Investa Office Sustainability Report 2013

2012/2013

INVESTA OFFICE

Sustainability Report

INVESTA OFFICE SUSTAINABILITY REPORT 2012/2013

www.investa.com.au/2013-sustainability-report

To find out more about Investa Office’s latest performance visit:

Delivering performance to responsibly generate value

Report Framework

The information and corresponding time period presented in this report reflects our transition from calendar year to Australian financial year reporting during 2012 and 2013. An 18 month period is covered, which includes calendar year 2012 (January-December 2012) and financial year 2013 (July 2012-June 2013), with a six month overlapping period where required for continuity in long-term statistics.

To allow for the timely collection of billing data from utilities, the periods for reporting environmental performance data are 2012: (1st October 2011-30th September 2012) and 2012/13: (1st April 2012-31st March 2013).

The Sustainability Reports for Investa Property Group is provided in two separate components this year, which correspond to the Group’s two main businesses – Investa Office and Investa Land. A summary of the sustainability performance of Investa Property Group as a whole is provided at the back of each document. The GRI Index provides further information in accordance with G3.1 framework and is provided online.

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ContentsInvesta Office

Letter from the CEO 02About Investa Office 03Key Highlights 07Our Strategy 08

First Choice for Tenants 10Leadership in Governance 14Research and Innovation 16Optimising Portfolio Performance 18

Investa Property Group

Letter from the Joint Managing Directors 24About Investa Property Group 25Performance Overview 26Industry Engagement and Leadership 28Corporate Giving and Social Sustainability 29Assurance 31Glossary 32

Overview

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In a year when Australia experienced the hottest summer on record, Investa Office has continued to respond to environmental challenges, with innovations in our approach to customers, to managing buildings and through our commitment to responsible investment.

For the first time, Investa Office has achieved the Australian standard of ‘Excellence Performance’ with 5.5 Star NABERS Energy ratings received on four of our buildings, three of which are more than 18 years old. Our ‘return for effort’ approach continued to deliver value for our investors and tenants through a combination of vigilant, proactive management in conjunction with strategic capital investment.

Soft tenant demand and competitive leasing market conditions remain a key risk and focus for the business, as Australian economic conditions remain subdued. Despite this, Investa Office’s managed funds, Investa Office Fund (IOF), Investa Commercial Property Fund (ICPF) and Investa Property Trust (IPT) continue to perform well. IOF continues to reposition its portfolio by investing strategically in accretive Australian assets and continuing its exit from remaining offshore assets. ICPF has continued its strategy of optimising total returns by implementing a low risk investment approach, concentrating on prime grade office assets in the major Australian CBD markets.

The funds performed to global standards in 2012, ranking in the top five property funds in the world by the Global Real Estate Sustainability Benchmark (GRESB), earning the “Green Star 2012” rating. This strong result followed the transition of IOF property management to Investa Office in July 2011 and the final disposal of office assets from the closed Investa Enhanced Fund (IEF) in November 2012.

In the first half of 2013, Investa Office underwent a strategic re-organisation which will deliver the best in customer service for our tenants, investors and staff. We will continue to engage directly with our tenants to add value as a building owner and manager and encourage progress in their own sustainability journey.

We look forward to continuing to create value for our tenants, investors and our stakeholders and to being their first choice in Australian office.

Campbell HananChief Executive Officer, September 2013

Campbell Hanan, CEO Investa Office

Letter from the CEOIn 2012/13 Investa Office has continued to deliver environmental outperformance, with particular success in re-positioning older buildings to perform at their peak.

02 INVESTA OFFICE SUSTAINABILITY REPORT 2012/2013

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The BusinessInvesta Office is an office sector specialist and part of the Investa Property Group (IPG), one of the largest property companies in Australia. During 2012/13, the business owned or managed 46 institutional grade commercial office buildings, located in major Australian CBD markets.

The Risk and Sustainability Committee of the IPG Boards is the senior decision making body regarding sustainability.

As Asset ManagerThe integrated real estate management platform of Investa Office incorporates asset and property management, capital transactions, development, research, sustainability, marketing, safety, projects and technical services. Sustainability is embedded into working practices, strategies and processes throughout the business.

As Owner and Fund ManagerInvesta Office manages listed and unlisted funds invested in office assets, on behalf of over 17,000 institutional and retail investors. Key funds include;

> Investa Office Fund (IOF), an ASX listed real estate investment trust, $2.8 billion

> Investa Commercial Property Trust (ICPF), an unlisted wholesale investment fund, $1.8 billion

> Investa Property Trust (IPT), $2.8 billion, IPG’s internal fund

Environmental, social and governance (ESG) strategies and performance are directly managed by Investa Office, and aligned with responsible sustainable investment guidelines.

As Co-InvestorIn some instances, Investa Office funds co-own office buildings via joint ventures or partnership, where external parties manage the assets. Investa Office has influence over sustainability outcomes through contractual arrangements and engagement.

About Investa Office

$4.6bn+Funds under management

650+Tenants

$7.4bn+Office portfolio

ASSET MANAGER

CO-INVESTOR

OWNER AND MANAGER46

Australian Office Buildings

1. All statistics at 30 June 2013

Overview

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Stakeholders we serveInvesta Office recognises that our stakeholders have high expectations for how we operate our buildings, manage our funds and conduct our business. As a result, our strategy and operational approach is designed to ensure the interests of each stakeholder group are considered.

Our stakeholders

InvestorsRobust, market leading governance framework

Transparency of disclosure and reporting

Leverage Investa Office management platform to optimise performance

TenantsOffer Investa Office’s national contracts and procurement management system to achieve operating savings

Optimise tenancy environmental performance through tenant-focused, green initiatives

Apply Investa Office’s customer centric model to deliver market leading tenant service

Leverage Investa Office’s stringent Work, Health & Safety platform to provide a safe environment for our tenants and their visitors

SuppliersMonitor supply chains and align contractor processes, conduct and material use to Investa’s stringent environmental and operational standards

Our PeopleAttract and retain talented, engaged people to implement company and fund strategies and to manage and operate our assets

Community Engage with the wider community through charities and community investment to deliver societal benefits

EnvironmentContinual improvement across key environmental measures including greenhouse gas emissions, electricity, water and gas use and NABERS Energy and Water ratings.

Develop new tools and innovations to enable more effective and efficient building management and operation

Maintain and expand partnerships and initiatives that stimulate progress and continual improvement in responsible investment

Community

Our People

Tenants

Environment

Investors

Suppliers

INVESTA OFFICE

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Our people

Workforce

44% of our workforce is female, 56% is male

91% of our workforce is full-time, 9% is part-time and 0% is casual

Women represent 37% of senior management and 10% of the executive management1

During 2012/13, Investa Office evolved to deliver a new customer focused model. Asset Services employees are now based in our buildings at key locations in Sydney, Melbourne and Brisbane. Being closer to our customers means our people are more engaged and in tune with customer needs.

Employees are provided with systems, tools and training to create a challenging, empowering environment where our people can thrive. In addition to base salaries and prescribed benefits, the Investa Office employee incentive scheme encourages and rewards behaviours that deliver performance in financial, safety, customer service and environmental standards.

SafetyInvesta Office’s Safety, Health and Environmental Management System was revised and further developed in 2012-13. During the reporting period there were no deaths or serious injuries associated with employees (LTIFR = 0). Over half a million hours were worked by contractors in Investa Office buildings during the period, however no lost time injuries were reported. Incident reporting quality is being improved to allow reporting of medically treated injury statistics in future.

All staff participated in the formal safety awareness training program and Investa office retained its score of 97.2% in the National Safety Council of Australian (NSCA) audit system.

Our suppliers

Clean Start

We believe that better service delivery comes through effective support of all of our stakeholders, including contractors and staff. We are therefore pleased to report that as part of Clean Start, our office cleaners have been paid an average of 7% higher than current Award rates since 2010.

