Our Approach

Climate change risks and opportunities

Risks

Climate change risks for our business include increasing physical risks from adverse weather and increasing operational costs such as energy and insurance costs. At DEXUS we take a prudent view of risk management and have in place a strong framework that includes the consideration of climate change risks. We report on the following risks annually in the CDP report:

Regulatory risks

DEXUS plays an active role in the property industry and liaises with our peers, government and policy makers to remain informed regarding current and potential regulatory changes. The development of our resource consumption database and our commitment to maintaining NABERS Energy and Water ratings for our entire office portfolio ensures we are well positioned to respond to current and proposed legislation. Recognising increasing performance expectations, we are focused on increasing the energy and carbon efficiency of our office properties to deliver continuous improvements in current NABERS ratings.

Physical risks

The potential physical risks from climate change relate largely to adverse weather impacts. Ensuring we have uncompromised building integrity and a comprehensive insurance program in place provides protection from physical risks. Importantly, we also need to consider the potential impacts of climate change on the less tangible aspects of property operations. For example, we ensure our heating, ventilation and air conditioning systems are energy efficient and capable of providing tenant comfort under the increased ambient temperatures which are predicted to occur with climate change.

To achieve this, all heating, ventilation and air conditioning upgrade strategies take into consideration current and future tenant expectations of system capabilities. It is also important to optimise the performance of these operating systems including fine tuning settings and utilising effective zone controls in line with varying heat loads in the building.

Opportunities

Preparedness for climate change can also present opportunities. Like all business processes, ensuring we have the framework in place to consider climate change assists in identifying opportunities. We believe that proactive management of our environmental performance can provide us with a competitive advantage in offering leading workspace solutions to attract and retain tenants, which in turn can drive further investor value.