MCK FY2024 Climate Statement

Millennium and Copthorne Hotels
New Zealand Ltd
FY24 CLIMATE
STATEMENT

3
CONTENTS
Introduction 4
Message from the Board 6
About Millennium & Copthorne Hotels
New Zealand Ltd 7
About this Statement 9
Governance 10
Strategy 14
Risk Management 30
Metrics and Targets 36
Glossary 44
Appendices 50
A. Climate Scenarios 52
B. Greenhouse Gas Inventory 56
C. KPMG Assurance Limited Opinion 64
D. Toi t
ū Certification 70
Cover Image: Copthorne Hotel and Resort Bay of Islands.
Left: Copthorne Hotel Auckland City.
Disclaimer
This document has been prepared by Millennium & Copthorne Hotels New Zealand Limited (MCK) in good faith based
on current knowledge, expectations and intentions and reserves the right to change these in future as new information
becomes available.
Our understanding of climate change is evolving over time. MCK has begun to establish processes to report on the four
pillars of climate-related disclosures set out in the Aotearoa New Zealand Climate Standards. As we continue to improve
how we manage our response to climate change, our forward-looking statements and metrics may change.
This report is based on current expectations, estimates and assumptions and is therefore subject to significant
uncertainties. The risks and opportunities described may not eventuate or may be more or less significant than anticipated.
The detail in this document is not intended as investment, legal, tax or financial advice or recommendation to any person
and must not be relied on as such. All references to $ are to New Zealand Dollars unless otherwise indicated. Percentages
may be subject to rounding.
This document contains climate-related and forward-looking statements and metrics. Forward-looking statements can
include words such as “expect”, “intend”, “plan”, “believe”, “continue” or similar words in connection with discussions of
future operating or financial performance or conditions or climate-related outcomes. The forward-looking statements are
based on the company’s current expectations and assumptions regarding the MCK business, assets and performance and
other future conditions, circumstances and results. As with any projection or forecast, forward-looking statements are
inherently susceptible to uncertainty and to any changes in circumstances. MCK’s actual results may vary materially from
those expressed or implied in the forward-looking statements. Past performance is no indication of future performance.
CONTENTS
CONTENTS
INTRODUCTION
GOVERNANCE
STRATEGY
RISK MANAGEMENT
METRICS AND TARGETS
GLOSSARY
APPENDICES
2MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT

554MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
INTRODUCTION
Left: Millennium New Plymouth.

67MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
This is our second climate-related disclosure report, and we
are pleased to have made significant progress since last year.
We appointed our first dedicated Sustainability Manager in late
2024, in recognition of the importance of sustainability from a
strategic point of view for the business. MCK is looking to take
action to be more sustainable across its business, reducing its
climate risk and emissions, driving transparent reporting and
complying with regulations with regard to sustainability across
our hotel portfolio.
MCK reported an uplift in revenue in 2024 and a continued
improvement in profit before tax despite the weaker tourism
and property markets seen during the year. This improvement
was mainly driven by continued positive growth in the New
Zealand Hotel business. Our results demonstrate the resilience
of our business and from a strategic perspective, MCK is now
nearing the end of our ‘Revive stage’ and expects to move
into a ‘Thrive stage’ in late 2025.
We recognise that reporting on and delivering tangible
outcomes for sustainability as well as transparent reporting
are increasingly in demand from regulators, domestic
and international travellers, our corporate customers and
our investors.
MCK is part of a global company and network of hotels with an
emphasis on supporting positive local environmental outcomes.
In 2024 we joined the global Sustainability Team of our parent
company to advance action on sustainability.
We are still early in our journey to measure and reduce our
emissions. This year has seen an emphasis on improving
internal procedures for data gathering and reporting. We
have also established foundational processes for informing
decision-making and embedding sustainability across the
business. Work is underway to develop our Sustainability
Strategy and ESG framework.
We completed our second year of measuring and reporting
on our carbon footprint. This included obtaining external
assurance and restating our 2023 base year. In 2024 we
again achieved Toit
ū Carbon Reduce certification for our
Greenhouse Gas Inventory and recertified our base year.
We commenced measuring our indirect sources of emissions in
preparation for next year’s reporting. We conducted our first
staff travel survey, started working with our franchised and
managed hotels to source data, and started capturing spend-
data for a range of products and services used by the business.
During 2024 we began work on a portfolio-wide assessment
of our hotel assets’ exposure to physical climate risk, and our
business transition climate risks and opportunities. This shows
that our properties are resilient to a wide range of climate
hazards in the short to medium term. This work will support
us in continuing our transition planning in 2025.
In 2025, we will see a continued focus on data improvement,
setting targets, transition planning and engaging with our
material suppliers.
This Climate Statement contains our FY24 climate-related
disclosures in compliance with the Aotearoa New Zealand
Climate Standards issued by the New Zealand External
Reporting Board (XRB). The adoption provisions we are
utilising this year are found on page 9.
This Climate Statement is for MCKs 2024 financial year
1 January 2024 to 31 December 2024 and is authorised for
issue for and on behalf of the directors on 28 April 2025.
Summary of MCK’s purpose, value chain and business
MCK’s primary businesses is the ownership and operation
of hotels in New Zealand.
1
We have been established in New
Zealand for 30 years and our hotel brands include Millennium,
Grand Millennium, M Social, Copthorne and Kingsgate.
In 2024, the MCK portfolio consisted of 18 hotels across
New Zealand from the Bay of Islands through to Te Anau.
2

Our hotels are located in New Zealand’s key gateway cities
and we take pride in hosting a wide variety of conferences
and events at our properties.
Our purpose
Your best time and place – right here, right now.
Our purpose is to deliver memorable experiences for our
guests whilst purposefully contributing to our communities.
Our mission is to become the hotel chain which everyone
recommends to their family, friends and colleagues. We pride
ourselves on our hospitality and levels of service no matter
which of our hotels you stay at.
MCK is conscious that our shareholders and stakeholders
want confidence that the business is prepared for the future
and may wish to understand the impact the business has on
the environment. This Climate Statement provides additional
transparency and confidence to our shareholders, employees
and stakeholders.
We hear from our guests and stakeholders more and more
that they wish to ensure that their stay has a minimal impact
on the environment, and so we will increasingly take action to
demonstrate our commitment to reducing our emissions and
impact. Delivering on our purpose requires us to step up to
minimise our environmental and social impacts, and work to
embed sustainability principles throughout our operations.
Globally, the hotel sector accounts for approximately 1% of
all carbon emissions.
3
In New Zealand, the accommodation
and food sectors produce 84.11ktCO
2
e with the majority of
these emissions originating from energy and fossil fuel use.
4
Climate impact is expected to affect the hospitality and
accommodation sectors in a variety of ways. For example, hotels
use high levels of water and energy in their daily operations
and use significant amounts of materials in their construction
and refurbishment. It is therefore imperative to review our
operations to see how improvements can be incorporated across
our businesses. Our locations, particularly in popular tourist
destinations and coastal areas are more likely to be affected by
climate change and sea level rise. Past weather events have also
affected our operations with impacts to the hotels themselves
as well as access to and from them.
MESSAGE FROM
THE BOARD
ABOUT MILLENNIUM
& COPTHORNE HOTELS
NEW ZEALAND LTD
Colin Sim
Chairman
Stuart Harrison
Managing Director
1. Millennium & Copthorne Hotels New Zealand Limited is a majority owned subsidiary of CDL Hotels Holdings New Zealand Limited which
is a wholly owned subsidiary of Millennium & Copthorne Hotels Ltd in the United Kingdom. The ultimate parent company is Hong Leong
Investment Holdings Pte Ltd in Singapore.
2. This total includes two franchise hotels – Millennium Hotel & Resort Manuels Taupo, Copthorne Hotel & Resort Solway Park Wairarapa.
3. UNWTO (2008), Climate Change and Tourism – Responding to global challenges,
https://www.unwto.org/archive/global/news/2011-08-16/climate-change-and-tourism-responding-global-challenges
4. https://www.eeca.govt.nz/co-funding-and-support/products/hotel-decarbonisation-pathway
5. This total excludes two franchise hotels – Millennium Hotel & Resort Manuels Taupo, Copthorne Hotel & Resort Solway Park Wairarapa.
StrategyPlanningPurchasingOperatingDelivering
Long-term investment
and growth targets.
Ongoing hotel facility and
service improvements.
Equipment, materials,
amenities and food.
Operating hotels, with
onsite conference facilities
and restaurants 16 Hotels,
5

providing 2141 rooms,
16 restaurants, over 1,000
staff, and 532,622 room
nights sold in 2024.
Delivering quality
accommodation,
restaurants and
guest services.
Our value chain
Grand Millennium
Millennium Hotel
M Social
Copthorne Hotel
Kingsgate Hotel
CONTENTS
INTRODUCTION
GOVERNANCE
STRATEGY
RISK MANAGEMENT
METRICS AND TARGETS
GLOSSARY
APPENDICES
INTRODUCTION

9
ABOUT THIS
STATEMENT
6. Note this differs from MCK’s 2023 disclosures, as we updated our organisational
boundary in 2024 to include our managed hotels.
7. Addressing CDI’s climate risks and opportunities is delegated to the CDI Board
and management. Although not material, CDI emissions are reported as part
of the GHG Inventory organisational boundary.
8. The CDI FY24 Climate Statement can be found at:
https://cdlinvestments.co.nz/corporate_profile/
9. Primary users are defined as MCK’s current and future investors, lenders
and other creditors.
Adoption provisionMCK response
2Anticipated financial impacts
MCK has elected to use this provision for exemption in our first and second reporting
periods. Preparation is underway and we intend to include this in FY25, our third
reporting period.
4Scope 3 GHG emissions
In 2024 MCK elected to disclose FY24 scope 3 Greenhouse gas (GHG) emissions in some
categories, as required by the Toit
ū programme, where quantifiable data is available.
This provision applies where data was not yet available in our second reporting period.
We will report more fully in FY25 our third reporting period.
5
Comparatives for Scope 3
GHG emissions
MCK has elected to use this provision for exemption in our first and second reporting
periods. We intend to provide one year of comparative information for scope 3 GHG
emissions in FY25, our third reporting period.
6Comparatives for metrics
MCK has elected to use this provision for exemption in our first and second reporting
periods. This permits MCK to provide one year of comparative information for each
metric in FY24, our second reporting period.
7Analysis of trends
MCK has elected to use this provision for exemption in our first and second reporting
periods. MCK does not provide analysis of the main trends evident from a comparison
of each metric from previous reporting periods to the current reporting period in FY24,
our second reporting period.
This Climate Statement was published on April 28, 2025 and
made available for primary users
9
from: https://mckhotels.co.nz/
investors/climate-statements and has been authorised for issue
for and on behalf of the directors.
Please contact sustainability.nz@millenniumhotels.co.nz
for any questions about this Climate Statement.
• Two franchised hotels – Millennium Hotel & Resort Manuels
Taupo and Copthorne Hotel & Resort Solway Park Wairarapa;
• Development and sale of residential land and leasing
of commercial property in New Zealand (through CDI);
• Management and sale of residential units in Australia
(Zenith Residences, Sydney); and
• Ownership (through a 50-50 joint venture) of a hotel
in Australia (Sofitel Brisbane Central).
Adoption provisions
The disclosures made in this Climate Statement have been
prepared in compliance with the Aotearoa New Zealand Climate
Standards NZ CS 1, NZ CS 2 and NZ CS 3, issued by the External
Reporting Board. In preparing this Climate Statement, MCK has
elected to use the following adoption provisions from the NZ CS.
Millennium & Copthorne Hotels New Zealand Limited (MCK)
is a Climate Reporting Entity (CRE) under the Financial Markets
Conduct Act 2013.
Disclosure boundary
These climate-related disclosures relate to MCK which in 2024
encompassed 16 hotels under ownership and or management.
6

Although CDL Investments New Zealand Limited (CDI) is a
majority owned subsidiary of MCK, the activities of CDI are
not included within in this Climate Statement.
7
CDI are a CRE
under the Financial Markets Conduct Act 2013 and undertake
their own disclosure reporting.
8
MCK is engaged in, but does not report on the following
activities, as they do not fall within our operational control
or are deemed to be immaterial:
CONTENTS
INTRODUCTION
GOVERNANCE
STRATEGY
RISK MANAGEMENT
METRICS AND TARGETS
GLOSSARY
APPENDICES
8MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENTINTRODUCTION
Left: Grand Millennium Auckland.

111110MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
GOVERNANCE
Left: Copthorne Hotel Wellington Oriental Bay.

1213MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
Climate-related governance
MCK’s Board of Directors has oversight of sustainability overall
which encompasses Environment, Social and Governance (ESG)
aspects. This includes responsibility for ensuring there are
established processes for assessing climate-related risks and
opportunities, current climate impacts and climate-related
financial impacts, and transition planning, distinct from
Management’s role in assessing, managing and reporting these.
In addition to regulatory compliance, good governance
encompasses a strong sense of values and a desire to do
what is right for our stakeholders including our guests,
employees, suppliers, colleagues, regulators and the
communities in which we operate. We strive to conduct our
business in an ethical and responsible manner and in 2024
continued to embed climate-related risk management
into our governance processes and operations.
MCK Board oversight
10
MCK’s Board has ultimate responsibility for overseeing the
management of risks, including risks related to climate
change. The Board of MCK is committed to introducing and
integrating sustainability across key aspects of its business
and advancing sustainability efforts overall. The Board have
oversight of developing MCK’s Sustainability Strategy and
identifying ESG issues. The Board will set sustainability goals
and will oversee MCK’s sustainability and climate-related
reporting.
The Board meets at least four times a year, or more frequently
if required. The Board consider climate-related risks and
opportunities when developing and overseeing implementation
GOVERNANCE
GOVERNANCE
10. Please also refer to the Corporate Governance Statement in our Annual
Report which should be read together with these disclosures. MCK corporate
governance policies can be found at https://mckhotels.co.nz/investors/wp-
content/uploads/2025/03/MIL0022_Annual_Report_2024_Online.pdf
MCK Board of Directors
Approve Climate Statement, ESG framework,
Sustainability Strategy and Transition Plan
Sustainability Steering Group
Sustainability Strategy ownership; climate-related targets
and reporting; regular updates to the Audit Committee and
Board; provide strategic and operational guidance on ESG
and climate-related initiatives
Sustainability Manager & Hotel General Manager
Operationalise strategy
Monitoring and reporting
Projects and initiatives
Staff engagement
MCK Audit Committee
Review annual Climate Statement
Review climate risks and opportunities annually
Monitor progress of ESG and climate-related targets
Board Level
Management Level
Executive & Senior Management
Oversee ESG framework, Sustainability Strategy
implementation and transition planning
The Board’s oversight and Management’s role in assessing
and managing climate risks and opportunities.
of MCK’s business strategy by receiving and considering
presentations from Management and from expert advice
obtained. MCK is continuing to integrate sustainability and
climate into our strategic business planning processes.
The Audit Committee reviews and recommends to the Board,
climate scenarios, progress against MCK’s climate-related
goals and ensures that targets and metrics are tracked and
progressed (MCK aims to set and publish GHG targets in
2025). Climate-related performance metrics are not currently
incorporated into remuneration policies. Directors now receive
a sustainability and climate update as part of their Board/
Committee packs which provides climate-related risks and
opportunities and progress on key initiatives and metrics.
MCK’s Audit Committee meets at least twice a year. Committee
members examine climate-related risks and opportunities
and will make recommendations to the Board on how (material)
climate-related risks should be managed. This committee will
also advise the Board on the establishment, implementation
and review of a transition plan.
Directors undertake their own training to remain current on how
to best perform their duties as directors of MCK. The MCK’s Board
Skills Matrix does not specifically include ESG or climate-related
competencies and under the Board Charter, MCK will provide
specific training to directors as required. MCK’s directors acquire
skills and competencies necessary to oversee climate-related
risks and opportunities through various means. This includes
through sessions on sustainability and climate risks delivered
by the Sustainability Manager, the senior management team,
external consultants and subject matter experts. In addition,
continuous upskilling is expected via climate-related guidance
reports and resources, industry advancements and hotel
portfolio reporting.
MCK’s Board does not currently have a director with specialist
knowledge of climate issues although several directors are
familiar with sustainability frameworks. The Board believes
that it has directors with sufficient knowledge and experience
in risk management who can apply this to managing climate-
related risk.
Managing climate-related risks and opportunities; setting and
monitoring targets; and transition planning for CDI is delegated
to the CDI Board and management.
Disclosure objective:
To enable primary users to understand both
the role an entity’s governance body plays
in overseeing climate-related risks and
climate-related opportunities, and the role
management plays in assessing and managing
those climate-related risks and opportunities.
Role of Management
MCK’s senior management team have day-to-day oversight of
climate-related risks, opportunities and initiatives that drive
climate mitigation and adaptation strategies. Management also
reviews and advises the Board on ESG opportunities, strategic
sustainability and climate issues and MCK’s emissions reduction
strategy and initiatives.
MCK’s Sustainability Steering Group (SSG) currently consists of
a representative cross-section of the Leadership Team including
the Managing Director, VP Finance, VP Operations, VP Legal,
Director Property and the Sustainability Manager. The SSG
conduct assessments, prepare reports, manage the climate-
risk register and put in place plans to initiate action, mitigate
emissions and reduce climate risks. MCK’s Operations (including
Hotel General Managers), Sustainability Manager, Property,
Legal and Finance teams provide the senior management team
with support for monitoring and assessing MCK’s activities
which contribute to our impact on the climate.
The VP Legal oversees preparation of the annual Greenhouse
Gas Inventory and Climate Statement delivered by the
Sustainability Manager. The Sustainability Manager with
support from the SSG is responsible for developing and
delivering the Sustainability Strategy and future transition plan.
Climate risks and opportunities are captured and monitored
in the company risk register by the SSG on an ongoing basis,
with a review conducted annually – changes to risk profiles
over time will be escalated to the wider Leadership Team.
Senior management and the SSG provide updates to
each Audit Committee meeting on the identification
and management of climate risks and opportunities.
Hotel General Managers, Operations and Facilities managers,
supported by the Sustainability Manager, are involved in
assessing and addressing site specific climate-related risks.
Hotel teams and the Property team are responsible for
overall performance of MCK’s hotel operations – day-to-day
management, maintenance and operability of MCK’s assets;
and property management, refurbishment and maintenance
plans. Capital allocation across the hotel portfolio is agreed
annually by the Board, through the budget approval process.
Capex decisions are made monthly by the Capex Committee
with input from the Sustainability Manager as required.
A review of the climate scenarios and climate-related risks
and opportunities identified in the 2023 disclosures was
undertaken by the Sustainability Manager in late 2024.
This included participation by the SSG and Hotel General
Managers in workshops with support from an external
consultant. Criteria were set to assess current climate impacts
and climate risks and opportunities. Work was also commenced
by management on a portfolio-wide assessment of our hotel
assets (including our managed hotels) exposure to physical
climate risk, as well as further assessing and rating our business
transition climate risks and opportunities. Key climate-related
risks and opportunities arising from scenario analysis have been
reviewed by the Audit Committee, and the Board has received
the most recent climate assessment.
Governance of MCK climate-related risks and opportunities
CONTENTS
INTRODUCTION
GOVERNANCE
STRATEGY
RISK MANAGEMENT
METRICS AND TARGETS
GLOSSARY
APPENDICES

151514MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
STR ATEGY
Left: Millennium Rotorua.

