Optimising the environmental performance and resilience of our buildings

FY16 Performance Against Commitments  

= Achieved , = Not achieved, = Underway

Commitment

Status

FY16 Achievements

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

Delivered 667,000sqm of office space with a 5 star NABERS Energy rating and 627,000sqm of office space with a 4 star NABERS Water rating
Reduce energy consumption and emissions across the Group by a further 10% by 2020 using the FY15 baseline including exploring opportunities for renewables Completed energy modelling on all office properties to track performance against 2020 target of 10% reductions. In FY16 Dexus achieved a 3.3% reduction in energy consumption and a 5.6% reduction in Scope 1 & 2 greenhouse gas emissions

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

Completed a fit out of Dexus’s Melbourne office at 385 Bourke Street using re-purposed furniture in line the Better Building Partnerships procedures on minimising fit out waste going to landfill

Implement a ‘Virtual Engineer’ program by applying 24/7 computer analytics to 36 sites to predict and react to Heating Ventilation and Air Conditioning (HVAC) events in real time

Activated Virtual Engineer program with 36 sites incorporated into the central platform to predict and react to real time Heating, Ventilation and Air Conditioning functions

Review design briefs across all asset classes to develop an in-house suite of best practice sustainable development practices

Developed design briefs, which will be expanded to include wellness and smart building technology for best practice sustainable development works.

Refer to Office, Industrial and Third Party Funds Management sections in the 2016 Dexus Annual Report.

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

FY12

FY13

FY14

FY15

FY16 

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

Scope 1

6,226

7,882

9,267 11,007 15,883 17,043

Scope 2

151,951

112,803

103,931 117,455 137,767 134,895

Subtotal Scope 1 & 2

158,177

120,685

113,198 128,462 153,650 151,938

Scope 3

26,304 26,251 24,662 29,760 30,195  30,045

Subtotal Scope 1, 2 & 3

184,481

146,936

137,859 158,222 183,844 181,984

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

Scope 3

-

1,635 1,292 1,361 1,452 1,906

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

Total Scope 1, 2 & 3

184,481 148,572 139,151 159,583 185,297  183,890

Energy and water consumption

 

Total net energy consumption (GJ)

735,723

540,752

519,775

595,172 729,951 735,028

Water consumption (kL)

1,499,044

1,216,191 1,223,170 1,443,950 1,702,334  1,760,828

Waste and recycling

 

Waste to landfill (tonnes)

-

4,828

4,475

6,441

8,178

7,860

Recycling (tonnes)

-

3,781

4,209

6,278

7,583  6,980

Total waste (tonnes)

-

8,609

8,684

12,720

15,761

 14,840

Waste data coverage across portfolio2

-

75%

79%

88%

92%

87%
  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.

Since FY15, the Group’s energy consumption has increased by 0.7% and water consumption is up by 3.1%. Scope 1 and 2 emissions have decreased by 1.1%.

From an intensity basis, energy intensity has reduced by 1.5% and water consumption intensity has increased by 0.8%, while emissions intensity has reduced by 3.3%.

Key FY16 environmental performance results for the Group include:

  • Achieving a 3.3% reduction in net energy consumption against the FY15 like-for-like baseline, putting Dexus on track to achieve its FY20 target to reduce energy use by 10% across the Group. This corresponds to a 5.6% reduction in Scope 1 & 2 greenhouse gas emissions
  • Completing Level 1 Energy Audits for 19 Retail and 61 Office properties, to benchmark properties against their peers and to identify further energy and water efficiency opportunities that may contribute towards Dexus’s FY20 energy and emissions reduction targets
  • Continued to implement strategies to improve waste data capture. During the year Dexus collaborated with its cleaning services contractors to install weight scales in the majority of office properties enabling Dexus to directly measure waste and recycling by weight. This has improved the accuracy and confidence in Dexus waste figures, however it has adversely impacted Dexus progress towards its 65% waste diversion target. For FY16 Dexus achieved a diversion rate of 61% across the Group’s like-for-like office portfolio
  • Achieving a 4.8 star NABERS Energy rating across the Group’s office portfolio, improving by 0.1 stars against FY15. The Group’s office portfolio now includes 14 properties with 5.5 star NABERS Energy ratings representing 28% of total rated area. A further 19 properties achieved 5.0 stars NABERS Energy ratings and the Group’s office portfolio now has 33 properties representing 65% of rated area that have achieved a NABERS Energy rating of 5.0 stars or higher
  • Achieving 67% progress as at June 2016 against Dexus’s FY20 target to deliver 1,000,000 sqm of 5 star NABERS Energy rated office property
  • Achieving 63% progress as at June 2016 against Dexus’s FY20 target to deliver 1,000,000 sqm of 4 star NABERS Water rated office property

