Optimising NABERS IE ratings for sustainability-linked loan incentives

‍Background

‍A leading Australian real estate company have set an ambitious target for their NABERS Indoor Environment (IE) portfolio rating, aiming to reach an average 4.5 stars. This goal is crucial as it was tied to a significant portion of their substantial Sustainability Linked Loans (SLL) in the hundreds of millions, which promise interest rate discounts upon achieving the target. The loans, crucial for their debt financing strategy, are not earmarked for specific sustainability projects but are integral to the company's overall financial health.

Issue

‍The company faced a challenge when a key property experienced a drop in its NABERS IE ratings. This decline was attributed to incomplete temperature log data, poorly positioned sensors, and indoor air quality issues. This issue was significant enough to negatively impact their entire portfolio's average rating. Their existing process for managing these ratings was largely reactive, relying on annual independent assessments and manual data extraction from various BMS's, which proved to be both time-consuming, expensive and risky.

Solution

The company is working with CIM to roll out its PEAK Platform. The platform's dedicated Indoor Environment module will proactively address the issues via:

1. Tagging of critical NABERS IE sensors across the portfolio for enhanced monitoring.
2. 24/7 monitoring of thermal comfort conditions to identify issues promptly.
3. Automation of workflow notifications for on-site teams, enabling swift resolution of faults.
4. An internal NABERS IE reporting mechanism to keep stakeholders informed and engaged.

Impact

‍These proactive measures will significantly improve the company's approach to managing their NABERS IE ratings. Continuous monitoring and automated alerts facilitate immediate issue resolution, preventing further declines in ratings. The dedicated IE module provides transparent, real-time insights to stakeholders, fostering a culture of accountability and ongoing improvement. Ultimately, these efforts will not only bring the company closer to achieving their SLL interest rate discounts but also demonstrating their strong commitment to sustainability and operational efficiency.