Precinct Properties New Zealand Limited/Announcement

PCT Climate Related Disclosures 2025

ESG3 November 2025PCTReal Estate

Precinct Auckland Head Office Wellington Office
E hello@precinct.co.nz Level 12, 188 Quay Street, Auckland 1010 T 0800 400 599 Generator, 30 Waring Taylor Street, Wellington T 0800 400 599
W www.precinct.co.nz PO Box 5140, Auckland 1141, New Zealand F +64 9 927 1655 PO Box 2, Wellington 6140, New Zealand F +64 4 494 2267
About Precinct
Listed on the NZX Main Board under the ticker code PCT and ranked in the NZX top 30, Precinct
is the largest owner, manager and developer of premium city centre real estate in Auckland
and Wellington.
Precinct is predominantly invested in office buildings and also includes investment in Precinct
Flex, Commercial Bay retail and a multi-unit residential development business. As at 30 June
2025, Precinct's directly-held portfolio (on-completion value) totalled $3.2 billion and Precinct
had a further $1.6 billion of capital partnering assets under management: $1.2 billion of these
were assets in which Precinct holds a minority interest; with the balance being managed on
behalf of third party partners. For information visit: www.precinct.co.nz
On 1 July 2023, Precinct effected a restructuring to create a stapled group structure. A stapled
group comprises two listed parent companies whose shares are held by the same shareholders
in equal proportions. The shares in each parent company can only be transferred or dealt with
together. Shareholders in Precinct Properties Group (“Precinct”) hold an equal number of
shares in Precinct NZ and Precinct Investments Limited and these shares can only be dealt with
together. The stapled issuers are described as “Precinct Properties NZ Ltd & Precinct Properties
Investments Ltd (NS)” on NZX systems and the ticker code for the stapled shares remains PCT.

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2025
Climate
Related
Disclosures
precinct.co.nz

Contents
Introduction04
Statement of Compliance06
Governance08
Strategy14
Risk Management33
Metrics and Targets37
Appendices52
Glossary70
Directory72
Climate Related Disclosures03
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory
03

Introduction
Precinct Properties Group04

This report presents Precinct's Climate
Statement for the FY25 reporting period
in accordance with Aotearoa New Zealand
Climate Standards issued by the External
Reporting Board (XRB):
•NZ CS 1: Climate-related Disclosures
•NZ CS 2: Adoption of Aotearoa New Zealand
Climate Standards
•NZ CS 3: General Requirements for Climate-
related Disclosures
As a business, Precinct is committed to creating a
more sustainable environment. This means identifying
and assessing the risks and opportunities presented by
climate change. We recognise our role as a long-term
owner, manager and developer of real estate, as well
as an employer. We are taking a thoughtful approach
to climate change action, as well as disclosure. Precinct
is fully supportive of a low-carbon future for Aotearoa
New Zealand.
Climate change is important to Precinct as a real
estate organisation due to its potential impact on
property values, insurance costs, and risk management.
As temperatures rise and extreme weather events
become more frequent and severe, properties in general
face increased vulnerability to damage from floods,
storm events, wildfires, and other natural disasters. Our
organisation takes this into consideration, alongside
transition risks and climate change opportunities, when
assessing investment risks and making strategic decisions
about property development and management. We
understand and utilise current advice about the various
ways we can address climate change to enhance the
long-term sustainability and profitability of our business.
This report is approved on behalf of Precinct Properties
New Zealand Limited and Precinct Properties Investments
Limited on 28th October 2025.

Anne Urlwin
Independent Director
and Chair
Nicola Greer
Independent Director
and Chair of the
Environmental, Social &
Governance Committee
About Precinct
Listed on the NZX Main Board under the ticker
code PCT and ranked in the NZX top 30, Precinct
is the largest owner, manager and developer
of premium city centre real estate in Auckland
and Wellington.
Precinct is predominantly invested in office
buildings and also includes investment in Precinct
Flex, Commercial Bay retail and a multi-unit
residential development business.
For information visit: www.precinct.co.nz
Disclaimer
This report sets out Precinct’s current understanding of,
and response to, climate-related risks and opportunities
as they impact Precinct as at 28th October 2025, and
the current and anticipated impacts of climate change,
which may evolve over time. Climate change is an
evolving challenge, with high levels of uncertainty. By its
nature, this report contains forward looking statements,
including climate scenarios, targets, assumptions, climate
projections, forecasts, statements of future intentions,
estimates and judgements. Forward looking statements
involve assumptions, forecasts and projections about
Precinct’s present and future strategies and the
environment in which Precinct will operate in the
future, which are inherently uncertain and subject to
limitations. While Precinct has taken reasonable care
in making these forward-looking statements, these
statements, together with the risks and opportunities
described in this report, and the strategies to achieve our
targets as set out in this report, may not eventuate or
may be more or less significant than anticipated. There
are many factors that could cause actual results,
performance or achievement of climate-related metrics
and targets to differ materially from that described,
many of which are outside of Precinct’s control, including
economic and technological viability, as well as climatic,
government, consumer, and market factors. As such,
Precinct cautions reliance on this report, which may be
necessarily less reliable than Precinct's other external
reporting. Nothing in this report should be interpreted as
legal, financial, tax, earnings or other advice or guidance.
To the fullest extent permitted by law, Precinct disclaims
any liability arising from statements made in, or omitted
from, this report.
Climate Related Disclosures
05
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory

Statement of
Compliance
Precinct Properties Group06

Precinct Properties New Zealand Limited (PPNZ) and
Precinct Properties Investments Limited (PPIL) (together,
Precinct) are both climate reporting entities (CREs) under
the Financial Markets Conduct Act 2013 (FMCA).
PPNZ and PPIL have been granted an exemption from
the FMCA, the Financial Markets Conduct (Climate
Statements – Precinct Properties Group) Exemption Notice
2024 (Exemption Notice), which permits PPNZ and PPIL,
subject to conditions set out in the exemption notice,
to prepare climate statements in respect of Precinct,
while they remain stapled (in place of separate climate
statements for each company).
These climate-related disclosures comply with the
Aotearoa New Zealand Climate Standards (NZ CS 1, 2,
and 3) issued by the External Reporting Board, subject to
the Exemption Notice.
In preparing this second report, Precinct has elected to
use the following exemptions as referenced in NZ CS 2:
Adoption Provision 2 - Anticipated Financial Impacts
•Paragraph 15(b) of NZ CS 1 Climate-related
Disclosures requires the following disclosure: the
anticipated financial impacts of climate-related risks
and opportunities reasonably expected by the entity.
•Paragraph 15(c) of NZ CS 1: a description of the
time horizons over which the anticipated financial
impacts of climate-related risks and opportunities
could reasonably be expected to occur.
•Paragraph 15(d) of NZ CS 1: if the entity is unable to
disclose quantitative information for paragraph 15(b),
an explanation of why that is the case.
Adoption provision 5: Comparatives for Scope 3
GHG emissions
•Paragraph 40 of NZ CS 3 requires the following
disclosure: For each metric disclosed in the current
reporting period an entity must disclose comparative
information for the immediately preceding two
reporting periods.
Adoption Provision 6 - Comparatives for Metrics
•Paragraph 40 of NZ CS 3 requires the following
disclosure: For each metric disclosed in the current
reporting period an entity must disclose comparative
information for the immediately preceding two
reporting periods.
Adoption Provision 7 - Analysis of Trends
•Paragraph 42 of NZ CS 3 requires the following
disclosure: An entity must disclose an analysis of
the main trends evident from a comparison of each
metric from previous reporting periods to the current
reporting period.
These adoption provisions have the following effects:
•Adoption Provision 2 exempts Precinct from reporting
on its anticipated financial impacts.
•Adoption Provision 5 exempts Precinct from providing
comparative information regarding Scope 3 emissions
disclosures where Precinct is disclosing Scope 3
categories for the first time this year.
•Adoption Provision 6 provides a partial exemption for
the requirement to two years of comparative metrics,
with only one year of comparative data required in
the current reporting period.
•Adoption Provision 7 exempts Precinct from reporting
an analysis of trends for disclosed metrics in the
current reporting year.
Refer to Appendix 1 for a list of external parties and
a description of the services provided in preparation of
this statement.
Climate Related Disclosures
07
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory

Governance
Precinct Properties Group08

This section outlines the role of Precinct’s Board of Directors in
overseeing climate-related risks and opportunities and the role
of Precinct Management in assessing and managing climate-
related risks and opportunities.
Climate Related Disclosures09
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory

Governance
Board of Directors
The governance body responsible for oversight of
climate-related risks and opportunities at Precinct is our
Board of Directors. Full Director bios can be found on
Precinct's website.
Precinct’s Board of Directors established an ESG
Committee in May 2021 to assist with implementing and
monitoring the Company’s strategic objectives in relation
to ESG issues and other key risks (including sustainability
and climate-related risks) having regard to Precinct’s
circumstances and portfolio of businesses. However, the
Board retains ultimate oversight of climate-related risks
and opportunities. The Board evaluates the performance
and work of the ESG Committee together with the Chair
of the ESG Committee. As part of this process, the Board
undertakes an annual review of the ESG Committee’s
objectives and activities in terms of its responsibilities as
set out in the ESG Committee Charter.
Upon the recommendation of the People and
Performance Committee, the Board approves Precinct’s
people-focussed policies and processes to support
Precinct to deliver on its long-term strategies and goals.
This includes evaluating the competencies required of
Directors and considering the setting of any performance-
based metrics that seek to link executive remuneration
to Precinct’s climate-related targets as part of the
annual remuneration process and short-term incentive
(STI, annual performance-based bonuses) framework.
These targets underpin those noted within the Metrics
& Targets section of the Climate Statement. In FY25,
remuneration for our Executive and Senior Management
team was not directly linked to climate-related targets.
However, from FY26 we plan to include a specific climate-
related risks and opportunities component in Precinct’s
STI bonus scheme.
The Board of Directors is informed on climate-related
risks and opportunities by Management on a quarterly
basis through a standing climate-related section in
Board reporting with further in-depth updates provided
during ESG Committee meetings which occur at
least tri-annually. In these ESG Committee meetings,
Management provides the Board of Directors with an
update on progress against established material risks and
opportunities which are addressed accordingly. In FY25,
the minimum frequency of ESG Committee meetings
has increased from bi-annual to tri-annual following the
introduction of an additional ESG Committee meeting
dedicated to the Climate Related Disclosures. The Board
also considers climate risks and opportunities on an ad-
hoc (out of cycle) basis as needs arise, for example in
relation to any acquisition as part of the Board sign-off
process on due diligence and feasibility, and in decisions
to divest properties. A table setting out the number of
Board and Management engagements during FY25 is set
out in Appendix 5.
As part of its annual business planning, the Board
integrates climate-related risks and opportunities into
its development of Precinct’s overall ESG strategy,
framework and initiatives.
The Board of Directors also has oversight over Precinct’s
performance against its metrics and targets. The
introduction of new, or adjustment of existing, significant
and strategic climate-related metrics and targets is
discussed and agreed by the Board, having received the
recommendation of the ESG Committee. Once agreed,
Precinct’s performance against its climate-related metrics
and targets is discussed as a standing item within the
ESG Committee reporting.
Board of Directors skills and competencies
Precinct’s current Directors' skills matrix can be found
in Precinct’s 2025 Annual Report available on Precinct's
website. The Directors' skills matrix reflects the director
attributes which the Board considers are required
to oversee Precinct’s strategic business objectives.
Sustainability, which includes climate-related matters, is
one of the ten capabilities against which directors assess
their current skills.
Specific programmes undertaken by directors include:
•Anne Urlwin, Chair of the Board,
–New Zealand Institute of Directors’ Advanced
Climate Governance Programme (FY24)
•Nicola Greer, Chair of the ESG Committee
–New Zealand Institute of Directors’ Climate
Change Governance Essentials Course (FY24)
–Cambridge Institute for Sustainability
Leadership (CISL) Non-Executive Director
Programme (FY25)
Management informs the Board of Directors of
recommended climate-related training and education
within ESG Committee meetings.
Precinct Properties Group
10