1617MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
STR ATEGY
STRATEGY
11. https://sdgs.un.org/goals
12. Hotel operations can also contribute to SDG 6: Clean water and sanitation and
7: Affordable and clean energy, through reducing water and energy consumption/
increasing renewable electricity use.
Disclosure objective:
To enable primary users to understand how
climate change is currently impacting an entity
and how it may do so in the future. This includes
the scenario analysis an entity has undertaken,
the climate-related risks and opportunities an
entity has identified, the anticipated impacts
and financial impacts of these, and how an entity
will position itself as the global and domestic
economy transitions towards a low-emissions,
climate-resilient future.
Focus areasExamples of current initiatives
Promote sustained, inclusive and sustainable economic growth,
full and productive employment and decent work for all
• Sustainable tourism that creates jobs and promotes local
culture and products
• Implement plans to reduce the negative impacts of tourism
Our MCK values create a safe, inclusive and
productive workplace.
We foster a diverse workforce consisting of a range of
nationalities, ethnicities and ages across our hotels.
Make cities inclusive safe resilient and sustainable
• Inclusive and sustainable urbanization
• Reduce the environmental impact of cities
• Protect and safeguard cultural and natural heritage
Planning for future hotel development, responsible
investment, site accessibility, supporting local
cultural and community projects and protecting
local environments.
Ensure sustainable consumption and production patterns –
reduce waste, promote resource efficiency, and encourage
sustainable practices
• Efficient use of natural resources
• Substantially reduce waste generation through
prevention, reduction, recycling, and reuse
• Responsible supply chain and sourcing
• Reducing food losses along production and supply chains,
• Sustainable procurement practices
• Universal understanding of sustainable lifestyles
All our hotels have recycling systems for paper/cardboard,
glass, cans and plastics and some are trialling soft plastic
packaging collections. A focus on single-use plastics led
to the removal of individual wet amenities and bottled
water from most of our hotels in 2024. While there is room
for improvement, our hotels are currently diverting food
waste in places where commercial food waste collections
are available.
Hotels provide options for guests to reduce the impact
of their stay.
Take urgent action to combat climate change and its impacts
• Strengthen resilience and adaptive capacity to
climate-related hazards and natural disasters
Recent work to assess our hotel portfolio to identify
climate risks and commence transition planning will
lead to more resilient hotel assets.
Business model and hotel assets
MCK has been providing hotel accommodation in New Zealand
for three decades to independent leisure and businesses
travellers, in both the domestic and international markets.
Guests can book a stay directly with one of our hotels as well as
through a range of reputable local and global booking agents.
MCK has a diverse portfolio of hotels across the North and
South Islands. We have a range of operational models including
owned and operated hotels; hotels under management
agreement; joint ventures managed by us or a third party;
franchises; and landholdings. The level of operational control
MCK has varies across our portfolio, which in some cases can
impact the level of influence we have over capital deployment,
actions to reduce emissions or improve climate resilience.
This mix builds resilience into our business model enabling MCK
to provide guests with a range of accommodation types, across
different brands, price points and comfort levels. MCK also
offers the My Millennium loyalty membership programme for
frequent guests.
Our hotels all have dining and bar facilities, many also
offer pools, spas, gyms and meeting and conference facilities.
We have a programme of hotel refurbishments planned across
the portfolio to ensure our guests continue to enjoy quality
facilities and improved services can be incorporated over
time. MCK also provides staff accommodation at some of
our properties.
MCK appointed our first dedicated Sustainability Manager in
late 2024, in recognition of the importance of taking action
to be more sustainable, to reduce climate risk and emissions;
drive transparent reporting and comply with regulations
across our hotel portfolio.
Our broad approach to assessing and acting on climate-related
impacts across operations is to identify and manage climate risk
by addressing both:
• the impact on MCK from the physical and transition
impacts caused by climate change, and
• the impact by MCK resulting from our GHG emissions and
other business decisions that contribute to climate change
and other environmental issues.
Strategic direction
MCK’s provides quality accommodation for domestic and
international tourists as well as corporate travellers. We aim
to diversify our exposure to international and domestic
markets through targeted marketing and revenue management.
We invest in our properties and service delivery to ensure
our customers have a positive experience.
Post the COVID pandemic MCK started executing a Revive
and Thrive strategy focusing on the continued recovery of
tourism to and within New Zealand. Our strategy with regard
to managing climate-risk moving forward, is about realising
growth opportunities and bolstering our commitment to
sustainability – by establishing our ambition, emissions
reduction targets and operational priorities. We recognise
that we have an opportunity to transition to a low-carbon
future while continuing to provide quality accommodation
and guest services.
In 2024 MCK set a series of strategic pillars for the business,
to deliver on our strategic goals, which include sustainability.
MCK believes it can successfully execute business goals through
developing a dedicated Sustainability Strategy, with policy,
targets and measures; maintaining compliance with
climate-related disclosures and retaining our Toit
ū certification
and Qualmark ratings. This will include delivering on key actions
such as prioritising energy efficiency measures, planning for a
net-zero hotel, reviewing procurement polices and establishing
and showcasing sustainable water-saving, waste reduction
and renewable energy features and practices in our hotels.
Global reach with local action
MCK is part of a global company and network of hotels that
places an emphasis on supporting positive local environmental
outcomes. In 2024 the New Zealand region joined the global
Sustainability Team of our parent company in Singapore,
established to advance the group’s action on decarbonisation
and sustainable practices. This includes activating the
Millennium Green Path framework.
Climate-related impacts for our business including the scenario analysis undertaken
and the time horizon for our climate-related risks and opportunities.
Prioritising action
To help identify our sustainability priorities MCK has adopted
the United Nations Sustainable Development Goals (SGDs).
11

There are specific SDG targets and indicators relating to
sustainable tourism such as policies and tools to promote
and monitor jobs, local culture and products including 8.9
and 12.B. While tourism has the potential to contribute,
directly or indirectly to all of the goals. The SDGs that our
business can contribute to the most
12
have been identified as:
This focuses on the areas of:
• Minimising the environmental impact
of our operations;
• Responsible sourcing;
• Guest education and engagement; and
• Supporting our communities.
CONTENTS
INTRODUCTION
GOVERNANCE
STRATEGY
RISK MANAGEMENT
METRICS AND TARGETS
GLOSSARY
APPENDICES

1819MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
DefinitionRating
Significant impacts to MCK’s business or high likelihood of occurring in a given scenario,
for consideration as part of strategic planning
High
Moderate impacts to MCK’s business or average likelihood of occurring in a given scenario,
for consideration as part of strategic planning
Medium
Limited or no impacts to MCK’s business or low likelihood of occurring in a given scenario,
can be dealt with as part of business as usual
Low
STR ATEGY
(CONTINUED)
In summary MCK considers a climate impact as material if
it has the potential to influence business as usual operations,
deliver on business strategic objectives, revenue or market/
customer perception.
Current climate-related impacts
A current impact is the effect or result of a material
climate-related risk or opportunity on MCK’s business,
which took place within the current reporting period.
We consider climate-related physical and transition
impacts to be overall immaterial for MCK for 2024.
MCK’s SSG conducted a retrospective screening to determine
material climate-related impacts in 2024 across the business.
Following input from MCK Leadership Team and General
Managers, current material climate impacts are then fed
into the annual financial impact assessment process.
We assessed whether there were any acute climate-related
attributable weather events; any changes to policy settings
or regulations enacted; or tangible market, technology or
reputational shifts evident within the current reporting
period. We also reviewed our climate-related risks and
opportunities to see if any had occurred in 2024. This involved
a materiality assessment of the proportion of portfolio and
profit affected, scale of disruption or benefit to operations,
impact on occupancy or customer feedback, plus any other
assumed primary user expectations.
Currently, impacts from acute physical climate-related events
on our hotels and business operations are rare. Occasionally,
bookings or access to some hotels can be affected by weather
events for short periods of time, however these events are
not often attributable to climate change and do not generally
disrupt operations. Few climate-related acute weather events
attributable to climate change occurred in NZ during 2024.
Our portfolio showed resilience during 2024 events that
resulted in flooding, no hotels were located in areas that
flooded or experienced landslips, coastal erosion or inundation
this year. There were no cases where MCK hotels suffered any
significant damage or disruption to guests in 2024, nor were
there any material supply chain disruptions impacting our
business from climate-related physical or transition impacts.
There were no material (low emission) upgrades or resilience
measures undertaken across the portfolio in 2024 in response
to climate-related weather events or regulations. Access to
capital has not been impacted, nor were any acquisition or
divestment decisions affected in 2024.
Transition impacts relating to changing government policy
or consumer preferences would flow through to changing
demand for accommodation. MCK has not observed a trend in
declining international or domestic visitor bookings to date
as a direct result of climate concern or impacts. However, the
ongoing pandemic recovery across the tourism industry
may mask the impact of climate-related risk on travel patterns.
In addition, there were no climate-related opportunities
identified or pursued by MCK in 2024. As a result, there has
been no change to MCK’s core business model or operations
from climate change impacts.
Materiality rating definitions and criteria
MCK has applied the XRB definition of materiality and the
requirements in NZ CS 1 to shape our understanding of materiality
of climate-related risks and opportunities (and also applied it to
all disclosures in this Climate Statement). This means we have
made every effort to present information that could reasonably
be expected by primary users to influence business decisions,
without omitting, misstating, or obscuring anything.
STRATEGY
Millennium Queenstown.
Current climate-related financial impacts
In 2024 we initiated a qualitative process to assess and
document material climate-related financial impacts for
MCK. Following the initial identification and assessment of
material climate-related impacts across the hotel portfolio,
the current financial impacts were then assessed by the MCK
Finance team. Aspects of MCK’s financial performance assessed
annually include our financial performance, financial position,
and cashflows using a bespoke workbook which captures each
climate impact and where possible quantifies the actual cost
e.g. of building repairs or fees or approximate dollar value
considering the percentage of revenue impacted.
Once we determine whether any current impacts have occurred,
we then assess their financial impact on our operations and
quantify this where possible. Given there are no material current
climate impacts identified in 2024, there are no climate-related
material financial impacts reported for the 2024 financial year.
The following summarises our internal rating criteria used to
assess climate-related risks and opportunities and current climate
impacts across the business. Internal criteria applied incorporated
some quantitative assessment such as percentage of portfolio
affected, percentage of profit affected (also unplanned capital
expenditure or possible savings), scale of disruption or benefit
to operations, impact on occupancy and/or reputation.
Time horizons for climate-related risks and opportunities
Our time horizons remain substantively the same as identified
in our first disclosures. These are consistent with business
planning, consider the longer-term nature of owned buildings
and hotel refurbishment cycles, align to building depreciation,
and they are largely consistent with sector scenarios.
Noting that our assessment of physical climate variables across
our portfolio has been aligned to time frames consistent with
MfE guidance, i.e. short-term (2021–2040), medium-term
(2041–2060) and long-term (2081–2100).
MCK has used the following time horizons to inform scenario
analysis and assess the climate-related transition risks and
opportunities identified as short, medium or long-term.
Present–20302046–20752031–2045
Short-termMedium-termLong-term
Impacts on near-term income,
operating costs and increased
repairs and maintenance.
7–10 year refurbishment cycle.
Impacts on core aspects of strategy,
acquisition of new hotels, expansion
of the portfolio, development phasing
and/or divestment decisions.
30–50 year life of primary property assets.
Impacts from travel patterns, trading
conditions and long-term viability.
CONTENTS
INTRODUCTION
GOVERNANCE
STRATEGY
RISK MANAGEMENT
METRICS AND TARGETS
GLOSSARY
APPENDICES

2021MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
STR ATEGY
(CONTINUED)
Summary of climate scenarios
For further detail on our entity-level climate scenarios see Appendix A.
STRATEGY
Climate change scenarios
A climate scenario is a plausible, but hypothetical, description
of how the future climate may unfold, based on a coherent set
of assumptions about driving forces and relationships, used
to explore the potential impacts of climate change to inform
decision-making. It is not a prediction or forecast of the future,
or narrative of resulting impacts on MCK’s business.
Climate scenario analysis process
Physical Risks
Priority Risks
Priority Opportunities
Transition Planning
Climate scenario
analysis
Asses anticipated impact
and relevant time horizons
Scenarios
Transition Risks
Opportunities
Initially identified in 2023 and prioritised in 2024Ongoing from 2024 onwards
Policy
Ambition
>3.0°C
Physical Risk
Severity
Extreme
Policy
Reaction
None
(current only)
Transition Risk
Severity
Low
Technology
Change
Slow
Socio-political
Instability
High
Behaviour
Change
Slow
3.0°C Hot House World Scenario – Current trajectory
A world where global warming reaches 3.0 degrees above preindustrial levels by 2100,
due to no additional policies introduced to reduce greenhouse gas emissions.
Policy
Ambition
<2.0°C
Physical Risk
Severity
Moderate
Policy
Reaction
Delayed
Transition Risk
Severity
High
Technology
Change
Slow, then fast
Socio-political
Instability
Moderate
Behaviour
Change
Slow, then fast
2.0°C Disorderly Scenario – Delayed transition
A world where global warming is limited to 2.0 degrees above preindustrial levels, as policies to
reduce greenhouse gas emissions are introduced after 2030. There is a rapid and concerted effort
to reach net zero 2050 goals.
Policy
Ambition
1.5°C
Physical Risk
Severity
Moderate
Policy
Reaction
Immediate
and smooth
Transition Risk
Severity
Moderate to high
Technology
Change
Fast
Socio-political
Instability
Low to Moderate
Behaviour
Change
Fast
1.5°C Orderly Scenario – Net zero 2050
A world where global warming is successfully limited to 1.5 degrees above preindustrial levels, as ambitious
goals and policies to reduce greenhouse gas emissions are immediately and effectively implemented.
Scenario analysis
In 2023, MCK adopted high-level narrative-driven climate
change scenarios. Since our first disclosures we have reviewed
the relevant tourism and property sector scenarios; reviewed
MCK’s prior scenario analysis against latest standards and
guidance; and tailored entity-level scenarios to focus on
climate drivers with material impact to our business.
MCK undertook scenario analysis using internal staff resources
and working groups led by the Vice President Legal and
Sustainabilty Manager; support and peer review by external
experts
13
; and workshops with senior leadership, Hotel
General Managers and Directors. This was to ensure that they
are understood by the business and can be factored into
decision making. Scenarios and climate-related risks have been
reviewed by the Audit Committee and on their recommendation
approved by the Board as part of climate-related disclosures.
In developing scenarios, MCK had regard to two sector
archetypes which it considers important for its operations
and reflects the nature of our core business. MCK considered
the work undertaken by the Aotearoa Circle to develop climate
scenarios
14
and adaptation strategies
15
for the tourism sector as
a whole. Given that MCK is an owner operator of hotels and has
significant physical assets, we have also had regard to the
sector scenarios developed by Beca Limited for Te Kaunihera
Hanganga Tautaiao | New Zealand Green Building Council
(NZGBC).
16
These sector Orderly, Disorderly and Hot house
world scenarios are based on a coherent set of socio-economic
assumptions, decarbonisation pathways, and climate
change projections.
We have included a suite of 2050 indicators for each our of
scenarios (noting that our scenarios take a medium to long-term
view). All our scenarios assume New Zealand’s population to be
6.93 million in 2050.
MCK’s entity-level scenarios draw from, and are consistent with,
the sector scenarios (but downscaled for our business) and
therefore support comparability with the disclosures of others
in our sector. Our scenarios reflect MCK’s specific circumstances,
being an amalgam of the scenarios outlined for both sectors,
which we understand to be relatively similar in their key
assumptions. Our Orderly and Hot House world scenarios,
align with the mandated NZ CS scenarios.
17
We selected our
remaining Disorderly scenario, to represent a challenging future
for our business as it is designed to explore a disrupted climate
transition. No additional scenarios have been explored.
CONTENTS
INTRODUCTION
GOVERNANCE
STRATEGY
RISK MANAGEMENT
METRICS AND TARGETS
GLOSSARY
APPENDICES
13. MCK engaged WSP to undertake a peer review of the scenarios and provide recommendations for further development.
14. https://www.theaotearoacircle.nz/s/P0381992_AotearoaCircleReport_Tourism_Scenariosv07.pdf
15. https://www.theaotearoacircle.nz/s/The-Aotearoa-Circle-Tourism-Sector-Climate-Change-Adaptation-Report-002.pdf
16. https://23159811.fs1.hubspotusercontent-na1.net/hubfs/23159811/NZGBC%20-%20Climate%20Scenarios%20for%20
the%20Property%20and%20Construction%20Sector.pdf
17. (i) at least one 1.5°C, Paris Agreement-aligned scenario, (ii) a greater than 3°C-aligned high warming scenario,
and (iii) a third scenario.

