Sustainability Report 2012/2013...example, alongside our colleagues at Investa Office. We are proud to present this Sustainability Report as a record of our achievements in 2012-13

2012/2013

INVESTA LAND

Sustainability Report

INVESTA LAND SUSTAINABILITY REPORT 2012/2013

www.investa.com.au/sustainability/

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

A Message from the National Sustainability Manager“ The 2013 Sustainability Report is the first standalone sustainability report for Investa Land. It is a solid demonstration of the many quiet achievements that our teams accomplish in delivering successful residential communities and industrial estates across Australia. We are excited about our ability to continually improve our sustainability performance to generate long term value for our customers, communities, partners and investors.”

Nina James, National Sustainability Manager, Investa Land

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ContentsInvesta Land 02Letter from the CEO 02Investa Land at a glance 03Our Vision and Mission 04Our Pledge 05Our Strategic Focus 06Our Pillars 07

Economic 10Social 12Environmental 14Governance 16

Investa Property Group 18

Letter from the Joint Managing Directors 18About Investa Property Group 19Performance Overview 20Industry Engagement and Leadership 22Corporate Giving and Social Sustainability 23

INVESTA LAND

Our reporting In 2012/13, the primary business of Investa Land was developing high quality industrial estates and residential developments that encompass broad acre residential subdivisions and masterplanned communities. The scope of reporting this year has been driven by the level of business influence and control over the ultimate performance of land developments and new communities, as described on page 6. Current activities will improve the availability and quality of sustainability data in future reports.

The information and corresponding time periods 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.

The Sustainability Reports for Investa Property Group are provided in two separate components this year, which correspond to the Group’s two main businesses – Investa Land and Investa Office. A summary of the sustainability performance of Investa Property Group as a whole is provided at the back of each document.

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Cameron Holt, CEO Investa Land

This reporting season has delivered much exciting opportunity and significant change for Investa Land. In March 2013, Investa Property Group announced the implementation of its business restructure plan, positioning Investa Land as a standalone business. The restructure presents a new and exciting opportunity for Investa Land to establish focused sustainability objectives, leveraging the experience and knowledge garnered over the last five years.

As part of this restructure, Investa Land has worked collaboratively to develop our overarching Vision, Mission and Executive Pledge. Collectively, these provide us with strategic direction for the future development of our business.

To deliver our new direction, we are developing a Sustainability Strategy. Our Strategy will integrate and embed our Vision, to deliver clear guiding principles for our developments. The development of the Sustainability Strategy marks a significant investment in resources and energy to improve our sustainability performance across our portfolio.

An example of this focus is demonstrated by one of our flagship projects – the achievement of nationally recognised sustainability accreditation via the Urban Development Institute of Australia. This illustrates a significant level of commitment by both the business and the project teams to lead the Australian residential industry in sustainability performance.

At Investa Land, we recognise that integrating sustainability isn’t just best practice, it’s good business. Authentic environmental and social performance translates directly into real commercial value and enhanced, long term financial performance. We seek to integrate the principles of sustainable development into every development decision we make.

We are excited and optimistic about the development of our core sustainability objectives, and continuing to lead by example, alongside our colleagues at Investa Office. We are proud to present this Sustainability Report as a record of our achievements in 2012-13.

Cameron Holt CEO, Investa Land

Letter from the CEOInvesta Land is pleased to provide our first Sustainability Report, demonstrating our approach and activities during 2012/13. Our renewed vision and strategic focus will provide enhanced lifestyle experiences for our residents and business owners, and more successful outcomes for our investors, partners, stakeholders and local environments.


