Natural Resources

Waste

Waste management is an important dimension of eco-efficiency, particularly for our Commercial Property operations where we have a high degree of influence in helping to manage and reduce waste. We anticipate that waste fees will increase when carbon starts to be accounted for and therefore, implementing waste reduction measures now will help reduce costs later.

A management challenge has been a lack of completeness in our waste data. In FY08, for example, we had accurate waste data for only 26 per cent of our office portfolio. In FY09, we improved our waste data collection systems. In December 2008 we completed a tender for waste management services to our office and retail sites. This included minimum performance requirements for waste diversion from landfill (including mandating 80 per cent recycling in our New South Wales office properties) and monthly reporting to a set format.

Complementing this process in FY08 we committed to implement waste recycling facilities at all of our retail centres to the recycling level available with the centre's local council area by FY10. We are progressing well against this target. Currently over 81 per cent of our retail centre portfolio has waste reporting in place. Fifteen per cent of retail waste is currently diverted from landfill. We have set a 20 per cent diversion target from landfill for retail sites in FY10. We have set a target of 70 per cent diversion from landfill for our office portfolio in FY10.

Using a single national approach for waste allows for consistency across states and asset classes and leads to more meaningful metrics, and waste management outcomes. Our minimum performance requirements also allow for waste audits to the standard of NABERS Waste ratings (using independent assessors) to validate outcomes.

Boundary: We are reporting against the same National Greenhouse and Energy Reporting Act (NGERA) 'operational control' boundary that we use for energy and water. We report on all properties within this boundary, with the exception of some properties where our tenants run their own waste contracts. We also report on a small number of additional properties that fall out of our NGERA boundary, but where we have taken on management of the waste contract for service provision purposes.

Boundary: Calculated based on total number of projects for which Stockland is the developer. Active waste is tracked through the builders as for these sites the principal contractor has operational control.

Waste in the development of new buildings

We are a signatory to the Green Building Council of Australia's Green Business Partnership. Under this agreement all new office assets are required to meet a minimum 4 Star Green Star rating. The rating framework enables us to consider aspects such as waste and material selection in the development of new office buildings. For retail buildings we either complete Green Star ratings or use our retail charter, both of which have equivalent requirements for development waste.

Green Star awards points for construction waste diverted from landfill, with targets of 60 and 80 per cent, and for allowing suitable space for recycling.

We also incorporate material selection credits by targeting low volatile organic compound paints and carpets, low formaldehyde wood and recycled content in structural materials.

We have received two 6 Star Green Star ratings (classified as 'World Leadership') in FY09 for our Sydney office, Stockhome, and 2 Victoria Avenue in Perth. Our Edmund Barton Building redevelopment and Triniti buildings A and B are currently registered for certification.

Working with suppliers to manage waste at our shopping centres

We are working with our preferred waste management suppliers to introduce recycled waste bins in our shopping centres. As a first step we are holding a pilot recycling project at four of our retail centres in New South Wales - Wetherill Park, Merrylands, Baulkham Hills and Green Hills. The project will be extended to all retail centres. Our waste management suppliers are identifying waste-sorting facilities to meet the needs of the business and to manage all waste streams, including general waste, co-mingled (plastics, aluminium cans and glass), paper/cardboard and organic waste.

Our Commercial Property team monitors waste management with suppliers submitting monthly reports on the waste streams.