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Sustainability

As providers of essential infrastructure for the digital economy, we recognise the impact that our business has on the planet and communities that we operate in. That’s why ESG is an integral part of Goodman’s business strategy, with long-term sustainability thinking and goals front of mind.

Goodman’s 2030 Sustainability Strategy  sets out clear targets to have a positive environmental and social impact across our three pillars - sustainable properties, people and culture and corporate performance. Our sustainability approach has short and long-term initiatives in place to make an endurable, measurable and meaningful difference to our business – and our people, customers, partners, investors, community and planet. 

Goodman’s 2030 Sustainability Strategy shapes all aspects of our business by aligning with our purpose and is helping us transition to a truly resilient, responsible and low-carbon company. It sets out clear targets to have a positive environmental and social impact across our three pillars – sustainable properties, people and culture and corporate performance. Our sustainability approach has short and long-term initiatives in place to make an endurable, measurable and meaningful difference to our business – and our people, customers, partners, investors, community and planet.

The three pillars provide the framework and capture the ESG priorities and targets of our global business. Our pillars are based on material ESG issues that set the context for our long-term and short-term initiatives, which we track, measure and report on annually. Read more about our sustainability initiatives in our 2022 Sustainability Report.

Pillars

Material drivers

The material issues which shape our sustainability strategy

Each pillar in our sustainability strategy is shaped by our material drivers. These drivers are dynamic and reviewed against    our sustainability targets for effectiveness and suitability. They are also reviewed against current and emerging global ESG trends, our external stakeholders’ priorities, and the broader economic and social context. 

An independent review was completed on our ESG drivers in 2022 with our original list of six material drivers expanded to the eight below: 

  • Actively contributing to the Net Zero transition 
  • Owning strategically located properties close to consumers in key global markets
  • Developing and adapting innovative, efficient, and flexible properties with a future focus
  • Demonstrating Goodman’s values and promoting diversity, inclusiveness, and social equity
  • Investing responsibly with defined governance and sustainable capital structures
  • Promoting workplace safety and wellbeing for all
  • Delivering resilient assets that support human health and value natural capital
  • Influencing the sustainability practices of our value chain

Supporting the United Nations Sustainable Development Goals

The United Nations Sustainable Development Goals (UNSDGs) are a call to action to address the world’s most significant challenges including climate change, poverty, gender equality and good health and wellbeing for all. 

Our 2030 Sustainability Strategy and ESG targets are in alignment with 9 of the 17 SDGs which are most relevant to our operations. Our progress towards our targets helps towards solving some of the world’s biggest challenges.

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Climate risk

Responding to climate risk

Goodman’s Boards and management team are committed to addressing climate risk at the highest level of the organisation. We work to maintain our understanding of current potential exposure to risks, gauge their impact on the business and identify meaningful mitigation responses.

Our view of risk goes beyond the direct physical risks to our assets posed by climate change. It also includes transitional risks to our business that relate to shifts in policy, regulatory and disclosure obligations, insurance impacts, and the market broadly. 

Our Climate Disclosure Statement (TCFD) sets out the steps we are taking to identify, assess and manage climate change risks and opportunities in accordance with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. The statement is reviewed annually.
 
This year, we also established our 2030 science-based emission reduction targets, which are considered ambitious and align with the 1.5°C goal of the Paris Agreement. 

Actively adapting

Our efforts to improve resilience across Goodman’s portfolio are an important part of our strategy. We aim to develop properties that are flexible with greater resilience to intensifying climate-related events. 

Our commitment to reduce carbon in the development process and provide buildings that generate energy have created transformative shifts in our design process. They support the broader commitments that Goodman, as well as many of our customers and investment partners, have made towards reducing emissions.  Our targets will be achieved through collaboration and alignment across the entire value chain. 

Our properties also need to adapt to shifting customer and market dynamics. The value of strategically located properties and accessibility for customers remain integral and supports our long-term approach to real estate. 

Supply chain

Global supply chain ethics

We recognise we have an opportunity to influence the sustainability outcomes of a value chain that consists of over 8,000 suppliers. In 2022, Goodman developed its Sustainable Sourcing Framework. The Framework provides direction to achieve Goodman’s overarching sourcing and supply chain objectives globally. The Framework will help us to protect human rights within our supply chain and to mitigate the risk of modern slavery, as well as respond to the social, environment and governance targets in our 2030 sustainability strategy. 

We want our supply chain free of any form of modern slavery, including child and forced labour and other human rights abuses. Managing this risk is an ongoing responsibility. Goodman will not knowingly engage in these practices, or partner with any supplier who engages in these practices. 

View our Modern Slavery Statement, 2022 to see how we assess and manage these risks

ESG benchmarks

We participate in ESG benchmarking programs around the world to measure and communicate Goodman’s ESG performance to our stakeholders. They also allow us to identify opportunities for improvement.

 

Global Real Estate Sustainability Benchmark (GRESB)

Over the decade Goodman has been a participant in GRESB, we have continually improved our scores and increased our number of participating entities globally. This year, 10 of our Partnerships made submissions, with the results due for release late 2022. 

2021 highlights:

  • Goodman Group maintained its ‘A’ rating for its public ESG disclosure
  • Goodman Japan Core Partnership achieved 5 Stars and Sector Leader for the fourth consecutive year
  • Goodman Australia Partnership achieved joint overall Regional Sector Leader
  • Goodman UK Partnership was ranked First in the Development benchmark

 

Sustainalytics risk rating   

In 2022, we received an ESG Risk Rating of 9.5, where we were assessed as being at ‘Negligible’ risk of experiencing material financial impacts from ESG factors – a strong result.

 

MSCI ESG Index 

In 2022, our ESG rating improved from ‘A’ to ‘AA’, reflecting our robust corporate governance and anti-corruption controls.