Although our business has a low environmental impact, we aim to continually reduce this further during our daily operations. A key focus is on reducing consumption of natural resources where possible. The group's policy outlines the key focus areas of conducting business in a responsible manner – economically, socially and in a manner that is least impactful on the natural environment.
Management regularly monitors the execution, reporting and review of our environmental policy, culminating in an annual review by the social and ethics committee.
Hyprop's environmental strategy is derived from the policy and practically addresses the key environmental impacts of its operations, namely water, energy and waste. Our approach is informed by best practice, proven methods, ease of implementation, and the benefit-to-cost ratio of retrofitting green-design principles to existing buildings.
Hyprop has advanced to voluntary participation in global environmental benchmarking programmes, stretching to meet challenging targets, namely:
- CDP, which is the global standard for environmental carbon reporting and is the only international system for measuring, disclosing, managing and sharing vital environmental information necessary for building sustainable economies. Our CDP submission is audited by KPMG's climate change and sustainability services division (fifth submission). In FY18 we achieved an A-score (based on the new scoring chart that emphasises actions to mitigate climate change rather than just reporting on carbon footprint). This is considered above average.
- The GRESB is an industry-driven index that assesses the sustainability performance of global real estate portfolios (public, private and direct). It is used by institutional investors to improve the sustainability performance of their own portfolios and of the global property sector (fifth submission).
- Hyprop improved its peer compatibility on GRESB to 102nd from 121st in 2017.
- The MSCI Investment Property Database tracks and publishes related electrical and water consumption analytics (fourth submission).
Hyprop incurred no fines for non-compliance with environmental laws and regulations during the year.
Hyprop has identified that while lower operating costs represent an overall fiscal aim of the group for responsible economic sustainability, there is a risk of higher utility costs.
Hyprop environmental scorecard FY18 (baseline June 2013)
|Energy (kWh)||263 609 696||238 700 218||233 926 214|
|Water consumption (kl)||1 017 813||756 615||749 048|
|Waste recycling (volume) (%)||75||83||80|
|Scope 2 carbon emissions (tCO2e)||27 383||25 160||24 657|
FY18 milestone projects
We have completed our project focusing on energy-efficient lighting to reduce electricity consumption and maintenance costs.
The third phase of our solar photovoltaic (PV) plant on Clearwater Mall's parking roof was installed in September 2017. Total solar generation now makes up some 17% of the mall's total consumption, generating on average 4 755 841kWh of electricity per annum (equal to the consumption of 430 average households). The panels cover an area of around 17 000m2, saving 2 521 tonnes of coal and reducing carbon emissions by over 4 518 tonnes per annum. In addition the roof was painted with high reflectant paint in line with green building principles.
Two boreholes were drilled, and associated tanks and pump equipment were installed at both Canal Walk and Somerset Mall to mitigate the effects of the drought as well as to comply with insurance recommendations. Water treatment equipment is to be installed in the new year to treat grey and borehole water back to potable standards.
At CapeGate a larger backup water tank has been installed to comply with insurance recommendations. Water treatment equipment will be installed to bring the borehole water back to potable standards.
Of Hyprop's total operational spend in a year, a large portion is on electricity (mostly consumed by tenants), making energy efficiency a financial imperative. We are implementing a range of energy-efficient solutions to better manage costs for the group and our tenants, improve our environmental performance and reach our targets.
Total electrical consumption
|Direct non-renewable energy consumption (GJ)(1) from diesel burnt||7 943||8 656||8 145|
|Direct renewable energy consumption (GJ) from solar PV||13 801||8 444||7 886|
|Direct energy consumption (GJ) from electricity consumed but not recovered||99 859||106 312||114 452|
|Indirect energy sold (GJ), i.e. electricity recovered from tenants||760 191||857 872||905 992|
|Electricity consumption (megawatt hours or MWh)||238 700||267 828||283 456|
|Energy consumption (GJ) – calculated||859 321||964 184||1 020 440|
To monitor the effectiveness of these initiatives and year on year consumption patterns, we calculate our energy use intensity.
|Energy use intensity (GJ/m2)||1,22||1,27||(4,0)||1,30|
|Kilowatt hours per occupied space (kWh/m2)|
Determining our carbon footprint
For an accurate baseline, we determined the group's scope 1 and 2 carbon footprint using the UK Department for Environment, Food and Rural Affairs (DEFRA) voluntary reporting guidelines and the revised reporting standard of the Greenhouse Gas Protocol, the accepted international tool for government and business leaders to understand, quantify and manage greenhouse gas (GHG) emissions.
Hyprop again participated in the CDP, submitting our audited carbon footprint for the year to June 2018. We maintained an A-score (based on the new scoring chart that emphasises actions to mitigate climate change rather than just reporting on carbon footprint). This is considered above average given that two of our peers dropped to a B+ rating.
