Picton Property Income Limited Annual Report 2021

Environmental focus

What we have done this year ӱ Carried out ESG audits at four office properties ӱ Improved our GRESB score and achieved two Green stars ӱ Maintained EPRA Gold award for sustainability reporting ӱ Exceeded 2016 five-year target with 57% reduction in Scope 1 and 2 GHG emissions ӱ Embarked on developing our net zero carbon pathway ӱ Undertaken biodiversity surveys at a number of properties ӱ Joined the Better Buildings Partnership What we will do next year ӱ Aim to improve GRESB score further ӱ Define our pathway to net zero carbon ӱ Carry out a further four ESG audits ӱ Continue to build on our approach to biodiversity ӱ Continue to improve data capture and increase coverage across our portfolio Net zero carbon pathway This year we have completed the review of our sustainability priorities and material issues. A key recommendation regarding one of those material issues, Climate Change Adaptation and Mitigation, was to start the journey towards net zero carbon and assess its feasibility. This is a key challenge facing the real estate sector, with many companies beginning to publish their own net zero carbon pathways. A related issue is to develop our reporting under the Task Force on Climate-related Financial Disclosures recommendations. We have recognised that developing our net zero carbon pathway will require us to partner with a third party specialist, and are currently working through the selection process. We intend to define our net zero carbon pathway and targets in

line with the Better Buildings Partnership framework during the course of this year, ESG audits During 2020 four ESG audits were undertaken at Queens House, Glasgow, Metro, Manchester, 50 Farringdon Road, London and Tower Wharf, Bristol. A number of recommendations were made at each site for improvements which would result in energy and cost savings. The majority of these have now been actioned with the resulting payback starting in some cases from as soon as three months from completion of the works required and an overall annual saving of £60,000. A further four surveys at 50 Pembroke Court, Chatham, Atlas House, Marlow, Longcross, Cardiff and 401 Grafton Gate, Milton Keynes have been commissioned for 2021 and we intend to review the recommendations of these and undertake further improvements where appropriate. Biodiversity During 2020 we have undertaken biodiversity surveys across our portfolio at properties with landscaped areas and as a result measures such as the installation of bug hotels, bird boxes and changes to planting regimes have been put into effect at several sites including Parkbury Industrial Estate,

Radlett, Colchester Business Park, 50 Pembroke Court, Chatham, Tower Wharf, Bristol and Nonsuch Industrial Estate, Epsom. We will be undertaking further surveys across our sites during 2021 and have begun to engage with local wildlife trusts – for example Essex Wildlife Trust in Colchester – to obtain their recommendations on biodiversity measures which could be put into place. Reporting We recognise that it is important to be transparent on sustainability issues, so that our stakeholders can make informed decisions. We continue to report to GRESB and EPRA. For 2020 GRESB introduced a new scoring methodology, which made comparisons with earlier years more difficult. Our score for 2020 was 65, and we achieved two Green Stars, up from one Green Star in 2019. Our overall score was four points ahead of 2019. We were also ahead of our peer group average. We have identified areas where we can improve our score further in future.

For the second year running we achieved a Gold award under the EPRA Sustainability Best Practices Recommendations.

55

Powered by