Dexus: Tackling the Climate Challenge in Australian Property

Problem Being Solved

Buildings are long-lived assets that present significant opportunities for decarbonisation. We regularly look at ways to understand how our properties can lead the transition to a low carbon economy, while simultaneously protecting our portfolio from ongoing climate shifts.

The challenge is two-fold:

• Transitioning our portfolio to low carbon, as well as supporting the sustainability aspirations of our customers and suppliers
• Adapting our operations to climatic shifts by enhancing portfolio resilience, including supporting the health and safety of building occupants and maintaining business continuity

By finding solutions to these two aspects, we are future-proofing our business to benefit from climate-related opportunities and mitigate climate-related risks.

Solution

Dexus has committed to achieving net zero emissions across the group’s managed portfolio by 2030. Our net zero ambition is certified by the Science Based Targets initiative as aligned with a 1.5°C future. The net zero goal covers all property types under Dexus management, and Dexus is one of only seven Australian companies with a science-based emissions reduction target.

We have commenced one of Australia’s first integrated Renewable Energy Supply Agreements. Through this agreement, we have been supplying 40 properties with renewable energy to power their base building services, sourced from new and existing wind and solar projects.

We also joined RE100 which is committed to sourcing 100% renewable energy by 2030, and we continue to invest in energy efficient technology to support our net zero strategy.

Real Estate is also particularly susceptible to the physical risks of climate change. To enhance our portfolio resilience, we undertake regular climate change risk assessments to understand the exposure of our properties to climate change.

Management of physical risks at the asset level has been integrated into the Dexus Environmental Management System (EMS). Our EMS provides a group-wide structured framework that considers various climate change factors, such as higher temperatures, altered rainfall patterns, and more frequent extreme weather events. Climate change is also integrated into our transactions due diligence process.

Outcomes

Business benefits: by prioritising energy efficiency, we have sustained a 50.1% reduction in group office emissions intensity since 2008. This reduces Dexus’s carbon footprint and also generated financial savings in the form of avoided energy costs for us and our customers.

Attracting investment: our approach to integrating climate resilience across our properties and operations, has been attractive to investors who are focused on aligning their investments with the transition to the low carbon economy.

Engaging our people: our climate leadership means that we are aligned with the values and aspirations of our workforce, who are inspired by the challenge of climate change as they create spaces where people thrive.

Customer Attraction and retention: by driving energy efficiency across our properties, we meet our customers’ requirements to occupy energy efficient workspaces

Overall, our focus on sustainability, commitment to achieving net zero emissions by 2030, and our strong track record of climate action position us well to respond to the challenge of climate change.