1. At 31 March 2013

180employees 79

women101 men

Investa Office had 180 staff (as at 30 June 2013)

7%Our cleaners are paid 7% more on average than Award rates

Overview

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Australian Office Portfolio

NSW

TAS

VIC

SA

NT

WA

ACT

PERTH

MELBOURNE

SYDNEY

CANBERRA

QLD

BRISBANE

36 1

27

9Total of buildings 46

Investa’s sustainability approach provides a framework for focusing on and enhancing good business practices in a financially responsible manner, contributing to lower building operating costs and improved social and environmental outcomes.

SYDNEYDeutsche Bank Place, 126 Phillip Street, Sydney60 Martin Place, Sydney10-20 Bond Street, Sydney225 George Street, Sydney388 George Street, Sydney400 George Street, Sydney201 Kent Street, Sydney347 Kent Street, Sydney 1 Market Street, Sydney31 Market Street, Sydney55 Market Street, Sydney231 Elizabeth Street, Sydney255 Elizabeth Street, Sydney260 Elizabeth Street, Sydney280 Elizabeth Street, Sydney300 Elizabeth Street, Sydney130 Pitt Street, Sydney151 Clarence Street, Sydney6&7 Eden Park Drive, Macquarie Park12 Waterloo Road, Macquarie Park

NORTH SYDNEYCampus MLC, 105-151 Miller Street, North Sydney73 Miller Street, North Sydney40 Mount Street, North Sydney146 Arthur Street, North Sydney80 Pacific Highway, North Sydney111 Pacific Highway, North Sydney54 Miller Street, North Sydney

BRISBANE239 George Street, Brisbane15 Adelaide Street, Brisbane232 Adelaide Street, Brisbane363 Adelaide Street, Brisbane140 Creek Street, Brisbane295 Ann Street, Brisbane410 Ann Street, Brisbane160 Ann Street, Brisbane40 McDougall Street, Milton

MELBOURNE120 Collins Street, Melbourne595 Collins Street, MelbourneTelstra Global Headquarters, 242 Exhibition Street, MelbourneQBE House, 628 Bourke Street, MelbourneRoyal Mint Centre, 383 La Trobe Street, Melbourne800 Toorak Road, Melbourne

CANBERRATimes Square, 16-18 Mort Street, Canberra

PERTH66 St Georges Terrace, Perth250 St Georges Terrace, PerthWellington Central, 836 Wellington Street, Perth

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Investa Office Key highlights 2012/13

*Based on % ownershipAll figures at 30 June 2013

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83%

Response rate to employee engagement and alignment survey

XX,XXXNumber of people in buildings every week

4.34YrsWeighted average lease expiry of whole portfolio (by area)

895,026Total net lettable area (NLA) (sqm)*

93%Occupancy

Investa Funds named GRESB Greenstar 2012

97.2%

score from National Safety Council of Australia

$130,700Donations to PIF

Cleaners in Investa Office buildings earning above award wage under Clean Start

3.67Stars

NABERS Water portfolio weighted average

82%

NABERS Energy 4.0 Stars or higher, without Green Power

NABERS Energy portfolio weighted average

4.32 Stars

Reduction in total water use since 2012

5.8%

Reduction in electricity intensity since 2011

8.5%

Gas intensity in 2012/13

Reduction in greenhouse gas emissions intensity since 2011

74MJ/sqm

10%

Business Social Environment

83%

Employee staff survey response rate in 2012

44%

Female workforce with 37% at senior management level


Our Strategy

The key impacts of Investa Office lie in the ownership and management of commercial office buildings in Australian cities. Our sustainability strategy provides a framework for focusing on and enhancing good business practices in a responsible manner. These practices contribute to lower building operating costs and improved social, financial and environmental outcomes for our investors and stakeholders.

During 2012/13, Investa Office reviewed its Environmental, Social and Governance approach and updated its sustainability strategy to reflect the latest challenges and opportunities for the business.

This approach has been particularly important throughout the period, during which Australia experienced the hottest summer since records began, with maximum summer temperatures 1.44°C above average. As a result, there has been increasing attention from tenants towards environmental impacts and resource costs, as the cost of electricity has continued to rise.

Our four strategic prioritiesThe sustainability strategy of Investa Office is centred on four key priorities as follows;

Meeting tenant needs and harnessing human capitalImproving communication and services to tenants to deliver a better occupant experience and greater value-add as a building owner.

First Choice for Tenants

> See how we’re meeting our tenant’s needs in more detail on pages 10-13

“ We are committed to repositioning and continually improving the older assets in our portfolio to achieve some of the highest environmental performance results in Australia.” Beck Dawson, General Manager, Corporate Sustainability

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Focus on targets and alignment of strategies across the business.Maintaining the highest standards of corporate governance and ethical conduct

Leadership in Governance

> Learn more about our approach to governance on pages 14-15

Adding value through research and innovationStrategic industry, government and business partnerships which deliver improved performance and drive change.

Research and Innovation

> Learn more about our approach to research and innovation on page 16-17

Upgrade of 239 George Street, Brisbane

Active management to deliver environmental outperformanceThrough experience, research and technical expertise, we manage our buildings so they each operate at their optimum level.

Optimising Portfolio Performance

> Learn more on our portfolio’s environmental performance on pages 18-23

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First Choice for Tenants

Vacancy (%)Vacancy of Investa Portfolio vs. Market2

Dec 2010 Jun 2011 Dec 2011 Jun 2012 Dec 2012 Jun 2013

0

5% -

10% -

Equivalent market vacancy (PCA) %Investa Office Portfolio Vacancy

Adding valueIn addition to ensuring our buildings consistently perform to their optimum potential, we assist our tenants to operate more efficient, sustainable work spaces. This helps to reduce the operating costs of their tenancy and lowers their environmental impact.

One tenant initiative that has been well received is the Investa Office Sustainability Incentive which encourages tenants to design and operate more energy efficient office spaces. By partnering with Investa Office, tenants are provided with cash incentives to upgrade office lighting controls, which significantly reduce energy costs within their tenancy. Reduced heat load in buildings from inefficient lighting also reduce the burden on base building air conditioning, contributing to lower relative outgoings for the building.

1. As at 30 June 2013, includes property assets only2. Investa and the Property Council of Australia (PCA) Benchmark Report 2013

REGION A$m

NSW 4,348.9

QLD 769.2

VIC 1,212.2

WA 512.0

ACT 40.9

Europe 310.3

Total 7,193.3

Geographic diversificationBy value1

17%

11%60%

4%

7%

1%

Top 10 tenantsBy income (%)

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> Learn more about how Investa Office engages with tenants by visiting our website investa.com.au/engagingtenants

INVESTA’SSUSTAINABILITY

INCENTIVE

Investa’s Sustainability Fact SheetInnovation and leadership through actionAt Investa, we recognise that the fundamental purpose of managing office buildings is to provide a productive and effective place for people to work. We have a number of programs that work to assist our tenants to improve the efficiency of their work space.

We believe that by working together we can achieve better results for our businesses and the environment. Investa is recognised for the effective management its buildings in ways which significantly reduce their environmental impact.

120 Collins Street continues to improve its environmental performance through the following initiatives:

SOPHISTICATED ENERGY MANAGEMENT

Through our active and dedicated building operations team:

Electricity sub-metering (15 minute intervals) with online interface

Sensors to increase the efficiency of our mechanical operation systems and provide the team with whole building data

Ongoing operational and seasonal management strategies

Energy efficient lighting control system in common areas

Progressive installation of T5 & LED fittings to refurbished lobbies

wASTE MANAGEMENT & RECYClING

Increasing recycling and waste reduction throughout the building:

Tenant commingled waste recycling program

Other recycling services (E waste, fluorescent lamp, phones, batteries etc.)

Strict contractor regulations to maximise diversion of construction waste from landfill (>80%) and provide certification

EffICIENT wATER MANAGEMENT

Water saving technologies and reuse through:

Rain water capture system with onsite capacity of 75,000 litres used for the fountain and garden areas.