STR ATEGY
(CONTINUED)
Climate-related risks and opportunities
During 2024, MCK undertook further work and research with
the help of external service providers
18
to look more closely
at its physical and transition risks across its business and
including its hotel buildings, operations and land holdings.
19

In 2024 we built on previous anaylsis reviewing climate-related
risks across different scenarios to further our understanding
of the key risks facing MCK.
Material physical climate-related risks
Following an exposure assessment of our hotel properties (see
Risk Management section for methodology), we have assessed
the overall climate-related physical risk to the portfolio.
20

The following table summarises the risk of each climate-related
geohazard for the current MCK hotel portfolio. Risk is low across
all with the exception of coastal inundation, which has been
identified as moderate, potentially affecting 2 hotels.
21
Risk FloodingCoastal Inundation
22
Coastal ErosionLandslidesSea Level Rise
No Risk70.5%76%94%94%82%
Low Risk23.5%12%0%6%12%
Moderate Risk0%0%6%0%6%
High Risk6%12% 0%0%0%
Overall Portfolio Risk RatingLow RiskLow RiskLow RiskLow RiskLow Risk
18. MCK engaged WSP to support this process.
19. This includes 16 hotels and one additional land holding. Excludes franchises and CDI.
20. SSP3-7.0 climate change projection scenario was used for this exposure assessment. This aligns to the Hot house scenario and of the five IPCC scenarios, it is one
of the upper middle warming scenarios for which NIWA data is available.
21. Note that an overall portfolio risk rating of low does not mean that all hotel properties are considered low risk.
22. This risk accounts for future sea level rise, there is no (or in one case low) exposure under current sea levels.
23. Note that 4 risks and 1 opportunity rated as low across all scenarios do not appear in the table, these include. Emissions reduction targets are seen as insufficiently
ambitious, using lower emissions modes of transport; targeting environmental building certifications to unlock sustainable finance; attract and retain staff whose
personal values align with climate goals; and collaborate with local councils and hotel industry associations.
Material climate-related transition risks and opportunities
MCK initially identified and assessed 12 transition risks
and 13 opportunities at a portfolio level. Materiality ratings
have been qualitatively applied to all climate-related risks
and opportunities to determine the highest levels of risk
and therefore priorities across our three climate scenarios.
The following tables (pages 24–27) provide a summary of
the 20 material climate-related risks and opportunities,
and their relevant time horizons.
23
A separate risk assessment has been completed for CDI,
as reported in their FY24 Climate Statement.
For the 15 chronic climate change variables assessed, all
pose risk over the long-term. The impact of temperature and
rainfall were identified as insignificant on our assets and so
are rated low risk, with strong wind and windy days variables
rated moderate risk (i.e. by 2100 the average for the portfolio
is within the moderate consequence threshold).
Risk ratings should be treated as a snapshot of today’s
understanding of MCK’s portfolio. As exposure and/or
vulnerability thresholds for physical risks change, and/or
the regulatory, technology, or market environment changes,
risk ratings will be adjusted accordingly.
Resilience
Product/
services
Resource
efficiency
Energy sourceMarketReputation13 Opportunities
12 Risks
Policy and
regulatory
TechnologyLiabilityMarketReputation
23
STRATEGY22MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
Hotel assets vulnerable to transition and physical risks
Based on our assessment of physical risk across the hotel
and land assets, the majority of our portfolio has no or low
vulnerability to climate-related geohazards and climate
variables (35%). Overall, just 3 hotels (18%) are at high risk
from one geohazard (either some impact from flooding, or
coastal inundation accounting for future sea level rise).
In the course of determining transition risks to our business
activities we have adopted the view that this encompasses
most, if not all of our current assets to some extent. All our
hotels are currently reliant on fossil fuels (gas) to operate
kitchen facilities at a minimum. The majority, over three
quarters of our emissions are related to operational energy
use and of this 54% are currently generated using fossil fuels
(LPG and natural gas).
24
We will use this as a proxy measure
for the percentage of our hotel portfolio assets vulnerable to
transition risks for this financial year, until further assessments
are done.
MCK’s work to assess and quantify the extent of our business
activities vulnerable to climate-related risks across our value
chain is ongoing. Our assessment of business exposure will also
be linked to the methodology for estimating the anticipated
financial impacts, to be reported in future year’s disclosures.
Capital deployment towards initiatives related
to climate-related risks and opportunities
MCK’s capital expenditure and investment is prioritised
consistent with forecast business needs and anticipated
returns. This also applies to investment to address climate-
related risks and opportunities. Work is underway, however is
in early stages and we are yet to fully integrate climate-related
risks and opportunities into our business processes including
decision-making on investment and capital deployment.
MCK has made an initial assessment of the capital expenditure,
financing, or investment that contributes to addressing climate-
related risks and opportunities for FY24.
25
This includes spend
in one or more of the following areas during 2024, which has
been quantified in the Metrics and Targets section on page 42.
• Feasibility studies for improvements to hotel buildings
and equipment which include identifying emission
reduction or increased resilience opportunities
• Energy and water efficiency upgrades to equipment,
appliances, fixtures and systems, e.g. lighting, HVAC,
laundry, refrigeration, insulation or double glazing,
electrical and electronic devices
• Switching from gas to electricity and or solar generation
• Replacing high global warming potential (GWP) refrigerants
• EV charging infrastructure
• Waste and recycling improvements
• Building resilience measures e.g. relocation of core
services or flood protection
We have also reported separately consultant spend on
climate-related risks and opportunities work.
26
This excludes
staff salaries; accreditation fees, audit and contractor costs for
quantifying and verifying our GHG emissions; and costs relating
to climate-related disclosures and sustainability reporting.
24. For the purposes of this assessment 87% of electricity consumed (kWh)
has been assumed to be renewable. This does not account for solar utilised
to supplement hot water generation (Copthorne Bay of Islands) which is not
currently metered.
25. Includes assessment of capital expenditure for owned hotels only, excludes
MCK hotels that are only under management agreement, Sofitel Brisbane and CDI.
26. Note that this does not incorporate a full list of spend on sustainability related
projects for the business.
Low Risk: Where all/the majority of properties had a no risk/low risk rating with only 1 or 2 properties with a higher risk rating.
High Risk: Where >50% of properties had a high risk rating.
Moderate Risk: Where >50% of properties had a moderate risk rating and/or >15% of properties had a high risk rating.
CONTENTS
INTRODUCTION
GOVERNANCE
STRATEGY
RISK MANAGEMENT
METRICS AND TARGETS
GLOSSARY
APPENDICES

2425MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
STR ATEGY
(CONTINUED)
Category NameAnticipated impacts on MCK hotels and business activities Time HorizonOrderly DisorderlyHot House Potential MCK mitigation actions include
27

Technology
Uncertainty and costs associated
with investing in new technology
MCK could see increased costs for technology investment and repeated expenses for rapid
cycles of technology upgrades. New technology may not always be reliable, resulting in
operational disruptions.
Short; Medium
• Identif y key technology in use or proposed that is vulnerable to this risk
• Monitor industry trends and new technologies, such as building management and IT systems,
renewable energy and AI
• Strengthen onsite resilience with appropriate and reliable back up energy solutions
• Explore cloud-based platforms for business operations to reduce hardware vulnerabilities
• Plan refurbishments and system upgrades to align with the lifecycle of equipment
• Prioritise upgrading older systems, equipment and fittings with energy efficient and long-life models
Policy and
Regulatory
Increased Government regulation
changes, environmental obligations,
reporting requirements or
new policies
Increased regulations could result in increased costs for MCK to invest in infrastructure
upgrades and to meet reporting requirements. Suppliers may also need to be reevaluated
for alignment. MCK is exposed to higher risk for meeting the climate disclosure regime but
is actively working towards compliance through its mandated reporting. MCK may need to
consider phasing out certain energy sources or upgrading materials and technology to
comply with Government policy, which could form part of its transition planning.
Short; Medium
• Invest in improving data systems and quality to improve reporting
• Participate in consultation on changes to or relevant proposed new regulations
• Consider sustainability aspects of suppliers and projects
• Account for emissions to understand their financial impact and review hotel operational reliance
on fossil fuels
• Schedule upgrades to assets to in line with the end of life for equipment, ahead of any mandatory
low-emissions requirements
• Transition planning to mitigate future compliance costs
Policy and
Regulatory
Increase in taxes/rates to pay
for strengthening infrastructure
A rise in taxes or rates could mean increased costs for MCK. Targeted rates, such as those
related to a property’s infrastructure resilience or to the amount of waste output, could
potentially be mitigated by MCK investment in property renovations or improvements in
environmental impact (such as waste reduction). If costs become too high, MCK may wish
to re-evaluate the cost-benefit ratio for these actions or across operations for a property
more broadly.
Short; Medium
• Monitor the progression of proposed new taxes and regulations and develop planned responses
such as factoring in cost increases
• Continue to participate in industry advocacy with Council, in collaboration with Aotearoa Hotel
Council and the Tourism Industry Association
• Where possible take action to avoid potential new levies i.e. proactively offer recycling and food
waste collection at hotels
Liability
Legal risks for buildings that
are not climate resilient
Legal risks associated with non-climate-resilient assets could result in increased costs
for litigation, compliance, and mitigation efforts as well as reputational damage.
Medium
• Continue regular hotel condition reports
• Planned maintenance and repairs to ensure building resilience
• Periodically reassess hotel vulnerability to physical climate risks as new climate projections
become available
• Instigate climate risk assessment for new acquisitions
Liability
Penalties or litigation associated
with insufficient disclosure of
material climate risks
Legal challenges and penalties related to inadequate climate risk management and disclosure
could result in financial losses, reputational damage, and increased scrutiny from regulators
and investors.
Short; Medium
• Invest in robust assessment and reporting
• Allocate resources to measure indirect scope 3 emissions including engaging with suppliers
and franchises
• Maintain climate risk register, establish and report against targets, and progress transition planning
Liability
Increasing insurance costs
or unavailability
MCK properties could see increased insurance costs and/or stricter policy terms, with some
sites disproportionately impacted depending on their location relative to physical risks and
their assessed resilience. Alternative options such as self-insurance or parametric cover may
need to be considered for sites with reduced insurance affordability or accessibility. Coastal
MCK properties in particular could face a loss of access or affordability of insurance due to
insurance retreat. To date, MCK continues to have full replacement cover for its portfolio
and its insurance premiums are manageable.
Medium, Long
• Act to reduce risk, such as preventing damage from weather events, business disruptions,
and other potential claims
• Take resilience and adaptation measures identified for hotels with moderate or high risk
to climate-related geohazards to reduce vulnerability
• Consider building in resilience measures to future proof for extreme weather events during
hotel refurbishments
Market
Failure to meet sustainability goals
or consumer, client, and investor
expectations for decarbonisation
Unmet sustainability expectations could result in reputational damage, reduced investor
confidence, and loss of access to capital. Additionally, resource diversion to address
sustainability gaps could delay other initiatives, impacting long term organisational growth.
MCKs existing hotel portfolio does not currently hold green building certification, which could
be at a competitive disadvantage in the future and may incur high costs to upgrade to new
standards and expectations.
Medium
• Establish and monitor targets, and report on progress
• Sufficiently resource and invest in sustainability across the business
• Share sustainability progress with shareholders, stakeholders, staff and the public
• Prioritise material emissions sources across the portfolio for reduction and review
hotel operational reliance on fossil fuels
Market
Prioritisation of circular economy/low
waste alternatives puts pressure on
supply chain and increases costs
Circular economy adoption may lead to higher costs, supply chain challenges, and varying
risks across business areas.
Short; Medium
• Actively engage with key suppliers to align values and approaches and identif y no regrets actions
• Build sustainability criteria into procurement practices, tenders and supplier contracts
• Support locally sourced products and services
Market Increasing energy prices
MCK could see increased energy costs, especially when combined with increasing energy
demand due to extreme temperatures. MCK may need to consider ways to increase energy
efficiency and/or electrify hotel operations to keep costs low. The cost of travel could be
impacted by a shift to more electric or hybrid vehicles.
Short; Medium
• Stay updated with energy providers regarding future increases and timeframes
• Source renewable electricity and explore onsite renewable energy generation and storage
• Explore alternatives to natural gas and LPG use at hotels
• Consider the services outsourced by hotels
• Improve operational energy efficiency through BMS and during hotel refurbishments and upgrades
Market
Changes/reduction in international and
domestic travel patterns due to climate
impacts
MCK could see reduced forward bookings and occupancy.Medium; Long
• Adapt to serve existing and new market segments
• Reduce emissions intensity of hotel stays
• Provide low-emissions offerings for guests
Market
Market uncertainty driven by physical
climate change impacts and associated
regulatory changes
Uncertainty and rising costs may reduce profitability, delay project timelines, and strain
financial resources, and could impact the viability of some properties. The viability of tourism/
accommodation in general could change under these conditions.
Medium, Long
• Collaborate with TIA and TNZ through NZHCA
• Continue to participate in the NZ Hotel Sustainability network
• Investigate alternatives for materials subject to increases in carbon pricing locally or internationally
• Improve monitoring and forecasting to adapt to changing travel patterns and guest expectations
• Transition and adaptation planning to mitigate future impacts
LowModerateHigh
STRATEGY
27. While mitigation actions have been identified, resources are yet to be allocated. Mitigation actions will be prioritised
and resources allocated accordingly as part of future transition planning.
Material climate-related transition risks
CONTENTS
INTRODUCTION
GOVERNANCE
STRATEGY
RISK MANAGEMENT
METRICS AND TARGETS
GLOSSARY
APPENDICES

2627MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
Category NameDescriptionAnticipated opportunities for MCK hotels and business activitiesTime HorizonOrderly DisorderlyHot House
Resource
Efficiency
Developing plans for increased
energy efficiencies in hotel buildings
MCK could improve the energy efficiency of its operations in hotel buildings. This could
include reviewing current systems (boilers, HVAC, etc.) to assess their energy consumption
and efficiency, and upgrading appliances and systems to more energy-saving models
where appropriate. Insulation improvements and green roofs could support temperature
regulation of properties without incurring additional energy demand. Smart technology
and sensors could be installed to control fixtures such as lighting to reduce energy
consumption when not in use.
MCK would benefit from a reduction of direct and indirect costs such as maintenance over
the long term, as well as higher guest satisfaction and potential for increased revenue as a
result. Energy savings also generally reduce carbon emissions for the business, which can
help it meet its sustainability commitments. Reduced energy demand can make MCK more
resilient to climate-related disruptions to energy supply and pricing, whether from physical
risks to the electricity grid or the transition to phasing out fossil fuels.
Short; Medium
Resource
Efficiency
Reducing water use
MCK could implement water-saving measures in its operations, encourage customers
to engage in water-saving behaviours, and opt for appliances with lower water use
when upgrading or repairing properties to reduce water consumption.
With increasing demand for water and higher infrastructure costs forecast, a reduction
in water consumption could result in reduced operating costs for the business. Customer
engagement on saving water could improve MCK’s association with sustainability and
thus its reputation. In the face of climate variability in water supply, reduced water
demand can make MCK more resilient to fluctuations in price and availability of water.
Medium
Energy Source
Installing and using lower
emissions sources of energy
MCK could install renewable energy infrastructure, supply power from lower emissions
energy sources (i.e. through its electricity supplier), and/or invest in on-site energy
storage. Increased self-sufficiency of energy supply could mitigate risk of dependence
on external energy infrastructure and services, particularly where investment in these
networks is insufficient.
MCK could reduce its carbon emissions from energy use. MCK could see lower energy use
and reduce overall energy costs in the longer term. Although the installation costs might be
higher in the short term, over the longer term, a reduction in exposure to direct energy prices
and the fluctuations of the spot market could be avoided. MCK’s resilience to power supply
disruptions could be improved by installing batteries or solar panels at properties where the
regional power supply is degrading or unreliable. Degasification is a significant opportunity
as gas is used for hot water in some hotels and for cooking in most. Addressing the reduction
of refrigerants, such as high global warming potential (HGWP) emissions from individual mini
fridges in hotel rooms, along with their energy use, is also a significant opportunity.
Short; Medium
Reputation
Being a fast follower of lower
carbon technologies or services
MCK could become a fast follower of technologies or services with lower emissions and
other environmental impact. This could include certifications, such as Toit
ū’s Carbon
Reduce certification scheme for organisations and/or for products and services.
MCK’s reputation could improve, attracting more guests to the brand and demonstrating
the company’s ability to adapt and be ahead of the curve to investors.
Short; Medium
Products/
Services
Offering lower carbon
products and services
Consumer awareness is increasing around packaging, the cost and impact of importing and
transporting food and other products, and the overall supply and value chain. MCK could
develop product and service offerings which are considered low. Lower carbon and impact
on the environment. This could include meaningful collaborations with suppliers that have
green credentials, which could also better support local businesses and producers as an
added benefit.
Offering lower carbon products and services could be seen as more attractive by customers –
both increasingly sustainability-conscious individuals as well as corporations with emissions-
saving policies. This could expand the customer base, encourage repeat customers, and
lead to revenue gain, particularly if MCK’s offerings are seen as superior to its competitors
in this regard. Customers, investors, and the public would be able to see MCK’s progress and
commitment to sustainable products. Visible changes, such as to amenities and single use
plastics, may be the lowest hanging fruit.
Short; Medium
Resilience
Increasing operational resilience
to extreme weather events
MCK could assess and improve the ability of its operations to respond rapidly to and recover
from weather events such as flooding, storms, and drought. This could include a review
and update of existing emergency management plans; improved coordination between
MCK properties or with local authorities; assessing supply chain resilience; and identifying
dependencies on critical external networks.
Improving MCK properties’ resilience to extreme weather events could allow them to continue
operating through difficult conditions, improve staff and customer safety, and reduce damage
to buildings. This could help to protect MCK’s revenue, reduce repair and customer relocation
costs, and enhance its reputation. Greater resilience in climate emergencies could make MCK
properties a viable and desirable option for people seeking temporary accommodation due to
displacement, creating an opportunity to generate more revenue.
Short; Medium; Long
Resilience Supply chain optimisation
MCK could move from an ad hoc approach to establishing best practice for procurement
and updating its policies on supply chain sustainability.
Optimising supply chains and engaging with suppliers on sustainability holds considerable
potential to both lower associated carbon emissions and improve resilience to market changes
and supply chain disruptions.
Short; Medium
Resilience
Proactively upgrading and
strengthening hotel infrastructure
to increase resilience
Proactively making MCK properties more climate-resilient could increase their attractiveness
to customers who are concerned about weather events or who experience weather events
during their stay.
MCK could see opportunities for attracting and retaining customers and thus gaining revenue
for properties which are in better condition or are designed to withstand weather events
relative to other hotel properties in the market.
Medium; Long
Markets
NZ hotels in some locations
capitalise on changes to international
and domestic travel patterns
Either, if overseas destinations are no longer suitable to travel due to climate impacts
(e.g. increase in international visitors to NZ); or if climate change results in a more temperate
(although perhaps unstable) weather patterns in parts of the country.
There may be an opportunity to proactively market MCK hotels to domestic and international
travellers to increase guests in target market segments, increased uncertainty may require
different marketing strategies.
Medium; Long
STR ATEGY
(CONTINUED)
STRATEGY
LowModerateHigh
Material climate-related opportunities
CONTENTS
INTRODUCTION
GOVERNANCE
STRATEGY
RISK MANAGEMENT
METRICS AND TARGETS
GLOSSARY
APPENDICES

