Stockland Corporation Ltd (ASX: SGP) made an important media release yesterday regarding its energy efficiency strategy. While share price movement to the announcement was minimal, it should definitely add to the company's reputation as one of the ASX market leaders for renewables and energy efficiency.
To date, Stockland has already reduced its carbon intensity by 57 per cent across its Commercial Property portfolio and saved over $106 million through energy efficiency improvements since FY06. This includes investing over $33 million in solar photovoltaics.
What did Stockland announce?
Stockland announced a new initiative it believes will place the company one step closer to achieving its 2030 target for net zero carbon emissions across its logistics centres, retirement living operations and corporate head offices.
Stockland's strategy to achieve this is to draw on finance from a $75 million senior debt facility from the Australian Government's Clean Energy Finance Corporation (CEFC).
The finance provided by the CEFC will support a portfolio-wide energy efficiency renewal program, as well as Green Star design. In addition, the funds will further support as-built standards for retirement living new-builds which will target a 35% reduction in emissions levels, compared with the requirements of the current building code.
Stockland believes that improving the energy efficiency of its assets will, in turn, improve environmental outcomes, provide economic advantages for its business, and provide community support.
Further solar initiatives
Other initiatives announced will see Stockland accelerate the installation of 11 megawatts of solar across its Logistics business, including 770 kilowatts of solar photovoltaics at the Yennora Intermodal Distribution Centre, which boasts 30 hectares of warehousing.
The company will also develop a scheme to trade solar energy among Stockland assets, so excess energy generated at its industrial and logistics premises can support other Stockland Group businesses.
In addition, Stockland will support the adoption of solar and battery installation in residential properties, and accelerate renewable energy and energy efficiency programs within retirement living centres.
Stockland's CEO and Managing Director, Mark Steinert commented: "As a global sustainability leader we are proud to have led the industry in many areas, including being the first Australian company to achieve a place on the CDP's Climate A-List, consistently being recognised as one of the most sustainable companies in the world by the Dow Jones Sustainability Index (DJSI), and issuing Australia's first green bond in 2014."
Foolish takeaway
I think this announcement is an excellent step forward to achieving net zero carbon emissions across Stockland's portfolio of assets.
While the immediate reaction to the Stockland share price has been minimal, I think the announcement will assist the company in achieving future share price growth over the next few years. This comes as investors, especially superannuation funds, are favouring companies that have strong environmentally friendly strategies.