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Investa Land at a glance

Development pipeline $3.4bn+Residential lots 9,500Industrial land 550ha

1. All statistics as at 30 June 2013

Current projects list

> BELLFLOWER > PALMVIEW> SWANBANK> NEWBASE> BRENTWOOD FOREST> BRENTWOOD RISE

> ANNFIELD STREET> SIENNA GARDENS> OAKLANDS> ELDERSLIE> FARRAGHER> GEORGES FAIR > IRONBARK> KOOINDAH WATERS > SOMERVIEW PARK > TURN 4

> BLOOMDALE> WYNDHAM VALE> MILL PARK LAKES > PARAMOUNT > EVANS PARK> LINK360

> EQUIS LAKE> MILLARS RUN

BREEZES

NSW

TAS

VIC

SA

NT

WA

ACTPERTH

MELBOURNE

SYDNEY

QLD

BRISBANE

DARWIN

Investa Land – Our Business

Investa Land is the land development business of Investa Property Group. The business undertakes industrial and residential development across Australia and has a development pipeline of more than $3.4 billion. Our residential and industrial developments encompass broad acre and infill subdivisions in New South Wales, Victoria, Queensland, Northern Territory and Western Australia. Encompassing a wide variety of residential and industrial projects, our portfolio is well positioned in the growth corridors of the states and territory in which we operate.

Investa Land is a fully diversified and integrated company: we buy, sell, own, develop and manage properties. We currently have 550 hectares of developable industrial land in Queensland, New South Wales and Victoria. Our residential property development team manages over 9,500 residential lots nationally.

Investa Land is based in Sydney with offices in Brisbane, Sunshine Coast, Melbourne and Darwin. Our office locations enable us to be engaged in the local market, applying honed expertise on the ground.

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Deliver excellence and value by creating vibrant residential neighbourhoods and industrial precincts.

Deliver operational efficiency and maximise end-value for our stakeholders

Contribute a positive legacy for future generations

Achieve industry recognition

Challenge ourselves continually to seek creative ways to work smarter

Build profitable partnerships with our stakeholders

Empower our people to give their best

Our Vision and Mission

Brentwood Rise, QLD

06 INVESTA LAND SUSTAINABILITY REPORT 2012/2013

To lead by example, own our successes and failures equally, build and nurture the talents of our people, encourage creativity and fun at work, value diversity and act with integrity always.

Our Pledge

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To demonstrate our leadership commitment to embedding a healthy and happy workplace culture, our Executive Team have composed a simple pledge to all staff. The aim of The Pledge is to clearly stipulate the culture and work environment we believe will lead to great success for both the business and for our people.

In line with The Pledge, The Executive Team have endorsed the Investa Land 2013 Sustainability Report, and are excited to witness the propulsion of our sustainability performance in the coming months.

Linda Walsh National Marketing & Sales Manager

Duncan Peacocke Chief Financial Officer

Our Executive Team

Andrew Murray Group General Counsel, Legal & Company Secretariat

Nina James National Sustainability Manager

Colette O’Reilly Human Resources Manager

Cameron Holt CEO

Bruce HarperGeneral Manager QLD

Paul O’BrienGeneral Manager VIC

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Our sustainability strategy08 INVESTA LAND SUSTAINABILITY REPORT 2012/2013

Our Strategic FocusAt Investa Land, we recognise that sustainability encompasses every aspect of our development process.

An integrated sustainability strategy is currently being developed for the business to improve our delivery platform and further embed sustainability principles into our operations. These principles aim to enhance our social, economic and environmental outcomes to deliver additional value to our stakeholders. Our strategy includes a five year development plan, addressing project objectives and the delivery of operational excellence.

Our core business activities

As a national land development company that does not regularly construct built form, there are only certain elements of a development’s ultimate performance that we directly control. We therefore ensure our focus and resources are allocated to those areas where we can have the greatest long-term positive impact – such as master planning and delivery of public infrastructure.

Our on-site sales and service teams engage and educate our end customers to enable them to make better decisions when constructing and subsequently living in their homes or operating their business premises.

