Picton Property Income Limited Annual Report 2021

Strategic Report Being Responsible continued

Greenhouse gas emissions

Scope 3 Scope 3 emissions include those of our occupiers, and this is the largest Scope 3 element. Data collection this year has been severely hampered by the pandemic, as occupiers have been unable to access buildings, and so the reported figures are heavily based on estimates. We will update these when we have received more accurate data. As expected, other Scope 3 emissions have also declined this year, with water consumption and waste disposal falling by 47%, and business travel by 76%. Methodology We have reported on all the emission sources required under the core requirements of EPRA’s ‘Best Practices Recommendations on Sustainability Reporting’ 2020, and have voluntarily disclosed business travel, occupier and own premises consumption (Scope 3) emissions. An operational control approach has been adopted and all of our properties are included. Figures presented are absolute for utility and waste consumption and relate only to landlord-obtained utilities and waste removal. Occupier-obtained consumption is included where possible. We have calculated and reported our emissions in line with the GHG Protocol Corporate Accounting and Reporting Standard (revised edition) and used emission factors from UK Government’s GHG Conversion Factors for Company Reporting 2020. Where data was unavailable in kilogrammes or tonnes for waste, we used average volumes to convert to tonnes.

Intensity measurements are based on the individual property’s Gross Internal Area (GIA), regardless of the specific area served by the supply. This is an accurate way of covering 95% of our consumption but will be less useful for our industrial vacant units; due to the comparatively low consumption and large floor areas typically associated with vacant industrial units. We are continually improving the reporting process so that we can produce increasingly useful normalisation and intensity metrics. We have continued to voluntarily report on Scope 3 vehicle emissions. Vehicle emissions were calculated using our vehicle expenses reports and the vehicle emission factors from the UK Government GHG Conversion Factors for Company Reporting 2017. We have included occupier and own premises consumption within the Scope 3 emissions, using emission factors from UK Government’s GHG Conversion Factors for Company Reporting 2020. Year-on-year, we will continue to update previous reported figures if applicable to remove estimates and ensure actual data is captured and reported.

The table below provides our GHG emissions covering the last three years. Where it states ‘N/A’, this is because data was not previously collected, calculated or available. In our 2021 Sustainability Report we detail our GHG emissions for the last five years. In 2016 we set a five-year target to reduce our Scope 1 and Scope 2 GHG emissions by 20%. Our overall reduction was 57%. Scope 1 Our absolute Scope 1 emissions fell by 31% compared to the previous year to 799 tCO 2 e. Similarly our Scope 1 intensity also fell by 30%. This was largely due to the impact of the lockdown restrictions on the occupancy of buildings during the year. Scope 2 Our absolute Scope 2 emissions have decreased by 35% this year, to 1,479 tCO 2 e, and our Scope 2 intensity also fell. As with Scope 1, the emissions reduced because of lockdown restrictions. We are also seeing the benefit of energy efficiency projects completed in the previous year, such as at Atlas House in Marlow. This year some major refurbishment projects have been carried out incorporating further environmental initiatives, including at Stanford Building, and we expect to see the impact of these on our Scope 2 emissions in future.

2021

2020

2019

Absolute GHG emissions (tCO 2 e)

Absolute GHG emissions (tCO 2 e)

Absolute GHG emissions (tCO 2 e)

GHG intensity

GHG intensity

GHG intensity

GHG Scope

(tCO 2 e/m

2 )

Emission source

(tCO 2 e/m

2 )

(tCO 2 e/m

2 )

799 0.004

Combustion of fuel and operation of facilities Electricity, heat, steam and cooling purchased for own use

1

1,166 0.005 1,242 0.006

1,479 0.007

2

2,282 0.010 2,679 0.015

Total Scope 1 and 2

2,278

0.011 N/A 0.002 N/A 0.000 0.000

3,448

0.015 3,921

0.021

1

Business travel Occupier data Office premises Landlord waste Total Scope 3 Total all Scopes

3 3 3 3 3

4

N/A

8

N/A

2,570

3,672 0.004 5,425 0.003

13 28

17

N/A

10

N/A

Landlord water and treatment

53 0.001 13 0.000

55 0.001 26 0.000

7

2,619 0.002

3,759 0.005 5,524 0.004

4,897

0.013

7,207

0.020 9,445

0.025

56

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