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AMP Capital Investors

PRI reporting framework 2019

Export Public Responses

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PR 08. ESG issues in post-investment activities

08.1. Indicate if your organisation, and/or property managers, considers ESG issues in post-investment activities relating to your property assets.

08.2. Indicate whether your organisation, and/or property managers, considers ESG issues in the following post-investment activities relating to your property assets.

08.3. Describe how your organisation, and/or property managers, considers ESG issues in post-investment activities related to your property assets.

Effective ESG management is fundamental to the long-term investment performance of our clients' assets. Therefore, the entire investment team takes on the responsibility to identify, analyse and manage ESG risks and opportunities as part of AMP Capital's day-to-day property and asset management.

There are five main processes that assist AMP Capital in this active management of ESG exposures:

  • Life-cycle audits. Asset registers are kept for all relevant plant, equipment, fixtures and fittings. Asset registers inform a 10-year life cycle capital plan which identifies upcoming expenditure required to maintain or replace end of life items. ESG considerations, particularly energy efficiency, are taken into account in determining whether a like-for-like replacement will be made or an upgrade to a more efficient alternative.
  •  Research. In addition to the life-cycle analysis of the physical asset, we undertake regular in-depth research into factors that will contribute to its financial and ESG performance, including demographic analysis and tenant satisfaction surveys. These surveys help us determine the needs and expectations of our office portfolio's tenants and many of our national retailers in our shopping centre portfolio.
  • ESG strategy. AMP Capital sets an ESG strategy for each fund, including benchmarks, targets and performance indicators for various environment, social and governance issues. Asset level targets are set to ensure the Fund ESG targets are met. Implementing these strategies in managing assets helps ensure that long-term, sustainable performance is achieved for our clients. The activities pursued under these strategies are discussed in indicator sections below.
  • Performance analysis. AMP Capital monitors progress against fund- and asset-level ESG benchmarks, targets and performance indicators. These include environmental performance targets and compliance with legislative and internal policy requirements. Continued tenant satisfaction surveys help us measure how well we are meeting their needs and expectations, focusing our attention on our tenant relationships and, in turn, the investment performance of our clients' assets.
  • Development and refurbishment. AMP Capital's Development Team considers ESG factors throughout the development process, whether for green-field or existing sites, or redeveloping and evolving an existing asset in the portfolio for longer-term investment performance. Development and refurbishments consider ESG factors to manage risks, as well as help ensure the final development meets the needs of future occupants. Green Star ratings and AMP Capital's own policies are among the measures used to assess ESG factors during development and refurbishment.
  • Master-planning of a new asset development or redevelopment takes into consideration the interactions and impacts of the asset on its occupants (tenants) as well as the surrounding environment and community. The design and feasibility phases consider studies on environmental impacts, impact on transport, ground plane activation, over-shadowing, local demographics and the impact on services such as sewerage and the electricity network. ESG factors are again considered during the construction contract and may include prescriptive requirements for the demolition process, use of recycled materials, choice of new plant and equipment, safety of contractors, and impact on tenants and neighbouring communities.
  • Site self-assessments. We undertake regular self-assessments of potential ESG risks, including climate change adaptation risk assessments, site vulnerability self-assessments and health & safety audits. The property and operations managers are responsible for completing these self-assessments, which help us determine our exposure and develop plans to mitigate ESG risks, as well as quantify the mitigation costs.