ESG Committee
The ESG Committee assists the Board's oversight of
climate-related risks and opportunities and is comprised
of four of Precinct's independent directors. During FY25
the ESG Committee held four committee meetings,
each followed by an ESG Committee report to the
Board. Precinct’s Head of Sustainability provides updates
at these meetings to the ESG Committee (and the
Board), including on operational progress around ESG
and climate-related risk and opportunity management.
Precinct's CEO, Deputy CEO, CFO and other key
representatives are invited to attend these committee
meetings to set objectives, review Precinct’s Climate
Risk Register, track updates and discuss and approve
current and future strategic initiatives which help manage
Precinct’s impacts on the economy, environment and
people. The ESG Committee can seek independent
professional advice and invite expert third parties to
attend meetings to ensure appropriate climate-related
skills and competencies are available to the Board.
The Committee is guided by the ESG Committee Charter
(available in Precinct's Corporate Governance Manual
on Precinct's website), which requires the Committee to,
among other things:
•review and recommend for Board approval the
climate-related strategy, framework and initiatives;
•oversee the implementation of Precinct’s
Sustainability Policy and practices;
•oversee the identification, preparation and review
of climate related risks and opportunities ahead of
incorporating into the Audit and Risk Committee
(ARC) risk register;
•assess and recommend to the Board any changes
to Precinct’s climate change risk management
framework and processes; and
•assist in the review of other key internal policies
to support effective consideration of climate-
related issues.
The ESG Committee recommends climate-related metrics
and targets to the Board. The Board approves metrics
and targets, except those that are operational in
nature, which do not require Board approval. Once
approved, the Board delegates responsibility for
monitoring performance against climate-related targets
to the ESG Committee, the ESG sub-committees and
Management. The ESG Committee also has oversight
of the climate scenarios in the Strategy section of this
report. In FY25, following the recommendation of the ESG
Committee, the Board reconfirmed the climate scenarios
approved in FY24. As outlined in the ESG Committee
Charter, the Chair of the ESG Committee is required to
report back to the Board no less than three times a year
on key points of discussion at ESG Committee meetings,
including the progress toward strategic climate-related
targets and the efficacy of associated performance
metrics, and present the recommendations of the ESG
Committee at the next scheduled meeting of the Board.
Audit and Risk Committee
The Audit and Risk Committee (ARC) assists the
Board in overseeing Precinct’s climate-related risks. The
Committee oversees Precinct’s primary risk register and
reviews it at least quarterly with Management to track
existing risks and the emergence of new risks. Key
climate-related risks are included in a separate register
alongside Precinct's primary risk register and reported
to the Board along with an evaluation of the strategic
ramifications of the risks.
Following the recommendation of the ESG Committee,
the ARC’s role with respect to oversight of the CRD
process includes:
•reviewing draft climate related
disclosure documentation;
•ensuring due process is followed in order to achieve
compliance with FMCA/NZCS1-3 requirements;
•engaging external consultants to provide verification
and/or assurance as required; and
•recommending that the Board approve the CRD.
The ARC meets at least every quarter (FY25: five
meetings) and reports back to the Board in respect to
financial reporting, compliance and risk management
which includes climate-related risks.
Climate Related Disclosures
11
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory

Governance
Executive and Senior Management
Led by Precinct’s Chief Executive Officer, Precinct’s
Executive team is collectively responsible for the execution
and delivery of Precinct’s sustainability strategy, including
managing climate-related risks and opportunities.
Management’s role in assessing and managing climate-
related risks and opportunities is to ensure the impacts of
transition and physical risks to the business are reported
and integrated into key workstreams. Management
updates the Board on a regular basis through the ESG
Committee and the ARC.
Precinct's Chief Financial Officer oversees Precinct’s
sustainability strategy and is primarily informed about
climate-related risks and opportunities through updates
from the Head of Sustainability during weekly one on
one meetings alongside weekly group meetings with
the Finance and Analytics teams. Performance against
climate-related metrics and targets along with updates
on Precinct's management of climate-related risks and
opportunities are presented based on key workstreams
of four internal ESG sub-committees which are detailed
below. Precinct’s Head of Sustainability reports directly
to Precinct’s Chief Financial Officer and is responsible for
managing and assessing Precinct’s climate-related risks
and opportunities. Precinct has an additional dedicated
ESG resource and seeks advice from specialist external
sustainability consultants as and when required.
The full Executive Team and bios can be found on
Precinct's website.
ESG Sub-Committees
Precinct’s Head of Sustainability provides weekly updates
to the CFO, Finance, and Analytics teams on the ESG sub-
committees focused on climate-related initiatives, risks,
and opportunities. These sub-committees are responsible
for assessing, actioning and driving climate-related
issues (including climate-related risks and opportunities),
tracking performance against climate-related metrics
and targets, and embedding Precinct’s long-term
sustainability strategy into business operations. The ESG
sub-committees cover four key focus areas and include
representatives from across the business:
•Building Developments - meet quarterly;
•Building Operations - meet monthly;
•Corporate, Legal & Marketing - meet quarterly; and
•Finance & Acquisitions - meet bi-annually.
Precinct Properties Group
12

Climate Related Disclosures13
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory
13

Strategy
Precinct Properties Group14

This section outlines
Precinct’s climate scenario
analysis, identified risks
and opportunities, and
the current and expected
impacts of climate change.
It also highlights how we’re
positioning the business
for a low-emissions, climate-
resilient future.
Precinct recognises sustainability (including
managing climate-related risks and
opportunities) is an important part of
our business activities. Our sustainability
strategy has been designed in parallel with
Precinct's broader business strategy. As a
publicly listed real estate investment company
that specialises in owning, developing, and
managing premium inner-city properties in
Auckland and Wellington, we recognise
our role in generating, and regenerating,
sustainable value.
Precinct’s three strategic pillars are a core office
portfolio, a proven track record to create new world-
class real estate and our capital partnering platform,
all underpinned by a focus on people centric outcomes
in mind. We leverage the integration of our strategic
pillars to create vibrant, mixed-use precincts that provide
quality experiences for the people who live, visit or come
to work in our spaces, while delivering long-term value
to shareholders.
We have defined sustainability at Precinct as
enabling sustainable and successful business,
improving our operational performance and
incorporating sustainable design across our
portfolio of properties.
Our sustainable value is fuelled by Precinct's
principles of success:
• focus on strategic locations;
• maintain and grow client occupier
(tenant) relationships;
• invest in quality assets and environments;
• maintain a long-term view;
• leverage Precinct’s people and its platform; and
• identify, cultivate, and maintain strong long
term capital partnerships.
Precinct has maintained our focus on climate
change as one of the core components of
our materiality assessment, informed by key
stakeholders, initially completed in 2019 and
validated annually by a desktop review.
Precinct’s ‘double materiality’ approach
As proposed by the XRB (NZ CS3 [38]), Precinct has
adopted a broad approach to assessing and acting on
current climate-related impacts across our operations.
Summarising our approach to identifying and managing
climate risks, Precinct assesses both:
•Impacts on us – in considering how our business will
be affected by climate change, we have pursued
detailed analysis across our portfolio to understand
the extent of physical and transition risks and
opportunities expected to occur under the three
climate-related scenarios detailed in this section.
•Impacts by us - by analysing our Scope 1, 2 and
full value chain Scope 3 emissions, we are able to
better understand the impact our business has on
contributing to our changing climate. This also assists
us to prioritise our efforts to make a difference in our
Climate Related Disclosures
15
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory

Strategy
supply chain alongside our industry peers and more
broadly across industry.
This approach, known as double materiality, considers
both how climate change affects our business and how
our business contributes to climate change. For Precinct,
this means recognising that we are impacted by climate
impacts, while also acknowledging our role in influencing
those impacts as part of the real estate sector.
Climate scenario analysis
To understand the resilience of Precinct’s business model
and response to climate-related risks and opportunities,
we have relied on internal resources and working groups
as well as external advice to develop our climate
scenarios. These climate scenarios were developed and
reviewed by the ESG Committee and were approved
by the Board on the ESG Committee’s recommendation
in FY24 and reconfirmed by the Board on the ESG
Committee's recommendation in FY25.
Climate-related risks and opportunities are integrated as
part of Precinct's broader strategy processes. However,
the climate scenario analysis is currently a standalone
process. To support the establishment of a consistent
baseline for the property industry in New Zealand,
Precinct participated in workshops organised by the
New Zealand Green Building Council (NZGBC). These
workshops, facilitated by engineering firm Beca, aimed to
develop three climate scenarios for the Construction and
Property sector. The resulting scenarios were published in
May 2023 by the NZGBC in its report, Climate Scenarios
for the Construction and Property Sector: Ngā Horopaki
Āhuarangi mō te Rāngai Hanganga me ngā Whare.
A summary of the sources of data used to prepare
these climate scenarios is set out in Appendix 2. The
full NZGBC report, which includes a detailed description
of the scenario development process, data sources,
and further information regarding the assumptions and
data behind each scenario (including for example
sequestration from afforestation and nature-based
solutions), is available here.
Like many of our peers in the Construction and
Property sector, Precinct has adopted the narrative, key
assumptions, and conditions outlined in these climate
scenarios. We believe these scenarios are well-suited
for assessing the resilience of our business model and
strategy, as they were developed specifically for our
sector with guidance from the NZGBC, and aligned
with the working draft of the XRB’s guidance, Scenario
Analysis: Getting Started at the Sector Level
(2022). An
updated version has not been issued at the time of this
Climate Statement.
We consider the scenarios represent a plausible
and challenging description of how the future may
develop based on a coherent and internally consistent
set of assumptions about key driving forces and
relationships impacting the Construction and Property
sector, covering both physical and transition risks
alongside anticipated opportunities.
However, Precinct acknowledges that while these
scenarios provide a consistent baseline, individual
property companies are responsible for interpreting and
applying them as best suited to their specific operations.
Accordingly, Precinct has conducted its own assessment
of the sector scenarios to identify areas material to
our business. Through this process, we have identified
key risks and opportunities relevant to our operations.
In addition to utilising the scenarios prepared by the
NZGBC, Precinct has undertaken our own modelling with
external specialists and conducted workshops using the
Construction and Property Sector Scenarios as set out
in further detail in the
Risk Management section of
this report. Inputs to our own modelling have utilised
much of the same anticipated scenarios and time
horizons to ensure consistency however, slight deviations
between our choice of analytics software and the NZGBC
reporting variables are noted below for transparency.
This section also details the use of S&P Climanomics
software platform (a climate risk analytics tool) to
support the quantification and impact of identified risks
and opportunities.
To support our scenario analysis, we selected the S&P
Global Climanomics® platform due to its alignment
with regulatory expectations, scientific robustness, and
financial relevance.
Climanomics enables structured, forward-looking
assessments of climate-related risks and opportunities,
consistent with the TCFD framework and NZ CS 1–
3. It uses CMIP6 climate models, NASA’s NEX-GDDP
downscaled projections, and peer-reviewed science to
model 9 physical hazards (e.g. extreme heat, flooding,
cyclones). Outputs are provided in both absolute and
relative financial terms across four emissions scenarios
and eight decades, allowing us to quantify risk at the
asset and portfolio level.
Precinct Properties Group
16

We chose Climanomics because it:
•Aligns well with global SSPs, NZGBC scenario
guidance and is utilised by other peer
reporting entities
•Provides credible, investor-grade financial risk outputs
•Supports site-specific adaptation planning
•Allows offline adjustment for local mitigation
measures (e.g. flood barriers), ensuring disclosures
reflect realistic risk exposure
This approach ensures our scenario analysis is both
scientifically grounded and decision-useful, while meeting
NZ CS requirements for transparency and audit readiness.
Precinct note that the analysis completed through S&P
Climanomics that underpins the materiality of impact
across risks and opportunities differs in the application
of Shared Socioeconomic Pathways (SSPs) per the
below table. Narratives describing these differences have
been introduced to the NZGBC developed scenarios on
the following pages to ensure robustness of reporting.
Precinct note the Climanomics SSPs present a more likely
low/orderly and high/hot house world where the impacts
are expected to be far more extreme for the lower and
higher scenarios.
Climate Scenario
ClimanomicsNZGBC
High/Hot
house world
SSP5-8.5SSP3-7.0
Medium/DisorderlyMedium: SSP2-4.5
Medium
high: SSP3-7.0
SSP1-2.6
Low/OrderlySSP1-2.6SSP1-1.9
Precinct defines its time horizons based on the economic
life cycle of its assets, typically spanning 50 to 60 years.
The table below outlines the time horizons used by
Precinct in our scenario analysis approach, consistent
with the NZGBC’s sector-specific guidance and the
typical economic life of building structures:
Time HorizonPeriodDescription
Short-termPresent
- 2030
Short-term risks are those
that may impact near-term
financial results including
income, operating costs
and increased repairs
and maintenance.
Medium-
term
2031 -
2050
Medium-term risks include
climate related impacts that
may impact our financial
results from 2030 onward.
These impacts may require
Precinct to adjust core
elements of its strategy.
Long-term2051 -
2100
Precinct’s assets generally have
a 50-year life cycle, therefore
buildings in planning, under
development and approaching
completion will be subject to
these long-term conditions and
the risks that may impact
the financial viability and long-
term strategy of Precinct.
Under this methodology, and reflected in our scenario
analysis, asset value reverts to land value once
the 60-year horizon is reached, reflecting Precinct’s
expectations around asset recycling and refurbishment.
It acknowledges that assets are unlikely to retain
full value beyond their intended lifecycle of 50-60
years at a point in time when assessing current and
future anticipated financial impacts. This adjustment to
our methodology enhances the accuracy of scenario
analysis and supports strategic planning. Crucially, this
methodology reflects the annual climate reporting cycle
and the obligations placed on reporting entities under
the climate reporting regime to connect to annual
financial reporting. Once future strategic plans, such
as asset development or refurbishment works, are
approved through Precinct’s governance processes, they
will be transparently disclosed and incorporated into
financial impact assessments within the climate-related
disclosure statement.
Climate Related Disclosures
17
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory

Strategy
An orderly transition to a decarbonised society by 2050, resulting in a Net Zero grid with near-zero emissions,
would significantly impact both the economy and energy sector. International energy-intensive industries would
be attracted, boosting industrial activity. However, electricity prices would rise due to increased pressure on the
grid, and there would be shortfalls in generation capacity as demand for electricity grows. It is expected that
assets located in central CBD locations will be prioritised for service restoration. Additionally, the cost of carbon
would increase to $250 per tonne of CO
2
-equivalent, reflecting the higher cost of emitting carbon in this new
landscape. In addition to transitioning to a Net Zero grid by 2050, society will experience a range of impacts due
to increased rainfall intensity (6%) and the necessary medium-term capital expenditure for fossil fuel removal and
energy efficiency retrofits driven by short-term carbon disclosures. Contractors will shift their focus to refurbishments
rather than new builds due to the high carbon intensity of new construction projects. There will be a significant rise
in investment in Carbon Capture and Storage (CCS) technology as one of the primary decarbonisation tools for
hard-to-abate fossil fuel use. Short-term pressures from investors and customers to meet the 1.5-degree reduction
target will lead to financial penalties from lenders, including restricted access to capital, government funding
limitations, and adjusted interest rates. Sustainable and decarbonised buildings will be prioritised for premium
occupiers subject to their own net zero and climate-related targets. Additionally, the number of hot days will
increase by 40%, and a reduction in urban sprawl to decarbonise infrastructure will result in more inner-city
high-rise residential developments. Properties in floodplains or areas with unstable ground conditions will face
rising insurance premiums above inflation and a retreat by 2050. There will be public and private support for
workers in high-intensity industries and professions. New Zealand’s population is expected to grow to 6.13 million by
2050, with 23.3% of the population being elderly. In consideration of carbon sequestration from afforestation and
nature-based solutions, a coordinated effort between government, businesses and communities to preserve and
enhance ecosystems would take place led by government incentives, targeted projects and a well considered land
use strategy. These strategies would likely incorporate native planting and regeneration projects.
Precinct Properties Group
18

A disorderly transition to a decarbonised society would result in severe consequences for both the environment and
the economy. The increase in the severity of weather events, coupled with a decline in public and private adaptation
measures, would lead to declining property values and rising insurance premiums. Delays in action during the 2020s
would cause a surge of capital to flood the market around 2030, incentivising rapid innovation. Assets that fail to
decarbonise on schedule would be offloaded in large quantities due to abrupt short-term regulations. The carbon
price would spike to $250 per ton of CO
2
-e by 2050, leading to significant gaps in equality and industry compliance.
Electricity prices would experience sharp increases due to the need for fossil fuel peak demand generation, resulting
in considerable generation capacity shortfalls as the grid transitions to higher electricity end-use demand over
a shorter time horizon. Budget constraints for energy security related infrastructure will lead to capital spend
concentrated in CBD areas with assets located in central CBD locations also prioritised for service restoration. Hard-
to-abate construction materials would not decarbonise using CCS technology until the medium term, causing high
prices and supply shortages for low-carbon materials. In 2030, the government would issue mandatory low-carbon
building regulations to an unprepared industry, drastically raising construction and retrofit costs overnight. Rapid
decarbonisation requirements from 2030 would exacerbate inequality and cause community disharmony. Massive
supply chain disruptions would force New Zealand organisations to participate more in the global market. However,
the global market may not see New Zealand as a viable trading partner where higher volumes of decarbonised
products would be more lucrative in larger markets. Additionally, there would be increased investment in road-
based infrastructure, followed by a rapid shift in transport regulations to decarbonise transport by 2030. In a
disorderly scenario, carbon sequestration from afforestation and nature-based solutions would unfold through
fragmented and inconsistent efforts, with limited coordination between government, businesses, and communities.
Government incentives and land use strategies would be unclear or poorly implemented, leading to ad-hoc projects
that often prioritise short-term gains over long-term ecosystem preservation.
Climate Related Disclosures
19
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory

Strategy
A ‘hot house’ transition to a decarbonised society would lead to an increase in the severity of weather events and
a decline in both public and private adaptation measures. Extreme wind speeds (increasing by 5-10%), rainfall
intensity (increasing by 8.6%), and a 100% increase in hot days would become more common. Global delays
in decarbonisation efforts would cause disjointed capital supply, hindering market funding for decarbonisation.
Government support would be redirected to critical infrastructure and services, leaving other assets increasingly
stranded from 2030. The carbon price would remain low at $35 per ton of CO
2
-e by 2050, providing little incentive
for significant carbon emission reductions from major users. Sharp increases and price shocks in electricity prices
would occur to accommodate fossil fuel peak demand generation, with considerable shortfalls in generation
capacity exacerbated by severe weather impacts on energy supply. Budget constraints for energy security related
infrastructure will lead to highly reactive capital spend concentrated in CBD areas with critical assets located in
central CBD locations prioritised for service restoration. Procuring decarbonised materials on the global market
would be nearly impossible for New Zealand, as larger markets would be prioritised first.
In a hot house scenario, carbon sequestration from afforestation and nature-based solutions would be largely
sidelined as the focus shifts to short-term economic survival and crisis management in the face of escalating
climate impacts. Government, businesses, and communities would be reactive rather than proactive, with little
attention to long-term land use strategies or environmental stewardship, and native planting would be neglected in
favour of immediate, unsustainable exploitation of resources.
The three scenarios (Orderly, Disorderly and Hot House) outlined above in this section have used assumptions
made based on Climate Scenarios for the Construction and Property Sector: Ngā Horopaki Āhuarangi mō te Rāngai
Hanganga me ngā Whare. See note in 'Climate Scenario Analysis' section referencing acknowledgement of SSPs
used for NZGBC narratives and Climanomics quantification.
Precinct Properties Group
20

Climate-related impacts
The following tables outline our climate-related risks and opportunities as detailed in Precinct's Climate Risk Register,
alongside their current and anticipated physical and transition impacts and the time horizons over which we expect each
risk or opportunity to impact an estimated proportion of our portfolio. These impacts have been identified as having direct
relevance to Precinct’s business strategy and management. Although we have disclosed the current impacts for Precinct
that we have identified arising from the climate-related risks and opportunities listed in the table below, we consider that
during the reporting period, none of these impacts were material, and they did not result in any material financial impacts
with respect to Precinct’s business (as defined by our risk assessment threshold). Despite this, we have continued to progress
a number of actions and mitigations related to each risk (as outlined below), and have advanced our efforts to leverage
opportunities. As we continue to review and update Precinct's Climate Risk , our understanding of risks will evolve and be
reflected in each annual Climate Statement.
Physical and Transition Risks
The severity of each risk across Precinct’s portfolio has been assessed and expressed as estimated percentages, reflecting
asset vulnerability to physical and transition risks in line with CS1 compliance [22(c) and (d)].
Severity of Impact
1
Estimated percentage of the portfolio assets affected
2
OrderlyDisorderly
Hot
House
Low< 10.0%
Medium10.0%-20.0%
High20.0%-30.0%
Very high>= 30.0%
1Takes into account financial risks & other risks such as reputational damage to determine anticipated ‘value loss’', consistent with Precinct's risk
assessment method. Per adoption provision 2, anticipated financial impacts and explanation are not disclosed for this reporting cycle.
2This rating is based on the % of the portfolio with a risk score of 'high' or 'extreme' assessed on an individual assets value.
Physical and Transition Opportunities
The impact of each opportunity across Precinct’s portfolio has been evaluated and expressed qualitatively, representing
the operational benefits derived from activities associated with both physical and transition climate-related opportunities.
Precinct acknowledges the inherent subjectivity involved in evaluating current and future financial opportunities linked to
climate change. In advance of more detailed analysis, management provides this current estimate of how the identified
factors are expected to influence our business. This impact is expressed as qualitative commentary only based on the
definitions below.
Level of Opportunity
1
Management estimation at the entity levelOrderlyDisorderly
Hot
House
Low
Opportunity is marginal or speculative; limited operational or
financial benefit expected.
Medium
Opportunity is plausible and may yield moderate operational
efficiencies or reputational gains.
High
Opportunity is expected to deliver significant operational, financial,
or strategic benefits.
Very high
Opportunity is transformational, with strong alignment to strategic
goals and high likelihood of material impact.
The risks and opportunities identified in the tables below have been identified through our climate scenario analysis and
have been assessed as being material in the context of our asset portfolio through the risk identification processes described
in the Identifying Risks section. Risks and opportunities considered immaterial are not disclosed.
Climate Related Disclosures
21
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory

Strategy
Transition Risks
RiskDescriptionShortMediumLong
Description of Current and Anticipated impacts on Precinct
C = Current Impacts / A = Anticipated Impacts
Precinct's mitigation and actions
C = Current Actions / A = Anticipated or planned actions
MarketMarket risks involve the effects of transitioning to a low-carbon and
climate resilient economy, impacting both the supply and demand
for various products and services considering consumer and investor
preferences. In the real estate sector, these risks include a growing
preference for green buildings by current and future occupiers and
investors. As these groups increasingly favour decarbonised assets
this risks leaving 'brown' assets stranded and devalued. There is
also the risk of increasing capital needed to develop new assets
through the increased cost of raw/virgin materials and competition for
Tier 1 contractors that can achieve the required performance during
construction especially as rating tools become more common place.
This in turn may apply pressure on the capacity and capability of
the labour force to meet expectations of performance both in asset
development and operation. Businesses occupying space in our assets
are also subject to screening by the market to check if their products
and services are meeting market expectations. Additionally, the industry
will experience a rising cost of utility prices and insurance premiums.
Orderly
Disorderly
Hot house
•change in client occupier preferences for sustainable and low
carbon buildings to occupy (C)
•change in general public preferences for trading with
businesses without sustainability credentials occupying our
spaces resulting in higher vacancy rates for the Portfolio (A)
•change in investor appetite to invest in alternative low carbon
industries in place of the property sector (A)
•decline in values for high carbon intensive buildings and those
with low resource efficiency ratings (A)
•increased costs to secure Tier-1 Contractors who are suited to
Green Star build projects (A)
•higher operating costs (e.g. utilities) increase resulting in client
occupiers unable to afford to lease space (A)
•target minimum third party certified Green Building ratings
in design, construction and operation (C)
•participate in globally endorsed real estate frameworks
that provide transparency on ESG performance (C)
•employ the use of industry benchmarks for energy
efficiency (C)
•pursue green finance products (C)
•maintain good relations with a suite of Tier-1
Contractors (C)
•continue to lead in low-carbon material procurement, for
their top embodied carbon materials. Continued early
engagement with their supply chain will allow Precinct to
stay ahead in their understanding of low-carbon material
availability and encouraging the wider industry to use
them. Longer term use of low-carbon material is likely to
drive down price. (C)
•enrol buildings in bespoke analytics platform to drive
improvements over time (A)
•engage with client occupiers in pursuing capital
improvements to existing facilities (A)
TechnologyTechnology risks arise from innovations that are driven or influenced by
the transition to a low-carbon and climate resilient domestic and global
economy. This transition may have impacts; financial and functional,
to physical assets in the real estate sector through increased demand
for air conditioning systems, energy and electrical source diversification
and disruption especially as the broader network shifts away from
fossil fuel to all-electric systems. These may require system or building
upgrades to maintain or increase service and capacity. Failure to deliver
these upgrades risk the impairment or obsolescence of the asset.
Further, these upgrades can result in competition for space reducing
building area available or floor heights. In addition, this transition may
have an impact on soft assets in the real estate sector including
the adoption and maintenance of new systems; including artificial
intelligence integration into building management systems, as well as
the capacity and capability of personnel to develop and manage these
new systems.
Orderly
Disorderly
Hot house
•significant investment in upgrading technology for low carbon
building systems, insulation, renewable energy and electric
vehicle charging station infrastructure impacting high out of
cycle capital expenditure (CAPEX) (C)
•site based electricity, spatial and structural capacity limits
impacting the ability for existing buildings to switch from dual
gas and electric supply to full electrification (C)
•higher number of stranded buildings where the costs to
upgrade exceed feasibility during the development of a
business case (A)
•grid instability and network outages from transitioning or
stressed energy sources (A)
•develop assets in heavily-populated CBD locations where
energy resilience and service recovery is prioritised (C)
•design in low carbon technology solutions upfront during
development (C)
•pre-plan building upgrades to tie into the natural end of
lifecycle for equipment (C)
•strengthen onsite resilience with appropriate and robust
back up energy solutions to shift peak demand (A)
•leverage green finance options and alternative commercial
models to spread high CAPEX spend over a longer term for
equipment requirements (A)
•proactive engagement with client occupiers to promote
low carbon solutions to material emissions sources (A)
•maintain a culture of innovation, including identifying
emerging technologies and trial/pilot opportunities (C)
ReputationReputational risks refer to the perception of an organisation's "social
license to operate" and can affect supplier prices, employee costs,
consumer demand, and shareholder value when transitioning to a low-
carbon and climate resilient economy. In the real estate sector, these
risks include the potential for negative public perception due to factors
such as poor environmental performance, failure to meet sustainability
targets, inadequate climate resilience measures, association with
developments that harm local communities or ecosystems, delivering
new builds rather than retrofitting or reusing existing buildings, as
well as not managing and responding effectively to negative publicity.
Litigation claims can also arise as a result of perceived action or
inaction related to greenwashing and / or greenhushing (withholding
or downplaying environmental achievements).
Orderly
Disorderly
Hot house
•shareholders, banks, client occupiers and stakeholders
requiring high cost and high resource intensive third party
reporting for heightened transparency on climate-related
issues (A)
•greenwashing threats against individual projects or business
specific activities based on voluntary public statements and
disclosure-based litigation leading to reduced trust and
market appeal (A)
•key stakeholders may apply pressure if Precinct is perceived
as not moving quickly enough to decarbonise or address
environmental concerns resulting in potential impacts on
revenue, increased capital expenditure, and challenges
accessing capital (A)
•participate in locally, nationally and globally endorsed
ESG related programmes and reporting with third party
verification (C)
•target minimum third party certified Green Building ratings
in design, construction and operation (C)
•engage in key stakeholder briefings and schedule regular
feedback sessions on progress related to climate-related
disclosures (A)
•continuing to lead in this space to increase people's
perception of Precinct as a "green" real-estate provider (A)
Precinct Properties Group22