Waterless urinals

Flow restrictors on all taps

Water efficient shower heads and auto-timed mixers

Dual flush 4.5/3L cisterns in all bathrooms

Auto-timed showers and WELS rated tapware for end of trip facilities

END Of TRIP fACIlITIES

Tenants have access to 120 Collins’s new end of trip facilities which have been designed to incorporate many sustainability features.

The new facilities include a designated locker room, water-saving showers, stylish basins and change benches, towel service and ironing facilities.

Investa is also increasing the bike cage storage capacity at 120 Collins Street from 116 spaces to 193 during the first half of 2013.

INVESTA’S ECOSPACE OffER

Designed for office spaces undergoing refurbishment, Ecospace helps tenants create a healthier workplace, smarter business and a better environment.

Ecospace features include low emission paints and carpet tiles, energy-efficient lighting controls and a range of water saving technologies.

To find out more about Ecospace, visit www.investa.com.au

Sustainability in your workplaceSince 2002, Investa has focused on sustainability by reducing the environmental impact of our operations and improving both social and environmental outcomes.

As a result, Investa offices provide better work places for our tenants to operate and grow their businesses.

Whether you are just moving in, or already an Investa tenant, we offer a range of solutions to help you gain better environmental and social outcomes for your tenancy space and organisation.

First choice for tenantsInvesta Office provides a range of sustainability products and services to tenants that aim to create healthier, more productive workplaces. By increasing awareness of the environmental performance of each tenant’s workspace, Investa is able to drive further improvements in base building performance through the following initiatives;

Sustainability Fact Sheets

Created for each Investa Office managed asset, these contain information on each building’s individual environmental performance, including energy management initiatives, water efficiency technology and products or services that improve environmental performance of the base building.

Green Lease

The Investa Office precedent lease sets out environmental and social objectives as part of the relationship between building owner and tenant through a Green Lease Schedule. Tenants are actively encouraged to improve tenancy energy management and interior fit-outs, delivering improvements in indoor environment quality and reducing operating costs.

Sustainability Incentive

Investa Office partners with tenants to apportion a percentage of leasing cash incentives to encourage sustainable investment of capital into tenancy spaces. The incentive covers lighting sensor controls in office space where efficient lighting is already installed.

Ecospace

Ecospace is designed for newly refurbished office spaces and includes a number of sustainability initiatives, including efficient lighting and controls, low emission paints and carpet tiles and waterless urinals.

Timely reporting

Investa Office remains the only Australian property company to make environmental performance data transparently available to stakeholders in the form of online building scorecards which are updated quarterly. Performance benchmarks on electricity, gas, water and greenhouse emissions intensity show how the environmental performance of buildings change over time.

Better Buildings Partnership

Investa Office has continued its engagement with the City of Sydney’s Better Buildings Partnership (BBP), of which Investa Office is a founding member. Investa Office has been directly involved in providing guides and data to BBP’s tenancy lifecycle tools, which engage tenants in best practice occupational practices and enables them to better manage tenancy environmental performance. www.sydneybetterbuildings.com.au

Life safety in buildings

Investa Office continued to focus on improving awareness and engagement with safety during 2012-13. In late 2012, defibrillators were installed across all Investa Office buildings, demonstrating our commitment to the life-safety of our employees, tenants, occupants and visitors to our buildings.

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INVESTA OFFICE SUSTAINABILITY REPORT 2012 – 2013

Innovative refurbishment repositions NAB workplace 105 Miller Street, North Sydney

In early 2013, the Projects division of Investa Office completed an extensive refurbishment and re-positioning of 26,980sqm of space at 105 Miller Street, North Sydney for anchor tenant National Australian Bank (NAB). The refurbishment was a partnership between Investa Office and NAB, to collaboratively reorganise NAB’s space requirements, while enhancing the operation, functionality and environmental performance of the work space. $12.7 million was spent on base building works and upgraded operational equipment including chillers and pumps.

The $25 million refurbishment designed by Woods Bagot incorporates numerous work place hubs and break out areas over 14 levels, designed to accommodate different group sizes. A strong focus on technology throughout the project, including Wi-Fi access and pin printing, enables improved productivity and well-being by allowing employees to work freely throughout the building.

Lighting efficiency reduces emissions

126 Phillip Street – Tenants make the switch

During 2012, Investa Office transitioned the 126 Phillip Street, Sydney base building common area and carpark lighting to high efficiency LED (light emitting diode) fittings. In the area upgraded, this project reduced energy consumption by between 40-80% which is delivering savings of 53 MWh per year, equivalent to a reduction in greenhouse gas emissions of 43 Tonnes CO2-e per year.

Investa Office has now extended this program to offer similar lighting upgrades to tenants in the building. This is already reducing maintenance call-outs to replace light globes and decreasing the heat load on the base building from inefficient tenancy lighting. This simple service is delivering significant energy and cost savings to tenants and to building operations and contributing to the maintenance of the building’s 4.5 Star NABERS Energy rating.

126 Phillip Street, Sydney

First Choice for Tenants Case studies

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105 Miller Street refurbishment

126 Phillip Street , Sydney

12sqm 4.5 Stars $12.7millionPer person down from 14 sqm/person

NABERS Energy rating

Base building refurbishment works

43 tonnes 4.5 Stars $116,300CO2-e saved each year

NABERS Energy rating

Savings in maintenance energy costs over 2 years

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Adding value by improving amenityThe Investa Office focus on improving tenant amenities has delivered new end-of-trip1 at 130 Pitt Street, Sydney and 120 Collins Street, Melbourne, with plans to install facilities at 400 George Street, Sydney in 2014.

130 Pitt Street, Sydney

Improvements at this building include eighteen new lockers with security coded pin access, additional bike racks and three water-efficient showers. To maximise the use of the available space and optimise comfort for users, designers incorporated unisex showers, believed to be an industry first in a Sydney commercial building.

Feedback from both existing and potential tenants has been positive, with the changes providing occupants with more options for transport to work, including usage of the City of Sydney’s new bike paths.

120 Collins Street, Melbourne

In January 2013, Investa Office opened the newly refurbished shower and change room facilities at 120 Collins Street. The new facilities consist of a designated locker room, twenty water saving showers, towel service and ironing facilities. Investa Office is increasing the bike cage storage capacity from 116 spaces to 193 spaces, improving tenant amenity at the building.

Initiatives that provide better amenities to tenants, such as increased access to bike racks, showers and bathrooms provide wider environmental and social benefits, such as improving the wellbeing of tenants and reducing emissions created by motorised transport. While expanding these facilities contributes to increases in water and energy use in the building, the inclusion of water efficient fixtures and fittings helps to offset this.

“ High quality, well-maintained end-of-trip facilities are becoming increasingly important to tenants when assessing the suitability of office space for their business and staff. Buildings that offer these facilities have a key advantage during lease negotiations.”

Sally Franklin, National Head of Asset Services

1. End of trip facilities refers to the provision of infrastructure that caters to the needs of cyclists or exercisers at their destination and includes safe and convenient access, secure bicycle parking, changing facilities, showers and lockers.

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Transparency in reporting

Investa Office remains the only Australian property company to make environmental performance data transparently available to investors in the form of fund or asset level online scorecards, that are updated quarterly.

Investa Office aligns reporting to the Global Reporting Initiative (GRI) for this report, which integrates financial, environmental, social and governance performances and practices into a globally recognised reporting framework. The Investa Office GRI Index is available on the Investa website and uses the G3.1 framework.

Partnerships, recognition and awards

In September 2012, Investa Office Funds IOF and ICPF were ranked 4th in the world in the Global Real Estate Sustainability Benchmark (GRESB) from 451 participants with an overall score of 78%.

In 2012, IOF received a Carbon Disclosure Score from CDP (formerly known as the Carbon Disclosure Project) of 76 and a Carbon Performance Band of C. This was a marked improvement on the CDP 2011 score of 56 C.

