Climate Related Disclosures FY25

VITAL HEALTHCARE PROPERTY TRUST vhpt.co.nz
Managed by
Northwest Healthcare Properties Management Limited


MARKET RELEASE
21 October 2025

CLIMATE RELATED DISCLOSURES FY25
Northwest Healthcare Properties Management Limited as manager of Vital Healthcare
Property Trust (Vital) has today lodged its Climate Related Disclosure in relation to Vital for
the reporting period ended 30 June 2025 under the Aotearoa New Zealand Climate
Standards.

– ENDS –
ENQUIRIES
Chris Adams
Co-Head, ANZ, Northwest Healthcare Properties Management Limited
Tel +61 408 665 332, Email chris.adams@nwhreit.com
Michael Groth
Chief Financial Officer, Northwest Healthcare Properties Management Limited
Tel +61 409 936 104, Email michael.groth@nwhreit.com

About Vital (NZX code VHP):
Vital Healthcare Property Trust is an NZX-listed fund that invests in high-quality healthcare
properties in New Zealand and Australia including private hospitals (~78%* of portfolio value),
ambulatory care facilities (~18%* of portfolio value) and life science facilities (4%* of portfolio
value).
Vital is the leading specialist listed landlord of healthcare property in Australasia.
Vital is managed by Northwest Healthcare Properties Management Limited, a subsidiary of
Toronto Stock Exchange listed Northwest Healthcare Properties REIT (TSX: NWH-UN.TO), a global
owner and manager of healthcare infrastructure.
For more information, please visit our website: www.vhpt.co.nz
For more information about Northwest, please visit: www.nwhreit.com
__________________________________
* All figures are as at 30 June 2025, NZD/AUD exchange rate of 0.9275.

---

Climate Related
Disclosure

2025
Navigating change
with purpose
Richard Roos (Orange)
Michael Groth (Light Blue)
Vanessa Flax (light purple)
Chris Adams (Light Green)
Liz Ingram (Yellow)
Key for Verification
certificate statements

Tēnā koutou,
Northwest Healthcare Properties Management Limited (the Manager), being the manager of
Vital Healthcare Property Trust (Vital), is a climate reporting entity under the Financial Markets
Conduct Act 2013 and the Financial Reporting Act 2013. The Manager is proud to present this
Climate Statement in relation to Vital for the 12 months ended 30 June 2025 (FY25), our second
under the Aotearoa New Zealand Climate Standards (NZ CS)
1
.
Purpose of this Climate Statement
The purpose of this Climate Statement is to report on Vital's
climate-related risks and opportunities, enabling investors
and other stakeholders to assess the entity's strategy,
governance, risk management and the use of metrics and
targets to manage these impacts, based on relevant industry
scenarios. These plausible scenarios are not presented as
expectations of what will happen but what could happen to
assist Vital’s stakeholders to better understand Vital’s strategy
and investments.
ESG achievements
During FY25, Vital strengthened its focus on Environmental,
Social and Governance (ESG) outcomes, continuing to
support resilient healthcare infrastructure across its portfolio.
Key highlights this year include:
• Submission to GRESB
2
for the fifth consecutive year,
with strong results in both standing investments and
development submissions, demonstrating continued
transparency and performance benchmarking.
• Commenced climate-resiliency site assessments, to
further understand and manage physical climate risks.
• Achieved 6 Star Green Star Design & As Built
certifications for two completed developments:
Playford Health Hub Stage 2, in Adelaide and the
GenesisCare Integrated Cancer and Health Centre,
in Sydney, representing leadership in sustainable
design and construction.
• Achieved reasonable assurance over Scope 1 and
Scope 2 emissions, and limited assurance over full
Scope 3 emissions inventory.
Future focus
In FY25, Vital continued to strengthen its approach to
managing climate-related risks and opportunities, building
on the foundation established in previous years. A key
focus this year has been the commencement of site-level
climate resilience assessments across our portfolio to
better understand the vulnerability of our assets to physical
climate risks. These assessments are designed to inform both
mitigation strategies and adaptation pathways, supporting
Vital's ambition to build a future-ready portfolio.
We have also transitioned to a new third-party data
collection provider to improve the efficiency, accuracy and
comprehensiveness of our environmental performance data.
The new platform automates data capture and builds on
the data collection process established in prior years and
Vital continues to work with our tenants to capture tenant
consumption data to ensure we are in a position to meet
evolving regulatory disclosure obligations.
Focusing on climate-related performance and enhancing the
sustainability and resilience of our portfolio is a key strategic
focus and is designed to improve asset performance, deliver
stable and growing total Unit Holder returns and support
Vital’s recognition as an ESG sector leader. The insights
gained through the preparation of this Climate Statement
have directly informed the development and ongoing
implementation of our environmental strategy.
We acknowledge that, like many of our peers, we are still
in the early stages of this journey, however, Vital remains
committed to continuous improvement, transparency
and collaboration as we work toward our long-term
decarbonisation and climate resilience goals.
1
This Climate Statement was prepared in accordance with Climate Standard 1 (Climate-related Disclosures) (NZ CS 1), Climate Standard 2 (Adoption of
Aotearoa New Zealand Climate Standards) (NZ CS 2) and Climate Standard 3 (General Requirements for Climate-related Disclosures) (NZ CS 3).
2
GRESB is an international and independent standards organisation which reviews over 2,200 entities in 80 markets representing over US$9 trillion
in investments.
Introduction
Nā māua noa, nā
Dr Michael Stanford
Independent Director & Chair of the Audit Committee
Graham Stuart
Independent Chair
Contents
All values in this report are in NZ dollars
unless stated otherwise.
This Climate Statement was approved by the board of directors of the Manager (Board) on 17 October 2025.
Introduction 3
Governance 6
Strategy 9
Risk Management 25
Metrics and Targets 26
Glossary & Acronyms 32
Appendices 33
CLIMATE RELATED DISCLOSURE 2025
|
3

Vital is managed by Northwest Healthcare Properties Management Limited, a subsidiary of a
publicly listed healthcare property group, Northwest Healthcare Properties REIT (Northwest),
based in Toronto, Canada, with global assets of approximately NZ$9.9 billion under
management and 220 staff across seven countries.
Vital’s Manager
Vital is the only specialist owner of healthcare
property listed on the NZX with a portfolio
of hospitals and ambulatory care facilities
across Australia and New Zealand valued
at approximately $3.2 billion.
Vital owns healthcare property with the
purpose of delivering a long-term income
stream for its investors.
About Vital
To be Australia and New Zealand’s leading listed
healthcare property fund.
Vision
To deliver stable and growing total Unit Holder returns
including an attractive risk-adjusted income distribution,
majority sourced from healthcare real estate.
Mission
Guide to reading this Climate Statement
Disclaimer
This Climate Statement includes forward-looking statements
and metrics and other disclosures about the future, which are
inherently uncertain. It also includes disclosures that are based on
incomplete or estimated data and related judgements, opinions and
assumptions. Those disclosures are subject to known and unknown
risks, uncertainties and other factors, many of which are beyond the
Manager’s or Vital’s control.
Climate change is an evolving challenge, with high levels of
uncertainty, particularly over long-term time horizons. Risks and
opportunities described in this Climate Statement, and the Manager’s
strategies to achieve its targets, may not eventuate or may be more
or less significant than anticipated. There are many factors that
could cause Vital’s actual results, performance or achievement of
climate-related metrics, including targets, to differ materially from
that described.
Readers are therefore cautioned not to place reliance on such
statements in light of the uncertainty in climate metrics and modelling.
Any forward-looking statements included in this Climate Statement
are based on the Manager’s current views and expectations and are
current only as at the date of this Climate Statement. The Manager
and Vital do not:
• represent that those statements and opinions will not change or
will remain correct after publishing this Climate Statement;
• undertake to revise or update those statements and opinions if
events or circumstances change or unanticipated events happen
after publishing this Climate Statement, other than as required
by law; or
• give any representation, guarantee, warranty or assurance about
its future business performance or that the outcomes expressed
or implied in a forward-looking statement made in this Climate
Statement, including its performance against climate-related
targets, will occur.
The Manager expects that some forward-looking statements
made in this Climate Statement may be amended and updated
in future documents as the quality and completeness of data and
methodologies continue to evolve and improve.
Joint Venture
168 properties
~A$5.7bn AUM
~A$2.9bn development pipeline
48 staff based across three offices
in Melbourne, Sydney and Auckland
59 properties
~A$9.2bn / ~NZ$9.9bn AUM
C$8.2bn
~A$2.7bn AUM
further A$2.5bn available
25 properties in Australia
7 countries
Canada, the United States, Brazil, Germany,
the Netherlands, Australia and New Zealand
$0.3bn committed projects all of which
are under construction
4,791 hospital beds and
1,104 mental health beds
A wholesale fund jointly with a
sovereign wealth fund being 70%
and Northwest 30%
Listed on the New Zealand
Stock Exchange (NZX: VHP)
Northwest ownership interest 28%
~A$2.9bn AUM
~NZ$3.2bn
Market Capitalisation
~A$1.2bn / ~NZ$1.3bn
20 in Australia (~A$1.9bn)
and 14 in New Zealand (~NZ$1.1bn)
34 properties
AUSTRALIA AND NEW ZEALAND
Northwest
Quarterly Data Update
as at 30 June 2024
Total A/NZ AUM includes NZ$251.65m of contracted but not yet settled divestments for Vital
Vital AUM excludes NZ$251.65m of contracted but not yet settled divestmentsv
Visit the A/NZ regional Newsroom
Connect with us on LinkedIn
Listed on the Toronto
Stock Exchange (TSX: NWH)
Over 220 staff based across eight offices
To the maximum extent permitted by law, the Manager and Vital do
not accept responsibility for the accuracy or completeness of any
forward-looking statements or any liability whatsoever (including for
negligence) for any loss howsoever arising from any use of this Climate
Statement or reliance on anything contained in it or omitted from it.
Assurance
Although several external parties contributed to the preparation
of this Climate Statement, including reviews by Vital's carbon auditor
and the Manager's legal adviser, the only component which has
received external assurance is the GHG inventory (refer to Appendix
A for details).
Use of adoption provisions (exemptions)
NZ CS 2 permits the Manager to elect to use one or more
of the adoption provisions in NZ CS 2 for its first and second
reporting periods. The Manager has elected to use the following
adoption provision:
• Adoption provision 2, which exempts the Manager from
disclosing the anticipated financial impacts of climate-related
risks and opportunities reasonably expected by the Manager
and from disclosing an explanation of why the Manager is unable
to disclose this information (if applicable). It also exempts the
Manager from disclosing a description of the time horizons over
which the anticipated financial impacts of climate-related risks
and opportunities could reasonably be expected to occur.
For readability, the order of disclosures in this Climate Statement
differs from the order in NZ CS 1.
Currency and date
All numbers are in New Zealand dollars as at 30 June 2025
(Vital’s last balance date) unless otherwise stated.
Statement of Compliance
With the adoption provision we have noted above being
applied, this Climate Statement complies with the NZ CS.
Scope
As Vital’s portfolio of assets is trans-Tasman, our climate-related
disclosure encompasses assets in both countries.
Northwest is an experienced manager, owner,
developer and investor of healthcare property
particularly in Australasia with approximately A$5.7
billion of healthcare assets, an approximate A$2.9
billion development pipeline and 48 staff across
offices in Auckland, Melbourne and Sydney.
The Manager’s primary responsibilities include the day-
to-day administration of Vital’s portfolio management,
sourcing new opportunities and conducting due
diligence on potential acquisitions. The Manager
is also responsible for providing specialist property
management, project management, development
management and leasing services to Vital.
Vital's relationship with the wider Northwest group
is illustrated below.
Maitland Private Hospital, Maitland
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AU DIT
COMMITTEE
OPERATIONAL
RISK COMMITTEE
CLIMATE WORKING GROUP
SUSTAINABILITY TEAM
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.
Governance
Role of the Board
The Board has overall responsibility for the oversight of climate-
related risks and opportunities for Vital.
The Board oversees risks and opportunities associated with climate
factors and the preparation of climate statements and ensures
that the Manager’s records and documents (including financial
reports, climate statements and climate-related records) are true,
correct and conform to the NZ CS standards. The Board also
approves and guides the management of climate-related risks
and opportunities presented by the Operational Risk Committee
(ORC) and the Climate Working Group (CWG) via members
of Vital’s leadership team (including Co-Heads of Region, CFO
and Regional General Counsel), including the approval of
environmental targets which directly affect business operations.
Vital’s commitment to achieving a minimum 5 Star Green Star rating
on all new major developments is a Board approved target and
remains a prominent consideration during the evaluation process
for acquisitions and developments.
The Board has visibility of progress against this target through the
reporting processes described below.
The Board also has had visibility of progress against Vital’s net zero
2050 target and the metrics disclosed in this Climate Statement
as part of their review and approval of this Climate Statement and
through associated Board update papers and presentations.
Board training
The Board and the Audit Committee each has four scheduled
meetings per annum. The Board also has at least two climate-
specific board training and / or discussion sessions per annum.
In FY25, these training and discussion sessions comprised
four separate events (exceeding the minimum 2 session
commitment) which emphasised the critical role of boards and
executives in integrating climate risks into governance, strategy
and financial decision-making, with a focus on fiduciary
duties, credible transition planning and aligning profit with
planetary sustainability.
Board composition and experience
Currently, the Manager’s Board comprises five highly qualified
Directors based in Auckland, Toronto and Melbourne, three
of whom are independent. The Directors and links to their
biographies can be accessed here.
The Board is expected to have appropriate experience and
skills across multiple competencies including sustainability and
climate-related matters, and Directors are expected to contribute
to all elements of Vital’s strategy and Risk Framework. The Board
exercises its responsibilities collectively and no one Director
assumes responsibility for any singular matter.
The skills matrix below summarises the Board's skills,
competencies and experience, which is subject to no less than
annual review. The skills matrix includes a self-assessment of each
Director’s awareness and understanding of climate change and
ESG / sustainability.
Climate-related risks and opportunities are reported to the Board
and, where applicable, the Audit Committee through standing
quarterly board reports (notably standard sections of the Manager,
Portfolio and Development reports with other reports on an ad hoc
/ exceptions basis).
Role of the Audit Committee
The Board has established an Audit Committee to assist the
Board to discharge its responsibilities, including in relation to
climate-related disclosures. The Audit Committee is responsible
for reviewing the climate-related disclosure and advising the
Board whether, in the Committee’s view, that disclosure complies
with applicable standards and legislative requirements and, if
appropriate, recommending approval of the climate-related
disclosure by the Board. The Committee is also responsible for
ensuring that appropriate controls and assurances are implemented
for the preparation, review, verification and approval of
climate-related disclosures.
The Audit Committee is informed of climate-related risks and
opportunities in the context of climate-related disclosures including
through reports from the Manager, Climate Working Group,
CFO and external auditors.
Skills & Experience
1

