Macquarie University is already widely recognised for its commitment to sustainability.

Most recently, you might recall that the University was placed 39th in the world overall – as well as first for Life Below Water and fourth for Clean Water and Sanitation – in the Times Higher Education Impact Rankings, 2023. These are truly remarkable achievements and fitting recognition of many years of hard work to have a meaningful impact on the United Nations Sustainable Development Goals (SDGs) and improve sustainability on campus.

Now, the University has reached a new sustainability milestone by establishing a five-year sustainability-linked loan (SLL) framework.

Sustainability-linked loans incentivise sustainability performance by linking interest margins to pre-agreed social and environmental key performance indicators (KPIs).

Macquarie’s SLL framework, integral to the successful refinance of $450 million of bank facilities, is linked to six KPIs – an accomplishment in itself. Most loans of this nature are typically linked to one, two or a maximum of three areas. The University was determined to do better. And I am confident it has.

This facility is the largest of its kind for the higher education sector in Australia.  

Uniquely, the University has committed that all savings made over the life of the facilities will be directed to disadvantaged students through scholarships.

The University is always looking to push boundaries and be a market leader in sustainability, and that is what we have achieved with our KPIs.

KPI 1: Scope 1 and Scope 2 emissions

The University is proud to have achieved a 90 per cent reduction of Scope 1 (direct emissions on campus) and Scope 2 (emissions from using electricity on campus) since 2019.

Still, the continual reduction of these emissions is important. That is why Macquarie has committed to further reductions in Scope 1 emissions by 2028 (from the 2022 baseline) and a reduction of Scope 2 emissions to zero by 2024.

KPI 2: Scope 3 emissions 

Scope 3 emissions include all other indirect emissions that occur in the University’s upstream and downstream activities, and are generally much harder to measure and influence than Scope 1 and Scope 2. The University’s KPI is to measure and set a reduction target for these emissions by 2026.

KPI 3: Biodiversity

The University’s biodiversity target, only the second of its kind in Australia, primarily focuses on the continued restoration of the critically endangered Turpentine–Ironbark Forest located on the northwest corner of campus. It is hoped the restoration will provide habitat for native bird species, including the powerful owl and the superb fairy-wren.

KPI 4: Student and staff training

Diversity, inclusion and sustainability matter to Macquarie staff and students. This KPI will help strengthen these priorities within our community, focusing on Manawari training and training in the SDGs.

KPI 5: Gender equality 

The University has aligned KPIs with the achievement of the Workplace Gender Equality Agency’s (WGEA) ‘40:40 Vision’ by 2030 at the senior academic level and in academic recruitment. The WGEA’s 40:40 Vision aims to achieve a minimum of 40 per cent women and 40 per cent men in leadership positions.

KPI 6: Widening participation in STEM 

This target focuses on expanding the Junior Science Academy (JSA) enrolment capacity for under–represented groups. The JSA already features a deaf and hard-of-hearing program for children, established in collaboration with the Australian Hearing Hub.

Under the SLL framework, this program will be expanded and a new program for blind and visually impaired children will be created. Plans also include increasing the number of JSA enrolments from girls to encourage women in STEM.  

These KPIs are intentionally broad by design. We aimed to challenge existing parameters, view this opportunity from a different perspective, and hopefully inspire other organisations to assess their environments and embrace innovation.