State Super owns the Westfield Knox shopping centre at the base of the Dandenong Ranges on the outskirts of Melbourne. The project to re-develop the centre, undertaken within State Super’s Direct Property Strategy managed by Lendlease Investment Management (Lendlease), prioritises several Environmental, Social and Governance (ESG) initiatives.
A key pillar of Lendlease’s approach, which is overseen by our Master Investment Manager, NSW Treasury Corporation (TCorp), is the focus on reducing the environmental impact of that site.
Westfield Knox Redevelopment: A Model for Sustainability
The Westfield Knox redevelopment project, which began in October 2021, prioritised enhancing the environmental credentials of the centre in several ways.
- Large-Scale LED Lighting Upgrade: Replacing conventional lighting with energy-efficient LEDs across car parks, back-of-house areas, the internal mall, and loading docks. This initiative is estimated to deliver a 10% annual reduction in the centre's total base building electricity consumption, preventing over 570 tonnes of carbon emissions annually.
- Installation of a 2MW Solar Array: This substantial on-site solar energy system is projected to generate enough electricity to power roughly one-third of the centre's common areas each year.
Combined, these projects are expected to achieve an annual reduction of over 3,000 tonnes of scope 2 energy consumption, equivalent to an annual carbon footprint of approximately 150-200 average Australian homes.
| Centre Statistic | Existing Centre Pre-development | Developed Centre (forecast) |
| NABERS Energy (star) | 4 | 5 |
| Scope 2 Energy Consumption (MWh) | 9,670 | 6,183 |
| Net Zero Scope 2 Emissions Target | n.a. | 35 |
Source: Westfield Knox Asset & Development Performance Update
Beyond energy efficiency, the Westfield Knox redevelopment project demonstrated Lendlease’s commitment to sustainability beyond energy savings. These include implementing a glass crushing program to recycle glass waste, introducing a food composting system to manage organic waste sustainably, deploying smart recycling bins to optimise waste separation, and installing a rainwater harvesting tank to promote water conservation efforts on-site.
These initiatives underscore the commitment of State Super and its investment managers (Lendlease and TCorp) to not only enhancing the sustainability performance of State Super’s our Direct Property Strategy but also contributing positively to the communities where it operates. By using these strategies in the Westfield Knox redevelopment, Lendlease has set a standard for integrating responsible business practices into planning and delivery and driving long-term value creation while minimising environmental footprint.
These comprehensive sustainability efforts serve as a solid example for future developments within its Direct Property Strategy. State Super remains committed to ensuring its managers integrate strong ESG principles throughout its portfolios, ensuring a positive environmental impact alongside sound commercial performance and alignment with our Net-Zero scope 1 and 2 cO2e goal.