Graham StuartAngela BullMike BradyCraig Mitchell
2
Michael StanfordZachary Vaughan
Accounting / Finance
/ Economics
•
O
••
O
•
Commercial Real Estate /
Asset Management
/ Valuation
••••
O
•
Corporate Governance
••••••
Legal / RegulatoryO
••
OO
•
Healthcare Operator
•
O
Sustainability / ESG
including Climate
Related Matters
OOOOO
•
•
O
HIGHLY SKILLED / EXPERIENCEDMODERATE SKILLS / EXPERIENCE
• Co-Heads of Region
• CFO
• Regional General Counsel
• Sustainability Managers
• Senior Director, Operations
and Sustainability
• Financial Controller
• Asset Managers
• Development Managers
Quarterly agenda plus at least
2 climate specific sessions per
annum
Oversees, reviews and approves Vital’s strategy and risk
management framework, including Vital’s sustainability
strategy and transition plan, climate related disclosures and
environmental targets.
OVERSEE
Informs the Board of climate related risks and
opportunities that have been managed by the CWG.
INFORM
Assesses, monitors and reviews climate
related risks and opportunities.
MANAGE
Identifies and analyses climate
related risks and opportunities.
IDENTIFY
Playford Health Hub, Adelaide
1
Director experience is considered on an expansive basis and may not necessarily relate or be relevant to a particular jurisdiction. For example, a director may be noted as
having legal / regulatory skills and experience but this does not necessarily mean it is for New Zealand or Australia.
2
Craig Mitchell was on the Board of the Manager until his resignation on 12 August 2025, when Zachary Vaughan was appointed as Non-Independent Director of the Manager.
V ITAL
BOARD
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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.
Strategy
Role of management
The Board has delegated identification, monitoring and management of key risks and opportunities
including climate-related matters, to the ORC. The ORC provides updates and recommendations to the
Board in relation to climate-related risks via members of Vital’s leadership team as noted above. The ORC
is comprised of senior members of the Manager’s leadership team, representing the capital transactions,
development, finance, funds management and legal teams. The ORC meets monthly to consider a variety
of risks, including climate-related risks, informed by Vitals' Risk Framework.
The ORC has delegated day-to-day management of climate-
related risks and opportunities to the CWG, which comprises
key members of Vital’s senior management team (including the
Co-Heads of Region, CFO and Regional General Counsel) and
Northwest’s full regional Sustainability Team. The CWG meets
quarterly and a register of climate impacts is a standing agenda
item including any asset-level climate impacts reported by property
managers, an overview of anticipated climate impacts and any
emerging transition risks identified from the Sustainability Team or
Regional General Counsel. If risks are deemed material, the CWG
may request further action or escalate to the ORC.
The CWG and the Sustainability Team ensure that the ORC is fully
informed of material climate-related risks identified by the CWG
and Sustainability Team. The Board is updated on activities or
reports of the CWG via its members who are part of Vital’s senior
management team.
Climate-related risks are also considered by management as part
of the Manager’s investment process as properties are proposed
to be acquired, sold and / or developed by Vital. Climate-related
opportunities are considered by management through business
proposals and broader short-term capital deployment planning.
These matters are reported to and considered by the Board through
the management committees and processes described above.
Climate-related risks and opportunities are a key component of
Vital’s Board approved 5-year strategy (as further described in
the Strategy section below), are a standing item on acquisition,
disposal and development checklists and are a standard reporting
item to the Board when seeking consent for an acquisition, disposal
or development.
The CWG plays a central role in the preparation, management,
and ongoing review of Vital’s climate transition plan. This includes
coordinating cross-functional inputs to ensure that the plan aligns
with the Board-approved 5-year strategy to reflect current and
emerging climate-related risks and opportunities. The CWG is
responsible for collating, analysing, developing and recommending
emissions reduction pathways, policies and decarbonisation
initiatives to form an actionable transition plan tailored to Vital’s
asset portfolio and operations. The CWG monitors progress
and reviews the plan at least annually, incorporating any
material findings or changes before recommending updates to
the ORC and, where relevant, the Board. This iterative process
ensures that the transition plan remains dynamic, credible and
integrated with Vital’s broader risk management and investment
decision-making processes.
Boulcott Hospital, Wellington
Sustainability forms a key component of all aspects of Vital’s Board approved strategy and Vision to
be Australia and New Zealand's leading listed healthcare property fund, consistent with Vital's Mission
Statement to deliver stable and growing total Unit Holder returns including an attractive risk-adjusted
income distribution, majority sourced from healthcare real estate. Key sustainability aspects of Vital’s 5
year strategy have been extracted and summarised on the following page to give readers of this Climate
Statement a sense of the Manager’s focus. The ambitions described on the following page have not
been formally adopted by the Manager as “targets” or “metrics” for the purposes of the NZ CS and
this Climate Statement.
Business model and sustainability strategy
Vital only invests in healthcare real estate (primarily hospital, out-patient and research facilities)
and is landlord to many of Australia and New Zealand’s leading private hospital operators.
Healthcare is a defensive sector with expenditure largely
government or insurer funded or non-discretionary. As a result,
Vital’s income is less impacted by economic or business cycles than
other classes of investment property.
Ageing and growing populations in both Australia and New
Zealand coupled with rising life expectancy and ongoing
improvements in science, technology and care continue to lead
to increased demand for healthcare. Increased demand supports
Vital’s investments.
Key characteristics of Vital’s business model include:
• A market-leading weighted average lease expiry
or term (known as WALE or WALT).
• Embedded revenue growth under indexed leases.
• Strong, established tenant / operators and high
occupancy rate.
• Defensive operating fundamentals based on cure
healthcare focus.
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Healthy Planet
Actively progress net zero by 2050 commitment
1

