DEXUS : 2022 CDP Response

Dexus - Climate Change 2022

C0. Introduction

C0.1

(C0.1) Give a general description and introduction to your organization.

Dexus is one of Australia's leading fully integrated real estate groups, managing a high-quality Australian property portfolio valued at $42.5 billion. Dexus is a Top 50 entity by market capitalisation listed on the Australian Securities Exchange (trading code: DXS) and is supported by more than 30,000 investors from 23 countries. We believe the strength and quality of our relationships will always be central to our success and we are deeply committed to working with our customers to provide spaces that engage and inspire.

With over 35 years of expertise in property investment, funds management, asset management and development, we have a proven track record in capital and risk management, and delivering superior risk-adjusted returns for investors. We invest only in Australia, and directly own $17.5 billion office, industrial and healthcare properties and investments.

We manage a further $25.0 billion of office, retail, industrial and healthcare properties in our funds management business which provides wholesale investors with exposure to quality sector specific and diversified real estate investment products. The funds within this business have a strong track record of delivering outperformance and benefit from Dexus's capabilities.

The group's $14.6 billion development pipeline provides the opportunity to grow both portfolios and enhance future returns. We consider sustainability to be an integral part of our business with the objectives of Leading Cities, Future Enabled Customers, Strong Communities, Thriving People, and an Enriched Environment supporting our overarching goal of Sustained Value.

C0.2

(C0.2) State the start and end date of the year for which you are reporting data.

	Start date	End date	Indicate if you are providing emissions data for past reporting years	Select the number of past reporting years you will be providing emissions data for
Reporting year	July 1 2020	June 30 2021	No

C0.3

(C0.3) Select the countries/areas in which you operate.

Australia

C0.4

(C0.4) Select the currency used for all financial information disclosed throughout your response.

AUD

C0.5

(C0.5) Select the option that describes the reporting boundary for which climate-related impacts on your business are being reported. Note that this option should align with your chosen approach for consolidating your GHG inventory.

Operational control

C-CN0.7/C-RE0.7

(C-CN0.7/C-RE0.7) Which real estate and/or construction activities does your organization engage in?

New construction or major renovation of buildings

Buildings management

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C0.8

(C0.8) Does your organization have an ISIN code or another unique identifier (e.g., Ticker, CUSIP, etc.)?

Indicate whether you are able to provide a unique identifier for your organization	Provide your unique identifier
Yes, a Ticker symbol	ASX: DXS
Yes, an ISIN code	AU000000DXS1

C1. Governance

C1.1

(C1.1) Is there board-level oversight of climate-related issues within your organization?

Yes

C1.1a

(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for climate-related issues.

Position of	Please explain
individual(s)
Board-level	The Dexus Board has delegated responsibility for assessing and managing climate-related issues to the Board's Environment, Social, and Governance ('ESG') Committee which includes three of the
committee	seven non-executive board members. The Board ESG Committee oversees the implementation and management of Dexus's sustainability strategy (known as our Sustainability Approach), which
	includes ESG initiatives to maintain the group's position as a leader in sustainability practices. The Committee approves and endorses environmental targets and ESG strategies for the group.
	An example of a climate-related decision made by the Board ESG Committee in FY21 occurred in the review process for Dexus's future environmental targets. The Committee made the decision to
	approve and endorse targets, including to reach net zero by 2022, and Dexus's FY25 environmental targets such as sourcing 70% electricity from onsite and offsite renewables sources across the
	group's managed portfolio and improving energy and water efficiency by 10% across the group office portfolio.
	Dexus's Chief Operating Officer and the Executive General Manager, Investor Relations, Communications and Sustainability, reports quarterly to the Board ESG Committee. The Board ESG
	Committee works closely with the Board Risk Committee on climate-related issues because of the inclusion of climate change as a strategic risk.
Board-level	The Dexus Board has delegated responsibility for assessing and managing climate-related risks to the Board Risk Committee which includes of three of the seven non-executive board members. The
committee	Board Risk Committee oversees the implementation of Dexus's Risk Management Framework and the group's risk management practices, as well as Work Health and Safety, environmental
	management, and internal audit. An example of a climate-related decision that was made by the Board Risk Committee in FY21 was approval and endorsement to maintain climate change as a key
	risk in our risk appetite statement. The Dexus Risk Team, led by the Head of Risk, reports quarterly to the Board Risk Committee.
	The Board Risk Committee works closely with the Board ESG Committee on climate-related issues because of the inclusion of climate change as a strategic risk.