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

FY121

FY13

FY14

FY15

FY16

Base year1 to FY16

12 month change

Group Office portfolio

 

Energy consumption (MJ/sqm)

595.2 405.7 400.2 383.9 368.4 353.7

-40.6%

-4.0%

Water consumption (L/sqm)

889.5 647.7 662.9 676.7 650.5 671.0

-24.6%

3.1%

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

130.4

93.1

88.4

84.3

79.2

75.0 

-42.5%

-5.3%

Waste diversion from landfill (%)

-

51%

57%

60%

57%

 53%

4.2%

-5.6%

Group Retail portfolio                
Energy consumption (MJ/sqm)  491.5  498.0 502.2 490.9 485.5 530.2 7.9% 9.2%
Water consumption (L/sqm) 1273.6 1229.9 1338.8 1341.5 1245.1 1321.4  3.8% 6.1%
Scope 1 & 2 greenhouse gas emissions (kgCO2 - e/sqm) 94.0  97.7 100.3 95.8 92.8 97.9 4.2% 5.6%
Waste diversion from landfill (%)  - 30 31 29 32 33 10.3 2.1%
Group Industrial portfolio                

Energy consumption (MJ/sqm)

33.4 25.1 22.2 21.3 19.1 13.7

-59.2%

-28.6%

Water consumption (L/sqm)

311.7 262.6 276.1 293.8 291.6  275.9

-11.5%

-5.4%

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

8.4

6.3 5.4 5.1 4.4 2.9

-64.7%

-33.5%

  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.

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 FY16 include:

  • Reducing energy intensity by 4.0% over the last 12 months and by 40.6% since FY08
  • Reducing greenhouse gas emissions intensity by 5.3% since FY15 and by 42.5% since FY08

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 4.0% against FY15

Water intensity increased by 3.1% however the portfolio average of 0.67kL/sqm exceeds the Sydney-based Better Buildings Partnership (BBP) current 2030 target of 0.7kL/sqm. Dexus continues to valuate sites to achieve sustained water reductions.

Changes in intensity across industrial are impacted by the divestment of several resource intensive properties.

The following charts highlight by asset class the Group portfolio’s nine year performance trends on an intensity basis:

NABERS ENERGY AVERAGE - GROUP OFFICE PORTFOLIO

 

Like-for-like basis

Absolute basis1

 
 

FY10

FY11

FY12

FY13

FY14

FY14

FY15

FY16 

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

 

Dexus

3.2

3.6

3.9

4.7

4.8

4.6

4.7

 4.8

Dexus Office Partnership

-

-

-

-

-

-

4.8

 4.8

Third Party Funds Management

3.3

3.9

4.0

4.1

4.5

4.5

4.7

 4.8

DWPF

2.6

3.3

3.9

3.8

4.1

4.2

4.5

 4.6

Dexus

3.3

3.7

3.9

4.5

4.7

4.6

4.7

4.8

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

 

Dexus

2.8

3.0

3.5

4.2

4.3

4.4

4.4

 4.5

Dexus Office Partnership

-

-

-

-

-

-

4.7

 4.7

Third Party Funds Management

2.8

3.3

3.7

3.7

4.1

4.2

4.4

 4.4

DWPF

2.0

2.9

3.6

3.4

3.7

4.0

4.1

 4.2

Dexus

2.8

3.1

3.5

4.0

4.3

4.3

4.4

4.5
 NABERS Water average (by area)2
Dexus  2.6 3.1 3.3 3.5 3.5  3.5 3.8 3.7 
Dexus Office Partnership  - - - - -  - 3.9 3.9
Third Party Funds Management  2.5 2.7 3.0 3.2 3.1 3.3 3.6 3.6
DWPF 2.0 1.9 3.0 3.0 2.6 3.0 3.2 3.3
 Dexus 2.4 3.0 3.2 3.4 3.4 3.5 3.7 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 each year.

