Goodman Group Sustainability Report 2022

GOODMAN GROUP GREENHOUSE GAS EMISSIONS

Reporting boundary

Goodman Group calculates its global greenhouse gas emissions from its operations using the GHG Protocol. Goodman reports its operational carbon inventory annually to Climate Active as part of our commitment to maintaining our carbon-neutral organisation certification.

Our emissions boundary is based on operational control. Our inventory includes emissions generated from Goodman’s corporate activities and managed portfolio emissions, which relate to properties and areas where we are involved in the day-to-day operations. For example, electricity emissions generated by common area lifts or carpark lights of an estate would be included, as Goodman oversees the operating and maintenance schedules.

We take responsibility for 100% of these emissions, regardless of the Group’s equity share in the Investment Partnership that owns the property. For our Climate Active carbon-neutral organisation certification, our boundary excludes emissions generated by our customers’ activities within leased areas. However, our science based targets, discussed below, include customer emissions.

Carbon inventory

The below table details our FY22 operational emissions used for Climate Active certification. During the year, we saw a significant decrease in Scope 2 emissions due to the purchase of 100% GreenPower across Goodman’s Australian offices and properties.

GHG scope Emissions source 2021
t
CO2-e1
2022
t
CO2-e
Scope 1 Natural Gas 1,001 899
Fuels 898 846
Refrigerants 1,414 1,360
Scope 2 Electricity 37,065 11,6372
Scope 3 Energy 4,251 748
Waste 3,073 2,975
IT 1,388 1,320
Marketing 999 1,141
Corporate travel 474 590
Employee commuting 292 438
Working from home 132 169
Other expenses3 1,974 1,605
Total 52,962 23,728

1 Due to the availability of more current data, previous data has been updated, where applicable.

2 Market-based emissions. Scope 2 location-based emissions are equivalent to 29,765 tCO2-e.

3 Accommodation, water use, advertising, cleaning, telecommunications, other expenses.

2022 OPERATIONAL EMISSIONS (tCO2-e)

ANNUAL OPERATIONAL EMISSIONS (tCO2-e)

Scope 1 Scope 2 Scope3

Science-based targets

This year the Science Based Targets initiative validated Goodman’s 2030 emissions reduction commitments. Using a 2021 baseline, our targets include reducing our absolute Scope 1 and 2 GHG emissions by 42% in total.

Our Scope 3 targets include reducing emissions by 50% per square metre, including both downstream leased and sold assets. Our progress is detailed below.

GHG
scope
Unit 2021 2022 2030
target
Scope 1+2 tCO2-e 40,379 14,7421 23,420
Scope 3 kgCO2-e/m2 leased assets 39.9 37.8 20.0
Scope 3 kgCO2-e/m2 sold assets 502.5 442.6 251.2

1 Market-based emissions. Scope 1+2 location-based emissions are equivalent to 32,870 tCO2-e.

Sustainability-linked bond

This year Goodman created a Sustainability-Linked Bond (SLB) Framework using Goodman’s science-based targets for our Scope 1 and Scope 2 emissions as the performance criteria. After developing the Framework, Goodman issued its first SLB into the Rule 144A / Reg S market with a scheduled maturity of 2032.

Our annual progress can be seen in the below table. Note that the large reduction in Scope 2 emissions is predominantly due to the uptake of 100% GreenPower in our Australian business.

GHG
scope
2021 tCO2-e1 2022 tCO2-e2 2030
target
Scope 1 3,314 3,105
Scope 2 37,065 11,6373
Total 40,379 14,742 23,420

1 Validated by the Science Based Targets initiative

2 Externally verified under ASRS 4400 by a qualified, independent reviewer

3 Market-based emissions. Scope 2 location-based emissions are equivalent to 29,765 tCO2-e.

Goodman Qingpu Centre, Shanghai, China.

Goodman
Global workforce

WORKFORCE FY20 FY21 FY22
Total number of contractor employees (fixed term/temporary) < 5% < 5% < 5%
Number of employees at end of year: global 963 922 950
Australia 288 287 314
NZ 63 58 61
Europe 214 187 202
UK 35 33 37
China 212 192 171
Japan 63 63 64
US 56 58 70
Brazil 32 33 31
Total workforce by age  
<20 1 0 2
20-29 166 139 135
30-39 357 331 317
40-49 299 289 296
50-59 102 129 144
>60 36 34 36
Total workforce by gender  
Female 43% 44% 44%
Male 57% 56% 56%
Governance bodies  
Non-executive Directors on Goodman Boards 70% 70% 72%
Female Directors on Goodman Boards (Non-executive) 28.5% 28.5% 27%
Parental leave  
Total number of employees entitled to parental leave All employees in accordance with local regulations All employees in accordance with local regulations All employees in accordance with local regulations
Number of employees who took parental leave through the year 23 male