C1.1b

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(C1.1b) Provide further details on the board's oversight of climate-related issues.

Frequency	Governance	Scope of	Please explain
with	mechanisms	board-
which	into which	level
climate-	climate-	oversight
related	related issues
issues are	are integrated
a
scheduled
agenda
item
Scheduled	Reviewing and	<>	The Executive General Manager, Investor Relations, Communications and Sustainability, and the Senior Manager, Group Sustainability and Energy present at Dexus Board	-
- all	guiding	Applicabl	invited meetings and at each quarterly meeting for the Board ESG Committee as a standing agenda item. The Sustainability Team prepares a Quarterly ESG Dashboard
meetings	strategy	e>	which details progress and status on climate, climate change and resilience, and sustainability priorities and targets (towards our Sustainability Approach and Strategy)
	Reviewing and		prior to the Board ESG Committee's meeting and is a discussed agenda item. Post-meeting, the Board ESG Committee minutes are provided to the Dexus Board. An
	guiding major		example of a regular topic of discussion, is our climate change resilience strategy, which involves: one, reducing our impact through decarbonisation, energy efficiency and
	plans of action		renewable energy; two, adapting to physical and transitions risk of its property, people and operations, and leveraging climate change-related opportunities; and three,
	Monitoring		influencing our value chain by engaging customers [tenants] and suppliers to reduce climate impacts. An example of a topic discussed with the Board ESG Committee
	implementation		includes initiatives to reduce the climate impact from bushfires on building occupants by improving air filtration and adopting control measures based on alerts of poor
	and		ambient air quality. Another topic discussed has been Dexus's on-site solar renewable initiatives and the continued review of our energy procurement decarbonisation
	performance of		strategy against the group's FY25 renewable energy sourcing target.
	objectives
	Monitoring and
	overseeing
	progress
	against goals
	and targets for
	addressing
	climate-related
	issues
Scheduled	Reviewing and	<>	The Executive General Manager, Investor Relations, Communications and Sustainability, and the Senior Manager, Group Sustainability and Energy are invited to present at
- some	guiding	Applicabl	each quarterly Board ESG Committee as a standing agenda item. The Sustainability Team prepares a Quarterly Environmental Performance and Initiatives Report which
meetings	strategy	e>	details the progress and status on climate, climate change and resilience, and sustainability priorities and targets prior to the meeting and is discussed as an agenda item.
	Reviewing and		The Sustainability Team reports on its progress on the climate resilience roadmap (mitigation, adaptation, and influencing value chain). All Sustainability Commitments are
	guiding		approved and endorsed annually by the Board, or as required by exception. An example of this is, in FY21, the Board ESG Committee reviewed the group's progress
	business plans		against its Net Zero Emissions target, including progress of key initiatives such as achieving the group's NABERS Energy Rating target (a minimum of 5 Stars across
	Setting		1,000,000 square metres; onsite renewable energy installation initiatives; and our electricity procurement decarbonisation strategy and roadmap).
	performance
	objectives
Scheduled	Reviewing and	<>	The Board Risk Committee reviews enterprise-wide risk management practices including climate and environmental management. The Quarterly Meetings address the
- all	guiding risk	Applicabl	effectiveness of the group's Risk Management Framework. The group's Environmental Management System ('EMS') is subject to regular review which feeds ongoing
meetings	management	e>	enhancements to the EMS (which is managed by the Risk and Sustainability Teams). The Board Risk Committee works closely with the Board ESG Committee on climate-
	policies		related issues because of the inclusion of climate change as a strategic risk.
Scheduled	Reviewing and	<>	The Dexus Board approves all corporate annual budgets for all business units during their yearly two-day strategy session. The Board approves all major capital expenditure,
- some	guiding annual	Applicabl	acquisitions, and divestments (in accordance with its Terms of Reference) Relevant activities are discussed in meetings where appropriate.
meetings	budgets	e>
	Overseeing
	major capital
	expenditures,
	acquisitions
	and
	divestitures