During FY13 Investa Office was recognised by Australia’s most respected environment Award series;

1. Banksia Awards:

– Finalist in Built Environment – Finalist in Clean Technology | Sydney’s First Trigeneration Precinct

2. NSW Government Green Globe Awards:

– Highly Commended | Climate Change Leadership

Sustainable Responsible Investment (SRI)1

Investa Office and Investa Funds re-committed to SRI Guidelines during 2012. ICPF was again awarded SRI Certification from the Responsible Investment Association of Australasia (RIAA).

United Nations Principles For Responsible Investment (UNPRI)

Investa Office is a signatory member of the UNPRI and a member of the United Nations Environment Program Finance Initiative Property Working Group (UNEPFI PWG) – a global partnership between UNEP and the financial sector. During 2013, Investa Office contributed to the international panel conducting a methodology review of the PRI Property Module Reporting Framework.

Responsible investment value Investa Office’s Sustainable Responsible Investment (SRI) Guidelines ensure proactive assessment and management of risks and alignment between Investa as the fund or asset manager and the asset owners and/or investors. Our commitment to transparency of results through timely online reporting holds Investa accountable and drives continuous improvement.

Principles for Responsible Investment

Signatory of:

Leadership in Governance

1. Awarded SRI Certification from the Responsible Investment Association Australasia for Investa Commercial Property Fund (ICPF). Investa Property Group has been certified by RIAA according to the strict disclosure practices required under the Responsible Investment Certification Program. See www.responsibleinvestment.org for details.

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Leadership in Governance Case study

260 Elizabeth Street, Sydney

Mature building outperforms

260 Elizabeth Street – Punching above its weight

260 Elizabeth Street, Sydney, an unassuming, 24 year old building near Sydney’s Central station delivered the Sydney CBD one of its most efficiently operated base buildings this year, achieving a 5.5 Star NABERS Energy Rating. The 13 level, 13,961sqm office tower was classified as having achieved “excellent performance” at 5.5 Stars, rating significantly above the CBD average of 3 Stars, without the use of Green Power.

The building was substantially refurbished by Investa Office in 2009/10 and further works have included the installation of low-glare low-energy lighting to common areas, progressive installation and replacement of variable speed drives and optimising air conditioning economy cycles and chiller staging to reduce large power spikes. Most importantly, Investa Office’s sophisticated building management approach and energy management tools enabled the building team to monitor performance in near real-time and tailor operations to weather conditions and changing requirements.

Prudent management of resource use and costs on behalf of our tenant businesses is an increasing area of focus.

27years 5.5 Stars AustralianAge of building NABERS

Energy rating Excellence

“ The ability of Investa to attain a 5.5 NABERS Energy Rating at 260 Elizabeth Street is an excellent outcome that demonstrates their commitment to achieving environmental excellence. As a tenant, we are happy to be working in partnership with Investa and other fellow tenants to achieve and maintain performance standards of such a significant scale.”

Craig Blayney, Finance and Resource Manager NSW and ACT, Commonwealth Department of Health and Ageing

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16 INVESTA OFFICE SUSTAINABILITY REPORT 2012 – 2013

Adding value through research and innovation

Investa Sustainability Institute (ISI)

Investa Office established ISI in 2009 to facilitate action research for sustainability in the built environment. ISI engages in collaborative ventures between Investa Office and organisations with shared interests including academia, industry and professional bodies and government.

Indoor Environment Quality – BOSSA

The Investa Sustainability Institute and Investa Office are participating as academic and industry partners with the Building Occupant Survey System Australia (BOSSA) study by Sydney University, to investigate indoor environment quality in the workplace. By better understanding the various factors that influence productivity, Investa Office will be positioned to deliver more effective office environments to tenants, increasing the appeal of our office space.

Rapid Efficiency Feedback (REF)

REF tracks the patterns of electricity use in buildings and provides timely feedback to building operators, so they can fine-tune management and maintenance more effectively to achieve optimum performance. The tool is used in many Investa Office managed buildings.

The independent company Buildings Alive Pty Ltd has developed REF, based on a prototype known as Pulse. Pulse was first developed as an initiative of the Investa Sustainability Institute and trialled in Investa buildings in August 2011. Investa Office continues to work with partners to develop and trial innovations to improve building performance.

1. Originally developed by Investa Office, formerly named Pulse

Research and Innovation

Case study400 George Street, Sydney

Despite Australia experiencing one of the hottest summers on record in 2012, Buildings Alive REF Tool¹ has provided Investa Office with the ability to reliably measure the daily benefit of their energy-saving and continue fine-tuning initiatives without having to take into account the volatile impact of weather changes.

Since assuming management of 400 George Street in August 2012, active management has helped Investa Office deliver a significant 10% reduction in electricity consumption despite the unusual weather conditions. With rising electricity prices, the success of Investa Office in reducing the building’s electricity consumption has resulted in cumulative savings in electricity outgoings to the value of $97,469 when compared to the same period in the previous year. This performance demonstrates the correlation between superior management and the delivery of financial and environmental gains.

10% Daily $97,469Reduction in electricity use

Feedback Savings per year

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160 Ann Street, Brisbane

140 Creek Street

Active management deliversInvesta Office’s Brisbane portfolio incorporates more than 155,000sqm of quality commercial office space, valued at more than $940 million and accommodating more than 150 Queensland companies. Investa Office buildings represent approximately 6.4% of the total Brisbane CBD office market by floor area.

The Investa Office team in Brisbane directly manage nine commercial office buildings. With a strong focus and adoption of operational and maintenance methods which achieve cost effective improvement, the team has successfully transformed several older assets into high-performing, sustainable buildings.

Despite our Brisbane buildings averaging 29 years old, strong results have been achieved across the portfolio;

140 Creek Street – Standout performance improvements

Since acquiring the site in July 2011, management have been working to transform this property into a high-performing, sustainable office building. Maintenance and management initiatives have included progressive installation and replacement of variable speed drives, optimisation of economy cycle and chiller staging to use free cooling in the morning as long as possible and reducing large power spikes that occur during building start up – maintaining comfortable conditions while optimising energy performance. There has also been a staged approach to replacing lighting in common and base building areas with low energy LED fittings, reducing energy use and maintenance time spent replacing light bulbs.

Energy use efficiency and reductions enable Investa Office to reduce the pressure associated with rising electricity prices to the building owner and to tenant organisations. During 2013, 140 Creek Street, achieved an impressive 5.5 NABERS Energy Rating, delivered almost exclusively through vigilant management and operations. The improvement in the building’s energy performance equates to annual savings of approximately $138,0001 and demonstrates environmental performance on par with newly constructed, “green” buildings.

“ Smaller maintenance items all add up in the long run, resulting in better overall performance of equipment. The results at 140 Creek Street are a strong endorsement of the Investa Office model.”

Steve Hickey, Facilities Manager, Brisbane CBD Portfolio

1. Assuming a commercial electricity price of 23c/kWh2. Portfolio Statistics at 30 June 2013

17years 5.5 Stars $138,000Average age of building

NABERS Energy rating Annual savings in energy costs

17%2 4.5 Stars 4.1 Stars Reduction in emissions intensity to 78kg.CO2-e/sqm/yr

Weighted average NABERS Energy rating

NABERS Water portfolio weighted average

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Environmental performance results 2012/13Investa Office maintains its focus on managing environmental impacts and opportunities across all operations and services.

This report covers two periods in the transition from calendar year (January – December 2012) to financial year (July 2012-June 2013), with an overlapping six month period where required for continuity in long-term statistics.

To allow for the timely collection of billing data from utilities, the periods for reporting environmental performance data are 2012: (1st October 2011-30th September 2012) and 2012/13: (1st April 2012-31st March 2013).

Carbon and water footprintThe main environmental impacts of Investa Office operations occur in the management of commercial office buildings, predominantly due to the use of electricity, gas and water. The use of these resources also represents a significant proportion of operating costs.