Energy Commentary

On an absolute (or whole portfolio) basis, the average Group office NABERS Energy rating as at 30 June 2016 was 4.8 stars with GreenPower, an incremental improvement of 0.1 stars against FY15. The Group’s office NABERS Energy rating without GreenPower also improved by 0.1 stars to achieve 4.5 stars.

Highlights for the year include:

  • 56 Pitt Street Sydney, 11 Talavera Road Macquarie Park and 44 Market Street Sydney have improved their NABERS ratings without GreenPower from 4.5 to 5 stars
  • 150 George Street, Parramatta has increased the NABERS rating from 5 to 5.5 stars without GreenPower
  • 39 Martin Place, Sydney continued to improve performance achieving a 4 star NABERS Energy rating, an improvement of 1.5 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

DWPF’s weighted average NABERS Energy rating is 4.6 stars; an improvement of 0.1 stars from FY15. The uplift is due to continued improvements at 39 Martin Place Sydney and 12 Creek Street, Brisbane, as well as the acquisition with Dexus of Waterfront Place – 1 Eagle Street Brisbane, which has a 5 star NABERS Energy rating.

Water Commentary

On an absolute or whole portfolio basis, the average Group office NABERS Water rating as at 30 June 2016 was 3.7 stars, remaining unchanged from FY15.

A number of properties achieved improvements of 0.5 or 1 stars including:

  • Finley Crisp, Nara House, Canberra
  • Southgate Complex, IBM Tower
  • 39 Martin Place, Sydney
  • 60 Castlereagh Street, Sydney
  • One Margaret Street, Sydney
  • 385 Bourke Street, Melbourne

 

NABERS RATINGS - RETAIL PORTFOLIO

 

FY10

FY11

FY12

FY13

FY14

FY15

 FY16

NABERS Energy average (by area)1

 

Third Party Funds Management

n/a

3.1

3.9

3.9

3.7

3.9

 3.6

DWPF

n/a

2.0

2.5

2.5

3.5

3.9

 3.4
 NABERS Water average (by area)1              
Third Party Funds Management n/a   3.2 3.7 4.4 4.1 4.1  4.1
DWPF n/a 3.5  4.0 4.0 4.2 4.1 4.2
  1. At 30 June each year.

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.

The continued focus on sustainability within the retail environment includes a holistic view of what the “future state” of each Centre can be through master-planning, with consideration of mechanical and electrical upgrades positively impacting future ratings.

This approach has already shown results at one of the major refurbishments, Willows Shopping Centre Townsville, resulting in a redesign for both the centre and the major tenant’s air conditioning systems. The change will deliver greater efficiencies in the short and longer terms and has been delivered within the original budget allowances.

NABERS performance results for FY16 include:

  • QV Melbourne has improved its rating by 0.5 to 2.5 star NABERS Energy rating
  • Beenleigh Marketplace has improved its rating by 0.5 to 3.0 star NABERS Energy rating and achieved a 4.5 stars NABERS Water ratings
  • Plumpton Marketplace has improved its rating by 0.5 to 2.5 star NABERS Energy rating
  • Sturt Mall achieved a 4 star NABERS Energy rating and 4 star NABERS Water rating
  • Smithfield Centre retained its 3.5 star NABERS Energy rating and achieved a NABERS Water rating of 4.5 stars

 

PROGRESS AGAINST GROUP COMMITMENTS

Milestone: Group’s FY16 65% waste diversion commitment

In FY14, Dexus committed target 65% diversion from landfill for the Group’s office portfolio by the end of the three year program in FY16. Dexus achieved a 61% diversion rate by 30 June 2016.

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.

