Picton Property Income Limited Annual Report 2023

Strategic Report


Financial Statements

Additional Information

TCFD Statement

Managing and reporting climate- related risks

We are committed to proactively managing our climate- related risks and reporting climate-related financial information publicly and transparently for our stakeholders. Here we disclose the climate-related risks and opportunities we have identified to the business and outline our overarching risk management approach in accordance with the Task Force on Climate-related Financial Disclosures’ (TCFD) recommendations. Complying with the LSE Listing Rules published by the Financial Conduct Authority in 2022, all disclosures in this report comply with all 11 TCFD recommendations and recommended disclosures.

Recommendation Governance The Board’s oversight of climate-related risks and opportunities


The Board has ultimate responsibility for climate-related risk oversight and management, including setting the Group’s risk appetite that defines the limits of the Group’s activities and reviewing the Group’s risk matrix and risk radar. As climate-related risks have been identified as a principal risk to the business, they are directly overseen by the Board and actively monitored across all levels of the business. Our governance structure (see page 94) facilitates continuous oversight by the Board as its members also chair our Board and Management Committees, which have formalised climate-related responsibilities. The Audit and Risk Committee is responsible for updating the Board on the current and planned actions being taken to mitigate material climate-related risks to the Group. In adopting the Risk Management Policy, the Audit and Risk Committee is also formally responsible for identifying, managing and overseeing climate-related risks and wider sustainability issues facing the Group, using qualitative and quantitative metrics as appropriate, and for reviewing the Risk Management Policy at least annually, revising it as necessary to support our agile risk management approach. The Committee normally meets three times each year and the Chair, Mark Batten, is responsible for reporting the Committee’s findings and recommendations to the Board after each meeting, including updates on the Group’s overall risk appetite, risk profile and risk strategy, accounting for the current and prospective macroeconomic and financial environment, and appropriate climate-related scenarios. The Responsibility Committee, chaired by Andrew Dewhirst, meets regularly to consider all aspects of sustainability and is formally responsible for identifying and reporting any emerging climate-related risks and opportunities. The Committee ensures compliance with all relevant ESG standards and legislation and provides regular updates to the Executive Committee. The Committee is also responsible for overseeing the Climate Action Working Group and our progress against the net zero carbon pathway. The Executive Committee, chaired by Michael Morris, is formally responsible for the day-to-day operational application of the Risk Management Policy, including identifying, managing and monitoring all climate-related risks. The Committee ensures that physical and transition climate- related risks are evaluated and recorded in the risk matrix and risk radar on a regular basis, and as appropriate, it escalates risks to the Audit and Risk Committee and Board. The Executive Committee maintains day-to-day management and oversight of all risks identified and their mitigating activities, and reports recommendations to the Audit and Risk Committee or the Board for the Risk Management Policy. In response to recommendations provided through a detailed climate risk governance gap analysis assessment, conducted in collaboration with third-party sustainability consultants, we updated and formalised climate-related issues into our governance structures and risk management procedures at all levels of the business. This will ensure that our governance, oversight and management of climate- related issues is robust, enhancing our ability to respond and adapt to climate change challenges. We have also established a Climate Action Working Group in response to the increasing environmental focus within our business. The two key areas of focus for the Climate Action Working Group are mitigating the impact of climate change on our portfolio and delivering against our commitment to net zero carbon. All members of the Responsibility Committee sit on the Climate Action Working Group, alongside other members of the team from across the business. The Responsibility Committee maintains oversight of the Climate Action Working Group and is responsible for progressing all of our sustainability priorities. The Climate Action Working Group meets at least bimonthly to discuss and agree actions and associated progress.

Management’s role in assessing and managing climate-related risks and opportunities

A detailed overview of our Governance structure can be found on page 94

 Picton Property Income Limited  Annual Report 2023


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