Performance review

Natural resources

Introduction

The key elements of our natural resources are waste, water, energy, transport and technology.

We create value in the way we design for, manage and consume our natural resources as this impacts:

  • The amount of resources we consume and waste we generate
  • The cost of ownership and occupation of our buildings to Attacq and our tenants
  • Our ability to operate with constrained water and electricity supply, and
  • Our impact on the environment and our obligations as a responsible corporate citizen.

Performance highlights

  • Responsible corporate citizenship demonstrated by threefold increase in operational photovoltaic (PV) systems to 6 851.4kWp (2017: 2 096.4kWp), reducing our grid reliance
  • Mall of Africa’s 4 755kWp PV system operational, increasing our electricity recovery ratio
  • 63.8% of our buildings in the office and mixed-use sector are green certified, including PwC Tower’s silver LEED which is currently being finalised

Governance oversight

  • Investment committee, transformation, social and ethics committee, combined assurance forum, exco and portfolio committee

Strategic matters


More details

Werner Mulder at Mall of Africa’s PV system Waterfall City

Manufactured Capital


Progress in 2018

  Our 2018 focus     Achieved     More information  
  Finalising implementation of our green building standards     In progress     Green design  
  Roll out of PV systems         Electricity  
  Actively monitoring and managing our water risk and designing for water efficiency across the portfolio         Water  
  Integrated sustainable design in developments and projects     Ongoing     Activities during the year  

2019 Looking ahead

  • Design an intelligent, interconnected and instrumented (smart) city strategy for Waterfall
  • Implement water projects, eg water-filtration plant at Eikestad Mall
  • Continue to develop green buildings in Waterfall
  • Reduce cost of occupancy for all tenants
  • Develop an integrated transport plan for efficient access, parking and mobility in Waterfall City.

Driving natural resources

Our sustainability approach is built around four major drivers:

Economic sustainability     Operational sustainability     Environmental sustainability     Technological sustainability
Our buildings are designed cost efficiently in terms of waste, water and electricity consumption and management    

Buildings must be able to operate through service interruptions using:

  • back-up electricity for realistic scenarios (not just load shedding)
  • waste and water continuity plans
   

Our impact on the environment, including:

  • green strategy
  • carbon footprint
  • light pollution
  • energy efficiency
    Smart through integration and connectivity
Progress     Progress     Progress     Progress
Our South African property portfolio is efficient in terms of water and energy usage. We believe we can improve efficiency by monitoring consumption through implementing smart meters and systems     All our properties can operate for two days during a power or water outage     We are actively monitoring key environmental indicators like carbon footprint and our impact on water resources. All our 100.0% owned newly developed office and mixed-use buildings will be green certified going forward     Future priority

We believe in an integrated and connected solution for our buildings and Waterfall City. With the growing complexity and potential of smart cities, we have added technological sustainability as a fourth driver to our approach.

Waste

The volume of waste we produce is increasing in line with the growth of our South African portfolio and activity in our malls. The percentage of total waste recycled (not diverted to landfill) stabilised in 2018. A web-based dashboard for tracking waste management and recycling has been extended to most of our buildings, giving every property manager direct access to historical and current waste figures and recycling performance of their buildings. Our research shows that our buildings recycle at or above the industry average.

      2018   2017 2016  
Generated (tonnes)     5 854   5 016 3 627  
Recycled (tonnes)     1 730   1 609 1 042  
% recycled     29.6   32.1 28.7  

Grey water definition

Waste water generated in buildings excluding water from ablution facilities.

With the recent drought experienced in South Africa, and specifically in the Western Cape, as well as a growing population in South Africa, there is increased pressure on water infrastructure and availability. We deliberately design our new buildings for water efficiency, including the use of grey water, as water constraints could inevitably lead to higher utility prices.

Activities during the year

During the year, a team focused on sustainability and infrastructure was formed to ensure learnings are shared across our South African operations and functions.

Water

We monitor four elements of water risk:

1
  Supply (operational sustainability)
2
  Pressure (operational sustainability)
3
  Quality (operational sustainability)
4
  Cost (economic sustainability).

During the year, we defined the ability to operate for two days without council water supply as the most important and practical target for measuring water resilience at our buildings. Live water-logging meters were installed at our most critical sites. By monitoring water consumption across our portfolio, installing back-up tanks and on-site pumps, as well as developing operational plans, we achieved our water resilience target. Water consumption reduced in line with our long-term trend (6.0% over two years) in our South African portfolio. The increase in water consumption in 2017 mainly reflects warm weather, which returned to normal levels in 2018.

      2018   2017 2016  
Consumption (mℓ)     721   833 665  
Intensity (ℓ/m2)     4   93 79  

Water quality is annually measured against SANS 241 and World Health Organisation water quality standards at locations where we have directly owned buildings as it is an important factor in maintaining our assets. Knowing the quality of borehole and sump water is important in determining their potential use as grey water as a cost-saving initiative and as a contingent measure.

Electricity

We are committed to sensible renewable energy projects. When correctly designed, these projects reduce operational costs, improve the resilience of our buildings and reduce the carbon footprint of our portfolio.

During the year we obtained approval from Eskom to bring the 4 755kWp Mall of Africa PV system into operation. The plant generated 1 600MWh by 30 June 2018.

