Greening Existing Buildings Top Tips for Consultants, Designers and Advisers. Eloise Aschberger Sustainable Investment Manager

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1 Greening Existing Buildings Top Tips for Consultants, Designers and Advisers Eloise Aschberger Sustainable Investment Manager

2 Agenda About Lend Lease Investment Management Top three drivers for Real Estate Investment Trusts (REITS) to start greening existing office stock Top three tips to consultants, designers, advisers on how to convince REITS to start greening existing office stock

3 3 Key Business Units Greg Clarke, Managing Director Lend Lease Corporation Top 50 Company A$5.6bn 9,000 Full Time Employees globally 3 key business units Ross Taylor, Global CEO Retail & Communities Bob Johnston, Global CEO Construction & PFI Steve McCann, Global CEO Investment Management All data as at 30 June retail centres and A$5.4bn in retail assets globally 30 year track record Established communities business in UK, US and Australia Presence in over 30 countries across Asia Pacific, UK, Middle East and US A$1.7bn in revenue in Asia Pacific region alone in 12 months to 30 June unlisted funds globally across the risk spectrum Over $12bn in assets under management Ability to leverage off Lend Lease s product creation capability

4 Lend Lease Investment Management Australian Wholesale Funds 1. Australian Prime Property Fund Value $3.5billion of Retail, Commercial and Industrial assets across Australia. 2. Lend Lease Communities Fund 1 Value approx A$200m Invests in three master planned communities by Delfin Lend Lease 3. Real Estate Partners 1 and 2 non sector specific high return/high risk value add fund. 4. Lend Lease Core Plus fund Value approx $200m diverse investments include commercial, retail, retirement villages.

5 Top Three Drivers Driver Number One Institutional Investors are starting to ask questions about Funds and Companies approach and performance to Sustainability, Occupational Health and Safety and Environment. And it is not just traditional SRI or Ethical Investors..

6 What is SRI SRI Socially Responsible Investment or Ethical Investment or Sustainable Investment is about making money considering Environmental, Social and Governance (ESG) factors in addition to financial factors. It is a belief that corporations and trusts can prosper by: Adopting progressive corporate governance (transparency, sustainability reporting etc) Talent attraction and retention Maintaining good community relations and reputation Managing environmental impacts Becoming more accountable to society Taking a long-term approach

7 What is SRI (continued)

8 United Nations Principles for Responsible Investment 1. We will incorporate ESG issues into investment analysis and decision making processes 2. We will be active owners and incorporate ESG issues into our ownership policies and practices 3. We will seek appropriate disclosure on ESG issues by the entities in which we invest 4. We will promote acceptance and implementation of the Principles within the investment industry 5. We will work together to enhance our effectiveness in implementing the Principles 6. We will each report on our activities and progress towards implementing the Principles Australia / NZ / Asia Pacific Signatories Catholic Superannuation Fund Christian Super Vic Super Australian Council of Super Investors New Zealand Superannuation Fund ARIA HESTA CARE

9 Top Three Drivers Driver Number 2. Environmental benchmarking in Australia Not just Green Star and NABERS, but the new BCA energy efficiency guidelines will start affecting all asset classes, but particularly older Commercial assets.

10 Top Three Drivers Driver Number 3. Tenant Demand Not just government tenant accommodation requirements, but corporate clients needing greener spaces and improved performance for their reputation.

11 Top Three Tips Tip No. 1 Help define the Sustainability Scope Just because you are not originally asked for it does not mean that it is not wanted or needed.

12 Top Three Tips Tip No. 2 Learn the language of RISK Practise not only advising why you SHOULD act but also what will happen if you DONT act.

13 Top Three Tips Tip No. 3 Extend your contracts Verify and validate your designs in construction and post occupancy.

14 Conclusion Top 3 Drivers Investor Engagement Environmental Benchmarking Extend your contract

15 Conclusion Top 3 Tips Help define the sustainability Scope Learn the language of RISK Tenant Demand