Sustainability
Our approach
We view sustainability as an integral part of our strategy to pursue strong financial outcomes.
Our sustainable investment policy guides our approach across four key areas:
We consider financially material sustainability risks and opportunities in our investment processes as part of our disciplined approach to risk management. Our investment professionals integrate financially material sustainability considerations and assess our borrowers’ direct revenue exposure to high-risk activities during due diligence and consider indirect exposures where relevant.
Beyond revenue exposures, we assess environmental, labour and human rights, and governance issues related to regulatory, litigation, compliance and reputational risks. We also apply negative screens to exclude investments with significant sustainability risks.
Many real-world impacts associated with our business stem from our sponsors’ actions and the real estate projects we finance. We endeavour to engage with sponsors and stakeholders to improve sustainability performance and manage financially material sustainability risks across our portfolio.
As part of our borrower engagement framework, we aim to:
- Integrate financially material sustainability considerations into lending practices and sponsor relationships
- Encourage sponsors to improve their sustainability practices and disclosure
- Focus on sustainability issues that most affect financial returns and project performance
- Share knowledge and contribute to industry-wide progress on sustainability challenges
We share progress on our sustainable investment strategy through periodic investor updates, voluntary sustainability disclosures and public reports. For certain funds and strategies, we provide sustainability data to clients through regular or ad hoc reporting.
As a Group 3 entity under AASB S2, we are preparing for mandatory climate-related financial reporting commencing in FY28.
Capital is increasingly shifting towards real assets that will prosper in the transition to net zero emissions. We partner with clients to develop sustainability-related products, strategies and mandates that satisfy their financial and sustainability preferences, promoting sustainability objectives and incorporating sustainability-linked provisions into transaction structures as appropriate.
Climate Change
The built environment accounts for approximately 5% of Australia’s direct emissions (Scope 1), almost half of its electricity generation emissions (Scope 2), and further embodied emissions in building materials and construction (Scope 3)1. Decarbonising the sector is challenging due to its reliance on carbon-intensive materials and the complexity of measuring and tracking Scope 3 emissions across supply chains.
We have a net zero by 2050 greenhouse gas emissions reduction target. We are taking a pragmatic, phased approach, beginning with what we can control. We have achieved carbon neutral certification from Climate Active for our business operations (Scope 1 and Scope 2 emissions) since FY21.
Our next priorities include a Scope 3 financed emissions assessment and developing interim targets with a credible transition plan. This work is expected to commence in FY27, allowing us to integrate critical policy inputs and to align with mandatory climate-related reporting under AASB S2.
Modern Slavery
Australia’s property and construction sectors rely on vast supply chains, subcontracting and migrant labour, increasing the risk of modern slavery. High-risk factors include raw materials sourced from vulnerable regions and the manual nature of work2. Identifying and mitigating the risk of modern slavery in commercial real estate operations and supply chains is critical to responsible investment.
We have a Modern Slavery Policy and framework which governs our approach to assessing modern slavery risk across supply chain and portfolio. We have also implemented awareness training for our people to support the program’s integration into our procurement practices and investment decision-making.
Sustainability Advisory Committee
Our approach to sustainability is supported by a suite of policies and operational procedures. MaxCap’s Sustainability Advisory Committee supports the advancement of our sustainability approach, with overall accountability sitting with MaxCap’s Board of Directors.
Industry Engagement
We are signatories to and members of the following associations, which support sustainability integration into our investment decision-making, and provide access to industry frameworks and best practice guidance.
MaxCap is certified as a carbon neutral organisation by Climate Active for our business operations.
Our operations are carbon neutral with mostly Australian Carbon Credit Units.
Sustainability case studies
1 Treasury and Department of Climate Change, Energy, the Environment and Water (September 2025) Built Environment Sector Plan. ‘Impact metrics for addressing modern slavery in property and construction’, Property Council of Australia, June 2025.
2 ‘Impact metrics for addressing modern slavery in property and construction’, Property Council of Australia, June 2025.