Goodman is a leader in environmental social governance (ESG). We have a long-term people-focused approach that looks to achieve positive outcomes for our business, our stakeholders and the world.
Building a platform for authentic and positive change over the next decade is important to Goodman. We will continue to work closely with our customers, our investors and our people to decarbonise, to mitigate climate risk and to boost biodiversity.
Goodman’s 2030 Sustainability strategy is about transitioning our business into a truly resilient and low-carbon company. The strategy is based on our people and culture, our engagement with stakeholders and our status as a trusted investment manager and partner in the community. It shapes all aspects of Goodman’s business and is one important way we measure our success.
Our strategy is based around three pillars:
Our sustainably designed, energy-efficient and professionally managed properties are strategically located and designed to meet the business needs of our customers, and to remain resilient to tomorrow’s global challenges.
Our workplaces promote the health, safety and wellbeing of our people and our customers.
Our people are recruited and rewarded based on their commitment to our values, their local expertise and their long-term strategic and ethical thinking.
Our capital structure is sustainable and we have a positive impact in our global communities through the Goodman Foundation. We promote strong leadership and governance, engage regularly with our stakeholders and measure and disclose our financial and community impact.
Our Sustainability Strategy involves 12 targets that are material to our business. The targets correlate with nine of the 17 UN Sustainable Development Goals.
| 03 Good health and wellbeing |
| 05 Gender equality |
| 07 Affordable and clean energy |
| 08 Decent work and economic growth |
| 09 Industry, innovation and infrastructure |
| 11 Sustainable cities and communities |
| 12 Responsible consumption and production |
| 13 Climate action |
| 15 Life on land |
Our development specifications maximise energy efficiency, generate renewable energy and enhance our customers’ wellbeing. We understand the value of strategically located properties and the environmental benefits of repurposing brownfield sites into innovative new facilities.
Our properties are designed to be as climate resilient as possible and include sustainable features that create greater amenity as well as appeal to changing customer needs.
| Material drivers of our strategy |
| Sustainable design and management |
| Strategic locations |
| Customer attraction and retention |
| Climate risk and resilience |
| Carbon reduction strategies |
| Smart energy solutions |
| Flexible and adaptable properties |
| Target | Progress | |
| 400MW of solar PV capacity in operation by 2025 |
A further 70MW of solar PV installed or committed to during FY21 taking Goodman’s global installations to approximately 125MW. Targeting an additional 75MW in FY22 subject to planning approvals. |
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| 100% renewable energy use within our operations by 2025 |
Finalised an agreement to start using 100% green power in our Australian operations from 1 July 2021. This will raise our global energy usage from renewable sources to approximately 60%. Continued investing in solar to increase renewable energy across our property portfolio. Looked at opportunities to generate renewable energy certificates to compensate for limited renewable options in some markets. |
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| Carbon neutral operations by 2025 |
Achieved carbon neutrality for our global operations in FY21. This includes emissions within our operational control and excludes embodied emissions from our developments and our customers’ emissions. We will continue to lower our operational emissions and increase our use of renewable energy. |
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| Maintain >95% overall occupancy rate | Achieved a 98% occupancy rate. |
Goodman’s global success in industrial real estate is founded on our capabilities, expertise and governance structures. Goodman’s Risk and Compliance Committee oversees the Group’s response to climate risk and ESG matters, including our risk management framework.
We engage regularly with stakeholders and disclose our ESG performance to maintain their trust. Meanwhile, our financial resilience allows us to make a tangible difference to the lives of vulnerable people through the Goodman Foundation.
The Global Real Estate Sustainability Benchmark (GRESB) is the leading ESG survey for the real estate sector and one of the main ways we communicate our performance. GRESB analyses and scores a range of ESG indicators and gives detailed insights to investors. In 2021, Goodman responded for eight entities and scored well, achieving Sector Leadership status for Goodman Japan Core Partnership (Stabilised benchmark) and Goodman UK Partnership (Development benchmark) within their respective peer groups.
| Material drivers of our strategy |
| Sustainable operations and results |
| ESG performance |
| Responsible investment |
| Environmental stewardship |
| Sustainable capital structure |
| Stakeholder and community engagement |
| Target | Progress | |
| Retain investment grade credit rating |
Continued to meet financial targets to underpin capital sources and retain credit rating. Maintained credit rating at BBB+ (S&P) and Baa1 (Moody’s). |
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| Adopt the TCFD guidelines for climate risk assessment and disclosure by 2022 | Adopted Task Force on Climate-related Financial Disclosures (TCFD) guidelines in 2020 and published our first TCFD statement one year ahead of target. | |
| 4 Star Green Star GRESB rating average |
Submitted GRESB responses for eight Goodman entities with results due in late 2021. Achieved strong results in the 2020 GRESB survey including:
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| $50 million in social investment by the Goodman Foundation by 2030 | The Goodman Foundation contributed more than $6.3 million to community and philanthropic causes, including $400,000 raised by our people and 5,360 pro-bono hours. |
At Goodman, we value diversity, health, safety, high standards of behaviour and wellbeing – knowing that our people are our greatest asset. We provide them with contemporary technology to allow for efficiency, productivity and flexible working, which suits our culture and keeps our people safe.
Retention of our people remains high due to an effective employee equity plan, internal development programs that reward and advance high potential employees and challenging, yet exciting, work opportunities. Our target is to have 40% female senior management representation by 2030, achieved through succession planning, employee development and talent management strategies that focus on senior women with expanded roles and exposure to large customers or investors.
Globally, our developments are increasingly featuring design aspects that support our customers’ health and wellbeing. To further their comfort and convenience at work, Goodman’s properties have health and recreation facilities, breakout spaces, green areas and onsite dining options.
Meanwhile, our work culture promotes a safe and inclusive working environment. We focus on the safety of our people and contractors and prioritise business ethics and human rights in our global supply chain.
| Material drivers of our strategy |
| Workplace safety |
| Group and regional leadership |
| ESG performance targets |
| Diversity and inclusiveness |
| Promotion of the Goodman values |
| Social equity |
| Customer wellbeing |
| Target | Progress | |
| Safe working environment |
Put a global safety framework in place that prioritises safety standards and the management of critical risk controls. Rolled out safety training and contractor management procedures. Unfortunately in FY21, four fatalities occurred on development projects under the control of our Principal Contractors. While Goodman is not responsible for the day-to-day management of works on these projects, we actively monitor them and will be working to introduce improved safety standards in all our regions. |
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| Global supply chain ethics policy |
Expanded our view of business ethics in our supply chain and we are developing an enforceable Code of Conduct including our commitments to human rights and to preventing modern slavery. Further reviewed our supply chain in Australia to focus on high-risk sectors. |
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| Gender ratio of 50/50, with 40% female senior executives by 2030 |
Reached a gender ratio of 44% female and 56% male, with 30% female senior executives. |
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| 100% of employees assessed as demonstrating Goodman’s values | Concluded that 100% of employees are demonstrating or exceeding Goodman’s values. |
