Most of AMP Capital's real estate portfolio is managed by two in-house property management groups: Office & Industrial, and Shopping Centres. In some locations where AMP Capital Real Estate does not have on ground staff (e.g. Western Australia and Canberra), we may appoint external agents to undertake these duties. ESG criteria are considered in the tender process for these agents. However, a small number of agents are appointed primarily for their geographical or asset-specific knowledge.
ESG issues for which external agents are responsible may include energy, water and waste efficiency, tenant satisfaction, workplace health and safety, contract management and community / stakeholder engagement.
AMP Capital regularly inspects the assets of third-party property managers and sets strategies for them to implement. These might include targeted improvements and capital expenditure to enhance an asset's environmental performance ratings as part of a new leasing campaign.
While third-party property managers contribute to AMP Capital's ESG risk management, we take responsibility for those issues internally and at various points in the investment and asset management process. Consulting with the third-party managers, we set operational performance objectives (e.g. improvements to NABERS energy, waste, water ratings) and the strategies to achieve them. These are captured in mutually agreed Asset ESG Plan documents, which the third-party manager implements with AMP Capital's oversight and support.