It’s been another big week in sustainability. There was our big Transition Risk Sydney masterclass on Tuesday, a call for submissions for our next event that we sent out on early Thursday and Climate Week in New York jostling for attention amid the UN General Assembly and news that AI had hacked into our government data base and when told to stop, refused.
In the midst of that came the weird antics of the Coalition attempting to win back the Peter Dutton fans who lost it the last federal election. Its technique mimicked Dutton’s but amplified by the power of 10 Pauline Hansons, promising to take a chain saw to all sustainability and climate programs.
Among the litany were the removal of the Safeguard Mechanism, emissions standards for industry and vehicles, the Climate Change Act, renewable energy programs, but wide open arms for nuclear, which we know proponents want government (we the taxpayers) to pay for.
So a lot of nice supply chain of fat fees (over decades) here for the consultants who will divert funds from the cheaper faster returns that renewable energy offers.
Sigh… we’ve seen that movie before.
It’s yet another example of the White House tentacles clutching ever tighter around the throats of the rising populist agenda.
Do we care?
Well, yes and no.
We care that is a bad signal, a sign of fragmentation of our society, and a nod to (or from?) the establishment that it’s okay to destroy our environment.
Why we don’t care so much is because the fight for the climate is too big to fail. Bill Clinton called it back in 1992: “It’s the economy stupid”. Europe’s recent summer proves how fragile our economy is when the nature calls it quits.
There’s also a lot of money already flowing into the transition, whether you call it sustainability inspired or not. See the report from Bain & Co that noted consumers were choosing more renewable energy, and sustainable, chemical free options but under guise of hip pocket and better health (rather than anything that might be labelled altruistic).
Climate risk, sustainability risk and the risk of nature failing, is very much a financial and economic risk.
Su-Fern Tan, head of ESG Pacific Region from CBRE, our host for the Transition Risk masterclass, made the point in her welcome note to the audience.
Business depends on nature, she said. “Through centuries of observing and understanding Country, First Nations people understand better than anyone our dependence on local biodiversity and ecosystems for food, clothing, and shelter.”
In short, everything.
In his address NABERS director Carlos Flores, just back from establishing the NSW government’s Net Zero Commission over two years again made the additional point that buildings are at the inflection point of our response to the challenges, as he did in the Melbourne edition of the masterclass.
We cannot meet our 2035 federal targets without a focus on the on-site emissions from buildings, “basically electrifying a majority of existing buildings, millions of homes, hundreds of 1000s of existing commercial buildings”.
The big question is how?
How do the investors and finance sector facilitate such a mass shift in our energy profile?
Frankie Muskovic, executive director, policy, Investor Group on Climate Change, who comes from a deep property background, says institutional property does not concern her so much these days. The sector pretty well gets it, she says.
Sure, it’s always possible for this group to go faster and it could certainly expect more scrutiny from investors, she said, but the real issue is that these institutional investors don’t tend to own a lot of B, C and D grade buildings where the serious problems have barely started to be tackled.
The good news, she said is that many of the elements that could lead to better performance are already in place.
“We’ve got the tools and the benchmarks; we need a much sort of stronger rollout of disclosure, like mandatory disclosure across a lot more different property types.”
Europe has mandatory minimum standards for buildings, she noted; Australia is behind.
In the Melbourne event, The Fifth Estate asked a developer in the audience who had been engaging in the discussion how he felt about mandatory standards. He was not impressed. His sector already had so many rules and regulations to manage, this would be a step too far, he said.
But Muskovic thought it inevitable. “I think looking ahead, that’s probably where it’s going to need to go. The experience with NABERS is clear – exposure to the rating tool through measurement leads almost inevitably to improvement in performance.
“Once you’re in, you end up going on the journey, and you realise the benefits. The key is to get people through the door and rating their buildings, and supporting them with the finance to back it in,” she said.
“I don’t see that happening without stronger regulatory sticks on the time frame you need.”
Michael di Russo agreed. “There are very clear pathways that need to happen to decarbonise,” he said, noting the rating tools available.
“I think what is misunderstood is the iceberg effect. How much of the market is not plugged into those aspects.” It’s where policy will start to “lean into the use of those frameworks and rating tools to a broader pool of capital and asset owners.”
And then there are the buildings adjacent sectors that will need massive attention. As Carlos Flores had noted electrification of road transport would heavily depend on buildings enabling charging.
There’s more
There were many more presentations on how to plan for capital upgrades, how to analyse existing capacity and create efficiencies and some big pieces on energy flex. All with lively questions that kept panellists and presenters engaged.
If you would like a bespoke version of this masterclass, over a time frame that meets your needs, for your city, region or business, get in touch.