Transition Risks
RiskDescriptionShortMediumLong
Description of Current and Anticipated impacts on Precinct
C = Current Impacts / A = Anticipated Impacts
Precinct's mitigation and actions
C = Current Actions / A = Anticipated or planned actions
MarketMarket risks involve the effects of transitioning to a low-carbon and
climate resilient economy, impacting both the supply and demand
for various products and services considering consumer and investor
preferences. In the real estate sector, these risks include a growing
preference for green buildings by current and future occupiers and
investors. As these groups increasingly favour decarbonised assets
this risks leaving 'brown' assets stranded and devalued. There is
also the risk of increasing capital needed to develop new assets
through the increased cost of raw/virgin materials and competition for
Tier 1 contractors that can achieve the required performance during
construction especially as rating tools become more common place.
This in turn may apply pressure on the capacity and capability of
the labour force to meet expectations of performance both in asset
development and operation. Businesses occupying space in our assets
are also subject to screening by the market to check if their products
and services are meeting market expectations. Additionally, the industry
will experience a rising cost of utility prices and insurance premiums.
Orderly
Disorderly
Hot house
•change in client occupier preferences for sustainable and low
carbon buildings to occupy (C)
•change in general public preferences for trading with
businesses without sustainability credentials occupying our
spaces resulting in higher vacancy rates for the Portfolio (A)
•change in investor appetite to invest in alternative low carbon
industries in place of the property sector (A)
•decline in values for high carbon intensive buildings and those
with low resource efficiency ratings (A)
•increased costs to secure Tier-1 Contractors who are suited to
Green Star build projects (A)
•higher operating costs (e.g. utilities) increase resulting in client
occupiers unable to afford to lease space (A)
•target minimum third party certified Green Building ratings
in design, construction and operation (C)
•participate in globally endorsed real estate frameworks
that provide transparency on ESG performance (C)
•employ the use of industry benchmarks for energy
efficiency (C)
•pursue green finance products (C)
•maintain good relations with a suite of Tier-1
Contractors (C)
•continue to lead in low-carbon material procurement, for
their top embodied carbon materials. Continued early
engagement with their supply chain will allow Precinct to
stay ahead in their understanding of low-carbon material
availability and encouraging the wider industry to use
them. Longer term use of low-carbon material is likely to
drive down price. (C)
•enrol buildings in bespoke analytics platform to drive
improvements over time (A)
•engage with client occupiers in pursuing capital
improvements to existing facilities (A)
TechnologyTechnology risks arise from innovations that are driven or influenced by
the transition to a low-carbon and climate resilient domestic and global
economy. This transition may have impacts; financial and functional,
to physical assets in the real estate sector through increased demand
for air conditioning systems, energy and electrical source diversification
and disruption especially as the broader network shifts away from
fossil fuel to all-electric systems. These may require system or building
upgrades to maintain or increase service and capacity. Failure to deliver
these upgrades risk the impairment or obsolescence of the asset.
Further, these upgrades can result in competition for space reducing
building area available or floor heights. In addition, this transition may
have an impact on soft assets in the real estate sector including
the adoption and maintenance of new systems; including artificial
intelligence integration into building management systems, as well as
the capacity and capability of personnel to develop and manage these
new systems.
Orderly
Disorderly
Hot house
•significant investment in upgrading technology for low carbon
building systems, insulation, renewable energy and electric
vehicle charging station infrastructure impacting high out of
cycle capital expenditure (CAPEX) (C)
•site based electricity, spatial and structural capacity limits
impacting the ability for existing buildings to switch from dual
gas and electric supply to full electrification (C)
•higher number of stranded buildings where the costs to
upgrade exceed feasibility during the development of a
business case (A)
•grid instability and network outages from transitioning or
stressed energy sources (A)
•develop assets in heavily-populated CBD locations where
energy resilience and service recovery is prioritised (C)
•design in low carbon technology solutions upfront during
development (C)
•pre-plan building upgrades to tie into the natural end of
lifecycle for equipment (C)
•strengthen onsite resilience with appropriate and robust
back up energy solutions to shift peak demand (A)
•leverage green finance options and alternative commercial
models to spread high CAPEX spend over a longer term for
equipment requirements (A)
•proactive engagement with client occupiers to promote
low carbon solutions to material emissions sources (A)
•maintain a culture of innovation, including identifying
emerging technologies and trial/pilot opportunities (C)
ReputationReputational risks refer to the perception of an organisation's "social
license to operate" and can affect supplier prices, employee costs,
consumer demand, and shareholder value when transitioning to a low-
carbon and climate resilient economy. In the real estate sector, these
risks include the potential for negative public perception due to factors
such as poor environmental performance, failure to meet sustainability
targets, inadequate climate resilience measures, association with
developments that harm local communities or ecosystems, delivering
new builds rather than retrofitting or reusing existing buildings, as
well as not managing and responding effectively to negative publicity.
Litigation claims can also arise as a result of perceived action or
inaction related to greenwashing and / or greenhushing (withholding
or downplaying environmental achievements).
Orderly
Disorderly
Hot house
•shareholders, banks, client occupiers and stakeholders
requiring high cost and high resource intensive third party
reporting for heightened transparency on climate-related
issues (A)
•greenwashing threats against individual projects or business
specific activities based on voluntary public statements and
disclosure-based litigation leading to reduced trust and
market appeal (A)
•key stakeholders may apply pressure if Precinct is perceived
as not moving quickly enough to decarbonise or address
environmental concerns resulting in potential impacts on
revenue, increased capital expenditure, and challenges
accessing capital (A)
•participate in locally, nationally and globally endorsed
ESG related programmes and reporting with third party
verification (C)
•target minimum third party certified Green Building ratings
in design, construction and operation (C)
•engage in key stakeholder briefings and schedule regular
feedback sessions on progress related to climate-related
disclosures (A)
•continuing to lead in this space to increase people's
perception of Precinct as a "green" real-estate provider (A)
Climate Related Disclosures23
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory

Strategy
Transition Risks (continued)
RiskDescriptionShortMediumLong
Description of Current and Anticipated impacts on Precinct
C = Current Impacts / A = Anticipated Impacts
Precinct's mitigation and actions
C = Current Actions / A = Anticipated or planned actions
Carbon
Price
The transition risk of carbon pricing refers to the economic,
financial, and operational risks that businesses face as
governments, influential stakeholders and regulatory bodies
implement policies to reduce greenhouse gas (GHG) emissions.
Carbon pricing is a policy-driven economic tool for directly costing
GHG emissions. When transitioning to a low carbon economy,
carbon pricing makes carbon-intensive activities less financially
attractive and incentivises low-emissions practices and behaviour.
In the real estate sector, these risks include increased operating
costs due to higher energy prices, the potential for reduced
profitability if carbon-intensive building materials or processes
are penalised, and the need for costly retrofitting or upgrades
to meet emissions reduction targets. The transition can further
be complicated by unpredictable costs due to variations in
climate change trajectories as well as the potential for financial
comparisons between the costs of offsets and the cost to upgrade
plant or building assets
Orderly
Disorderly
Hot house
•increase to the cost of building materials and products
subject to carbon pricing mechanisms locally or
internationally (A)
•increase in reporting obligations for businesses in high
carbon intensity industries including property in future (A)
•increase in development cost due to carbon offset
commitments (A)
•risk of scrutiny on the selection and source of voluntary
carbon offset units in relation to the Precinct portfolio (A)
•pursue bulk purchase of high quality offset units (C)
•pursue minimum Green Star credits related to operational
and embodied carbon reduction and measurement (C)
•introduce environmental management practices that focus
on reducing carbon across operational assets (C)
•continue to lead in the low-carbon building space with
the aim of increasing low-carbon material use and
subsequently reducing their cost in the long-term (A)
•investigate local offset projects to support in partnership
with existing peers and key stakeholders (A)
•prioritise and develop long term engagement with suppliers
of low carbon building materials and products (A)
•develop a carbon-price prediction model for Precinct to
inform business planning (A)
•actively promote carbon reduction importance and
initiatives to clients to increase their understanding and
ability to reduce climate change impacts (e.g. promoting
induction cooking, reduction of natural gas) (A)
RegulationRegulatory risks stem from current, emerging and anticipated
climate-related regulations, including local and national directives
affecting individual properties, as well as the impact of mandatory
climate and nature-based reporting requirements. This includes
anticipated changes to climate-related regulations in New Zealand
and globally that could significantly influence the property industry.
This also includes potential requirements for the use of low-carbon
materials resulting in their scarcity as well as further restrictions
on refrigerants and potential impacts on insurance. In addition,
there is an increased risk of scrutiny over greenwashing in climate
disclosures, as stakeholders demand greater transparency and
accuracy in reporting sustainability efforts, leading to potential
compliance challenges.
Orderly
Disorderly
Hot house
•Reporting obligations: Increasing requirements (e.g., NZ CS
1, 2 & 3, CRD/XRB, NZX, GRI) demand greater transparency,
especially around climate change costs, adding complexity
to compliance and long-term planning (C)
•Local regulations: Auckland Unitary Plan and Wellington
District Plan dictate development locations and identify
land vulnerable to natural hazards (C)
•National regulations: Resource Management Act (RMA)
and Building Act 2004 (Building Code) shape development,
with amendments potentially affecting project feasibility
and timelines (C)
•mandatory public reporting (as opposed to non-public
Green Star reporting) of Embodied and Operational
carbon impacts of projects prior to construction and at
completion (A)
•a carbon border adjustment charge could be imposed
and applied to imported building materials (which are not
currently subject to the ETS) (A)
•the ETS costs for domestically produced emissions intensive
building materials (such as steel and concrete) could
be increased due to a pull back in ETS free allocations
currently made available to those producers, resulting in an
increase in prices (A)
•current ETS scope applies to a limited group of large
emitters. Potential expansion of ETS could bring more
companies, including ours, under its scope, increasing
compliance costs and operational adjustments. (A)
•
include key regulation and reporting obligations in Precinct's
risk register (C)
•achieve third-party audit of all carbon assessments for new
buildings, such that if they were required to be made public,
they would be ready for release (C)
•engage with industry and participate in consultation with
regard to current and anticipated regulation (C)
•schedule asset upgrades to tie in with natural end of
lifecycle for equipment ahead of any mandatory low carbon
upgrades (C)
•leverage green finance options to spread high CAPEX spend
over a longer term for equipment requirements (A)
•explore alternative commercial models to support a higher
investment in upgrading technology (A)
Precinct Properties Group
24