Waste and recycling

FY12

FY13

FY14

FY15

FY16 

Waste to landfill (tonnes)

2,411 2,107 1,909 1,941 1,886

Recycling (tonnes)

2,726 2,991 3,692 3,270 2,930

Diversion from landfill (%)

53% 59% 66% 63% 61%

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 based on the portfolio under Dexus's operational control as at 30 June each year. 

NABERS metrics

FY15

FY16 12 Month change 

Rated at 5 star NABERS energy or higher

532,677 667,776 135,099

Progress against NABERS energy target (%)

53% 67% 14%

Rated at 4 star NABERS water or higher

681,102 627,343 -53,759
 Progress against NABERS water target (%)  68% 63% -5%

 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.

As at June 2016 like-for-like energy consumption has reduced by 3.3% due to a combination of energy efficiency opportunities as well as vacancies at selected properties. Emissions reduced by 5.6% against the baseline year.

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 12 Month change

Energy consumption (GJ)

505,925 489,337 -3.3%

Scope 1 and 2 greenhouse gas emissions (t. CO2-e)

107,357 101,304 -5.6%

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
  • 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

Greenhouse gas emissions (tCO2-e)

 
Scope 1  2
Scope 2 403 332 270 233 284 248
Scope 3 comprising the following: 1,841  1,970 1,684 1,762 2,330 2,312
Tenancies and base building energy/refrigerants 604 587 443 348 431 390
Office paper use and waste 35 10 221 58  25 24
Corporate travel 1,202 1,373 1,021 1,009 1,040 927
Employee commuting  - 347  420 501
IT, catering, accommodation, water use - 414  471 
Avoided emissions from renewable energy purchased by Dexus  -81  -66 -28 0 -16 0
 Total emissions (scopes 1, 2 & 3)  2,165 2,239 1,928 1,995 2,599 2,561
 Voluntary carbon abatement (tCO2-e)            
 Carbon offsets purchased and retired by Dexus  2,200 2,300 2,000  2,200 2,700 2,700
  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

VOLUNTARY GREENHOUSE GAS ABATEMENT – PROPERTY PORTFOLIO

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 FY16, the Group generated 91MWh of electricity from solar photovoltaic (PV) and 2,008 MWh from gas-powered cogeneration plants. The Group also sourced 5,750 MWh of its purchased electricity from GreenPower.

From these activities the Group estimates that it has abated 5,424 tonnes of greenhouse gas emissions, which represents 2.9% 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

 FY16

Volume of GreenPower procured/committed

13,000

13,000

13,000

12,125

11,688 

5,750

Electricity generated from solar energy

-

13

76

115 106 91

Electricity generated from cogeneration

-

506

1,110

1,434

2,027 2,008

Electricity from renewable and low carbon sources (MWh)

13,000

13,519

14,187 13,674 13,822 7,850

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

FY11

FY12

FY13

FY14

FY15

FY16

GreenPower purchases (Scope 2 only)

-

12,109

11,929

11,281

10,758 5,223

Electricity from solar energy (Scope 2 & 3)

-

14

82 122 105 88
Greenhouse gas abatement from use of electricity from renewable and low carbon sources (t.CO2-e)  FY11 FY12 FY13 FY14  FY15 FY16

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

-

516

1,110

1,377 1,905 1,847

Natural gas emissions for generation (Scope 2 & 3)

-

312 1,249 1,473 1,870 1,734
 Net abatement (Scope 2 & 3) - 204 138 96 35 114

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

-

12,328 12,041 11,307 10,899 5,424

% of Group emissions that have been abated

-

7.7% 8.0% 6.6% 5.6% 2.9%

STRATEGIC IMPROVEMENT PLANS

Cumulative number of SIPs developed

FY10

FY11

FY12

FY13

FY14

FY15

 FY16

Office and Industrial

19

30

27

32

33

36

 61

Retail

n/a

5

5

5

5

5

 12

Cumulative number of SIPs implemented

 

Office and Industrial

0

6

17

20

21

25

 25

Retail

n/a

n/a

n/a

n/a

3

4

 4

Commentary

In FY16 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.

