We are committed to improving the sustainability of our own practices, while maximising value for all stakeholders.
HPI Environment, Sustainability & Governance (ESG)
HPI is committed to improving the sustainability of its practices. While our own environmental and social footprint is small, as the owner of a portfolio of buildings with a significant total footprint, we have a duty to maximise positive contributions and minimise the negative impacts of our business. While we have always sought to reduce our negative impacts, we are committed to a broader sustainability program of action, continuous improvement and transparent reporting.
HPI is furthering its commitment to sustainable practice in a strategic and disciplined way. We have defined relevant megatrends at a global, national and industry level, as well as key industry investment trends and risk exposures with the potential to impact HPI’s business. This will enable us to understand the potential impact of issues such as climate change and the transition to low-carbon economy, green buildings, urbanisation, labour rights and potential future pandemics.
A key part of sustainable practice is transparent reporting, and we have identified reporting frameworks such as the Global Reporting Initiative Standards and Sustainability Accounting Standards Board, as of most use to our investors and other audiences. We have commenced identifying the topics that are most important to our stakeholders and most material to HPI’s ability to create long-term value, some of which cover health and safety, employee retention, tenants and community relationships, and the impacts of climate change, including the cost of insurance.
One of the key features of our business model that contributes to our resilience and longevity is the long-term nature of our tenancies, many of which were negotiated decades ago. We own buildings that our tenants manage and operate, and our ability to effect change is primarily focused on future decisions regarding our assets; we have a high-degree of control over our own work practices; within existing tenancies, our control is more limited.
We will seek to measure and establish baseline metrics for our most material topics, seek continuous improvement in our sustainability performance, set targets and report transparently on our progress towards achieving them. As we move forward, we will become a more sustainable and resilient company, and we intend to find ways to mitigate a wider range of risks and impacts across the communities in which our assets are located.
By better understanding sustainability factors and the issues that are truly important to our business, our tenants and our stakeholders, we can propose and implement measures that are mutually beneficial and create value for everyone.