through capital allocation to deliver new properties, adapt
existing properties and inform our approach to acquisitions
and disposals, to be:
• Energy-efficient, built and operate with lower-
emissions, and be powered by 100% renewable
energy for all new developments and any purchased
electricity by Vital
• Resilient to climate impacts with portfolio wide
management and mitigation plans in place
• Verified by third party certifications for all developments
and existing assets where possible
Thriving Partners
Move sustainability engagement with operating
partners from passive one-way engagement to
strategic collaboration, achieving top quartile,
NPS performance that prioritise tenants:
• Improving asset efficiencies and reducing Vital’s
scope 3 emissions
• Activating renewable energy strategies across
20% of tenant-controlled assets by 2030
• Executing green clauses across all new leases,
renewals and development deeds reflective of
Vital’s ESG strategy
Inclusive Company
Build for our current team members as well as our future
employees through developing and delivering a peer
comparable ‘people strategy’ that:
• Creates a culture that demonstrates Northwest’s
values and promotes sustainability to encourage long-
term thinking
• Prioritises diversity, inclusiveness, and equity through
action and transparent disclosures
• Builds capacity through professional development,
training, and leadership opportunities
• Ensures workplace safety and wellbeing through
tracking, transparent disclosures and zero injury targets
Strong Communities
Investing in the communities we serve and influencing
the sustainability practices of our supply chain through:
• Protecting human rights and sourcing sustainably,
aligned with our modern slavery requirements
• Promoting cultural awareness through Reconciliation
Action Plan (RAP) deliverables and development
of a Māori engagement strategy
• Supporting the community through volunteering
and charitable giving
Specifically in relation to climate change for the Vital portfolio,
among other things, the Manager:
1. Considers climate change risks and opportunities as part of
all acquisitions and developments (refer to the Governance
section above for details about how this occurs); and
2. Has a programme in place to upgrade the efficiency of its
property portfolio informed through the completion of portfolio
wide energy audits and subsequent capital planning.
Playford Health Hub, Adelaide
GenesisCare Integrated Cancer and Health Centre, Sydney
1
Vital is committed to achieving net zero emissions by 2050 recognises that this long-
term goal must be supported by interim targets to ensure credible progress. Over
the past three years, Vital has developed the data, methodologies and strategies
necessary to set science-based interim targets. While Vital is not yet in a position to
publish these targets, Vital is committed to disclosing them in future reporting periods.
In the meantime, Vital will continue to report transparently on annual emissions
performance, energy efficiency initiatives and progress toward alignment with the
Science Based Targets initiative.
FY25 climate-related impacts
The Manager monitors the impacts of climate-related events on
Vital's assets, developments and operations. Climate-related events,
including the various risks identified through the scenario analysis
described below, could impact the business continuity of Vital’s
tenants which, in turn, could impact Vital’s rental income.
To determine whether we have any material current physical
and transition climate-related impacts, in FY25 we conducted a
portfolio-wide assessment of climate-related events that could
impact our portfolio and analysed potential impacts on asset
performance. Climate hazards assessed include power outages
(resulting from storms or electrical grid strain), extreme heat events,
wildfires, poor air quality (e.g. from wildfire smoke), storms,
flooding, erosion, landslides, drought, water shortages, rising sea
levels, ocean surge and other extreme weather events. Although
not climate-related, earthquakes were also included due to their
comparable operational and financial disruption potential.
Where climate-related risks were identified, the financial impact has
been determined and considers costs to rectify damage, equipment
upgrade or replacement and other potential operating cost impacts
such as insurance premiums or energy costs. Financial materiality
has been determined using defined thresholds aligned with our
risk management framework to ensure that any climate-related
impacts with the potential to influence unitholder value and strategic
decision-making are disclosed and addressed. We continue to
refine the financial impact and vulnerability risks through detailed
site specific assessments and will incorporate these findings in
future reports.
During FY25 a number of assets were exposed to climate related
risks, including Vital’s Currumbin Clinic which was affected by heavy
rain, impacting patient rooms. As a result, roof remediation works
were completed during the reporting period and post-completion
inspections confirmed that the sub-surface membrane is functioning
as intended. As a result of these works, there was no impact to the
asset during Cyclone Alfred in May 2025.
There have been other sizable storms including a large
weather system in May 2025 that impacted the Wellington and
Lower Hutt regions in New Zealand, however none of Vital’s assets
experienced any physical impacts as a result of these storms.
Refer to page 17 for details on the anticipated future impacts
of Vital’s transition risks.
In FY25, Vital experienced no material current climate-related impacts.
Accordingly, Vital has not disclosed financial climate-related impacts for FY25.
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Scenario analysis
Vital played a key role in developing sector-specific climate
scenarios by contributing to two national reports. These sector
scenarios can be found here:
New Zealand Green Building Council –
Construction and Property Sector Scenarios
Climate Change Scenarios for the Health Sector
Vital’s entity level climate scenarios
The scenario analysis has been used to inform Vital’s transition
plan. During FY24, the Manager reviewed both the Construction
and Property Sector and the Health Sector scenarios. Workshops
involving the Sustainability Team, Property Managers and the CWG
were held to confirm alignment between Vital’s business and the
climate scenarios, both in New Zealand and Australia albeit with
some areas having more or less emphasis due to the specific nature
of Vital (i.e. being a specialist owner of only healthcare property
and not being a healthcare operator).
This scenario analysis at a sector level, adjusted for Vital specifically,
enabled the CWG to generate a comprehensive list of climate-
related risks and opportunities, along with their associated current
and anticipated direct and indirect business impacts. No parts
of Vital's value chain were specifically excluded from this risk
identification process although Vital has not undertaken a formal
value chain mapping exercise.
The CWG held a workshop in FY25 to review and update our
understanding of how climate change could affect Vital’s business
and what actions should be taken. The session focused on three
main areas:
1. Review of key external drivers identified in FY24 to determine
relevance for FY25;
2. Confirmation that the climate scenarios developed remain
relevant (noting that no new bespoke regional sector scenarios
have been released in Australia where ~70% of our portfolio
is situated); and
3. Assess how Vital's strategy would perform in different plausible
futures across the agreed climate scenarios.
Vital is taking a proactive approach to identifying and monitoring
climate-related risks and opportunities, should elements within the
scenarios identified eventuate. Included in this are the six critical
uncertainties
1
, excluding climate related weather events which
are addressed through property-level assessments. The reviews
undertaken in FY25 have resulted in no changes to the climate
scenario narratives developed in FY24.
These scenarios are not assessed in isolation but are integrated into
the transition plan aspects of Vital’s business strategy, informing how
we prioritise risk management, capital allocation and engagement
with our tenants over time.
1 Engage stakeholders
External stakeholders – Refer to the Construction and Property
and Healthcare Sector Scenarios for the sector-wide working
group representatives and Vital’s FY24 Climate Related
Disclosure for external consultants who were commissioned to
perform a gap analysis against the strategy disclosures under
NZ CS 1 and to facilitate capabilities-building workshops on
financial impacts and transition planning.
Internal stakeholders – Members of the CWG, the
Sustainability Team and representatives from each business
division of the Manager.
2 Define the problem
Internal question – “how could climate change
plausibly affect Vital’s current business operations and
long-term strategy to provide real estate solutions to the
healthcare industry, what should we do and when?”
Further detail on these steps
is set out below. Climate
adaptation remains a priority
as part of Vital’s sustainability
strategy and will be
continuously refined.
1
Engage stakeholders
and prime an effective
working group
2
Define the problem
5
Draft Narratives
4
Select temperature
outcomes and
emissions pathways
3
Identify driving
forces and critical
uncertainties
6
Assess strategic
resilience
3 Identify driving forces and critical uncertainties
The consolidated sector driving forces applicable and material to Vital are listed below. For more information on the critical uncertainties
associated with key driving forces please refer to the Construction and Property Sector Scenarios document (see link page 12).
The process undertaken to develop Vital's climate scenarios in FY24 is illustrated in the chart below
2
.
RDX, Gold Coast (Artist’s Impression)
1
The broad-scale external factors that are most influential and most uncertain are known as critical uncertainties and provide a means of differentiating scenarios. Different
scenarios will explore the ways these critical uncertainties could materialise. (Source: External Reporting Board's "Navigating climate statements Readers’ guide" June 2024,
page 7)
2
Adapted from External Reporting Board’s “Staff Guidance Entity Scenario Development”, September 2023.
Construction & Property:Health:
• Increasing frequency and severity of extreme weather
events
• Availability of low carbon materials to meet regulations
and/or market demand
• Regulatory changes (including resilience, low carbon and
circular economy regulations)
• Pressures on centralised infrastructure/ageing infrastructure
• Price of carbon (and impact on cost of materials)
• Cultural
• Environment
• Financial/Economic
• Policy
• Social/structural
• Technology
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4 Select temperature outcomes and emissions pathways
1
Scenario 1
Net Zero by 2050
(1.5 ̊C) – SSP1 -1.9
1
| RCP2.6
Scenario 2
2
Delayed Transition
(<2 ̊C) – SSP1 -2.6 | RCP2.6
Scenario 3
Hot House World
(3 ̊C+) – SSP3 -7.0 | RCP8.5
5 Draft narratives
Vital's scenario narratives on plausible outcomes are prepared for
each of the temperature scenarios consolidated at an entity level for
applicability. The narratives are detailed on the following pages.
6 Assess strategic resilience
Risks and opportunities arising from the narratives are evaluated
utilising climate science forecasting (derived from IPCC AR5 and
AR6 where applicable) including impacts to Vital’s assets and
developments. This assessment follows the narratives below.
0
30000
20000
10000
-10000
40000
50000
60000
70000
80000
1990
Global Carbon Emissions (Mt CO
2
)
199520002005201020152020202520302035204020452050205520602070208020902100
1
The SSP-RCP scenarios incorporate assumptions about future socioeconomic developments, such as population growth, economic trends, and technological advancements.
The SSP-RCP scenarios assume a certain level of global cooperation and implementation of climate policies. (NZ Ministry for the Environment).
2
Scenario Two (Delayed Transition, <2 ̊C – SSP1-2.6 | RCP2.6) shows global emissions falling below zero because the delayed peak in emissions is followed by a rapid and
stringent decarbonisation effort after 2030. This shift creates strong financial incentives for innovation in carbon removal technologies, with sequestration, capture, and storage
required to play a major role in reducing emissions by 2050. Source: NZGBC Climate Scenarios for the Construction and Property Sector found on page 24 of the report, in
the section “Emissions Trajectory and Alignment of Global Action” under Scenario Two – Disorderly (Delayed Transition).
The temperature outcomes for scenarios 1 and 3 are defined under NZ CS 1 and scenario 2
is consistent with the Construction & Property and Health Sector Scenarios.
The graphs above show the projected global GHG emissions
trajectory for each of these scenarios. These graphs are illustrative
only and do not represent predictions or expectations of the future,
including in relation to Vital’s future GHG emissions.
Vital’s three specified climate scenarios are based on the same
underlying assumptions and data sets as the Health Sector and
Construction & Property Sector scenarios but adapted to use only
relevant data sets for Vital. The Manager has not conducted any
additional or separate modelling for its climate scenarios.
Refer to the sector specific climate scenario documents (linked on
page 10) for information on the data used to construct the sector
specific scenarios and associated assumptions and limitations.
Vital’s Climate Scenario Narratives
This section provides narratives for Vital's three climate related
scenarios, which reflect possible future states to test the resilience
of Vital’s current business model and strategy, and help identify
potential climate related risks and opportunities. The scenarios are
hypothetical and do not represent predictions or expectations of
the future. Instead, they provide plausible potential outcomes under
three different temperature scenarios. All wording in these narratives
come from the Construction & Property and Health Sector Scenarios
noted on page 12 (limited to areas relevant for Vital) with Australian
material added from their National Climate Risk Assessment reports.
Scenario 1 – Net Zero by 2050
Labelled an ‘Orderly’ scenario where the world succeeds in
limiting global temperature increases to 1.5°C above preindustrial
(1850-1900) temperatures by 2100. Global emissions decline
steadily to achieve net zero CO2 emissions globally by 2050. The
energy grid shifts rapidly away from fossil fuel use, with the New
Zealand energy grid reaching 100% renewable by 2050 and
Australia following close behind. Alternative fuels are used as a
backup, and renewables are utilised onsite instead of fossil fuels.
Throughout the 2020s and 2030s, the cost and lead-times for low
carbon materials and products rise, but by 2040, they become
more cost and time effective than traditional materials. This shift
prompts significant growth in the construction sector as carbon
supporting infrastructure is replaced with sustainable alternatives.
Regulatory changes enforce government procurement policies
targeting recycled materials and circular economy principles,
along with stringent energy and carbon caps for new buildings.
Existing buildings must disclose energy and carbon performance
and transition away from fossil fuels while scaling up energy
efficiency practices. New buildings prioritise low-carbon
techniques, incurring higher construction costs but yielding long-term
operational savings and improved resilience.
Failure to meet emissions targets results in financial penalties,
driving entities to pursue emissions reduction strategies. Market
awareness of climate change risks prompts demand for low carbon
buildings, with tenants seeking energy-efficient options.
Globally aligned efforts manage climate-related refugees, with
New Zealand and Australia experiencing modest net immigration.
Severe climate events persist into 2050 but stabilise by 2100,
prompting initial increased insurance premiums and retreat from
floodplains, coastal areas and wildfire-prone areas. Reliance on
offsets decreases as emissions decline, with strategic partnerships
between public and private sectors advancing climate policy.
Climate change friendly financing (e.g. climate linked loans)
increases to develop resilient infrastructure funded by the
superannuation age gradually rising to 70 by 2100. Domestic
migration shifts from high-risk areas and urban density increases
as the impacts from sea level rise push people away from coastal
areas. Renewable energy uptake grows, driven by high emission
pricing and appealing government incentives for self-production
(e.g. solar). Despite initial increased costs to landlords of healthcare
and aged care services, appetite from tenants for efficient and
resilient buildings allow costs to be passed down.
Scenario 2 – Delayed Transition
The world fails to implement the changes required to limit global
temperature increases to 1.5°C above pre-industrial levels by
2100. Global emissions continue to rise during the 2020s as
historical social, economic and technological trends continue.
However, the increasing frequency of climate-related physical
events, and concerns about meeting Paris Agreement goals
drives a sudden shift in global policy around 2030, when abrupt
and stringent decarbonisation policies are enacted. The private
building sector accelerates efforts to achieve interim greenhouse
gas reduction targets with pressure from investors for detailed
adaptation plans.
Rapid but disordered policy, technology, and behaviour changes
characterise New Zealand and Australia’s response to climate
issues. New Zealand leads in decarbonisation efforts, aiming
for full energy grid decarbonisation by 2050, while Australia
transitions slower due to political and economic factors. Despite
stringent policies enacted in 2030, the transition faces hurdles, such
as reliance on fossil fuels in existing buildings. Pressure from
investors and tenants for resilient buildings increases as physical
climate impacts accelerate, affecting financial viability of existing
buildings that do not decarbonise at industry pace.
Regulatory changes in 2030 demand immediate shifts in energy
and carbon requirements, leading to disruptions in the building
sector. Early movers benefit from future-proofed assets, while late
movers face challenges with stranded assets. Electricity price
hikes affect operational costs for healthcare, while low-carbon
building techniques mitigate long-term operational expenses.
Opportunities to invest in emerging technologies such as onsite
batteries or carbon capture solutions creates distinction between
industry leaders and those trying to keep pace.
By 2050, severe climate events persist, although global
temperature increases stabilise below 2°C. However, sea level
rise impacts are yet to fully manifest, necessitating further adaptation
towards 2100.
Property owners face escalating insurance premiums in areas
with consistent impacts from increased rainfall intensity, sea
level rise and wildfires with a reduction in the availability of
insurance by 2040.
Population growth, especially in older age brackets, strains
healthcare and aged care services which is exacerbated by
increased health issues due to climate change. Climate change
impacts prompt population shifts, particularly away from
vulnerable coastal / acute weather prone and wildfire-prone
areas. Health services are only located in high density areas and
follow population shifts.
GenesisCare Integrated Cancer and Health Centre, Sydney
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Scenario 3 – Hot House World
Climate policy development stalls, with no further effective climate
policies enacted. Global emissions continue to grow until 2080,
which leads to a greater than 3°C increase of global temperature
above pre-industrial levels by 2100. Exploitation of fossil fuel
resources and the continuation of energy intensive lifestyles continues
to increase around the world.
The lack of decisive policy action hinders carbon reduction
efforts, redirecting focus towards climate adaptation in the property
and construction sector. New Zealand and Australia face severe
climate impacts, leading to no further efforts to decarbonise their
respective energy grids, while Australia remains reliant on fossil
fuels due to political and economic considerations. Acute weather
events escalate, increasing frequency of rainfall intensity and cyclone
conditions creates ongoing challenges for property owners with efforts
and time focused on clean up and business interruption costs.
Continuous damage to energy producing infrastructure necessitates
building energy efficiency improvements to reduce energy demand
outside of self-generation. Demand rises for resilient healthcare
buildings in the private sector, prompting increased access to
capital and investment opportunities for companies with strong and
actionable climate adaptation plans.
The New Zealand and Australian governments prioritise post-disaster
recovery over emissions reduction, missing international targets and
straining the economy. Private funding for health services increases, but
research capacity declines, worsening social and economic crises.
Climate-related impacts elevate global household costs, driving
migration to New Zealand and within both Australia and New
Zealand from more adversely climate-affected regions. Additionally,
the rising sea levels reshape the geographic distribution of settlements
across New Zealand and Australia, with movement away from
inundated coastal areas. Population growth strains infrastructure,
reshaping settlement patterns away from coastal / acute weather
prone or wildfire-prone areas. Economic disparities widen as property
prices surge in safer areas.
Changes in behaviour are observed among New Zealanders and
Australians, particularly in adjusting to hotter summers, with outdoor
activities and work hours adapted to avoid the peak heat between
10:00-16:00 (and longer hours in Western Australia, Queensland
and the Northern Territory). Increasing number of hot days challenges
construction completion schedules.
Concerns arise regarding the water supply to health facilities. While
health facilities are prioritised, onsite storage is not equipped with the
capacity needed to supplement reductions in the main water supply.
Amidst fluctuating electricity prices tied to climate conditions, energy
providers eliminate fixed-term contracts, and expose commercial and
healthcare entities to market rate fluctuations.
Anticipated impacts of climate
risks and opportunities
Following completion of the climate scenario process, material climate-
related risks and opportunities were identified for Vital. These are set out in
the tables on page 18 and 19.
Climate-related risks and opportunities can be categorised as “physical”
and “transition” (refer to the glossary on page 32 for details). There are
interdependencies between these categories, and the impacts of risks and
opportunities can be both physical and transition.
These risks are not independent of each other and are not listed in order
of materiality. The scenarios and time horizons where the risks are expected
to be most acutely felt are identified in the table. However, risks may also
be relevant to other scenarios and time horizons.
In FY25, Vital engaged a reputable third-party specialist to develop a
tailored analytical model aimed at forecasting the quantum of climate-
related financial risks and opportunities. This initiative incorporated a
rigorous process of comprehensive data collection, gap analysis and
evaluation of the organisation’s risk tolerance. A key focus was also placed
on understanding Vital’s exposure to climate hazards and its vulnerability
to both physical and transition risks, providing a more holistic view of Vital's
climate risk profile.
The methodology employed aligns with established international frameworks,
including those set by the New Zealand External Reporting Board (XRB),
the Task Force on Climate-related Financial Disclosures (TCFD), and the
International Financial Reporting Standards (IFRS). The approach quantifies
the financial impacts of climate change through a five-stage process:
1. Identifying relevant climate scenarios,
2. Identifying climate exposures under the selected climate scenarios
(pathways and time horizons),
3. Quantifying financial impacts under each scenario,
4. Performing sensitivity and stress testing, and
5. Developing tailored risk mitigation and adaptation strategies.
Exposure and vulnerability assessments were integrated into both physical
and transition risk modelling to understand which assets, operations or
business units face the greatest threats under various climate futures. Physical
risk modelling specifically addresses key climate-related perils (e.g.,
flooding, extreme heat), and is designed to evolve through regular updates
and reviews by the ORC and CWG to ensure alignment with emerging
data and scenarios.
Findings are presented through detailed written reports, interactive
dashboards and bespoke financial models. Vital also facilitated training
sessions for the CWG to enhance internal capability and engagement
with the outputs.
Following the desktop analysis and modeling, we have commenced
detailed vulnerability, risk and resilience site assessments using the PIEVC
Protocol to identify adaptation strategies and associated costs.
Vital has elected to apply Adoption Provision 2 in relation to the
quantification of financial impacts and will disclose detailed quantitative
information on identified climate-related risks and opportunities
when applicable.
Playford Health Hub, Adelaide
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OpportunitiesTime HorizonTransition Opportunities for Vital as an entity
TechnologyS
Climate change is leading to the emergence of new products, services and markets, offering a chance to expedite decarbonisation efforts
within the healthcare real estate sector and allowing Vital to capitalise on its market-leading position in the healthcare sector. This includes an
opportunity to innovate and invest in technologies that reduce carbon emissions while enhancing the efficiency of healthcare infrastructure in
a way that provides a competitive advantage.
Development ConsiderationsM
Climate change necessitates development of a long-term strategy for sustainable development. By incorporating environmentally friendly
practices and technologies, Vital can mitigate its impact on the environment and adapt to changing climate conditions. This approach not
only promotes asset resilience but could also provide Vital with an on-going competitive advantage.
Contribute to public health
population
M
With climate change posing significant challenges to public health, there is an opportunity for providers of specialised healthcare facilities
to make a positive impact. Vital can continue to partner with healthcare providers contributing to improved public health outcomes and
addressing the evolving healthcare needs of the population in the face of climate-related risks.
Access to capitalS
Relatively early focus on the resilience of Vital’s portfolio and carbon targets could provide Vital with improved access to capital (debt and
equity) as investors and financiers look to fund assets which are more climate resilient and entities which have issued and meet appropriate
climate goals due to a mixture of mandate requirements (e.g. low carbon funds), their own ESG commitments and / or expectations of
higher long-term value / lower risk.
Transition Opportunities
Risks
Scenarios
most impacted
Time
Horizon
Anticipated impacts on specific properties and developments Potential impacts on Vital as an entity
Rainfall
Intensity
Hot House WorldM
Properties likely to suffer more regular damage as the frequency of high
rainfall events increases. This will potentially lead to some or all of the
following: limit tenant use of buildings, reduce tenant profitability, reduce
rent collection, increase operating costs and increase maintenance
capex as plant, equipment and potentially parts of buildings require
more regular repairs and / or replacement.
Stranded Asset: Extreme weather events such as rainfall
intensity, cyclones, temperature rises and drought-like
conditions will become more frequent over time. An existing
asset in the portfolio could become ‘stranded’ (i.e. unviable
to be operated by either tenant or landlord). This could
impact Vital’s returns, asset values, access to capital and /
or access to insurance which could impact Vital’s current
strategy particularly around the location of assets Vital owns
and / or develops.
Acquisition and Divestment: An asset is acquired (or an
asset is not divested) because of its location, build quality to
climate change resilience or lease terms and conditions will
be materially adversely impacted (net cash yield and/or
valuation/IRR) by climate change.
Development: Vital has a large and long-term development
pipeline. An asset during or post construction may be
adversely impacted (net cash yield and/or valuation/IRR)
by climate change impacts such as increased intensity of
cyclone events, increasing number of hot days or increasing
rainfall intensity.
Asset Management: Vital’s portfolio traditionally has
long term lease duration (i.e. 20+ years ), the impacts of
chronic physical climate-related impacts expose Vital to
potentially unrecoverable costs including by way of rent
review mechanisms that are not linked to ‘climate change
inflation’ (i.e. restrictions on market reversions via caps /
collars or material time intervals between reversion events),
restrictions on the recoverability of expenses and/or the
ability to recover commercial returns on increased capital
expenditure / R&M required to maintain / build climate
change resilience.
Capital Management: Efficiently priced capital (debt
and equity) may not be available to Vital on acceptable
terms and conditions because of insufficient climate
change ambition and/or progress on climate resilience /
greenhouse gas emission reductions.
Cyclone
Events
Hot House WorldL
Property damage from high winds which may result from surrounding
infrastructure or vegetation. This will potentially lead to some or all of the
following: limit tenant use of buildings, reduce tenant profitability, reduce
rent collection, increase operating costs and increase maintenance
capex as plant, equipment and potentially parts of buildings require
more regular repairs and / or replacement.
Average
Temperature
Rise
Delayed Transition,
Hot House World
M-L
Reduced equipment lifecycle periods due to increased operation and
reliance on surrounding infrastructure (electricity grid connections). This
will increase maintenance capex and / or reduce tenant profitability.
An increase in the number of hot days will drive up development costs
and extend construction timelines, leading to delays in rent collection
and / or tenant profitability.
Drought-like
conditions
Hot House WorldM
Decrease in available water supply affecting operations. This will
potentially lead to some or all of the following: limit tenant use of
buildings, reduce tenant profitability, reduce rent collection, increase
operating costs and increase maintenance capex.
Availability of water intensive construction materials change such as
concrete which could result in increased construction costs and / or
construction delays.
Reputation
Net Zero by 2050,
Delayed Transition,
Hot House World
M
Failure to comply with regulatory obligations or an inability to meet
communicated commitments may expose Vital to additional costs and /
or reduced access to capital.
Market
Conditions
Hot House WorldM-L
Failure to deliver action against sustainability initiatives may affect
investment opportunities and returns including through a reduced pool
of viable tenants due to a lack of climate resilient assets. Failure to
deliver developments in line with business model and long term strategy.
Physical Risks
Transition Risks
Selected time horizons
Short term 2024-2030: consistent with the earliest
expiry dates of material leases within Vital’s portfolio and
where material changes related to OPEX are likely to start
becoming evident.
Medium term 2031-2050: when the majority of Vital’s
leases (by rent) expire.
Long term 2051-2100: consistent with estimated building
lifecycles and where relevant development decisions are
expected to become more materially impacted.
The time horizons above are consistent with the
Construction & Property and Health Sector Scenarios and
apply to Vital's scenario analysis set out above and the
climate-related risks and opportunities identified through
Vital's scenario analysis.
These time horizons also support Vital’s capital
deployment strategy, ensuring that investment decisions
across budgeting, acquisitions, divestments, developments
and property upgrades are sequenced in alignment with
our net zero by 2050 commitment, portfolio-wide energy
efficiency programme and due diligence processes that
integrate climate-related risks and opportunities into
capital allocation.
Anticipated impacts of climate-related risks and opportunities
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Vital's transition plan
Vital's transition plan reflects the long-term nature of its property
asset ownership and specialised focus on healthcare real
estate. Healthcare facilities inherently require service continuity
and resilience. Vital's assets are therefore already designed with
these provisions in mind, meaning that only limited additional
measures are needed to address climate-related risks. It's
recognised that proactive and ongoing adaptation across
both operational and strategic levels, is essential to safeguard
assets, support tenant continuity and respond to a changing
climate. Vital's approach integrates mitigation and adaptation
measures within core business strategy to support a structured,
long-term transition.
Vital has taken an integrated approach to transition planning, combining mitigation
and adaptation strategies to address both emissions reduction and climate
resilience. Mitigation efforts include the assurance of greenhouse gas inventories,
ongoing improvements to data monitoring systems, regular energy audits, asset
level decarbonisation pathways and 100% renewable electricity contracts for
Scope 2 emissions.
In parallel, Vital's adaptation planning is supported by climate risk and resilience
assessments, informing capital planning. Site-level measures include critical
infrastructure upgrades (e.g. improved drainage systems and equipment upgrades)
and the implementation of Emergency Preparedness Plans at all landlord-controlled
properties. The transition plan also addresses upstream impacts by focusing
on reducing embodied carbon in new developments inline with Green Star
development benchmarks.
These measures are especially relevant given projected increases for rainfall
intensity, cyclone events, temperature rise and drought-like conditions in Australia
and New Zealand
1
, which may result in increased repair and replacement needs,
infrastructure stress, construction delays and tenant impacts.
Transition risks such as market shifts, reputational pressures and regulatory
obligations are also accounted for. For instance, a failure to deliver on sustainability
commitments could increase financing costs or reduce access to capital. Delivery
of assets that are not climate resilient could limit tenant demand and delay
development approvals. To manage these risks, we have embedded signals and
triggers into our risk register to guide actions when defined risk thresholds are met.
Vital’s transition planning is aligned with internal capital allocation and funding
decisions. The outcomes of climate risk assessments are embedded into project
evaluations and investment committee decisions. This includes screening for physical
climate risks (e.g. vulnerability to extreme weather), tenant resilience, long-term
viability and emissions performance. For development projects, we continue to
focus on low-carbon construction and aim to reduce embodied emissions in line
with Green Star benchmarks.
Vital's Transition Plan is not static and will continue to be reviewed annually to
ensure it remains robust, responsive and aligns with new climate data, stakeholder
and investor expectations.
The following table outlines the activities that support our transition plan.
Pillar


