area across office and retail portfolio, excludes industrial properties as Dexus does not manage waste.
 

Group portfolio - consumption/emissions on an intensity basis

  Intensity metric FY081 FY13 FY14 FY15 FY16 FY17 Base year1

to FY17

   12 month
change

Group office portfolio   Energy consumption (MJ/sqm) 597.4 402.2 386.2 370.4 365.7 345.2 -42.2% -5.6%
Water consumption (L/sqm) 882.9 665.7 678.9 653.1 665.3 680.0 -23.8% 2.2%
Scope 1 & 2 emissions (kgCO2 - e/sqm) 130.9 88.9 84.9 79.6 76.3  72.7 -44.4% -4.7%
Waste diversion from landfill (%) - 57% 59% 55% 51% 48% -5.5% -5.1%
 Group retail portfolio Energy consumption (MJ/sqm) 489.1 490.8 478.9 475.8 530.7 562.0 14.9% 5.9%
Water consumption (L/sqm) 1,267.2 1,312.7 1321.8 1230.7 1337.1 1350.3 6.6% 1.0%
Scope 1 & 2 emissions (kgCO2 - e/sqm) 93.5 97.9 93.3 90.7 98.5 100.4 7.4% 1.9%
Waste diversion from landfill (%) - 31% 29% 32% 33% 32% 6.7% -3.9%
 Group industrial portfolio Energy consumption (MJ/sqm) 33.4 22.2 21.2 18.9 13.5 11.8 -64.6% -12.0%
Water consumption (L/sqm) 311.7 276.4 292.6 292.6  279.5 300.2 -3.7% -7.4%
Scope 1 & 2 emissions (kgCO2- e/sqm) 8.4 5.4 5.1 4.4 2.9 2.5 -70.3% -14.7%
  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.

NABERS ratings - office portfolio

  Like-for-like basis Absolute basis1
As at 30 June each year FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Dexus listed portfolio    
NABERS Energy 3.2 3.6 3.9 4.7 4.6 4.7 4.8 4.8
NABERS Energy performance 2.8 3.0 3.5 4.2 4.4 4.4 4.5 4.5
NABERS Water 2.6 3.1 3.3 3.5 3.5 3.8 3.7 3.6
Dexus Office Partnership    
NABERS Energy           4.8 4.8 4.9
NABERS Energy performance           4.7 4.7 4.7
NABERS Water         3.9 3.9 3.9
Third Party Funds Management portfolio  
NABERS Energy 3.3 3.9 4.0 4.1 4.5 4.7 4.8 4.9
NABERS Energy performance 2.8 3.3 3.7 3.7 4.2 4.4 4.4 4.6
NABERS Water 2.5 2.7 3.0 3.2 3.3 3.6 3.6 3.7
Dexus Wholesale Property Fund            
NABERS Energy 2.6 3.3 3.9 3.8 4.2 4.5 4.6 4.8
NABERS Energy performance 2.0 2.9 3.6 3.4 4.0 4.1 4.2 4.5
NABERS Water 2.0 1.9 3.0 3.0 3.0 3.2 3.3 3.3
Dexus group office portfolio            
NABERS Energy 3.3 3.7 3.9 4.5 4.6 4.7 4.8 4.8
NABERS Energy performance 2.8 3.1 3.5 4.0 4.3 4.4 4.5 4.6
NABERS Water 2.4 3.0 3.2 3.4 3.5 3.7 3.7 3.6
  1. Dexus commenced reporting its NABERS portfolio on an absolute basis from FY14.

 

FY10 FY11 FY12 FY13 FY14 FY15  FY16 FY17

Dexus Wholesale Property Fund - managed portfolio

   
NABERS Energy n/a 2.0 2.5 2.5 3.5 3.9 3.4 3.1
NABERS Water n/a 3.5 4.0 4.0 4.2 4.1 4.2 3.2
Third Party Funds Management - managed portfolio      
NABERS Energy n/a 3.1 3.9 3.9 3.7 3.9 3.6 3.3
NABERS Water n/a 3.2 3.7 4.4 4.1 4.1 4.1 3.5

Progress against group commitments

Progress: Group’s FY20 5 star NABERS Commitment

In FY15, Dexus committed to deliver by 2020:

  • 1,000,000 square metres of office space rated at least 5 Star NABERS Energy rating
  • 1,000,000 square metres of office space rated at least 4 star NABERS Water rating

The table below reports on performance against the five year target, which is reported in absolute terms on a like-for-like basis against the FY15 baseline.

