Pioneering a greener future: Growthpoint Properties leads with e-co2 green energy scheme
In a bold sustainability move, Growthpoint Properties (JSE: GRT), South Africa's foremost property company, is set to revolutionise electricity for the commercial real estate sector with the launch of its innovative e-co2 green energy benefit scheme.
The e-co2 scheme will provide clean, green energy through a process known as wheeling, which will transmit renewable energy from sources such as hydro, wind, and solar power directly to Growthpoint’s commercial properties. This groundbreaking initiative, debuting in July 2025, will initially be available at ten office properties in Sandton, Johannesburg, marking a significant milestone in the nation's renewable energy transition.
This pioneering approach reduces carbon footprints and generates Renewable Energy Certificates (RECs) for tenants, leveraging cutting-edge blockchain technology.
Growthpoint's commitment to sustainability is underscored by its Power Purchase Agreement (PPA) with Etana Energy, a licensed electricity trader. This agreement facilitates the wheeling of electricity generated by independent power producers to Growthpoint's buildings across South Africa. The first phase involves a hydroelectric power plant developed by Serengeti Energy, located within the Lesotho Highlands Water Scheme. From July 2025, this plant will provide a steady supply of clean energy.
From 2026 onwards, additional wind and solar energy sources will be integrated into the grid, boosting the scheme's capacity. Paul Kollenberg, Head of Asset Management: Offices at Growthpoint Properties, highlights the significance of this initiative, stating, "This agreement secures us a substantial 195GWh of green electricity annually for Growthpoint and participating tenants, and represents an important step forward in our sustainability journey."
Growthpoint's dedication to environmental sustainability is evident in its goal to achieve carbon neutrality by 2050. It actively integrates Environmental, Social, and Governance (ESG) principles into its corporate strategy and, by doing so, sets a precedent for sustainable business practices and enables other businesses to follow suit.
The e-co2 scheme offers substantial benefits to tenant businesses, allowing them to meet their ESG targets with at least 70% of their electricity sourced from renewable energy. Some businesses may even opt for 100% renewable energy, depending on availability. Werner van Antwerpen, Head Corporate Advisory at Growthpoint, explains, "Opting into e-co2 gives users access to certified RECs that can be used for annual emission reduction in ESG reporting or traded in the open market."
Additionally, the e-co2 scheme provides the advantage of reduced cost of occupation, as it guarantees long-term savings for tenants who share the cost benefits from the fixed escalation rate Growthpoint secured for renewable energy in its PPA. The longer a lease, the greater the savings. This innovative benefit is not only available to Growthpoint’s current occupants but is also likely to attract new tenants looking to align with sustainable practices.
Initially, the e-co2 scheme will be offered for new leases or renewals at the Sandton properties, including 138 West Street, The Annex, The Place, Fredman Towers, and others. Growthpoint plans to expand this offering over time, further cementing its position as a leader in sustainable commercial real estate.
Growthpoint Properties' pioneering efforts with the e-co2 scheme exemplify a forward-thinking approach to sustainability, setting a new standard for South Africa.