EG incorporates ESG issues throughout the entire lifecycle of the investment process. Any risks, including ESG risks, identified in our due diligence process for assets acquisitions are included in our Investment Proposals to the Investment Committee. After acquisition, we continue to monitor these risks and report them quarterly to investors and Investment Committee members.
All assets are closely and actively monitored and managed for performance and compliance. An EG asset manager is dedicated to overseeing the performance and compliance of the asset. The asset manager is responsible for reporting all aspects of the day-to-day operation of the asset. This includes ensuring the asset is complying with all relevant environmental standards while seeking to improve its performance wherever possible. The asset manager is responsible for ensuring all relevant stakeholders are informed and consulted with on an ongoing basis, with feedback incorporated into the management of the asset. This provides a transparent system to safeguard that the asset is performing at its optimal level while ensuring ESG standards are met and where possible exceeded.
ESG risks and opportunities are considered throughout the investment lifecycle of each asset, and initiatives are designed and implemented to improve ESG outcomes. One example is that for the majority of EG assets, external consultants are appointed to assist with designing measures that improve building efficiency (electricity and water usage). For EG developments, we also have proactive and transparent community engagement throughout the planning and construction phases to determine what identify ESG issues and opportunities.
EG incorporates the following active management tools to identify and manage ESG risks:
- NABERS environmental ratings are undertaken for applicable assets. This can often be a key feature of the asset strategy.
- Performance monitoring for electricity and water consumption where possible.
- Audits of energy, water and waste for all assets to identify areas for improvement
- Lifecycle assessments of plant and equipment to understand the current state of assets to maximise energy efficiency and reduce carbon emissions.
- Site specific environmental and OH&S risk assessments.
- Encouraging high levels of tenant interaction to monitor tenant satisfaction.
EG is investigating pathways to net zero, initially for our HISOT portfolio and then extending to the remaining portfolio and at a corproate level. These targets are ongoing and therefore means that environmental performance is ongoing.
EG's Build-in-Good framework is dedicated to improving community and mental health and wellbeing of all stakeholders.
EG is also focused on achieving social objectives through its developments, including creating a sense of community, retaining heritage, creating public spaces and providing community amenities.
These initiatives include the ongoing review of our compliance framework and corporate policies at a corporate level. At an asset level, EG's discliplined acquisitions process is mandatory for all cap trans and asset management staff to adhere to.