Landcom recognises the systemic threat posed by climate change and the need for urgent mitigating action. In 2018 Landcom launched its Sustainable Places Strategy, directly aligned to the Sustainable Development Goals, Paris Agreement and 100 Resilient Cities Strategy for Sydney.
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 is also taking steps to bolster our overall approach to mitigating the risks of climate change to our organisation. In FY20 Landcom adopted the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) and began progressively working towards full alignment. We are aligning with the TCFDs as it is leading practice, and our disclosures are presented with consideration to the interests of our stakeholders. In FY21 and FY22 we continued to mature our disclosures including undertaking scenario analysis, financial risk modelling and identifying opportunities to respond to key risks.
We recognise that there will always be space for continuous improvement and maturity when responding to climate change risks and opportunities.
Recommended Disclosure
Status of Disclosure
Landcom Response / Action
Future Priorities / Actions
Governance
Describe the board’s oversight of climate-related risks and opportunities.
Describe management’s role in assessing and managing climate-related risks and opportunities.
Established
Landcom has a robust and established governance structure for the corporation, Landcom Annual Report: Our Governance Structure. 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 considering climate risks through reports prepared during all project acquisitions, development approval proposals or divestment strategies.
- Our Board and Executive Committee approving Landcom’s Sustainability and Annual reports, including relevant climate-related performance and disclosures.
- Climate Risk Management Plan updates twice annually to the Audit and Risk Committee including a corporation-wide Strategic Risk around environmental sustainability. Monitoring of climate-related risks 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, the CEO, Development Directors and Sustainability staff all having Key Performance Indicators related to climate risk and resilience.
- Our Executive General Manager (EGM) – Communications & Policy providing quarterly Board updates and monthly Executive Committee updates on climate-related issues and progress. The EGM approves our Climate Active Certification Public Disclosure Statement, monitors progress against our sustainability targets and provides executive sponsorship on our annual sustainability strategic milestones.
- Our Director – Sustainability & Learning overseeing assessment and management of climate-related issues including our annual sustainability divisional milestones, GRESB reporting and Annual Sustainability Report assurance, reporting to the EGM – Communications & Policy.
Prepare a new Climate Risk Management Plan to incorporate the findings on transition risks.
Cascade climate and resilience- related Key Performance Indicators to Senior Leaders.
Continue all existing governance protocols.
Strategy
Describe the climate-related risks and opportunities the organisation has identified over the short, medium and long term.
Established
The physical climate-related risks for Landcom are articulated in our Climate & Resilience Performance Results: Climate Change Risk and Community Resilience, while our transition climate-related risks are found in our Case Study: Transition Risk Scenario Analysis. These risks are identified across a combination of the 2030 (short-term), over the next 20 years (medium-term) and 2090 (long-term) time periods.
Overall, opportunities are identified through our Climate and Community Resilience Assessments. Climate-related opportunities identified by Landcom are further articulated in our Climate Resilient Places Management Approach: Urban Heat Island Reduction, Case Study: Heat resilient communities, and Case Study: Creating A Spark.
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.
Describe the impact of climate-related risks and opportunities on the organisation’s businesses, strategy and financial planning.
Initiated
Climate-related risks and opportunities are identified and assessed on both a corporation and project-by-project basis through our climate and community resilience assessment process (see Climate Resilient Places Management Approach: Climate & Resilience and Climate & Resilience Performance Results: Climate Change Risk and Community Resilience). Risks and actions to respond are identified and embedded within project-specific business plans each year as well as longer-term impacts and responses through our Strategic and Operational risk registers.
Landcom is beginning to address the financial implications for climate-related impacts, as highlighted in our Case Study: Transition Risk Scenario Analysis and through our Case Study: Climate Active Journey. Landcom expects to mature our approach to climate-related financial planning in the coming years.
Describe the resilience of the organisation’s strategy, taking into consideration different climate-related scenarios, including a 2oC or lower scenario.
Initiated
Our existing approach to physical climate-related risks and opportunities provides a relatively mature level of resilience for the organisation for higher emissions scenarios (see Climate Resilient Places Management Approach: Climate & Resilience). Landcom has recently begun to investigate our resilience against a climate scenario that aligns to a 2oC or lower ambition (see Case Study: Transition Risk Scenario Analysis) and opportunities to respond (see Case Study: Climate Active Journey).