Investa Office reports a carbon emissions and water footprint, based on the percentage of each building owned by Investa Funds. This aligns financial investment with environmental impacts. Reporting Rules describe the scope and coverage of this reporting in more detail.1

The Investa Office investment portfolio emissions footprint reduced by 3.7%, and the water footprint by 5.8%, between the two reporting periods.

Emissions and water use by fund

Emissions (t.CO2-e) Water (kL)Investment portfolio (% ownership) 2012 2012/13 2012 2012/13

IPT 27,600 26,943 239,506 225,824

IOF 28,366 28,185 248,577 244,047

ICPF 20,502 20,155 144,574 137,856

IEF2 2,840 1,118 21,930 8,909

Total Investment Portfolio 79,308 76,400 654,587 616,637

3.7%

Total emissions reduced

Total water use reduced

5.8%

1. IPG’s full carbon footprint is provided on page 26.2. IEF has divested all assets. The fund is now closed.

19

> For details of full NGERS Emissions see page 26

Portfolio ratingsNABERS Energy Ratings

The Investa Office weighted average NABERS Energy rating has improved to 4.32 stars in 2012/2013. This is a good result for the portfolio considering the impact of Australia’s hottest summer on record on building air conditioning demand. These results are achieved without the use of Green Power.

Coca-Cola Place at 40 Mount Street, North Sydney has continued to exceed its design performance and maintained Investa Office’s first 5.5 Star NABERS Energy rating. It was joined this year by two older Investa Office buildings in the portfolio – 260 Elizabeth Street, Sydney (built 1989) and 140 Creek Street, Brisbane (built 1995).

1. Investa Office NABERS Ratings are based on building performance, no GreenPower included.

03/04 04/05 05/06 06/07 2007 2008 2009 2010 2011 2012 2012/13

StarsNABERS Energy Ratings

2.60

3.34

3.68

3.96

3.96

3.89

3.73

3.89

3.99

4.22

4.32

1.7 starsimprovementsince '03/04

Australian IndustryAverage of 3 stars (2.5 until 2012)

of buildings rated 4.0 stars or higher

82%

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NABERS Water Ratings

During 2012/13, the Investa Office weighted average NABERS Water rating improved to 3.67 stars and a total of ten properties improved their NABERS Water ratings by at least half a star.

03/04 04/05 05/06 06/07 2007 2008 2009 2010 2011 2012 2012/13

n/a n/a 2.87

3.20

3.20

3.32

3.39

3.28

3.54

3.49

3.67

0.8 starsimprovementsince '05/06

Australian IndustryAverage of 3 stars (2.5 until 2012)

StarsNABERS Water Ratings

of our buildings rated better than the industry mean

70%



Environmental performance results 2012/131

Performance across portfolioInvesta Office seeks to deliver better buildings with lower environmental impacts, reducing the cost of operations and improving the comfort of our building occupants.

Investa Office has achieved consistent reductions in emissions and energy intensity of our buildings over the past ten years.

During 2012/13, environmental performance of our buildings has remained steady, despite Australia’s hottest summer on record. A focus on weather adjusted energy data tools and the ‘people factor’ has delivered high performing buildings, by enabling managers to more quickly identify opportunities and manage buildings accordingly.

Office building intensity statisticsOur intensity statistics are a measure of the energy, water and emissions efficiency of buildings managed by Investa Office. It is calculated as units per square metre of building floor area.

The results are based on supply authority billing information and provide a meaningful year to year comparison of portfolio performance. The rules determining which assets are included or excluded from intensity statistics are in alignment with Investa Office’s reporting rules which are provided online at www.investa.com.au/2013-sustainability-report

Portfolio electricity consumption intensity

The exceptionally hot summer of 2012/13 challenged our building management teams to continue to deliver savings. Electricity use intensity across the portfolio decreased to 86 kWh/sqm over the reporting period, a reduction of 8% since 2011. The largest savings were achieved at 151 Clarence Street, Sydney, with a 24% reduction in electricity intensity compared to the previous reporting period.

Electricity

2003/04 2004/05 2005/06 2006/07 2007 2008 2009 2010 2011 2012 2012/13

Buildings in program* 23 23 27 28 28 33 33 32 32 34 32

Floor area* (NLA) (sqm) 463,150 460,911 659,329 703,110 703,110 760,403 772,679 738,230 731,832 868,113 844,997

Metered electricity consumption* (MWh) 62,746 56,515 76,538 75,820 74,956 81,287 81,281 74,083 68,941 77,516 72,932

Consumption intensity (kWh/sqm) 135 123 116 108 107 107 105 100 94 89 86

kWh/sqm/yr electricity intensity

86

*Of buildings with continuous statistics1. This report covers two periods in the transition from calendar year (January – December 2012) to financial year (July 2012-June 2013), with an overlapping six month period where required for continuity in long-term statistics. To allow for the timely collection of billing data from utilities, the periods for reporting environmental performance data are 2012: (1st October 2011-30th September 2012) and 2012/13: (1st April 2012-31st March 2013).

36%Reduction since 2003/04

21

Portfolio gas consumption intensity

Natural gas consumption intensity increased slightly from the previous year to 74 MJ/sqm. In 2012/13 gas consumption accounts for 3.6% of total office greenhouse gas emissions.

Portfolio emissions intensity

Greenhouse gas emissions over the reporting period decreased to 84 kg.CO2-e/sqm from the previous year due to reductions in electricity consumption intensity. This was achieved through best practice operations and proactive management of building monitoring and control systems. Noticeable improvements occurred at IOF buildings which transitioned to Investa Office management in July 2011 and 400 George Street, Sydney, which has been under Investa management since August 2012.

Water

2003/04 2004/05 2005/06 2006/07 2007 2008 2009 2010 2011 2012 2012/13



Metered water consumption* (kL) 928,635 806,229 668,932 619,284 587,452 566,626 533,463 510,599 484,043 597,986 550,420

Consumption intensity (L/sqm) 1,159 1008 832 774 735 712 684 685 655 689 651

Portfolio water consumption intensity

Water consumption has decreased to 651 L/sqm since 2011, despite the hot summer of 2012/13. The 2012 result was impacted by the increase in on-site tenant amenities, including new bathrooms and showers at some sites.

MJ/sqm/yr gas intensity

74

84kg.CO2-e/sqm

Improvement of 10% since 2011

L/sqm/yr water intensity

651

Gas

2003/04 2004/05 2005/06 2006/07 2007 2008 2009 2010 2011 2012 2012/13



Metered gas consumption* (GJ) 85,253 74,136 58,736 56,910 54,665 56,928 45,630 44,055 44,003 50,586 50,244

Consumption intensity (MJ/sqm) 139 121 87 82 79 80 69 71 71 73 74

Greenhouse gas emissions

2003/04 2004/05 2005/06 2006/07 2007 2008 2009 2010 2011 2012 2012/13

Emissions Intensity (kg.CO2-e/sqm) 164 149 141 128 127 110 105 100 94 87 84

*Of buildings with continuous statistics




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Waste and recycling

Commercial and Industrial (C&I) Waste

Investa Office aims to reduce the proportion of waste leaving our buildings that goes to landfill each year and minimise the overall tonnage. C&I waste diversion shows recycling rates across our office portfolio for waste is predominantly generated by our tenants. In 2012/13, recycling rates were impacted by the closure of a key waste recovery facility serving NSW assets. Recycling rates were 46% during the 2012/13 period.

Construction and demolition waste

As a result of Investa Office’s procurement practices, a significant portion of waste material from fit-outs and refurbishment projects is able to be reused or recycled by third parties. In 2012/13, a total of 419 tonnes of construction and demolition waste was generated, of which 64% was recycled. In 2011, 65 tonnes of waste was generated, of which 68% was recycled.