Key aspects and ability to influence

Under care and control of Investa Land

Investa Land ability to influence

Strategic framework and master plan

Development of engaged communities

Environmental planning End user behaviours

Public domain works and streetscape design

Accessibility and amenity

Design guidelines Built form design and performance

Kooindah Waters, NSW

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Four Pillars of Sustainability

> Working with our partners to create long term value for our stakeholders

> Engaging with local business to support employment> Implementing innovative initiatives to provide cost savings

to our customers

> Learn more about our Economic Pillar on page 10

> Engaging our communities to create life long neighbourhoods

> Developing neighbourhoods which support interaction and connections

> Offering product to the market which supports integration of cultural diversity

> Learn more about our Social Pillar on page 12

> Supporting long term operation of ecosystem services> Engaging planning tools to minimise environmental impact

of development and maximise positive contribution opportunities

> Measuring our progress to make continuous improvement

> Learn more about our Environmental Pillar on page 14

> Committed leadership group> Long term strategies and planning in place> Adequate resources allocated to project initiatives

> Learn more about our Governance Pillar on page 16

Economic

Social

Governance

Environmental

This report details the achievements of Investa Land in reference to four pillars of sustainability:

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Our Strategy in Action Key highlights

We engage our communities, by delivering integrated social planning and affordable housing design guidelines

Across Australia, we have embedded water sensitive urban design principles to optimise use, and improve water quality on site

In our developments under construction this year, we exported just 0.01% of earthworks cut and fill off site

Community sponsorship is a high priority for Investa Land nationally. In 2013, these included key community institutions like Rotary and Surf Life Saving Clubs

In our Northern Territory development, we have mandated solar hot water provision on all homes

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An Integrated Development Approach

Investa Land has developed a systematic approach to integrating sustainability objectives into the project delivery platform. These are represented in the nine sustainability categories listed as follows:

Key themes How we define it How we do it

Access and Transport

Connecting our developments into local and regional precincts

Supporting sustainable modes of access and transport, such as footpath networks, public transport and cycle lanes

Architecture and Design

Promoting high quality and performance built form

Endorsing design guidelines to unify the character of our developments

Climate and Energy

Optimising energy efficiencies from master planning through to public domain infrastructure

Conducting resilience planning, considering lot orientation and setbacks, and provision of renewables where possible

Community Connecting our communities Creating community hubs, engaging community development officers, and supporting community organisations to establish longstanding engaged communities

Ecology Preserving our natural environment for future generations to enjoy

Commencing with the high level feasibilities right through to detail design to preserve and protect ecological systems within our estates

Equity and Local Economy

Making a positive and equitable contribution to the local economy

Working with partners to establish mixed use precincts, including employment lands and commercial lots to integrate appropriate business operation

Health and Wellbeing

Supporting healthy lifestyle choices within the developments

Providing ample recreation opportunities to encourage active lifestyle choices

Materials and Waste

Promoting waste minimisation, in line with reduce, reuse, recycle

Employing waste management, and customer education programmes

Water Employing water sensitive urban design techniques

Establishing water management plans to improve quality outflows and maximise re-use opportunities

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Economic PillarOur project performance

“ We worked closely with government throughout the planning phase to sensibly allocate employment lands at Bloomdale in Diggers Rest, Victoria. The development will create 850+ future new jobs in the local area, developing and supporting the local economy.” Paul O’Brien, General Manager, Investa Land Victoria

Paul O’Brien, General Manager, Investa Land Victoria

Breaking ground at Diggers Rest, Bloomdale VIC Iron Bark Industrial Estate, NSW

Supporting local employmentWe believe that a successful development is seamlessly integrated into the local community. An integral part of this is effective engagement with local stakeholders, including local business. We know the importance of having the ‘local shops’ within walking distance and as such, where scale permits, we seek to integrate a local commercial precinct, which may include a local childcare centre, library, chemist or corner store.

Supporting local employment at BloomdaleIn our large scale residential and industrial developments, we actively promote the inclusion of high employment lands such as retail and industrial uses, to provide local amenity to the community. Our Bloomdale project in Victoria is an example of this, where we have worked collaboratively with government to allocate 20 hectares of land at the site to employment uses to cater for future workers. The opportunity to work close to home provides many benefits, including activation of the local economy and reduced reliance on vehicle transport for residents.

