Australia’s property sector has strengthened its ranking as a world-leader on environmental, social and governance (ESG) performance, according to the 2019 GRESB Real Estate Assessment.

The Assessment found that Australia and New Zealand real estate sectors outperformed other regions, with Oceania maintaining top position in the global rankings for the ninth year running.

Australia and New Zealand set a new record score, achieving a GRESB score of 81, up from 76 last year. The global average also increased climbing to 72 from 68 in 2018.

GRESB noted that more than half of the GRESB-5 star rated portfolios are located in the Oceania region.

While celebrating the global improvement in ESG performance, GRESB highlighted that more improvements are needed to meet key global goals and achieve the transition to a low-carbon, resilient and more sustainable future. It identified that a slower reduction rate for like-for-like emissions will not be enough to meet the 1.5-degree target set out by the Paris Climate Agreement. With only three net-zero portfolios in the 2019 benchmark, GRESB emphasised that much more still needs to be done to shift the sector to a sustainable path.

GBCA CEO, Davina Rooney, said Australian companies were providing global leadership and continued to raise the sustainability bar.

The Property Council’s Chief Executive, Ken Morrison, celebrated the results but noted there is more to be done and no room for complacency.

GRESB’s global leaders for Australia are:

Overall Global Sector Leaders (Achieved highest score for its sector)

• Office – Private: Australian Prime Property Fund Commercial, Lendlease
• Retail – Private: Australian Prime Property Fund Retail, Lendlease
• Diversified – Office/Retail – Private: Dexus Wholesale Property Fund, Dexus Property Group
• Developer – Residential: Frasers Property Australia Pty Ltd – Development Assets, Frasers Property Australia Pty Ltd
• Developer – Industrial – Goodman Group (GMG), Goodman Group

Global Sector Leaders (Achieved highest score for the combination of nature of ownership and sector)

• Office – Listed: Dexus Office Trust, Dexus Property Group
• Industrial – Listed: Frasers Logistics & Industrial Trust, Frasers Logistics & Industrial Asset Management Pte. Ltd.
• Diversified – Office/Industrial – Private: Frasers Property Australia Pty Ltd – Investment Properties, Frasers Property Australia Pty Ltd
• Diversified – Office/Retail – Listed: Stockland

More information here

GBCA Media Release here

Property Council Media Release here