Activity
Energy audits to identify
energy conservation
measures and end-of-life
upgrade opportunities
Data tracking of utility
consumption
Assurance of Greenhouse
gas (GHG) inventory
Green Star Performance
ratings and improvement
roadmap
Renewable energy
strategy
Embodied Carbon
reductions
Stage


Description
Periodic audits are
conducted to assess
building energy
performance and identify
equipment upgrade
opportunities.
Tracking of utility
consumption across the
portfolio including tenant
data.
Annual third-party
assurance of Scope
1, 2 and material and
applicable Scope 3
emissions inventory.
Green Star ratings
maintained with a plan
to enhance performance
over time.
Vital has 100% renewable
electricity for all landlord-
controlled purchased
electricity.
Focus on reducing
embodied carbon in
new developments by
aligning with Green Star
requirements.
Strategic
Ambition
Have a programme in
place to upgrade the
energy efficiency of its
property portfolio informed
through the completion
of portfolio wide Energy
Audits and subsequent
capital planning
Executing specific
clauses across all new
leases, renewals and
development deeds
reflective of Vital’s ESG
strategy (enabling the
collection of this data)
Verified by third party
certifications for all
developments and existing
assets where possible
Verified by third party
certifications for all
developments and existing
assets where possible
Energy-efficient, built
and operating with lower
emissions, and powered
by 100% renewable
energy for all new
developments and any
purchased electricity by
Vital.
Activating renewable
energy strategies across
20% of tenant-controlled
assets by 2030
Verified by third party
certifications for all
developments and existing
assets where possible
Physical Risks
Average temperature rise,
cyclone events, rainfall
intensity, drought like
conditions
Average temperature rise,
cyclone events, rainfall
intensity, drought like
conditions
Average temperature rise,
cyclone events, rainfall
intensity, drought like
conditions
Average temperature rise,
cyclone events, rainfall
intensity, drought like
conditions
Transition
Risks
ReputationReputationMarket Conditions
Reputation
ReputationMarket Conditions
Reputation
Transition
Opportunities
TechnologyTechnologyTechnologyAccess to capitalTechnologyDevelopment
Considerations
Potential
Benefits
Improved energy
efficiency, cost savings and
emissions reductions
Increased visibility, data-
driven decision making,
identification of efficiency
opportunities
Transparency, credibility
and regulatory alignment
Sustainability credentials,
market differentiation,
improved asset
performance
Emission reductions,
reduced fossil-fuel grid
reliance
Lower building lifecycle
emissions, alignment with
green building standards,
improved sustainability
credentials
Assumptions
Upgrades are feasible
within operational budgets;
audit recommendations are
acted upon
Data integrity and
system functionality are
maintained
GHG data is precise
and consistently reported,
aligned with international
standards
Ratings criteria remain
applicable, tenant
cooperation for upgrades
Access to renewable
supply contracts, tenant
interest and participation
New developments can
integrate low-carbon
materials and methods
cost-effectively
Challenges &
limitations
Implementation depends
on audit outcomes, capital
availability and tenant
cooperation
System integration
challenges, data gaps,
challenges with tenant
data availability with
utility providers
Data collection
consistency, evolving
reporting standards,
auditor availability
Costs of improvement
measures, rating renewals
Contractual complexity,
Availability of non-fossil
fuel generated energy
Data availability, supply
chain readiness, cost
premiums, evolving
benchmarks
1
NZGBC Construction and Property Sector Scenarios and Climate Change Scenarios for the Health Sector.
Mitigation
Embedded in practice
Healthy Planet
Planned or scheduled initiative
Inclusive Company
Underway or ongoing initiative
Thriving Partners
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Pillar


Activity
Climate risk and resilience
assessments
Forecast capital allocation Equipment upgrades Operational changes
(Emergency Preparedness
Plans)
Assess current impacts and
climate hazards
Signals and triggers
framework
Stage


