Sector-wide adoption of a net zero ambition is critical to achieving the global mandate to keep temperatures well below 20C whilst striving for 1.50C. The property sector’s influence on overall emissions is extensive.
In a new report, Climateworks and the Monash Sustainability Development Institute show almost half of Australia’s largest listed property companies have made commitments to reduce greenhouse gas emissions that closely align with the Paris Climate Agreement.
The Australia’s property sector is moving toward net zero emissions report examined all property companies listed in the ASX 200 and all of those required to report their emissions under the National Greenhouse and Energy Reporting Act. It is the first in a series focusing on key sectors of the Australian economy as part of the Net Zero Momentum Tracker initiative. It is designed to bring together and evaluate climate action commitments in order to help the property sector build momentum towards net zero emissions.
Examining 21 companies within Australia’s property sector* the report found that:
- Almost half of Australia’s largest listed property companies have made commitments to reduce greenhouse gas emissions that closely align with the Paris Climate Agreement.
- 29% of these companies have pledged to achieve net zero emissions by 2050 for their owned and managed assets. These companies represent 36% of total ASX200 property sector market capitalisation.
- A further 14% of these companies have made climate commitments that align with a pathway to achieve net zero emissions by 2050 but have not yet explicitly pledged to achieve this goal.
- 9.5% of these companies are not undertaking any emissions reduction activities.
- There is a missing piece of the puzzle. None of the property companies examined have a net zero target that addresses all of their emissions. For example, emissions from co-owned assets and tenants are often excluded.
*Property companies listed in the ASX200 and those required to report their emissions under the National Greenhouse and Energy Reporting Act 2007 (NGER Act).
There is encouraging appetite to move towards net zero emissions across key players in the property sector. Momentum into the future can be measured by the depth of commitments, both in the scope of the commitments made and in ensuring targets are met through setting a clear strategy to get there.
Next steps for the property sector
If your organisation isn’t listed in the report, this is the time to join growing momentum towards net zero. Companies are encouraged to pledge via the platforms list below, with a strategy that supports a future below 2 degrees Celsius or 1.5 degrees Celsius above pre-industrial levels.
Net Zero Momentum Tracker
Reaching net zero emissions is a core action of the Paris Agreement goal to limit global warming to well below 2 degrees Celsius and strive for 1.5 degrees. Many major global companies have incorporated this goal into their business strategies. In Australia, businesses and governments are doing the same, but there is no easily accessible place to assess these commitments, making them difficult to track.
The Tracker will tell the story of Australia’s growing momentum towards net zero from a total and sector-based perspective.