Real estate investor and fund manager Cromwell Property Group (ASX:CMW) (Cromwell) has made  significant progress towards its long-term ESG targets in FY24, including sizeable reductions in Australian scope 1, 2, and 3 emissions.  

The ESG Report highlights Cromwell’s ESG progress made during FY24, which includes: 

• Scope 1 emissions in Australia decreased by 24%, primarily due to electrification projects and  continual improvement of building management practices. 
• Scope 2 emissions decreased by 58% through the purchase of GreenPower, a government accredited renewable energy product, along with energy efficiency measures and the  installation of additional on-site solar panels. 
• Scope 3 emissions in the Australian value chain decreased by 14% which represents all  upstream and downstream activities. A portion of this decrease is linked to downstream  leased assets as tenants benefitted from the shift to GreenPower. 

Commenting on the ESG strategy implementation, Cromwell Head of Property Operations, Tessa  Morrison, said ongoing delivery of ESG initiatives was being undertaken in close partnership with  building users to deliver tangible positive impacts. 

“We’ve seen a massive shift towards an ESG focus by tenants in the past 18 months – it’s always  been strategically important to us as a business, but it is increasingly becoming a key consideration for  occupiers in their decision making as well,” said Ms. Morrison.  

“A large part of Cromwell’s ESG approach is centred on ‘future proofing’ our assets – making sure we  can meet the current and future needs of occupiers. By installing solar energy infrastructure and making the shift to GreenPower in our buildings, for instance, we’re taking steps to secure the long term future of our assets and simultaneously aligning our approach with our occupiers’ ESG needs. 

“Larger tenants, in particular, are telling us that they need to have their net zero strategy in place;  they've got their own targets and, because of their footprint, they need to carefully consider the office  space they occupy.” 

“This means that if we can’t support tenants’ needs, they can’t meet their ESG objectives, but by  meeting tenant ESG demands – through the implementation of environmental, social, and governance  policies to produce tangible results – we’re working to maximise rental yield, reduce waste, and retain  tenants at the same time.” 

Global software corporation Dassault Systèmes (3DS) occupies a full floor at Cromwell Direct Property Fund’s 100 Creek Street building in Brisbane’s CBD. Gustavo Pilger, 3DS’s R&D Strategy &  Management Director, said, “ESG, and sustainability in general, is at the core of our purpose and  ambition as a company. It remains critical that we do business with organisations that place  importance on ESG also, so to see Cromwell make strides towards their own ESG ambitions has been  hugely encouraging.”

Business advisory firm ImpactInstitute occupies space in Tower 1 of Cromwell’s 475 Victoria Avenue complex in Chatswood. ImpactInstitute Managing Director Paula Cowan said, “as an organisation  committed to driving positive change for people and planet, it's been encouraging to see Cromwell's  ESG strategy align so closely with our purpose.” 

“It’s refreshing to be headquartered in a building where the owner has made tangible changes to reduce environmental impact and better the community in which we work and live – and has  committed to doing so going forward.” 

Earlier in 2024, global infrastructure consulting firm AECOM signed a seven-year lease extension – for  6,622 sqm of floorspace over two-and-a half levels – at the HQ North building in Fortitude Valley,  citing Cromwell’s ESG sustainable upgrades and high-quality facilities at the building as a determining  factor in remaining at the location. 

ESG Report 

Cromwell’s ESG progress has been released as part of the business’s FY24 ESG Report. The full report can be found here. 

Alongside disclosure of its FY24 progress, Cromwell has also highlighted a focus on efficient resource  utilisation and exploring opportunities in the transition to a low-carbon economy going forward. This  approach aims to drive sustainable value creation and build resilience against climate risks for the  business.

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