Description
Portfolio-wide site
assessments underway to
understand physical and
transitional climate risks.
Incorporation of climate
risks, adaptation measures
and energy conservation
measures into forward
capital planning.
Upgrades to critical
building systems to
address climate risks
(e.g. transition from gas
to electric, low GWP
refrigerant equipment
upgrades)
Emergency response
protocols are in place at
all landlord-controlled
sites.
Evaluation of climate
events and property-level
exposure.
Framework to monitor
predefined climate
thresholds and guide
timely action.
Strategic
Ambition
Resilient to climate
impacts with portfolio
wide management and
mitigation plans in place
Actively progress net zero
by 2050 commitment
through capital
allocation to deliver new
developments, adapt
existing properties and
inform our approach to
acquisitions and disposals
Improving asset
efficiencies and reducing
Vital’s scope 3 emissions
Resilient to climate
impacts with portfolio
wide management and
mitigation plans in place
Resilient to climate
impacts with portfolio
wide management and
mitigation plans in place
Creates a culture that
demonstrates Northwest’s
values and promotes
sustainability to encourage
long term thinking
Physical Risks
Average temperature rise,
Cyclone events, Rainfall
Intensity
Average temperature rise,
Cyclone events, Rainfall
Intensity
Average temperature rise,
Cyclone events, Rainfall
Intensity
Average temperature rise,
Cyclone events, Rainfall
Intensity
Average temperature rise,
Cyclone events, Rainfall
Intensity
Average temperature rise,
Cyclone events, Rainfall
Intensity
Transition
Risks
Market Conditions
Reputation
Market Conditions
Reputation
Market Conditions
Reputation
Market Conditions
Reputation
Market Conditions
Reputation
Market Conditions
Reputation
Transition
Opportunities
Development
Considerations
Development
Considerations, Access to
Capital
TechnologyDevelopment
Considerations
Development
Considerations, Access
to Capital, Technology,
Contribution to public
Health
Potential
Benefits
Risk-informed decisions,
future-proofed portfolio
Resilient investment
decisions, prioritisation of
upgrades
Cost saving, reduced
vulnerability, operational
continuity
Improved incident
response, tenant and staff
safety , business continuity
Early detection of risks,
informed planning
Proactive response,
improved risk
management
Assumptions
Access to accurate climate
data and expertise
Outcomes accurately
reflect future risks and
costs
Upgrades provide
sufficient risk reduction
Plans are regularly
reviewed and updated
Reliable hazard and event
data is available
Thresholds are informed
and practical
Challenges &
limitations
Uncertainty in projections,
evolving risk models
Access to capitalDisruption to operations,
cost, tenant coordination
Staff turnover, training
needs, unexpected events
Geographic variability,
data completeness
Establishing relevant
indicators, maintaining
responsiveness
Adaptation
Wakefield Hospital, Wellington
Embedded in practice
Healthy Planet
Planned or scheduled initiative
Inclusive Company
Underway or ongoing initiative
Thriving Partners

CLIMATE RELATED DISCLOSURE 2025
|
2322
|
VITAL HEALTHCARE PROPERTY TRUST

The climate-related risks noted above were established using the following process:
1. Workshops were undertaken with various internal stakeholders
to assess the materiality, on a qualitative basis, for Vital of the
detailed list of physical and transitional risks identified through
the sector climate scenario analysis.
2. In addition to sector scenarios, these workshops drew on
material from:
• Existing asset risk assessments across areas like flood,
seismic and cyclone issues
• Analysis of potential physical and financial impacts on
existing properties as well as developments, through
a bespoke model developed by a third party using
downscaled climate data, in addition to the S&P Global
Climanomics tool.
• Green Star rating tool (where relevant) for existing assets as
well as developments.
3. Feedback from these workshops resulted in identification by the
CWG of the six most material risks being:
• chronic increases in rainfall intensity;
• cyclone events;
• average temperature rise;
• drought-like conditions;
• reputation; and
• market conditions.
4. The above process included identifying direct and indirect
climate-related risks, physical risks and transition risks as well
as considering severity, likelihood, geographical location and
local impact versus enterprise-wide risks across short, medium
and long-term risk horizons, as defined above. Note that the
application of judgement is required for climate-related risks.
Quantitative assessments of climate risks are underway.
5. These risks were provided to the ORC for review following
which they were incorporated into the Risk Framework.
6. The revised Risk Framework was reviewed by the CWG
before being submitted to the Board for approval.
7. Climate-related risks continue to form part of our Risk
Framework and are managed and assessed through our
group wide risk management processes, with oversight from
the ORC and Audit Committee. Climate related risks have
been incorporated into the Risk Framework following the
scenario analysis process described above. These risks have
been ranked and prioritised against other types of risks for Vital
as part of the wider risk process in 2025.
8. This process is expected to be repeated not less than annually.
In addition, the CWG performs ad-hoc assessments when
material, relevant events or impacts emerge or relevant
research is released.
Risk Framework
The Board has approved a risk framework which informs the Manager’s approach to identifying,
managing and reporting risks (Risk Framework). The Risk Framework has climate-related risks embedded
in the overall risk categories, as well as its own category. The Risk Framework is reviewed on a not-less
than annual basis and is approved by the Board.
Alignment with capital deployment
and funding processes
Our current understanding of Vital’s climate-related
risks and opportunities continues to inform our strategy
planning, capital deployment and funding decision-making
processes. This includes, for example, budgeting for capital
expenditure, acquisitions, divestments and developments.
More specifically:
• Portfolio-wide building audits have not only provided insights
into our future capital expenditure requirements but also inform
our strategy towards building a more climate resilient portfolio
• Site acquisition and due diligence processes considers
climate-related risks for all new acquisitions such as flooding
and guides capital deployment decisions.
• Divestments have in part been informed by climate hazards
assessments undertaken across the portfolio and where assets
have been identified as at potential future risk. Other sustainability
considerations, such as Green Star certifications, have also been
a factor in our divestment decisions.
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.
Information related to the entity’s climate-related risks and opportunities to which the transition plan responds should be reported
within an overall risk management disclosure
Risk Management
GenesisCare Integrated Cancer and Health
Centre in Campbelltown, Sydney has
achieved 6 Star Green Star Design & As-Built
certification and will provide cancer care
services for the surrounding community.
The development was initially registered as a 5 Star
Green Star Design & As-Built, but our team collaborated
with builders and stakeholders to target 6 Star Green
Star. Upon completion, the project has achieved a 6 Star
Green Star certification from the Green Building Council
of Australia (GBCA).
The building’s airtightness achieved 3.8L air loss per minute,
far outperforming the industry standard of >20L per minute
for health buildings, which improves occupant comfort,
reduces HVAC needs and supports better patient outcomes.
These sustainability credentials were a key factor in the
investment decision and guided the delivery of the project.
Avive Clinic, Melbourne
GenesisCare Integrated Cancer and Health Centre, Sydney
CLIMATE RELATED DISCLOSURE 2025
|
2524
|
VITAL HEALTHCARE PROPERTY TRUST

Tools & methods used
Vital uses the following key tools and methods to identify the scope, size and impact of climate-related risks:
• Vital has committed that all future
major developments will be at
least 5 Star Green Star.
• The Green Star rating tools for
Design & As Built and Buildings
includes Climate Change
Assessments and a Climate
Adaptation Plan for each
registered development.
• A bespoke model which has been
created using downscaled data to focus
on assessing climate-related financial
risks through comprehensive data
collection, gap analysis and evaluation
of risk tolerance.
• It will also be used to identify the
average annual loss associated with
each physical and transition risk on an
asset by asset basis, including current
and future developments.
• The latest climate science
reports published by IPCC
AR5 and AR6 help validate
climate science projections.
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.
Transition-related targets and performance metrics should form part of overall climate-related metrics and targets.
Organisational Boundary and
Consolidation Approach
The Manager has measured Vital’s GHG emissions in
accordance with the GHG Protocol Corporate Standard:
2004 and the GHG Protocol Supply Chain (Scope 3)
Standard: 2011 in respect of the operational emissions of its
organisation, utilising the operational control consolidation
method. Emissions factors have been derived from a range
of sources, with the goal of using the most specific and
relevant factor to the nature of the activity being quantified.
We generally utilise emissions factors (and global warming
potential rates (GWP) where applicable) from the sources
listed below. Further detail in relation to emissions sources
used by Vital is set out in Appendix B:
New Zealand Ministry for the Environment Measuring
Emissions: A guide for organisations 2025
Department of Climate Change, Energy, the Environment
and Water: Australian National Greenhouse Accounts
Factors 2024
Watershed: OpenCEDA 2025
1
BRANZ CONSTRUCT V3.0 2023
NABERS: National material emission factors database
v2025.1
Thinkstep ANZ: Emission Factors for New Zealand
Industries and Commodities V1.1 2024
Scope/Category
FY25
(tCO
2
e/m²)
FY25
(tCO
2
e/
$m rental
income)
FY24
(tCO
2
e/m²)
FY24
(tCO
2
e/$m
rental income)
Variance
(tCO
2
e/m
2
)
Variance
(tCO
2
e/$m
rental income)
Scope 1 & 2 (operational)0.0012.360.0022.50
-11.9% -5.9%
Scope 3 (capital goods
1, 2
)0 . 7611,398.521.2952,506.23
-41.3% -44.2%
Total (Scopes 1, 2 & 3)0.123206.240.237371 .13
-48.0% -44.4%
Emissions intensityFY25FY24 base yearUnit
Total GHG Emissions31,94856,032tCO
2
e
Scope 1240tCO
2
e
Scope 2363338tCO
2
e
Scope 3 (excluding Capital Goods)30,16431,296tCO
2
e
Scope 3 total31,58355,654tCO
2
e
Gross floor area of assets owned by Vital259,043236,358m
2
Gross property income from rentals154,908,000150,978,000NZD
GHG emission per square meter0.123330.23706tCO
2
e/m²
GHG emissions per $m rental income2063 71tCO
2
e/$
Total Capital Goods emissions1,44924,358tCO
2
e
Capital Goods emissions per $m rental income9.35484161.33331tCO
2
e / $1m GPI
Capital Goods emissions per square meter
1
0.005590.10305tCO
2
e/m²
Metrics and Targets
GHG emissions reporting
Reporting period
The reporting period covered by the GHG emissions inventory set
out below is FY25. This is the Manager’s second year reporting
Vital’s GHG emissions for its financial year (i.e. 1 July – 30 June),
rather than its calendar year (i.e. 1 January – 31 December) as in
previous reporting periods.
The table below sets out Vital’s Scope 1, Scope 2 and Scope 3
GHG emissions, expressed in metric tonnes of carbon dioxide
equivalent (tCO
2
e). Scope 1 emissions are from confirmed
refrigerant gas top ups or default leakage rates where confirmation
is unavailable and natural gas at one landlord controlled property.
Scope 2 emissions are from purchased electricity consumption
from Vital base building and common areas and Northwest’s
business units (offices). Scope 3 emissions are divided into 15
distinct categories under the GHG Protocol, of which seven
categories have been identified as applicable to Vital’s business
and operations (as shown in the table below) and four as material
(threshold of >1%) to Vital.
Third-Party Financial and
Climate-Related Risk Model
1
OpenCEDA 2022 emissions factors used, are adjusted for inflation
Intensity metrics
Vitals emissions intensity metrics are below using GFA and
gross property income from rentals. Capital goods emissions
represent Scope 3, Category 2 under the GHG Protocol and
capture embodied carbon from development, construction and
refurbishment activities. These emissions are inherently project-
dependent and can vary significantly year-to-year, driven by the
timing and scale of capital works. As such, intensity metrics (tCO
2
e
per m² and tCO
2
e per $m of rental income) should be interpreted
with caution, as they reflect portfolio investment cycles rather than
ongoing operational efficiency. For intensity metrics related to
embodied carbon emissions associated with developments that
have reached practical completion during the reporting year, the
intensities have been calculated using GFA and rental income from
those completed developments.
To aid comparability, all other intensities are normalised using gross
floor area owned and gross property income for the reporting year.
Ormiston Hospital Stage 1 Expansion, Auckland
Base Year (FY24) Restatement
During FY25, we reviewed and updated our FY24 base year
GHG inventory to improve accuracy and ensure consistency.
Updates include:
• correcting meter classifications for Scope 1 (74% reduction)
and Scope 2 (54% increase) ;
• applying Watershed’s new OpenCEDA dataset for Scope 3
Category 1 - Purchased Goods & Services (68% increase);
• correcting a materials quantity error in supplier provided data
which resulted in an over inflation of Scope 3 Category 2 -
Capital Goods (33% reduction); and
• tenant waste was previously included in Category 5; it has
been restated to include only landlord-controlled waste
(86% reduction).
These updates resulted in a 21% reduction of emissions from
70,697.29 tCO
₂
e to 55,653.75 tCO
₂
e in the FY24 base year.
Full inventory restatement can be found in Appendix B.
The scope of the GHG emissions inventory includes all activities in
the operational boundaries of Vital, covering its operations as well
as the operations of the 20 properties Vital owns in Australia and
the 14 properties in New Zealand.
Further information regarding our GHG emissions methodologies,
assumptions, exclusions, limitations and uncertainties relating to the
calculation of Vital’s GHG emissions can be found in Appendix B.
1
Calculated based on the Gross Floor Area (GFA) of developments completed during the reporting period
2
Calculated based on annual forecast fully leased rental income on developments completed during the reporting period
CLIMATE RELATED DISCLOSURE 2025
|
2726
|
VITAL HEALTHCARE PROPERTY TRUST

