Environment

Climate Change

Understanding risks helps to ensure we develop, own and manage buildings and communities able to withstand the future effects of climate change. The Intergovernmental Panel on Climate Change's (IPCC) Fourth Assessment report predicted that likely impacts on property include increased warmer days, heavy precipitation events and incidence of extreme high sea level. Should these predictions be realised they will place greater demand on the built environment.

We are working to prioritise emerging risks, particularly in relation to flooding, storm surge and sea level rise; and increased threat of bushfire. Already we take into consideration flooding and fire risks in the planning stages of development. We are now undertaking research to develop minimum performance requirements in response to climate change risks.

Biodiversity

In 2009 we undertook a review of our Residential Communities and Retirement Living businesses and identified that 22 per cent of communities have threatened species located on or near the community. In response to this all communities have implemented biodiversity management plans. Detailed mapping of threatened and endangered species on all projects will be undertaken in 2010.

Energy Efficiency

The major contributor to Stockland's carbon footprint is energy used in our office, industrial and retail properties. In response to the Federal Government's Energy Efficiency Opportunities Act, we have undertaken energy-efficiency assessments across these properties.

The National Australian Built Environmental Rating System (NABERS), measures our office buildings' environmental performance during operation. We achieved a portfolio average NABERS Energy rating of 3.4 stars for the 2008 calendar year. This was an improvement from the previous year when we received an average rating of 2.9 stars.

Energy efficiency performance in retail centres is measured through monthly energy usage reports. Following energy audits on 19 centres we have made changes which will lead to an estimated reduction of eight per cent of our total base building energy use. The changes primarily involved the installation and retrofitting of energy-efficient lighting in car parks and mall areas. We are committed to a minimum NABERS Energy rating of 4.5 stars and a Green Star rating for new office buildings. Energy-efficient plant and equipment is now included in all new buildings and major refurbishments.

Preserving and restoring biodiversity at North Shore

North Queensland's largest masterplanned community, Stockland's North Shore incorporates plans for more than 5,200 homes across more than 1,000 hectares of land. The new community will include schools, a shopping centre, commercial space, community facilities and extensive natural bushland. North Shore is located alongside the Bohle River on land previously used for grazing. The site is an important habitat for the endangered Black Throated Finch. During the planning phase we considered how best to protect the habitat of this species, manage stormwater runoff in a way that enhances the water quality of the receiving ecosystems, regenerate degraded grazing property and enhance the site's natural biodiversity.

We implemented a range of initiatives including:

• Rehabilitation of all eroded areas of the site and preventative works to stop further erosion
• Construction of a $20 million best practice stormwater treatment system which will improve stormwater future runoff quality to a level that will be better than what previously left the site when it was a grazing property
• Committed $50,000 per annum for five years to establish the Black Throated Finch Trust to research and conserve the species

The outcome of these initiatives was the rehabilitation of over 40 hectares of native bushland adjacent to the Bohle River, making it a suitable habitat for native flora and fauna.

Our stakeholders, including residents, community groups, council and prospective buyers have responded positively to the project to date. This is evidenced by the achievement of 265 sales at a time when the land sales market in Townsville has halved.