The Charter Hall Climate Risk Assessment process considered vulnerability, exposure and weather and climate events and how they interact to define asset risk. Climate change projections and exposure to natural hazards were carefully selected considering the likelihood of risk to any of Charter Hall properties, including:
- Increase in mean temperature
- Increase in extreme temperature
- Sea level rise
- Present exposure to bushfire and future projections for bushfire
- Historical exposure to extreme storms and future projections for extreme storms
- Historical exposure to cyclones and future projections for cyclones.
The Charter Hall climate change mitigation plans review the climate-related risks in alignment with the Charter Hall risk matrix and against the matrix likelihood and consequence scales. Once the likelihood and consequence of a risk were determined they are combined to estimate the level of risk using the risk assessment matrix. Consequence assessment included a number of success categories in line with the AGO guidelines for climate change impacts and risk management (AGO 2007). Risks and materiality threshold points for climate-related risks are also integrated into emergency response and management plans and general operational procedures.
Since 2017, Charter Hall has been undertaking climate change adaptation plans which outline, for each building, risk mitigation approaches for management and operation of buildings, in accordance with Charter Hall risk management processes.
The annual Charter Hall strategic risk review also integrates climate-related risks into the overall ESG risks, which is then determined against other company risks and integrated into the Charter Hall Risk Appetite Statement.
The Charter Hall Science Based Target pathway aligns with IEA’s Energy Technology Perspectives 2 degree scenario and the IPCC RPC 2.6.
Within the Australian regulatory context, Charter Hall annually reports to the National Greenhouse and Energy Reporting Regulator. Charter Hall also participate in a range of industry bodies, such as the Property Council of Australia, Green Building Council of Australia, and the City of Sydney Better Building Partnership which advocate for energy and carbon policy and certainty outcomes within the Australian building codes and regulatory framework.