Optimising Portfolio Performance continued

tonnesCommercial & Industrial waste

2010 2011 2012 2012/13

Secure documentsCommingledFood wasteGlassPaperCardboardOther recyclingRecovered general waste

Recycling

General WasteLandfill

46% of office waste recycled

Commercial and Industrial (C&I) Waste

2010 2011 2012 2012/13

General Waste (Landfill) 2,288 31% 1,293 24% 2,758 46% 2,573 54%

Recycling: 5,115 69% 4,006 76% 3,206 54% 2,167 46%

Secure documents 498 7% 364 7% 361 6% 178 4%

Commingled 1,341 18% 760 14% 749 13% 749 16%

Food waste 452 6% 279 5% 93 2% 84 2%

Glass 0 0% 0 0% 0 0% 0 0%

Paper 1,422 19% 1,426 27% 1,349 23% 1,086 23%

Cardboard 372 5% 193 4% 23 0% 9 0%

Other recycling 16 0% 2 0% 2 0% 3 0%

Recovered general waste 1,014 14% 982 19% 629 11% 58 1%

Total Waste 6,389 100% 5,299 100% 5,964 100% 4,740 100%

total tonnes of construction

waste generated

2010 2012/13

26%Reduction in office waste

6,389 4,740

64%recycled in 2012/13

419

23

Australian portfolio environmental performance statistics

State Property

Electricity intensity

(kWh/sqm)

Gas intensity

(MJ/sqm)

Water intensity (L/sqm)

Emissions intensity

(kg.CO2-e/sqm)

NABERS Energy ratingB (Stars)

NABERS Water

ratingB (Stars)

ACT 16-18 Mort Street, Canberra 61 75 418 57 A A

NSW 1 Market Street, Sydney 83 36 738 75 4.5 3.5NSW 105-151 Miller Street, North Sydney 79 115 768 75 4.5 3.0

NSW 111 Pacific Highway, North Sydney 92 261 804 94 3.5 3.5

NSW 126 Phillip Street, Sydney 96 85 852 81 4.5 3.5

NSW 130 Pitt Street, Sydney 69 D 908 61 4.0 1.0NSW 146 Arthur Street, North Sydney 140 D 472 123 3.0 4.0

NSW 151 Clarence Street, Sydney 126 104 767 116 3.0 3.0

NSW 231 Elizabeth Street, Sydney 141 132 716 131 4.0 4.0





NSW 31 Market Street, Sydney 79 47 910 73 4.5 2.5

NSW 347 Kent Street, Sydney 93 0.5 1,180 82 4.5 2.0

NSW 40 Mount Street, North Sydney 57 30 530 41 5.5 4.0

NSW 400 George Street, Sydney 97 46 597 88 4.0 4.0

NSW 55 Market Street, Sydney 102 26 610 91 4.0 4.0

NSW 60 Martin Place, Sydney 73 39 679 66 5.0 3.5

NSW 6-7 Eden Park Drive, Macquarie Park 50 53 500 47 5.0 4.0

NSW 73 Miller Street, North Sydney 78 124 936 75 4.5 3.0

NSW 80 Pacific Highway, North Sydney 87 28 843 78 4.5 3.0

NSW 12 Waterloo Road, Macquarie Park E E E E E E

NSW 54 Miller Street, North Sydney E E E E E E

NSW 388 George St, Sydney H H H H 4.5 4.0

NSW 10-20 Bond Street, Sydney H H H H A A

NSW 201 Kent Street, Sydney H H H H 4.5 4.5

NSW 225 George Street, Sydney H H H H 4.0 4.0

QLD 140 Creek Street, Brisbane F

90 D 661 785.5 4.5

QLD 295 Ann Street & 232 Adelaide Street, BrisbaneF 4.5G 4.0F

QLD 239 George Street & 15 Adelaide Street, BrisbaneF 84 D 744 73 4.5 4.0

QLD 363 Adelaide Street, Brisbane 116 D 480 101 4.0 4.5

QLD 40 McDougall Street, Milton 121 D 496 104 4.0 4.5

QLD 410 Ann Street, Brisbane 53 D 422 46 5.5 4.5

QLD 160 Ann Street, Brisbane E E E E E E

VIC 120 Collins Street, Melbourne 105 107 679 130 3.0 2.5

VIC 242 Exhibition Street, Melbourne 92 101 453 115 3.5 4.5

VIC 595 Collins Street, Melbourne 63 73 585 79 4.5 3.0

VIC 628 Bourke Street, Melbourne 64 156 478 85 3.5 3.5

VIC 800 Toorak Road, Melbourne C C C C A A

VIC 383 La Trobe Street, Melbourne C C C C 2.5 3.0

WA 836 Wellington Street, West Perth 52 21 492 43 5.0 4.0

WA 66 St George’s Terrace, Perth E E E E E E

WA 250 St George’s Terrace, Perth H H H H 5.0 3.0

Portfolio Weighted Average 86 74 651 84 4.32 3.67

Notes:A: Could not be rated due to insufficient occupancy immediately following building refurbishmentB: NABERS ratings are presented for all buildings under the management control of Investa Office

between 1 July 2012 and 30 June 2013C: Not reported as management control of the building is assigned to the tenant under the terms

of the lease. D: Gas is not used at this site

E: Excludes assets not owned for the duration of the reporting period including buildings under construction

F: Aggregated data is collected for this group of assetsG: Rating as at 30th June 2013 – New NABERS rating underwayH: Externally managed

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Jonathan Callaghan, Joint Managing Director, IPG and Ming Long, Joint Managing Director and Finance Director, IPG

Letter from the Joint Managing DirectorsHaving gone through a period of uncertainty and change in recent years, Investa Property Group is now well positioned for new opportunities.

At Investa, we have always believed that a sustainable business model underpins outperformance for all our stakeholders. It creates value for our investors, tenants, staff and the communities we develop and live in resulting in an organisation that endures through both good and difficult times.

Over the last 18 months, we have seen significant world economic change. We have responded to this continued volatility by reorganising our business to focus on our two businesses Investa Office and Investa Land. Investa’s most substantial financial and environmental impact comes from our ownership and management of 46 commercial buildings in Investa Office. Investa Land delivers residential and industrial land developments in five states and territories, managing the planning and delivery of over 9,500 residential lots in new communities and 550 hectares of industrial land. We believe our new structure will allow us to withstand uncertainty and sustain our continued performance for our stakeholders.

At Investa, we continue to be concerned with changes to the climate. In this report, we have provided an overview of our activities which as a Group we have undertaken to reduce our environmental impact and how we are providing leadership to industry to effect change. We have shared case studies

undertaken particularly in Investa Office which show that, with a little innovation, much can be achieved. In 2014, we will continue to challenge the status quo, innovate and be smarter with how we use the resources we have to maintain this journey we started over ten years ago.

During 2013, the Group implemented its succession plans with Scott MacDonald stepping down as CEO of Investa but remaining as Chairman of the Group. We continue to benefit from Scott’s extensive experience through his role as Chairman of the Group and as a Director of the Responsible Entity for Investa Office Fund. On behalf of the Board and all staff, we would like to thank Scott for his leadership and continued contribution to Investa.

Ming Long, Joint Managing Director and Finance Director, IPG

September 2013

Jonathan Callaghan, Joint Managing Director, IPG

25

1. All statistics at 30 June 2013

About Investa Property Group

Georges Fair, Moorebank NSW

Investa Property Group is one of Australia’s largest unlisted owners and managers of quality real estate controlling assets more than $8 billion across the commercial, industrial and residential sectors.

Investa Property Group at a glance1

Investa OfficeOffice portfolio owned/ managed $7.4bn+Commercial office buildings under management 46

Tenants 650+Net lettable area (ownership %) (NLA) ~900,000 sqm+

Funds Under Management $4.6bn+

Investa LandLand pipeline (end value) $3bn+

Residential lots 9,500+

Industrial hectares 550+

INVESTA LAND

A$3 billion (end value)

INVESTA OFFICE

AUM: A$7.4 billion

INVESTA OFFICE FUND

(IOF)

AUM: A$2.8 billion

INVESTA COMMERCIAL

PROPERTY FUND

AUM: A$1.8 billion

INVESTA PROPERTY

TRUST

AUM: A$2.8 billion

INVESTA PROPERTY

GROUP

Business Unit Contribution by Revenue Before revaluations 2013

83.5

%

84.4

%

9.7%

10.4

%

6.7%

4.8%

0.1%

0.4%

CY12 FY13 CY12 FY13 CY12 FY13 CY12 FY13Commercial

OfficeFunds

ManagementDevelopment Other


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Performance Overview

“ On behalf of the Board and all staff, I would like to thank Scott for leading the organisation through a time of considerable change. Investa moves forward in a position of great strength as a result.”