Bloomdale will include a full line supermarket, showrooms, medical centre, tavern and local office, and business facilities to support the community, resulting in over 850 future local jobs and enabling many residents to walk to work. In addition, over 14 hectares of industrial land has been allocated for warehouse facilities and located in a convenient position for the community to access.

Mayor of the City of Melton, Cr Kathy Majdlik said, “The City of Melton is one of the fastest growing municipalities in Australia, which is why planned residential developments such as this are so critical for our community.

“Developments such as the Bloomdale master planned community in Diggers Rest further enhance the City of Melton’s appeal as an outstanding place to live, work and play, and I’m confident that it will become a highly sought after location to build a home and raise a family,” the Mayor said.

Attracting investment at Iron Bark Industrial EstateIn a first for industrial land development and as a means to attract further investment at Iron Bark Industrial Estate, Investa Land provided provision for on-site amenities including a café, indoor sports centre, pool, childcare centre and a health club, which offers a gym, squash courts and conference rooms. In addition, over 1,000,000 shrubs and trees were planted on-site, creating an award-winning dedicated bushland area and one of Australia’s most sustainable industrial precincts.

850+Future local jobs

1500 future Investa Land homes

$11.89m dedicated to open space at Bloomdale

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Nathan Huon, Investa Land Project Director NSW

Solar panels at Breezes, Muirhead NT Breezes, Muirhead NT

Affordable housing at Georges FairAccording to the 2011 University of Canberra and AMP report on housing affordability, house prices increased by 147% in the last decade, while incomes grew by only 57%. At Investa Land, we are acutely aware of affordability pressures in the housing market and actively seek to offer product to the market that is accessible, particularly for first home buyers.

To achieve this, we have worked collaboratively with our consultant and design teams to refine our product offering so it is both affordable and appropriate to market demand. The Georges Fair residential development in Moorebank, Sydney is an example of how our development team has proactively responded to changing market dynamics.

“At Georges Fair we delivered innovative small lots (300sqm) some three to four years ago. Since this time, this smaller, more affordable product has been positively received by the market and home builders, who have now developed a range of home designs to fit the sub-10m wide product. Many designs traditionally suited to the standard 12.5m wide blocks (formerly the smallest blocks on the market) can be modified to fit on the narrower 10m lots by simply deleting the second garage.

These lots are among the first to sell when released due to the lower total package price for home and land,” said Nathan Huon, Investa Land Project Director NSW.

Innovation increasing performance at BreezesAt Investa Land, we pursue innovative solutions to development challenges and continually seek out opportunities to add value for our customers. These solutions range from a site wide approach to cut and fill and tree retention, down to solar hot water provision.

According to the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education, the majority of Australia’s eight million homes currently use electric storage hot water systems, which each create approximately four tonnes of greenhouse gases annually. They are typically the largest source of greenhouse emissions from a home, and account for approximately one quarter of household energy use. Responding to these issues and rising electricity costs in Darwin, our Breezes Muirhead project mandated the provision of solar hot water units. The programme will potentially save our customers between $300 and $700 every year off the cost of heating hot water.

$300-700Annual saving per household in the cost of heating hot water

6.9 tonnes

Suburb emissions savings per year due to solar hot water

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Social PillarEngaging our stakeholders

“ When a sense of community is ignited in a neighbourhood, people feel more connected and welcome, creating a more engaged community. Active residents are more likely to become advocates, resulting in word of mouth referrals and clusters of family and friends moving to an area, thus reinforcing the community spirit.”

Kimberley Ward, Investa Land Marketing Project Manager NSW/WA

Georges Fair, Moorebank NSW Easter community event

Engaged communitiesAs a national land developer, we recognise the significance of our role in developing engaged and vibrant communities that are enjoyable places to live, work and play. In conjunction with our multidisciplinary teams of planners, engineers, builders and landscape architects, we are acutely aware of our ability to influence each development‘s sense of place and community connections.

