Picton Property Income Limited Annual Report 2024

Governance

Financial Statements

Additional Information

Strategic Report

Measuring and reducing operational carbon Over the year, we have been introducing energy efficiency measures across the portfolio to help reduce occupier energy consumption, including: / Improving energy efficiency during refurbishment works, in line with our updated refurbishment guidelines / Continuing to decarbonise assets through removal of gas fuelled systems / Continuing to install on-site renewables / Increasing our use of an environmental data management system to include Scope 3 and monitoring of emissions at a more granular level / Engaging with occupiers to encourage sharing of data, enhancing our ability to measure and manage emissions

Maximising off-site renewable procurement Within our portfolio, currently 100% of landlord procured electricity is REGO backed (Renewable Energy Guarantees of Origin). When our electricity contracts expire, we will seek to procure high quality renewables in line with the UKGBC guidance on renewable energy procurement. We seek to follow three main criteria on renewable energy procurement. It must be from renewable non- fossil fuel energy sources; create additional capacity in the grid; and have exclusive ownership and claims of the energy attributes.

/ Continuing to include green lease clauses within our leases, with 57 completed this year Maximising renewable opportunities

To reduce the carbon footprint of our operational emissions, we are focusing on increasing our on-site renewable energy opportunities across our assets. This year, we have installed five schemes and undertaken a further five renewable energy feasibility studies to identify asset-specific opportunities across the portfolio.

2022

2023

2024

2025

...

2040+

Conduct whole life carbon assessments for all major refurbishments and fit-outs

Implement software to track embodied carbon from ‘in use’ standing assets

Embodied Carbon

Begin to quantify emissions related to procurement of goods and services to inform targets and related actions

Apply refurbishment guidelines to all new developments, refurbishments and fit-outs

Integrate findings of net zero audits into longer-term asset plans

Identify high quality renewable energy procurement options

Undertake net zero audits across the portfolio and establish asset specific carbon reduction plans

Operational Carbon

Identify priority assets

Conduct renewable feasibility studies for assets to estimate renewable power generation potential

Implement on-site renewables, prioritising most cost-effective sites

Identify a cost-effective solution for monitoring the energy consumption of occupiers

Liaise with key occupiers to understand their energy reduction plans and to investigate joint initiatives

Occupier Engagement

Integrate energy and carbon clauses into new and renewed leases, including access to energy data where energy procured directly by occupiers

Create a detailed occupier engagement plan

Install sub-metering for all energy recharging to understand occupier usage

Develop a carbon offsetting strategy

Consider internal carbon price and transition fund

Offset residual carbon resulting from all operations

Embed net zero criteria into pre-acquisition due diligence process

Net Zero Governance

Annually assess progress towards net zero commitment, including exploring additional actions towards net zero

Develop a data and target monitoring process

Future initiatives

Underway/Completed

Picton Property Income Limited / Annual Report 2024

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