Picton Property Income Limited Sustainability Report 2022

Introduction

Environmental Focus

Stakeholder Engagement

Governance

Appendix

Global trends driving sustainability continued Pandemic recovery The UK Government’s vaccination programme was extended to increase protection against the Omicron variant in late-2021 and by Spring 2022 all coronavirus related restrictions had been lifted. UK Gross Domestic Product (GDP) recovered to its pre-pandemic level in March 2022 following four consecutive quarters of economic growth.

Flexible working practices are now more commonplace and have removed some of the barriers to entering the workplace faced by those with childcare and other caregiving responsibilities, creating more diverse and inclusive environments. In the built environment there is greater emphasis placed on quality space, ventilation, and wellness and occupier amenities. Although normal life has resumed for the majority, there are legacies of Covid-19 that will be felt for years to come. Many social inequalities and injustices were amplified by the pandemic, from access to healthcare, education and Government support. Some of the consequences of isolation, home schooling and an overburdened NHS are still being felt. Covid-19 vaccines were developed at record speed, but their distribution was largely concentrated in developed, wealthier countries. Without vaccine equity globally, the pandemic continues to take its toll on the world’s poorer, more vulnerable populations. Furthermore, without vaccine equity the risk of future problematic variants and health outbreaks is heightened for all countries.

Climate change Extreme weather events resulting from climate change displace vast numbers of people globally each year, from flooding in the UK to storms and cyclones in the Asia-Pacific region and forest fires in Australia and California. A recent survey conducted by the World Economic Forum identified climate action failure as the number one global risk over the next ten years. Building on the achievements of COP21 and the signing of the Paris Agreement in 2015, COP26 hosted by Glasgow in November 2021 made further progress

Achieving net zero carbon must be demonstrably fully embedded within corporate strategy. It is no longer considered acceptable to simply mention reporting in line with the Task Force on Climate related Financial Disclosures (TCFD) or produce a pathway to net zero without demonstrating that a fully comprehensive plan of action is in place, incorporating embodied and operational carbon emissions.

and increased public awareness of climate change risks and consequences. There is wider acceptance that we need to transition to a low carbon economy. Residential and commercial property accounts for around 40% of total global energy use, therefore the industry has a key role to play in limiting emissions and the fight against climate change. Tackling this issue has been placed at the forefront of real estate company agendas. Momentum is clearly building within the industry towards more climate action and many companies have published their net zero commitments and pathways.

Read more on our response to climate change on page 15