Australian banks CBA and ANZ acted as joint sustainability coordinators to facilitate the loan, with the Puljich family's Prospecta Utilities providing advisory services to GemLife.
The loan ties the major owner and operator of land lease resorts to sector-first independent sustainability certification and scope 1, 2 and 3 carbon reduction benchmarks.
Adrian, GemLife Director and CEO, said the Sustainability-Linked Loan was linked to several bold sustainability targets, including external sustainability certification with the Urban Development Institute of Australia’s (UDIA) EnviroDevelopment program for all new traditional developments, the first time this independent national rating tool has been tied to a loan of this kind.
GemLife aims to reduce scope 1 and 2 carbon emissions by 48% by 2030, equivalent to a 7% annual reduction. Scope 1 and 2 relate to GemLife’s direct emissions and electricity consumption across its communities’ facilities and offices.
Additionally, it is planning to tackle scope 3 emissions (homeowner usage) by deploying significant renewable energy and storage capacity across its communities to ensure clean, low-cost energy for residents.
“We are proud to be the first land lease community developer to embed EnviroDevelopment certification within a Sustainability-Linked Loan, and one of the first to embed the rating tool within our sustainability goals. In setting best-practice benchmarks, all new traditional projects will be registered during the planning stage and certified within 12 months of receipt of Development Approval,” Adrian said.
“To reduce reliance on the grid, we are progressively rolling out our cutting-edge, award-winning energy storage solutions across our communities Australia-wide. The virtual power plants’ (VPPs) combination of rooftop solar with community batteries not only reduces energy costs and improves reliability but has the added benefit of significantly contributing to reduced emissions.
"With cost-of-living pressures continuing to be of major concern for Australians, the VPPs will shield residents from soaring electricity prices, offering bill consistency for our over-50s homeowners, many of whom are on fixed pensions.”
CBA General Manager Major Client Group QLD, Jon Coombes, said by providing low-cost and low-emission energy, GemLife’s sustainability strategy is a great example of a win-win for the environment and their residents.
Mark Langdon (pictured), CEO of Prospecta Utilities, said he was pleased to support GemLife in achieving its first Sustainability-Linked Loan, assisting to define and benchmark meaningful performance targets designed for the land lease sector.
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