Centuria’s FY26 climate disclosures put a $22.2 billion platform on a renewable energy path
In its 2026 Climate-related Disclosures, released on 27 October 2026 for the period ended 30 June 2026 (FY26), Centuria Capital Group outlined how it is working climate-related factors into its operations and investment approach. The report is a voluntary response to certain aspects of the Australian Sustainability Reporting Standard S2, Climate-related Disclosures (AASB S2).
The group describes itself as a real estate fund manager with $22.2 billion of assets under management in Australia and New Zealand as at 30 June 2026. Listed and unlisted real estate funds represent 96% of that total.
Centuria’s FY26 results show the same $22.2 billion platform delivering record earnings, with gearing at 5.1% and no debt expiring until June 2028, which frames the balance sheet capacity behind its climate commitments.
For investors, the report shows how the manager is addressing climate-related considerations across a platform that includes Centuria Industrial REIT (ASX:CIP) and Centuria Office REIT (ASX:COF).
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Energy Bay deal: the largest of its type among domestic commercial property landlords in Australia
The report detailed a renewable electricity procurement deal with Energy Bay, described as the largest of its type to be executed among domestic commercial property landlords in Australia. The source measures this by the expected quantity of solar and Battery Energy Storage Systems (BESS) to be installed, and by the number of real estate assets with agreements executed upfront.
Key figures from the deal include:
- c. 70 MW of new solar infrastructure and 300 MWh of BESS on up to 240 properties
- Installation in a staged process over a seven-year period, starting with properties that have existing infrastructure
- c. 85,000 MWh of renewable electricity a year, based on works across c. 78% of identified suitable assets
- Approximately A$430 million of Energy Bay’s own capital to be invested
- A 30-year period for Energy Bay to lease roof space and operate embedded networks
Energy Bay is responsible for the capital expenditure works, so there is no capital requirement from either Centuria or its tenants. The lease structure provides additional revenue contributions, which will increase the participating properties’ Net Operating Income (NOI) and potentially support valuations and generate income streams for Centuria through management fees.
The rollout was stated to commence in October 2026. Approximately 18% of identified assets already contain embedded network infrastructure and are expected to transition into the Energy Bay program shortly, subject to conditions and implementation requirements. Rental flows from these assets are anticipated to commence during the first half of FY27.
Remaining assets are subject to tenant consents, planning approvals and detailed due diligence prior to the commencement of rollout.
Emissions and targets: where Centuria stands
Centuria reported scope 1 and scope 2 (location based) emissions for FY26. Scope 1 covers direct emissions such as gas and diesel used in buildings, while scope 2 covers purchased electricity.
| Metric | FY25 | FY26 | Change |
|---|---|---|---|
| Scope 1 (tCO2e) | **4,012** | **4,440** | Higher |
| Scope 2, location based (tCO2e) | **23,592** | **22,765** | Lower |
| Total (tCO2e) | **27,604** | **27,205** | Lower |
Three caveats apply. The FY26 reporting boundary excludes certain tightly held assets, and FY25 comparatives have not been updated for this change. FY25 scope 1 included estimated refrigerant leakage emissions, whereas FY26 refrigerant emissions were calculated using top-up volumes measured by contractors onsite.
KPMG has provided limited assurance over scope 1 and scope 2 figures.
Centuria’s emission reduction targets are:
- Centuria and COF are targeting the elimination of gas and diesel in operations where practicable (scope 1) by 2035.
- Centuria is targeting zero scope 2 emissions by 2035, with CIP and COF targeting 2028.
- Centuria and the Listed Funds do not have a scope 3 target, and do not currently have interim emission reduction targets.
On progress, the COF portfolio has electrified nine of its 18 assets. Since FY24, Centuria has purchased the equivalent of 100% renewable electricity for all its Australian corporate tenancies.
How scenario analysis shapes the risk picture
Scenario analysis is a process for identifying and assessing a potential range of outcomes of future events under conditions of uncertainty. Centuria states that climate scenarios are not forecasts or predictions.
The group tested three scenarios out to 2050: Sustainability (1.5°C), Middle of the road (2-3°C) and Regional rivalry (>3°C).
Centuria identified Access to Capital, Changing Regulatory Requirements and Physical Climate Change Impacts as climate-related risks that could reasonably be expected to affect its prospects. Of these, Access to Capital and Physical Climate Change Impacts were also identified as opportunities.
A case study on Manning Mall, a neighbourhood retail centre in Taree, NSW, showed the approach in practice. Centuria’s climate modelling forecast the asset’s potential exposure to future physical climate-related risks as within its acceptable risk appetite, and the centre remained unaffected by river floodwaters when severe flooding occurred in April 2025.
On governance, the percentage of executive remuneration recognised in the current period linked to climate-related considerations is 10%.
What happens next for Centuria’s climate agenda
The report points to several dated milestones:
- Energy Bay rollout: commencing in October 2026, staged over a seven-year period, starting with properties that have existing infrastructure.
- Rental flows from existing embedded network assets: anticipated during the first half of FY27, subject to conditions and implementation requirements.
- Asset-specific climate risk assessments: planned to take place during FY27.
- Listed Funds’ zero scope 2 target: 2028.
- Centuria’s zero scope 2 target, and the scope 1 gas and diesel target for Centuria and COF: 2035.
- Scope 3 reporting: not expected to be reported in Australia for CNI or the Listed Funds until required under AASB S2.
Delivery of these targets will increasingly sit with Jason Huljich as sole CEO from 27 November 2026, following the planned succession that sees John McBain move to a Non-Executive Director role.
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