11 female

27 male

22 female

12 male

38 female

Number of employees who returned from parental leave 24 male

12 female

27 male

22 female

10 male

25 female

Number of employees who returned from leave still employed 12 months later 24 male

11 female

26 male

19 female

13 male

12 female

Learning and development  
Percentage of employees who had regular performance and career development reviews 93% 93% 96%

Health and safety

HEALTH AND SAFETY FY20 FY21 FY22
Employees in Goodman controlled premises covered by the Goodman Safety System 100% 100% 100%
Number and rate of employee workplace fatalities 0 0 0
Number and rate of lost time injury frequency 0 0 0
Total number of employee hours worked c. 2 million c. 2 million c. 2 million
Development projects – Principle Contractor Controlled Sites2  
Number of contractor fatalities 1 contractor, 1 visitor 4 contractors 0
Number and rate lost time injury frequency rate1 1.35 0.59 0.49
Number and rate total recordable injury frequency rate1 4.00 1.96 1.84
Total number of worker hours worked (Development Principle Contractors) c.5.3 million c.12.1 million c.17.6 million

1. Frequency rates are standardised to 200,000 hours.
2. Development data is taken from sites under the control of Principle Contractors.

Global reporting
initiative (GRI) Index

Disclosure Description Location or direct response
GR1102: General Disclosures
102-1 Name of the organisation Goodman Group which comprises three entities:
Goodman Limited
Goodman Funds Management Limited, as the responsible entity for Goodman Industrial Trust Goodman Logistics (HK)
102-2 Activities, brands, products, and services What we do
102-3 Location of headquarters 1-11 Hayes Road, Rosebery, NSW, 2018, Australia
102-4 Location of operations Goodman Sustainability Report, Strategic Locations
102-5 Ownership and legal form About us
102-6 Markets served About us
102-7 Scale of the organisation About us
102-8 Information of employees and other workers Goodman Sustainability Report, Human capital management
102-9 Supply chain Modern slavery statement
102-10 Significant changes to the organisation and its supply chain Annual Report - page 24
102-11 Precautionary Principle or approach Goodman’s risk management process includes evaluation using the precautionary principle. This means Goodman’s actions are based on potential ESG impact, instead of proven impact, as a precaution.
102-12 External initiatives Goodman Sustainability Report, ESG affiliations and partnerships - United Nations Sustainable Development Goals, SBTi, TCFD, GRESB, Climate Leaders Coalition, Sustainalytics, MSCI, GRI and ISO Standards.
102-13 Membership of associations Goodman Sustainability Report, ESG affiliations and partnerships - Various global relationships including Property Council of Australia, Green Building Council of Australia, Australasian Investor Relations Association, GRESB, ANREV and INREV plus various professional memberships
102-14 Statement of senior decision maker Goodman Sustainability Report, Chairman’s Letter
102-14 Statement of senior decision maker Goodman Sustainability Report, CEO’s letter
102-15 Key impacts, risks and opportunities Goodman Sustainability Report, CEO’s letter
102-15 Key impacts, risks and opportunities Goodman Sustainability Report, Sustainability approach
102-15 Key impacts, risks and opportunities TCFD Statement – pages 4-8
102-16 Values, principles, standards and norms of behaviour Diversity and inclusion policy – page 1
102-16 Values, principles, standards and norms of behaviour Code of Conduct – page 3
102-16 Values, principles, standards and norms of behaviour Statement of Business ethics – page 2
102-16 Values, principles, standards and norms of behaviour Workplace bullying and harassment policy – page 3
102-16 Values, principles, standards and norms of behaviour Corporate Governance Statement – page 3, Principle 3
102-17 Mechanisms for advice and concerns about ethics Ethical concerns (whistleblower) policy
102-17 Mechanisms for advice and concerns about ethics Corporate Governance Statement – page 3 Principle 3, page 3 Principle 4, page 3 Principle 7
102-18 Governance structure Goodman Sustainability Report, How we’re structured – page 22
102-18 Governance structure Corporate Governance Statement – page 2 Principle 1, page 3 Principle 2, page 3, Principle 3, page 3 Principle 4, page 3 Principle 7
102-20 Executive-level responsibility for economic, environmental, and social topics Corporate Governance Statement – page 4
102-21 Consulting stakeholders on economic, environmental, and social topics Corporate Governance Statement – page 3 Principle 6
102-22 Composition of the highest governance body and its committees Corporate Governance Statement – page 3 Principle 2, page 5 Board composition
102-23 Chair of the highest governance committee Board of Directors
102-23 Chair of the highest governance committee Board of Directors
102-24 Nominating and selecting the highest governance body Corporate Governance Statement– page 2 Principle 1, page 3 Principle 2
102-25 Conflicts of interest Conflicts of interest – pages 2-3
102-25 Conflicts of interest Corporate Governance Statement – page 3 Principle 2, page 3 Principle 3
102-26 Role of highest governance body in setting purpose, values, and strategy Goodman Sustainability Report, The Boards and Committees
102-26 Role of highest governance body in setting purpose, values, and strategy Board of Directors
102-26 Role of highest governance body in setting purpose, values, and strategy Corporate Governance Statement – page 2 Principle 1
102-27 Collective knowledge of highest governance body Goodman Sustainability Report, Board of Directors
102-27 Collective knowledge of highest governance body Corporate Governance Statement – page 3 Principle 2, page 7 Board skills
102-28 Evaluating the highest governance body's performance Corporate Governance Statement – page 2 Principle 1
102-29 dentifying and managing, economic, environmental, and social impacts Corporate Governance Statement – page 3 Principle 7
102-30 Effectiveness of risk management processes Corporate Governance Statement – page 3 Principle 7
102-31 Review of economic, environmental, and social topics Corporate Governance Statement – page 3 Principle 7
102-32 Highest governance body's role in sustainability reporting Corporate Governance Statement – page 3 Principle 3
102-32 Highest governance body's role in sustainability reporting Corporate Governance Statement – page 3 Principle 7
102-33 Communicating critical concerns Corporate Governance Statement– page 3 Principle 7
102-35 Remuneration policies Corporate Governance Statement – page 3 Principle 8
