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Charter Hall Group

PRI reporting framework 2019

You are in Direct - Property » Post-investment (monitoring and active ownership)

Post-investment (monitoring and active ownership)


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.

Property Monitoring and Management

Charter Hall monitors key operational and environmental aspects of each property, through metering, monthly and quarterly reports on usage, utilising dashboards and suppliers. Environmental and operational targets on performance are reviewed monthly and achievements reported quarterly. 

NABERS ratings are reviewed and tracked annually and as of FY18 tracked against targets.  All ratings are publicly reported annually in the sustainability report.

178 Charter Hall offices, retail centres and industrial buildings have a Green Star Performance rating, resulting in Charter Hall having the largest Green Star footprint in Australia. These ratings will be reviewed annually and provide further opportunities to extend ESG considerations in property monitoring and management.  

Property fitout guidelines further identify ESG opportunities to enhance the operation and customer comfort of our properties.

Charter Hall's office precedent lease has achieved a Gold Standard Green Lease rating by the City of Sydney's Better Building Partnership.  

Charter Hall seeks further third-party certification of its property and investment management through investor surveys such as GRESB, DJSI, CDP and PRI.  These surveys identify the broad spectrum of ESG issues and provides Charter Hall international benchmarks to manage our property assets and measure our performance.

Property Developments and Major Renovations

Charter Hall has set development targets, for large developments, of a minimum 5 Star Green Star Design and As Built.  All new office developments will also seek WELL Certification.  In FY18, Charter Hall Perth and Melbourne tenancies achieved a Silver WELL Interiors rating.

Each property sector has identified ESG initiatives to be incorporated into their developments, either in their development or fitout guidelines. Engagement with our tenant customers in the development and renovation process also enables further opportunity for ESG initiatives.

All Charter Hall large developments partner with a local charity where Charter Hall and contractors raise funds for a charity program or infrastructure.  In FY18, Charter Hall undertook developments that raised funds for youth projects, medical research and homelessness.  In FY18, Charter Hall continued to pilot an employment project on one of its Victorian development sites, in partnership with two major contractors and community partners.

Property Occupier Engagements

Charter Hall undertake a range of engagement techniques with our tenant customers including an annual tenant survey, which are then compared to industry benchmarks.  Charter Hall engage with our customers through a range of other techniques including email, face-to-face meetings, joint initiatives and individual building and wider portfolio events (such as annual Earth Hour events).

Charter Hall recognise that our suppliers, such as facilities managers, concierge, cleaners, waste contactors and security are also a valued information source on tenant customer engagement and feedback.  Charter Hall works with its suppliers and utilises their systems to enhance the Group's customer engagement and respond to our tenant customer needs.  For example, our retail waste contractor, Veolia, undertook waste management plans for our retail portfolio, which commenced with engaging our tenant customers in New South Wales shopping centres, understanding their waste needs and practices and developing a waste management plan that reduced waste for both our customers and our retail centres overall.

Community Engagements

Charter Hall's community investment strategy, Pledge 1%, encourages our people and our places to make a difference in the communities in which we operate.  Charter Hall employees engage and volunteer in our local communities and our places provide space for community organisations to promote and provide local services and undertake programs.  Charter Hall partners with local and national community partners to expand our community investment. In FY18, Charter Hall contributed 330 personal and team volunteering days; $1.3 million in space to the community; and $600,000 towards community partnerships. Charter Hall engages with our investor customers through a range of techniques including investor surveys, face-to-face meetings, teleconferences and forums

Charter Hall engages with our government and industry stakeholders through a range of industry groups and associations.

Property monitoring and management

PR 09. Proportion of assets with ESG targets that were set and monitored

09.1. Indicate the proportion of property assets for which your organisation, and/or property managers, set and monitored ESG targets (KPIs or similar) during the reporting year.

(in terms of number of property assets)

09.2. Indicate which ESG targets your organisation and/or property managers typically set and monitor

Progress Achieved
          Pathway developed for a 2-degree reduction in emissions by FY2020
Achieve 2- Degree reduction in emissions by FY2025
Aspiration: Net Zero
          All assets have climate change adaptation plans by FY2020
          All assets have environmental management plans to AS 14001 by FY2020
          Development of 2-degree reduction pathway following Science Based Targets in FY18.
NABERS pathways to improved targeted ratings completed, for Office assets, in FY18
          All assets achieved climate risk assessments in FY17.  Climate change adaptation plans in development throughout FY18 tracking towards FY20 targets.
          In FY18 development of a draft Environmental Management Plan for rollout in FY19. Pre–certification audits were conducted across 10 office and industrial properties.
Progress Achieved
          National programs with communities and partners to curate creative and community programs in all large assets.
          Stakeholder engagement plans prepared by 100% of developments by FY2020
          Employment strategy developed for all large developments by FY2020
          Our Pledge made a difference in our communities contributing: 
• $600,000 in donations
- 330 Days of volunteering  
• $1.3 million or 17,798sqm of space
          Stakeholder engagement plans prepared and implemented in office and retail development projects.
          Employment approach developed, and two pilot projects undertaken in Melbourne and Adelaide office developments, resulting in 81% of participants achieving employment outcomes.
Progress Achieved
          Human Rights Framework implemented across all Charter Hall assets and operations by FY2020
          Wellbeing Strategy for our people and our places developed and implemented by FY2020
          WELL building accreditation sought for all large Charter Hall state offices and in new office developments by FY2020
          Human Rights Framework commenced with a review of supplier risk assessment.  Charter Hall Human Rights Policy adopted in November 2017.  Participation in supplier portal project.
          Wellbeing Survey undertaken for Charter Hall Employees by our Employee Assistance Provider. in FY17.  Ritualize program rolled out to all employees in FY18.
          Charter Hall Melbourne and Perth Offices achieved Silver WELL Building Interiors Certification. Three office development projects, Melbourne, Brisbane and Adelaide registered for WELL Building certification.

