Landcom recognises the systemic threat posed by climate change and the need for urgent mitigating action. Landcom also acknowledges that not only will climate change impact our operations, but that our operations in turn have an impact on the climate.
In 2018 Landcom launched its Sustainable Places Strategy, directly aligned to the Sustainable Development Goals, Paris Agreement and 100 Resilient Cities Program (now Resilient Cities Network). Our Strategy includes a commitment to enabling carbon neutral, water positive, zero waste and net positive ecological outcomes at our new communities by 2028.
While we continue to deliver on these commitments at our assets, Landcom continues to mature our overall approach to mitigating the risks of climate change to our organisation. Landcom first adopted the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) in FY20 and began progressively disclosing each year and working towards full alignment.
In FY24, we continued to mature our approach for climate risk assessment as a 2023 review of our materiality highlighted climate risk as being one of our most material matters. We now have a portfoliobased assessment and tracking platform to better identify standard risks and mitigation approaches. This platform is already supporting progress tracking of adaptation actions throughout the entire lifecycle of a project. As part of this update, our projects now consider transition risks alongside physical risks, most notably implications for insurance and mortgages for our future residents. It is expected that this new process will help Landcom better manage climate risks at both the organisational and project levels. This new process will also support the integration of nature-related risks and mitigation approaches and actions such as nature-based solutions that can support improved climate-resilience, while positively impacting on nature.
Landcom further understand that the new sustainability standards issued by the International Sustainability Standards Board (ISSB) through the International Financial Reporting Standards (IFRS) Foundation have fully incorporated the recommendations of the TCFD. These new standards are being introduced in Australia through the Australian Sustainability Reporting Standards, administered by the Australian Accounting Standards Board as well as through NSW Government Annual Reporting Requirements around climate risk. Our voluntary alignment with the TCFD has placed us well for both of the upcoming sustainability and climate-related disclosure standards as we look to disclose under these new standards from FY25.
We recognise that there will always be space for continuous improvement and maturity when responding to climate change risks and opportunities. We have aligned with the TCFDs as it has been leading practice, and our disclosures are presented below with consideration to the interests of our stakeholders. Our disclosures present relevant information that is to the best of our abilities and knowledge complete, neutral and free from errors. By maintaining this level of transparency, we hope that readers are able to understand the effects of climate change and those risks and opportunities presented to Landcom.
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Describe the board’s oversight of climate-related risks and opportunities.
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EstablishedDescribe management’s role in assessing and managing climate-related risks and opportunities.
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EstablishedLandcom has a robust and established governance structure for the corporation, Landcom Annual Report: Our Governance Structure, p.19. Climate-related risks and opportunities leverage this structure to facilitate a range of considerations and accountability at the highest levels of our corporation, Board of Directors and our management (Executive Committee). This includes:
- Our Board consider climate risks disclosed as part of all project acquisitions alongside other risks and opportunities.
- Board capability includes members well-versed in climate risk and sustainability.
- Our Board and Executive Committee approve Landcom’s Sustainability and Annual reports, including relevant climate-related performance, disclosures and when relevant, updates to our targets and metrics.
- At least twice annual Climate Risk Management Plan updates to the Audit and Risk Committee including a corporation-wide Strategic Risk around environmental sustainability, encompassing climate risk.
- Monitoring of climate-related risks and action on opportunities is undertaken through Landcom’s Strategic and Operational Risk registers, managed between the Executive Committee, Director – Audit and Risk and Director – Sustainability & Learning.
- Executive Committee and Senior Leadership Team all have Key Performance Indicators for climate risk management.
- Our Executive General Manager (EGM) – Communications & Strategy provides quarterly Board updates and monthly Executive Committee updates on climate-related issues and progress. The EGM monitors progress against our sustainability targets and provides executive sponsorship on our annual sustainability strategic milestones.
- Director – Sustainability & Learning oversees assessment and management of climate-related issues including divisional milestones, Climate Active certification, GRESB reporting, project-specific assessments and Annual
- Sustainability Report assurance, reporting to the EGM – Communications & Strategy.
Holistic review of Climate Risk Management Plan during FY25 to respond to new key legislation, regulatory standards and new priorities and/or actions.
Continue all existing governance protocols.
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Describe the climate-related risks and opportunities the organisation has identified over the short, medium and long term.
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EstablishedDescribe the impact of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial planning.
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InitiatedDescribe the resilience of the organisation’s strategy, taking into consideration different climate-related scenarios, including a 2oC or lower scenario.
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EstablishedAs highlighted in Climate Resilient Places Pillar (p.10-27), based on a number of project-specific climate risk assessments undertaken, key climate-related physical risks, over all time horizons, to Landcom include increased incidents of extreme heat and bushfire, while extreme flooding is beginning to become more prevalent across our portfolio. As understood through our transition risk planning, key climate-related transition risks to Landcom include stranded assets, increases in green premiums across construction materials and activities, increases to insurance premiums and affordability concerns related to mortgages for our residents.
Between FY21 and FY22, Landcom undertook a project to model the potential financial implications of selected climate-related risks that were identified as being most likely to influence Landcom’s operations from a business, strategy and/or financial perspective. As part of this project, Landcom reviewed the Intergovernmental Panel on Climate Change’s 6th Assessment Report and selected three scenarios, including a 2oC or lower scenario, to support our climate risk assessments. Furthermore, two of our chosen scenarios align with the latest NSW and Australian Regional Climate Modelling updated projections (NARCliM 2.0), which will further continue to support quantitative assessments of climate risks for Landcom.
