In today’s corporate landscape, the integration of Environmental, Social, and Governance (ESG) principles has become imperative. McCormack recognises the impact of ESG considerations on corporate responsibility and value enhancement. We specilise in Asset Repositioning, with our delivery model Early Contractor Involvement providing you with the expertise and advice from the get go to optimise returns on commercial property investments but also align with ESG objectives, fostering sustainability and long-term viability success.

 

Why ESG Matters

ESG serves as a comprehensive framework for evaluating a company’s sustainability efforts. It encompasses Environmental factors, such as reducing carbon emissions and promoting eco-friendly practices; Social considerations, such as employee well-being and community engagement; and Governance, which emphasizes transparent leadership and ethical practices.

Investors are pivoting, and there has been continuous growth in the repositioning of landmarks to receive net zero ratings, green stars etc. We are seeing a number of investors and tenants investing more money into buildings. Many buildings now, such as 54 Wellington in Collingwood have strict building guidelines for fit-out/refurbishment works commencing. For example, the building is currently targetting a  5 Star Nabers Energy, 4 Star Nabers Water, Nabers Indoor Environment and Nabers Waste rating, Well Core & Shell rating, meaning building rules for building services companies completing works such as reduction of energy and water consumption alongside the emission of carbon dioxide throughout the build. JLL reviews building works before commencement to ensure  protocol. This is one example of how real estate investors are increasingly implementing the use of green/sustainability lease clauses, using  lease clauses as a structure to help realise their own ESG targets.

Compass Engineering estimates that energy use in buildings represents 30% of total global energy emissions, with more than half of that associated with building services. Recognising this significant impact, there’s an obligation within the realm of building services and asset repositioning to address energy consumption and emissions. Strategies for sustainable-driven asset repositioning include various approaches across mechanical, electrical, and hydraulic services. This encompasses electrification of HVAC hot water, implementation of solar photovoltaic systems, battery energy storage, and LED lighting, among others. Each strategy not only contributes to reducing carbon emissions but also enhances energy efficiency and overall sustainability. Moreover, considerations extend beyond technical aspects to encompass spatial, structural, acoustic, and regulatory impacts, emphasizing a holistic approach to sustainable asset repositioning.

Despite the ethical benefits of ESG, ESG can provide many benefits such as improved reputation, diversification into new sectors, increased efficiency (eg. reducing energy consumption and long-term savings)  and the obvious… making a genuinely positive impact on society.  Implementing ESG can be challenging, whether it’s a lack of knowledge and expertise or cost association each business challenge can be unique. McCormack continually invests in the development of our delivery experts to ensure they are well-versed across these, and as a business, we offer relevant service models for a wide range of project scope sizes.

 

Delivery Models for Value Enhancement

McCormack specialises in advising landlords and asset managers on optimising returns through asset repositioning. By strategically repurposing existing spaces within commercial buildings, we enhance their appeal to tenants, ultimately leading to higher rental yields and long-term leases. Our approach considers each client’s unique position, budget, and time constraints, ensuring tailored solutions that maximise value and sustainability. Our Early Contractor Involvement Model plays a pivotal role in integrating ESG principles into projects from inception. By engaging early in the design phase, we align construction costs with sustainability goals, mitigating risks associated with regulatory changes and resource scarcity. This collaborative approach involves close coordination with architects, engineers, and subcontractors to deliver cost-effective, sustainable solutions.

We prioritise transparent communication and stakeholder engagement to build trust and credibility. By anticipating trends and regulatory shifts related to sustainability and ESG criteria, we empower clients to future-proof their investments and contribute to a socially conscious business landscape. As businesses navigate the evolving landscape of corporate responsibility, integrating ESG principles becomes paramount. McCormack can support in offering  pathways to maximise value while aligning with sustainability goals. By leveraging our expertise via Early Contractor Involvement Model, clients can drive sustainable development, enhance asset performance, and thrive in a socially responsible manner.

To learn about more about ESG and our environmental sustainability action plan click here.