102-35 Remuneration policies Remuneration Committee Charter
102-36 Process for determining remuneration Corporate Governance Statement– page 3 Principle 8
102-36 Process for determining remuneration Remuneration Committee Charter
102-37 Stakeholders' involvement in remuneration Corporate Governance Statement – page 3 Principle 6
102-37 Stakeholders' involvement in remuneration Remuneration Committee Charter
102-40 List of stakeholder groups Goodman Sustainability Report, Our Purpose
102-40 List of stakeholder groups Goodman Sustainability Report, Engaging our stakeholders
102-41 Collective bargaining agreements Goodman is not opposed to collective bargaining although the relationship we have with our employees means we have no single global collective bargaining agreement.
102-42 Identifying and selecting stakeholders Goodman Sustainability Report, Engaging our stakeholders
102-43 Approach to stakeholder engagement Goodman Sustainability Report, Engaging our stakeholders
102-44 Approach to stakeholder engagement Goodman Sustainability Report, Engaging our stakeholders
102-45 Entities included in the consolidated financial statements Annual Report
102-46 Defining report content and topic Boundaries This report has been prepared in accordance with the GRI standards core option. Our report includes FY22 performance highlights from across Goodman’s global operations. Goodman.com/Corporate governance
102-47 List of material topics Goodman Sustainability Report, Sustainability approach
102-48 Restatements of information No restatements have been made
102-49 Changes in reporting No changes. Reporting is aligned with GRI standards: Core option
102-50 Reporting period Reporting period is for 12 months: 1 July 2021 – 30 June 2022
102-51 Date of most recent report December 2021
102-52 Reporting cycle Annual
102-53 Contact point for questions regarding the report James Vesper
102-54 Claims of reporting in accordance with the GRI standard This report has been prepared in accordance with the GRI Standards: Core option
102-55 GRI content index This document represents the company’s content index
102-56 External assurance External assurance is provided over financials and selected carbon emissions data is independently verified
GRI 201 Economic Performance
201-1 Direct economic value generated and distributed Annual Report
201-2 Financial implications and other risks and opportunities due to climate change TCFD Statement – pages 4-8
GRI 205 Anti-corruption
205-1 Operations assessed for risks related to corruption Anti-bribery and corruption policy – page 3
205-1 Operations assessed for risks related to corruption Ethical concerns policy – page 2
205-2 Communication and training about anti-corruption policies and procedures Code of Conduct – page 3
205-2 Communication and training about anti-corruption policies and procedures Anti-bribery and corruption policy – page 3
205-3 Confirmed incidents of corruption and actions taken There were no instances of corruption identified during this period
GRI 206 Anti-competitive behaviour
206-1 Legal actions for anti-competitive behaviour, anti-trust, and monopoly practices No current legal actions are recorded
GRI 304 Biodiversity
304-4 IUCN Red List species and national conservation list species with habitats in areas affected by operations Ecologists are engaged to research, identify and report on threatened species, terrestrial or aquatic, on development sites
GRI 305 Emissions
305-1 Direct (Scope 1) GHG emissions Goodman Sustainability Report, Carbon inventory
GRI 306 Water
306-3 Significant spills No significant spills were identified
306-4 Transport of hazardous waste Goodman does not transport hazardous waste as part of day-to-day operations. If remediation is required, Goodman appoints principal contractors to complete works in accordance with applicable laws and regulations. Under its lease obligations, Moorabbin Airport, a subsidiary of Goodman Limited, manages legacy obligations relating to historical use PFAS at the airport. More information can be found at https://www.moorabbinairport.com.au/about-us/environment
GRI 307 Environmental Compliance
307-1 Non-compliance with environmental laws and regulations No significant breaches of environmental laws
GRI 401 Employment
401-1 New employee hires and employee turnover 6.4% voluntary turnover rate
401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees Part-time employees receive the same benefits on a pro-rated basis or eligibility as full-time employees. Employees on a fixed term or casual basis do not participate in the Goodman long-term incentive plan.
401-3 Parental leave Goodman Sustainability Report, ESG metrics, Goodman global workforce
GRI 403 Occupational Health and Safety
403-1 Occupational health and safety management system Goodman Sustainability Report, Systems for Safety
403-2 Hazard identification, risk assessment, and incident investigation Goodman Sustainability Report, Systems for Safety
403-3 Occupational health services Goodman Sustainability Report, Systems for Safety
403-4 Worker participation, consultation, and communication on occupational health and safety Goodman Sustainability Report, Systems for Safety
403-5 Worker training on occupational health and safety Goodman Sustainability Report, Systems for Safety
403-8 Workers covered by an occupational health and safety management system Goodman Sustainability Report, ESG metrics, Health and Safety
403-9 Work-related injuries Goodman Sustainability Report, ESG metrics, Health and Safety
GRI 404 Training and Education
404-2 Programs for upgrading employee skills and transition assistance programs Goodman Sustainability Report, Human capital management
404-3 Percentage of employees receiving regular performance and career development reviews Goodman Sustainability Report, Human capital management
GRI 405 Diversity and Equal Opportunity
405-1 Diversity of governance bodies and employees Goodman Sustainability Report, ESG metrics, Goodman global workforce
GRI 407 Freedom of Association and Collective Bargaining
407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk Goodman does not prohibit or restrict freedom of association
GRI 413 Local Communities
413-1 Operations with local community engagement, impact assessments, and development programs Goodman Sustainability Report, Goodman Foundation
413-1 Operations with local community engagement, impact assessments, and development programs Goodman Sustainability Report, Reconciliation Action Plan
GRI 418 Customer Privacy
418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data There were no reported incidents