Metric

FY15 FY16 FY17 Change against
FY15 baseline
Rated at 5 star NABERS energy or higher 597,320 707,432 634,594 37,275
Progress against NABERS energy target (%) 60% 71% 63% +4%
Rated at 4 star NABERS water or higher 770,270 706,963 615,884 -154,386
Progress against NABERS water target (%) 77% 71% 62% -15%

Progress: Group’s FY20 10% energy reduction commitment

In FY15, Dexus committed to reduce energy consumption and emissions across the group by a further 10% by 2020 using the FY15 baseline including exploring opportunities for renewables.

The table below reports on performance against the five year target, which is reported in absolute terms on a like-for-like basis against the FY15 baseline.

Metric FY15 FY16 FY17 Change against
FY15 baseline
Energy consumption (GJ) 665,037 661,645 632,666 -4.9%
Scope 1 and 2 greenhouse gas emissions (t. CO2-e) 140,150 136,303 130,183 -7.1%

Dexus corporate operations - voluntary greenhouse gas abatement

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

In 2011 Dexus was the first real estate investment trust in Australia to achieve a carbon neutral certification for our head office. Since then, we have expanded the reporting boundary across our entire Corporate Operations, including: 

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

The group has offset:

  • Direct emissions from refrigeration and electricity usage
  • Indirect tenancy-related emissions including waste to landfill, office paper use and stationary, water/wastewater use, telecommunications, IT equipment and data warehousing, and catering
  • Indirect employee-related emissions including corporate air travel, car mileage claimed for national employees, taxi travel, hire cars and employee commuting
Metric FY11 FY12 FY131 FY142 FY153 FY16 FY17
Greenhouse gas emissions (tCO2-e)    
Scope 1  2 1
Scope 2 403 332 270 233 284 248 266
Scope 3 comprising the following: 1,841 1,970 1,685 1,762 2,330 2,312 2,246
 -Tenancies and base building energy/refrigerants 604 587 444 348 431 390 365
 -Office paper use and waste 35 10 221 58 25 24 18
 -Corporate travel 1,202 1,373 1,021 1,009 1,040 927 898
 -Employee commuting  - - - 347 420 501 507
 -IT, catering, accommodation, water use - - - - 414 471 456
 -Avoided emissions from renewable energy purchased by Dexus  -81  -66 -28 0 -16 0 0
Total emissions (scopes 1, 2 & 3)  2,165 2,238 1,929 1,955 2,599 2,561 2,513
Voluntary carbon abatement (tCO2-e)  
Carbon offsets purchased and retired by Dexus  2,200 2,300 2,000  2,200 2,700 2,700 3,000
  1. 2013: Boundary expanded to include Melbourne Office.
  2. 2014: Employee commuting included.
  3. 2015: Boundary expanded to include Brisbane Office and additional scope 3 sources.

Dexus group portfolio - environmental metrics

Voluntary greenhouse gas abatement  

Energy consumption (MWh) FY12 FY13 FY14 FY15 FY16 FY17
Low carbon energy (MWh)            
Volume of GreenPower procured/committed 13,000 13,000 12,125 11,688 7,222 2,143
Electricity generated from solar energy 13 76 115 106 183 274
Electricity generated from cogeneration         506 1,110 1,434 2,027 2,008 1,616
Electricity from renewable and low carbon sources (MWh) 13,519 14,187 13,674 13,822 9,413 4,034
Emissions abatement from renewable sources (t.CO2-e)            
GreenPower purchases (Scope 2 only) 12,109 12,098 11,281 10,761 6,702 1,889
Electricity from solar energy (Scope 2 & 3) 14 82 122 105 169 239
Emissions abatement from  low carbon sources (t.CO2-e)            
Avoided grid-purchased electricity emissions (Scope 2 & 3) 660 1,812 2,152 2,840 2,704 2,434
Natural gas emissions for generation (Scope 2 & 3) -312 -1,249 -1,473 -1,870 -1,781 -1,757
Net abatement (Scope 2 & 3) 348 563 679 970 923 677
Total emissions abatement from use of electricity from
renewable & low carbon sources (t.CO2-e)
12,472 12,743 12,082 11,836 7,794 2,805
% of Group emissions that have been abated 7.7% 8.4% 7.0% 6.0% 4.0% 1.5%

Strategic Improvement Plans (SIPs)

Cumulative number of SIPs developed FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Office and Industrial 19 30 27 32 33 36 61 68
Retail n/a 5 5 5 5 5 12 14

Energy Savings Scheme (ESCs)

FY12 FY13 FY14 FY15 FY16 FY17
ESCs created1 8,608 17,004 42,814 22,303 33,796 4,599
ESCs traded1 0 0 32,446 58,093 15,934 18,052
  1. 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).

