The Australian Government’s Clean Energy Finance Corporation (‘CEFC’) and Investa Office Management Pty Ltd (‘IOMPL’ or ‘Investa’), have announced a landmark co-operation agreement which will pave the way for the development of new energy efficiency initiatives and greater uptake of sustainable design principles and technologies in the management and development of commercial property across the industry.
Investa was selected for the agreement due to its strong track record of environmental performance achievements and innovation in minimising energy use and emissions across its portfolio.
CEFC will also invest A$110 million in Investa’s flagship wholesale fund, Investa Commercial Property Fund (ICPF). The ICPF property portfolio will be used to underpin many of the planned initiatives of the agreement.
Peter Menegazzo, Chief Investment Officer, Investa said: “Investa is excited to be working with the CEFC in this fantastic initiative. We bring extensive knowledge and expertise in the area of sustainable responsible investment and are committed to driving further change to the built environment, by sourcing and fostering new technologies in the management of office buildings and actively sharing our learnings and knowledge to advance the industry as a whole.”
CEFC Investment Funds lead Rory Lonergan said: “This CEFC commitment – our largest new commercial property commitment to date – establishes a landmark co-operation agreement that will promote the increased uptake of energy efficiency design principles and technologies in the built environment.
We see this agreement as being of immense value to the property sector generally, through its potential for collaboration with early stage development of technology solutions.”
The Planned Initiatives
Created by the Australian Government, the CEFC invests to increase the flow of finance into renewable energy, energy efficiency and low emissions technologies. The co-operation agreement with Investa aims to galvanise progress, education and participation in new technologies across the property sector, while engaging and/or working with universities and major sustainability and responsible investment bodies to facilitate cutting edge research and the development of new technologies.
Key focus areas of the agreement include;
Science Based Targets (SBT’s) – Leveraging Investa’s recent ground breaking announcement of a SBT of net zero emissions by 2040, working with the CEFC to focus on sharing information and learnings on setting and applying SBTs across the industry and amongst the broader portfolios of ICPF investors.
Optimising energy performance in office buildings industry-wide, by sharing information and practices relating to Investa’s energy efficient building management practices and methods for reducing emissions.
Online data sharing platform – Making Investa’s portfolio-wide energy consumption information available to companies developing clean energy technologies in the built environment and allowing ICPF buildings to be used as test sites for new technology.
Early stage collaboration on significant energy saving programs including portfolio-wide demand management programs and energy storage solutions in selected buildings, as well as engagement with the early stage angel investor sector in the area of clean energy technologies.
Foster partnerships with universities to support research and development of technologies which enhance indoor environment quality and/or provide advancement in the energy efficiency sector.
Co-participation in research and networking opportunities and major local and global summits involving ICPF investors and/or responsible investment and sustainability industry bodies.
Nina James, General Manager, Corporate Sustainability, Investa said: “Sustainability is embedded in every part of Investa’s business and building management operations.
We have a clear mandate to constantly innovate, leveraging research and data to inform and deliver market-leading management practices and results."
The CEFC agreement provides Investa with an unprecedented opportunity to further advance our market leading position by once again being first mover, in the identification of emerging technology that can be incorporated into the way we and the industry as a whole manage office buildings.”
Mr Lonergan said: “The CEFC recognises the importance of establishing these initiatives to help accelerate the adoption of integrated energy efficiency and renewable energy technologies and support Australia’s transition to a clean energy economy.”
An endorsement of ICPF’s long standing sustainability credentials
ICPF’s A$4.1 billion prime office portfolio is one of Australia’s highest quality portfolios, attracting more than A$2.2 billion in new equity since 2010. In October 2016, Investa announced it had successfully finalised A$600 million in new equity commitments and closed its first US Private Placement issuance of US$150 million, after being oversubscribed.
The fund is a global leader in responsible investment, achieving a 5 Star Green Star rating in the 2016 Global Real Estate Sustainability Benchmark, ranking second amongst Australian unlisted office funds and 19th globally.
Investa as manager, ranked as Australia’s second largest asset manager of core responsible investment in the 2016 Responsible Investment Benchmark Report and was also voted Property Funds Management Team of the Year in the Royal Institute of Chartered Surveyors (RICS) Oceania Awards.
Jason Leong, Fund Manager, ICPF said: “ICPF’s long-standing environmental performance track record make the fund an ideal candidate to lead the way in the agreed initiatives with the CEFC.
This leadership position delivers value across the business and affords a valued competitive advantage, attracting local and international investors seeking strong market and sustainability performance.”
Learn more about the landmark co-operation agreement between Clean Energy Finance Corporation (CEFC) and Investa, detailing the 6 key clean energy focus areas of this agreement below.