ESG affiliations
and partnerships

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TCFD

The TCFD aims to guide companies in incorporating the considerations of the effects of climate change into business and financial decisions to help facilitate the transition to a more sustainable, lower carbon economy.

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MSCI

The MSCI ESG Ratings are designed to measure the long-term resilience of a company by investigating ESG performance and industry-specific material risks not identified through conventional financial analysis.

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GRESB

GRESB globally benchmarks the ESG performance of commercial real estate and infrastructure companies to provide investors with standardised and validated data for informing investment decision making.

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GREENPOWER

GreenPower is 100% renewable energy available for households and businesses through most energy retailers in Australia.

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CLIMATE ACTIVE

Climate Active certification is awarded to businesses and organisations that have credibly achieved carbon neutrality. The Climate Active initiative and Climate Carbon Neutral Standard provide a framework for businesses to measure, reduce and offset their carbon emissions.

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RECONCILIATION AUSTRALIA

Reconciliation Australia is a not-for-profit foundation that advances the national focus for reconciliation between Indigenous and non-Indigenous Australians.

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SUSTAINALYTICS

Sustainalytics’ ESG Risk Ratings measure and assess a company’s managed and unmanaged industry-specific ESG risks.

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MECLA

Driving reductions in embodied carbon in the building and construction industry.

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Science based targets

The Science Based Targets initiative (SBTi) drives ambitious climate action in the private sector by enabling organisations to set science-based emissions reduction targets.

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Climate leaders coalition

CLC is a group of cross-sectoral Australian corporate CEOs supporting the Paris Agreement commitments and setting public decarbonisation targets.