GDI boss’ climate change call

GDI Property Group chief Steve Gillard has called on big industries to do more to mitigate the impacts of climate change.

Speaking at the Property Council of Australia’s annual outlook lunch, the ASX-listed developer’s managing director said the country was well positioned to harness renewable energy, but more could be done.

Mr Gillard criticised the nature of carbon offset schemes, saying industries should focus on real world initiatives to drive carbon emissions down.

“The reality is it’s all a load of rubbish,” he said.

“I can buy carbon credits to plant trees in Rwanda, to make a building efficient, rather than actually doing the hard work … to make a highly efficient building.

“We’re not going to get to net zero, but we’re going to do our best to do it, and people should be taken to task with that,” he said.

“Let’s do it right.”

He said developers had a duty of care to build thing efficiently, with features including solar panels and reduced embodied carbon, as opposed to greenwashing. 

Mr Gillard said Australia's environment provided ample opportunity for it to cut reliance on coal and instal more solar panels.

“We’ve got to get our act together,” he said.

GDI is part way through building the Perth’s first hybrid timber-steel office tower, dubbed Westralia Square 2, on top of the car park next to its existing Westralia building.

Mr Gillard said development, which will bring on about 9,000 square metres of office space, was 50 per cent leased ahead of its expected completion in coming months.

“Eight months ago, tenants weren’t worried about it [sustainability], but now they’re all over it like a rash, and we’ve leased half the building,” he said.

“People are really focusing on carbon emissions.”

He said the major emitters including Shell and BHP were drawn to buildings with lower carbon footprints, to align with their sustainability credentials.

Australian Development Capital director Adam Zorzi said a lot of companies were making half-hearted efforts to mitigate climate risk, which investors would call into question.

“There are a lot of token efforts being done,” he said.

“I think the next thing we will be seeing is who’s real about it, who’s just doing token things.”

DevelopmentWA acting chief operations officer Andrew Williams said the tide had already shifted in industrial assets, where owners were focusing on the sustainability of their buildings.

“I think in industrial it’s already happened,” he said.

“Most people are coming to us now [with a] whole of life view.”

The Property Council today released a report into the complexities around housing supply and migration, citing the need for supply to catch up with demand created through migration.

Property Council of Australia WA Division executive director Sandra Brewer said the sector was positioned for a strong year.

“The buoyancy in business conditions is flowing through to property markets,” she said.

“Residential housing remains a frustrating sector with strong demand not being met due to feasibilities not stacking up – a consequence of a spike in construction costs, interest rates and a lack of labour mobility.

“Once these issues ease, residential developers believe all the fundamental factors will drive healthy sales in the foreseeable future.

“Perth is simply one of the best-placed cities in the world to capitalise on growing demand for the minerals needed to transition energy sources.”