Picton Property Income Limited Annual Report 2023

Strategic Report

Governance

Financial Statements

Additional Information

‒ Carrying out a complete audit of all electricity, gas and water meters or sub-meters under our control to ensure that they are all functioning properly and recording consumption accurately. We plan to replace a small number of meters in 2023, which are now obsolete Maximising renewable opportunities To reduce the carbon footprint of our operational emissions, we are focusing on increasing our on-site renewable energy opportunities across our assets. This year we have installed three schemes and undertaken six renewable energy feasibility studies to identify asset-specific opportunities across the portfolio.

Reducing operational carbon Over the year we have been introducing energy efficiency measures across the portfolio to help measure and reduce occupier energy consumption, including: ‒ Developing an occupier engagement plan to ensure actions take place in a timely manner and effective cost-sharing mechanisms are introduced ‒ Continuing to include green lease clauses within our leases, with 64 completed this year ‒ Increasing data collection coverage to 85% and implementing a new data management system

Maximising off-site renewable procurement Within our portfolio currently 100% of landlord procured electricity is REGO backed (Renewable Energy Guarantees of Origin). When our electricity contracts expire, we will seek to procure high-quality renewables in line with the UKGBC guidance on renewable energy procurement. We seek to follow three main criteria on renewable energy procurement. It must be from renewable non-fossil fuel energy sources; create additional capacity in the grid; and have exclusive ownership and claims of the energy attributes.

2023

2024

2025

...

2040+

2022

Conduct whole life carbon assessments for all major refurbishments and fit-outs

Implement software to track embodied carbon from ‘in use’ standing assets

Embodied Carbon

Begin to quantify emissions related to procurement of goods and services to inform targets and related actions

Apply refurbishment guidelines to all new developments, refurbishments and fit-outs

Undertake net zero audits across the portfolio and establish asset specific carbon reduction plans

Integrate findings of net zero audits into longer term asset plans

Identify high-quality renewable energy procurement options

Operational Carbon

Identify priority assets

Conduct renewable feasibility studies for assets to estimate renewable power generation potential

Implement onsite renewables, prioritising most cost-effective sites

Identify a cost-effective solution for monitoring the energy consumption of occupiers

Liaise with key occupiers to understand their energy reduction plans and to investigate joint initiatives

Occupier Engagement

Install sub-metering for all energy recharging to understand occupier usage

Create a detailed occupier engagement plan

Integrate energy and carbon clauses into new and renewed leases, including access to energy data where energy procured directly by occupiers

Consider internal carbon price and transition fund

Embed net zero criteria into pre-acquisition due diligence process

Offset residual carbon resulting from all operations

Develop a carbon offsetting strategy

Net Zero Governance

Annually assess progress towards net zero commitment, including exploring additional actions towards net zero

Develop a data and target monitoring process

Future initiatives

Underway

 Picton Property Income Limited  Annual Report 2023

65

Powered by