In November Dexus held a one-day energy and water efficiency opportunities workshop involving facility management teams and mechanical contractors to review office properties for sustainability projects likely to be implemented over the next 5 years. The team reviewed each asset’s current performance and upcoming energy/water efficiency-related CAPEX projects including lifecycle replacements, other at-risk mechanical plant, as well as building analytics.

In July 2016 Dexus and CBRE completed Level 1 Energy Audits incorporating the findings from the opportunities workshops to assist Dexus with understanding its pathway towards its FY20 NABERS portfolio rating and energy/emissions reduction targets

ENERGY EFFICIENCY UPGRADES IMPROVE PERFORMANCE AT BLUE TOWER – 12 CREEK STREET BRISBANE

Blue Tower - 12 Creek Street was purchased by Dexus and DWPF in October 2012 with an existing NABERS Energy rating of 2.5 stars. Dexus immediately identified sustainability initiatives to improve energy efficiency and developed a Strategic Improvement Plan to lift the NABERS rating to target 4.5 stars.

The four year improvement plan involves:

  • Replacement of Variable Air Volume (VAV) units – a 4 year $2.5M VAV replacement program including the replacement of pneumatic controls with accurate digital controls
  • Building Management Control System (BMCS) Improvements - to significantly improve the way the building is operated, reduce response time and enable better tenant comfort to be delivered
  • Sub-metering and monitoring system – to enable monitoring and exception reporting and benchmarking across the broader portfolio

Dexus embarked on a 24-month implementation program involving "back of house" works to minimise impact on tenants. Intrusive works to replace the VAVs were scheduled around floor vacancies with Dexus successfully upgrading Levels 3-4, 8–13, 18 and Part Level 21, and 22-23, which have resulted in immediate improvements to tenant comfort with reduced energy consumption.

The central cooling plant had already been upgraded with high efficiency chillers that will be optimised through improvements to the control strategy and sequencing. Works to improve the BMCS will maximise the effectiveness of the new VAV boxes with dynamic controls matched to ambient conditions improving the space conditioning while saving energy.

Since acquisition, the NABERS Energy rating for Blue Tower – 12 Creek Street Brisbane has improved by 1 star from 2.5 stars to 3.5 stars. Between 2013 and 2015 energy intensity has reduced by 21% and electricity costs have reduced by approximately $160,000 per annum. Dexus anticipates further improvements as the upgrade works are finalised and is targeting a 4.5 star NABERS Energy rating for the property.

ENERGY SAVINGS CERTIFICATE SCHEME

FY10

FY11

FY12

FY13

FY14

FY15

FY16 

ESCs created1

-

-

8,608

17,004

42,814

22,301

33,800

ESCs traded1

- - - -

32,446

58,093

15,934
  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).

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 2016 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 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
  • 324 Queen Street, Brisbane, QLD

Refer to the Dexus 2016 Assurance Criteria for further details including the list of consumption and emission sources, and references for factors that have been applied. The 2016 Assurance Criteria is available in the CR&S library on Dexus’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 like-for-like period.
Reporting against Dexus’s 65% waste diversion target is based on the like-for-like data portfolio whereby operational control and data for energy and water was available for the full 48 month period across FY12 to FY16.

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.

Dexus’s FY16 disclosure includes a restatement of energy and emissions figures for QV Melbourne following resolution of metering and billing issues which has added 12,100GJ to the FY15 energy footprint.

For further information refer to Dexus’s Environment Disclosure of Management Approach (DMA) available on Dexus’s website.   

APPENDIX A - ENERGY, WATER AND GREENHOUSE GAS EMISSIONS METRICS

ENERGY CONSUMPTION AND PRODUCTION BY SOURCE

FY081

FY12

FY13

FY14

FY15

 FY16

Energy consumption (GJ)

 
 Diesel 957 2,242 4,456 5,285 3,117  5,452
 Electricity 614,987 445,639 407,352 468,400 546,759 550,509
 Natural Gas 119,779 92,823 107,693 121,072 179,692 178,411
 Solar Energy - 48 275 415 383 656
 Electricity consumed from on-site thermal and solar generation 383 2,765 6,054 7,692 8,927 10,066
 Total energy consumption 736,106 543,517 525,829 602,863 738,878 745,094
 Energy production (GJ)            
 Electricity produced from thermal and solar generation for on-site use 383 2,765 6,054 7,692 8,927 10,066
 Electricity generated and exported off site - - - - - -
 Total energy production  383 2,765 6,054 7,692 8,927 10,066
 Net energy consumption (GJ)            
 Total net energy consumption  735,723 540,752 519,775 595,172 729,951 735,028
  1. FY08 represents the Group's base year.

