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Centuria focuses on key initiatives to minimise our carbon footprint and improve energy efficiencies.
Initiatives are set with consideration of the unique real estate assets owned by the Group and aimed at maximising value for tenants and investors, while ensuring energy efficiencies are maximised. As we work towards our sustainability targets, it is imperative that Centuria sets initiatives that allow us to achieve zero scope 2 emissions and the elimination of gas and diesel from operations where practicable by 2035.
As an area of focus, initiatives to reduce the Group’s overall energy and associated emissions are communicated to the ESG Management Committee, who provide regular updates to the Centuria Culture and ESG Board Committee. The Group will continue to focus on energy efficiency as a priority, while exploring opportunities for further emission reduction strategies.
Last year, we disclosed procuring our energy for several of our tenants on embedded networks through a Progressive Purchasing Agreement (PPA). This year, we have identified that the PPA has been successful in generating electricity for 14 sites throughout Australia. We will continue to develop on this initiative to increase the amount of renewable energy equivalent utilised.
In terms of electrification, we are conducting a review of multiple assets within Centuria Office REIT to identify where heating, hot water systems and cooktops could be replaced by more efficient technological alternatives. This review, to be completed by an external party, will undertake market research on newer technologies and develop cost effective solutions to identify replacement of fossil fuel sources. The findings of this report will be analysed, and used to create a strategic plan to implement the necessary changes.
Lastly, approximately 2.2MW of solar capacity became operational across the industrial, retail and office portfolios. We are committed to continuing to expand the installed solar capacity across assets including a number of solar installations in progress at the time of reporting.
scope 1 (tCO2e)
scope 2 (location based) (tCO2e)
total energy consumption (MWh)
solar generated across office and retail assets in FY23
capacity of onsite solar installed in FY23 across office, retail and industrial assets
Industrial assets are mainly single tenanted, creating a unique opportunity to reduce emissions in partnership with our valued tenants. We seek to partner with our tenants and support their sustainability aspirations, connecting them with solar providers and the wider industry to develop innovative ways to reduce their emissions.
New industrial developments are focused on achieving leading green certification, on-site solar generation and high energy efficiency. These new assets when occupied by future tenants will be at the forefront of reduced energy consumption and lower, to almost zero, emissions in operation.
In FY22 the Centuria Industrial REIT partnered with one of our key tenants at two locations to install over 2.5 MW of solar.
In partnership with our key tenant Woolworths, a 1MW solar system was installed, supporting their goal to be powered by 100% green electricity by 2025.
In another effort supporting Woolworth's green goal, we have installed over 3,300 solar panels on a second asset.
Office assets are often multi-tenanted and contain common spaces and whole of building services. As an internal manager for these assets, Centuria is able to directly impact how energy and the associated emissions are managed. A focus on energy efficiency, through level two energy audits and year on year improvements under NABERS drives initiatives undertaken by the Group for our commercial assets.
Centuria Office REIT (ASX:COF) have engaged a third party supplier to conduct a feasibility assessment for solar installation across the COF portfolio. Buildings identified as being feasible to have solar installed on their rooftop form part of a wider plan to reduce COF’s overall emissions. 8 Central Avenue, Redfern, was piloted as the first asset to have on-site solar installed, with construction complete in FY23. This installation is expected to reduce emissions by 355 tonnes per annum, the equivalent of taking 147 cars off the road.
Our business in New Zealand has been making strides in expanding its portfolio with more energy-efficient buildings. In partnership with one of our clients, Hancocks, Centuria New Zealand has delivered new purpose-built premises named Te Whare Tauranga that allows the client to operate more efficiently while substantially reducing its impact on the environment.
Some of the key improvements made to the building are:
property’s annual power consumption
sourced for fitout such as reclaimed timber
Rainwater tanks (50,000L capacity)
used for building and vehicle washing and garden irrigation
Double glazing and window treatments
reduce heat and UV transfer by up to 70%
Centuria procures its energy, and energy for tenants on embedded networks, through a Progressive Purchase Agreement (PPA). A PPA is a contractual agreement between energy buyers and sellers allowing Centuria to purchase its energy for future demand, reducing the risk of rising energy prices. A PPA has added benefits to our assets as well as to our tenants. This win-win scenario makes the PPA initiative also very attractive to a broader tenant base.
A PPA is just one part of Centuria’s approach to energy management. The Group is also focused on a hierarchy energy management initiatives to reduce the Group’s overall energy consumption and associated operational costs.
|Efficiency||Energy reductions through the efficient use of resources. Includes the roll out of LEDs, smart buildings, sensors, etc. Energy audits and yearly assessment under NABERS (for commercial assets) focus where efficiency initiatives are implemented.||Efficiency measures reduce operational|
costs associated with energy consumption and reduce the total amount of generated emissions.
|On-site renewables||Installation of solar panels.||On-site solar generation locks in a portion of energy supply, providing a level of certainty regarding cost and supply.|
|Purchasing of energy through a PPA.||Energy supply is locked in years in advance, with cost also locked in, reducing the uncertainty of operational costs.|
1. All values in the above “FY23 energy and emissions data” summary has been assured, apart from ‘capacity of onsite solar installed’.
2. Centuria’s reporting scope for FY23 includes Australian and New Zealand assets under operational control and the Group’s employee offices. For more information, please refer to the Group’s ESG data summary.