Exposure to climate-related risks and opportunities
We are still developing our approach and understanding of the
extent to which Vital’s assets and business activities are vulnerable
to climate-related risks and aligned to climate-related opportunities.
This may allow for more detailed reporting on these metrics in the
future. Due to the nature of the assessments required in connection
with these metrics, there are limitations and uncertainties involved
with calculating these metrics.
At present, due to the nature of Vital’s business as a specialist owner
of healthcare property, all of Vital’s business activities are vulnerable
to one or more physical or transition climate-related risks identified
in this Climate Statement to some extent. Each of the material risks
we have identified are being managed and monitored through the
risk management processes described in this Climate Statement.
The extent to which Vital’s business activities are exposed to physical
climate-related risks will vary depending on the nature, scale
and frequency of the relevant extreme weather events and the
geographic location.
In addition, our business as a whole has the potential to benefit
from the climate-related opportunities we have identified and, in
that respect all of our business is aligned with one or more of those
opportunities. However, those opportunities are uncertain and may
not be realised.
Industry-based metrics
There are no industry-based metrics that Vital currently measures
and manages climate-related risks and opportunities against,
other than the Green Star ratings and the other key performance
indicators described below, which are relatively common in the real
estate and healthcare industries.
Other metrics and key performance indicators
Other metrics and key performance indicators used by the Manager to manage and measure
climate-related risks and opportunities are set out below:
Other key performance indicators
External Benchmark Reporting Scores
Global Real Estate Sustainability Benchmark (GRESB)
In 2025, Vital achieved strong results across both Standing Investments and
Developments in the GRESB Real Estate Assessment for ESG in healthcare for
listed entities globally.
For Standing Investments, Vital recorded a score uplift to 87/100 from 2024,
outperforming the GRESB global average (79/100) and the peer group
average (74/100). Importantly, Vital is ranked second place within its peer group
and first place in listed healthcare.
For Developments, Vital achieved a strong score of 97/100. This remains well
above the GRESB average of 88/100. Vital is ranked second place both within its peer group and in
listed healthcare, coming second to Northwest.
Other investor ratings
Whilst not predominantly related to climate risks, the following ratings systems all factor in climate change in some way. Vital continues
to seek to maintain or improve its score and ranking in future years, which includes improving environmental performance generally.
Category
2025
Score
2024
Score
Change
2025
GRESB Avg
2025
Peer Avg
2025 Ranking
Standing Investments
87/10082/100 +579/10074/1002
nd
/ 14 entities
Developments
97/10099/100 -288/10091/1002
nd
/ 6 entities
Company202520242023
Assessments
conducted
YoY change in scores
(2024 - 2025)
B
(as at Nov 2024)
B-
(as at August 2023)
C+
(as at Nov 2022)
Annually
Up 1 place
4.1/5
(as at Aug 2024)
4.1/5
(as at Aug 2024)
2.7
(as at 2021)
Ad-hoc
No change
14.9 Low Risk
(as at May 2025)
16.1 Low Risk
(as at Apr 2024)
17.2 Low Risk
(as at Sept 2023)
Annually
-1.2 momentum (the
lower the score the better)
BBB
(as at Dec 2024)
A
(as at Dec 2023)
BBB
(as at Dec 2022)
Annually
Down 1 place
C-
(as at Oct 2024)
C-
(as at Dec 2023)
C-
(as at Dec 2022)
Ad-hoc
No change
STANDING INVESTMENTS | GRESB
& PERFORMANCE SCORE WITHIN
LISTED HEALTHCARE
(GLOBALLY, 20 PEERS)
PLACE
1
ST
DEVELOPMENTS | GRESB &
PERFORMANCE SCORE WITHIN
LISTED HEALTHCARE
(GLOBALLY, 6 PEERS)
PLACE
2
ND
CDP
CDP is an international non-profit
organisation that facilitates the voluntary
disclosure of environmental data by
companies and cities, with a particular
emphasis on climate change, water security, and deforestation.
In 2024, Vital participated in the CDP (formerly the Carbon
Disclosure Project) for the second consecutive year, achieving a
score of B, an improvement from the B- rating received in 2023.
This reflects ongoing enhancements in the management of
climate-related risks, emissions reduction initiatives and transparency
in environmental reporting.
As a designated Climate Reporting Entity, Vital now publicly
reports much of the same climate-related information captured in
the CDP questionnaire within this disclosure. Given the increasing
focus on compliance with mandatory reporting requirements, Vital
will no longer participate in CDP from 2025 onward, instead
prioritising alignment with regulatory requirements.
Scopes and Categories
FY24 Base Year
(restated tCO
2
e
FY25
tCO
2
e
% of Total
emissions
% of scope
YoY %
change
Scope 139.771. 770.01%--96%
Scope 2 (market-based)0.000.00---
Scope 2 (location-based)338.32363.221 .14 %-7%
Scope 355,653.7531,583.1998.86%--43%
Category 1 – Purchased goods & services1,581.271,669.875.29%5.29%6%
Category 2 – Capital goods24,357.781,418.834.49%4.49%-94%
Category 3 – Fuel and energy-related activities2 5 .1751. 5 30.16%0.16%105%
Category 5 – Waste generated in operations548.71144.020.46%0.46%-74%
Category 6 – Business travel248.5026.190.08%0.08%-89%
Category 7 – Employee commuting11 . 8 116 . 9 20.05%0.05%43%
Category 13 – Downstream leased assets28,880.5028,255.8388.44%89.46%-2%
Total direct emissions39.771.770.01%--
Total indirect emissions55,992.07131,946.4199.99%--43%
Total emissions56,031.8431,948.18100%--43%
Analysis of trends
Using the restated FY24 base year, Vital’s FY25 inventory
has seen material movement compared to FY24. Emissions
reductions primarily reflects a reduction in development and
CAPEX activity in FY25 as well as some minor improvements
in operational performance.
In FY24, four major developments reached completion,
driving capital goods embodied carbon emissions of 24,358
tCO
₂
e; in FY25, only one refurbishment project reached completion,
reducing Category 13 Capital Goods emissions by 94%. Scope
2 emissions rose modestly (338 vs. 363 tCO
₂
e).
Through the refinement of our data collection process, we
reduced the amount of assumptions or assumed data in FY25.
This reflects an apparent reduction in the following GHG categories,
realised through reporting on real data; Scope 1 refrigerant
emissions and Scope 3 business travel.
In FY25, total reported GHG emissions (Scopes 1, 2, and 3
combined) decreased to 31,948 tCO
₂
e, a 43% reduction year-
on-year. Scope 1 emissions fell 96% , as 100% confirmation of no
refrigerant top-ups meant no assumptions or leakage rates were
applied. Scope 2 emissions rose (+7%), reflecting higher grid
demand despite a 73% increase in direct solar generation to 474,114
kWh. Scope 3, which accounts for 99% of the footprint, fell 43%
year over year, driven primarily by reduced development and OPEX
activity. Overall emissions intensity improved to 0.12 tCO
₂
e/m
²
.
CLIMATE RELATED DISCLOSURE 2025
|
2928
|
VITAL HEALTHCARE PROPERTY TRUST

Net zero by 2050 target
Vital is committed to a long term, absolute emissions target of
net zero emissions by 2050 from a FY24 baseline. This target
is in line with the objective of the "Paris Agreement" to limit
global temperature increases to 1.5°C above pre-industrial
levels. Vital's 2050 target is not verified or validated by any
external third party.
Vital's gross GHG emissions for FY25 are set out on page 28.
Vital has not utilised any offsets for the FY25 reporting period.
Vital has not yet determined the extent to which achievement
of its net zero by 2050 target will or may rely on offsets.
Our priority is to minimise direct emissions from our assets
and operations before considering offset solutions.
Development targets
Green Star Ratings target
Vital is committed to achieving a minimum of 5 Star Green Star
rating for all new developments and major refurbishments (as
defined by GRESB)
1
. This target was approved by the Board
during FY24 (which is the base year for future comparison).
2

Green Star is Australasia's largest voluntary sustainability rating
system for non-residential buildings, fitouts and communities.
Green Star provides a rating of up to six stars based on a
building's key sustainability credentials.
As reported in Vital’s 2024 annual report, in FY24 Vital had nine
new future developments registered to attain these sustainable
infrastructure ratings. These developments are a combination of
projects in construction and potential developments in design
phase but are yet to be committed.
Targets
1
In the GRESB's Real Estate Assessment, a major refurbishment is defined as alterations that affect more than 50% of the total building floor area or cause the relocation of more
than 50% of regular building occupants
2
In FY25, one project reached practical completion but did not qualify for Green Star certification. This was due to the project not meeting the internal criteria agreed to pursue
Green Star certification which is required for all new developments and major refurbishment (as defined by GRESB).
3
Macarthur Health Precinct has also been registered under GBCA's Green Star Community v1 tool targeting 5 Star Green Star rating
GHG Inventory
Assurance
Independent assurance was completed by McHugh & Shaw
Limited (ISO 14064-3:2019). The assurance level achieved is
Reasonable Assurance (Scope 1 & 2) and Limited Assurance
(Scope 3) for Vital’s Greenhouse Gas Emissions Inventory
across Australia and New Zealand for the reporting period 1
July 2024 to 30 June 2025. A copy of the independent audit
opinion is included as Appendix A.
Playford Health Hub, Adelaide
Vital's commitment to Green Star for developments includes the
following emissions reduction considerations:
• Embodied Carbon: We recognise the growing importance
of embodied carbon. We have aligned our development
strategies with the targets set by the Green Building Councils
of Australia and New Zealand (i.e. all new developments
and major refurbishments
3
are targeting a minimum 5 star
Green Star).
• GBCA: 40% reduction in upfront embodied carbon by
2030, with a goal of net zero embodied emissions by 2050.
• NZGBC: Integration of life-cycle assessment and material
benchmarks into Green Star frameworks to reduce embodied
carbon across all major projects.
DevelopmentsRegisteredCertified
Playford Health Hub Stage 26 Star (Design & As Built v1.3 - AU)
Macarthur Health Precinct Stage 1 (GenesisCare Integrated Cancer & Health Centre)
3
6 Star (Design & As Built v1.3 - AU)
GCHKP - RDX (QLD)6 Star (Design & As Built v1.3 - AU)
Endoscopy Auckland (NZ AKL)5 Star (Design & As Built v1.1 - NZ)
Park Road (NZ AKL)5 Star (Design & As Built v1.1 - NZ)
Coomera Stage 1 (QLD)5 Star (Design & As Built v1.3 - AU)
Macarthur Health Precinct Stage 2 (NSW)
3
5 Star (Buildings v1)
St Asaph St Christchurch (NZ CHC)5 Star (Design & As Built v1.1 - NZ)
Playford Health Hub Stage 3 (SA)5 Star (Buildings v1)
Logan Hospital Stage 1 (QLD)5 Star (Design & As Built v1.3)
Logan Hospital Stage 2 (QLD)5 Star (Design & As Built v1.3)
Buranda Health Hub (QLD)5 Star (Design & As Built v1.3 - AU)
Vital has taken the following steps to reduce scope 2 & 3 emissions:
• 100% renewable energy contracts: All landlord-controlled
base building meters are now supported by 100% renewable
electricity contracts, eliminating market-based Scope 2 emissions
and accelerating the decarbonisation of the grid by furthering
the development of new renewable energy projects.
• Reducing Scope 3 through tenant collaboration:
We are actively working with tenants to reduce their emissions
by reviewing the results of the energy audits and identifying
energy conservation measures that they could adopt towards
decarbonisation. We also plan to explore renewable energy
contracts for tenant electricity consumption.
Internal price on carbon
Vital does not currently utilise an internal emissions price, however,
this remains under consideration.
Management remuneration
The Manager, an external entity providing management services
to Vital, has several key responsibilities, including the day-to-
day administration of Vital’s portfolio management, sourcing
new opportunities and conducting due diligence on potential
acquisitions. The Manager also provides specialist property
management, project management, development management and
leasing services to Vital.
The Manager does not receive remuneration that is linked to
climate-related risks and opportunities or the outcome of climate
related initiatives.
In relation to employees of the Manager who provide services in
relation to Vital, the Manager (as part of the Northwest group) uses
a regional corporate scorecard for the purposes of determining
management remuneration, which includes financial and non-
financial measures. Climate-related risks and opportunities do
not have a specific weighting within this scorecard, however
the achievement of sustainability and ESG initiatives (including
in relation to the publication of this Climate Statement and
achievement of the minimum 5 Star Green Star ratings and other
key performance indicators described above) are taken into
account in assessing the overall achievement of key performance
indicators in the scorecard.
ActivityCapital ExpenditureComments
Equipment efficiency
upgrades
$82,000Tennyson Centre Plasma Shield air filtration unit installation.
Capital deployment
The table below shows the capital expenditure on climate-related
initiatives for FY25. In FY24, we disclosed development costs
associated with projects that achieved Green Star certification.
In FY25, while one project reached practical completion, it
did not qualify for Green Star certification. This was due to the
project not meeting the internal criteria agreed to pursue Green
Star certification which is required for all new developments and
refurbishments exceeding 50% of the building area (as defined
by GRESB).
As part of our commitment to reducing operational emissions, we
conducted a comprehensive analysis of energy efficiency upgrade
opportunities across the portfolio. These opportunities have been
prioritised through a structured framework that considers asset end-
of-life timelines, emissions reduction potential and alignment with key
capital projects. This approach ensures our decarbonisation efforts
are strategically sequenced and supported by appropriate capital
planning to maximise operational and financial efficiency with
environmental outcomes.
Accordingly, no lifecycle upgrades were implemented in FY25.
Instead, the year was dedicated to due diligence and feasibility
assessments, with project finalisation and implementation planned
for subsequent years.
CLIMATE RELATED DISCLOSURE 2025
|
3130
|
VITAL HEALTHCARE PROPERTY TRUST

Glossary & Acronyms
Glossary
Climate-related scenarios: A plausible and challenging
description of potential future developments, 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, nor to identify the ‘most likely’
outcomes of climate change. Instead, they aim to help entities
develop their internal capacity to better understand and prepare
for the uncertain future impacts of climate change.
External Reporting Board (XRB): New Zealand’s External
Reporting Board, which establishes national reporting standards
for entities in the private, public, and not-for-profit sectors.
Intergovernmental Panel on Climate Change (IPCC): The United
Nations body responsible for assessing climate science and
providing governments at all levels with scientific information to
inform the development of climate policies.
Physical Risks: Risk posed to the company by potential physical
impacts of climate change. These risks can be “acute”, being an
event-drive including increased severity of extreme weather events,
or “chronic”, being longer-term shifts in climate patterns.
Representative Concentration Pathways (RCP): A greenhouse
gas concentration trajectory adopted by the IPCC. Four pathways
were utilized for climate modelling and research in the IPCC Fifth
Assessment Report (AR5) in 2014. These pathways outline various
climate change scenarios, each representing a potential future
depending on the level of greenhouse gas (GHG) emissions in the
coming years.
Transition risks: Risks associated with the transition to a low
emissions, climate-resilient global and domestic economy, including
changes in policy, legal frameworks, technology, market conditions,
and reputation due to the mitigation and adaptation requirements
related to climate change.
Acronyms
CAPEX Capital expenditure
CDP Carbon Disclosure Project
CO
2
e Carbon Dioxide Equivalent
CWG Climate Working Group
GHG Greenhouse Gas
GBCA Green Building Council of Australia
GRESB Global Real Estate Sustainability Benchmark
HVAC Heating, ventilation, and air conditioning
IPCC Intergovernmental Panel on Climate Change
IRR Internal rate of return
NZGBC New Zealand Green Building Council
NZX New Zealand’s Stock Exchange
OPEX Operating expenses or expenditure
ORC Operational Risk Committee
R&M Repairs and maintenance
SSP Shared Socio-economic Pathway
WALE Weighted average lease expiry
WALT Weighted average lease term
XRB External Reporting Board
Appendices
Playford Health Hub, Adelaide
Appendix A