The following highlights the net energy consumption for FY16 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

FY12

FY13

FY14

FY15

FY16

Office

839,884

622,802

648,480

807,714

979,054

1,086,735 

Industrial

288,931

293,555

298,940

328,558

326,260

 300,111

Retail

370,229

299,835

275,749

306,852 393,151  363,695

Total water consumption (potable water) (kL)

1,499,044

1,216,191

1,223,170

1,443,123 1,698,465 1,750,540

Recycled water recovery

-

- - 827

3,869

10,288

Total water consumption including recycled water (kL)

1,499,044

1,216,191

1,223,170 1,443,950 1,702,334 1,760,828
  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

Tonnes

FY16

Disposal method

Cardboard

2,588

Sent to EPA licensed receiving facilities for recycling into raw materials for new products or packaging.

Paper

1,736

Secure paper

400

Comingle

1,768

Fully comingle

295

Organics and used cooking oil

193

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

7,859

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)

14,840

 

In FY16 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

FY16 

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

n/a

n/a

n/a

n/a

0.1

0.9

0.2

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

FY08

FY12

FY13

FY14

FY15

FY16 

Direct greenhouse gas emissions (tCO2-e)

Carbon Dioxide (CO2)

6,207

4,908

5,822

6,565 9,416 9,551

Methane (CH4)

12

9

11

13

18 18

Nitrous Oxide (N2O)

7

3

4

5

6

6

Hydrofluorocarbons (HFCs)

-

2,961

3,429 4,425 6,443 7,467

Sulphur Hexafluoride (SF6)

-

- - - - -

Perfluorocarbon (PFC)

-

- - - - -

Scope 1 GHG emissions (tCO2-e)

6,226

7,882

9,267 11,007 15,883 17,043

Indirect greenhouse gas emissions (tCO2-e)

Scope 2 GHG emissions (tCO2-e)

151,951

112,803

103,931 117,455 137,767 134,895

Scope 3 GHG emissions (tCO2-e)

26,304 27,886 25,954 31,121 31,647 31,951

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

FY12

FY13

FY14

FY15

FY16

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

Diesel

67

156 310 367 217 383

Natural Gas

6,159 4,765 5,528 6,215 9,224 9,194

Refrigerants

-

2,961

3,429 4,425 6,443 7,467

Electricity

151,951 112,803 103,931 117,455 137,767 134,895

Scope 1 & 2 GHG emissions (tCO2-e)

158,176 120,685 113,198 128,462 153,650 151,938

Scope 3 greenhouse gas emissions (tCO2-e)

Energy transmission and distribution losses

26,304 20,940 19,739 22,675 21,199 19,828

Waste to landfill

- 5,311

4,922

7,085

8,996

10,218

Corporate travel

-

1,635 1,292 1,361 1,452 1,906

Scope 3 GHG emissions (tCO2-e)

26,304 27,886 25,954 31,121 31,647 31,951

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

FY12

FY13

FY14

FY15

FY16 

Greenhouse gas emissions (tCO2-e) - Property portfolio

Scope 1

4,335

5,234

6,223 6,943 8,948 9,396

Scope 2

78,702

59,409

56,202 60,344 65,671 65,043

Total Scope 1 & 2

83,037

64,643

62,424 67,287 74,620 74,439

Scope 3

13,877

12,534 12,024 14,616 13,790 14,009

Total Scope 1, 2 & 3

96,914 77,177 74,448 81,903 88,410 88,448

Energy and water consumption

Total net energy consumption (GJ)

390,649

300,244

306,541 332,113 377,098 378,222

Water consumption (kL)