C1.1d

(C1.1d) Does your organization have at least one board member with competence on climate-related issues?

	Board	Criteria used to assess competence of board member(s) on climate-related issues	Primary reason for	Explain why your organization does not have at
	member(s)		no board-level	least one board member with competence on
	have		competence on	climate-related issues and any plans to address
	competence on		climate-related	board-level competence in the future
	climate-related		issues
	issues
Row	Yes	Yes, we have a board member with competence on climate-related issues, highlighting our capability and our
1		commitment to understanding and responding to climate change risks, opportunities, and impacts.
		The Dexus Board has overall responsibility for the appointment and removal of Non-Executive Directors (subject
		to Security Holder Approval). The Nomination Committee, on behalf of the Dexus Board, one, conducts periodic
		reviews of the performance of Non-Executive Directors, and, two, conducts searches for suitable candidates to
		fill vacancies as and when they arise.
		The Nomination Committee considers the mix of experience, expertise, qualifications and diversity (including
		gender, age, ethnicity and background) of existing Non-Executive Directors, cognisant of the group's strategy
		and objectives, to identify desirable capabilities for any new Non-Executive Directors.
		The Nomination Committee's search for suitable candidates, includes candidates not known to the current Non-
		Executive Directors and candidates representative of our diversity objectives. The tenure of existing Non-
		Executive Directors is also taken into consideration and the Committee will consider a range of criteria
		acknowledging the current board's skills matrix along with current and future areas of focus.
		The Nomination Committee will make a recommendation for appointment to the Dexus Board for discussion and
		approval.
		And the Board may choose, from time to time, to appoint a new Executive Director(s). These appointments will
		be subject to Security Holder Ratification as required under the ASX Listing Rules.

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C1.2

(C1.2) Provide the highest management-level position(s) or committee(s) with responsibility for climate-related issues.

Name of the position(s) and/or committee(s)	Reporting	Responsibility	Coverage of	Frequency of reporting to the board on
	line		responsibility	climate-related issues
Chief Executive Officer (CEO)	<>	Both assessing and managing climate-related		Quarterly
Chief Executive Officer (CEO) and Executive Director	Applicable	risks and opportunities
	>
Other C-Suite Officer, please specify (Executive General Manager, Investor	<>	Both assessing and managing climate-related		Quarterly
Relations, Communications, and Sustainability)	Applicable	risks and opportunities
	>
Environment/ Sustainability manager	<>	Both assessing and managing climate-related		Quarterly
known as, Dexus's Senior Manager, Group Sustainability and Energy	Applicable	risks and opportunities
	>
Chief Operating Officer (COO)	<>	Both assessing and managing climate-related		Quarterly
	Applicable	risks and opportunities
	>
Corporate responsibility committee	<>	Both assessing and managing climate-related		Quarterly
known as, Dexus's Corporate Executive Committee	Applicable	risks and opportunities
	>
Risk committee	<>	Both assessing and managing climate-related		Quarterly
	Applicable	risks and opportunities
	>
Other C-Suite Officer, please specify (Executive General Manager, Office)	<>	Managing climate-related risks and		As important matters arise
	Applicable	opportunities
	>
Other C-Suite Officer, please specify (Executive General Manager, Industrial, Retail	<>	Managing climate-related risks and		As important matters arise
and Healthcare)	Applicable	opportunities
	>

C1.2a

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(C1.2a) Describe where in the organizational structure this/these position(s) and/or committees lie, what their associated responsibilities are, and how climate- related issues are monitored (do not include the names of individuals).