2829MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
STR ATEGY
(CONTINUED)
Transition Planning
MCK sees the intent of transition planning as building resilience
to critical climate-related uncertainties by planning actions
to ensure our business can continue to operate, maintain the
use of our assets, finance our operations, generate sustainable
revenue and retain customers in a changing world. This section
sets out the transition plan aspects of MCK’s strategy and
considers what may need to change to address material
climate-related risks and opportunities. The transition plan
itself, once confirmed, will be a suite of strategic actions and
metrics which set the direction of MCK’s business to thrive
in a low-emissions, climate-resilient future.
As New Zealand pursues a national target of net zero by 2050,
MCK recognises that there may be more disruptive events to
our business and the wider tourism and accommodation sector.
Our current business model provides us with flexibility in the
face of uncertain future changes, such as travel patterns, to
cater to a different mix of domestic and international guests
and/or leisure and corporate travel. We have demonstrated
agility in past years in response to significant impacts such
as the COVID pandemic, pivoting to provide quarantine
accommodation at some hotels (MIQ) to maintain occupancy
and reduce business impacts.
Our transition planning work builds on our climate scenario
analysis and assessment of climate-related risks previously
outlined. MCK is currently considering how best to adjust our
business strategy in the transition to a resilient and low-
emissions future. We are responding to guest expectations;
working to ensure those of our hotels vulnerable to physical
climate risks have suitable protection and resilience measures
in place; and where possible, plan to transition from the
use of fossil fuels (diesel and gas) in our hotel operations to
more renewable forms of energy – all of which require capital
investment over time. We have already taken some remedial
action to reduce the vulnerability of our hotels at greatest
risk to acute physical climate impacts (such as protection of
electrical services; on site sandbags; and basement pumps to
reduce flood impact). In addition, we’ve identified potential
MCK mitigation actions (see table on page 25) in response to
our material transition risks. Once we have confirmed our future
pathway, the next steps will be to confirm and prioritise actions
and assign responsibility and resources for addressing our
priority risks and opportunities.
Early-stage planning
In 2024 we progressed actions in the assessment phase of our
transition planning. We identified our material climate-related
risks and opportunities, as set out in this statement, including
identifying those material across our scenarios. We have also
identified both current actions we are adopting to mitigate
our climate-related risks, and potential future action that we
could adopt. We have also commenced integrating climate-
related risks into our risk management framework (see Risk
Management section).
We have identified the following strategic climate-related
priorities for MCK, which are key transition planning
considerations across our value chain.
• Operational efficiency and reduced reliance on fossil fuels –
decarbonising hotels
• Capital investment – hotel refurbishment and systems
improvements
• Responsible procurement – decarbonising our supply chain
• Improved resilience – hotel access and facilities, and
business activities
• Net zero activities and properties (including the role of
carbon offsets)
• Guest expectations and education – low-emissions offerings
Our Capex Committee along with the forward work programme
of major refurbishments, are the primary mechanisms for
allocating capital to address transition risks and opportunities.
We have processes for assessing climate-related capital
deployment across the business. In 2025 we will build on
this work to establish forward looking climate-related spend
and allocation of resources as part of identifying our future
anticipated financial impacts. We have also initiated actions
related to metrics and targets, in particular to improve data
collection; better understand hotel level material sources of
emissions; and source indirect Scope 3 emissions data.
We have commenced identifying signals and triggers for
future action, i.e. conditions under which return on investment
becomes viable (e.g. onsite solar energy generation);
regulations come into force; or certain operations become
untenable (e.g. due to coastal inundation impacts). Based on
our assessment of our hotel portfolio exposure and material
risk from physical climate impacts or transition risks, we are
not currently considering divesting any of our properties.
STRATEGY
MCK’s transition planning journey
We intend to disclose more detail on the transition aspects
of our strategy and progress with implementation in our
2025 Climate Statement. We also intend to further explore
the implications of changes to our business model and/or
strategy to ensure our business can thrive across each of
our climate scenarios.
Assess
2023
• MCK publishes first
climate-related disclosures
• First hotel portfolio
GHG inventory certified
and material sources of
emissions prioritised
• Key stakeholders mapped
2024
• Dedicate resources to
sustainability leadership
• Identify material issues
and review sustainability
goals
• Undertake entity-level
climate scenario analysis
• GHG inventory base year
restated and recertified
• Assess and prioritise
material climate-related
risks and opportunities,
including hotel exposure
assessment
• Engage the Board and
convene Sustainability
Steering Group to ensure
cross company leadership
• MCK publishes second
climate-related disclosures
outlining transition
planning progress
Set ambition
2025
• Transition planning
workshops with
senior management
and the Board
• Engage with key
stakeholders and
suppliers
• Set emission reduction
targets and climate
resilience goals
• Identify changes to
our business model
• Agree Sustainability
Strategy and
Transition Plan
Plan actions
Next steps – 2025 onwards
• Identify no-regret actions
• Develop feasibility
studies and business
cases
• Confirm emission reduction
actions that respond
to transition risks
• Confirm climate
resilience actions that
respond to physical
and transition risks
• Proactively respond
to climate-related
opportunities
• Plan changes to our
business model and
assign responsibility
for priority actions
Implement
Next steps – 2025 onwards
• Allocate Transition
Plan investment
• Prioritise no-regret actions
• Build in flexibility to
address uncertainties
and alternate pathways
• Ongoing resourcing,
implementation and
regular review of
transition plan
• Monitor signals and
triggers for action
• Monitor progress
indicators and
course correct
where necessary
Future Review
CONTENTS
INTRODUCTION
GOVERNANCE
STRATEGY
RISK MANAGEMENT
METRICS AND TARGETS
GLOSSARY
APPENDICES

313130MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
RISK
MANAGEMENT
Left: Katsura Restaurant, Grand Millennium Auckland.

3233MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
RISK MANAGEMENT
The Outline of Material Risks contained in the MCK 2024
Annual Report
28
acknowledges climate change as a material
risk to the business and is expected to affect the hospitality
and accommodation sectors.
We are in the process of strengthening our approach to
climate-related risk management in alignment with the
Aotearoa New Zealand Climate Standards. In 2024 MCK
commenced a climate risk assessment to identify and assess
physical and transition risks across its operations.
Time horizons considered
Many climate risks (e.g., policy changes and extreme weather
events) are unpredictable, uncertain and manifest over
extended timescales typically outside those considered
in business-as-usual risk management processes, so we
have set specific time horizons for assessing MCK climate-
related transition risks (and opportunities). Our physical
risk assessment has been conducted aligning to timeframes
consistent with MfE guidance. This included using 100 year
return period data for geohazards in the risk assessment.
These are substantively the same as we identified in our
previous disclosures – consistent with business planning
considering the longer-term nature of owned buildings,
hotel refurbishment cycles and building depreciation.
These time horizons are found in the Strategy section.
Assessing risks
In 2023 MCK reported our climate-related risks and
opportunities as a high-level summary. This was reviewed
in 2024 and additional climate change assessments across
the whole hotel portfolio was conducted to address physical
and transition risks. The assessments used qualitative and
quantitative approaches and included workshops with the
Board and Management, surveys with internal stakeholders
and physical exposure and impact assessments conducted
by external experts.
Physical climate risks
In 2024 MCK engaged WSP to assess the physical exposure of
MCK’s hotels and land holdings to acute hazards and chronic
climate change variables.
29
WSP worked in collaboration with
the SSG and Hotel General Managers.
The exposure of MCK properties
30
to geohazards, including
landslides, flooding, sea level rise and coastal inundation and
erosion was assessed, as well as 15 climate variables including
temperature, rainfall and wind projections. The results of this
assessment can be found in the Strategy section.
A semi-quantitative risk assessment was then conducted to
assess climate-related physical risks. Geospatial analysis was
used to overlay property locations with climate-related hazard
data sourced from locally relevant and available sources.
31
Exposure was classified as no, low or high based on the
percentage of each property overlapping geohazard zones.
29. WSP New Zealand Limited is a professional services firm.
30. This includes 17 MCK owned and managed hotels and landholdings. It excludes
MCK franchises, Sofitel Brisbane and CDI landholdings and properties.
31. Sources include local government entities, the Institute of Geological and
Nuclear Sciences (GNS), and the National Institute of Water and Atmospheric
Research (NIWA).
RISK MANAGEMENT
Disclosure objective:
To enable primary users to understand how
an entity’s climate-related risks are identified,
assessed, and managed and how those
processes are integrated into existing risk
management processes.
Our process for identifying and assessing transition
and physical climate-related risks for our business.
Transition climate risks
A transition risk assessment is undertaken annually
by the SSG and the risk register updated by the Sustainability
Manager, with input from key stakeholders and external input
where required (i.e. in relation to physical risk exposure).
MCK has developed a bespoke climate-related transition risk
and opportunities rating criteria which defines significant,
moderate or limited/no business impacts as a result of specific
thresholds relating to profit, occupancy, delay/disruption or
degree of portfolio impacted. See Strategy section.
The SSG has worked with internal stakeholders, including
the senior management team and Hotel General Managers to
determine material transition risks. This assessment included
rating each risk per climate scenario (low, medium, high) and
documenting the rationale and relevant time horizon(s) for
each. The outputs of this process are incorporated into the
risk register.
Exposure ratings were then combined with vulnerability
thresholds, established through consultation with Hotel
managers, to determine risk ratings. Through this modelling,
each property has been assigned a qualitative physical risk
rating across these variables, which was then captured in our
risk register to enable MCK to prioritise sites that require the
most attention.
Acute
Climate-related
geohazards
Chronic
Climate Change
variables
Physical
Exposure
Impacts
Physical Risk
Risks
Strategic planning
Risk management
Financial impact
Opportunities
Trans it ion r isk s
• Policy and legal
• Technology
• Market
• Reputation
Opportunities
• Resource efficiency
• Energy source
• Products/services
• Markets
• Resilience
• Reputation
Physical risks
• Acute
• Chronic
Identifying risks
A scan to identify any additional climate-related risks beyond
those included in our 2023 disclosures was undertaken by the
SSG with reference to our selected climate change scenarios
across the key areas of the business (such as the business
model, supply chain/value chain, adaptation and mitigation
activities, access to capital, products and services, acquisitions/
divestments, and investment in research and development).
These were categorised by type (as per the following diagram)
and included a review of material risks identified by the
accommodation, hospitality, property and tourism industry
bodies. An expanded set of risks was then refined, agreed
for further assessment and inclusion in a new climate risk
register, and supplied to the Board for consideration.
New risks for inclusion in the climate risk register may be
identified by the SSG, senior management, Hotel General
Managers or other MCK staff for assessment on an ongoing basis.
28. Found on page 68 of our 2024 Annual Report: https://mckhotels.co.nz/investors/
wp-content/uploads/2025/03/MIL0022_Annual_Report_2024_Online.pdf
CONTENTS
INTRODUCTION
GOVERNANCE
STRATEGY
RISK MANAGEMENT
METRICS AND TARGETS
GLOSSARY
APPENDICES

3435MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
RISK MANAGEMENT
(CONTINUED)
Managing risks
The Board is ultimately responsible for the oversight
and implementation of the Company’s responses to risk
management. MCK’s Board, Audit Committee and
Management Team all have a role in identifying areas of risk
and understanding their impact on the Company, as well
as how these areas are to be managed and mitigated.
The SSG is tasked with reviewing and assessing MCK’s
climate-related risks at least annually. Transition and physical
climate-related risks that may impact the business are currently
captured in a dedicated climate risk register. Medium and high
rated risks will be considered and prioritised as part of strategic
planning and mitigations developed for high rated risks, at
a minimum.
MCK’s climate risk register has been developed as a tool to
support management to understand, track and respond to
exposure to climate-related risks. It consolidates information
on key risks, risk and opportunity ratings, and response
measures; as well as additional information on potential future
metrics and actions to mitigate risks, enhance resilience, and
will enable MCK to capitalise on opportunities.
The Audit Committee’s role is to review and report to the
Board on the adequacy of Management’s oversight and
implementation of risks with particular regard to financial
and operational risks.
As they are identified, new material climate-related risks are
raised by management to the Audit Committee. The Audit
Committee also has a responsibility to raise risks and will make
recommendations to the Board on how climate-related risks
should be managed. Material climate-related opportunities will
be explored by the relevant MCK department lead with support
from the SSG and are reported to the Board at their scheduled
meetings, as appropriate.
Value chain exclusions
Our value chain includes our business activities, resources
and relationships in the context of our external operating
environment. Following a materiality-based approach we
prioritise hotels and operations with the highest exposure and
climate impacts. We will continue to enhance our understanding
of climate-related risks and impacts by building our data
capability and capacity across our full value chain, including our
largest suppliers. Climate-related risks in our supply chain due
to emissions from material suppliers are not currently included
in our climate-related risk assessment and management
processes. This can be further explored once we report on
additional scope 3 emissions in the future. For clarity,
while MCK has a majority shareholding in CDI, they are a
separate CRE and so have not been included MCK’s value
chain reporting.
Integration into overall risk management framework
Material risks to the business are reported to the Board
through the Audit Committee. MCK has a framework in place
to assess key business risks and intends to incorporate climate
and sustainability risks into the framework.
MCK recognises that climate and sustainability risks often
drive other risks, reinforcing the need for integrated risk
management. We plan to continue to refine and strengthen our
approach to assessing climate-related risks and opportunities
over time. For 2025, this will focus on improving our definition
and responses to transition risks and opportunities including
our influence on indirect (scope 3) emissions related risks.
As MCK continues to develop its risk management framework,
it will have an opportunity to streamline its climate and
business risk management processes by leveraging risk
assessment tools and methods that apply to both and
non-climate risks.
MCK climate-related risk management process
RISK MANAGEMENT
Physical climate risk
and asset vulnerability
assessment
Transition climate
risk identification
Transition climate
opportunities
identification
Parties involved:
Collaboration
across the business
with support from
external experts
Parties involved:
Workshops with
the Sustainability
Steering Group,
Senior management
team and hotel GMs
Parties involved:
Sustainability Steering Group, VP Legal, Sustainability Manager
and Audit Committee and Board
Climate-related risk
and opportunities
prioritisation
across scenarios
and time horizons
Climate-related
risk and opportunities
captured in
risk register
Existing measures
and mitigation
actions identified
and responsibility
allocated
Material
climate-related
risk and opportunities
reported to the
Audit Committee
and the Board; and
disclosed annually
Climate-related risk
and opportunities
regularly managed,
updated and
integrated into
Company risk
management system
Beast and Butterflies Restaurant, M Social Auckland.
CONTENTS
INTRODUCTION
GOVERNANCE
STRATEGY
RISK MANAGEMENT
METRICS AND TARGETS
GLOSSARY
APPENDICES

373736MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT36
METRICS
& TARGE TS
Left: Copthorne Rotorua.

3839MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
METRICS & TARGETS
Greenhouse gas emissions
This provides a summary of our MCK’s carbon footprint –
greenhouse gas emissions for 2024. Our full greenhouse gas
inventory can be found in Appendix B.
For the reporting period 1 January 2024 to 31 December 2024
MCK’s emissions have been measured and the greenhouse gas
emission inventory (GHG inventory) prepared in accordance with
the GHG Protocol Standards
32
and ISO 14064-1:2018 standard.
32. https://ghgprotocol.org/standards-guidance This includes: The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (revised edition);
the Greenhouse Gas Protocol: GHG Protocol Scope 2 Guidance: An amendment to the GHG Protocol Corporate Standard; and the Greenhouse
Gas Protocol: Corporate Value Chain (Scope 3) Accounting and Reporting Standard.
33. As certified by Toit
ū, recalculated from the original FY23 inventory of 4146.19tCO
2
e refer to Appendix B for further detail.
34. Market-based emissions from imported energy are calculated as 1,388tCO
2
e (compared with 1,353tCO
2
e in 2023), nominally the same as location-based
as no Renewable Energy Certificates have been purchased.
35. MCK has elected to disclose FY24 a partial scope 3 emissions footprint (as required by the Toitū programme, where quantifiable data is available). Where data is
not yet available, Adoption Provision 4: Scope 3 GHG emissions in the NZ Climate Standard 2 is applied for the remaining material Scope 3 items in our value chain.
36. Restated from the original FY23 inventory of 4146.tCO
2
e as published in 2023.
GHG sub
category
ISO
category
Emissions
source
DescriptionFY23 restated
33

tCO
2
e
FY24
tCO
2
e
Scope 1: Direct emissions3,3453,686
1Mobile combustion Fuel used in company leased vehicles79123
1Fugitive emissionsLosses including from refrigeration and air-conditioning units242240
1Stationary combustion Hotel natural gas combustion 1,8641,979
Hotel LPG consumption1,1601,344
Scope 2: Indirect emissions from purchased electricity1,3591,370
2Imported electricity
(location-based)
34
Electricity consumption from
hotels and support office
1,3591,370
Scope 3: Indirect emissions from value chain
35
1,026 1,059
C14Purchased goods
and services
Potable water supply (only)710
C34Fuel and energy-
related activities
Transmission and distribution (T&D) losses from
purchased electricity and natural gas
210173
C54Waste generated
in operations
Disposal of office and hotel solid waste – landfilled528582
Disposal of solid waste – not landfilled: recycling processed:
cardboard, mixed plastics, glass and comingled materials
122114
Disposal of solid waste – not landfilled: composted food
scraps and garden waste
89
C63Business travelTransport (non-company owned vehicles) – air travel,
rental vehicles and taxi
151171
Tot al5,730
36
6,115
METRICS AND TARGETS
Disclosure objective:
To enable primary users to understand how an
entity measures and manages its climate-related
risks and opportunities. Metrics and targets also
provide a basis upon which primary users can
compare entities within a sector or industry.
The metrics and targets we use to manage our
climate-related risks and opportunities.
Millennium and Copthorne Hotels New Zealand Ltd Greenhouse Gas Emissions
Total 2024 emissions = 6,115 tCO
2
e
60%
3,686 tCO
2
e
23%
1,370 tCO
2
e
17%
1,059 tCO
2
e
Supporting information on emissions calculation methods, estimations, exclusions, sources of emissions
factors and data quality, sources and controls is found in the full GHG inventory report in Appendix B.
Scope 1
• Mobile combustion
• Fugitive emissions
• Stationary combustion
Scope 2
• Imported electricity
(location-based)
Scope 3
• Purchased goods and services
• Fuel and energy-related activities
• Waste generated in operations
• Business travel
Cultural performance, Millennium Rotorua.
CONTENTS
INTRODUCTION
GOVERNANCE
STRATEGY
RISK MANAGEMENT
METRICS AND TARGETS
GLOSSARY
APPENDICES

4041MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
METRICS & TARGETS
(CONTINUED)
Organisational boundary and consolidation approach
Millennium & Copthorne Hotels New Zealand Limited (MCK)
and its subsidiaries (either wholly or majority owned) are
included in our organisational greenhouse gas reporting
boundary (unless deemed de minimis). This includes direct
operational emissions from 16 owned and managed hotels
within MCK’s portfolio (excluding hotel franchises), CDL
Investments New Zealand Limited
37
and MCK’s support offices.
In the 2024 reporting period an operational control approach
was applied to the organisational boundary and GHG inventory.
Our previous (2023) base year inventory reported used an
equity share approach.
38
This change was made in keeping with
the GHG Protocol reporting standards and in accordance with
our Base year recalculation policy, to better reflect the nature
of the hotel operations; direct control over sources of emissions;
industry practice; and alignment with parent company
methodology and reporting.
Base year restatement
In FY24 an update was made to our 2023 base year to account
for changes to the organisational boundary, calculation
methodologies and errors. This ensures MCK’s GHG Inventory
remains relevant, complete, consistent, transparent and
accurate in line with the GHG Protocol. See Appendix B for
further information on the justification and recalculation of
the base year. Our base year has been assured and recertified
by Toi t
ū.
Assurance
KPMG have provided limited assurance over the reported
Scope 1, 2 and 3 emissions for the 2024 reporting period as
contained in Appendix B. This assurance engagement was
undertaken in accordance with New Zealand Standard on
Assurance Engagements 1 (NZ SAE 1) Assurance Engagements
over Greenhouse Gas Emissions Disclosures and International
Standard on Assurance Engagements (New Zealand) 3410
Assurance Engagements on Greenhouse Gas Statements
(ISAE (NZ) 3410) issued by the New Zealand Auditing and
Assurance Standards Board (Standard). See KPMG’s opinion
which includes the scope of their work in Appendix C.
Certification
As part of our commitment to climate action MCK participates
in the voluntary Toit
ū Carbon Reduce certification programme.
This programme requires we adhere to a set of standards and
rules on an annual basis. In 2023, MCK achieved Toitū Carbon
Reduce certification
39
for the first time for our greenhouse gas
inventory, which was a critical step in measuring our impact
and meeting our climate-related disclosure obligations. In
2024 we recertified our base year GHG inventory and received
certification for our FY24 GHG inventory.
Toi t
ū Carbon Reduce certified organisation: Millennium &
Copthorne Hotels New Zealand Limited.
40
Toi tū Carbon Reduce
certified means measuring emissions to ISO 14064-1:2018
and Toi tū requirements; and managing and reducing against
Toi t
ū requirements.
Trend analysis and comparison to base year
Accounting for the base year restatement, there was an
increase in emissions between the 2023 base year and 2024
of 385tCO
2
e across scopes 1, 2 & 3, as a result of operational
activities. The main emissions sources in 2024 were hotel
consumption of energy – natural gas, LPG and electricity for
heating, cooling and cooking; followed by waste generation
and air travel. A 6.7% increase in emissions is in part due to an
increase in owned and managed hotel occupancy rates over
this period. The largest sources of emissions responsible for
this increase were increased gas usage, waste generation
and air travel.
Emissions intensity by operating revenue reduced from 2023
to 2024 (11%); and slightly increased per room (>4%) and per
square metre (>7%). Beyond this comparison to the year prior
(our base year) we do not have complete data sets to provide
any further portfolio trend analysis.
Currently MCK does not purchase carbon credits or off-set
emissions in other ways, but may explore options in the future.
Other activity metrics and comparisons
In addition to emissions, we also track energy and water
consumption and waste generated absolute and intensity
measures for the business and at a hotel level (e.g. per room).
These all saw an increase from 2023 to 2024 largely due to
increasing guest numbers returning closer to pre-COVID
levels. An example of this is a small increase in waste across
the hotel portfolio, resulting in the overall percentage of
waste diverted from landfill to recycling and composting,
decreasing from 28% in 2023 to 26% in 2024.
We are seeking global and NZ hotel emissions intensity
benchmarks and are undergoing comparative analysis
across our portfolio to identify hotspots (where we can
make emissions reductions), which also supports our
transition planning and target setting.
37. CDL Investments New Zealand Ltd is majority owned by Millennium & Copthorne Hotels New Zealand Ltd.
38. The consolidation approach was retrospectively applied to reflect an operation control approach as part of our 2023 base year recalculation.
39. Toitū Envirocare is a wholly-owned subsidiary of Manaaki Whenua – Landcare Research, a Government-owned Crown Research Institute. Developed for New Zealand
business needs, they comprise of a team of scientists and business experts who have come together to protect the ecological and economic future, with over 800
clients worldwide.
40. Excluding emissions from Millennium Hotel & Resort Manuels Taupo and Copthorne Hotel & Resort Solway Park Wairarapa under operational control approach.
METRICS AND TARGETS
GHG inventory improvement
In 2024 MCK elected to disclose FY24 scope 3 emissions in
some categories, as required by the Toitū programme, where
quantifiable data is available (where data is not yet available,
Adoption Provision 4: Scope 3 GHG emissions applies). However,
we have commenced measuring our indirect scope 3 sources of
emissions. We conducted our first staff travel survey, started
working with franchisees to source data, and started capturing
spend-data for a range of products and services used by the
business. Based on our current understanding of our material
sources of emission (informed by the hospitality sector) we
anticipate the following areas are likely to be material for
future reporting.
Scope 3
Upstream activities
Indirect value chain emissions
Scope 3
Downstream activities
Indirect value chain emissions
MaterialPossibly material
Likely immaterialCurrently measured
Capital
goods
2
Investments
15
Processing of
sold products
10
Franchises
14
Leased
assets
13
End-of-life treatment
for sold products
12
Use of
sold products
11
Fuel and
energy related
3
Leased
assets
8
Purchased goods
and services
1
Business
travel
6
Transportation
and distribution
4
Transportation
and distribution
9
Employee
commute
7
Waste from
operations
5
CONTENTS
INTRODUCTION
GOVERNANCE
STRATEGY
RISK MANAGEMENT
METRICS AND TARGETS
GLOSSARY
APPENDICES