737,147

647,663

669,395 766,511 848,286 889,478

Waste and recycling

Waste to landfill (tonnes)

-

1,513

1,367 2,797 3,313 3,411

Recycling (tonnes)

-

1,696 2,013

3,089

3,396 3,137

Total waste (tonnes)

-

3,209

3,380 5,885 6,708 6,549

Waste data coverage across portfolio

-

74%

73%

85% 91% 86%

Energy productivity

Total operating segment revenue ($m)

702.2

764.4

683.7

824.9

1,056.4

 1,072.2

Energy productivity

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

1,797.5

2,545.9

2,230.4

2,483.8

2,801.4 2,834.8
  1. FY08 represents the Group's base year.

ENVIRONMENTAL SUMMARY - THIRD PARTY FUNDS MANAGEMENT

Metric

FY081

FY12

FY13

FY14

FY15

FY16 

Greenhouse gas emissions (tCO2-e) - Property portfolio

 

Scope 1

908

1,793

2,074 2,669 4,558 5,120

Scope 2

42,298

34,283

33,451 37,880 49,851 48,633

Total Scope 1 & 2

43,205

36,077

35,525 40,549 54,409 53,753

Scope 3

6,789 9,285 8,952 10,091 11,740 11,483

Total Scope 1, 2 & 3

49,994 45,362 44,477 50,641 66,149 65,236

Energy and water consumption

 

Total net energy consumption (GJ)

178,648

146,897

146,099

171,625

238,314 244,252

Water consumption (kL)

458,758

415,016

443,055 516,176 663,115 668,344

Waste and recycling

 

Waste to landfill (tonnes)

-

2,872

2,663 2,862 3,724 3,288

Recycling (tonnes)

-

1,504

1,517 2,063 2,852 2,620

Total waste (tonnes)

-

4,376

4181 4925 6577 5,908

Waste data coverage across portfolio

-

88%

84%

91%

91%

83%
  1. FY08 represents the Group's base year.

ENVIRONMENTAL SUMMARY - Dexus WHOLESALE PROPERTY FUND

Metric

FY081

FY12

FY13

FY14

FY15

FY16 

Greenhouse gas emissions (tCO2-e) - Property portfolio

Scope 1

624

1,166

1,479

1,609

1,706 2,034

Scope 2

20,901

17,940

20,185

22,049

23,842 24,952

Total Scope 1 & 2

21,526

19,106

21,664

23,658

25,548 26,986

Scope 3

3,124 4,150 4,480 4,956 5,153 5,278

Total Scope 1, 2 & 3

24,650 23,256 26,144 28,614 30,701 32,264

Energy and water consumption

Total net energy consumption (GJ)

86,602

77,221

89,320

98,538 105,882 119,587

Water consumption (kL)

217,760

234,406

264,772

290,873 338,269 372,265

Waste and recycling

Waste to landfill (tonnes)

-

1,068

1,006

1,074

1,424

1,222

Recycling (tonnes)

-

573

623

838

1,051 1,012

Total waste (tonnes)

-

1,641

1,629

1,912

2,474 2,233

Waste data coverage across portfolio

-

79 68 83 85 69
  1. FY08 represents the Group's base year.