Chief Operating Officer ('COO'): is responsible for the People and Culture, Real Estate Operations, Risk, Marketing, Corporate Affairs and Communications, Sustainability and Technology functions, together with a focus on commercial processes to enhance decision efficiency across the group. This role reports directly to the CEO and is a member of the Group Management Committee, which has oversight of climate-related issues within the scope of addressing economic, environmental and social topics, including property resilience, climate change impacts, human rights and modern slavery, and community investment. The Executive General Manager ('EGM'), Investor Relations, Communications and Sustainability, and the General Manager, Group Sustainability present to the COO at quarterly EGM Meetings. The COO is shown the Quarterly Environmental Performance and Initiatives Report which details the progress and status on climate, climate change and resilience, and sustainability priorities and targets, which is discussed as an agenda item.

Post the FY21 disclosure period, the EGM Investor Relations, Communications and Sustainability resigned from Dexus and the sustainability function has been included as part of the COO's responsibilities.

The Executive General Manager Investor Relations, Communications and Sustainability: responsible for implementing the group's sustainability strategy (known as the Sustainability Approach), sustainability reporting, and reviewing and approving materials in accordance with our material approval process. The Executive General Manager Investor Relations, Communications and Sustainability has responsibility for the management of climate-relatedopportunities and risks, such as progress toward and achievement of our target to reach net-zeroemissions by 30 June, 2022. This role also reports directly to the CEO and is a member of the Group Management Committee, which has oversight of climate related issues within the scope of addressing economic, environmental and social topics, including property resilience and climate change impacts, human rights, modern slavery, and community investment.

Senior Manager, Group Sustainability and Energy: leads the Dexus Sustainability team and coordinates day-to-day integration of sustainability within operations including:

• Oversight of the group's Sustainability Approach including the setting of ESG objectives against each key objective and monitoring progress
• Responsibility for environmental performance including target setting, monitoring and reporting
• Oversight of annual energy and emissions reporting as per legal requirements and external assurance of Dexus's environmental accounts
• Oversight of NABERS rating program to maintain legal compliance and setting building performance targets

Corporate Executive Committee: is accountable to and reports to the Group Management Committee and the Board ESG Committee. The Corporate Executive Committee is responsible for developing and overseeing the implementation of Dexus's sustainability strategy (Sustainability Approach) in relation to ESG policies and practices, risk management, compliance management and internal audit programs.

Members of the Corporate Executive Committee are:

• Chief Financial Officer
• Chief Operating Officer
• General Counsel and Company Secretary
• EGM, Investor Relations, Communications and Sustainability

The Corporate Executive Committee is tasked with ensuring effective management of risks that have the potential to impact Dexus's strategy and outlook. Climate Change is a key strategic risk to the group with potential impacts over the medium to long term. These risks are actively reviewed and managed within Dexus's Risk Management Framework and by the Sustainability team. The Sustainability team reports quarterly to the Corporate Executive Committee and Board ESG Committee meetings, detailing progress and status on climate and sustainability targets, progress on Dexus's climate change resilience strategy, and updates on emerging topics such as legislation, markets, and environmental topics. Each key strategic risk, climate included, is discussed in detail on an annual basis. For climate,

The Board Risk Committee works closely with the Board ESG Committee on climate-related issues because of the inclusion of climate change as a strategic risk for Dexus.

Executive General Manager, Office: is responsible for the group's $26 billion Office portfolio, and oversees management of property-related climate risks and performance, with involvement as important matters arise.

Executive General Manager, Industrial, Retail and Healthcare: is responsible for the group's Industrial, Retail and Healthcare portfolios, and oversees management of property-related climate risks and performance, with involvement as important matters arise.

C1.3

(C1.3) Do you provide incentives for the management of climate-related issues, including the attainment of targets?

	Provide incentives for the management of climate-related issues
Row 1	Yes

Comment

C1.3a

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