Picton Property Income Limited Sustainability Report 2022

Environmental Focus

Introduction

Stakeholder Engagement

Governance

Appendix

Net zero carbon

This year we have been focused on two key projects to help us address the issue of climate change adaptation and mitigation. Firstly, we have developed and published our net zero carbon pathway, and we have also carried out an assessment of climate-related risks relevant to our business, and how we identify and manage these.

We have committed to be net zero carbon for our operational and embodied emissions by 2040. We have developed our pathway so that it aligns with the Better Buildings Partnership Net Zero Pathway Framework and the UK Green Buildings Council’s net zero carbon hierarchy. By 2040 all operational emissions arising from our portfolio will be reduced as much as possible through energy efficiency measures and the use of renewable energy, with any residual emissions offset. From 2040 onwards, all completed refurbishment projects will have reduced their embodied carbon as much as possible, with any residual emissions offset upon practical completion. We have defined our portfolio’s baseline carbon footprint, using 2019 as the most representative recent year, to map the emissions reductions required to meet our 2040 target. As with similar

property companies, the majority of our emissions (76%) relate to the energy consumption of our occupiers. Although not included in the baseline year assessment, embodied carbon associated with refurbishment activity has been projected for future years and is a key part of our commitment. We will continue to implement energy efficiency measures across the portfolio in order to meet energy intensity targets. We will also investigate on-site renewable energy opportunities and procure remaining energy requirements from high-quality renewable sources. For refurbishment projects we will employ circular economy principles, so reducing waste and demand for raw materials by keeping resources in the value chain for as long as possible. Our target is to reduce emissions on major refurbishments to 300 kgCO 2 e/m 2 . Finally we will source high quality carbon offsets, aligned with the Oxford Principles for Net Zero

Aligned Offsetting. We have also become a signatory to the Better Buildings Partnership Climate Commitment. We have also carried out an assessment of the physical and transition risks most relevant to the business, and undertaken a review of our procedures for identifying and managing those risks.

Read more in our TCFD Statement in our Annual Report on pages 53-57

Visit our website for more information and to download our pathway to net zero carbon