Mirvac’s urban strategy delivered excellent results in FY17, with operating earnings up 11 per cent and distributions up 5 per cent, at the top end of guidance provided.
The 2017 financial year was an outstanding year for Mirvac, and our ambition to reimagine urban life by creating, owning and managing high-quality assets in Australia’s largest cities has delivered strong results across the Group, positioning us well for the future.
Mirvac is an integrated, urban property group and a key contributor to Australia’s major cities.
Mirvac’s urban strategy and a strong focus on capital management delivered growth in FY17, and has ensured the Group is well placed for the year ahead.
In February this year, we launched Marrick & Co in Sydney’s inner west: a 220-apartment development on the old Marrickville Hospital site.
Mirvac has a priority focus on the health and safety of its employees, contractors and customers, and in FY17, we launched a refreshed policy and focus to strengthen our safety practices, behaviours and culture across our business, while supporting the wellbeing of our people, places and the communities in which we operate.
Developing a Reconciliation Action Plan (RAP) has been one of Mirvac’s key cultural goals over the past 12 months.
This Changes Everything is Mirvac’s sustainability strategy, comprised of four focus areas with long-term missions.
This Changes Everything FY17 at a glance
This Changes Everything is delivering what we intended – it is both bold and broad.
Our strategy has been widely recognised as sector leading and we are proud that we’ve set big goals. With a purpose to reimagine urban life, we are a progressive and innovative company. We make it our business to set our sights high and to pursue what we believe can and ought to make a difference.
Being bold is true to our culture and it has helped us to deliver demonstrable value beyond expectations to our employees, customers, partners, communities, and securityholders. We envisage that our sustainability strategy will continue to evolve with this boldness at its heart.
By selecting 19 important issues, we have learned about a wide variety of topics and integrated those learnings within our business. This has provided us with opportunities to explore territories which had been unfamiliar, and anticipate both business risks and the needs of our stakeholders.
These experiences have empowered us to now better identify which issues really are the most significant so that we can apply our efforts strategically. We are likely to evolve This Changes Everything by refining our focus areas so that we can look more deeply at key issues.
We’ll decide on this refinement by consulting internally to align our focus with what we collectively identify as our most important risks, and we’ll validate those choices by consulting widely and transparently across all our stakeholder groups.
At Mirvac, we don’t just talk about sustainability. Our leaders take a visible role in demonstrating our commitment. We hear from them why it’s important to them in managing business risk, we see them participating in our activities, and we welcome them holding us to a high standard. Sustainability is a contributor to the high levels of employee engagement at Mirvac and we will continue to see this leadership as we take our next steps.
We have been disciplined in integrating explicit measures of our efforts across these areas into a scorecard linked to performance incentives. We have also monitored its progress through an internal governance process, the Health, Safety, Environment and Sustainability Committee, comprised of leaders in our business and chaired by a member of the Executive Leadership Team.
This commitment to measuring and monitoring our performance has helped us to integrate sustainability deeply within our strategy, operations, and culture. It really is who we are and how we conduct ourselves. We see the value of these formal processes and are committed to retaining them into the strategy’s next stages. We will continue to refine them to ensure they are our most significant risks and opportunities.
200 George Street, Sydney, NSW
Short term targets are a key part of This Changes Everything, enabling us to gain breadth of experience that stands us in good stead to reach our longer term goals. As the Mirvac Energy case study (more here) illustrates, the lessons learned are not just technical but often commercial, logistical and social, reflecting the complex nature of the challenges we are tackling. This has reinforced the need to develop solutions and identify and engage with key stakeholders, particularly in the community, early in a project.
Our objective to be net positive by 2030 is ambitious and our efforts over the past four years have been valuable in identifying what works and what doesn’t work for our portfolio. We found that black water treatment is an expensive and energy intensive exercise for high rise properties and is more appropriate for mixed use developments with diversity in water sources and usages. As a result, the black water treatment system at 8 Chifley Square has been deactivated and we have instead focused on rain water capture and potential for condensate capture at the site. This allows us to achieve greater utilisation of the existing infrastructure and provide a reliable source of non-potable water during the summer months.
The first step in creating a smart portfolio by 2020 was to deliver a smart building by 2018. The delivery of two smart buildings ahead of schedule has enabled us to better understand the inherent challenges in collating data across multiple systems and different and often proprietary communication protocols. It has also helped facilitate ongoing conversations around what data is meaningful to our business and stakeholders and will help us on our journey to net positive, while ensuring we continue to deliver buildings and communities that are healthy, vibrant and well connected.
We have seen this in our Living Lab at 200 George Street, Sydney, where we are gathering information on actual indoor environment quality that can be overlaid on energy, water and occupant data to optimise the tenant experience and building performance.
With 29 smart building systems and smart metering throughout 90% of our office and retail portfolios, we continue to learn about simplifying data collection, collation and use to unlock the potential and take us one step closer to realising our ambitions.