      2018
kWp
  2017
kWp
2016
kWp
 
Total size of our operational PV systems     6 852   2 097 91  
      MWh   MWh MWh  
Electricity generated through our PV systems     4 956   2 130 134  

Transport

We constantly model, measure and plan for the increase in traffic to Waterfall as the precinct expands. How we design facilities, encourages the use of public transport, thereby reducing our carbon footprint.

2013
2016
2018
  Peak hour traffic growth into and out of Waterfall City  

The impact of the Waterfall urban design, considered in all our development and infrastructure projects, will become visible as Waterfall City densifies in the next few years. The goal is to minimise internal trips by car in the City, reducing future congestion.

Carbon footprint

The biggest driver of our carbon footprint remains electricity consumption, which will inevitably increase as our property portfolio grows. However, our carbon footprint per square metre of property in each sector is decreasing year on year, reflecting the contribution of our PV systems. In addition, we recorded a further reduction in electricity consumption with a corresponding reduction in carbon footprint (relative to the growth of our portfolio) in the past year due to the milder summer that resulted in a slight reduction in energy consumed by air-conditioners to cool buildings in our portfolio.

Carbon footprint classification (tonnes CO2e)*

Carbon footprint classification (tonnes CO2e)*

* We calculate our carbon footprint using the equity share approach.

Carbon footprint classification (tonnes CO2e)*

Carbon footprint classification (tonnes CO2e)*

* We calculate our carbon footprint using the equity share approach.


Case study: Journey to work – Waterfall

We conducted a “Journey to Work” survey among 8 500 employees working in Waterfall to establish whether this is a central location in Gauteng. Based on 739 responses, we concluded that the macrolocation is good, and that Waterfall attracts employees from across the greater Gauteng area.

The map below shows the morning drive time to work:

Journey to work – Waterfall

While surveying whether Waterfall is a central location, a Working Environment Satisfaction Index was developed. The top five strengths of Waterfall from the survey are:

  • The appearance of gardens and green areas
  • Perception of Waterfall
  • Working environment
  • General maintenance
  • Security

Green design

We are a registered member of the Green Building Council of South Africa (GBCSA) and the United States-based Green Building Council. In future, all our developed commercial buildings will be green certified. We use green rated and certified designs as measures to ensure we build efficient buildings. Green design mitigates the risks and impact of potential carbon taxes, stricter regulations and rising utility costs. Tenants may request a building design to specific GBCSA or Leadership in Energy and Environmental Design (LEED) standards.

The increase in certified green buildings relates to our three new office and mixed-use buildings, namely PwC Tower (certification in progress), Corporate Campus building 1 and Gateway West. Based on PGLA, 63.8% of our office and mixed-use portfolio is green certified and includes PwC Tower’s silver LEED certification which is currently being finalised.

Certified Green buildings (%)

Certified Green buildings (%)

Case study: PwC Tower

 

AWARDS

  • Top honours in the commercial office development category at the South African Property Owners Association (SAPOA) awards for innovative excellence, 2018
 

CLIMATE CONTROL (ELECTRICITY)

  • “Cool” roofing: reduces heat island, lowers heat gain
  • Thermal controls in multi-occupant spaces: air speed, air temperature, radiant temperature and humidity
  • Automated louvre system adjusts for each window during the day to keep the office cool
 

THE STRUCTURE

Designed by LYT Architecture, an engineering and consulting company

  • Landmark: sited on the highest elevation point in the Waterfall precinct, the tower is visible from almost anywhere in a 30km radius from Waterfall City
  • At 26 storeys, it is the tallest structure along the Pretoria-Sandton corridor
  • Iconic twisted contours exemplify technical excellence and several firsts for South Africa
  • Five basements
 

VALUATION

R1.8 billion

at 30 June 2018, our share of valuation: R1.4 billion

WASTE

  • Dedicated area for collecting and storing office recyclables: paper, corrugated cardboard, glass, plastic and metals
 
    48 615m2 of office space

  • Space for 3 500 employees
  • Natural daylight for at least 75% of occupants in regularly occupied spaces
  • Scenic views for at least 90% of occupants in regularly occupied spaces

SILVER LEED GREEN CERTIFICATION

(awaiting final certification)

 

TRANSPORT

  • The location encourages the use of public transport to reduce single-passenger vehicle traffic, including buses, mini-bus taxis, Gautrain and associated bus services

OPERATIONS

  • Eight lifts complete 12 000 to 14 000 trips daily
  • The lift-call system can be integrated with the security system and learns trends for individuals, eg when you present your security card or fingerprint, the system already knows that you normally go to the 23rd floor, so it calls the right lift for you
 

WATER

  • 60 000ℓ backup water tank
  • Water efficiency includes electronic taps, low-flow showers and dual-flush toilets
  • Focus on water-efficient landscaping by planting indigenous, hardy species
 

THE IMPACT

  • PwC’s occupation had a significant impact on foot traffic in the Mall of Africa: in the area where most PwC employees enter, footcount rose 4.0% in January, 8.0% in February and 11.0% in March
 

LIGHTING (ELECTRICITY)

 
 
  • A powerful and flexible digital lighting system manages all lighting in the building to minimise energy requirements and reduce cost
  • High-performance glazing on the façade and motorised blinds maximise daylight control and glare