ESG Update

Property for Industry Limited
15 March 2022
Thanks for joining us. The meeting will start at 11am.
ESG Update.

CRAIG PEIRCE
CHIEF FINANCE AND
OPERATING OFFICER
SARAH BEALE
HEAD OF SUSTAINABILITY
AND OPERATIONS
SIMON WOODHAMS
CHIEF EXECUTIVE
OFFICER
Introductions.

01.PFI’S ESG STRATEGIC FRAMEWORK
02. 2021 HIGHLIGHTS
A deeper dive into:
▪Climate-related (TCFD) disclosures
▪HVAC system replacement programme
▪Managing the indirect impacts of developments
and refurbishments
03. 2022 ESG PROGRAMME OVERVIEW
04.Q&A
Agenda.

PURPOSE
PFI generates income for investors as professionallandlords to the industrial economy, generating prosperityforNewZealand
VISION
PFI will be one of New Zealand’s foremost listed property vehicles.Ourmeasureswillbeperformance,quality,scaleandreputation.
ESGPRIORITIES
Leadership—Strategy—Transparency—DiversityandInclusion—Wellbeing—Community—Environment—Climate
STRATEGICPILLARS
Health,safetyandwellbeing—Resourceefficiency—Long-termthinking
STRATEGICTHEMES
Takingcareofourteam—Lookingafterourtenants—Responsiblepropertyownership—Deliveringforourinvestors
PFI ESG Strategic Framework.

PFI ESG Programme Governance.
ESG MANAGEMENT MEETINGSBOARD OVERSIGHT
▪Monitor ESG trends and regulations
▪Make decisions on our ESG programme
▪Monitor progress on our ESG programme
▪Quarterly reporting to the Board on ESG
matters

2021 Sustainability Highlights.
▪Replaced HVAC systems containing ozone-depleting gases at 12
properties.
▪Reduced Scope 1 greenhouse emissions by 34% compared to 2020.
▪Investigated physical climate change risks associated with individual
properties to support TCFD disclosures.
▪Provided our team, tenants and community with support during
COVID-19.
▪Focused on ongoing health and safety continuous improvement.
▪Began working toward Green Star certification for future
developments.
▪Created a sustainable refurbishment framework.

Climate related risks.
2020
2021
▪Completed more
detailed analysis on
our physical risks.
▪Released our
second TCFD
report.
▪Completed our initial
climate risk and
opportunity assessment
(including transition and
physical risks).
▪Released our first
TCFD report.

Additional analysis conducted this year on PFI properties found:
Overall, the PFI portfolio faces low to moderate physical
climate risk exposure.
Four properties have been assessed as having a
heightened exposureto a particular climate-related hazard.
Physical Climate Risk Analysis.

Physical Climate Risk Analysis.
Source: 2021 IPCC 6
th
assessment report -summary for policymakers

Insurance strategy
Climate resilience
strategy
Due diligence for
new acquisitions
Periodic portfolio
assessments
Retaining a strong
balance sheet
Disclosure
Managing PFI’s physical climate risks.

Our strategy is considered to be
relatively robust to climate impacts,
provided that we manage the
risks appropriately.
Impact on PFI’s strategy.

Greenhouse gas emissions.

Addressing our direct impacts.
MILLION
COMMITMENT
$2

Greenhouse gas emissions.

Addressing our indirect impacts.
NEW
DEVELOPMENTS
BROWNFIELDS
OPPORTUNITIES
GREEN STAR
CERTIFICATION
REFURBISHMENT
OF EXISTING
PROPERTIES
CORE GENERIC
HOLDINGS
SUSTAINABLE
REFURBISHMENT
FRAMEWORK

Sustainable refurbishment framework.
Reuse of
existing building
materials
LED
lighting
Efficient water
flow fittings
Reducing
volatile organic
compounds
Replacing HVAC
systems that
use R22 gas
Rainwater
harvesting
Solar panel
installation
Sustainable
landscaping
POSSIBLE INCLUSIONS IN A SUSTAINABLE REFURBISHMENT

▪Recycling or reuse of construction and
demolition waste
▪Replacement of ozone-depleting R22 air-
conditioning units
▪Landscaping that employs sustainable design,
planting and maintenance practices
▪New energy efficient LED lighting throughout
the building
▪Use of sustainable building materials
▪Reuse of existing building materials
3-5 NIALL BURGESS ROAD, MT WELLINGTON (PRIOR TO WORKS)
Sustainable refurbishment case study.

2022 ESG programme overview.
▪Continue to phase out R22 gas
within PFI’s operational control
R22 REPLACEMENTS
▪Simplify our ESG strategic
framework and better reflect the
interaction with our business strategy
STRATEGY REFRESH
▪Work toward Green Star certification
for upcoming developments,
including 30-32 Bowden Road
GREEN STAR
▪Apply PFI’s Sustainable
Refurbishment Framework for major
refurbishments
SUSTAINABLE REFURBISHMENTS

▪First solar installation
▪Health, safety and wellbeing continuous improvement
▪Donations and volunteering
▪Seismic upgrades
▪Corporate Governance Manual review
▪New Green Star corporate office
2022 wider ESG programme.