AMP Capital has launched an ambitious 2030 ESG strategy for its real estate business that aims to address key sustainability challenges including climate change, waste, biodiversity, social impact, accessibility and supply chain sustainability.
According to AMP Capital's head of sustainability, real estate, Chris Nunn said sustainability has become a dominant global economic risk and business megatrend that will transform industries and society.
“The real estate sector holds many of the solutions and is in a position to act now,” he said. “AMP Capital is committed to working with our industry peers, clients and customers to improve every day for future generations.”
“We want to shape a better future and this strategy marks a step change in our thinking around how we’re going to do that. This comprehensive sustainability framework addresses material environmental, social and governance areas, with a focus on six main initiatives that the business believes will have the most impact by 2030. I’m most excited about creating a conservation reserve of more than 4 million square metres, which we believe is a first for an Australian real estate company.”
The strategic aims that AMP Capital’s real estate business will work towards for 2030 include:
• to be zero net carbon for scope one and two emissions
• to create a biodiversity conservation reserve that is equivalent in area to its entire managed real estate portfolio – more than 4 million square metres.
• to improve accessibility for the one in five people who have a disability across its managed assets;
• and implement improved supply chain governance and work with partners to identify and address ESG-related supply chain risks such as modern slavery and materials safety.
To coincide with the launch of the strategy, AMP Capital has also released a research paper, Why sustainability matters in Real Estate. The paper explores the material environmental, social and governance (ESG) issues being faced globally, the key drivers for action, and the important role that the real estate industry, asset owners, customers, partners and the community play in driving change that delivers positive outcomes, while continuing to deliver strong investment performance.
“We look forward to working with our industry peers, our clients, our tenant customers, retailers and the community to address the many ESG risks and opportunities ahead of us, while ensuring we continue to deliver strong, sustainable assets that generate both environmental and financial benefits a long way into the future,” Mr Nunn said.
AMP Capital is one of the largest direct real estate fund managers in the Asia Pacific with more than $28 billion in assets under management on behalf of global investors.