PO Box 31-095, Ilam, Christchurch, 8444, New Zealand. Ph 021 453 752
info@mchugh-shaw.co.nz •• wwwwww..mmcchhuugghh--sshhaaww..ccoo. .nnz z
INDEPENDENT ASSURANCE REPORT ON VITAL HEALTHCARE PROPERTY TRUST’S
GREENHOUSE GAS (GHG) DISCLOSURES
TO THE DIRECTORS OF NORTHWEST HEALTHCARE PROPERTIES MANAGEMENT LIMITED
Our Assurance Conclusion
Reasonable Assurance Conclusion (Scope 1 & 2)
The gross GHG emissions, additional required disclosures of gross Scope 1 & 2 GHG emissions, and gross GHG
emissions methods, assumptions and estimation uncertainty, within the scope of our reasonable assurance
engagement (as outlined below) included in the climate statements for the year ended 30 June 2025, are fairly
presented and prepared, in all material respects, in accordance with Aotearoa New Zealand Climate Standards
(NZ CSs) issued by the External Reporting Board (XRB), as explained on page 3 of the climate statements.
Limited Assurance Conclusion (Scope 3)
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our
attention that causes us to believe that the gross Scope 3 GHG emissions, additional required disclosures of
gross GHG emissions, and gross GHG emissions methods, assumptions and estimation uncertainty, within the
scope of our limited assurance engagement (as outlined below) included in the climate statements for the
year ended 30 June 2025, are not fairly presented and not prepared, in all material respects, in accordance
with Aotearoa New Zealand Climate Standards (NZ CSs) issued by the External Reporting Board (XRB), as
explained on page 3 of the climate statements.
Scope of the Assurance Engagement
We have undertaken a reasonable assurance verification engagement over the following GHG disclosures
within the climate statements for the year ended 30 June 2025:
• GHG Emissions Scope 1,1.77 tCO
2
e, on page 28.
• GHG Emissions Scope 2 (location-based), 363.22 tCO
2
e, on page 28.
• GHG Emissions Scope 2 (market-based), 0.00 tCO
2
e, on page 28.
We have undertaken a limited assurance verification engagement over the GHG disclosures within the climate
statements for the year ended 30 June 2025:
• GHG Emissions Scope 3, 31,583.19 tCO
2
e, on page 28.
It is important to note that the level of assurance obtained in a limited assurance engagement is considerably
lower than that involved in reasonable assurance engagement.
Although we considered the effectiveness of management’s internal controls when determining the nature
and extent of our procedures, our assurance engagement was not designed to provide assurance on internal
controls for emission sources subject to limited assurance.
Our assurance is limited to policies, and procedures in place as of 20 October 2025, ahead of the publication
of Vital Healthcare Property Trust’s (Vital) climate-related disclosure for FY 2025.
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Independent Assurance Report NZ SAE 1 | Page 2
Our assurance engagement does not extend to any other information included, or referred to, in the climate
statements on pages 1 to 25 and 29 to 32. We have not performed any procedures with respect to the
excluded information and, therefore, no conclusion is expressed on it.
Key Matters to the GHG Assurance Engagement
In this section we present those matters that, in our professional judgement, were most significant in
undertaking the assurance engagement over GHG disclosures. These matters were addressed in the context
of our assurance engagement, and in forming our conclusion. We did not reach a separate assurance
conclusion on each individual key matter.

Key Matter Procedures to address the Key Matter
Downstream Leased Assets
• Downstream Leased Assets (Category 13)
represent 88% of total emissions. Due to a
change in the utility database used to manage
electricity and gas data from assets some data
was not available. The operational control varies
per assets and in some cases by emission source
depending on the agreement in place with the
asset tenant(s).




Financial-spend
• As explained on page 39 of the Climate
Statement Vital has measured the emissions
from Category 1 Purchased Goods & Services and
a portion of Category 2 Capital Goods using the
spend-based approach. The spend-based
components account for approximately 8% of
Vital’s total GHG emissions for the period ending
30 June 2025. This calculation method estimates
emissions by multiplying the value of Purchased
Goods & Services and Capital Goods with
relevant emission factors. However, this method
involves inherent uncertainty and may result in
significant discrepancies between estimated and
actual emissions. Due to the high level of
estimation, improvements to the calculation
method or assumptions could lead to material
changes and restatements of previously reported
amounts.

Downstream Leased Assets
• We understood the application of the
operational control consolidation approach for
each asset and emission source i.e. landlord
controlled, or tenant controlled.
• Assessed the categorisation of emissions in line
with the consolidation approach.
• Assessed the reasonableness and
conservativeness of the estimated data to fill
data gaps and the transparent disclosure of that
in the Climate Statement on page 39.


Financial-spend
In considering Vital’s measurement and disclosure of
Category 1 and Category 2 emissions measured using the
spend-based approach we:
• Ensured we understood the spend-based
calculation method, along with its assumptions
and estimation uncertainties including treatment
of GST, inflation and currency conversion;
• Assessed whether the application of the spend-
based calculation approach by Vital aligned with
the GHG Protocol Value Chain Standard;
• Assessed the reasonableness of the selected
spend-based emission factors and their
application in the calculation process;
• Assessed the categorisation of Vital’s dollar
spend on Purchased Goods & Services and
Capital Goods through analysis and inquiry;
• Assessed the disclosures made by Vital in relation
to the spend-based calculation method,
assumptions and uncertainties in estimating
these emission sources.




Independent Assurance Report NZ SAE 1 | Page 3
Emphasis of Matter
• We draw attention to page 26 and the restatement of FY24 (base year) emissions which have resulted
in a 21% decrease in the FY24 emissions previously disclosed. The FY24 restatement was not subject
to assurance.
• We draw attention to page 38 in the disclosure where it is stated the fugitive emissions from medical
gases are excluded due to lack of data and this could be material to the emissions total.
• We draw attention to page 28 of the disclosure and the reporting of market-based electricity. 100%
of Scope 2 electricity consumed in New Zealand is covered by Renewable Energy Certificates (NZECS
certificates issued by BraveTrace). Scope 2 electricity consumed in Australia is covered by 100%
GreenPower Electricity agreements.
• Our assurance conclusion is not modified in response to each matter stated above.
Other Matter
• The emissions calculations for New Zealand-based activities use the latest emission factors released
by the Ministry for the Environment in June 2025.
Comparative Information
The comparative GHG disclosures (that is GHG disclosures for the periods ended 30 June 2024) have been
subject to limited assurance by Toitū Envirocare, with their assurance report dated on 13 September 2024.
Materiality
Based on our professional judgement, determined quantitative materiality for the GHG disclosures is at 1% for
individual emission sources, and not totalling more than 5%. Qualitative materiality has been determined with
due consideration to relevance to users of the climate statement, as well as the potential impact of omission,
misstatement, or obscurement of any information.
Competence and Experience of the Engagement Team
Our work was carried out by an independent and multi-disciplinary team including sustainability assurance
and environmental practitioners. The assurance lead retains overall responsibility for the assurance conclusion
provided.
Northwest Healthcare Property Management Limited’s Responsibilities for the GHG Disclosures
Northwest Healthcare Property Management Limited as the managers of the Vital investment scheme are
responsible for the preparation and fair presentation of the GHG disclosures in accordance with the Aotearoa
New Zealand Climate Standards (NZ CSs). This responsibility includes designing, implementing and maintaining
a data management system relevant to the preparation and fair presentation of GHG disclosures that is free
from material misstatement.
Inherent Uncertainty in Preparing GHG Disclosures
As discussed on page 4 of the climate statements the GHG quantification is subject to inherent uncertainty
because of incomplete scientific knowledge used to determine emissions factors and the values needed to
combine emissions of different gases.
Our Responsibilities
Our responsibility is to express an opinion on the GHG disclosures based on our verification. We are
responsible for planning and performing the verification to obtain assurance that the onsite GHG disclosures
are free from material misstatement.
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Independent Assurance Report NZ SAE 1 | Page 4
As we are engaged to form an independent conclusion on the GHG disclosures prepared by management, we
are not permitted to be involved in the preparation of the GHG information as doing so may compromise our
independence.
Other Relationships
Other than in our capacity as assurance practitioners, and the provision of the assurance for this engagement,
we have no relationship with, or interests, in Northwest Healthcare Property Management Limited or Vital
Healthcare Property Trust.
Independence and Quality Management Standards Applied
This assurance engagement was undertaken in accordance with NZ SAE 1 Assurance Engagements over
Greenhouse Gas Emissions Disclosures issued by the External Reporting Board (XRB). NZ SAE 1 is founded on
the fundamental principles of independence, integrity, objectivity, professional competence and due care,
confidentiality, and professional behaviour.
Professional and ethical standards are held in high regard and our quality management system aligns with the
standards ISO 9001:2015 and ISO 14065:2020 and we comply with the Carbon and Energy Professionals New
Zealand Code of Ethics and Code of Professional Conduct.
Summary of Work Performed
Our verification strategy used a combined data and controls testing approach. Evidence-gathering procedures
included but were not limited to:
• Enquiries of management to obtain an understanding of the overall governance and internal control
environment, risk management processes and procedures relevant to GHG information;
• Evidence to support the reporting boundaries, organisational and legal structure reported;
• Recalculation of the GHG emissions;
• Analytical review and trend analysis of the GHG information;
• Evaluation of relationships among GHG and non-GHG data;
• Interview of personnel involved in data collection;
• Review of emissions factors used within the calculations for source appropriateness;
• Review of uncertainty and data quality;
• Review of the assumptions, estimations and quantification methodologies; and
• Seeking written representation from governance on key assertions.
Reasonable and Limited Assurance Conclusion
Our reasonable and limited assurance verification engagement was performed in accordance with NZ SAE 1,
and ISO 14064-3: 2019 – Specification with guidance for the verification and validation of greenhouse gas
statements, issued by the International Organization for Standardization (ISO). This requires that we comply
with ethical requirements (as outlined above), and plan and perform the verification to obtain reasonable
assurance (Scope 1 & 2) and limited assurance (Scope 3) that the GHG disclosures are free from material
misstatement.



Independent Assurance Report NZ SAE 1 | Page 5
Reasonable Assurance Procedures Limited Assurance Procedures
• Sample testing, tracing and retracing of data
trails back to primary data including natural
gas and electricity records.
• Site visits to inspect the completeness of the
inventory including interview of site
personnel to confirm operational behaviour,
any standard operating procedures and
sample of site-based records.
• Limited sample testing, tracing and retracing
of data trails back to primary data including
financial expenditure, waste management,
wastewater, business travel, employee
commuting survey, and tenant electricity,
gas, diesel and refrigerant loss records; and
• Electricity transmission and distribution
losses (TDL) calculations.

The data examined during the verification were historical in nature. We believe that the evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.





Jeska McHugh, Assurance Lead
CEP NZ Certified Carbon Auditor (#CCA1005)
McHugh & Shaw Limited
May Stewart, Independent Reviewer
May Stewart Consulting
On behalf of McHugh & Shaw Limited
Christchurch, New Zealand
20 October 2025
Christchurch, New Zealand
20 October 2025








This report including the opinion expressed herein, is issued to the Directors of Northwest Healthcare
Properties Management Limited in accordance with the terms of our agreement for the purpose of
disclosing GHG emissions. We consent to the release of this report by you to interested parties, but we
disclaim any assumption of responsibility for any reliance on this report by any other party than for which it
was prepared.