At Investa Land, we know that the most important part of social integration is understanding the local context and working with the local community to establish engaged and connected neighbourhoods. With this in mind, we seek to involve our residents in community activities as soon as they move in. Our development, sales and marketing teams collaborate to directly facilitate events in our projects, which are culturally inclusive and that encourage neighbours to connect with each other.

Engaged communities at Georges FairInvesta Land organises, manages and promotes three major, resident-focused events per year at the Georges Fair residential community in Moorebank, NSW – an Easter event, the Georges Fair Spring Fair and a Residents’ Christmas party, which incorporates a Christmas lights competition.

Georges Fair uses these events to raise awareness of the project and to build a sense of community at the estate. A high level of community engagement is achieved through these free events which are enhanced via competitions run through social media.

The Georges Fair Spring Fair also draws a crowd, with over 3,000 people attending the 2012 event and close to 4,000 attending the 2013 event. On the day, raffle and ride tickets are sold to raise money for the Liverpool Hospital. In the years to 2012 $17,000 had been raised for the Paediatric Unit. In 2013, $10,000 was raised for the Palliative Care Ward at Liverpool Hospital. These donations allow the Hospital to purchase much needed equipment.

The Easter event incorporates a show for children featuring the Easter Bunny and an Easter egg scramble. The 2013 event was attended by over 200 children with their families from within Georges Fair and the local Moorebank/Liverpool area. The event helps foster a sense of community within Georges Fair, offering an opportunity for neighbours to come together.

4,000 locals attended the Spring Fair 2013

$27,000Funds raised for the Liverpool Hospital

450 homes built by 2013

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Activated public domain – healthy communitiesOur development teams appreciate the significant contribution that open space and the public domain make to both the aesthetic appeal of a development and its role in enabling active, healthy community living. We work with our consultants to deliver high quality public domain and open space networks, which integrate inclusive, all-abilities recreation opportunities.

At Investa Land, we pride ourselves on delivering above the accepted standard of 2.83 hectares per 1,000 persons of open space wherever feasible. As a base line, we ensure the open space and public domain are well connected via generous footpath networks and offer a broad range of both passive and active recreation for all ages.

Our Northern Territory development, Breezes Muirhead has allocated some 33.94 hectares or 20% of the development to public open space. This master planned community includes five local parks as well as three linear habitat corridors. The parks have been designed to accommodate particular age groups and seek to balance passive and active recreation activities.

Connections at Kooindah WatersA key priority for our development teams is to work collaboratively with local authorities to ensure that each project is planned in a way that provides residents with good connectivity to key external services and amenities, such as public transport and local pedestrian networks.

At Kooindah Waters Residential Golf and Spa Resort on the Central Coast NSW, our development team ensured the number 81 bus included a stop at the resort, connecting residents to the Wyong Interchange and train station, maximising their access to the local bus and train network. Ensuring good access to public transport options is just one way we make sure our developments are well connected.

Sharing knowledgeAt Investa Land, we understand the mutual benefits that can be achieved by collaboration and knowledge exchange and actively share our knowledge and expertise with our stakeholders. We believe this extends beyond the initial sales transaction to include activities such as running local community events, creating local employment opportunities and supplying advice and education material on how to live more sustainably in their home or office. We believe this is one of the elements that sets us apart from other Australian land developers.

We know that purchasing land and building a new home for the first time can be an overwhelming experience. In response to this, we have developed Home Buyer’s Guides that are designed to step our customers through the process with confidence. In addition to supporting our buyer’s purchasing journey, the guides also integrate information about how they can make more sustainable choices when selecting the design, fixtures and fittings of their home.

Our Breezes Muirhead Tropical Home Buyer’s Guide is a wonderful demonstration of this approach to knowledge sharing. Developed in collaboration with Defence Housing Australia and the Institute for Sustainable Futures at the University of Technology Sydney, the Guide provides a customer friendly step-by-step guide to purchasing a home in the Northern Territory. The Guide offers helpful tips about solar orientation, insulation, fixture selections and landscaping to maximise the efficiency of a new home, and ultimately reduce the cost of operation.

