The first part of the Framework will be used for debt instruments that finance green or sustainable projects, including but not limited to Green Bonds, Sustainability Bonds, Green Loans and Sustainability Loans. Following the Principles, the Framework has below four core elements:

1. Use of Proceeds
2. Process for Project Evaluation and Selection
3. Management of Proceeds
4. Reporting

 

I. Use of Proceeds

 

The net proceeds raised under this Framework will be used exclusively to finance or re-finance the Eligible Green or Sustainable Projects as defined below:

 

Green Buildings

Investment properties: expenses for a portfolio of existing or refurbished buildings, including office and industrial buildings that have achieved 4 Star rating from the latest available GRESB Benchmark Report - Standing Investment.

 

 

Development Assets: expenses for a portfolio of new  commercial and industrial buildings that have achieved 4 Star rating from the latest available GRESB Benchmark Report - Development.

 

 

For the avoidance of doubt, the scope of FPIA’s GRESB Real Estate Assessment covers all the assets either wholly or partially owned by FPIA.

 

 

Eligibility Criteria

The GRESB Real Estate Assessment generates two benchmarks: the GRESB Real Estate Benchmark and the GRESB Development Benchmark. The GRESB Real Estate Benchmark consists of participants completing both the Management and Performance Components and the Development Benchmark consists of participants completing both the Management and Development Components.

• Management Component - Measures the entity’s strategy and leadership management, policies and processes, risk management, and stakeholder engagement approach, comprising information collected at the organisational level.
• Performance Component - Measures the entity’s asset portfolio performance, comprising of information collected at the asset and at the portfolio level, including environmental indicators such as Energy, Greenhouse Gas (“GHG”) and Water as well as social aspects related to Tenants and Community.
• Development Component – measures the entity’s efforts to address ESG issues during the design, construction, and renovation of buildings. This Component is suitable for entities involved in new construction (building design, site selection and/or construction) and/or major renovation projects, with on-going projects or completed projects during the reporting period.

 

 

The GRESB Rating is based on the GRESB Score and its quintile position relative to all participants in the GRESB Real Estate Assessment, with annual calibration of the model. A ranking relative to all participants on a global scale is provided. GRESB 5 Star is the highest rating and recognition for being an industry leader.

 

 

In addition to its focus on environmental impacts, the GRESB Real Estate Assessment also includes a health and well-being evaluation of a real estate company’s internal approach to promoting health for its employees as well as its external approach to promoting health for tenants and communities through real estate fund management. As creators of the built environment, the real estate industry is well-positioned to address key health determinants in their approach to real estate development and management.

 

 

In addition, FPIA may also use the proceeds to finance or re-finance the Eligible Green Projects as defined below: Projects (including land and buildings) which meet or has evidence that it will meet regional, national or internationally recognised standards or certifications such as:

• Green Building Council of Australia’s Green Star - Design & As Built or Buildings: 4 Star or above
• Any other green building labels that is an equivalent standard as the above.
• The Eligible Green or Sustainable Projects shall be selected and evaluated following FPIA’s sustainability goals and ESG policies as stated in Section II. Process for Project Evaluation and Selection.

 

II. Process for Project Evaluation and Selection

 

Project evaluation and selection is a key process ensuring that the financed Green or Sustainable Projects meet the eligibility criteria set out in this Framework. The Treasury team will be responsible for selecting a portfolio of Eligible Green or Sustainable Projects (“Eligible Green or Sustainable Project Portfolio”) to be financed by the net proceeds from the SFTs in accordance with the Framework. It may consult internal or external experts as relevant to assess eligibility criteria, and the final projects selection will be reviewed and approved by FPIA senior management.

 

 

FPIA’s sustainability strategy, A Different Way, has been established in 2015 and targets are reviewed every 2 years to ensure that they deliver value to customers and represent leadership. Once the revised company-wide targets are fully endorsed by FPIA’s Managing Director, they are made public through FPIA’s website with twice yearly progress updates. Targets are resourced appropriately to support their implementation into FPIA’s operations. The relevant Sustainability Manager is responsible for tracking performance against these targets.

 

 

• by 30 September 2024 to maintain minimum 4 Star GRESB status for FPIA;

 

 

In an unlikely event that FPIA does not maintain minimum 4 Star GRESB status during the life of any SFT, FPIA will develop a separate green or sustainable project list to ensure FPIA has sufficient green or sustainable assets matching the total SFT outstanding amount.

 

 

III. Management of Proceeds

 

 

FPIA intends to allocate the net proceeds from the SFTs to an Eligible Green or Sustainable Project, selected in accordance with the use of proceeds criteria and evaluation and selection process presented above. As long as the SFTs are outstanding, the Treasury team will manage the project register through its rigorous internal system, and periodically monitor the balance of the proceeds. FPIA will strive to maintain a level of allocation for the Eligible Green or Sustainable Project Portfolio which matches or exceeds the balance of net proceeds from its outstanding SFTs.