Risk Management
Describe the organisation’s process for identifying and assessing climate-related risks.
Established
Landcom identified that our existing risk management process was the most appropriate way of identifying and assessing climate-related risks. (Refer: Landcom Annual Report: Risk management). The process specific to identifying and assessing physical climate risks is articulated within our Climate Resilient Places Management Approach : Climate & Resilience, Climate & Resilience Performance Results: Climate Change Risk and Community Resilience and includes preparation of climate and community resilience assessment as well as completion of a Resilience In Design Checklist. The identification and assessment of transition climate-related risks are further described in our Case Study: Transition Risk Scenario Analysis.
Continue to advance understanding and disclosures of climate- related financial impacts to the organisation.
Describe the organisation’s process for managing climate-related risks.
Established
Landcom identified that our existing risk management process was the most appropriate way of managing climate-related risks. (Refer: Landcom Annual Report: Risk management).
The process specific for managing climate risks is articulated in our Climate Resilient Places Management Approach: Climate & Resilience, and is undertaken through our climate and community resilience assessment process. Management performance within our communities is articulated in our Climate & Resilience Performance Results: Climate Change Risk and Community Resilience, Case Study: Heat resilient communities and Case Study: Creating A Spark.
Describe how processes for identifying, assessing, and managing climate- related risks are integrated into the organisation’s overall risk management.
Established
Climate-related risks are identified, assessed and managed through Landcom’s existing risk management process. This includes a Climate Risk Management Plan (three-year time horizon), a climate-specific strategic risk on Landcom’s strategic risk register as well as a bespoke Climate and Sustainability category within the corporate Risk Appetite Statement.
Management of climate-related risks are integrated into project planning and specific responses and actions are articulated in the following sections:
Climate Resilient Places Management Approach: Climate & Resilience,
Climate & Resilience Performance Results: Climate Change Risk and Community Resilience,
Innovation Performance Results: Research Investment,
Innovation Performance Results: Emerging Technologies.
Metrics and Targets
Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process.
Established
Launched in 2018, Landcom’s Sustainable Places Strategy established the metrics supporting disclosure and tracking performance around climate-related risks and opportunities. These metrics were identified and crafted based on international best practice with progress against these metrics presented during routine audit and risk management meetings. For more information on the specific metrics, see:
Climate & Resilience Performance Results,
Energy & Emissions Performance Results,
Environmental Management Performance Results,
Waste & Materials Performance Results,
Innovation Performance Results,
Case Study: Heat resilient communities.
Investigate and adopt appropriate metrics for considering transition risks.
Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.
Initiated
Landcom currently discloses its Scope 1, 2 and 3 organisational emissions through our CY21 Climate Active Product Disclosure Statement. Our journey is reflected in the Case Study: Climate Active Journey.
Current performance and tracking against GHG emission can be found within our Energy & Emissions Performance Results and Environmental Management Performance Results.
Early identification of related risks can be found in our Case Study: Transition Risk Scenario Analysis.
Continue to drive down Scope 1, 2 and 3 organisational emissions.
Explore expanding our organisational emissions boundary to include Scope 3 emissions within our sphere of control.
Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets.
Established
Launched in 2018, Landcom’s Sustainable Places Strategy identifies over 15 targets supporting disclosure and tracking performance around climate-related risks and opportunities. For more information on the specific targets and our performance, see:
Climate & Resilience Performance Results: Climate Change Risk and Community Resilience,
Climate & Resilience Performance Results: Urban Heat Island Reduction,
Climate & Resilience Performance Results: Biodiversity,
Energy & Emissions Performance Results: Greenhouse Gas Emissions Reduction,
Energy & Emissions Performance Results: Onsite Renewable Energy,
Environmental Management Performance Results: Green Star Certification,
Environmental Management Performance Results: NABERS Certification,
Environmental Management Performance Results: BASIX Certification,
Waste & Materials Performance Results: Waste,
Waste & Materials Performance Results: Materials,
Water Performance Results: Potable Water Reduction,
Innovation Performance Results: Research Investment,
Innovation Performance Results: Emerging Technologies.
Review our targets over FY23 to determine adequacy in meeting our leadership goal and opportunities to consider adding additional targets to support our response to climate-related risks.
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.