“ At Breezes Muirhead, we have sought to provide active park space and connections to the surrounding recreational spots to boost exercise and community interaction. To create a comfortable relaxed neighbourhood typical to Darwin, access to open space is vital.”

Mike Donnelly, Investa Land Senior Development Manager, Residential NT

20% land dedicated to open space

10kms of shared pathways

Tropical Home Buyer’s Guide to efficient top end homes

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Environmental Pillar Meeting environmental challenges and optimising performance

Valuing the natural environmentWe value the immense contribution that the natural environment makes to both our developments and to the broader community. The preservation of biodiversity is of the highest concern when developing our residential and industrial assets. As a base line, Investa Land conducts the regulatory site planning and management requirements. However, where possible, we believe in embellishing the natural environment to deliver a total improvement of the ecosystems on site.

Valuing the environment at Kooindah WatersJust one example of this approach is demonstrated in our NSW Central Coast development Kooindah Waters Residential Golf and Spa Resort. Prior to our development, the site was a contaminated highly degraded swampland. Investa Land committed to decontaminating the land and to holistically reinstating the healthy wetland to support biodiversity and improve the water quality.

As part of the regeneration of the wetlands, approximately 30% of the site was re-vegetated, including 130,000sqm of wetlands. An on-site nursery was established to produce some 300,000 endemic species, to be planted as part of the improvement works.

Regenerated wetlands at Kooindah Waters, NSW

30% of site revegetated

300,000 endemic species grown on site nursery

130,000sqm wetlands

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Rehabilitated Wetlands at Kooindah Waters

Climate adaption planningThe Australian climate is, and has always been, one of extreme contrast, oscillating between drought and flood. However, Australia has just experienced its warmest 12 months since climate records began. With the onset of predicted climate change, the severity of events like these are likely to increase.

Investa Land is actively responding to these climate triggers and is working toward incorporating Climate Adaptation Planning into its activities. Resilience planning of this nature is critical to our business to achieve best practice risk mitigation and preparedness.

Valuing our natural resources From early 2010 to early 2012 Australia’s east coast has experienced several very heavy rainfall events, fuelled by record-high sea surface temperatures. Strong weather systems brought the highest total two year Australian-average rainfall on record. Extreme and extended rainfall over large areas of Queensland led to record-breaking and very damaging flooding. Approximately 2.5 million people were affected and 29,000 homes and businesses experienced some form of flooding. The economic cost of the flooding was estimated to be in excess of $5 billion.

Investa Land operates nationally, and as such, is acutely aware of the changing climatic conditions and the impacts these will have on our developments now and in the future. In response to changing conditions, we have integrated Water Sensitive Urban Design (WSUD) as a base line on all projects. These measures both conserve water in times of dry and assist in flood mitigation during heavy rainfall events.

Valuing our natural resources at Evans ParkOur Evans Park project in Cranbourne West, VIC is a good example of our integrated approach to Water Sensitive Urban Design (WSUD). The site includes an extensive wetland, which is integrated with an existing Melbourne Water retarding basin. The wetland accommodates water quality treatment for approximately half the total site and provides critical habitat for local flora and fauna. Our overarching approach to WSUD at this development has been to maximise the water treatment opportunity and optimise biodiversity and aesthetic qualities. We are particularly proud to be able to provide habitat suitable to support the federally listed threatened species Growling Grass Frog and Dwarf Glaxia.

Aerial view of Evans Park, VIC

“ At Evans Park we identified a significant indigenous tree species and designed the precinct drainage scheme in a manner to avoid damage to the tree. This enabled the tree to be retained for its visual impact and will enhance the recreation space for the benefit of estate residents and the wider community.”

