Sustainable properties and places

Goodman’s business is centered on developing and owning high quality properties that are essential infrastructure supporting the flow of goods and date through the economy. As part of this we are optimizing our assets to provide sustainable and resilient properties and places. They are in strategic locations that are close to transport hubs and consumers for our customers.

Progress against targets

Target	Activity in FY24 and progress	Relevant UNSDGs
Carbon emissions from operations: Carbon Neutral Operations by end of FY251	Achieved annually since FY21 and on track to achieve again in FY24. Emissions calculation and verification process in progress.
Gross Scope 1 and 2 emission reduction2 of 42% (relative to FY21 baseline) by end of FY30	Scope 1 and 2 emissions have reduced by approximately 16% since FY21
100% renewable electricity use within Goodman’s operations by 20253	Expected to remain above 80% in FY24
Solar PV: 400 MW of solar PV capacity installed or committed between 2019 and the end of 20254	Added 24 MW of solar PV installations and/or commitments over the past year. Approximately 330 MW of solar PV installations and commitments at 30 June 2024
Maintain >95% occupancy rate overall	98% at 30 June 2024

Sustainable and resilient design approach  

We continuously review our design approach to help achieve our sustainability targets, and to help our customers and Investment Partners realize their own ambitions. 
 
Our approach is influenced by years of experience developing industrial and data centre properties and places, and our drive to innovate with smarter materials and designs. 

While our specifications vary across Goodman’s global regions, common sustainability features in our developments include:

• Strategic site selection close to infrastructure, consumers and transport
• Integrated energy-efficient design, including automated LED lighting
• Electrical sub-metering to monitor and measure performance
• Solar PV on rooftops to generate renewable energy
• Increasing installations of charging points for electric vehicles
• Water conservation such as rainwater harvesting and native landscaping
• Low volatile organic compound (VOC) materials and low carbon materials
• Facilities that support good health, such as bicycle storage, fitness equipment, showers and change rooms

Emissions reductions

Goodman sees emission reduction as a priority, and we have set ourselves targets to help achieve this. Our emissions reduction targets aligned with the objectives of the UN Paris Agreement to limit the global temperature increase to below 1.5 degrees. We're working to maintain our carbon neutral status for our global operations using the Climate Active Carbon Neutral Standard. Decarbonizing our embodied emissions and designing for efficiency through the building’s lifecycle in our development projects is our next challenge.  

Our carbon reduction commitments include: 

• A 42% reduction in absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 2030 from a 2021 baseline. These include our direct emissions, primarily resulting from the use of fossil-fuels and electricity across our operations. 
• A 50% reduction in square-meter intensity of Scope 3 GHG emissions by 2030 from a 2021 baseline covering the use of our buildings by our customers and the use of our buildings which we have sold.

When considering carbon emissions from our operations, we are focused on Scope 1 and 2, as well as the various components of Scope 3 that we can directly influence, such as embodied carbon on our developments. We are reviewing our targets associated with Scope 3 emissions and aim to comply with the impending Australian Accounting Standards Board disclosure requirements as soon as practically possible. 

Climate risk and resilience

Goodman is committed to taking action to identify, evaluate, mitigate, and monitor physical and transition risks across our global portfolio. Our aim is to shift our business to one that is less carbon intensive and more resilient to climate risks, while continuing to generate attractive financial performance. We focus on initiatives that we can influence the most through our own actions. Our approach includes monitoring global trends, technological advancements, emerging disclosure and reporting standards, and customer and investor expectations.

In 2020, we completed our first Task Force on Climate-Related Financial Disclosures (TCFD) climate risk assessment of our key physical and transitional risks. Reviewed annually, the scenario-based assessment identified our most material climate risks as: 

• Increasing temperatures and heatwaves
• Extreme precipitation events
• Windstorms (tropical and extra tropical)
• Severity of hailstorms
• Sea level rise.

For more information, read our TCFD report. 

Biodiversity plays a role in resilience

Goodman has a responsibility to do what it can to preserve and improve biodiversity across its global operations. Our preference for re-developing brownfield sites, and when needed, rehabilitating contaminated industrial environments, supports the circularity approach. It offers Goodman the opportunity to enhance the local environment and improve biodiversity as well as make other positive improvements. 

Our work in this area is well underway. We’ve established urban forests in Belgium and Spain, linked wildlife corridors in Western Sydney, planting urban ngahere (native forests) in Aukland, installed beehives in Germany, and expanded conservation areas at several of our sites.

We have commenced planning and defining our approach for Taskforce for Nature-Related Financial Disclosures (TNFD), considering practical biodiversity baselines, commonality among our global development teams, and flora and fauna assessments required for developments.