Ming Long, Joint Managing Director and Finance Director, IPG

FY12 greenhouse gas emissions from office buildings,

compared to IPG total

99.6%

IPG Carbon FootprintThe main greenhouse gas emissions from IPG business operations occur in the management of commercial office buildings. Investa reports Scope 1 and Scope 2 greenhouse gas emissions from all business operations and facilities under operational control in accordance with the National Greenhouse and Energy Reporting Act 2007 (NGERS), and its associated guidelines. Some Scope 3 emissions are reported separately. Reporting Rules, published at www.investa.com.au describe the scope and coverage of this reporting in more detail.

IPG’s carbon footprint in FY12 increased 15% to 85,321 t.CO2-e, from 75,172 t.CO2-e in FY11, under NGERS. During the period, three buildings were sold and 12 buildings were acquired. The managed office portfolio represents the significant majority (99.6%) of Group emissions, predominantly due to the use of electricity and gas.

Investa’s NGERS carbon emissions footprint

Emission by resource

FY2012 Proportion Confidence

Scope 1 3,781 t.CO2 4.43% 80.52%

Diesel 873 t.CO2 1.02% 60.00%

Natural Gas 2,868 t.CO2 3.36% 98.55%

Refrigerant 0 t.CO2 0.00% 60.00%

Vehicle Fuel 40 t.CO2 0.05% –

Scope 2 81,540 t.CO2 95.56% 97.15%

Electricity 81,135 t.CO2 95.09% 97.15%

Incidental emissions = 0.5% of electricity 405 t.CO2 0.47% 97.15%

Group emissions 85,321 t.CO2 100.00% 96.24%

Scott MacDonald, Chairman, Investa Property Group

27

> For more details, see our Reporting Rules at www.investa.com.au

Greenhouse gas emissions due to our air and taxi travel are immaterial compared with the impact of the building portfolio, though not forgotten. Total flight mileage in 2012 represented emissions of 372.4 t.CO2-e, equivalent to 0.43% of total emissions. Total taxi mileage in 2012 represented emissions of 93.1t.CO2-e, equivalent to 0.11% of total emissions. IPG does not operate fleet vehicles.

1.52tonnes CO2-e per person

472km/person taxi travel

5%improvement since 2011 to 0.40 writing tools per employee per week

Emission by resource

Business travel 2012 Kms per person Tonnes CO2 per person

Scope 3

Staff air travel 9183 1.52

Staff taxi travel 472 0.38

Office stationery 2012 Items per person Improvement since 2010

Scope 3

Paper (sheets per day) 19.86 51%

Writing tools (per week) 0.40 15%

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Industry Engagement and Leadership

“ With a long track record as a leader in the development and implementation of real estate sustainability initiatives, Investa applies a best practice sustainability approach to the management of its assets”


1. Awarded SRI Certification from the Responsible Investment Association Australasia for Investa Commercial Property Fund (ICPF). Investa Property Group has been certified by RIAA according to the strict disclosure practices required under the Responsible Investment Certification Program. See www.responsibleinvestment.org for details.

2. At 31 March 2013

IPG has a long track record of engagement and participation in supporting the development and professionalisation of the property industry in Australia. Employees represent IPG on national and local committees of major property associations and organisations. Current committee and technical working group interests include: sustainability, tenants and sustainable building metrics, facilities management, asset management, financial reporting, early career support, communicating responsible investment, development of voluntary GreenStar rating tools and research.

Memberships and AssociationsMemberships include international and national peak bodies in the fields of real estate, responsible investing, finance and sustainability. The Group is currently a member and participant in the following associations and advocacy organisations:

ANREV – Asian Association for Investors: www.anrev.org/

API – Australian Property Institute: www.api.org.au/

Australasian Investor Relations Associations: http://aira.org.au/

Australian Marketing Institute: www.ami.org.au/

City of Sydney Better Buildings Partnership: www.sydneybetterbuildings.com.au/

Cityswitch – National tenancy energy efficiency program

GBCA – Green Building Council of Australia: www.gbca.com.au/

PCA – Property Council of Australia: www.propertyoz.com.au/

RIAA – Responsible Investment Association Australasia: www.responsibleinvestment.org/

UDIA – Urban Development Institute of Australia: www.udia.com.au/

ULI – Urban Land Institute www.uli.org/

UNEPFI – United Nations Environment Program Finance Initiative: www.unepfi.org/

UNPRI – United Nations Principles for Responsible Investment: www.unpri.org/

Our PeopleIPG Workforce Statistics2

Employees of both Investa Office and Investa Land are included in workforce statistics for Investa Property Group

245 employees (92 women, 153 men)

38% of our workforce is female, 62% is male

88% of our workforce is full-time, 11% is part-time and 1% is casual

Women represent 36% of the broader senior management team, and 9% of the executive

25% of the Investa Property Group Board are women

Investa Property Group employed 245 staff (as at 30 June 2013)

92 women

153 men

Principles for Responsible Investment

Signatory of:

29

Corporate Giving and Social Sustainability

“ Investa is proud of its long established association with the Property Industry Foundation and is pleased support its efforts to help the most vulnerable young Australians.”

Cameron Holt, CEO, Investa Land

Property Industry Foundation

IPG has continued its on-going association with the Property Industry Foundation during 2012/13. Started in 1996 by industry leaders, the Foundation raises funds and awareness to help grass-roots charities that provide services to homeless and at-risk youth. The Foundation raises in the vicinity of $1.5 million each year distributing donations and providing in-kind building services to approximately 20 children’s charities.

In 2012, IPG was recognised by PIF for the highest level of fundraising achieved, donating $130,700 to the foundation. Activities organised by IPG include an annual charity golf event at Kooindah Waters Residential Golf & Spa Resort, which in 2012 raised over $50,000 in addition to the $15,000 contributed in staff and resources for the event. IPG also participates in PIF’s annual charity sailing regatta and fundraising quiz nights, morning teas and social events. Since IPG began supporting PIF in 2009, it has raised more than $400,000.

Triple Care Farm

In June 2012, a number of IPG staff made the trip to Robertson in the Southern Highlands to the Triple Care Farm, a major project of the Sir David Martin Foundation. The Farm provides a safe and healing environment for emotionally troubled young people with drug and alcohol dependences.

Through the Group’s Active in the Community Program, staff volunteered to help out at the Farm by doing general maintenance and clean up jobs.

Lowe Education Trust

In July 2012, IPG hosted a fundraiser in memory of David Lowe, Facilities Manager at 126 Phillip Street, Sydney, who passed away after a long battle with cancer. Many IPG suppliers, contractors, tenants and employees generously contributed and as a result, the event raised over $140,000 for the Lowe Education Trust.

IPG recognises the value of giving back to our communities and as such, have committed to an Active in the Community Policy, which affords staff additional leave to conduct community service.

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Corporate Giving and Social Sustainability

Left to Right: OPTUS, CEO, Kevin Russell; IPG Chairman, Scott MacDonald; WESTPAC, CEO, Gail Kelly; AUSTRALIAN RED CROSS, CEO, Robert Tickner; IAG, CEO, Mike Wilkins; MUNICH RE, CEO, Heirich Eder.

Australian Business Roundtable for Disaster Resilience and Safer Communities

During 2011, an unprecedented number of natural disasters occurred across Australia in the form of floods, cyclones, hailstorms and bushfires. Resulting in total insured losses of around $12 billion and incalculable social impacts on communities, individuals and businesses.