APPENDIX C - BUILDING NABERS RATINGS

OFFICE PORTFOLIO NABERS RATINGS AT 30 JUNE 2016

Dexus properties

NABERS Energy at 30 June 2016

NABERS Water at 30 June 2016

With GreenPower

Without GreenPower

Garema Court, 140-180 City Walk, Canberra

5

4.5 5

11 Talavera Road, Macquarie Park

5

5

4

Victoria Cross, 60 Miller Street, North Sydney

5

5

3.5

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

4.5

4

44 Market Street, Sydney

5

5 3.5

45 Clarence Street, Sydney

5.5

5

3.5

1 Margaret Street, Sydney

5.5

5

3.5

123 Albert Street, Brisbane

5.5

5.5

4

8 Nicholson Street, Melbourne

3.5

3 3

Flinders Gate, 172 Flinders Street, Melbourne

3.5

3

3

Flinders Gate, 189 Flinders Lane, Melbourne

3.5 2.5 1

Southgate - HWT Tower, 40 City Road, Southbank

5 4.5

4

Southgate - IBM Centre, 60 City Road, Southbank

4.5

4

3.5

Woodside Plaza, 240 St Georges Terrace, Perth

5

4.5

3

AXXESS Corporate Park, 321 Ferntree Gully Rd Mt Waverley

1.5 1.5 4.5

Third Party Funds Management properties

NABERS Energy at 30 June 2016

NABERS Water at 30 June 2016

With GreenPower

Without GreenPower

Gateway, 1 Macquarie Place, Sydney

5.5

5

3.5

324 Queen Street, Brisbane

4.5

3

3.5

360 Collins Street, Melbourne

3.5

2.5 1

452 Flinders Street, Melbourne

4.5

4

3.5

AM60, 42-60 Albert Street, Brisbane

5

4.5 3.5

1 Innovation Road, Macquarie Park

5.5 5

4

141 Walker Street, North Sydney

5.5

5

3.5

83 Clarence Street, Sydney

5.5

4.5

4

Co-owned properties

NABERS Energy at 30 June 2016

NABERS Water at 30 June 2016

With GreenPower

Without GreenPower

The Zenith, 821 Pacific Highway, Chatswood

5

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

39 Martin Place, Sydney

4 4 3.5

Australia Square (Tower), 264 George Street, Sydney

4.5

4.5

3.5

Australia Square (Plaza), 87 Pitt Street, Sydney

5.5

5 3.5

Governor Phillip Tower, 1 Farrer Place, Sydney

4

2.5 2.5

Governor Macquarie Tower, 1 Farrer Place, Sydney

EXEMPT EXEMPT

2.5

Grosvenor Place, 225 George Street, Sydney

4 4 4

Blue Tower, 12 Creek Street, Brisbane

3.5 3.5 3.5

Allara House, 48 Allara Street, Canberra

4.5

4.5

4

Customs House, 5 Constitution Avenue, Canberra

4.5

4.5

4

Nara House, 1 Constitution Avenue, Canberra

4.5

4.5

4.5

2 & 4 Dawn Fraser Avenue, Sydney Olympic Park

5

5

5.5

14-18 Lee Street, Haymarket

5

5

4.5

60 Castlereagh Street, Sydney

5

4.5

3.5

101 George Street, Parramatta

5.5

5

4

150 George Street, Parramatta

5.5

5.5

3.5

175 Pitt Street, Sydney

5.5

5

3.5

201 Miller Street, North Sydney

5

5

4

56 Pitt Street, Sydney

5

5

4

10 Eagle Street, Brisbane

4.5

4.5

4

145 Ann Street, Brisbane

5.5

5.5

4.5
Waterfront Place, 1 Eagle Street, Brisbane  5 5 4.5

11 Waymouth Street, Adelaide

5.5

5.5

4

108 North Terrace, Adelaide

EXEMPT

EXEMPT

EXEMPT

180 Lonsdale St, Melbourne

4.5

4.5 5

222 Lonsdale Street, Melbourne

4

4

4.5

385 Bourke Street, Melbourne

4

3.5

3

NRMA House, 46 Colin Street, West Perth

4

3.5

2

Alluvion, 54-58 Mounts Bay Road, Perth

5

5

4.5

RETAIL PORTFOLIO NABERS RATINGS AT 30 JUNE 2016

Co-owned properties

NABERS Energy at 30 June 2016

NABERS Water at 30 June 2016

With GreenPower

Without GreenPower

QV, Melbourne

2.5

2.5

-

Third Party Funds Management properties

NABERS Energy at 30 June 2016

NABERS Water at 30 June 2016

With GreenPower

Without GreenPower

Tweed City, Tweed

4

4

4.5

Smithfield Centre, Smithfield

3.5

3.5

4.5

Plumpton Marketplace, Plumpton

4

4 2.5

Beenleigh Marketplace

3 3 4.5

Sturt Mall

4 4

4

Willows Shopping Centre

3.5 3.5 N/A
 Deepwater Plaza  N/A N/A N/A