Lendlease accelerates push to absolute zero
Transforming the way we live through investment in market-leading sustainability measures
The CEFC and Lendlease are targeting a new standard of sustainability in large-scale commercial precincts through the Australian Prime Property Fund Commercial.
$100m
CEFC equity
$6b
assets influenced
2040
Absolute zero target
The continued CEFC investment in APPF Commercial demonstrates to the broader market how best practice sustainability initiatives can create positive long-term sustainability outcomes in the property sector.Michael Di RussoHead of Property, CEFC
Our investment
As an equity investor in the Lendlease Australian Prime Property Fund (APPF) Commercial, the CEFC can directly influence ~$6 billion of predominantly premium and A-Grade assets across New South Wales and Victoria, including landmarks such as the Barangaroo Precinct in Sydney and Melbourne Quarter Precinct.
The CEFC committed up to $100 million in equity in 2018 to APPF Commercial to support an accelerated drive towards a net zero carbon property portfolio target by 2025. By 2025, Lendlease had extended its ambition for both APPF Commercial and its broader operations to an absolute zero target by 2040.
Recognition for results
The ambitious absolute zero carbon target builds on market-leading sustainability achievements for APPF Commercial, which include:
· Being the first Australian fund to be awarded a 6-star Green Star portfolio performance rating in 2017
· Achieving carbon-neutral certification four years ahead of target, in 2021.
International sustainability benchmark organisation GRESB reported in its 2024 Real Estate Assessment that APPF Commercial ranked fourth in the Australia Non-listed High Rise Office peer group, maintaining its 5-star ranking and achieving an overall score of 93 out of 100. GRESB has ranked APPF Commercial and the funds of its underlying assets first in the Australian office sector for 10 of the previous 12 years.
Individual APPF Commercial assets have also been recognised for their achievements including:
· Salesforce Tower in Sydney, which was recognised for innovative design and positive impact on the city skyline, winning the Colliers Award for Best Office Development at the Property Council of Australia Innovation and Excellence Awards in September 2024. The asset was awarded a 6 Star Green Star – Design & As-Built Green Building Council of Australia rating in March 2025.
· Barangaroo, which was announced as the first urban precinct in Australia to be awarded carbon-neutral status in 2019. In 2024, Barangaroo announced it had successfully maintained that status for five consecutive years, employing initiatives that include a green product purchase agreement with CleanPeak Energy, rooftop solar, a fly larvae farm which processes more than 10 tonnes of food waste per month and 26 electric vehicle charging stations.
our impact
Helping lift property decarbonisation ambitions
By working with property sector leaders, the CEFC seeks to maximise the impact of its investments, influence the emissions profiles of significant asset portfolios, and, through its active engagement, help lift the property industry's decarbonisation ambitions.
When the CEFC made its equity commitment in 2018, the Lendlease vision for APPF Commercial was to be recognised as a world leader in responsible property investment and in the delivery of environmental, social and governance outcomes. The early focus of the CEFC investment demonstrated how, through the development of the Melbourne Quarter, sustainability and design initiatives integrated across an entire precinct could transform how we work and live. Melbourne Quarter achieved a market-leading 6-star NABERS Energy rating for the base building.
Market-leading sustainability ambition
The APPF Commercial absolute zero carbon by 2040 target applies to Scope 1,2 and 3 emissions. Scope 3 emissions typically relate to a company’s value chain and are not directly owned or controlled by a company, making them challenging to abate. Lendlease has published a Scope 3 emissions protocol that applies to APPF Commercial, to promote industry conversation about Scope 3 emissions.
APPF Commercial, in line with tenant sentiment, is also developing an electrification pathway for its assets. This has involved feasibility assessments for each asset ahead of detailed costings. It also targets a portfolio-level NABERS rating of 5.5 stars, up from 5.2 stars reached in 2024.
