Investa this week announced it is targeting 100% green finance across its core funds by 2025.   

Jason Leong, Group Executive, Head of Investment Management said: “Investa has consistently led the way in real estate green finance in Australia and continues to capitalise on its ESG performance and leadership, to meet investor demand for climate action. 

We are committed to playing a leading role in the transition to a low carbon economy. Green debt links our funding with an emissions intensity standard for our portfolio, creating financial opportunity via strong environmental performance.” 

Investa Commercial Property Fund (ICPF), comprised of 15 commercial office assets across the major Australian CBD markets, was the first real estate fund in Australia to issue a green bond in 2017. The fund has tagged its entire portfolio against the Climate Bonds Initiative (CBI) global certification criteria, which requires the portfolio to perform in the top 15% in their relative city in carbon intensity. To date the fund has secured more than $1.4 billion in green debt, which represents 86% of its total funding. 
Investa’s developments are also increasingly green debt funded, with two current developments having secured 100% green debt - Parkline Place ($700 million) and Indi Sydney City ($130 million). Indi was the first green loan secured in Australia for a build to rent development.      

Margot Black, General Manager, Corporate Sustainability said: “We believe capital can and should generate positive, measurable social and environmental impact alongside financial returns. 
Our green finance meets the stringent requirements of the global Climate Bonds Initiative (CBI) and Green Loan Principles, and as we develop our Impact Investment Framework and move towards 100% green debt, we will continue our leadership in sustainable finance.” 
The finance received under a green loan or bond must be used towards continually improving sustainability outcomes of the real estate and across business operations. For Investa this includes: 
  • Energy efficient processes in new or existing buildings 
  • Renewable energy investment, either onsite or through renewable energy procurement 
  • Reducing greenhouse gas emissions and waste reduction technologies, which decrease the proportion of building waste sent to landfill. 
  • Water use reduction and recycling measures  
Investa also launched its new sustainability strategy this week –Transform Tomorrow.

Peter Menegazzo, CEO, Investa said: “We’ve led the way in sustainability for over two decades. As the first Australian real estate business to make a commitment to a science-based target of net zero emissions, we have always believed in setting the bar higher. Now as we approach net zero, we are looking at what comes next. 

Our new sustainability strategy, Transform Tomorrow, defines our pathway to transforming our buildings, communities and our business. It broadens our areas of responsibility and connects us to our building communities and employees more than ever before. It increases our commitments to our investors and challenges us to constantly look for more innovative ways to develop and manage our buildings. It sets the bar higher for us, once again.” 

The strategy incorporates three core areas of focus - Sustainable Buildings, Thriving Communities and Resilient Business. 

Ms Black said: “To operate Sustainable Buildings, we are targeting net zero scope 1 and 2 emissions by 2025, carbon neutral developments from 2030, over 40% reduction in tenant emissions by 2030 and for all operational assets to be powered by renewable electricity from 2025. 

Our recent commitment to the United Nations Race to Zero shows our alignment with more than 4,470 organisations globally, who have committed to a 1.5°C future and to halving global emissions by 2030,” said Ms Black. 

To create Thriving Communities across workplaces and homes, Investa aims to deliver measurable impact through the positive actions of the ~100,000 people who occupy its buildings each day, through health and wellbeing partnerships, infrastructure and programs and best in class indoor environment quality and WELL ratings.   

A Resilient Business will be pursued through a 100% green finance target for our core funds and the development of a Responsible Impact Investment Framework. 
Ms Black said: “There is no longer a need to choose between doing well and doing good. Sustainability will be the determinant of future success, and our investors, employees and customers all expect us to do what we can, to transform the future of real estate through ESG.” 

Read more about Transform Tomorrow here.