The sessions are also available as a whole or separately (see full program below) to members of The Fifth Estate. Get in touch and let us know how we can help. Contact events@thefifthestate.com.au
Here is the full program for Transition Risk Sydney 22 September 2026
Huge thanks to our sponsors NABERS, City of Melbourne, Buildings Alive and CBRE.
| Session 1: Why this matters – energy, carbon and disclosure trends Steve Ford MC: The energy transition goes beyond technical and enters the world of economic megatrends, legal and financial implications and mandatory reporting. This opening session will provide the context as to why the energy transition must be considered in a broader business risk and opportunity. Anthony Szatow, Head of New Energy Solutions, Buildings Alive Overview of trends in energy markets that underpin much of the energy transition. Joshua Martin, Founding Director, Foresight Consulting Policy trends impacting real assets, owners, tenants and service providers. Understand the legal exposure, financial reporting requirements that directly impact you or your value chain and how business strategy must evolve. Carlos Flores, Director, NABERS Where NABERS is heading next. How to prepare – risks and opportunities |
| Session 2: The business and value case for your energy transition Finance and engineering:Build a plan that considers both sides of the equation, the financial and technical solutions. This will become a common theme for the day – business cases and energy solutions go hand-in-hand. Foreseeable requirements to manage the energy transition become just as much a contingent liability issue for your Chief Financial Officer to consider as they are a lifecycle planning requirement for asset and operations managers. Done well, this transition has finance and sustainability professionals equally engaged. Neglected, this transition can lead to un-forecast capital expenses, increased operational costs and stranded assets. Michael Di Russo, Head of Property, Clean Energy Finance Corporation The best practices that CEFC sees and the returns stack including savings, tenant attraction, green finance options and benefits and mandates from investors. Michael will present some of the CEFC investments and their outcomes. Francesca Muskovic, Executive Director – Policy, Investor Group on Climate Change (ex-Property Council of Australia) What are the mega trends of investor expectations when it comes to the transition to a low carbon economy? Regardless of politics, there is a ground swell of expectation for investors to respond to climate change. |
| Session 3: Holistic planning Your energy transition plan needs to maximise long term value creation. Look at the big picture as considering each element in isolation can be detrimental. It is as much a financial challenge in establishing business cases to protect long term asset values, as it is a technical problem to optimise energy efficiency. Look for the opportunity where there is risk and look over the horizon for what you need to prepare for. Steve Hennessy, Consultant – Sustainability, WT Partnership Transitioning your building for a low carbon energy future is about so much more than simple plant upgrades and electrification. No two buildings are the same and all changes have a flow on effect. Understanding the bigger picture and planning holistically will result in the optimal outcome for your building now and into the future. Choosing the right path will help identify and manage the unintended consequences that can potentially occur if your transition looks at each project in isolation. Alicia Maynard, Responsible Investment Consultant The holistic view of transitioning your assets for a low carbon future ventures beyond the physical actions and must include processes to engage stakeholders and meet their needs. Creating and maintaining value for assets over the long term while meeting the shorter term business imperatives need to work hand-in-hand with your physical asset planning processes. |
| Session 4: Electrification and key triggers for actions Key processes, benefits and challenges in electrifying buildings. How electrification will impact your NABERS ratings. Implement the building reviews necessary before electrifying to avoid unintended consequences. Use life cycle planning to align complementary projects. Overview of key processes, benefits and challenges in electrifying buildings. Magali Wardle, Head of Market Development, NABERS How will electrification (or not electrifying) impact your NABERS ratings? Andrew Bagnall, NSW Manager, A.G. Coombs Whether it is at end-of-lifecycle, during periods of vacancy or driven by a solid business case, there will be a trigger for you to electrify assets and there are some things you should know in advance to inform your plans. Understanding your existing electrical capacity and any constraints is an important enabler to inform an electrification plan.Then there are the constraints on mechanical and heating upgrades ranging from ventilation, temperature constraints, pipe and pump constraints, space requirements but also opportunities to add summer cooling capacity. And bigger picture issues of refrigerant also need to be considered. |
| Session 5: Demand side flexibility As we transition from a dispatchable fossil fuel dominated energy system to a renewable and non-dispatchable energy system, we need to consider not only how much energy we use but when we use it. Put simply, when the sun doesn’t shine and the wind doesn’t blow, what will the implications be and how can you position your assets to manage this transition smoothly. Tosh Szatow, Buildings Alive Learn how to best manage imbalances in supply, demand and networks and maximise usage when electricity is cheap, green and abundant. How do you support an orderly transition and benefit from using energy at the right time. How can this also impact your carbon emissions. Nova Franklin, NABERS What is on the horizon for NABERS with regards to demand-side flexibility? |
| Session 6: A practical approach to your energy transition What are the practical steps that you should take to optimise your buildings while managing the energy transition? You will learn how to halve the average energy consumption of a buildings through systematic energy management processes including monitoring processes, engagement with operations and tenants. This will also cover how to efficiently manage increasing reporting requirement and key tips on getting your projects approved. Emma Baird Associate Director – Sustainability Consulting, CBRE Taking us through a number of practical examples of how and when to transition and deliver long term value. What should you have in your transition plan and how do you leverage other building lifecycle opportunities to deliver the best outcomes for your investors and tenants. Jamie O’Reilly, Investment Manager, AsheMorgan Interview with The Fifth Estate Managing Editor Tina Perinotto What does a proactive owner/investor look for in creating value with regards to the energy transition? A look at 60 Margaret street as a case study and other assets to understand the key drivers at play. |
| Session 7: Energy transition projects – case study Case studies in electrifying heating and hot water at a fraction of regular costs. Alternative heating options, planning for resilience opportunities, and electro-retrofits case studies. Andrew Bagnall, NSW Manager, A.G. Coombs |