Energy consumption and production by source

FY081 FY13 FY14 FY15 FY16 FY17

Energy consumption (GJ)

   
Diesel 957 4,456 5,285 3,117  5,452 5,574
Electricity 614,987 407,335 468,260 546,906 558,747 538,486
Natural Gas 119,779 107,693 121,072 179,656 190,746 187,278
Solar Energy - 275 415 383 657 985
Electricity consumed from on-site thermal and solar generation 383 6,054 7,692 8,927 10,067 9,034
Total energy consumption 736,106 525,812 602,724 738,989 765,669 741,357
Energy production (GJ)            
Electricity produced from thermal and solar generation for on-site use 383 6,054 7,692 8,927 10,067 9,034
Electricity generated and exported off site - - - - - -
Total energy production  383 6,054 7,692 8,927 10,067 9,034
Net energy consumption (GJ)            
Total net energy consumption  735,723 519,758 595,032 730,062 755,602 732,323
  1. FY08 represents the group's base year.

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 customers.

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

Water consumption by source

FY081 FY13 FY14 FY15 FY16 FY17
Office 839,884 648,480 807,424 980,018 1,072,263 1,086,800
Industrial 288,931 298,940 326,717 327,047 302,350 324,020
Retail 370,229 275,749 307,047 394,002 378,664 399,677
Total potable water consumption (kL) 1,499,044 1,223,170 1,441,188 1,701,067 1,753,278 1,810,497
Recycled water recovery - - 827 3,869 10,288 8,070
Total water consumption including recycled water (kL) 1,499,044 1,223,170 1,442,015 1,704,936 1,763,566 1,818,568
  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 1 Bligh Street Sydney, 123 Albert Street Brisbane and 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

FY17 waste stream (tonnes) Office Retail
Cardboard 1,452 1,449 Sent to EPA licensed receiving facilities for recycling into raw materials for new products or packaging.
Paper 1,555 2
Comingle 1,736 439
Fully comingle 61 21
Organics and used cooking oil 138 66 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.
E-waste 36 0 Collected by MRI and sent to their handling facilities for structured disassembly with recovery rate of over 96%.
Waste to landfill 5,377 4,186 Sent directly to landfill or to receiving stations that may process the waste within a bio-reactor to produce energy.
Total waste & recycling (tones) 10,355 6,163  
Tenant managed waste collection
Secure paper 248 0  

In FY17 there were no significant spills of 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 FY13 FY14 FY15 FY16  FY17
Emissions of ozone depleting substances (t.CFC-11e) n/a n/a 0.1 0.9 0.2 1.2

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

FY081 FY13 FY14 FY15 FY16 FY17
Direct greenhouse gas emissions (tCO2-e)  
Carbon Dioxide (CO2) 6,207 5,822 6,565 9,414 10,185 10,016
Methane (CH4) 12 11 13 18 20 19
Nitrous Oxide (N2O) 7 4 5 6 7 7
Hydrofluorocarbons (HFCs) 3,429 4,468 6,443 7,467 9,814
Sulphur Hexafluoride (SF6)   - - - - -
Perfluorocarbon (PFC)   - - - - -
Scope 1 GHG emissions (tCO2-e) 6,226 9,267 11,050 15,881 17,679 19,856
Indirect greenhouse gas emissions (tCO2-e)  
Scope 2 GHG emissions (tCO2-e) 151,951 103,927 117,422 137,784 136,748 129,154
Scope 3 GHG emissions (tCO2-e) 26,304 25,953 31,114 31,605 32,756 32,903
  1. FY08 represents the group’s base year.

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 FY13 FY14 FY15 FY16 FY17
Scope 1 & 2 greenhouse gas emissions (tCO2-e)  
Diesel 67 310 367 217 383 391
Natural Gas 6,159 5,528 6,215 9,222 9,829 9,650
Refrigerants - 3,429 4,468 6,443 7,467 9,814
Electricity 151,951 103,927 117,422 137,784 136,748 129,154
Scope 1 & 2 GHG emissions (tCO2-e) 158,176 113,194 128,472 153,666 154,427 149,010
Scope 3 greenhouse gas emissions (tCO2-e)     
Energy transmission and distribution losses 26,304 19,738 22,668 21,195 20,264 19,559
Waste to landfill - 4,922 7,085 8,958 10,586 11,475
Corporate travel            - 1,292 1,361 1,452 1,906 1,869
Scope 3 GHG emissions (tCO2-e) 26,304 25,953 31,114 31,605 32,756 32,903
  1. FY08 represents the Group's base year.

