In an Australian first, property group GPT has had a logistics centre certified as being embodied carbon-neutral, while a new office block development is on track to achieve the same status.

In an interim results briefing today, GPT revealed it has made significant progress in efforts to reduce or eliminate the emissions associated with the production of the concrete, steel, glass, and other construction materials that it uses in its developments.

These emissions are referred to as "embodied carbon".

GPT announced that its Foundation Road project in the outer Melbourne suburb of Truganina has been certified as Australia's first "embodied carbon neutral" logistics hub, by both Climate Active and the Green Building Council of Australia.

The certification follows work in the design phase to reduce the use of carbon-intensive materials, backed by the sourcing of low-carbon equivalents, with nature-based credits used to offset the residual embodied emissions.

GPT also announced that its 51 Flinders Lane office development, due to open in 2025, will be the property group's first embodied carbon neutral office project.

All future office projects will also be carbon neutral, for both embodied and operational emissions.

The property group is sourcing its carbon credits to offset residual embodied carbon from Greenfleet and Traditional Owners, through projects that will restore 1,100 hectares of biodiverse koala habitat.

More challenging, less time

GPT sustainability manager Steve Ford told Footprint that measuring embodied emissions is more challenging than operational emissions, because the process depends heavily on supply chain information.

He noted that GPT had been working to reduce operational emissions since 2005, making significant inroads.

However, the urgent task of tackling climate change means that work on tackling embodied emissions has to go "further, faster", he said.

Ford noted that while strategies to reduce operational emissions are fairly standard nationally, there can be regional differences in the ability to source low-carbon construction materials.

For example, the type of low-carbon cement that GPT sources in Queensland isn't available in Victoria, and consequently a different product is used in the southern state, he said.

He added that there can be a "price premium" for low-carbon materials, either because their production involves new technologies or they haven't yet achieved the economies of scale reached by standard materials.

However, on the flip side, steps in the design stage to reduce embodied carbon – for example by using less of certain materials – can deliver significant savings, he said.

Ford noted that, although GPT's has at this stage pledged to make all new office developments embodied carbon neutral, the feasibility of a similar logistics pledge is under investigation.

Showing leadership on sustainability does resonate with potential tenants, Ford added.

Five years ago it would be almost unheard of for a leasing executive with a prospective GPT tenant to meet in advance with him to discuss sustainability issues, "now it is a regular request from the tenant before they sign".

Today's announcement follows GPT's advice earlier this year that it was developing embodied carbon inventories, and that it would collaborate with suppliers and industry peers "to demonstrate our shared appetite for lower embodied carbon development".

For operational emissions, GPT has more carbon neutral-certified floor space than any other property owner in Australia, and is on track to have all its managed assets as operating carbon neutral by 2024.

GPT's $18.4 billion property portfolio includes office blocks, logistics centres, and shopping centres.