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Appendix B – Greenhouse Gas Emissions –
additional information
Table 0.1: Executive summary
Organisational
background
Name: Vital Healthcare Property Trust
Contact person: Liz Ingram
Contact email: liz.ingram@nwhreit.com
Area of business: New Zealand and Australia
Full Time Equivalents (FTEs) on 30 June 2025: 48
Business description: Vital Healthcare Property Trust is an owner, developer and manager of healthcare
real estate and is the only specialist owner of healthcare property listed on the NZX.
Vital is managed by experienced healthcare property managers Northwest Healthcare Properties
Management Limited, a subsidiary of a publicly listed healthcare property group based in Toronto,
Canada, with global assets of ~A$9.0bn AUM.
Standard complianceGreenhouse Gas Protocol
Baseline year1 July 2023 – 30 June 2024 (Financial Year)
For the purposes of assurance of Vital’s GHG emissions inventory, the restated FY24 baseline year will be
adopted.
Reporting period1 July 2024 – 30 June 2025
(Financial Year)
The reporting period for the Climate Statement is consistent with Vital’s financial reporting year and is in
compliance with NZ CS 1 requirements.
Organisational
boundary
As on 30 June 2025, the activities collectively cover all Vital and Northwest’s legal entities:
Northwest NZ Finance Holdings Ltd
Northwest Healthcare Properties Management Ltd
NWI NZ Management Company Ltd
NWI Australia Management Company PTY Limited
NWH Australia Property Pty Ltd
Vital Healthcare Property Trust
Vital Healthcare Property Limited
Vital Healthcare Australian Property Trust
Vital Healthcare Investment Trust
Reporting boundaryBusiness operations includes direct and indirect emissions resulting from:
• Direct (Scope 1)
• Fugitive emissions from refrigerants
• Indirect electricity (Scope 2)
• Office Electricity
• Landlord controlled purchased electricity
• Indirect (Scope 3)
• C1 Purchased goods and services
• C2 Capital goods
• C3 Fuel- and energy related activities
• C4 Upstream transportation and distribution
• C5 Waste generated in operations
• C6 Business travel
• C7 Employee commuting
• C13 Downstream leased assets
Reporting boundary
exclusions
• Indirect (Scope 3)
• Fugitive medical gases from tenants (within C13)
• Upstream transportation (C4)
• Emissions from site-works (within C2)
• Transport, processing, use and end-of-life of sold products (C9-12)
• Franchises (C14)
• Investments (C15)
Restatement of FY24 Base Year Inventory
For the purpose of assurance, the restated FY2024 baseline
year will take precedence. Base year data may need to be
revised when material changes occur and have an impact on
calculated emissions.
Vital’s policy is to recalculate base year data and indicate in a
footnote any recalculation of previously disclosed data. Reasons
for revising base year data include:
• If the emission factors used change significantly and are
relevant to prior years.
• If a significant estimation method has been changed/improved.
• If a significant data sourcing strategy has been changed/
improved.
• If significant changes to reporting boundaries, including the
outsourcing or insourcing of emitting activities, are made.
• If significant errors, or a number of cumulative errors that are
collectively significant, are discovered in previous disclosures.
FY24 Scope 1 & Scope 2 Restatement
During FY25, a review of energy meter classifications identified
several instances where landlord-controlled meters had previously
been misclassified as tenant meters. These meters have now been
correctly re-identified and incorporated into our reporting. As a
result, associated consumption is appropriately included in
Scope 1 (natural gas) and Scope 2 (electricity) emissions,
ensuring that our baseline year accurately reflects Vital’s
operational emissions profile.
FY24 Scope 3 – Category 1, Purchased Goods &
Services Restatement
This year, Watershed released a free version of its CEDA spend-
based emission factor database, called OpenCEDA. This dataset
provides information on how different types of spending relate to
carbon emissions and has allowed Vital to improve the accuracy
of our calculations by using country-specific data for both New
Zealand and Australia. To ensure results are consistent over time,
we also updated our baseline year using these new OpenCEDA
emission factors.
FY24 Scope 3 – Category 2, Capital Goods Restatement
An error in supplier provided material quantities within the FY24
GHG inventory was identified which resulted in an over inflation
of Scope 3 Category 2 (Capital goods) emissions. Though Scope
3 – Category 2, Capital Goods was not covered by the original
historical restatement policy, the materiality of the error resulted in
the decision to restate the emissions.
FY24 Scope 3 - Category 5, Waste Generated in Operations
Tenant waste was incorrectly included in Category 5 in prior years;
Category 5 has been restated to now appropriately include only
landlord-controlled waste.
FY24
Emissions
FY24
Restated Emissions
Scope 1 - Direct emissionsEmissions Emissions Unit% change
Total150.20 36.11tCO
2
e-74%
Scope 2 - Purchased electricity (location based)Emissions Emissions Unit% change
Total219. 61338.32 tCO
2
e54%
Scope 3 emissions by categoryEmissions Emissions Unit% change
1 - Purchased goods and services941.46 1,581.27tCO
2
e68%
2 - Capital goods36,466.69 24,357.78 tCO
2
e-33%
3 - Fuel and energy related activities2 5 .17  2 5 .17  tCO
2
e0%
5 - Waste generated in operations3,846.34 548.71 tCO
2
e-86%
6 - Business travel248.50 248.50 tCO
2
e0%
7 - Employee commuting11.81 11.81 tCO
2
e0%
13 - Downstream leased assets28,787.51 28,880.50 tCO
2
e0%
Total70,327.48 55,653.75tCO
2
e-21%
Total Scope 1,2 & 370,697.2956,031.84tCO
2
e-21%
Operational control approach
As a specialist healthcare landlord, Vital Healthcare Property
Trust manages many assets which all fall within its organisational
boundary. During the reporting period, Vital divested Hirondelle
Private Hospital and Epworth Rehabilitation Hospital and these
assets have been excluded in this years inventory.
As at 30 June 2025, Vital owned 20 assets in Australia and 14 in
New Zealand which are included in the GHG Inventory.
Vital reports developments in the GHG Inventory once they have
reached practical completion.
Property and land held for development as referenced within the
Vital Annual Report is not included within the GHG Inventory based
on the organisational boundary defined for this exercise using the
operational control approach.
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Vital’s Excluded Emissions Sources
Scope and CategoryEmission SourceReason for Exclusion
Scope 3 – Category 2 – Capital
Goods
Emissions
occurring during
construction
Small materials
Emissions arising from site-work and constructions, while likely material,
have been excluded due to the difficulty of obtaining robust data for the
emissions generated.
Miscellaneous capital goods have been excluded from the calculation of
Scope 3 Category 2 GHG emissions due to a complex mix of very small
items (i.e., nuts, bolts, nails, screws etc) and a lack of specific emission
factors. The exclusion of these capital goods is not thought to be material to
the GHG Inventory.
Scope 3 – Category 4 –
Upstream and Distribution
Whole categoryScope 3 Category 4 “Transport for purchased goods and services” is
included in the purchase price and therefore captured in Categories 1 and 2.
Scope 3 – Category 8 –
Upstream leased assets
Whole categoryExcluded to avoid double counting. Vital leases corporate office space;
however, the associated energy consumption (e.g., purchased electricity)
is already captured and reported under Scope 2. Other upstream leased
assets are not applicable, as Vital owns rather than leases its investment
property portfolio.
Scope 3 – Category 9 –
Downstream Transportation and
Distribution
Whole categoryThis category is not relevant to Vital as it does not produce any products.
Scope 3 – Category 10 –
Processing of Sold Products
Whole categoryThis category is not relevant to Vital as it does not produce any products.
Scope 3 – Category 11 –Use of
Sold Products
Whole categoryThis category is not relevant to Vital as it does not produce any products.
Scope 3 – Category 12 – End-of-
Life Treatment of Sold Products
Whole categoryThis category is not relevant to Vital as it does not produce any products.
Scope 3 – Category 13 –
Downstream Leased Assets
Fugitive emissions
of medical gasses
Due to a combination of lacking data and technical uncertainty around the
emissions associated with the consumption of medical gasses, this emission
source is excluded.
Scope 3 – Category 14 –
Franchisees
Whole categoryThis category is not relevant to Vital as it does not produce any products.
Scope 3 – Category 15 –
Investments
Whole categoryThis category is not relevant to Vital as it does not produce any products.
Calculation methods
A calculation methodology has been used for quantifying the
emissions inventory based on the following calculation approach,
unless otherwise stated below:
Emissions = activity data x emissions factor
Emissions factors have been derived from a range of sources, with
the intent to use the most specific and relevant factor to the nature
of the activity being quantified. Emissions factors were used as
applicable within the reporting period and reflected the geography
of activity across New Zealand and Australia. GHG quantification
is subject to inherent uncertainty because of the variety of
knowledge and methodology used to establish emissions factors
as well as the below explanations of the level of estimation.
Due to the lack of available emissions factors in Australia, emissions
factors from New Zealand have been applied in the instances
where Australia emission factors were unable to be sourced.
A spend based model was used to calculate emissions from
Scope 3 Category 1 Purchased Goods and Services. This is
because product- or supplier-specific data is not available for most
purchased products or many capital goods emissions (Scope 3,
category 1). Instead, the Manager has adopted the spend-based
method to estimate emissions in this category, which multiplies the
economic value of product or service groups purchased by the
emissions per dollar of use. This approach has limitations, both with
regards to the activity data used and in relation to the emission
factors used.
The table below provides detail on emissions sources included in
the GHG emissions inventory, an overview of how activity data
was collected for each emissions source, and an explanation of
any uncertainties or assumptions made.
The table below breaks down data sources, uncertainties and assumed data for each emissions source in the inventory. Unless data
collection and processing differs between equivalent emissions sources in Australia and New Zealand, these have been combined.
All percentages of assumed data are calculated based on their proportion within the activity data.
Scope and
Category
Emissions source(s)Data source(s)Uncertainties and LimitationsAssumed data
Scope 1Fugitive refrigerant
emissions from HVAC
systems.
Refrigerant top-ups,
including quantity if
undertaken.
Leakage rates can vary significantly between
different models of equipment and age.
0% of data was assumed and no default leakage
rates were applied (from MfE 2024).
Scope 2Electricity consumed
in offices.
Supplier invoices.N/A0%
Scope 3 –
Category 1
All purchased goods
and services not
included in other
Scope 3 categories.
Financial data,
converted to USD
and corrected for
inflation to match
with emission factors.
All calculations (excluding water which uses
the MfE emissions factor) were done using
spend-based emission factors which carry large
uncertainty as emissions per dollar-spend, in reality,
varies significantly. The OpenCEDA Emission
Factors select are based on Producer cost.
N/A
Scope 3 –
Category 2
Asset construction,
leasehold
improvements, and
other capitalised
equipment and
furniture.
Information
requested from
on-site construction
contractors and
quantity surveyor
reports.
Material quantities are not supplier-specific and
therefore are applied general emission factors
BRANZ and NABERS which may vary in accuracy
for each product.
N/A
Scope 3 –
Category 3
Upstream emissions
from electricity
consumption.
Supplier invoices.N/AN/A
Scope 3 –
Category 5
Solid waste from
operations.
Waste reports
from third parties
or onsite facilities
managers.
The applied emission factors are not specific to the
types of waste produced by the assets, causing
some uncertainty as different waste streams may
produce more or less emissions depending on
their biodegradability in landfills.
17% of waste data was estimated as data was
not available. These estimates were done by
applying the average tonnage per gross floor
area of similar building typologies with available
data across the portfolio.
Wastewater.Supplier invoices.Wastewater emission factors are not available
for Australia and have been proxied with
New Zealand emission factors which are not
geographically accurate.
Assumed wastewater figures are based on water
consumption and a calculated conversion rate of
water to wastewater which is representative of the
average across all available portfolio data, but
not individual assets.
14% of wastewater data was estimated as
wastewater data was not available for specific
assets. To estimate their wastewater quantities,
their water consumption was applied a conversion
factor. This factor was calculated based on all
assets with both water and wastewater data to
estimate the average conversion in the portfolio.
Construction waste.Supplier invoices.The construction waste, though generated
and disposed of in Australia was applied a
New Zealand emission factor which is not
geographically representative. This is due to no
emission factor representing construction and
demolition waste being available for Australia.
N/A
Scope 3 –
Category 6
Business travel
associated with Vital
activities.
Corporate travel
management
supplier data.
Air travel emissions factors selected include
radiative forcing. Radiative forcing factors are still
an area of scientific debate, with varying multipliers.
The uncertainty lies in how accurate these multipliers
are in reflecting real-world impacts.
N/A
Scope 3 –
Category 7
Employee commuting
associated with Vital
activities.
Employee survey.Being based on survey data, the calculations
represent an extrapolation of a snapshot in time,
based on the survey respondents. This may not
be representative across the year and could have
skews based on specific respondents and non-
respondents.
This category is entirely based on assumed
data as the survey only covers a specific point in
time. This point-in-time data has been extrapolated
and attributed at 57% based on the proportion
of assets attributed to Vital in the ANZ portfolio
versus other funds managed by Northwest
in ANZ.
Scope 3 –
Category 13
Electricity, natural
gas and diesel
consumption in leased
assets.
Tenant reporting
and letters of
authority.
Assumed electricity, natural gas and diesel
data is based on a mixture of extrapolations
and averages from comparable assets within
the portfolio which is likely not accurate to real
consumption.
26% of electricity, 22% of natural gas data, were
based on assumed data. All assumptions were
either based on extrapolation (to cover gaps in
reporting) or average consumption per gross floor
area in comparable assets (by geography and
asset type).
Fugitive refrigerant
emissions in leased
assets.
Tenant reporting.Leakage rates can vary significantly between
different models of equipment and age.
57% of data was assumed based on default
leakage rates from MfE 2024 due to lacking
data availability.
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DISCLAIMER:
This document has been prepared by Northwest Healthcare Properties Management Limited (the
Manager) as manager of the Vital Healthcare Property Trust (the Trust). This document provides
general information only and is not intended as investment, legal, tax, financial product or
financial advice or recommendation to any person and must not be relied on as such. You should
obtain independent professional advice prior to making any decision relating to your investment
or financial needs.
All references to $ are to New Zealand dollars unless otherwise indicated.
This document may contain forward-looking statements. 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. Any indications
of, or guidance or outlook on, future earnings or financial position or performance and future
distributions are also forward-looking statements. The forward-looking statements are based on
management’s and directors’ current expectations and assumptions regarding the Trust’s 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. The Trust’s actual results may vary materially from those expressed
or implied in the forward-looking statements. The Manager, the Trust, and its or their directors,
employees and/or shareholders have no liability whatsoever to any person for any loss arising
from this document or any information supplied in connection with it. The Manager and the Trust
are under no obligation to update this document or the information contained in it after it has been
released. Past performance is no indication of future performance.
The information in this document is of general background and does not purport to be complete.
It should be read in conjunction with Vital’s market announcements lodged with NZX, which are
available at www.nzx.com/companies/VHP.