4243MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
METRICS & TARGETS
(CONTINUED)
Other climate-related metrics
MCK uses a range of key metrics including industry-based
metrics to measure and manage our climate-related impacts,
risks and opportunities. The following metrics demonstrate
MCK’s progress to embed key criteria into our climate reporting.
Improving metrics and indicators overtime
MCK has chosen to not establish an internal emission price
(price per metric tonne of CO
2
e used internally by an entity $/
tCO
2
e). We may choose to set this in the future, as we see the
potential benefit of this mechanism in creating a financial
incentive to reduce emissions. Either by using it as a ‘shadow
price’, i.e. factoring in these costs when making long-term
investments or by charging a fee to internal business units
based on their emissions. This can be reassessed once formal
targets have been agreed and established.
In the future we intend to explore inclusion of early-stage
planning to guide refurbishment projects and new development,
incorporating climate risk mitigation at the early design
stage and through project delivery. MCK is also considering
incorporating climate screening into existing due diligence
and decision-making processes for new site acquisitions to
understand and account for current and anticipated climate-
related risks.
Management or director remuneration linked to climate-related
risks and opportunities has not yet been set. This can be
explored once formal targets have been agreed and established.
Targets
MCK currently has no formal company-wide targets in place
for GHG reduction or to manage climate-related risks and
opportunities, and performance.
Our emission reduction targets in relation to the New Zealand
hotel portfolio are currently under development and it is
anticipated that near and long-term targets will be formally
set in 2025.
Emissions from NZ hotels contribute to the group emissions
footprint. In 2019, Millennium & Copthorne Hotels Limited
49

set a Science-Based Target to reduce the Group’s carbon
emission by 27% by 2030, from a 2017 base year.
MCK has not yet determined whether targets will be on an
intensity or absolute basis. Targets for energy use (electricity
and gas), waste reduction/recycling and water consumption at
hotels and office premises are also being explored. In order to
demonstrate our contribution to limiting global warming, we
intend to set targets aligned with a science-based approach,
limiting warming to 1.5 degrees Celsius.
41. Includes MCK hotel and CDI revenue as reported in the 2024 Annual Report:
https://mckhotels.co.nz/investors/wp-content/uploads/2025/03/MIL0022_Annual_Report_2024_Online.pdf
42. Updated for FY23 based on the 2023 base year recalculation undertaken in 2024.
43. Uses available hotel rooms per year, includes emissions from hotel portfolio and support office; excludes CDL Investments New Zealand Ltd.
44. Uses gross floor area of the building, includes emissions from hotel portfolio and support offices; excludes CDL Investments New Zealand Ltd.
45. See Strategy section for how this proxy measure is determined, reported for the first time in FY24.
46. See Strategy section for how this is determined, reported for the first time in FY24.
47. Reported for the first time in FY24. CDI separately reports on capital deployment within its climate-related disclosures.
48. This excludes staff salaries; accreditation, assurance and audit fees and contractor costs for quantifying and verifying our GHG emissions;
and costs relating to climate-related disclosures and sustainability reporting.
49. Millennium & Copthorne Hotels Limited, formerly known as Millennium &
Copthorne Hotels plc., which owns, manages and operates over 130 properties
across 80 destinations.
Focus areaMetricDescriptionFY23FY24
GHG Emissions
Intensity
By operating revenueThe amount of greenhouse gas emissions produced per
dollar of Company operating revenue
41
[gross tCO
2
e/$millions].
43.46
42
38.56
Per available hotel
room (PAR)
The amount of greenhouse gas emissions produced per
available room
43
[gross tCO
2
e/room] industry metric.
2.74 2.84
Per square metreThe amount of greenhouse gas emissions produced per
square meter of hotel building
44
[gross kgCO
2
e/m
2
]
industry metric.
34 36
Climate-related riskHotel asset physical
vulnerability
Percentage of hotel and landholding property assets
vulnerable to physical risk including flooding, coastal
erosion, landslides, coastal inundation and sea level rise.
45
54%
Hotel portfolio
transition risk
Percentage of hotel assets or business activities
vulnerable to transition risks.
46
18%
FinanceCapital deploymentDollar value of capital expenditure, financing, or investment
deployed toward climate-related risks and opportunities.
47
$2,980,000
Dollar value of professional services spend related
to climate-related risks and opportunities.
48
$0$49,700
METRICS AND TARGETS
Qualmark
Currently 12 hotels within the NZ group hold Qualmark silver
status meeting their Sustainable Tourism Business criteria.
Qualmark are officially recognised by the Global Sustainable
Tourism Council, so our NZ hotels with Qualmark rating are
recognised as meeting their global sustainability standards.
Copthorne Hotel and Resort Bay of Islands.
CONTENTS
INTRODUCTION
GOVERNANCE
STRATEGY
RISK MANAGEMENT
METRICS AND TARGETS
GLOSSARY
APPENDICES

454544MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
44
GLOSSARY
Left: Kingsgate Hotel Paihia.

4647MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
GLOSSARY
GLOSSARY
Term Definition
Adaptation
A process of adjustment to actual or expected climate and its effects, in order to moderate harm or
exploit beneficial opportunities.
Aotearoa New Zealand
Climate Standards (NZCS)
Standards issued by the External Reporting Board that comprise the climate-related disclosure
framework, including NZCS1, NZCS2 and NZCS 3.
Base year
A historic date, specified year, against which an entity’s metric is tracked over time.
Carbon dioxide equivalent (CO
2
e)
The universal unit of measurement to indicate the global warming potential of each of the seven GHGs,
expressed in terms of the global warming potential of one unit of carbon dioxide for 100 years. It is
used to evaluate releasing (or avoiding releasing) any GHGs against a common basis. Usually expressed
in this Statement in tonnes (t).
Carbon price
Price assign for avoided or released carbon dioxide (CO
2
) or CO
2
-equivalent emissions. This may refer
to the rate of a carbon tax, or the price of emission permits. In many models that are used to assess
the economic costs of mitigation, carbon prices are used as a proxy to represent the level of effort in
mitigation policies.
Climate-related impacts
The effects (also referred to as consequences or outcomes) of climate change occurring for an entity,
including as a result of physical or transition risks. These effects will, in turn, depend on the impacts
of climate change on the broader socioeconomic and ecological systems an entity operates within
(including an entity’s value chain).
Climate-related disclosures
Contained within this Climate Statement – required to fulfil the Climate-related disclosure regulations
framework as set out in section 9AA of the Financial Reporting Act 2013.
CRE
Climate-reporting entity. Institutions covered by the Financial Markets Conduct Act 2013 (FMC Act)
that are required to publish climate-related disclosures in accordance with climate standards published
by the External Reporting Board (XRB).
Climate-related financial impacts
The translation of climate-related impacts or risks into current or anticipated impacts on financial
performance, financial position and cash flows.
Climate-related geohazard
Hazards specifically related to geological or environmental processes that may be influenced
by climate change factors such as changes to rainfall, these include:
• Sea Level Rise: Long term increase in sea level based on global sea level rise projections
and local vertical land movement. There are different sea level rise hazards based on each
IPCC climate change scenarios.
• Coastal Inundation: Short term coastal flooding, typically occurring during storms. Contributed to
by: wind induced waves, short-term sea-level rise (due to a steep atmospheric pressure gradient),
and tidal changes.
• Coastal Erosion: Erosion or loss of the coastline due to actions of the sea. This can be exacerbated
by both sea level rise and coastal inundation.
• Rainfall induced landslides: Collapse of a mass of earth or rock from a mountain or cliff caused
by rain.
• Flooding: Covering or submerging of normally dry land/area caused by both pluvial
(rainfall induced) and fluvial (river related) sources.
Climate-related opportunity
Potential positive climate-related outcomes for an entity. Efforts to mitigate and adapt to climate
change can produce opportunities for entities, such as through resource efficiency and cost savings,
the adoption and utilisation of low-emissions energy sources, the development of new products
and services, and building resilience along the value chain.
Climate-related risk
The potential negative impact of climate change on an entity.
Climate scenario
A plausible, challenging description of how the future may develop based on a coherent and internally
consistent set of assumptions about key driving forces and relationships covering both physical and
transition risks in an integrated manner. Climate-related scenarios are not intended to be probabilistic
or predictive, or to identify the ‘most likely’ outcome(s) of climate change. They are intended to provide
an opportunity for entities to develop their internal capacity to better understand and prepare for the
uncertain future impacts of climate change.
Note: Within scenario titles, the degrees Celsius (e.g. 1.5°C, 2.0°C, 3.0°C) refers to the global average
temperature increase above pre-industrial levels. Regional and local temperature changes may vary
from the global average.
Climate variables
Physical aspects of climate that exhibit a measurable change overtime including but not limited
to, air temperature, number of very hot days, hottest day, solar radiation, coldest day, heavy rain,
number of very rainy days, number of dry days, and strong wind.
Decarbonise
The process of reducing or eliminating carbon dioxide emissions from a process such as manufacturing
products, production of energy or other utility-use.
These defined terms are used in our climate-related disclosures. These definitions are aligned with those used by the XRB and the IPCC.
Term Definition
EmissionsThe release of greenhouse gases and/or their precursors into the atmosphere over a specified area
and period of time. Greenhouse gases (GHG) are gaseous constituents of the atmosphere, both natural
and anthropogenic, that absorb and emit radiation at specific wavelengths within the spectrum of
radiation emitted by the Earth’s surface, by the atmosphere itself, and by clouds. This property causes
the greenhouse effect.
Emissions intensityAn emissions intensity figure or ratio quantifies the amount of greenhouse gas emissions produced
per unit of activity or unity of economic output. Often used to compare entities, it can be expressed
as emissions per square metre of building space or per $ revenue generated, indicating the carbon
footprint associated with that output. A reducing intensity ratio indicates a performance improvement.
ESGEnvironmental, Social and Governance, refers to collective corporate performance of a company’s
governance mechanisms and its ability to effectively manage its environmental and social impacts.
Exposure The nature and degree to which a system or property is exposed to significant climate variations.
Extreme weather event An event that is rare at a particular place. Definitions of “rare” vary, but an extreme weather event
would normally be as rare as or rarer than the 10th or 90th percentile. The characteristics of what
is called “extreme weather” may vary from place to place. An “extreme climate event” is an average
of a number of weather events over a certain period of time, an average which is itself extreme
(e.g., rainfall over a season).
Fossil fuelsCarbon-based fuels from fossil hydrocarbon deposits, including coal, oil and natural gas.
Greenhouse gas (GHG)Includes the greenhouse gases listed in the Kyoto Protocol: carbon dioxide (CO
2
); methane (CH
4
),
nitrous oxide (N
2
O), hydrofluorocarbons (HFCs), nitrogen trifluoride (NF
3
), perfluorocarbons.
GHG ProtocolThe Greenhouse Gas Protocol, which includes: A Corporate Accounting and Reporting Standard
(revised edition); the Greenhouse Gas Protocol: GHG Protocol Scope 2 Guidance: An amendment
to the GHG Protocol Corporate Standard; and the Greenhouse Gas Protocol: Corporate Value Chain
(Scope 3) Accounting and Reporting Standard.
Hazard The potential occurrence of a natural or human-induced physical event that may cause loss of life,
injury, or other health impacts, as well as damage and loss to property, infrastructure, livelihoods,
service provision, and environmental resources.
Materiality The XRB defines information as material if omitting, misstating, or obscuring it could reasonably
be expected to influence decisions that primary users make based on an entity’s climate-related
disclosures.
MitigationAn action (human intervention) taken to reduce emissions or enhance the sinks of greenhouse gases.
Physical risks Risks related to the physical impacts of climate change. Physical risks emanating from
climate change can be:
• Acute: event-driven, such as increased severity of extreme weather events.
• Chronic: relating to longer-term shifts in climate-related precipitation and temperature
and increased variability in weather patterns, such as sea level rise.
ResilienceThe capacity of interconnected systems or an entity to cope with a hazardous event, trend
or disturbance, responding or reorganising to maintain their essential function or identity.
Risk management framework A process led by an entity’s Board and Management to identify, assess, and manage risks within
its risk appetite, ensuring strategic and operational objectives are met (also known as Enterprise
Risk Management).
Scope 1, 2 & 3 emissionsScope 1: Direct GHG emissions from sources owned or controlled by the entity.
Scope 2: Indirect GHG emissions from consumption of purchased electricity, heat, or steam.
Scope 3: Indirect GHG emissions that are not produced by the entity itself and are not the
result of activities from assets owned or controlled by them, but by those that it is indirectly
responsible for upstream and downstream within the business value chain.
Transition planAn aspect of an entity’s overall strategy that describes an entity’s targets, including any interim
targets, and actions for its transition towards a low-emissions, climate-resilient future. Transition
planning is an internal process to reposition and transform the business model and strategy in
response to climate-related risks and opportunities allowing it to operate, generate sustainable
revenue, protect its assets, and finance itself in a low-emissions, climate-resilient future.
Transition risksRisks related to the transition to a low-emissions, climate-resilient global and domestic economy,
such as policy, legal, technology, market and reputation changes associated with the mitigation
and adaptation requirements relating to climate change.
Vulnerability The propensity of exposed elements, such as human beings, their livelihoods, and assets
to suffer adverse effects when impacted by hazard events.
CONTENTS
INTRODUCTION
GOVERNANCE
STRATEGY
RISK MANAGEMENT
METRICS AND TARGETS
GLOSSARY
APPENDICES

48MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
GLOSSARY
Organisation/GroupName and description
MCK Millennium & Copthorne Hotels New Zealand Ltd, NZX listed company.
CDICDL Investments New Zealand Limited, NZX listed company.
Governing Body Millennium & Copthorne Hotels New Zealand Ltd Board of Directors.
SSGMCK Sustainability Steering Group - responsible for setting direction on sustainability for
the business and sourcing and agreeing the information required to ensure climate-related
disclosures are compliant.
FMAFinancial Markets Authority, body that regulates financial markets in New Zealand,
including the regulation of the New Zealand Climate Standards.
KPMGCompany engaged to provide assurance for MCK’s GHG inventory under NZCS.
IPCCIntergovernmental Panel on Climate Change, the United Nations body for assessing the science related
to climate change. They publish global climate models and greenhouse gas concentration trajectories.
MfEMinistry for the Environment, government body responsible for publishing NZ climate
change projections, NZ emissions factors and national emissions reduction plans.
NIWANational Institute of Water and Atmospheric Research, a Crown Research Institute
that update and release climate projections for NZ in conjunction with MfE.
Toit
ūū
Toit
ū Envirocare, are engaged to provide certification of MCK’s GHG inventory. They are a provider of
carbon management certifications for New Zealand businesses. The organisation is a subsidiary of
Crown Research Institute, Manaaki Whenua – Landcare Research.
WSPWSP New Zealand Ltd, a professional services firm engaged to provide climate change risk assessment
for MCK’s portfolio, including exposure of hotels and landholdings to acute and chronic climate-related
geohazards and climate variables.
XRBExternal Reporting Board, the organisation which develops and issues reporting standards on
accounting, audit and assurance, and climate, for entities across the private, public, and not-for profit
sectors. They develop and issue the New Zealand Climate Standards.
49GLOSSARY
CONTENTS
INTRODUCTION
GOVERNANCE
STRATEGY
RISK MANAGEMENT
METRICS AND TARGETS
GLOSSARY
APPENDICES
Right: Millennium Queenstown.

515150MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
APPENDICES
Left: Millennium Ballroom, Grand Millennium Auckland.

