Environmental Considerations

INTEGRATING GREEN BUILDING AND SUSTAINABILITY THROUGHOUT OUR BUSINESS

Growthpoint has embarked on a journey of sustainable development and operations that is changing the way we do business. As a prominent owner and manager of properties in South Africa, we are also growing our reputation as a pre-eminent green property developer. We do this to better meet the needs of our clients and ensure the long-term sustainability of our business.

Each sector has different levels of focus within sustainability. So, we have developed a sustainability strategic framework to highlight five key focus areas for Growthpoint as explained below:

Our sustainability strategic framework leads to identifying interventions of all types and standards. These interventions then flow into a governance framework. We call this the ‘Six steps to sustainable change’.

The six steps to sustainable change framework ensures that we use a suitable solution with a strong business case, which is aligned to the quality standards of the GBCSA, where applicable. It also ensures that we track how our interventions perform after implementation.

STEP 1
SUSTAINABLE SOLUTION IDENTIFICATION
Sustainable solutions can be identified either within the organisation or externally. Solutions need to be captured and documented to ensure the enhancement of organisational learning.

Innovation
Sustainable innovation will become harder to achieve as the GBCSA rating tools increase in maturity. Identification of innovative solutions within sustainability would be critical to be successful in the future.

STEP 2
FINANCIAL ANALYSIS
Financial analysis/modelling standards will be developed for all types of sustainable solutions. Focus needs to be given to both hard financial benefits (NPV, IRR, etc.) and soft non-financial benefits.

GBCSA ratings
Identified sustainable solutions should align with the GBCSA rating tools. A strong focus needs to be given to the GBCSA existing building performance rating tool.

STEP 3
PRODUCT VERIFICATION, PILOT and BENCHMARK
After a solution is deemed to be financially feasible and aligns with the requirements of the respected GBCSA rating tool, verification and validation of the solution is required. This can be achieved either by verifying the products’ specifications at a credible source or by conducting a pilot study obtaining critical test results. In addition, similar products could also be benchmarked both financially and technically.

STEP 4
IMPLEMENTATION READINESS ASSESSMENT
Before a product commences the implementation stage (large roll-out) it needs to go through an implementation readiness assessment. This will identify key focus areas and areas of concern ensuring a smooth implementation.

People readiness assessment
It is also important to identify the maturity of key clients to assist in the prioritisation of implementing a solution.

STEP 5
IMPLEMENTATION TRAINING and MARKETING
The first focus area would be to implement the identified solution. This would lead to the development of training material for both the property brokers and the client itself, highlighting the benefits and operational requirements. Marketing of a single property or property portfolio should be updated accordingly to ensure that both property value and rental income increase over time.

STEP 6
MONITOR

•	People behavioural change
•	GBCSA EWP tool
•	GBCSA existing building performance rating tool
•	GBCSA design and as-built rating tool

Manage

•	Manage building performance to retain GBCSA rating

OUR GUIDANCE OR BEST PRACTICE STANDARDS

Growthpoint uses the Green Star SA rating system, adopted and adapted by the GBCSA from the Green Building Council of Australia. Through local context studies, a rigid peer review system and expert input, the Green Star SA tools are thoroughly adapted to respond to the local market and environment.

The aim of Green Star SA is to provide the commercial property industry with an objective measurement for green buildings. It also recognises and rewards environmental leadership in the property industry. Each Green Star SA rating tool is developed in response to market demand (and sponsorship) and tailored for different building types and uses.

To support sustainability, and drive it forward, Growthpoint developed the Property Management Dashboard. By using this dashboard tool our staff can access building information, including sustainability features, building plans and the lessons we’ve learned about each of our properties. This ensures that we maintain and improve the performance of each building as well as create an organisational learning culture.

GREEN STAR SA RATINGS

Putting our commitment to green building into certified action, we have achieved Green Star SA ratings for over 20 of our buildings. For us, this is only the beginning. We are committed to growing our number of independently rated green properties.

New Developments – Design and As-Built Ratings

Growthpoint is well-recognised for its growing portfolio of award-winning green-rated buildings and it stays on the cutting edge of environmentally responsible technologies. Most of our new and refurbished buildings are designed to have at least a 4-Star Green Star SA rating.

Existing Properties – Existing Building Performance Rating

While the Green Star SA Existing Building Performance Tool covers the same environmental categories as the Green Star SA design and as-built tools, it focuses on measurable performance indicators such as energy and water management policies and plans essential to achieve environmental performance. Growthpoint has rated 10 buildings with the GBCSA Existing Building Performance (EBP) pilot tool. Several buildings have been identified for certification in FY16.

ENVIRONMENTAL COMMITMENT

The Growthpoint Board has approved an environmental policy which demonstrates Growthpoint’s commitment to responsible environmental conduct. We believe this goes beyond legal and regulatory requirements. Our Board, management and staff are committed to reducing the company’s environmental impact and continually improve our environmental performance. This approach is an integral part of our business strategy.

Growthpoint constantly monitors and improves our environmental performance in the context of our business. Some of the areas we focus on are climate change and carbon emissions, energy, water, waste and, where applicable, biodiversity. We are working towards reducing our use of resources and having positive impacts in these areas, wherever we face environmental considerations, whatever they may be. We do this by applying effective environmental management systems, stakeholder engagement and education.

We strive to ensure the buildings we own and manage are as environmentally friendly as possible and we incorporate new methods and technologies that also make business sense. We continually assess our buildings based on green building standards, and improve them where we can. When we undertake development and refurbishment projects, environmental considerations are essential.