Transition Risks (continued)
RiskDescriptionShortMediumLong
Description of Current and Anticipated impacts on Precinct
C = Current Impacts / A = Anticipated Impacts
Precinct's mitigation and actions
C = Current Actions / A = Anticipated or planned actions
Carbon
Price
The transition risk of carbon pricing refers to the economic,
financial, and operational risks that businesses face as
governments, influential stakeholders and regulatory bodies
implement policies to reduce greenhouse gas (GHG) emissions.
Carbon pricing is a policy-driven economic tool for directly costing
GHG emissions. When transitioning to a low carbon economy,
carbon pricing makes carbon-intensive activities less financially
attractive and incentivises low-emissions practices and behaviour.
In the real estate sector, these risks include increased operating
costs due to higher energy prices, the potential for reduced
profitability if carbon-intensive building materials or processes
are penalised, and the need for costly retrofitting or upgrades
to meet emissions reduction targets. The transition can further
be complicated by unpredictable costs due to variations in
climate change trajectories as well as the potential for financial
comparisons between the costs of offsets and the cost to upgrade
plant or building assets
Orderly
Disorderly
Hot house
•increase to the cost of building materials and products
subject to carbon pricing mechanisms locally or
internationally (A)
•increase in reporting obligations for businesses in high
carbon intensity industries including property in future (A)
•increase in development cost due to carbon offset
commitments (A)
•risk of scrutiny on the selection and source of voluntary
carbon offset units in relation to the Precinct portfolio (A)
•pursue bulk purchase of high quality offset units (C)
•pursue minimum Green Star credits related to operational
and embodied carbon reduction and measurement (C)
•introduce environmental management practices that focus
on reducing carbon across operational assets (C)
•continue to lead in the low-carbon building space with
the aim of increasing low-carbon material use and
subsequently reducing their cost in the long-term (A)
•investigate local offset projects to support in partnership
with existing peers and key stakeholders (A)
•prioritise and develop long term engagement with suppliers
of low carbon building materials and products (A)
•develop a carbon-price prediction model for Precinct to
inform business planning (A)
•actively promote carbon reduction importance and
initiatives to clients to increase their understanding and
ability to reduce climate change impacts (e.g. promoting
induction cooking, reduction of natural gas) (A)
RegulationRegulatory risks stem from current, emerging and anticipated
climate-related regulations, including local and national directives
affecting individual properties, as well as the impact of mandatory
climate and nature-based reporting requirements. This includes
anticipated changes to climate-related regulations in New Zealand
and globally that could significantly influence the property industry.
This also includes potential requirements for the use of low-carbon
materials resulting in their scarcity as well as further restrictions
on refrigerants and potential impacts on insurance. In addition,
there is an increased risk of scrutiny over greenwashing in climate
disclosures, as stakeholders demand greater transparency and
accuracy in reporting sustainability efforts, leading to potential
compliance challenges.
Orderly
Disorderly
Hot house
•Reporting obligations: Increasing requirements (e.g., NZ CS
1, 2 & 3, CRD/XRB, NZX, GRI) demand greater transparency,
especially around climate change costs, adding complexity
to compliance and long-term planning (C)
•Local regulations: Auckland Unitary Plan and Wellington
District Plan dictate development locations and identify
land vulnerable to natural hazards (C)
•National regulations: Resource Management Act (RMA)
and Building Act 2004 (Building Code) shape development,
with amendments potentially affecting project feasibility
and timelines (C)
•mandatory public reporting (as opposed to non-public
Green Star reporting) of Embodied and Operational
carbon impacts of projects prior to construction and at
completion (A)
•a carbon border adjustment charge could be imposed
and applied to imported building materials (which are not
currently subject to the ETS) (A)
•the ETS costs for domestically produced emissions intensive
building materials (such as steel and concrete) could
be increased due to a pull back in ETS free allocations
currently made available to those producers, resulting in an
increase in prices (A)
•current ETS scope applies to a limited group of large
emitters. Potential expansion of ETS could bring more
companies, including ours, under its scope, increasing
compliance costs and operational adjustments. (A)
•
include key regulation and reporting obligations in Precinct's
risk register (C)
•achieve third-party audit of all carbon assessments for new
buildings, such that if they were required to be made public,
they would be ready for release (C)
•engage with industry and participate in consultation with
regard to current and anticipated regulation (C)
•schedule asset upgrades to tie in with natural end of
lifecycle for equipment ahead of any mandatory low carbon
upgrades (C)
•leverage green finance options to spread high CAPEX spend
over a longer term for equipment requirements (A)
•explore alternative commercial models to support a higher
investment in upgrading technology (A)
Climate Related Disclosures
25
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory

Strategy
Physical Climate Risks
RiskDescriptionShortMediumLongDescription of Current and Anticipated impacts on Precinct
C = Current Impacts / A = Anticipated Impacts
Precinct's mitigation and actions
C = Current Actions / A = Anticipated or planned actions
Temperature
Extremes
Extreme heat refers to chronic prolonged periods of high temperatures
that surpass historical norms, presenting significant risks to both the
built environment and natural systems. In the real estate sector,
these risks include increased energy demand for cooling, higher
operational and maintenance costs, accelerated wear and tear on
building materials, reduced occupant comfort, and potential health
risks for client occupiers and employees. Extreme heat can also lead
to decreased property values in affected areas and disruptions to
construction timelines.
Orderly
Disorderly
Hot house
•recurring public transport network disruptions (e.g. train
cancellations) through extreme heat resulting in reduced
mobility to city centres impacting foot traffic in retail centres
and smaller office footprint for employees working from
home (A)
•existing building systems unable to cope with cooling load
and require out of cycle CAPEX costs / disruption to service (A)
•clients and public general loss of productivity (A)
•green space unable to survive conditions require out of cycle
CAPEX costs to replace (A)
•sizing building system equipment to accommodate
future projected temperature increases in development
and refurbishment projects (C)
•designing connected thoroughfares between buildings
to provide shelter during extreme heat days (C)
•prioritising drought tolerant / hardy native plant species
for outdoor vegetation (C)
CycloneCyclone acute risk refers to the increasing frequency, intensity, and
unpredictability of tropical cyclones that pose significant threats to
human life, infrastructure, economies, and ecosystems, especially in
coastal regions. In the real estate sector, cyclones can result in severe
physical damage to buildings, causing extensive repair costs and
heightened insurance premiums. Cyclone-related disruptions can delay
construction projects, reduce tenant demand in high-risk areas, and
increase operational costs due to the need for frequent maintenance
and infrastructure upgrades to meet new resilience standards.
Orderly
Disorderly
Hot house
•destruction of buildings including homes and businesses
resulting in financial loss from property damage and
decreasing asset values, tenant displacement loss of
revenue (A)
•retailers unable to source good quality fresh produce
resulting in increased costs for client occupiers to retain their
businesses (A)
•interruption to utility supply and transportation leading to
disruptions in business operations, increase in operational
costs and transport delays (A)
•construction and refurbishment activities impacted through
supply chain disruptions leading to higher costs to complete
projects (A)
•cyclone risk screening for assets to determine building
elements vulnerable to cyclone impacts (C)
•back up power generation action plans if / when power
supply is disrupted (A)
•implementation of client occupier engagement
for preparation around storm events including
recommended transport options (A)
•designing resilience in to development programmes to
withstand storm events (A)
Pluvial
flooding
Pluvial risk refers to the acute threat of surface flooding caused
by intense, short-duration rainfall that overwhelms drainage systems,
independent of rivers or other bodies of water leading to localised
flooding impacting the built environment. For the real estate sector,
this presents the risk of water damage to buildings, particularly in
basements or lower floors, and increased wear on infrastructure. Pluvial
flooding can disrupt access to properties, increase maintenance costs,
and require costly upgrades to drainage and flood barrier systems.
Orderly
Disorderly
Hot house
•damage to infrastructure leading to accessibility issues,
higher maintenance and repair costs and a decline in
property values (A)
•interruption to utility supply and transportation leading to
disruptions in business operations, increase in operational
costs and transport delays (A)
•flooding of construction and refurbishment sites leading
to project delays, increased costs for delivery, contractual
penalties and reputational damage (A)
•increasing insurance costs for areas with repeated impacts
resulting in higher operating costs, difficulty in securing
insurance and decreased property values (A)
•pluvial risk screening for assets to determine vulnerable
access points for acute flooding (C)
•implementation of flood barriers for at risk sites (A)
•implementation of client occupier engagement for
preparation around storm events (A)
•designing resilience into development programmes to
remedy pluvial flooding when it occurs (A)
Coastal
Inundation
Coastal inundation risk refers to the acute threat of flooding along
coastlines due to a combination of rising sea levels, storm surges, and
extreme weather events, exacerbated by climate change. This poses
significant risks to the built environment, infrastructure, ecosystems, and
economies, particularly in low-lying coastal areas. For real estate this
can result in chronic flooding, land erosion, and permanent loss of
property, leading to significant financial losses.
Orderly
Disorderly
Hot house
•contamination to water supply through drainage and sewer
issues leading to health and safety concerns, reputational
damage, legal liability compliance and operational costs for
the public interacting with properties (A)
•reduced visitor numbers to retail and hospitality businesses
resulting in decreased revenue for client occupiers, longer-
term vacancy challenges and reduced property values (A)
•impacts to vulnerable communities leading to a reduction
in economic activity and displacement of regular occupants
and visitors to the city centre (A)
•site acquisition screening to ensure full impacts of future
scenarios understood (C)
•implementation of climate adaptation planning for new
(C) and existing (A) assets to highlight and manage
critical coastal inundation risks
•early stage planning around flood barriers and physical
resilience measures across affected properties (A)
Precinct Properties Group26

