Sustainability & Climate Change
Dynamic regulatory, investor and stakeholder expectations are shifting the financial risk/return assessment of climate change related issues in commercial real estate debt and direct investment. The time horizons over which economic transition risks become material financial issues are being pulled into the short term.
MaxCap values the natural environment and its inhabitants and acknowledges the threats posed by climate change and extreme weather events to our staff and the communities in which we operate (both now and with our minds on the future). As such, we are committed to better management of finite resources in our business operations and investment activities.
We are pursuing a sustainability strategy that will allow us to operate in an efficient and resilient manner and monitor our impact on the environment over time. Our strategy is designed to encourage our staff through education and awareness, to propose new initiatives and to consider innovative ways to lower our emissions, reduce waste, originate ‘green’ investments and influence key industry players.
Climate Change and the Transition to a Net Zero Carbon Future
MaxCap’s commitment to climate risk governance is reflected in our strategic goal to embed ESG into the MaxCap organisational ‘DNA’. As a signatory to the United Nations Principle for Responsible Investment (UN PRI), and member of the Responsible Investment Association of Australasia (RIAA) and the Investor Group on Climate Change (IGCC), we understand that the standards expected from us by our investors, stakeholders and broader community far exceed those prescribed under regulatory requirements and continue to ratchet upwards.
In addition to formalising our governance, oversight and management structures in relation to ESG oversight, we have integrated climate risk assessments into our standard due diligence questionnaires that are considered in credit analysis and capital allocation decisions on new investments.
Our current climate governance plan includes initiatives such as increasing the granularity of our ESG due diligence, a review of our approach to investor reporting on ESG risk management and advancing our climate risk framework.
We are pleased to announce that MaxCap Group has been certified carbon neutral as an operating business by Climate Active for the period 2020-2021.
Sustainability is a core focus in our business and we are proud to have embarked on our own corporate journey towards a low carbon future by ensuring that our operating business is carbon neutral.
We are committed to maintaining our carbon neutrality and helping reduce greenhouse gas emissions through 2021 and beyond. The next phase in our journey will be to assess and establish carbon benchmarks and targets across our investment portfolio with more details to come in the new year.
MaxCap Group’s profile on Climate Active can be found here.