Portfolio environmental summaries

Environmental summary - Dexus portfolio

Metric

FY081 FY13 FY14 FY15 FY16 FY17
Greenhouse gas emissions (tCO2-e)  
Scope 1 4,335 6,200 6,919 8,947 9,609 8,882
Scope 2 787,025 55,889 59,579 65,686 65,794 55,850
Total Scope 1 & 2 83,037 62,088 66,498 74,633 75,403 64,731
Scope 3 13,877 11,936 14,402 13,751 14,7114 12,421
Total Scope 1, 2 & 3 96,914 74,024 80,900 88,384 8,9517 77,152
Energy and water consumption  
Total net energy consumption (GJ) 390,649 305,094 328,750 377,165 385,725 328,406
Water consumption (kL) 737,147 666,369 759,130 852,355 892,830 862,014
Waste and recycling  
Waste to landfill (tonnes) - 1,350 2,755 3,278 3,364 3,294
Recycling (tonnes) - 1,931 2,916 3,118 2,867 2,669
Total waste (tonnes) - 3,280 5,671 6,396 6,231 5,964
Waste data coverage across portfolio - 68% 80% 93% 96% 98%
Energy productivity  
Total operating segment revenue ($m) 702.2 683.7 824.9 1,056.4 1,072.2 1,119.2

Energy productivity
($ Segment revenue/net energy consumed (GJ))

1,797.5 2,241.0 2,509.2 2,800.9 2,779.7 3,408.0
  1. FY08 represents the group's base year.
 

Environmental summary - Third Party Funds portfolio

Metric FY081 FY13 FY14 FY15 FY16 FY17
Greenhouse gas emissions (tCO2-e)    
Scope 1 908 2,051 2,645 4,557 5,318 6,294
Scope 2 42,298 33,138 37,110 49,853 49,122 49,976
Total Scope 1 & 2 43,205 35,189 39,755 54,410 54,439 56,270
Scope 3 6,789 8,864 9,876 11,737 12,012 13,467
Total Scope 1, 2 & 3 49,994 44,053 49,631 6,614 66,451 49,737
Energy and water consumption    
Total net energy consumption (GJ) 178,648 144,652 168,242 238,349 250,318 264,785
Water consumption (kL) 458,758 440,029 507,665 661,174 667,468 705,964
Waste and recycling    
Waste to landfill (tonnes) - 2,646 2,821 3,724 3,598 4,584
Recycling (tonnes) - 1,491 1,972 2,699 2,529 2,803
Total waste (tonnes) - 4,137 4,793 6,423 6,127 7,387
Waste data coverage across portfolio - 68% 80% 93% 96% 98%
  1. FY08 represents the Group's base year.
 

Environmental summary - Dexus Wholesale Property Fund

Metric FY081 FY13 FY14 FY15 FY16 FY17
Greenhouse gas emissions (tCO2-e)             
Scope 1 624 1,479 1,609 1,706 2,130 2,829
Scope 2 20,901 20,185 22,044 23,877 25,372 27,535
Total Scope 1 & 2 21,526 21,664 23,653 25,583 27,502 30,363
Scope 3 3,124 4,480 4,955 5,127 5,754 7,486
Total Scope 1, 2 & 3 24,650 26,144 28,608 30,710 33,256 37,849
Energy and water consumption  
Total net energy consumption (GJ) 86,602 89,320 98,518 106,073 123,394 141,194
Water consumption (kL) 217,760 264,772 289,073 336,229 370,019 406,451
Waste and recycling  
Waste to landfill (tonnes) - 1,006 1,074 1,398 1,523 2,444
Recycling (tonnes) - 612 831 1,044 1,002 1,276
Total waste (tonnes) - 1,617 1,905 2,442 2,525 3,720
Waste data coverage across portfolio - 68% 80% 93% 96% 98%
  1. FY08 represents the Group's base year.

Environmental summary - Dexus Office Trust

Metric FY081 FY13 FY14 FY15 FY16 FY17
Greenhouse gas emissions (tCO2-e)
Scope 1 3,096 4,154 4,888 6,914 7,356 6,967
Scope 2 48,686 37,843 42,147 49,584 50,907 42,439
Total Scope 1 & 2 51,782 41,997 47,034 56,497 58,266 49,407
Scope 3 8,151 7,697 10,354 10,655 11,190 9,741
Total Scope 1, 2 & 3 59,933 49,694 57,388 67,152 69,456 59,148
Energy and water consumption
Total net energy consumption (GJ) 248,867 201,990 228,350 280,186 293,033 247,019
Water consumption (kL) 387,939 354,167 408,041 493,244 559,448 505,570
Waste and recycling
Waste to landfill (tonnes) - 883 2,350 2,880 2,922 2,796
Recycling (tonnes) - 1,349 2,365 2,623 2,391 2,237
Total waste (tonnes) - 2,232 4,715 5,503 5,312 5,033
Waste data coverage across portfolio - 57% 79% 92% 95% 98%
  1. FY08 represents the Group's base year.