Physical Climate Risks
RiskDescriptionShortMediumLongDescription of Current and Anticipated impacts on Precinct
C = Current Impacts / A = Anticipated Impacts
Precinct's mitigation and actions
C = Current Actions / A = Anticipated or planned actions
Temperature
Extremes
Extreme heat refers to chronic prolonged periods of high temperatures
that surpass historical norms, presenting significant risks to both the
built environment and natural systems. In the real estate sector,
these risks include increased energy demand for cooling, higher
operational and maintenance costs, accelerated wear and tear on
building materials, reduced occupant comfort, and potential health
risks for client occupiers and employees. Extreme heat can also lead
to decreased property values in affected areas and disruptions to
construction timelines.
Orderly
Disorderly
Hot house
•recurring public transport network disruptions (e.g. train
cancellations) through extreme heat resulting in reduced
mobility to city centres impacting foot traffic in retail centres
and smaller office footprint for employees working from
home (A)
•existing building systems unable to cope with cooling load
and require out of cycle CAPEX costs / disruption to service (A)
•clients and public general loss of productivity (A)
•green space unable to survive conditions require out of cycle
CAPEX costs to replace (A)
•sizing building system equipment to accommodate
future projected temperature increases in development
and refurbishment projects (C)
•designing connected thoroughfares between buildings
to provide shelter during extreme heat days (C)
•prioritising drought tolerant / hardy native plant species
for outdoor vegetation (C)
CycloneCyclone acute risk refers to the increasing frequency, intensity, and
unpredictability of tropical cyclones that pose significant threats to
human life, infrastructure, economies, and ecosystems, especially in
coastal regions. In the real estate sector, cyclones can result in severe
physical damage to buildings, causing extensive repair costs and
heightened insurance premiums. Cyclone-related disruptions can delay
construction projects, reduce tenant demand in high-risk areas, and
increase operational costs due to the need for frequent maintenance
and infrastructure upgrades to meet new resilience standards.
Orderly
Disorderly
Hot house
•destruction of buildings including homes and businesses
resulting in financial loss from property damage and
decreasing asset values, tenant displacement loss of
revenue (A)
•retailers unable to source good quality fresh produce
resulting in increased costs for client occupiers to retain their
businesses (A)
•interruption to utility supply and transportation leading to
disruptions in business operations, increase in operational
costs and transport delays (A)
•construction and refurbishment activities impacted through
supply chain disruptions leading to higher costs to complete
projects (A)
•cyclone risk screening for assets to determine building
elements vulnerable to cyclone impacts (C)
•back up power generation action plans if / when power
supply is disrupted (A)
•implementation of client occupier engagement
for preparation around storm events including
recommended transport options (A)
•designing resilience in to development programmes to
withstand storm events (A)
Pluvial
flooding
Pluvial risk refers to the acute threat of surface flooding caused
by intense, short-duration rainfall that overwhelms drainage systems,
independent of rivers or other bodies of water leading to localised
flooding impacting the built environment. For the real estate sector,
this presents the risk of water damage to buildings, particularly in
basements or lower floors, and increased wear on infrastructure. Pluvial
flooding can disrupt access to properties, increase maintenance costs,
and require costly upgrades to drainage and flood barrier systems.
Orderly
Disorderly
Hot house
•damage to infrastructure leading to accessibility issues,
higher maintenance and repair costs and a decline in
property values (A)
•interruption to utility supply and transportation leading to
disruptions in business operations, increase in operational
costs and transport delays (A)
•flooding of construction and refurbishment sites leading
to project delays, increased costs for delivery, contractual
penalties and reputational damage (A)
•increasing insurance costs for areas with repeated impacts
resulting in higher operating costs, difficulty in securing
insurance and decreased property values (A)
•pluvial risk screening for assets to determine vulnerable
access points for acute flooding (C)
•implementation of flood barriers for at risk sites (A)
•implementation of client occupier engagement for
preparation around storm events (A)
•designing resilience into development programmes to
remedy pluvial flooding when it occurs (A)
Coastal
Inundation
Coastal inundation risk refers to the acute threat of flooding along
coastlines due to a combination of rising sea levels, storm surges, and
extreme weather events, exacerbated by climate change. This poses
significant risks to the built environment, infrastructure, ecosystems, and
economies, particularly in low-lying coastal areas. For real estate this
can result in chronic flooding, land erosion, and permanent loss of
property, leading to significant financial losses.
Orderly
Disorderly
Hot house
•contamination to water supply through drainage and sewer
issues leading to health and safety concerns, reputational
damage, legal liability compliance and operational costs for
the public interacting with properties (A)
•reduced visitor numbers to retail and hospitality businesses
resulting in decreased revenue for client occupiers, longer-
term vacancy challenges and reduced property values (A)
•impacts to vulnerable communities leading to a reduction
in economic activity and displacement of regular occupants
and visitors to the city centre (A)
•site acquisition screening to ensure full impacts of future
scenarios understood (C)
•implementation of climate adaptation planning for new
(C) and existing (A) assets to highlight and manage
critical coastal inundation risks
•early stage planning around flood barriers and physical
resilience measures across affected properties (A)
Climate Related Disclosures27
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory

Strategy
Climate Opportunities
OpportunityDescriptionShortMediumLongDescription of Current and Anticipated Opportunity for Precinct
C = Current Opportunity / A = Anticipated Opportunity
Precinct's mitigation and actions
C = Current Actions / A = Anticipated or planned actions
Transition -
Market
Recognising the evolving priorities and investment profiles of key
stakeholders, Precinct has identified an opportunity to pursue industry-
leading initiatives that appeal to proactive and sustainability-focused
clients and investors. This approach aims to align with the values
of like-minded partners, enhancing Precinct’s attractiveness and
competitiveness in the market.
Orderly
Disorderly
Hot house
•investor and client occupier comfort in knowing SBTi aligned
organisations have their GHG emissions data peer reviewed
and audited on a regular basis (A)
•investor comfort in knowing annual updates to the Global Real
Estate Sustainability Benchmark (GRESB) survey reflect global
sentiment related to ESG and responsible management of real
estate assets and funds (A)
•clear and targeted emissions reduction and ESG parameters
using a sector specific framework for the real estate
industry (A)
•retrofitting and reuse of existing buildings to reduce the
need for, and carbon associated with, constructing new
buildings (A)
•voluntarily pursue minimum Green Building Ratings and
net carbon zero certification to meet and exceed market
expectations for climate performance and verification (C)
•continue to partake in sustainable finance opportunities
including Green Loans and Bonds (C)
•measure and offset embodied carbon for all new
developments in line with the Net Zero Buildings
Commitment, acknowledging its significant impact on our
carbon emissions inventory (C)
•retain formal Net Zero targets with the World Green
Building Council (WGBC) Net Zero Buildings Commitment
and prepare to formalise targets with the Science-Based
Targets initiative (SBTi) (C)
•report against the GRESB survey to align with peer and
investor expectations for climate risk reporting (C)
Transition -
Technology
Precinct has identified a key transition technology opportunity by
developing energy-efficient, low-carbon assets. This shift not only
reduces carbon emissions but also aligns with future energy trends,
positioning Precinct to meet the growing demand for sustainable and
resilient properties.
Orderly
Disorderly
Hot house
•ability to engage in and leverage sustainable finance
options (C)
•ability to identify and successfully deliver adaptive re-use /
retrofitting building projects for significantly less upfront
embodied emissions than demolition and new build (C)
•reduce operational emissions significantly through the
reduction of natural gas systems and usage (A)
•attract changing investor and client occupier preferences in
their adoption of net zero targets (A)
•feasibility studies for sites using natural gas to convert to
electric (C)
•embed all electric design parameters into new
development projects (C)
•further explore the feasibility of smart-metering / peak
demand management and solar PV (with or without
batteries or EV interface) to reduce grid energy
dependence (A)
•further explore the prevalence of glass facade elements
vs internal heat-gain and related energy/cooling demands.
Optimise this on new developments to reduce associated
upfront and operational carbon emissions (A)
Transition -
Reputation
Potential to procure large quantities of carbon offsets via supporting a
local voluntary carbon project.
Orderly
Disorderly
Hot house
•invest in the local economy to support decarbonisation
projects to the benefit of key stakeholders including JV
partners and Clients wishing to source high quality offsets (A)
•provide a proof of concept for future voluntary carbon
initiatives in Aotearoa New Zealand to ensure economies of
scale to reduce costs over time (A)
•ensure transparency of offset units and a strong chain of
custody to mitigate greenwashing concerns (A)
•establish long-term offset purchase agreements to provide
certainty to the market related to ongoing commitment (A)
•prepare expected unit amounts to procure over a long term
time horizon (C)
•feasibility studies for carbon offset options available in the
voluntary market (A)
•engage with the broader market to understand the
limitations of the current market for long term service
agreements (A)
Physical -
Pluvial
Flooding
As physical climate risks become more impactful across the built
environment, the acquisition of at risk properties for repositioning is
being targeted where mitigation efforts can be undertaken to de-risk
the asset.
Orderly
Disorderly
Hot house
•through our experience in adaptive reuse projects to date,
acquire stranded assets that would be otherwise deemed
unsuitable as a green asset (A)
•proactively support industry in adopting climate mitigation
efforts around design interventions to manage risks (A)
•increase resilience of our Clients and communities in proximity
to our developments through education where there is risk of
pluvial flooding, to ensure risks are understood and managed
collectively (A)
•voluntarily prepare Climate Adaptation Plans at early
design stages for new developments and refurbishment
projects (C)
•maintain annual Climanomics subscription to ensure
proactive assessment of current assets and future
locations for climate-related risks (C)
•conduct in depth site-based physical risk assessments
where critical areas are identified (C)
•commit to sharing Information from these assessments
with project teams to ensure appropriate mitigation
measures are implemented or investment decisions are
reevaluated based on the identified risks (C)
Precinct Properties Group28

Climate Opportunities
OpportunityDescriptionShortMediumLongDescription of Current and Anticipated Opportunity for Precinct
C = Current Opportunity / A = Anticipated Opportunity
Precinct's mitigation and actions
C = Current Actions / A = Anticipated or planned actions
Transition -
Market
Recognising the evolving priorities and investment profiles of key
stakeholders, Precinct has identified an opportunity to pursue industry-
leading initiatives that appeal to proactive and sustainability-focused
clients and investors. This approach aims to align with the values
of like-minded partners, enhancing Precinct’s attractiveness and
competitiveness in the market.
Orderly
Disorderly
Hot house
•investor and client occupier comfort in knowing SBTi aligned
organisations have their GHG emissions data peer reviewed
and audited on a regular basis (A)
•investor comfort in knowing annual updates to the Global Real
Estate Sustainability Benchmark (GRESB) survey reflect global
sentiment related to ESG and responsible management of real
estate assets and funds (A)
•clear and targeted emissions reduction and ESG parameters
using a sector specific framework for the real estate
industry (A)
•retrofitting and reuse of existing buildings to reduce the
need for, and carbon associated with, constructing new
buildings (A)
•voluntarily pursue minimum Green Building Ratings and
net carbon zero certification to meet and exceed market
expectations for climate performance and verification (C)
•continue to partake in sustainable finance opportunities
including Green Loans and Bonds (C)
•measure and offset embodied carbon for all new
developments in line with the Net Zero Buildings
Commitment, acknowledging its significant impact on our
carbon emissions inventory (C)
•retain formal Net Zero targets with the World Green
Building Council (WGBC) Net Zero Buildings Commitment
and prepare to formalise targets with the Science-Based
Targets initiative (SBTi) (C)
•report against the GRESB survey to align with peer and
investor expectations for climate risk reporting (C)
Transition -
Technology
Precinct has identified a key transition technology opportunity by
developing energy-efficient, low-carbon assets. This shift not only
reduces carbon emissions but also aligns with future energy trends,
positioning Precinct to meet the growing demand for sustainable and
resilient properties.
Orderly
Disorderly
Hot house
•ability to engage in and leverage sustainable finance
options (C)
•ability to identify and successfully deliver adaptive re-use /
retrofitting building projects for significantly less upfront
embodied emissions than demolition and new build (C)
•reduce operational emissions significantly through the
reduction of natural gas systems and usage (A)
•attract changing investor and client occupier preferences in
their adoption of net zero targets (A)
•feasibility studies for sites using natural gas to convert to
electric (C)
•embed all electric design parameters into new
development projects (C)
•further explore the feasibility of smart-metering / peak
demand management and solar PV (with or without
batteries or EV interface) to reduce grid energy
dependence (A)
•further explore the prevalence of glass facade elements
vs internal heat-gain and related energy/cooling demands.
Optimise this on new developments to reduce associated
upfront and operational carbon emissions (A)
Transition -
Reputation
Potential to procure large quantities of carbon offsets via supporting a
local voluntary carbon project.
Orderly
Disorderly
Hot house
•invest in the local economy to support decarbonisation
projects to the benefit of key stakeholders including JV
partners and Clients wishing to source high quality offsets (A)
•provide a proof of concept for future voluntary carbon
initiatives in Aotearoa New Zealand to ensure economies of
scale to reduce costs over time (A)
•ensure transparency of offset units and a strong chain of
custody to mitigate greenwashing concerns (A)
•establish long-term offset purchase agreements to provide
certainty to the market related to ongoing commitment (A)
•prepare expected unit amounts to procure over a long term
time horizon (C)
•feasibility studies for carbon offset options available in the
voluntary market (A)
•engage with the broader market to understand the
limitations of the current market for long term service
agreements (A)
Physical -
Pluvial
Flooding
As physical climate risks become more impactful across the built
environment, the acquisition of at risk properties for repositioning is
being targeted where mitigation efforts can be undertaken to de-risk
the asset.
Orderly
Disorderly
Hot house
•through our experience in adaptive reuse projects to date,
acquire stranded assets that would be otherwise deemed
unsuitable as a green asset (A)
•proactively support industry in adopting climate mitigation
efforts around design interventions to manage risks (A)
•increase resilience of our Clients and communities in proximity
to our developments through education where there is risk of
pluvial flooding, to ensure risks are understood and managed
collectively (A)
•voluntarily prepare Climate Adaptation Plans at early
design stages for new developments and refurbishment
projects (C)
•maintain annual Climanomics subscription to ensure
proactive assessment of current assets and future
locations for climate-related risks (C)
•conduct in depth site-based physical risk assessments
where critical areas are identified (C)
•commit to sharing Information from these assessments
with project teams to ensure appropriate mitigation
measures are implemented or investment decisions are
reevaluated based on the identified risks (C)
Climate Related Disclosures29
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory

Strategy
Transition Planning
Precinct continues to make meaningful progress in transition planning, aligned with our strategy to develop, own, and
manage high-quality, sustainable, and resilient assets. Our time-bound goal of achieving and maintaining Net Zero by 2030
across our operational emissions, consistent with the WGBC’s Net Zero Building Commitment, anchors our pragmatic and
focused approach.
We monitor performance against our targets, metrics, and KPIs via our internal ESG dashboard, and submit datasets to
external parties for validation. Industry feedback plays a key role in shaping our reporting practices and ensuring alignment
with evolving expectations around decarbonisation.
Our transition plan also considers the broader implications of a changing climate across business operations. Through
our findings from the sector-specific scenario analysis, we have continued to assess plausible future climate impacts and
seek to embed mitigation and adaptation strategies to manage risks and capture opportunities. In shaping our future-
focused transition planning, including the alignment of capital deployment, Precinct integrates climate-related risks and
opportunities from Precinct's Climate Risk Register into business case assessments, investment decisions, and funding of
group initiatives.
The following considerations currently inform our approach with committed capital deployment outlined in our KPI's and
Metrics section (see 'Other Climate-related metrics'):
Transition
focus area
Current and anticipated initiatives in
focus area
TimeframeRelevant risk/opportunity
addressed by
Precinct's initiatives
New Development
Projects /
Refurbishments
Build new assets to a 'New Zealand
Excellence level' verified by third party
assessors, specifically:
•Minimum 5 star Green Star and 6 star
Homestar rating, including:
–Minimum of 15% reduction in
upfront embodied carbon (A1–
A5, emissions from raw material
extraction to construction)
against a business as usual
reference case
–No new natural gas connections
–Climate Adaptation Plan to
incorporate design interventions
where high and extreme
risks across modelled scenarios
are identified.
–Modelling energy efficiency
Current actionTransition
Market, Technology, Reputation,
Carbon price
Physical
Temperature extremes,
cyclone, pluvial flooding,
coastal inundation
Existing Buildings•All eligible assets are rated under
Green Star Performance rating and
NABERSNZ Energy (New Zealand energy
efficiency rating).
Current actionTransition
Market, Technology , Reputation,
Carbon price
Physical
Temperature extremes,
cyclone, pluvial flooding,
coastal inundation
Precinct Properties Group30

Transition
focus area
Current and anticipated initiatives in
focus area
TimeframeRelevant risk/opportunity
addressed by
Precinct's initiatives
•Phasing out the use of fossil fuels
across the portfolio. Aligned with
targeted refurbishments / end of
equipment lifecycles
Current - 2050Transition
Market, Technology, Reputation,
Carbon price
•Deploying on-site and off-site renewable
energy solutions where feasible.
Current actionTransition
Technology, Carbon price
•Researching procurement of low carbon
products and services.
Current actionTransition
Market, Technology
•Establishing a waste management
portfolio strategy
Current actionTransition
Market, Technology, Carbon price
Corporate
Strategy
•Form a partnership with nature based
carbon project
Current action -
2030
Transition
Market, Reputation, Carbon Price
The current actions outlined above form a core part of Precinct's publicly stated decarbonisation strategy. These actions
are embedded within the CAPEX plans submitted through Precinct's annual Business Plan, which is formally approved at the
Board level. This integration ensures that transition planning is not only strategic but also operationally embedded, making it
a key consideration in capital deployment and funding decisions.
Climate Related Disclosures
31
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory

Risk
Management
Climate Related Disclosures33
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory

Risk Management
This section describes
Precinct’s processes for
identifying, assessing and
managing climate-related
risks and how this is
integrated into Precinct’s risk
management processes.
Precinct’s processes for identifying,
assessing and managing climate-
related risks are integrated into our
overall risk management process and
recorded in Precinct’s Climate Risk
Register. This process is facilitated by
the Audit and Risk Committee and
overseen by the ESG Committee.
The Committee is guided by the ESG Committee
Charter (available in Precinct's Corporate
Governance Manual on Precinct's website), which
requires the Committee to:
•Review and recommend for Board approval
the ESG strategy, framework and initiatives;
•Oversee the implementation of Precinct’s
Sustainability Policy and practices; and
•Oversee the preparation and review of
climate related risks and opportunities ahead
of incorporating into Precinct's risk register.
(by extension Precinct's Climate Risk Register)
Identifying Risks
The ARC is tasked with reviewing Precinct’s risk register,
together with the separate dedicated Climate Risk
Register, which captures identified climate-related risks
that may impact Precinct, at least quarterly. There is a
standing reference to 'Climate related risks & disclosure'
in Precinct's risk register that refers the ARC to the
standalone Climate Risk Register for further detail.
New risks for inclusion in Precinct's Climate Risk Register
may be identified by the ESG sub-committees, ESG
Committee, senior and executive management, or other
staff at Precinct. These potential new risks are submitted
to the ARC for evaluation. The process of identifying
risks, as well as assessing their scope, size, and impact,
uses information from several external sources (as
relevant), including:
•GRESB Climate Risk & Resilience Scorecard, which
provides location-specific intelligence on climate
change and environmental exposure.
•S&P Global Climanomics, a climate risk analytics
platform to identify and measure climate risk across
Precinct’s assets.
•Guidance and commentary from industry
organisations including the NZGBC.
•Discussions with stakeholders along the value chain,
including suppliers, client occupiers, contractors, and
councils (local government).
•Engagement with external engineering and
sustainability consultants, including in the
preparation of:
–Climate Adaptation Plans
during development;
–Climate risk screening undertaken as part of
due diligence reporting for acquisitions; and
–Portfolio-wide climate risk modelling and site-
based visits.
Climate change is a unique risk category in particular
because no part of the value chain is immune from
its impacts. However, some parts are more vulnerable
than others. A key workstream for Precinct has been to
continue to refine the boundaries of our value chain for
the purpose of climate risk analysis and identify areas or
relationships of vulnerability. In FY25, to the best of our
knowledge, no parts of our value chain were excluded for
the purpose of our risk assessment.
Precinct Properties Group
34

Assessing & Managing Risks
Precinct assesses and manages climate-related risks as part of its broader risk management framework.
Once potential risks are identified, we carry out a threshold materiality assessment to identify those risks that will be added
to Precinct’s risk register and Climate Risk Register. When evaluating materiality thresholds for reporting, we consider the
impact, time horizon, likelihood, and nature of the risk, including whether the risk is physical or transitional. Only those risks
that are added to our registers are disclosed in this CRD.
Risks that are added to our risk registers are then assigned a materiality rating (low/medium/high/very high) using
Precinct’s risk management framework, consistent with the assessment approach disclosed in
Climate-Related Impacts
on Page 21. Materiality ratings are determined using both quantitative and qualitative analysis, including internal modelling,
external data, and expert advice. The same process informs both Precinct's Climate Risk Register and the disclosures in
this statement.
Climate-related risks are reviewed tri-annually by the ESG Committee and quarterly by the ARC, which supports Board
oversight. Higher rated risks (rated medium or higher) are considered in more detail by the Board, ESG Committee, and ARC.
Risks deemed ‘actual’ are included in Precinct’s Climate Risk Register for ongoing evaluation by the Board. All of these risks
are disclosed in this statement.
These assessments are informed by both quantitative and qualitative analysis, including internal modelling using bespoke
software and local datasets, and, where appropriate, advice from external specialists, per below:
Risk TypeAssessment & ApplicationTools and / or external consultants involved
Physical
Assessed at the individual asset level
and aggregated to determine impact at
the portfolio level for Precinct's Climate
Risk Register.
1
•Climanomics (materiality),
•AON (granular review),
•Internal Analytics/Sustainability team (aggregation,
Climate Risk Register updates)
Transitional
Assessed at the individual asset level
and aggregated to determine impact at
the portfolio level for Precinct's Climate
Risk Register
1
•Climanomics (materiality),
•Mott MacDonald (granular review),
•Internal Analytics/Sustainability team (aggregation,
Climate Risk Register updates)
1Although climate-related risks are contained within Precinct's Climate Risk Register, these risks are prioritised using the same process as
other key business risks in Precinct's risk register. There are no separate processes for prioritising climate-related risks compared to other key
business risks.
Precinct continues to refine its approach by:
•Reviewing thresholds for elevating potential risks to actual risks;
•Enhancing processes for assessing financial and operational impacts;
•Aligning time horizons with industry best practice advice (e.g. NZGBC Construction and Property Sector
Climate Scenarios);
•Further integrating climate considerations into our general risk framework.
Recognising the inherent uncertainty in climate risk assessments, Precinct monitors emerging tools and methodologies to
improve understanding of risk scope, timing, and impact.
Climate risks, both physical and transitional, are prioritised alongside other key business risks. They are actively integrated
into acquisition, capital deployment and funding decisions, particularly those outlined in the Transition Plan. In addition,
Board papers, scenario analysis and insights from Precinct's Climate Risk Register inform targeted CAPEX across new
developments
1
and existing assets.
1
As well as the approach described above, for new development projects, Precinct also conducts granular, site-specific Climate Adaptation
Plans through third-party engineering and consulting teams, in line with NZGBC climate adaptation credit criteria, to identify and assess
bespoke climate-related risks. These findings are embedded within the risk management tracking for each individual development project.
Climate Related Disclosures35
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory

Our approach to reviewing climate-related risks
The following process outlines Precinct’s approach to conducting annual reviews of climate-related risks. This involves both
qualitative and quantitative analyses to enable a comprehensive understanding and appropriate revision of the risks across
plausible scenarios relevant to Precinct’s operations. As part of this review, we assess current climate-related risks and
consider recommendations to mitigate and adapt to anticipated risks.
ProcessDescription
Review risks of climate change
in line with the Intergovernmental
Panel on Climate Change (IPCC)
reporting framework
Physical risks
1
: Pluvial Flooding, Temperature Extremes, Coastal inundation
(including sea-level rise), Drought, Wildfire, Tropical Cyclone, Water Stress and
Fluvial Flooding
Transition risks: Carbon Pricing, Litigation / Regulation, Technology, Reputation
and Market
Physical and Transition Risk
Time Horizon
Short Term: present – 2030
Medium Term: 2031 - 2050
Long Term: 2051 - 2100
Asset Value Determination
Based on individual asset lifecycle:
•≤ 60 years: Property value
•> 60 years: Land value
Note: Committed developments are assessed on the basis of estimated value on
completion. Residential developments are excluded on the basis that they are
developed for sale and will not be owned long-term.
Precinct’s portfolio
assessment methodology
S&P Global Climanomics and GRESB reporting to assess specific risks across
Precinct’s portfolio against industry specific benchmark (NZGBC’s Climate
Scenarios for the Construction and Property Sector released in 2023).
Where significant risks are identified as
'high' or 'extreme'
If risks indicate a 'high' or 'extreme' value loss according to Precinct's internal
materiality assessment, further granular investigation is undertaken against the
risk. This activity serves to more accurately quantify potential costs and impact.
An example of this for the FY25 reporting period, Precinct engaged with external
specialists, engineering consultants, Mott MacDonald to review the draft FY25
transition risk assessment which included a focus group, workshops and industry
research of transition risk and opportunities across Precinct’s portfolio specific to
New Zealand. Where appropriate, the outcome of this review is integrated into the
transition risks section of our climate impacts table.
Quantify physical and transitional
risks identified
Further assessment and modelling is undertaken to quantify potential costs
and impact.
As above, Precinct completed a risk assessment in FY25 which reviewed the risk
severity arising from Transition impacts.
Precinct is continuing to refine the quantification of risks as we work towards
disclosures for FY26.
Mitigate and adapt to future risks
through transition planning
Integrate key actions identified from material risks into Precinct's core
business strategy.
1Note, we have disclosed only the material impacts to our assets. As such, only the physical risks of Pluvial Flooding, Temperature Extremes,
Coastal Inundation and Tropical Cyclones have been disclosed.
Precinct Properties Group36

Metrics and
Targets
Climate Related Disclosures37
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory

Metrics and Targets
Our FY25 Carbon Emissions
Precinct is committed to transparently tracking our emission reduction efforts with a focus of reducing our overall carbon
footprint in line with the GHG Protocol and ISO 14064-1:2018. Below is a snapshot of our carbon emissions across Scope 1
(direct emissions from owned or controlled sources), Scope 2 (indirect emissions from purchased energy), and Scope 3 (other
indirect emissions occurring across our value chain). In addition, we have included a detailed breakdown of these figures
against FY23 and FY24.
Metric tonnes of carbon dioxide equivalent
(t CO
2
-e)
Precinct's GHG emissions Scope and Category
(GHG Protocol)
ISO 14064-1:2018
EquivalentFY25FY24FY23FY17
Scope 1Category 1: Stationary Combustion (Natural Gas)Category 11,6802,3901,5172,488
Category 1: Stationary Combustion (Diesel)Category 11831-
Category 1: Leakage of Refrigerants (Refrigerants)Category 19333-
Scope 2Category 2: Imported Electricity (location-based method)
1
Category 22,0601,3881,3761,808
Category 2: Imported Electricity (market-based method)
1
Category 20140-
Total Scope 1 & 2 Emissions (location-based method)3,7673,7852,927
1Location-based method discloses Scope 2 electricity emissions associated with standard emissions factors. Market-based method reflects the
voluntary purchase of Renewable Energy Certificates (RECs) supplied from Meridian. Market-based method was not an available calculation
method in FY17 therefore the emissions reported for Scope 2 in FY17 are only reported under Location-based method.
Precinct Properties Group38

