Case Study: Waste Management and Procurement in the Logistics Sector

Situation and Challenge

ESR Australia & New Zealand (ESR) is a leading developer, manager and investor of industrial, logistics and commercial property, with $22.9 billion in assets under management.

As part of its ESG commitments, ESR Australia has adopted Green Star ratings across its portfolio, including Green Star Performance v2, the new version of the Green Building Council of Australia's (GBCA's) rating tool for sustainable property operations.

Under Green Star Performance v2, waste and recycling operations form a minimum credit requirement, without which, an asset cannot achieve more than a 2 Star rating out of a possible 6 – however within the Industrial and Logistics (I&L) sector, the property owner does not have operational control for waste and recycling; the responsibility lies with the customer.

The Solution

In collaboration with ESR’s ESG and Marketing teams, BC Consulting created a practical guide on improving waste performance – tailored for the I&L sector. 

The content approach was created based on BC Consulting’s: 

• Experience in designing and improving waste systems in I&L properties
• Knowledge of the waste and recycling industry
• Expertise in packaging – the most prevalent stream in the sector
• Skills in contract procurement

 Overlayed with an understanding of landlord – customer dynamics, and ESG strategy.

The guide covers relevant aspects of an effective waste program, for operational people, including site setup, collecting data, setting targets, working with waste and recycling collection contractors and with site staff.

 To support the guide’s rollout, direct engagement with ESR’s Asset Management team built a shared understanding of I & L’s waste challenges and the role the guide would play in supporting improved outcomes.

The result

ESR now has a practical, professionally designed guide that supports their I&L customers and Asset Management staff to improve waste performance.

The guide also supports ESR’s ability to demonstrate proactive action in addressing Green Star Performance v2 requirements.

In 2025, ESR was able to achieve a strong first-year average rating of 3-stars, classifying as 'Good Practice'.

ESR was the first major property group in the Australian I&L sector to achieve an average portfolio rating of 3-stars for Green Star Performance v2.

The Guide is available on ESR’s website.