 

 

Any unallocated amount will be held in cash or it will be invested by FPIA’s cash equivalents according to the Treasury department’s general liquidity guidelines.

 

 

IV. Reporting

 

 

FPIA commits to transparent reporting on its sustainability efforts and the allocation of SFTs.

 

 

For Green or Sustainability Bonds, from the first anniversary of any bond issuance under this Framework until full allocation of the proceeds, FPIA will ensure that information on proceed allocation is available on FPIA’s website https://www.fraserspropertyindustrial.com/en-au/planet/sustainability.html. FPIA may also share, where applicable and feasible, information on environmental impacts of its portfolio.

 

 

For Green or Sustainability loans, FPIA will also make readily available to its lenders a report upon request.

 

 

FPIA may share the below information:

a) Allocation Reporting

• The total amount of proceeds allocated to the Eligible Green or Sustainable Project Portfolio
• The balance of unallocated amount, if any

 

 

b) Impact Reporting
Where relevant and feasible, FPIA may provide the following environmental indicators of its portfolios:

• Updated rating of GRESB Benchmark Report for Standing Investment and Development
• Number or percentage of buildings with Green Building Certificates
• Energy Consumption (MWh) for the investment properties
• GHG emission (tonnes) for the investment properties

This second part of the Framework is prepared to provide guidelines for Sustainability-Linked Bonds and/or Loans. For the avoidance of doubt, proceeds from the Sustainability-Linked Bonds and/or Loans are not exclusively for Eligible Green or Sustainable Projects and can be used to finance general corporate purposes.

 

 

This part of the Framework is presented in accordance with the Sustainability Linked Loan Principles (“SLLP”) 2021 and the Sustainability Linked Bond Principles (“SLBP”) 2020 with the following five core components:

1. Selection of Key Performance Indicators (KPIs)
2. Calibration of Sustainability Performance Targets (SPTs)
3. Bond / Loan characteristics
4. Reporting
5. Verification

 

 

I. Selection of Key Performance Indicators (KPIs)

 

 

As shared in the Section 1, FPIA has established A Different Way as a core sustainability strategy since 2015 to ensure they deliver value to customers and represent leadership. This strategy defines a whole new way of thinking and working that helps FPIA to boldly grow its business in ways beneficial towards its people, customers, and the environment. It also helps FPIA deliver better outcomes and achieve its goal of making a real difference in its sustainability agenda.

 

 

FPIA may use below sustainability metrics:

• overall rating by GRESB on its portfolio, to be assessed on the annual basis
• number or percentage in GFA of buildings with pre-defined green building certificates
• energy consumption (MWh) for the investment properties
• GHG emission (tonnes) for the investment properties
• water consumption (m3) for the investment properties

 

 

II. Calibration of Sustainability Performance Targets (SPTs)

 

 

FPIA aims to ensure the selected metrics and targets are set to be meaningful and ambitious, in line with its sustainability leadership. FPIA’s SPTs are available on FPIA’s website https://www.fraserspropertyindustrial.com/en-au/planet/sustainability.html

 

 

FPIA may use the above commitments for its margin or coupon redetermination over the life of the instruments.

 

 

When entering into a new transaction, FPIA and arranging banks may agree the below items at inception:

• a set of sustainability metrics
• the respective base lines
• performance targets to be measured annually
• timeline for measuring and reporting
• commercial terms and potential incentives once the targets are achieved.

 

 

 

III. Bond/ Loan Characteristics

 

 

The net proceeds raised from the bonds / loans will be used exclusively to finance or re-finance FPIA with strong sustainability commitments as described above.

 

 

When entering into a new transaction, FPIA and arranging banks will agree the below items at inception:

• a set of sustainability metrics
• the respective base lines
• performance targets to be measured periodically
• timeline for measuring and reporting
• changes in commercial terms (e.g. coupon or margin adjustment) related to the SPTs.

 

 

IV. Reporting

 

 

At the inception of each transaction, FPIA and arranging banks will agree on reporting time, frequency, and format of reporting on its sustainability progress.

 

 

Information related to FPIA’s sustainability performance against the set targets will be available in the progress report published on FPIA’s website https://www.fraserspropertyindustrial.com/en-au/planet/sustainability.html

 

 

V. Verification

 

 

FPIA endorse and participate in global initiatives such as the Global Real Estate Sustainability Benchmark to align its business with the global sustainability trends, which allow it to proactively identify and implement best business practices.

 

 

Third party external assurance providers will provide a limited assurance report on FPIA’s performance indicators.

 

 

Additionally, GRESB also conducts its own validations to check on the existence, accuracy and logic of data submitted through the Assessment. The validation process includes both automatic and manual validations; for the latter, GRESB engages a third-party service provider to perform independent assessments