As highlighted in the Case Study: Net Zero Transition Plan (p.19), Landcom will prepare a Net Zero Transition Plan over FY25 that will articulate the risks and actions required to support the NSW Government’s Net Zero targets, including changes across the business and our portfolio to achieve these targets. As we have seen, opportunities such as green products like those certified by the Green Building Council of Australia can attract value uplift, while making places healthier and more resilient to live in.
For further reading on our progress, refer back to:
- Case Study: Transition Risk Priority Actions
- Case Study: Working with BASIX
- Case Study: Carbon in Construction
- Case Study: Exploring the benefits and costs of deconstruction
Disclose our leadership goal sustainability roadmap, targets and progress for our project portfolio.
Continue to identify, model and disclose key transition risks for the organisation.
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Disclosure
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Describe the organisation’s process for identifying and assessing climate-related risk.
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EstablishedDescribe the organisation’s process for managing climate-related risks.
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EstablishedDescribe how processes for identifying, assessing, and managing climate-related risks are integrated into the organisation’s overall risk management.
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EstablishedLandcom has a robust risk management framework including an Enterprise Risk Management Framework with which climate risks are assessed against to better integrate into whole-of-business decision-making. An overview of this risk management process can be found in Landcom Annual Report: Risk management (p.62). Climate risks are also considered through a separate category within our Risk Appetite Statement and included in all our relevant risk registers at both the corporate and project levels. Furthermore, Landcom has identified climate risk within one of our five new Strategic Risks (Planet).
Climate risks and opportunities are presented across multiple forums at Landcom including Board decisions on acquisitions, at least twice yearly at Audit and Risk Committee meetings, periodic deep dive Audits, quarterly Board updates and monthly Executive Committee updates. Information presented covers both project specific information as well as the latest trends, insight and implications of global and domestic legislation, policy, guidance and best practice.
Our approach to addressing climate risk at the project level can be found in our Climate Resilient Places Management Approach: Climate & Resilience (p.13). This process is applied to each and every one of our projects from the acquisition phase all the way to handover with the end owner/operator. Our portfolio climate risk tool can support identification and assessment of individual risks, specific to the project, based on local projections, mapping and observations. The assessment further brings future-looking climate projections to support the appropriate assessment of risks and corresponding identification of opportunities (both mitigation and adaptation). Every one of our projects has a target to identify practical and demonstrable measures to respond to key climate risks and Landcom continues to achieve 100% on this target year-on-year.
For further reading on our progress, refer back to:
- Case Study: Transition Risk Priority Actions
- Case Study: Heat Resilient Communities
- Case Study: Climate Active Journey
- Case Study: Working with BASIX
- Case Study: Carbon in Construction
- Case Study: Exploring the benefits and costs of deconstruction
- Case Study: Transition Risk Scenario Analysis
Continue to advance understanding and disclosures of climate-related financial impacts to the organisation.
Understand the integration of nature alongside climate risk for the organisation.
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Disclosure
Landcom
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Future
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1. Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process.
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Established2. Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.
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Initiated3. Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets.
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EstablishedSince the adoption of Landcom’s Sustainable Places Strategy in 2018, metrics and targets have been a central focus, with 15 targets in our Climate Resilient Places Pillar aimed at Climate, Energy & Emissions, Environmental Management, Waste, Materials and Water. In particular, Landcom annually tracks metrics related to these targets. In particular, these targets work to support response to physical climate-related risks in the form of urban heat island reduction targets, solar reflective index standards for roofing and requirements for all projects to demonstrate actions aimed at addressing high and extreme rated physical climate hazard risks. Furthermore, our targets have supported and placed Landcom in a good position at responding to key identified transition climate-related risks, including our targets around GHG reduction, upfront/embodied carbon and renewable energy generation. Furthermore, Landcom has been proudly Carbon Neutral Certified under the Climate Active scheme for the past four years, covering our Scope 1 and 2 emissions, as well as limited Scope 3 emissions. As we move from a carbon neutral approach towards net zero, our transition plan will outline our methodology, measurement approach, baseline and targets for achieving net zero. Read more in our Case Study: Net Zero Transition Plan (p.19).
A full list of our targets and the metrics we use to track performance as well as some of those outcomes can be found in the following sections:
- Climate & Resilience Performance Results, p.15
- Energy & Emissions Performance Results, p.18
- Environmental Management Performance Results, p.20
- Waste & Materials Performance Results, p.22
- Water Performance Results, p.25
- Innovation Performance Results, p.43
- Case Study: Transition Risk Scenario Analysis
- Case Study: Transition Risk Priority Actions
- Case Study: Heat Resilient Communities
- Case Study: Climate Active Journey
- Case Study: Working with BASIX
- Case Study: Carbon in Construction
- Case Study: Exploring the benefits and costs of deconstruction
- Landcom’s CY23 Climate Active Product Disclosure Statement
1. Investigate and adopt appropriate metrics for considering transition risks. Develop a nature strategy to explore the nexus with climate and how targets around nature-based solutions can support climate resilience.
2. Continue to drive down Scope 1, 2 and 3 organisational emissions. Expand our organisational emissions boundary to include Scope 3 emissions within our sphere of control and develop appropriate intensity or absolute metrics.
3. Continue to incorporate transition risks and opportunities into our project-level process of addressing climate-related risks including project business plans, community-specific climate and community resilience assessments and through risk specific information materials.