09.3. Additional information. [Optional]

Charter Hall outsources the facilities management of our office and industrial portfolios to CBRE.  The facilities management contract includes ESG KPI's which align with our targets in environmental (energy efficiency, water efficiency, waste reduction, climate resilience), social (stakeholder and community engagement) and governance outlined in our FY18 Sustainability Report.

Charter Hall requires all principal development contractors to meet our sustainability development targets throughout the development, including a minimum 5 Star Green Star Design and As Built ratings (for large developments), WELL ratings (for office developments), as well as participation in stakeholder engagement, employment and charity projects.

Charter Hall requires our waste contractors, to develop waste management plans, in line with our waste reduction targets in the FY18 Shared Value and Sustainability Strategy, with KPIs aligned to these targets.

Charter Hall has integrated sustainability elements in all new facilities management contracts to enable achievement of targets.

PR 10. Certification schemes, ratings and benchmarks

10.1. Indicate whether your property assets are assessed against certification schemes, ratings and/or benchmarks

10.2. List the certification schemes, ratings and/or benchmarks your property assets are assessed against and what proportion of your property assets they apply to.

          NABERS Energy and NABERS Water
Proportion of property assets these apply to

(in terms of number of property assets)

          GBCA Green Star Certification
Proportion of property assets these apply to

(in terms of number of property assets)

Proportion of property assets these apply to

(in terms of number of property assets)

10.3. Indicate if your organisation uses property specific reporting standards to disclose information related to your property investments’ ESG performance.

Australian NGERs

10.4. Additional information.

Charter Hall has 178 Green Star Performance ratings across its office, industrial and retail portfolio in FY18 and an additional 20 Green Star Design and As Built Ratings for our office developments, resulting in Charter Hall having Australia's largest Green Star footprint.

Charter Hall Group responded to PRI, CDP, DJSI, MSCI and FTSE4Good surveys in FY18.  Eight Charter Hall funds (two listed and six unlisted funds)  responded to GRESB in FY18.

All eligible Charter Hall office and retail assets seek a NABERS Energy and Water rating.

The FY18 Charter Hall Sustainability Report is prepared in accordance with GRI.

Property developments and major renovations

PR 11. Proportion of developments and refurbishments where ESG issues were considered

11.1. Indicate the proportion of active property developments and major renovations where ESG issues have been considered.

(by number of active property developments and refurbishments)

11.2. Indicate if the following ESG considerations are typically implemented and monitored in your property developments and major renovations.

11.3. Additional information. [Optional]

All large Charter Hall developments target 5 Star Green Star Design and As Built ratings.  All Charter Hall office developments seek Silver International WELL building Core and Shell ratings. 

All office developments seek NABERS Energy pre-commitments.

All large office and retail developments create charity partnerships and in partnership with the contractor and construction workforce raise funds for a local community organisation addressing a local social issue.  An employment strategy was developed and piloted at Wesley Place, Melbourne, and GPO Exchange, Adelaide, office developments in partnership with our builders and job training service providers. This resulted in 16 participants trained in construction with an 81% employment rate. Charter Hall is looking to scale this model across other developments next year.

Occupier engagement

PR 12. Proportion of property occupiers that were engaged with

12.1. Indicate the proportion of property occupiers your organisation, and/or your property managers, engaged with on ESG issues during the reporting year.

(in terms of number of occupiers)

12.2. Indicate if the following practises and areas are typically part of your, and/or your property managers’, occupier engagements.

12.3. Additional information. [Optional]

Charter Hall's Office standard precedent lease, has achieved a Gold Star Green Lease standard, in accordance with the Better Building Partnership leasing provisions.  These provisions encourage the landlord, occupier or both to carry out their roles in a sustainable way and relate to achievement of specific ESG outcomes.  Charter Hall's involvement, with the City of Sydney's Better Building Partnership, on both the executive committee and chairing the tenant working group has resulted in expansion of ESG considerations in leases and fit-out and development guidelines. 

Charter Hall retail and office fit-out and development guidelines include ESG considerations.  

Charter Hall engages annually with our office and retail tenant customers on Earth Hour.  Different properties, across the portfolio, hold a range of customer events, with some linking into our community and education partners.  In FY18, Charter Hall partnered with WWF to also engage with Charter Hall employees on climate change and provided volunteer activities for employees to build solar lights for communities in Papua New Guinea.

In areas where there have been adverse extreme weather events, Charter Hall has undertaken significant engagement with our office and retail tenant customers and shopping centre customers, to ensure continuity of trade, where appropriate, and management and communications of emergency situations. 

Charter Hall also undertakes annual tenant customer surveys across our Office, Retail and Industrial portfolios.

Charter Hall and our major retail waste contractor, Veolia, have engaged with our retail tenant customers in the development of the Retail Waste Management Strategy.  This engagement has resulted in feedback on waste generation, training as well as reductions in waste generation.

Charter Hall engaged with our industrial tenant customers on opportunities for renewable energy in developments and standing assets, increasing the Charter Hall renewable footprint and enabling our tenant customers the opportunity to better understand the benefits of renewable energy.  

Charter Hall partnered with Two Good to provide our tenant and shopper customers awareness on domestic violence and provide 20,000 meals to domestic violence shelters across Australia.

PR 13. Proportion of green leases or MOUs referencing ESG issues (Private)