Goodman’s 2030 Sustainability Strategy guides our ESG targets and initiatives, designed to help us continue to build a truly sustainable business.
We regularly review our ESG targets so we can respond to global trends, emerging disclosure and reporting standards, and customer and investor expectations. Our priority is to shift our business to one that is low-carbon and resilient, while continuing to generate sustainable returns, strengthen our ethical and responsible practices, and deliver positive stakeholder outcomes.
We encourage our workforce of close to 1,000 people to work together as a global team to meet our ESG targets. Our sustainability-linked remuneration targets promote the integration of sustainability within our core business. Learnings are shared between regions, with a view to implementing promising new initiatives and pilots elsewhere in the business.
Goodman’s material issues help us prioritise what matters most, especially in the current economic landscape. We consider ESG issues to be material if they have the potential to impact our financial performance or reputation, or the expectations of our stakeholders.
The following eight material ESG priorities inform our 2030 Sustainability Strategy and targets:
Each of these issues is critical to how Goodman’s business can make a positive impact in the world. We review them regularly, so they remain dynamic and current. This review is a constant process of evaluating emerging trends, seeking feedback from our customers, investors, and investment partners, and considering the economic context, both globally and by region.
Feedback received from a group of key Goodman investors in February 2023 indicated that they were broadly supportive of our material issues and disclosure approach. Other feedback received suggested we increase our use of metric-based targets, in addition to our qualitative ESG disclosures within the Taskforce on Climate-related Financial Disclosures (TCFD) program, as well as increase efforts to reduce embodied carbon.
Emerging ESG concerns will continue to influence our business strategy. These include biodiversity, the upcoming Taskforce for Nature-related Financial Disclosures (TNFD) and First Nations engagement.
Climate and Sustainability Standards from the International Sustainability Standards Board (ISSB), as well as TNFD, will drive reporting on sustainability, climate, and biodiversity-related risks and opportunities over the next few years. Goodman’s annual sustainability and TCFD reporting to date is a solid foundation for the incoming ISSB disclosures, including how we respond to physical and transition risks, and our capacity to adapt our business strategy over the short to long term.
Goodman’s business model is focused on owning, developing and managing high-quality properties in strategic locations close to large consumer populations.
For our existing properties, we optimise energy and water efficiency, install sub-metering to manage, track and improve performance, and we’re increasing the installation of solar PV. For our new developments, we incorporate measures to improve the sustainability and resilience in our specifications. Solar PV installations and EV charging stations are increasing in number as well as battery storage in regions where it is feasible.
We take a building lifecycle approach in most regions too, to see where we can reduce upfront and operational carbon emissions. This lifecycle approach also supports our customers to meet their sustainability targets and our investors’ net-zero portfolio targets.
In land-constrained markets, Goodman is optimising land through its multi-level developments. Our extensive experience in developing multi-level buildings includes nearly 50 properties in Japan, Hong Kong SAR, Mainland China, Australia, and Continental Europe.
Our preference for urban infill development sites places our customers close to transport hubs and consumers, which can reduce transportation-related emissions as well as costs.
Repurposing brownfield sites and existing under-utilised buildings into highly appealing and modern business properties and places, can lead to positive environmental, social and community outcomes. In particular, our teams in Continental Europe and New Zealand have improved circularity benefits at these sites to the point where they are reusing and recycling around 90 percent of existing site materials onsite or locally.
Delivering on the proactive response to climate risk that investors and investment partners are seeking, remains a priority for Goodman. As a global leader in the industrial and logistics real estate sector, we are taking steps to evaluate, mitigate, and monitor physical and transition risks in our operating regions.
True to our strategy, we are developing properties close to consumers that prioritise efficiency and climate-resilience. We’ve been measuring upfront embodied emissions of our developments since 2021, and engaging with our supply chains, either directly or through industry groups, on low-carbon solutions and building materials.
Goodman’s Board and Sustainability and Innovation Committee oversee our climate risk management approach. The Committee oversees our climate disclosures and progress with our efforts to reduce emissions, aligned with our validated science-based targets. The Board and the Committee oversee our other climate-related targets, including onsite renewable electricity solutions for customers, and maintaining Goodman’s own carbon neutral operations. Our approach to managing risk across Goodman’s global operations is captured in our risk management framework, risk register and Group Investment Committee process.
Goodman regularly engages with our various stakeholder groups to understand their priorities, anticipate their needs and build strong relationships for the long term.
We prioritise effective and timely dialogue with our stakeholders including our customers, investment partners, securityholders, debt investors, our people, suppliers and local communities. Further information on how Goodman engages with its industry peers is covered in the Corporate Governance and Performance section.
We disclose our ESG performance through multiple channels and provide regular updates via Goodman’s website, our Sustainability and Annual Reports, and ESG reporting benchmarks, in addition to the channels outlined below.
Our commitment to sustainability at Goodman is embedded in our operations. And we know that engaging our whole team, not just those employed in sustainability, is a key factor in achieving and hopefully exceeding our sustainability goals.
Three years ago, our Continental Europe (CE) team began Sustainability Week to raise awareness and inspire action in the region’s team of around 200 employees. This year, the week started with an exclusive keynote by British architect, Michael Pawlyn, known for his work in biomimetic architecture or ‘designing with nature’. Given the synergy with Goodman’s own steps into biodiversity projects, biophilia and innovative landscaping, it’s not surprising that feedback from the CE team on his presentation was positive.
Sustainability Week continued with biodiversity facts shared on Goodman’s internal social media platform Yammer, and with employees contributing ideas, photos and videos. By provoking interest and awareness, the annual event will continue to prime all Goodman people in CE to see how they can make a meaningful difference in our sustainability efforts too.