The acceleration of e-commerce has made the global industrial asset class increasingly sought after.
Key to Goodman’s ongoing success, and a shift we’re already seeing, is the allocation of capital towards investment in sustainable, automated logistics real estate which is driving the modernisation of supply chains. We believe that our sustainable approach will help to deliver the right outcomes while allowing us to remain relevant to capital markets.
We prioritise tangible improvements that are material to our business. These include building properties in the right locations, generating and using renewable electricity, and measuring the carbon footprint of our properties and operations. Our sustainability approach is about practical initiatives that drive long-term value for our business and stakeholders.
This year, our global operations achieved carbon neutral status. Now we are ready for the bigger challenge of reducing the embodied carbon in new developments.
The global property sector currently accounts for almost 40% of total greenhouse gas emissions, according to the World Green Building Council, with 11% attributed to embodied carbon. Goodman is taking a leadership position in the sector’s objectives to reduce its emissions.
Our teams are focused on ways to decarbonise our development projects. We are measuring the volume of embodied carbon emissions in our development projects globally and engaging with our supply chain to better understand how to avoid, reduce and offset embodied carbon to accelerate our move to carbon neutral buildings.
Supporting our efforts to decarbonise, we are increasing our use of renewable energy, highlighted by our Australian business switch to 100% green power this year. We are continuing to invest in large scale solar energy under an ambitious target set in 2019, committing to 400MW of solar PV by 2025. As at 30 June 2021, we had installed or committed to approximately 125MW with more large installations planned for 2022.
Over A$700 million is earmarked for investment in solar PV, energy efficiencies and initiatives to reduce and offset carbon over the next five years.
Goodman’s people around the world showed agility and determination to support our customers and continued to grow our business in a sustainable way. Flexible working is our new normal. The approach suits our culture and global operations. We have created an environment for our people that prioritises wellbeing, flexibility, and technology-enabled learning and development.
We recognise the value of collaboration and diversity in our teams, our business and our customers and we strive to maintain a safe and inclusive workplace, where all talent is considered equal.
A priority in the coming year will be listening, learning and reflecting on reconciliation with Australia’s First Nations peoples. We look forward to sharing our contribution towards meaningful, long-term reconciliation.
For our global charity partners, it was another full year of pandemic fallout. We remained steadfast in our efforts to not only help our Goodman Foundation partners survive but to rise to the challenge.
We remain committed to long-term sustainable solutions implemented across our business to achieve our ESG targets. I’d like to thank our global teams, customers, Investment Partners and all other stakeholders for their continued support and contribution to Goodman’s sustainable growth.
Sincerely,
Greg Goodman
Group Chief Executive Officer