Hyprop's carbon emissions
|Total carbon emissions (tonnes of carbon dioxide equivalents (tCO2e) – calculated||June
|Total carbon emissions broken down as:||261 323||280 990||289 939|
|Scope 1(1)||15 302||17 912||7 096|
|Scope 2(2)||25 160||27 942||30 457|
|Scope 3(3)||220 861||235 136||252 386|
|Average volume of carbon emissions (scope 1 and 2) per hour worked (tCO2e/h)||0,065||0,076||0,085|
|(1)||Scope 1: all direct GHG emissions|
|(2)||Scope 2: indirect GHG emissions from consuming purchased electricity, heat or steam (scope 3 covers other indirect emissions, which for Hyprop are calculated as kWh purchased from the supply authority and resold to tenants)|
|(3)||Scope 3: includes tenant-driven increase in scope 3 emissions|
Based on current advice from our auditors, Hyprop will not be liable for any direct carbon tax under the anticipated law. However, this proposed tax has been placed on hold.
We continue to investigate viable opportunities to reduce water consumption especially in drought-affected areas such as the Western Cape, for instance by installing water-efficient equipment, while improving our measurement and monitoring standards.
We rely on close cooperation from tenants and customers to reduce water consumption, while engaging with high water usage tenants in the Western Cape region on a weekly basis to ensure compliance with local authority water saving targets. For new developments, renovations and upgrades, water efficiency is one of the criteria in choosing technical equipment such as toilets, taps and dry condenser systems.
Hyprop monitors bulk water consumption daily at centres to identify unusual patterns that might indicate leaks.
|Total consumption (kilolitres (kℓ))||756 615||1 028 094||(26)||1 037 011|
|Average volume consumed per hour worked (ℓ/h)||1 828||2 236||(18)||2 349|
|Target for consumption, or reduction, against specific denominator (ℓ/h)||2 327||2 350||(1)||2 398|
|Water use intensity|
|Retail: kℓ per occupied space (m2)||1,06||1,36||(22)||1,35|
|Office: kℓ per occupied space (m2)||0,57||1,01||(44)||0,97|
|Total: kℓ per occupied space (m2)||1,05||1,36||(23)||1,31|
|Smart metering||Improve consumption measuring and monitoring; identify leaks from unusual flow patterns||Anomalies immediately flagged, limiting risk and consequential loss||Bulk check meters installed at all sites except Rosebank Mall which is scheduled for 2019 financial year|
|Council errors able to be challenged|
|Fire system water consumption||Identify leaks and illegal use of water||Save water and avoid abuse of infrastructure||South African and Nigerian buildings monitored|
|Waterless urinals||Save water||Waterless urinals installed in all toilets at Clearwater Mall, head office and the new food court at The Glen||Waterless urinals to be installed at proposed toilet upgrades at Woodlands Boulevard and Canal Walk|
|Low volume aerators||Reduce water usage at wash hand basins||Aerators fitted at The Glen toilets and Atterbury Value Mart||Aerators to be fitted at another three sites|
Our approach to waste management aims to maximise recycling, minimise disposal to landfill and comply with legislation. On-site waste management system information is regularly reiterated to tenants, and Canal Walk and Clearwater Mall have public recycling stations. All centres have suitable waste-segregation facilities.
For development projects, we adhere to applicable regulations and consider best practice to optimise the environmental quality of our construction sites. Waste generated by construction is disposed of in line with responsible management plans.
In 2018, Hyprop recycled 83% (by volume) of total waste, up from 79% in 2017. While higher in percentage terms, lower group volumes reflect greater individual recycling efforts from our tenants. The target of 75% has been exceeded. According to our waste service provider, current market conditions dictate that a higher recycling target would involve an increasing marginal cost and would therefore be less economically viable.
|Total non-hazardous waste disposed (t)||2 725||3 963||5 646|
|Total hazardous waste disposed (t)||32||51||43|
|Total waste sent for recycling (t)||3 683||2 851||2 998|
|Waste sent for recycling (% t)||57||40,6||34,5|
|Number of loads ordered||5 133||7 689||7 293|
|Quantity of units collected (t)||68 503||64 769||68 166|
|Recycled (volume) (%)||83||79||78|
|Recycled (m3)||57 537||55 692||64 861|
We have formally assessed the risks and opportunities presented by climate change as part of our annual submission to CDP and our group risk management process.
Key direct risks include:
- Change in temperature extremes – higher temperatures mean air-conditioning equipment will not cope in peak summer
- Sea-level rise – danger of flooding at coastal centres, notably Canal Walk
- Change in rainfall precipitation patterns – extreme rainfall can cause leaks and damage to tenant and Hyprop property
- Drought – successive droughts can lead to additional unbudgeted capital expenditure having to be spent as was the case in the Cape Region.
Canal Walk is in a biodiversity-rich area. Canal Walk is part of the greater Century City precinct, in a national wetland conservation area, Intaka Island. Intaka is an award-winning 16-hectare conservation area, rich in birdlife and indigenous plants. The precinct has an environmental management plan to which Canal Walk adheres: no sewerage, fertilisers, herbicides or chemicals are discharged into canals that run through the precinct; only biodegradable cleaning products are used for parking decks, walkways and walls to minimise water pollution. In addition, Hyprop contributes financially to the environmental management plan.