5253MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
APPENDIX A
CLIMATE SCENARIOS
APPENDICES: A. CLIMATE SCENARIOS
1. Scenario characteristics detailed in both the Tourism Sector Climate Scenarios and the Construction
and Property Sector Climate Scenarios have been referenced in our scenario analyses.
2. This assumes that existing policy in place and signalled (but not enacted) is sufficient to achieve 1.5 degrees
(as outlined in the 2026-2030 Emissions Reduction Plan: https://environment.govt.nz/publications/new-zealands-second-emissions-reduction-plan
3. Tourism Export Council NZ Forecast based on Stats NZ IVA Top 30 Countries Annual International (Updated 29 January 2025).
4. https://environment.govt.nz/facts-and-science/climate-change/climate-change-projections/climate-projections-insights-and-publications/
5. Drawn from the Tourism Sector Climate Scenarios unless otherwise stated (sea level rise relative to 2005; number of hot days
and rainfall figures are 2040 relative to 1990).
6. Drawn from the Construction and Property Sector Climate Scenarios.
Key drivers
Enabling regulations; reduced implementation costs and increased availability of technology, low-emissions fuel and material alternatives;
some international trade requirements; the need for business resilience to increasing acute weather events; and customer expectations for
low-emissions services.
Global
narrative
Climate change action is taken in the mid-2020s as nations deliver on near and long-term climate targets, budgets and plans, resulting rapid
policy intervention and some industry incentives. From 2030 steady decarbonisation occurs in countries overseas, initially more so in Europe and
Asia, than in the US (following an initial withdrawal from the Paris Agreement in 2025), resulting in pressure on NZ businesses to reduce emissions.
Government
policy
Emissions Reduction Plans form basis of government policy, which until 2030 focuses on technology development rather than policy or levies to
mitigate emissions associated with building or travel.
2
Built environment is reintroduced into NZ emissions reduction plans to contribute to national
carbon budgets from 2030. Over time a cohesive suite of climate policies becomes progressively more stringent, and the carbon price ramps up
towards 2050. Energy and carbon caps are phased in the short-medium term. Increased government regulations such as bans on new gas connections
for commercial buildings occur in the early 2030’s, and adoption of low-emissions technology, energy-efficient buildings and electric vehicles
become wide-spread as financial and technology barriers decrease. Post 2030 building standards mandate the use of low-carbon and low-waste
materials and construction methods. Existing buildings must disclose energy and carbon performance and take steps to reduce or eliminate fossil
fuels for operation and scale up energy efficiency. Whole of life carbon emissions reductions for buildings are phased in, with 90% required by 2050.
Infrastructure
and Energy
There’s a shift to modular and circular building design as well as existing building re-use, refurbishment and adaptive re-use rather than new
builds. Obtaining insurance is harder for buildings with high exposure to climate impacts post 2030. Private and public sector investment helps
to strengthen infrastructure, including accommodation, roading, EV charging network and airports from the late 2020’s. Pressures on centralised
infrastructure as electrification increases from mid-2030’s, as fossil fuel power stations close (or are reserved for back-up only). Alternative/
renewable energy sources become increasingly available and uptake more widespread. Energy supply is mostly or totally decarbonised with
close to 100% of electricity supply from renewable sources by 2050.
NZ tourism
and travel
behaviour
Tourism practices until 2030 are similar to today in that people will continue to travel for business and recreation to and within New Zealand via
aircraft, cruise ships, bus tour and rental vehicles. Short-term increase in international tourism to pre-COVID levels of ~4m annual visitor arrivals
in 2027.
3
Guest expectations ramp up from 2030, resulting in more demand for sustainable accommodation, requiring energy efficient buildings, low
emissions practices and offerings, more public transport and more emphasis on circular business models. There is a shift in focus towards reduced
long-haul flights, low-carbon, sustainable tourism experiences. Investment and capital is available to support this, along with regenerative forms
of tourism from 2030 onwards. There is widespread recognition of action taken by the tourism and accommodation industries by 2040. An increased
social awareness of high-emission travel and recreation means that local staycations and offsetting travel start to become more common place. The
tourism sector is thriving by 2050, with visitors choosing New Zealand for unique low-impact experiences. Through the uptake of sustainable fuels
by 2050 aviation is mostly decarbonised. In 2050 domestic travel makes up a larger part of visitor expenditure. International visitors still come,
mostly from short and medium-haul markets, for longer stays. Over the long-term the mix of customers changes as long-haul air travel reduces due
to increased costs, increased connectivity/online trading, climate change awareness and changing weather patterns. In 2050 and beyond the NZ
tourism sector, including the accommodation and hospitality industries, champion sustainable tourism with a low environmental footprint.
Physical
environment
The physical climate is similar to today but with increasing flooding and weather events, particularly from 2050 onwards. The range of annual
average temperatures across Aotearoa are between 0.3°C and 1.2°C warmer by 2030, between 0.6°C and 2.1°C warmer by 2050, and between 0.7°C
and 4.6°C warmer by 2090.
4
More hot days, when maximum daily temperatures are over 25 ̊C, will occur for most of New Zealand, with the north and
east North Island projected to experience the most change. While some extreme weather events still occur, only highly exposed properties
are materially impacted.
Key 2050
Indicators
5
Sea level
rise
NZ native
forestry
Number of hot
day s >25C
Extreme
rainfall
Whole of life building emission
reduction requirement
6
Carbon
price
NZ net
emissions
0.2m0.8mha+1 5 d a y s+1 5 % 90%
$277
$NZD/tonne
6MtCO
2
e
Under an Orderly scenario, there is a pathway to global sustainability which is achievable but still assumes global warming continues, due to
increased greenhouse gas emissions. This is the most optimistic scenario but is not guaranteed and the effects of global warming will continue
to be felt. Key assumptions
1
under an Orderly scenario include:
Policy Ambition
1.5°C
Physical Risk
Severity
Moderate
Policy Reaction
Immediate

and smooth
Transition Risk
Severity
Moderate to high
Technology Change
Fast
Socio-political
Instability
Low to Moderate
Behaviour Change
Fast
1.5°C Orderly Scenario – Net zero 2050
A world where global warming is successfully limited to 1.5 degrees above preindustrial levels, as ambitious
goals and policies to reduce greenhouse gas emissions are immediately and effectively implemented.
Policy Ambition
<2.0°C
Physical Risk
Severity
Moderate
Policy Reaction
Delayed
Transition Risk
Severity
High
Technology Change
Slow, then fast
Socio-political
Instability
Moderate
Behaviour Change
Slow, then fast
2.0°C Disorderly Scenario – Delayed transition
A world where global warming is limited to 2.0 degrees above preindustrial levels, as policies to reduce greenhouse
gas emissions are introduced after 2030. There is a rapid and concerted effort to reach net zero 2050 goals.
Key drivers
Mitigation regulations and international trade requirements post 2040; increasing energy and travel costs; and a need for business response to
abrupt change in policy and increasing acute weather events.
Global
narrative
There is little policy action until mid to late 2030s, after which rapid action and the introduction of new policies occurs. Most countries continue
to use fossil-fuels and carbon intensive practices continue, so emissions do not decrease and carbon budgets are not met.
Government
policy
New policies to mitigate climate change are not introduced until the mid-2030’s. Although there is a lack of cohesive policy settings, abrupt
policy and market changes for the property and construction sector occur. Tourism is not considered a priority sector for government intervention
or investment, and initially there is no concerted effort to regulate to reduce emissions (stronger social drivers prompt some business change).
Restrictions on air travel are introduced towards 2040 (such as frequent flyer levies and caps on aircraft movements). While there is no change
to the carbon price up to 2030 there’s a steep increase onwards through to 2050.
Infrastructure
and Energy
About 75% of total energy consumed is renewable by 2030. Demand for electricity surges in the 2030s as Aotearoa New Zealand rushes to
electrify networks such as transport networks. The electricity sector may not be prepared for this sudden shift and there are delays or shifts in
expanding the grid during the 2030s which might lead to supply constraints, blackouts or supply restrictions, and price fluctuations as a result.
There are a lack of financial incentives to decarbonise until around 2040.
Policy changes imposed from the late 2030s demand immediate changes in building energy and carbon requirements. Limited investment in low
carbon materials in the 2020s causes spikes in demand in the 2030s for these products, resulting in disruption within the sector and escalation in
costs to build and maintain properties.
Pressures on centralised infrastructure increase due to densification and physical climate risks. Spatial planning responses are inconsistent and
managed retreat occurs. This causes uncertainty for the construction and property sector, as assets become stranded prior to 2050.
NZ tourism
and travel
behaviour
Tourism practices in the 2030’s are similar to today but the need to address climate issues has affected several businesses as they are unable to
attract the same number or type of customers than before. Tourism practices start to change around 2040 once there is a late focus on reducing
emissions and one way that this is seen is a reduction in long-haul travel. Domestic tourism makes up the majority of visitor spend as expensive
long-haul travel dramatically declines.
Capital and insurance are more difficult to obtain for some coastal and low-lying areas or high-carbon operations post 2035. Business costs
have increased due to the steep rise in the carbon price post 2035; coupled with the need to factor in adaptation or mitigation measures in short
timeframes. Some tourism operators unable to adapt, deemed to be high-emission activities or heavily reliant on our natural environment may
no longer be able to continue. Much of the NZ tourism sector is struggling by 2050.
Physical
environment
The physical climate is similar to today but with increasing flooding and fire weather events. New Zealand will see an increase in extreme weather
events and increased vulnerability to assets and infrastructure. Weather events are causing more disruptions throughout business supply chains.
Extreme weather events require infrastructure responses (i.e. roading network and hotel resilience measures and repairs), which continue to
exacerbate disruptions to travel and hotel occupancy over time.
Key 2050
Indicators
8
Sea level
rise
NZ native
forestry
Number of hot
day s >25C
Extreme
rainfall
Whole of life building emission
reduction requirement
9
Carbon
price
NZ net
emissions
0.22m0.5mha+20 days+1 8 %80%
$369
$NZD/tonne
24MtCO
2
e
Under a Disorderly scenario, a pathway to global sustainability is less achievable without the effects of climate change becoming exacerbated,
increasing over the mid to long term. This scenario is characterised by a rush to decarbonise after 2030. Key assumptions
7
under a Disorderly
scenario include:
7. Scenario characteristics detailed in both the Tourism Sector Climate Scenarios
and the Construction and Property Sector Climate Scenarios have been
referenced in our scenario analyses.
8. Drawn from the Tourism Sector Climate Scenarios unless otherwise stated
(sea level rise relative to 2005; number of hot days and rainfall figures are
2040 relative to 1990).
9. Drawn from the Construction and Property Sector Climate Scenarios.
CONTENTS
INTRODUCTION
GOVERNANCE
STRATEGY
RISK MANAGEMENT
METRICS AND TARGETS
GLOSSARY
APPENDICES

54MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
APPENDIX A
CLIMATE SCENARIOS
10. Scenario characteristics detailed in both the Tourism Sector Climate Scenarios
and the Construction and Property Sector Climate Scenarios have been
referenced in our scenario analyses.
11. Drawn from the Tourism Sector Climate Scenarios unless otherwise stated
(sea level rise relative to 2005; number of hot days and rainfall figures are
2040 relative to 1990).
12. Drawn from the Construction and Property Sector Climate Scenarios.
Key drivers
Adaptation regulations approaching 2050; and a need for business response to increasing acute weather events.
Global
narrative
Globally, there is no climate policy ambition, many existing commitments are not honoured. Emissions continue to rise unabated. Fossil fuel
use continues to increase, and global emissions continue to rise. Global tensions rise by 2050 as physical impacts from climate change have
ramification on global markets and result in mass migration.
Government
policy
There is no concerted effort to reduce emissions by legislation or regulation. Governmental action is limited to adaptation measures only
as action does not take place fast enough to reverse the effects of climate change.
Local government entities increase rates to fund additional protection measures and restoration of certain assets.
The price of carbon does not increase beyond today’s levels. New Zealand has made the minimal possible effort to reduce emissions.
Infrastructure
and Energy
Centralised infrastructure becomes under great pressure and may fail occasionally post 2040. Where there is infrastructure damage due
to climate events, mandates are introduced late to conserve energy to protect critical functions. Investment is targeted towards adaptation
and climate resilience, rather than limiting warming.
Energy remains reliant on high-emitting fuels and no more than the existing proportion of the energy used in New Zealand in 2025 comes
from renewable sources. Coal and gas boilers remain common.
There is a lack of innovation in building technologies and low carbon materials are somewhat available but not sought after. Supply chain
disruptions are common from the 2030’s onwards. Capital and insurance are extremely difficult or impossible to obtain in some regions and
for many business by 2040. Assets become stranded prior to 2050, as regulation and policy settings become more stringent and require
buildings to withstand climate impacts such as storm events, extreme rainfall, heatwaves and floods.
NZ tourism
and travel
behaviour
There are no new incentives for behaviour change to reduce emissions (e.g. public transport subsidies, clean car discount, business decarbonisation/
renewable energy grants). The physical impacts of climate result more frequent reduced access to hotels and damage to highly exposed hotels and
local biodiversity also declines, resulting in a decline in visitor numbers overtime.
However, the impacts of climate change are more severe overseas than in New Zealand. This results in more international visitors, despite the rising
costs of long-haul travel due to climate-related disruptions. Warming temperatures and shifting travel patterns and means seasonal travellers visit
more often and stay longer in more temperate, less impacted climates including New Zealand.
The effects of climate change are having significant and ongoing impacts across New Zealand including interrupting travel plans and flight, rail and
road transport to NZ destinations. Visitor accommodation that is reliant on areas of the country which attract visitors for the unique environment
see reduced visitor numbers post 2050. While tourism remains a viable industry in 2050, accommodation in some NZ destinations and some tourism
experiences have ceased due to climate change impacts.
Physical
environment
The physical climate continues to experience more extreme weather events and chronic stress. There will be severe physical impacts of climate
changes evidenced by significant sea level rise, rainfall intensity and a further increase in the number of extreme heat days. More frequent extreme
weather events cause significant disruption to travel and hotel occupancy and increased expense for preparedness and repairs.
Key 2050
Indicators
11
Sea level
rise
NZ native
forestry
Number of hot
day s >25C
Extreme
rainfall
Whole of life building emission
reduction requirement
12
Carbon
price
NZ net
emissions
0.32m0.2mha+30 days+22%50%
$35
$NZD/tonne
40MtCO
2
e
Under a Hothouse scenario the wider environment is seriously degraded with continued global warming intensifying the global water cycle
resulting in more dramatic climate events, e.g. floods and droughts, more variable or extreme events such as storms, cyclones or hurricanes.
In this scenario emissions continue to rise, as do sea-levels, with land and ocean carbon sinks unable to absorb emissions. Key assumptions
10

under a Hot House scenario include:
Policy Ambition
>3.0°C
Physical Risk
Severity
Extreme
Policy Reaction
None
(current only)
Transition Risk
Severity
Low
Technology Change
Slow
Socio-political
Instability
High
Behaviour Change
Slow
3.0°C Hot House World Scenario – Current trajectory
A world where global warming reaches 3.0 degrees above preindustrial levels by 2100, due to no additional
policies introduced to reduce greenhouse gas emissions.
55APPENDICES: A. CLIMATE SCENARIOS
CONTENTS
INTRODUCTION
GOVERNANCE
STRATEGY
RISK MANAGEMENT
METRICS AND TARGETS
GLOSSARY
APPENDICES
Right: Copthorne Hotel and Resort Queenstown.

5657MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
APPENDIX B
GREENHOUSE GAS INVENTORY
APPENDICES: B. GREENHOUSE GAS INVENTORY
Greenhouse gas emissions
For the reporting period 1 January 2024 to 31 December 2024 MCK’s emissions have been measured and the greenhouse gas
emission inventory (GHG inventory) prepared in accordance with the GHG Protocol Standards
1
and ISO 14064-1:2018 standard.
Organisational boundary and consolidation approach
Organisational boundaries have been set in accordance with the
GHG Protocol methodology and ISO 14064-1:2018 standards.
All subsidiaries wholly or majority owned by Millennium &
Copthorne Hotels New Zealand Limited (MCK) interests have
been included in the organisational GHG reporting boundary
(unless deemed de minimis). The boundary includes direct
operational emissions from 16 hotels within the Millennium
portfolio under ownership or management control, CDL
Investments New Zealand Limited
8
and support offices.
In the 2024 reporting period an operational control approach
was applied to the organisational boundary and GHG inventory.
The previous base year (2023) inventory reported used an
equity share approach.
9
This change was made in keeping
with the GHG Protocol reporting standards to better reflect
the nature of the hotel operations; direct control over sources
of emissions; industry practice; and alignment with parent
company methodology and reporting.
On this basis one jointly owned hotel (Sofitel Brisbane) and
an apartment complex (Zenith Apartments, Sydney), both in
Australia, are excluded from the 2024 inventory due to lack of
operational control and their immateriality respectively; along
with two MCK franchised hotels.
Targets and comparison to base year
Accounting for the base year restatement, there was an increase
in emissions between the 2023 base year and 2024 of 3,85tCO
2
e,
as a result of operational activities. The main emissions sources
in 2024 were hotel consumption of natural gas, LPG and
electricity for heating, cooling and cooking; as well as waste
generation and air travel. The 6.7% increase in emissions is in
part due to an overall increase in owned and managed hotel
occupancy rates between 2023 and 2024. The largest sources
of emissions responsible for this increase were stationary
emissions (gas usage), waste generation and air travel.
2023 is the base year and was the first year of GHG inventory
reporting for MCK. Further work commenced in 2024 to scope
suitable targets and metrics for emissions reduction. Formal
targets will be set and adopted in 2025.
Controls, assurance and accreditation
Internal checks are conducted for data accuracy, completeness,
and consistency. Where possible GHG data is cross-referenced
with operational data (e.g. energy use) to remove errors. Going
forward data will be reconciled quarterly. Inventory roles are
delineated between providers of data, data entry, quality
control (sample checks) and review of data for monitoring
and reporting.
KPMG have provided limited assurance over the reported
Scope 1, 2 and 3 emissions for the 2024 reporting period
(see their opinion which includes the scope of their work,
included in Appendix C). In 2024 Toit
ū recertified our 2023
base year GHG inventory and we received certification for our
FY24 GHG inventory.
Millennium and Copthorne Hotels New Zealand Limited
10

is a Toitū Carbon Reduce certified organisation. Toitū
Carbon Reduce certified means measuring emissions to
ISO 14064-1:2018 and Toit
ū requirements; and managing
and reducing against Toitū requirements.
Table 1: Millennium & Copthorne Hotels New Zealand Ltd greenhouse gas emissions 2024.
GHG sub
category
ISO
category
Emissions
source
Description
FY23 restated
2
tCO
2
e
FY24
tCO
2
e
Data source and
collection methodology
Scope 1: Direct emissions3,3453,686
1Mobile
combustion
Fuel used in company
leased vehicles
79123Actual usage from company vehicle
fuel card data (Kms)
1Fugitive
emissions
Losses including from
refrigeration and
air-conditioning units
242240Calculated using hotel refrigerant
inventory records and default appliance
and refrigerant type estimations (Kg)
1Stationary
combustion
Hotel natural
gas combustion
1,8641,979Actual usage from 3rd party supplier data,
supplier invoices and electrical onsite
sub-metering conversions applied (kWh)
Hotel LPG consumption1,1601,344Actual usage from 3rd party supplier
data, supplier invoices with conversions
applied (kWh)
Scope 2: Indirect emissions from purchased electricity1,3591,344
2Imported
electricity
(location-
based)
3
Electricity consumption
from hotels and support
office
1,3591,370Actual usage from 3rd party supplier
data, supplier invoices and electrical
onsite sub-metering (kWh)
Scope 3: Indirect emissions from value chain
4
1,026 1,059
C14Purchased
goods and
services
Potable water supply (only)710Calculated from office water use on bills
supplied via property manager (m
3
)
C34Fuel and
energy-
related
activities
Transmission and
distribution (T&D) losses
from purchased electricity
and natural gas
210173Calculated as a portion of imported
electricity consumption (kWh)
C54Waste
generated in
operations
Disposal of office and hotel
solid waste – landfilled
528582Calculated from waste contractor data,
based on bin weight (tonnes)
Disposal of solid waste –
not landfilled: Recycling
processed: cardboard,
mixed plastics, glass
and comingled materials
122114Calculated from waste contractor data,
based on bin weight (tonnes)
Disposal of solid waste –
not landfilled: composted
food scraps and garden
waste
89Calculated from waste contractor data,
based on bin weight (tonnes)
C63Transport (non-company
owned vehicles) – air travel,
rental vehicles and taxi
151171Calculated using spend based
methodology for international and
domestic flights and taxi travel ($)
and mileage for rental car travel (Km)
Tot al5,730
5
6,115tCO
2
e
Emissions intensity:
By operating revenue
Per hotel room
7
43.46
6
2.74
38.56
2.84
gross tCO
2
e/$millions
gross tCO
2
e/room
1. https://ghgprotocol.org/standards-guidance This includes: The Greenhouse Gas Protocol: A Corporate Accounting and
Reporting Standard (revised edition); the Greenhouse Gas Protocol: GHG Protocol Scope 2 Guidance: An amendment to
the GHG Protocol Corporate Standard; and the Greenhouse Gas Protocol: Corporate Value Chain (Scope 3) Accounting and
Reporting Standard.
2. As certified by Toit
ū, recalculated from the original FY23 inventory of 4146tCO
2
e refer to table 2 for further detail
3. Market-based emissions from imported energy are calculated as 1,388CO
2
e (compared with 1,353tCO
2
e in 2023),
nominally the same as location-based as no Renewable Energy Certificates have been purchased.
4. MCK has elected to disclose FY24 a partial scope 3 emissions footprint (as required by the Toit
ū programme, where
quantifiable data is available). Where data is not yet available, Adoption Provision 4: Scope 3 GHG emissions in the NZ
Climate Standard 2 is applied for the remaining material Scope 3 items in our value chain.
5. Restated from the original FY23 inventory of 4146tCO
2
e as published in 2023.
6. Restated for FY23 based on the 2023 base year recalculation undertaken in 2024.
7. Uses available rooms per year, includes emissions from hotel portfolio only and excludes CDL Investments New Zealand Ltd.
8. CDL Investments New Zealand Ltd is 66% owned by Millennium & Copthorne Hotels New Zealand Ltd (MCK). Although
immaterial for FY24 CDI emissions have been included in the MCK GHG inventory.
9. The consolidation approach was retrospectively applied to reflect an operation control approach as part of the 2023
base year recalculation.
10. Excluding emissions from Millennium Hotel & Resort Manuels Taupo and Copthorne Hotel & Resort Solway Park Wairarapa
under operational control approach.
CONTENTS
INTRODUCTION
GOVERNANCE
STRATEGY
RISK MANAGEMENT
METRICS AND TARGETS
GLOSSARY
APPENDICES

58MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT59
APPENDIX B
GREENHOUSE GAS INVENTORY (CONTINUED)
APPENDICES: B. GREENHOUSE GAS INVENTORY
Table 2: Millennium & Copthorne Hotels NZ Ltd GHG base year assessment and recalculation.
GHG category
Previously reported Base
Year Emissions (tCO
2
e)
Change in
Boundary (tCO
2
e)
New Emission
Source (tCO
2
e)
Correction of
Errors (tCO
2
e)
Restated Base Year
Emissions (tCO
2
e)
Scope 1 Emissions2,098182429873,345
Stationary Combustion
– LPG
137 1,0231,160
Stationary Combustion
– Natural Gas
1,900 (36)1,864
Mobile Combustion 61 18 79
Refrigerants – 242 242
Scope 2 Emissions 1,308380–(329)1,359
Electricity1,308380 (329) 1,359
Scope 3 Emissions740287–(1)1,026
C1 Purchased Goods
and Services
43 7
C3 Transmission and Distribution Losses 183 27 (1) 209
C5 Waste 436223 659
C6 Business Travel 11734 151
Total Emissions 4,1466852426575,730
Percentage Recalculation17%6%16%
Base year recalculation
MCK has used 2023 as the base year for GHG inventory. This was
the first year of measurement also deemed a representative
post-COVID year, as accredited by Toitū and reported in the
climate-related disclosures within the 2023 Annual Report.
To ensure accurate, transparent, and consistent reporting of
GHG emissions, supporting the organisation’s sustainability
goals and compliance with regulatory requirements, MCK has
a GHG inventory base year recalculation policy. It outlines the
events and conditions that trigger a base year recalculation or
a change in the nominated base year.
To enable tracking progress towards GHG targets, base
year emissions inventory will be recalculated to account
for material changes, if these changes lead to an increase
or decrease in emissions of greater than 5% of the total
inventory (the significance threshold), in accordance with the
GHG Protocol guidance. Changes to organisational boundary;
structure (include acquisitions, divestitures or mergers and/
or outsourcing or insourcing emitting activities); calculation
methodology; and/or data errors may trigger the recalculation
of base year emissions.
A screening exercise of the changes to the business in line
with the GHG Protocol informed the decision to recalculate
the base year. It has been deemed necessary to recalculate the
base year, due to a change to the consolidation approach and
organisational boundary this reporting period, which resulted
in a change from 14 to 16 hotels and subsidiary CDL
Investments NZ Ltd now being included within the 2024
boundary. In addition:
• material scope 1 hotel refrigerants emissions were
estimated for the first time in 2024;
• a misclassification between scope 1 natural gas/LPG
emissions, resulting in under reporting and application
of incorrect emissions factors;
• an emissions factor used to calculate scope 2 electricity
emissions in 2023 required correction.
The result of these changes amount to an increase of around
38% in the base year emissions profile. Table 2 outlines the
justification for, and updates made to, the base year to account
for changes to the organisational boundary, calculation
methodologies and errors.
The 2023 base year was previously reported as 4,164tCO
2
e and
has been recalculated and restated as 5,730tCO
2
e. This ensures
MCK’s GHG Inventory remains relevant, complete, consistent,
transparent and accurate in line with the GHG Protocol.
Calculations and emission factors
Reports, invoices and data are received from the relevant
data source/supplier and the relevant emission factors are
applied to calculate the emissions. The calculation approach
used for quantifying this emissions inventory is based on:
emissions = activity data x emissions factor.
All emissions were calculated using Toit
ū e-manage platform
with emissions factors and Global Warming Potentials provided
by Toi t
ū. Global Warming Potentials (GWP) from the IPCC fifth
assessment report (AR5) are the primary GWP conversion
however some differ (as noted below). If emission factors have
been derived from recognised publications approved by the
programme, which still use earlier GWPs, the emission factors
have not been altered from as published. Where applicable, unit
conversions applied when processing the activity data have
been disclosed. There are systems and procedures in place that
will ensure applied quantification methodologies will continue
in future GHG emissions inventories.
Source of emissions factors
Emissions factors are sourced from NZ Government publications
where possible or other reputable peer reviewed sources.
Emissions factors and GWP are sourced from the Ministry for the
Environment, Measuring emissions: A guide for organisations
(2024),
11
which uses the GWPs published in the IPCC Fifth
Assessment Report (AR5). Below are the exceptions where
emission factors used are from different sources:
• Recyclable materials: Turner et al. (2015) Greenhouse gas
emission factors for recycling of source-segregated waste
materials. Resources, Conservation and Recycling (AR4).
• Electricity distributed T&D losses (market-based):
New Zealand Energy Certificate System. Administered and
developed by Certified Energy, New Zealand (AR6).
• Electricity annual factor (market-based): Derived by
Toi t
ū Envirocare,
12
Wellington, New Zealand (AR5).
• Air passenger transport (spend-based): Market Economics
Limited (2023) Consumption Emissions Modelling, report
prepared for Auckland Council (AR4).
• Refrigerants R-449A, R513A, R452A respectively:
• Derived by Toit
ū Envirocare,
13
Wellington,
New Zealand (AR5).
• Climalife IDS Refrigeration Ltd
https://www.climalife.co.uk/r513a (AR5)
• Climalife IDS Refrigeration Ltd
https://www.climalife.co.uk/r452a (AR5)
Estimations
MCK has an estimations policy which is reviewed annually and
methodology by which estimations are made across data sets
within the GHG inventory. MCK reports on a calendar year basis,
meaning December data is typically unavailable at the time of
data audit and assurance and required reporting timeframes.
Where December estimates are made, i.e. for electricity, natural
gas, LPG, waste, water, petrol, diesel, and some travel, where
feasible a year-on-year growth rate method is applied as there
can be changes in emissions trends year on year due to national
and global economic changes and seasonal market changes.
Estimations within data sets are infrequent, but may be
required for incomplete sets such as where a water meter is
unavailable or invoicing occurs across reporting months or
years, and so is apportioned.
As a full record of refrigerant top-ups for all hotels was not
obtained for 2024 a conservative approach to estimating
refrigerants was undertaken using the hotel inventory of
refrigerants liabilities, default charges and types (where data
wasn’t available) and application of a default leakage rate. This
methodology draws from the Ministry for the Environment,
Measuring emissions: A guide for organisations (2024)
14
and
Toi tū: Assessing Your Emissions Guide (2024).
11. https://environment.govt.nz/assets/publications/Measuring-Emissions-2024/Measuring-emissions_Detailed-guide_2024_ME1829.pdf
12. The market-based emission factor consists of national grid factor from MfE and residual mix factor from BraveTrace,
using the latest aligned 12-month period available (updates are released on different cycles).
13. Sourced from USEPA Compositions of Refrigerant Blends - Percentage Composition of Substitute Refrigerant Blends.
Each composite gas is using the current Programme GWP values, sourced from NZ MfE and UK DEFRA.
14. https://environment.govt.nz/assets/publications/Measuring-Emissions-2024/Measuring-emissions_Detailed-guide_2024_ME1829.pdf
CONTENTS
INTRODUCTION
GOVERNANCE
STRATEGY
RISK MANAGEMENT
METRICS AND TARGETS
GLOSSARY
APPENDICES

60MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
APPENDIX B
GREENHOUSE GAS INVENTORY (CONTINUED)
Exclusions from reported GHG emissions
Following requirements of GHG protocol, and significance
criteria for inclusion within the MCK inventory defined
organisation boundary and as required by the Toitū
accreditation programme the following emissions scopes
are included:
• All direct emission sources that contribute more than
1% of category 1 and 2 emissions
• Some scope 3 emission subcategories in accordance with
the criteria (based on Toit
ū accreditation requirements).
MCK has adopted the Toit
ū significance criteria which is
aligned with GHG Protocol requirements, and assesses
materiality for inclusion in the inventory based on magnitude;
level of influence; risk or opportunity; sector specific guidance;
outsourcing; employee engagement; and intended use and
users (includes availability of data sets). Exclusions are specific
to each emission source and are based on the MCK agreed
significance criteria.
Reasonable effort has been made to source GHG emissions data
within the business’s capacity and available resourcing (with
some estimations used). MCK is in early maturity for our GHG
inventory, given that FY23 was our first reporting period (and
base year). Prioritisation of initiatives have meant certain scope
3 operational emission categories have been excluded from our
FY24 reporting.
15
We plan to expand on our inventory in FY25.
15. MCK has elected to disclose FY24 a partial scope 3 emissions footprint (as required by the Toitū programme, where quantifiable data is available). Where data is
not yet available, Adoption Provision 4: Scope 3 GHG emissions in the NZ Climate Standard 2 is applied for the remaining material Scope 3 items in our value chain.
Emission Source Reason for exclusion
Scope 3 Category
Purchased Goods & Services (1)Availability and influence: spend-based measurement has commenced, as 3rd
party data availability and quality is currently low this will be reported in subsequent
years. We do not currently have activity level information on our suppliers’ emissions
profiles (excludes potable water supply).
Capital Goods (2)Availability and resourcing: spend-based measurement has commenced.
Extracting data for GHG reporting purposes is challenging and further
resourcing and time is required to report in subsequent years.
Fuel and Energy-related Activities (3)Laundry services are currently captured in electricity, gas and water emissions
and outsourced linen services from 2025 will be captured within category 1.
Upstream Transportation (4) and DistributionCourier/postage is de minimis. Limited direct freight transportation is used.
Limited data availability as some freight costs included in purchase of products.
From 2025 will be captured within category 1 purchased goods and services.
Waste Generated in Operations (5)Waste from Christchurch support office and Wastewater are de minimis.
From 2025 estimated hotel and support office wastewater may be included.
Employee Commuting (7)Availability: measurement has commenced, however data quality is low
requiring significant estimation – will report in subsequent years.
Upstream Leased Assets (8)Not relevant – no leased assets apart from support office (emissions included
in other scope categories).
Downstream Transportation and Distribution (9)Not relevant – no distribution of products.
Processing of Sold Products (10)Not relevant – MCK does not sell intermediary products.
Use of Sold Products (11)Based on initial screening this is not relevant for hotels/is de minimis.
End of Life Treatment of Sold Products (12)Based on initial screening this is not relevant for hotels/is de minimis.
Downstream Leased Assets (13)Availability and materiality: Information from leased properties (a hotel and
apartments in Australia) will be sourced and reported in subsequent years if material.
Franchises (14)Availability: Measurement has commenced for two MCK franchised hotels,
however current data quality is low requiring significant estimation.
Investments (15)Not relevant – MCK does not have any additional investments.
Table 3: Rationale for exclusion of emission sources.
APPENDICES: B. GREENHOUSE GAS INVENTORY 61
CONTENTS
INTRODUCTION
GOVERNANCE
STRATEGY
RISK MANAGEMENT
METRICS AND TARGETS
GLOSSARY
APPENDICES
Right: The Cabana at M Social Auckland.

6263MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
APPENDIX B
GREENHOUSE GAS INVENTORY (CONTINUED)
APPENDICES: B. GREENHOUSE GAS INVENTORY
16. Indicative data quality rating:
*** high quality (low uncertainty, usage data, complete records, no or minor estimation, verified, or direct calculation),
**moderate quality (proxy data, conversion required with higher uncertainty, estimation for small proportion of total activity data),
*low quality (high uncertainty, fully estimated activity data or for high proportion estimated).
17. The market-based emission factor consists of national grid factor from MfE and residual mix factor from BraveTrace,
using the latest aligned 12-month period available (updates are released on different cycles).
Scope 1: MCK’s direct operational emissions
GHG
Category
Emissions
Activity
Calculation
method
Data
source
Data
uncertainty
Data quality
rating
16
Tr anspor t
Energy
Consumption of liquid
fuels for transport
purposes (diesel and
petrol) by leased fleet
vehicles.
Volume-basedInvoice records of fuel
consumed provided
by suppliers.
It is assumed that data is
complete and accurate when
received from suppliers.
***
Leakage of
Refrigerants
Refrigerants used
in hotels including
air conditioning and
refrigeration units.
Estimation-
based
Hotel records of
refrigerant liability
inventory determined
based on the appliance,
refrigerant capacity
and type.
Where inventory records are
incomplete estimations for
appliances and refrigerant types
have been made. Estimations
using an MfE default leakage
rate have been applied.
*
Stationary
energy – gas
consumption
Natural gas used in
hotels for water
heating and cooking.
Volume-basedInvoice records provided
by suppliers, and report
from 3rd party supplier.
It is assumed that data
is complete and accurate
when received from suppliers.
Conversion factors applied.
Some estimation used.
**
LPG used in hotels
for water heating
and cooking.
Volume-basedInvoice records provided
by suppliers, and report
from 3rd party supplier.
It is assumed that data
is complete and accurate
when received from suppliers.
Conversion factors applied.
Some estimation used.
**
Scope 2: MCK’s indirect emissions from the consumption of purchased electricity
GHG
Category
Emissions
Activity
Calculation
method
Data
source
Data
uncertainty
Data quality
rating
16
Electricity
Consumption
Electricity used by hotels
and MCK’s portion of
support office space.
Location-
based (and
market-based
respectively)
17
Invoice records provided
by electricity suppliers,
and report from 3rd
party supplier.
It is assumed that data is complete
and accurate when received from
suppliers. Most source data is
derived from supplier’s reports.
December is estimated due to
proximity to year end.
**
Scope 3: MCK’s indirect supply chain emissions
GHG
Category
Emissions
Activity
Calculation
method
Data
source
Data
uncertainty
Data quality
rating
16
Business Travel Air travel, taxi and
rental car, usage by
MCK employees for
business purposes.
Spend-based Invoice records provided
by airline and taxi
company suppliers.
It is assumed the data sources are
complete and accurate. Air travel
and taxi data is sourced either from
the GL code or booking records
and invoices.
**
Distance-based Report and invoice records
with distance travelled by
fuel type used in vehicles,
as provided by car rental
company.
It is assumed the data sources are
complete and accurate. Rental
car data is sourced from supplier
customer activity data.
***
Fuel and
Energy Related
Activities
Electricity losses that
are attributable to
the transmission and
distribution ('T and D')
of electricity and gas.
Location-based Invoice records provided
by electricity and gas
suppliers, and report
from 3rd party contractor.
It is assumed data is complete and
accurate. All source data is derived
from our supplier’s reports. Where
invoices have not been received,
consumption is estimated based
on historical usage.
***
Purchased
Goods and
Services
Potable water supply from
hotels and MCK’s portion
of support office space.
Volume-based Invoices and rates bills
from utility providers
based on water meters
where available.
It is assumed data is complete
and accurate. Most source data
is derived from supplier records.
Some estimation required due
to billing frequency.
**
Waste
Generated in
Operations
Waste to landfill, recycling
and compost diverted, from
hotels and MCK’s portion
of support office space.
Weight-based Based on waste collector
supplier records based on
bin weights or estimates of
volume of bins collected.
It is assumed data is complete and
accurate. Proportion of building
and floor applied. All source data
is derived from supplier records
(some volume conversions applied).
**
Table 4: Emissions calculation methods, data quality and sources.
Table 4: Emissions calculation methods, data quality and sources (continued).
Methods, assumptions and uncertainties
• Scope 1 - this category captures emissions directly
generated by MCK’s owned or controlled sources. Data
is collected from various sources: service contractors
provide information on refrigerants, fuel card data tracks
mobile combustion emissions from company vehicles;
natural gas and LPG suppliers supply invoice records
to determine stationary combustion emissions. Data
quality and uncertainty is moderate, with the exception
of refrigerants where large use of leakage estimations
has been applied for 2024 data, resulting in lower quality
data with a higher uncertainty.
• Scope 2 - indirect emissions from purchased energy within
MCK’s operational control. Data is gathered from electricity
suppliers, invoices, and on-site electrical sub-metering,
with 3rd-party invoice verification to support calculation
of electricity emissions (and estimate distribution loss
emissions). Data quality is high and uncertainty is low.
• Scope 3 - includes some indirect emissions from potable
water (1), T&D losses from electricity and gas (3), waste
landfilled (5) recycling and composting (10), business
travel (6). Waste management data comes from service
providers, with calculations of emissions from landfilled,
processed recycling (including plastics, glass, aluminium,
cardboard and paper), and composted waste. Business
travel emissions are tracked – air travel and taxi emissions
are calculated using spend data from invoices (relatively
high uncertainty) and usage from rental cars from invoices
and supplier reports (high data quality). Measurement has
also commenced in 2024 for additional scope 3 emissions
categories and will be reported next year including supplier
spend data on goods, services and capital expenses (1 & 2),
staff commute (7), and franchises (14).
See more in table 4 Emissions calculation methods, data quality
and sources.
CONTENTS
INTRODUCTION
GOVERNANCE
STRATEGY
RISK MANAGEMENT
METRICS AND TARGETS
GLOSSARY
APPENDICES

