Investa has taken a significant step to further reduce its carbon footprint, signing a largescale Power Purchasing Agreement (PPA) that enables it to effectively source 100 per cent of the energy requirements of its Sydney owned assets from renewable sources.
In 2016, Investa set a bold industry first science-based target to achieve net zero carbon emissions by 2040.
The new PPA will help Investa achieve an estimated 53% reduction in carbon emission intensity annually once the contract is active.
Investa has also successfully reduced its outgoings by securing cost-certainty.
The duration of the PPA is four years, providing Investa with the opportunity to renegotiate the terms of its agreement in a relatively short timeframe should energy prices fall. “Investa’s PPA commitment represents a win for all parties,” said Sally Franklin, Group Executive, Real Estate Services & Business Operations. “We will dramatically reduce our greenhouse gas emissions by 53% annually, while positively impacting the bottom line.
“We have entered into an agreement that is market competitive and that represents significant savings for Investa. “Signing this PPA is a big milestone in Investa’s journey to achieving net zero carbon emissions by 2040. It puts us ahead of where we need to be to achieve our targets. It is another example of how we are aligning environmental and financial outcomes for investors and tenants.”
An extensive consultation process was undertaken over a period of almost two years before the PPA agreement was signed. Investa received proposals from numerous energy retailers providing different contracting structures.
“Reaching an agreement that would work cohesively across the entire Investa portfolio in Sydney was not clear cut,” said Ian Lieblich, Sustainability Manager.
“Complexities in the National Energy Market, combined with no clear policy direction from the Federal Government, meant it was vital we had a comprehensive strategy in place to mitigate risks, including exposure to peaking spot market energy prices, future energy market movements and our own load variances as our demand requirements change over time.
“Investa’s project team worked extensively with consultants Energetics to assess each proposal that came in. We were delighted to engage one of our tenants, Norton Rose, to provide legal advice,” he continued.
Both organisations were instrumental in the negotiation and execution of a complex agreement with chosen retailer, ERM Power, a subsidiary of Shell Energy Australia. ERM Power Executive General Manager B2B Retail, Steve Rogers congratulated Investa on achieving an important milestone in their decarbonisation journey.
“Our job is to help large businesses navigate the complexities of a cleaner energy future. We’re proud to have delivered a tailored solution for Investa that meets both their commercial and sustainability goals and helps them to set a positive example to others in the sector.
As businesses increasingly commit to decarbonisation, the real challenge is in identifying the options that will best help them achieve their targets. Our portfolio of energy management products and services continues to evolve to meet these changing customer needs,” he said.
The anticipated reduction in Investa’s carbon emissions puts the company ahead when it comes to achieving targets outlined in the Paris Agreement. Targets include keeping a global temperature rise this century well below 2°C above pre-industrial levels, and to pursue efforts to limit the temperature increase even further to 1.5°C.
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