Picton Property Income Limited Sustainability Report 2022

Environmental Focus

Introduction

Stakeholder Engagement

Governance

Appendix

Energy efficiency

An increase in consumption was to be expected given the increased occupier activity following the easing of Covid-19 restrictions. However, the projects we have implemented over recent years to improve efficiency across our portfolio, have meant these increases in consumption have been lower than would otherwise be the case. We anticipate next year’s consumption figures will show a reduction as the portfolio occupancy levels normalise and we continue to see the benefit of implementing improvement measures. For example, this year we have undertaken energy saving projects at Farringdon Road, London, Longcross, Cardiff and Grafton Gate, Milton Keynes, key elements of which have included: — Replacement of air conditioning systems — Repairs to existing air conditioning systems — Installation of new LED lighting and PIR motion sensors — Replacement of water heaters — Refurbishment of WCs and kitchens with energy and water efficient systems Our energy intensity across our portfolio increased by 7%, with a like-for-like increase of 9%. Over the next year we expect to see this figure reduce as occupancy levels normalise and we continue to implement our portfolio strategy.

We have made large improvements in occupier data coverage, increasing overall data coverage across the portfolio to above 70%. The aim is to reach 100% coverage of our portfolio and we continue to work with our occupiers and data providers to achieve this. Occupier data is excluded from intensity, renewable energy and estimated metrics as it is a measure that we currently have limited ability to control. All our large suppliers work from automatic meter reads, with any void unit meter data being aggregated to an asset level. This means that 100% of landlord controlled data is meter read and not estimated. We are working towards rolling out automatic meter reads across the whole portfolio to increase coverage and reliability of our data and reporting accuracy. Further energy efficiency improvements are being developed this year, at Pembroke Court, Chatham and Colchester Business Park, Colchester, where we plan to remove gas based systems and replace with electric heating and cooling. We have developed a three-year plan to meet our energy reduction targets, including audits, occupier engagement programmes and workshops. Our focus is primarily on office locations, but we will also be working with our occupier controlled sites to help reduce their operating costs and the impacts on our Scope 3 emissions.

In absolute terms, in the year to December 2021, there has been a 6% increase in electricity consumption (7% increase like-for-like) and a 9% increase in fuel use for landlord controlled supplies (10% increase like-for-like).