We work with our people, clients, suppliers and other stakeholders to find the best approach within our operating parameters. Our ongoing efforts are multipronged, addressing issues that span across the business as well as individual projects.

We also work towards making a constructive contribution to national environmental objectives and carrying out local and international best practices, where fitting. Growthpoint actively engages on environmental issues at various platforms – national, local and international – as a representative of the property sector and a responsible business.

PRIORITIES: ENERGY, WATER, WASTE, CARBON EMISSIONS AND TARGETS

Growthpoint has set the following targets:

Water
All office buildings are to perform better than our internally set benchmark of 0.88kl/m² per year by 2020.

Energy
All office buildings are to perform better than our internally set benchmark of 200kWh/m² per year by 2020.

All new office developments must achieve a minimum 4-Star Green Star SA rating.

Waste
We actively pursue the diversification of waste from landfill over our whole portfolio and will be in a position to set adequate targets in FY16.

Emissions
A 10% reduction in carbon ton emissions (ton CO₂e) was the target set for a combination of Scope 1 and Scope 2 emissions on a 2011 base year with Scope 1 and 2 emission of 2 053.65. The objective was to reach a target of 1 848.30 ton CO₂e by 2016. In FY15 we have adjusted our carbon footprint emissions reporting period to ensure that it is aligned with our financial year. For FY14 our emissions were 1 991.17 ton CO₂e despite an increase in our assets. In the next financial year we will undertake two carbon footprints for FY15 and FY16. Due to the growing portfolio, we have realised the need to restate this target and will do so in the FY16 reporting period.

EXTERNAL AND INTERNAL STAKEHOLDER GROUPS ENGAGED

We are active within leading sustainability and green building organisations. A senior executive from our office sector was elected as a board member of the World Green Building Council and is also deputy chairman of the GBCSA. We also have representation on the South African Property Owners Association Sustainability Committee. Recently we became members of the National Business Initiative (NBI) where we take part in the National Energy Efficiency Accord Technical Committee as well as their various discussions relating to a range of business concerns including climate change. Growthpoint is acknowledged as a leader in its field, with many Growthpoint employees playing key roles in our industry and various industry bodies.

GREENOVATE AWARDS

Growthpoint and the GBCSA have launched a joint project to explore ideas for developing and setting up a student awards programme. The Greenovate Awards introduce university students to green building thinking and recognise excellence in application.

In this way Growthpoint, with the GBCSA, is promoting innovative environmental thinking as agents for positive change. We’re excited to see the ideas the students present.

The Greenovate Awards competition targets students in their honours year from the property, construction and quantity surveying departments. The pilot programme is underway at University of Cape Town, Wits University and University of Pretoria. The competition will test the interests and perceived value of both the students and the faculty before it expands to other selected universities.

Round one of the competition takes place internally, within each tertiary institution. Each university decides its own internal selection and judging process. Each university selection panel will choose the top two projects submitted by their students. These projects will be invited to enter round two of the competition where the top performers from each institute will compete against one another for a grand prize.

Growthpoint has successfully presented and launched the Greenovate Award competition at all three universities. The groups of students interested have registered their projects online, and we are in communication with registered students about the competition.

GREENX^5.0

We have launched an internal campaign, GreenX^5.0 as our commitment to increase energy and water efficiencies in all our commercial buildings to be on par with the GBCSA Energy and Water Benchmark (EWP rating). The EWP rating was developed on international standards, where 5.0 represents the benchmark on a rating scale between 0 and 10. Participating buildings have been identified and a baseline set by independent consultants. We have worked with the NBI on this and look to enhance the knowledge and application among our employees. This campaign requires participation by facility managers in all stages of the project. The buildings will be judged on improvements made in the latter part of 2015.

SUSTAINABILITY ROADSHOW

During March 2015 our sustainability team presented our environmental sustainability strategy to key stakeholders in Durban, Cape Town and Johannesburg. This sustainability roadshow was an information sharing campaign focused on Growthpoint’s sustainability strategy. We included key clients from our three South African portfolio sectors, as well as senior management. The roadshow marketed the financial benefit of our green buildings and highlighted our various campaigns to improve the quality of our buildings.

MAJOR ACHIEVEMENTS IN FY15

•	Growthpoint continued to play a leading role in carbon disclosure reporting in the real estate sector in Africa
•	Growthpoint was the proud recipient of the Nedbank Capital Sustainable Business award in the category of infrastructure and renewable energy for the second successive year
•	We received another prestigious SAPOA Award in FY15 — the Innovative Merit Award 2014 for Tshedimosetso House
•	Growthpoint won the LUX International Project of the Year award for the sheer scale of our low-energy lighting installation programme over our whole portfolio
•	Kirstenhof Office Park became the 100th Green Star SA rated building. It achieved a 5-Star Green Star SA Existing Building Performance rating
•	Growthpoint has achieved the largest portfolio of green rated buildings in South Africa
•	Second year participation in the Global Real Estate Sustainability Benchmarking Survey (GRESB).

MAJOR ENERGY EFFICIENCY AND ALTERNATIVE ENERGY PROJECTS TARGETED

•	Replacing basement lighting with LED technology is a main focus in our office sector
•	Solar projects for our retail and office sectors will get our top attention. We currently have 714kWp solar capacity installed and have approval to add another 1.45MWp
•	We are investigating installing electric vehicle charging stations at selected sites
•	We are exploring using gas to generate electricity
•	We currently have a pilot plant up and running to turn waste into energy. Success of this plant will dictate further roll-out.