Lewis Cormie Development Manager, Industrial & Residential VIC

2.75ha and $100,000 to be invested in Growling Grass Frog habitat

4.74ha dedicated to open space

One third of site area zoned mixed use to integrate residential and work from home built product

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Governance PillarBest practice governance

Our approach to governanceThe Investa Land Executive Team have committed to a strong governance framework, which has embedded values of accountability, empowerment and operational excellence. In line with the company Mission Statement, the Executive adheres to best practice governance by maintaining extensive and transparent disclosure and on-going sustainability performance reporting.

The Risk and Sustainability Committee of the Board of Investa Property Group is the senior decision making body regarding sustainability. The Committee Charter includes management of Environment, Social and Governance (ESG) issues.

Code of conductHow we define positive behaviours

To minimise exposure to safety risk, we promote ethical and responsible decision making by employing a universal Code of Conduct. Every member of the Investa Land team are required to read and commit to The Code, as part of the ‘on boarding’ programme. The Code defines behaviours such as;

Acting with honesty and integrity

Respecting the law and company policies

Respecting confidentiality

Valuing and maintaining professionalism

Avoiding conflicts of interest

Striving to be a good corporate citizen and achieving community respect

Mill Park Lakes, VIC

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SafetyDuring the reporting period, Investa Land conducted over 415,000 man-hours of physical works across its development business. We undertake a diverse range of activities across the development spectrum and our safety platform is structured to accommodate these varying activities. While Investa Land’s level of direct control over site safety varies depending on a range of factors, our primary focus is the safety of workers, whether they are staff or external contractors.

During the reporting period, there were 75,000 man-hours of work undertaken on sites that were directly controlled by Investa Land. No injuries reported on these sites during that time. On sites controlled by other parties, there were approximately 340,000 man-hours of work undertaken. There were 20 incidents which resulted in injuries which required medical treatment, and four of those resulted in ‘lost time’ (an injury whereby the worker cannot return to duties the following day).

Innovations and awards2013 Ipswich City Council Awards for Excellence – Master Planned Development Winner of Silver Medal – Brentwood Forest, QLD

Property Council of Australia – 2013 Best Business and Industrial Park Development Finalist – Paramount Industrial Estate, VIC

Urban Development Institute of Australia (UDIA) Winner – 2012 Best Residential Subdivision Queensland Brentwood Rise, Augustine Heights Ipswich Region, QLD

Planning Institute of Australia – QLD Division 2012 Industrial Planning Certificate of Merit – Swanbank, QLD

2012 NSW Tourism Awards Gold Award for Excellence in Business Tourism Mercure Kooindah Waters, Wyong Central Coast Region, NSW

Planning Institute of Australia – NT 2012 Awards for Planning Excellence Best Planning Ideas, Small Project – Breezes Muirhead, NT

75,000 man-hours worked on Investa Land controlled sites, 0 injuries reported

340,000 hours worked, 20 Incidents on Sites not controlled by Investa Land

Paramount Industrial Estate, VICBrentwood Rise, QLD

GOLD AWARD

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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.

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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 Land 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, Investa Property Group (IPG)

September 2013

Jonathan Callaghan, Joint Managing Director, Investa Property Group (IPG)


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1. All statistics at 30 June 2013

About Investa Property Group

Georges Fair, Moorebank NSWInvesta Head Office,

126 Phillip Street, Sydney

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) $3.4bn+

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

Jonathan Callaghan, Joint Managing Director, Investa Property Group (IPG)

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Performance Overview

Scott MacDonald, Chairman, Investa Property Group

“ 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%

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> 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%


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.”

Jonathan Callaghan, Joint Managing Director, IPG

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/

RIAA1 – 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:

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

Cameron Holt, CEO, Investa Land

Corporate Giving and Social Sustainability

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.

Kooindah Waters, NSW


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

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.

Developing a sustainable future

[email protected] PROPERTY GROUP Level 6, Deutsche Bank Place126 Phillip StreetSydney NSW 2000T +61 2 8226 9300 F +61 2 9844 9300

Documents

Sustainability Report 2012/2013...example, alongside our colleagues at Investa Office. We are proud to present this Sustainability Report as a record of our achievements in 2012-13