65APPENDICES: C. KPMG ASSURANCE LIMITED OPINION
© 2025 KPMG, a New Zealand Partnership and a member firm of the KPMG global organization of independent member firms affiliated withKPMG International Limited,
a private English company limited by guarantee. All rights reserved.
Document classification: KPMG Public
Independent Limited Assurance
Report to Millenium & Copthorne
Hotels New Zealand Limited
Conclusion
Our limitedassurance conclusionhas been formed on the basis ofthe matters outlined in this report.
Based on our limited assurance engagement, which is not a reasonable assurance engagement or an audit,
nothing has come to our attention that would lead us to believe that, in all material respects, thescope 1, 2
and 3 gross greenhouse gas emissions, additional required disclosures of scope 1, 2 and 3 gross greenhouse
gas emissions and scope 1, 2 and 3 gross greenhouse gas emissions methods, assumptions and estimation
uncertainty disclosures included Appendix B of the FY24 ClimateStatementsonpages56to 63(GHG
disclosures) arenotfairly presented and preparedin accordance with theAotearoa New Zealand Climate
Standards (NZ CSs) issued by the External Reporting Board(the criteria) for the period 1 January 2024to 31
December 2024.
Information subject to assurance
We have performed an engagement to provide limitedassurance in relation to Millenium & Copthorne Hotels
New Zealand Limited’sGHGdisclosuresfor the period 1 January 2024to 31 December 2024.
Our assurance engagement does not extend to the following:
• Climate-relateddisclosureson pages (pages 1-55, 64-72); and
• Any comparative GHG information, including the base year recalculation outlinedonpage58, andGHG
Emissions Intensity metrics (referenced throughout)
We have not performed any procedures with respect to the other information.
Criteria
The criteria used as the basis of reporting are the Aotearoa New Zealand Climate Standard (NZCS) 1 Climate
Related Disclosures (NZCS1), NZCS 2 Adoption of Aotearoa New Zealand Climate Standards (NZCS2) and
NZCS 3 General Requirements for Climate-related Disclosures (NZCS3), collectively the Aotearoa New Zealand
Climate Standards' (NZ CSs) issued by the External Reporting Board (XRB).
As permitted by the NZCS1 para. 24(a), the standards that Millenium & Copthorne Hotels New Zealand Limited’s
greenhouse gas emissions are measured in accordance with are the World Resources Institute and World
Business Council for Sustainable Development’s Greenhouse Gas Protocol standards and guidance (collectively,
the GHG Protocol):
© 2025KPMG, a New Zealand Partnership and a member firm of the KPMG global organization of independent member firms affiliated withKPMG International Limited,
a private English company limited by guarantee. All rights reserved.
Document classification: KPMG Public
Independent Limited Assurance
Report to Millenium & Copthorne
Hotels New Zealand Limited
Conclusion
Our limitedassurance conclusionhas been formed on the basis ofthe matters outlined in this report.
Based on our limited assurance engagement, which is not a reasonable assurance engagement or an audit,
nothing has come to our attention that would lead us to believe that, in all material respects, thescope 1, 2
and 3 gross greenhouse gas emissions, additional required disclosures of scope 1, 2 and 3 gross greenhouse
gas emissions and scope 1, 2 and 3 gross greenhouse gas emissions methods, assumptions and estimation
uncertainty disclosures included Appendix B of the FY24 ClimateStatementsonpages56to 63(GHG
disclosures) arenotfairly presented and preparedin accordance with theAotearoa New Zealand Climate
Standards (NZ CSs) issued by the External Reporting Board(the criteria) for the period 1 January 2024to 31
December 2024.
Information subject to assurance
We have performed an engagement to provide limitedassurance in relation to Millenium & Copthorne Hotels
New Zealand Limited’sGHGdisclosuresfor the period 1 January 2024to 31 December 2024.
Our assurance engagement does not extend to the following:
• Climate-relateddisclosureson pages (pages 1-55, 64-72); and
• Any comparative GHG information, including the base year recalculation outlinedonpage58, andGHG
Emissions Intensity metrics (referenced throughout)
We have not performed any procedures with respect to the other information.
Criteria
The criteria used as the basis of reporting are the Aotearoa New Zealand Climate Standard (NZCS) 1 Climate
Related Disclosures (NZCS1), NZCS 2 Adoption of Aotearoa New Zealand Climate Standards (NZCS2) and
NZCS 3 General Requirements for Climate-related Disclosures (NZCS3), collectively the Aotearoa New Zealand
Climate Standards' (NZ CSs) issued by the External Reporting Board (XRB).
As permitted by the NZCS1 para. 24(a), the standards that Millenium & Copthorne Hotels New Zealand Limited’s
greenhouse gas emissions are measured in accordance with are the World Resources Institute and World
Business Council for Sustainable Development’s Greenhouse Gas Protocol standards and guidance (collectively,
the GHG Protocol):
•Scope 1 emissions have been measured in accordance with The Greenhouse Gas Protocol: A Corporate
Accounting and Reporting Standard (revised edition)
•Scope 2 emissions have been measured in accordance with The Greenhouse Gas Protocol: GHG Protocol
Scope 2 Guidance: An amendment to the GHG Protocol Corporate Standard
•Scope 3 emissions have been measured in accordance with The Greenhouse Gas Protocol: Corporate
Value Chain (Scope 3) Accounting and Reporting Standard.
As a result, this report may not be suitable for another purpose.
Standards we followed
We conducted our limitedassurance engagement in accordance withNew Zealand Standard on Assurance
Engagements 1 (NZ SAE 1) Assurance Engagements over Greenhouse Gas Emissions Disclosures and
International Standard on Assurance Engagements (New Zealand) 3410 Assurance Engagements on
Greenhouse Gas Statements(ISAE (NZ) 3410) issued by the New Zealand Auditing and AssuranceStandards
Board (Standard). We believe that the evidence we have obtained is sufficient and appropriate to provide a
basis for our conclusion.
Our responsibilities under the Standard are further described in the ‘Our responsibility’ section of our report.
Key Matters
Key matters are those matters that, in our professional judgement, were of most significance in undertaking our
assurance engagement of the GHG disclosures for the period 1 January 2024 to 31 December 2024.
Our procedures were undertaken in the context of and solely for the purpose of our assurance conclusion on the
GHG disclosures and we did not reach a separate conclusion on each individual key matter.
Key Matter Procedures to address the Key Matter
Determination and selection of the organisational boundary
Refer to Organisationalboundaryand
Consolidationapproachsection, page 57,
within the accompanyingGHGdisclosures.
In establishing the organisational boundary, an
approach for consolidating GHG emissions is
selected. As included in the disclosure, the
organisational boundary has been changed in
2024to an operational control approach, the
base year previously used an equity share
approach.
Wehave focused on this area as a key audit
matter as there is complexity and judgement on
where to draw the organisational boundary, due
tomultiple approaches being allowed, and
impacts of changing the boundary. The
organisational boundary also provides a key
frame for what is included within each emission
category. Therefore, changes to the boundary
Our assurance procedures included:
•Inquiringwith relevant staff, the legal VPand
sustainability manager, to understand and assess the
appropriateness of the change in organisational
boundary against the requirements of the GHG
protocol.
•Considering the reasonableness ofmanagements
inclusion ofthe two managed hotelsand the Joint
Ventureagainst the GHG protocol
, industry practice and
the substance of the contractual agreements.
•Comparingthe accompanyingdisclosures in respect of
the change in boundaryto the criteria.
•Assessing against the GHG protocol reporting
standards whether the change in organisational
boundary requires a base year recalculation, and the
appropriateness of managements base year
recalculation policy.
© 2025 KPMG, a New Zealand Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,
a private English company limited by guarantee. All rights reserved.
Document classification: KPMG Public
CONTENTS
INTRODUCTION
GOVERNANCE
STRATEGY
RISK MANAGEMENT
METRICS AND TARGETS
GLOSSARY
APPENDICES
Key Matter Procedures to address the Key Matter
can have a pervasive impact on the overall
footprint.
In addition, we focussed onwhether certain
operations (two managed hotels and the Sofitel
JV) are included in the footprint. There is
judgement asto whether control exists over
those operations, and they should be included
in the footprint,when there is not legal
ownership.
Other Matter – Prior year comparatives not assured
The GHG disclosures for the period 1 January 2023 to 31 December 2023 werenot subject to our limited
assurance engagement and, accordingly, we do not express a conclusion, or provide any assurance on such
information.
We note that the prior period GHG emission inventory has been recalculated as a result of:
•Changes in organisational boundary;
•Changes in calculation methodology; and
•Discovery of significant errors.
Please refer to ‘Baseyearrecalculation’ (page 58) which outlinestheimpactof thebaseyear recalculation.
Our conclusion is not modified in respect of this matter.
How to interpret limited assurance and material misstatement
A limited assurance engagementis substantially less in scope than a reasonable assurance engagementin
relation to both the risk assessment procedures, including an understanding of internal control, and the
procedures performed in response to the assessed risks.
Misstatements, including omissions, within the GHG disclosures are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the relevantdecisions of the intended users taken on
the basis of the GHG disclosures.
Inherent limitations
GHG quantification is subject to inherent uncertainty because of incomplete scientific knowledge used to
determine emission factors and the values needed to combine emissions of differentgases.
Use of this assurance report
Our report is made solely for Millenium & Copthorne Hotels New Zealand Limited. Our assurance work has been
undertaken so that wemight state to Millenium & Copthorne Hotels New Zealand Limited those matters weare
required to state to them in the assurance reportand for no other purpose.
Our report is released to Millenium & Copthorne Hotels New Zealand Limited and its shareholders on the basis
that it shall not be copied, referred to or disclosed, in whole or in part, without our prior written consent. Noother
third party is intended to receive our report.
Key Matter Procedures to address the Key Matter
can have a pervasive impact on the overall
footprint.
In addition, we focussed onwhether certain
operations (two managed hotels and the Sofitel
JV) are included in the footprint. There is
judgement asto whether control exists over
those operations, and they should be included
in the footprint,when there is not legal
ownership.
Other Matter – Prior year comparatives not assured
The GHG disclosures for the period 1 January 2023 to 31 December 2023 werenot subject to our limited
assurance engagement and, accordingly, we do not express a conclusion, or provide any assurance on such
information.
We note that the prior period GHG emission inventory has been recalculated as a result of:
•Changes in organisational boundary;
•Changes in calculation methodology; and
•Discovery of significant errors.
Please refer to ‘Baseyearrecalculation’ (page 58) which outlinestheimpactof thebaseyear recalculation.
Our conclusion is not modified in respect of this matter.
How to interpret limited assurance and material misstatement
A limited assurance engagementis substantially less in scope than a reasonable assurance engagementin
relation to both the risk assessment procedures, including an understanding of internal control, and the
procedures performed in response to the assessed risks.
Misstatements, including omissions, within the GHG disclosures are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the relevantdecisions of the intended users taken on
the basis of the GHG disclosures.
Inherent limitations
GHG quantification is subject to inherent uncertainty because of incomplete scientific knowledge used to
determine emission factors and the values needed to combine emissions of differentgases.
Use of this assurance report
Our report is made solely for Millenium & Copthorne Hotels New Zealand Limited. Our assurance work has been
undertaken so that wemight state to Millenium & Copthorne Hotels New Zealand Limited those matters weare
required to state to them in the assurance reportand for no other purpose.
Our report is released to Millenium & Copthorne Hotels New Zealand Limited and its shareholders on the basis
that it shall not be copied, referred to or disclosed, in whole or in part, without our prior written consent. Noother
third party is intended to receive our report.
APPENDIX C
KPMG ASSURANCE LIMITED OPINION

6667MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENT
Key Matter Procedures to address the Key Matter
can have a pervasive impact on the overall
footprint.
In addition, we focussed onwhether certain
operations (two managed hotels and the Sofitel
JV) are included in the footprint. There is
judgement asto whether control exists over
those operations, and they should be included
in the footprint,when there is not legal
ownership.
Other Matter – Prior year comparatives not assured
The GHG disclosures for the period 1 January 2023 to 31 December 2023 werenot subject to our limited
assurance engagement and, accordingly, we do not express a conclusion, or provide any assurance on such
information.
We note that the prior period GHG emission inventory has been recalculated as a result of:
•Changes in organisational boundary;
•Changes in calculation methodology; and
•Discovery of significant errors.
Please refer to ‘Baseyearrecalculation’ (page 58) which outlinestheimpactof thebaseyear recalculation.
Our conclusion is not modified in respect of this matter.
How to interpret limited assurance and material misstatement
A limited assurance engagementis substantially less in scope than a reasonable assurance engagementin
relation to both the risk assessment procedures, including an understanding of internal control, and the
procedures performed in response to the assessed risks.
Misstatements, including omissions, within the GHG disclosures are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the relevantdecisions of the intended users taken on
the basis of the GHG disclosures.
Inherent limitations
GHG quantification is subject to inherent uncertainty because of incomplete scientific knowledge used to
determine emission factors and the values needed to combine emissions of differentgases.
Use of this assurance report
Our report is made solely for Millenium & Copthorne Hotels New Zealand Limited. Our assurance work has been
undertaken so that wemight state to Millenium & Copthorne Hotels New Zealand Limited those matters weare
required to state to them in the assurance reportand for no other purpose.
Our report is released to Millenium & Copthorne Hotels New Zealand Limited and its shareholders on the basis
that it shall not be copied, referred to or disclosed, in whole or in part, without our prior written consent. Noother
third party is intended to receive our report.
Our report should not be regarded as suitable to be used or relied on by anyone other thanMillenium &
Copthorne Hotels New Zealand Limitedfor any purpose or in any context. Any other person who obtains access
to our report or a copy thereof and chooses to rely on our report (or any part thereof) will do so at its own risk.
To the fullest extent permitted by law, none of KPMG, any entities directly or indirectly controlled by KPMG, or
any of their respective members or employees accept or assume any responsibility and deny all liability to
anyone other than Millenium & Copthorne Hotels New Zealand Limitedfor our work, for this independent
assurance report, and/or for the opinions or conclusions we have reached.
Our conclusionis not modified in respect of this matter.
Millenium & Copthorne Hotels New Zealand Limited’s responsibility for
the GHG disclosures
The Managementof Millenium & Copthorne Hotels New Zealand Limitedare responsible for the preparationand
fair presentationof the GHGdisclosuresin accordance with the criteria. This responsibility includes the design,
implementation and maintenance of such internal control as Managementdetermine is relevant to enable the
preparation of the GHGdisclosuresthat arefree from material misstatement whether due to fraud or error.
The Managementof Millenium & Copthorne Hotels New Zealand Limitedare also responsible for selecting or
developing suitable criteria for preparing the GHGdisclosuresand appropriately referring to or describing the
criteria used.
Our responsibility
We have responsibility for:
•planning and performing the engagement to obtain limitedassurance about whether theGHG
disclosures arefree from material misstatement, whether due to fraud or error;
•forming an independent conclusionbased on the procedures we have performed and the evidence we
have obtained; and
•reporting ourconclusionto Millenium & Copthorne Hotels New Zealand Limited.
Summary of the work we performed as the basis for our conclusion
A limited assurance engagement performed in accordance with the Standard involves assessing the suitability in
the circumstances of Millenium & Copthorne Hotels New Zealand Limited’suse of NZ CSs as the basis for the
preparation of the GHG disclosures, assessing the risks of material misstatement of the GHG disclosures
whether due to fraud or error, responding to the assessed risks as necessary in the circumstances, and
evaluating the overall presentation of the GHG disclosures.
We exercised professional judgment and maintained professional scepticism throughout the engagement. We
designed and performed our procedures to obtain evidence about the GHGdisclosuresthat is sufficient and
appropriate to provide a basis for ourconclusion.
Our procedures selected depended on the understanding of the GHGdisclosuresthat aresufficient and
appropriate to provide a basis for our conclusion. The procedureswe performed were based on our professional
judgment and included inquiries, observation of processes performed, inspection of documents, analytical
procedures, evaluating the appropriateness of quantification methods and reporting policies, and agreeing or
reconciling with underlying records.
In undertaking limited assurance on the GHG disclosures the procedures we primarily performed were:
•obtaining, through inquiries, an understanding of Millenium & Copthorne Hotels New Zealand Limited’s
control environment, processes and information systems relevant to the preparation of the GHG
APPENDICES: C. KPMG ASSURANCE LIMITED OPINION
CONTENTS
INTRODUCTION
GOVERNANCE
STRATEGY
RISK MANAGEMENT
METRICS AND TARGETS
GLOSSARY
APPENDICES

6869MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED | FY24 CLIMATE STATEMENTAPPENDICES: C. KPMG ASSURANCE LIMITED OPINION
disclosures. We did not evaluate the design of particular control activities, or obtain evidence about their
implementation;
•inquiringwith relevant staff regarding any matters that arose in the application of the selected boundary
in establishing the emissions inventory;
•performingwalkthroughs of key processes and data sets;
•agreeinga selection of GHG emissions data to relevant underlying source documents and re-
performingemission factor calculationsfor a limited number of items;
•consideringthe presentation and disclosures of the GHG emissions and explanatory notes against the
requirements of thecriteria
The procedures performedin a limited assurance engagement vary in nature and timing from, and are less in
extent than for a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited
assurance engagement is substantially lower than the assurance that would have been obtained had a
reasonableassurance engagement been performed.
Our independence and quality management
This assurance engagement was undertaken in accordance with NZ SAE 1. NZ SAE 1 is founded on the
fundamental principles of independence, integrity, objectivity, professional competence and due care,
confidentiality and professional behaviour.
We have complied with the independence and other ethical requirements of Professional and Ethical Standard 1
International Code of Ethics for Assurance Practitioners (including International Independence Standards) (New
Zealand) (PES 1) issued by the New Zealand Auditing and Assurance Standards Board, which is founded on
fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and
professional behaviour.
The firm applies Professional and Ethical Standard 3 Quality Management for Firms that Perform Audits or
Reviews of Financial Statements, or Other Assurance or Related Services Engagements(PES 3), which requires
the firm to design, implement and operate a system of quality control including policies or procedures regarding
compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
We have also complied with Professional and Ethical Standard 4 Engagement Quality Reviews(PES 4) which
deals with the appointment and eligibility of the engagement quality reviewer and the engagement quality
reviewer’s responsibilities relating to the performance and documentation of an engagement quality review.
Our firm has also providedother servicesto the group in relation to a statutory audit of the financial statements,
taxation complianceandtaxation advisory to Millenium & Copthorne Hotels New Zealand Limited. Subject to
certain restrictions, partners and employees of our firm may also deal with Millenium & Copthorne Hotels New
Zealand Limitedon normal terms within the ordinary course of trading activities of the business of Millenium &
Copthorne Hotels New Zealand Limited. These matters have not impaired our independence as assurance
providers of Millenium & Copthorne Hotels New Zealand Limitedfor this engagement. The firm has no other
relationship with, or interest in, Millenium & Copthorne Hotels New Zealand Limited.
As we are engaged to form an independent conclusionon the GHG disclosures prepared by Millenium &
Copthorne Hotels New Zealand Limited, we are not permitted to be involved in the preparation of the GHG
disclosuresas doing so may compromise our independence.
The engagement partner on the assurance engagementresulting in this independentassurance report is Geoff
Lewis.
KPMG
Auckland
28April 2025
CONTENTS
INTRODUCTION
GOVERNANCE
STRATEGY
RISK MANAGEMENT
METRICS AND TARGETS
GLOSSARY
APPENDICES