During 2013, IPG participated in The Australian Business Roundtable for Disaster Resilience and Safer Communities. This group of six major organisations co-operated to release a white paper detailing a more sustainable and comprehensive approach to preparing for and managing natural disasters in Australia.

The ‘Building our Nation’s Resilience to Natural Disasters’ white paper commissioned by the group, forecasts the cost of natural disasters in Australia to rise from $6.3 billion a year currently to around $23 billion a year in 2050 as population density increases and the severity and frequency of storms, floods, cyclones and bushfires grow.

IPG joined roundtable member organisations to champion safer and more resilient communities and contributed organisational data and expertise to this vital work.

A copy of the white paper is available online: www.australianbusinessroundtable.com.au

During 2013/14, IPG will participate in a climate risk and adaptation assessment across the IPG portfolio to further identify opportunities to improve the resilience of Investa assets.

“ We are very pleased to be a member of the Australian Business Roundtable for Disaster Resilience and Safer Communities. This is a great vehicle to champion safer and more resilient Australian communities and galvanising government and community support to create change.”

Scott MacDonald, Chairman, Investa Property Group

31

Assurance

Management Statement

Since 2003, Investa has published eleven sustainability reports, including one ‘interim report’ the 2007 Sustainability Results Update, which bridged our transition from ‘financial year’ to ‘calendar year’ reporting. This 2012/13 report is a return to the Australian ‘financial year’ reporting framework in line with Investa’s funds.

A full explanation of Investa’s approach to reporting data is detailed in our Reporting Rules, available at: http://www.investa.com.au/sustainability-results-reports2013-assurance

Independent Assurance

Investa Asset Management Ltd, on behalf of Investa Office, have engaged KPMG to provide limited assurance on selected performance data for the year ended 31 March 2013. KPMG have provided assurance on the following data;

> Electricity – consumption intensity (kWh/sqm)> Gas – consumption intensity (MJ/sqm)> CO2-e – (electricity and gas) (kg.CO2-e/sqm)> Water – consumption intensity (L/sqm) and;> Net Lettable Area – floor area (NLA) of buildings in the dataset.

KPMG’s engagement is consistent with the scope of work performed in prior periods and has been conducted in accordance with the Australian Standard on Assurance Engagements ASAE3000.

KPMG’s assurance statement, including the selected performance data and the relevant reporting criteria, can be found online: www.investa.com.au/sustainability/assurance

For more details visit www.investa.com.au/sustainability/results

Global Reporting Initiative

The report has been prepared using the Global Reporting Initiative’s (GRI) G3.1 Guidelines. Investa’s online reporting is consistent with the Guidelines and addresses more than 20 indicators. A full index of indicators and company responses and initiatives for each indicator is available online at the Investa website.

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Glossary

Term Meaning

Board The Board of Directors of Investa Property Group and its related entities

BOSSA Building Occupant Survey System Australia, a research project led by the University of Sydney with industry partners to investigate indoor environment quality in the workplace.

BBP City of Sydney's Better Building Partnership

Carbon Footprint Investa Office and IPG carbon footprints include all Scope 1 and Scope 2 greenhouse gas emissions generated as a result of energy consumption (including electricity, natural gas and others fuels) as described in corporate reporting rules.

CBD Central Business District refers to the business and financial area of an Australian state capital city.

CDP Carbon Disclosure Project is an independent not-for-profit organisation that works with investors, businesses and governments to benchmark organisations' greenhouse gas emissions.

GreenPower GreenPower is an Australian government accreditation program that enables energy retailers to purchase electricity generated from renewable sources on behalf of the consumer.

GRESB Global Real Estate Sustainability Benchmark, from the GRESB Foundation, an investor-led organisation committed to assessing the sustainability performance of real estate portfolios around the globe.

GRI Global Reporting Initiative sets voluntary international reporting guidelines to ensure completeness, transparency, materiality and boundary setting of corporate reporting. A 'GRI Index' covers the environmental, social and financial report contents.

ISI Investa Sustainability Institute was established to facilitate action research for sustainability in the built environment. ‘Action research’ combines the pursuit of action and research outcomes at the same time.

IPG Investa Property Group is one of Australia’s largest unlisted owners and managers of quality real estate controlling assets worth more than $8 billion across the commercial, industrial and residential sectors.

IOF Investa Office Fund, which comprises of the AJO Fund and the PCP Trust, is an ASX-listed Real Estate Investment Trust which is included in the S&P/ASX 100 index.

ICPF Investa Commercial Property Fund is a core prime unlisted office fund for institutional investors, concentrating on premium grade office assets in the major Australian CBD markets.

IO Investa Office is part of Investa Property Group, one of Australia's largest office owners and managers. The company’s integrated real-estate platform incorporates property services, funds, portfolio and asset management, development and sustainability.

IPT Investa Property Trust, is a private unlisted managed fund, with assets to the value of $2.8 billion.*

Investa Land Investa Land is the land development business of Investa Property Group which has a pipeline value of more than $3 billion. Developments encompass broad-acre and infill subdivision, incorporating more than 9,500 residential lots and over 550 hectares of industrial land.

NABERS National Australian Built Environment Rating System, is a national rating system that measures the environmental performance of Australian buildings, tenancies, data centres, shopping centres and hotels.

NGERS National Greenhouse Emissions Reporting System, is an Australian system established by The National Greenhouse and Energy Reporting Act 2007, as a single national framework for reporting greenhouse gas emissions, abatement actions and energy consumption and production by corporations from July 2008.

NSCA National Safety Council of Australia, is Australia's premier Work Health and Safety (WH&S) skills and solutions, training, consulting, auditing and risk management provider.

PIF Property Industry Foundation, established in 1996, provides assistance to grass-roots charities that provide services to homeless and at risk youth.

RIAA Responsible Investment Association Australasia (RIAA) is the peak industry body for professionals working in responsible investment in Australia and New Zealand.

RSC The Risk and Sustainability Committee, a subcommittee reporting to the Boards of the Investa Group and is the key decision making body with responsibility for management of the safety, health, sustainability and environmental matters of Investa Property Group.

SHEMS IPG's Safety, Health and Environment Management System, is based on the Australian Standard AS/NZS/ISO 14001:2004 and guidelines.

sqm Square metres (or m²)

tCO2-e Tonnes of carbon dioxide equivalent is a distinct measure for describing how much global warming a given type and amount of greenhouse gas may cause, using the functionally equivalent amount or concentration of carbon dioxide (CO2) as the reference.

UNEPFI United Nations Environmental Program Finance Incentive is a global partnership between over 200 institutions, including banks, insurers and fund managers, and the UNEP to understand the impacts of environmental and social considerations on financial performance.

UNPRI United Nations Principles for Responsible Investment, proclaimed by the UN Secretary-General in 2005 are put into practice through a voluntary framework for investors to incorporate ESG issues into decision-making and ownership practices.

WALE Weighted Average Lease Expiry – Measures the weighted average lease term remaining to expire across a portfolio

WH&S Work Health & Safety previously known as Occupational Health & Safety

*Currency: All financial metrics are presented in Australian dollars (AUD).

DisclaimerThis document has been prepared by Investa Property Group (Investa). While reasonable care has been taken in the preparation of this document, Investa makes no representation or warranty (express or implied) in respect of this document including as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. In preparing this document, Investa may use and rely upon information from sources generally regarded as authoritative and reputable, but the information obtained from these sources may not have been independently verified by Investa.This document has been prepared for the purpose of providing general information (current at the time of publication unless otherwise indicated) only. This information contained in this document is also based on present circumstances, market conditions and beliefs which may change. It is not intended to provide, and should not be relied upon for investment, financial, accounting, legal or tax advice.To the maximum extent permitted by law, Investa accepts no responsibility or liability whatsoever for any expense, loss or damage arising out of or in any way connected with the use of all or part of this document nor will Investa bear any responsibility or liability as to the fairness, accuracy, completeness or correctness of the information in this document or provided in connection with it.

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Investa Office Sustainability Report 2013

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Transcript of Investa Office Sustainability Report 2013