Our FY25 Carbon Emissions - Continued
Metric tonnes of carbon dioxide equivalent
(t CO
2
-e)
Precinct's GHG emissions Scope and Category
(GHG Protocol)
ISO 14064-1:2018
EquivalentFY25FY24FY23FY17
Scope 3
1
Category 1: Purchased Goods & Services - Potable
Water SupplyCategory 41910710
Category 1: Purchased Goods & Services - Other
2

3
Category 44,5204,156--
Category 2: Embodied Carbon from New Developments
2
Category 429,00612,974--
Category 2: Embodied Carbon - OtherCategory 412---
Category 3: T&D Losses from Electricity & GasCategory 4210193212-
Category 3: Electricity & Gas WTTCategory 4860---
Category 5: Operational WasteCategory 41,598909728-
Category 5: Construction & Demolition Waste
2
Category 4934582--
Category 6: Business TravelCategory 3127179229-
Category 7: Employee CommuteCategory 38496186-
Category 8: Upstream Leased Assets
3
Category 431926313-
Category 11: Use of Sold Products
3
Category 57,209---
Category 12: End-of-Life Treatment of Sold ProductsCategory 5757---
Category 13: Downstream Leased Assets
3
Category 53,7741,8022,410-
Total Scope 1, 2 & 3 Emissions (market- based method)51,13523,5765,3354,306
1Precinct has elected to disclose FY25 Scope 3 emissions in categories where data was previously unavailable or not relevant in FY23 and FY24
(see Category 2: Embodied Carbon - Other, Category 3: Electricity & Gas WTT, Category 11: Use of Sold Products and Category 12: End-of-Life
Treatment of Sold Products). Category 2: Embodied Carbon from New Developments has led to a significant increase in Scope 3 emissions
due to Precinct's development pipeline and construction completion activity during the period. A separate table distinguishing a kg CO
2
-e / m2
metric has been included to demonstrate improvement over a minimum performance baseline.
2Not reported in FY23 based on lack of available datasets.
3Market-based method emissions have been applied and affect the calculation of these categories as well as Scope 2.
Scope 3 - Category 2: Embodied Carbon from New Developments
Below are development projects completed during the period (FY25) by Precinct in Category 2: Embodied Carbon from
New Developments. Each project has been assured by Toitū with A1-A5 emissions offset with high quality offset units to
international standards. Further detail on Precinct's approach to offsets can be found in this section.
For each project, we assess the construction related project emissions against a standardised baseline, as set out in the
table below:
ProjectYear CompletedKg CO2-e / m2
1
Reduction over Baseline
BECA House - new buildFY2593713%
Bowen House - refurbishmentFY2515974%
30 Mahuhu Crescent - refurbishmentFY255895%
1The 95% reduction in embodied carbon for the refurbishment of 30 Mahuhu Crescent is based on the expected average value outlined by
LETI, as referenced in the As Built carbon assessment provided by BECA. This significant reduction reflects the nature of the project being a
refurbishment rather than a new build, which inherently results in lower embodied carbon compared to the baseline benchmark. The BECA
House and Bowen House reduction over baseline benchmark is from a BAU (business as usual) reference case from the Green Star life cycle
assessment. Note: While the above projects' lifecycle assessment emissions data has been audited as part of Precinct's full value chain
emissions reporting to GHG Protocol and ISO 14064-1:2018 standards, BECA House and Bowen House are not yet certified Green Star As Built at
the time of this climate statement.
Climate Related Disclosures39
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory

Metrics and Targets
Commentary of Changes
Scope 3 emissions make up the bulk of Precinct's GHG inventory (93%). Our overall Scope 3 emissions have increased by
134% in FY25 compared to FY24. Approximately 15% of this is attributable to the inclusion of new categories of emissions this
year, however most of the increase is from our Scope 3 Category 2 emissions, reflecting the completion of 3 building projects
in FY25 (detailed above). Our material Scope 1 emissions have decreased significantly, though much of this is the result of
changes to reporting (data reliability increased, and some emissions shifted to Scope 3), Scope 2 has increased by 48.4%
due to an increase in the number of buildings within the investment portfolio and an increase in the emissions intensity of
the grid.
The table below sets out an analysis of trends evident across our FY24 and FY25 emissions, including commentary on any
changes to scope or approach to particular categories and an explanation of significant changes (+/- 30%) in emissions for
categories deemed to be material to Precinct's overall inventory.
Scope (GHG
Protocol)Category (GHG Protocol)
Deviation from
FY24 to FY25
Material to
Precinct's
Inventory
(over 3% of
total
emissions)Explanation
Scope 1
Category 1:
Stationary Combustion
(Natural Gas)
Decrease of
29.7%
Yes, 3.18%
During FY24, Precinct's national gas provider
changed from Vector-on-gas to Genesis. Estimated
bills contributed to fluctuating monthly data
reconciled in 2-3 month increments with actual
reads. During the current period, reporting was
more reliable for the full year under one contract.
In addition, natural gas consumption for the FY24
period was attributed to Scope 1 where it should
have been applied to Scope 3 'Downstream Leased
Assets' for Commercial Bay Retail. This has been
amended for the FY25 inventory.
Scope 1
Category 1: Stationary
Combustion (Diesel)
Increase of
500%
No, 0.03%
Immaterial to Precinct's inventory as 0.03% of
total emissions
Scope 1
Category 1: Leakage of
Refrigerants
(Refrigerants)
Increase of
200%
No, 0.02%
Immaterial to Precinct's inventory as 0.02% of
total emissions
Scope 2
Category 2: Imported
Electricity (location-
based method)
Increase of
48.4%
Yes, 3.90%
Two additional wholly electrified assets became
operational during the reporting period (BECA House
and Bowen House). In addition, during FY25, the
electricity grid factors increased by 38.7% (sourced
from the Ministry for the Environment) due to brown
energy sources contributing to a higher percentage
of electricity generation.
Scope 3
Category 1: Purchased
Goods & Services -
Potable Water Supply
Increase of
90%
No, 0.04%
Immaterial to Precinct's inventory as 0.04% of
total emissions
Scope 3
Category 1: Purchased
Goods & Services
- Other
Increase of
8.9%
Yes, 8.56%
Immaterial as the increase is below the
change threshold.
Precinct Properties Group40

Scope (GHG
Protocol)Category (GHG Protocol)
Deviation from
FY24 to FY25
Material to
Precinct's
Inventory
(over 3% of
total
emissions)Explanation
Scope 3
Category 2: Embodied
Carbon from
New Developments
Increase of
123.6%
Yes, 54.87%
3 buildings (1 x new development, 2 x refurbishments)
completed during the period compared to 2
buildings (1 x new development, 1 x refurbishment)
in FY24. In terms of floor area, this represents an
increase of 63% however other factors, including
scope of the refurbishment activities compared
to new build scope also influence the volume of
upfront carbon. Please see Scope 3 - Category
2: Embodied Carbon from New Developments for
details on emissions intensity (kg CO
2
-e/m
2
) against
industry benchmarks.
Scope 3
Category 2: Embodied
Carbon - Other
New
category
No, 0.02%
An analysis of the embodied carbon of materials
used in the construction of the Auckland CBD Civic
Christmas Tree, first erected in December 2024.
Scope 3
Category 5:
Operational Waste
Increase of
75.8%
Yes, 3.02%
In FY25, the emissions factor for one waste stream
was updated from ‘General Waste’ to ‘Office Waste’
for landfill. This change aligns with industry best
practice and reflects a 287% increase in the
emissions factor applied to the landfill stream. All
other waste streams reported remain unaffected by
this change.
Scope 3
Category 5:
Construction &
Demolition Waste
Increase of
60.5%
No, 1.77%
Immaterial to Precinct's inventory as 1.77% of
total emissions
Scope 3
Category 11: Use of
Sold Products
New
category
Yes, 13.23%
Increased reporting scope to include projected
energy use of 40 and 44 Bowen Street assets sold
during period.
Scope 3
Category 12: End-of-
Life Treatment of
Sold Products
New
category
No, 1.43%
Increased reporting scope to include end-of-life
impacts of 40 and 44 Bowen Street assets sold
during period.
Scope 3
Category 13:
Downstream
Leased Assets
Increase of
103.2%
Yes, 6.93%
Natural gas consumption for the FY24 period was
attributed to Scope 1 where it should have been
applied to Scope 3 'Downstream Leased Assets' for
Commercial Bay Retail. This has been amended for
the FY25 inventory.
Climate Related Disclosures41
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory

Metrics and Targets
Precinct Toitū Net Carbon Zero Certification
Precinct is a Toitū Net Carbon Zero certified organisation. The Toitū climate impact certification is a voluntary programme
that Precinct participates in as part of our commitment to climate action. This climate impact certification programme
requires adherence to a set of standards and rules on an annual basis. In accordance with the certification programme,
Precinct measures (and seeks to reduce) its greenhouse gas (GHG) emissions according to ISO 14064-1: 2018 standards.
Toitū's assurance report was finalised using assurance standard NZ SAE 1: Assurance Engagements over Greenhouse Gas
Emissions Disclosure which can be found in Appendix 3 of this report.
Precinct has been measuring our carbon emissions with Toitū Envirocare across the last 9 years of operational data
(FY17 onwards). Toitū Climate Impact Certification is the only certification in New Zealand that is accredited to certify
to international standards (ISO 14064-1:2018). It offers three certification levels: Carbon Reduce, Net Carbon Zero, and
Climate Positive.
Achieving certification is an annual requirement where an organisation must demonstrate meeting the certification rules.
Certification also provides a credible and independently-verified way to communicate environmental efforts to stakeholders.
Current and prior year statements on Toitū carbon certification can be found here: Toitu member - Precinct Properties New
Zealand Limited.
Consolidation Approach
We utilise the 'operational control' approach (where emissions are included if the organisation has authority over operations)
to consolidating emissions as defined by The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard,
2004 (GHG Protocol). Organisational boundaries were set with reference to the methodology described in the GHG Protocol
and ISO 14064-1:2018 standards.
Excluded Emissions Sources - Scope 3
Precinct have excluded the following Scope 3 Emissions Categories as immaterial or not relevant to business operations
during the reporting period:
•Category 4: Upstream Transportation and Distribution (immaterial);
•Category 9: Downstream Transportation and Distribution (immaterial);
•Category 10: Processing of Sold Products (not relevant);
•Category 14: Franchises (not relevant);
•Category 15: Investments (not relevant).
Source of Emissions Factors and the Global Warming Potential Rates
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
The source of emissions factors used include:
•Ministry for the Environment, 2025. Measuring emissions: A guide for organisations: 2025 detailed guide. (AR5)
•Intergovernmental Panel on Climate Change’s (IPCC’s) Fifth Assessment Report, Global Warming Potential indicator over
a 100-year time horizon (GWP100) (AR5)
•Market Economics Limited, 2023, Consumption Emissions Modelling, report prepared for Auckland Council. (AR5)
•Turner et al., 2015, Greenhouse gas emission factors for recycling of source-segregated waste materials. (AR4)
•One Click, 2025. LCA Generic Construction Database (AR5)
•BRANZ, 2023. CO2NSTRUCT Database (AR5)
•NZGBC, 2023. Green Star Embodied Carbon Calculator Version 1.0 (AR5)
•Department for Energy Security and Net Zero, 2025. Greenhouse gas reporting: conversion factors 2025 (AR5)
•BraveTrace, 2025, Annual Production Year Report 2025. (AR5)
Precinct Properties Group
42

Organisational Boundaries for Emissions Reporting
PPNZ and PPIL are listed companies on the NZX who share the same Board of Directors and whose shares are ‘stapled’
together, meaning they can’t be transferred or dealt with separately. PPNZ holds Precinct’s interests in Limited Partnerships
that it has entered into with third parties as well as all of the shares of Precinct Properties Holdings Limited, which in turn
holds all of the Precinct-owned properties.
PPIL owns Precinct’s operating businesses, including Generator / Precinct Flex, Precinct Properties 1 Queen Street Limited
(which owns the Intercontinental Hotel at 1 Queen Street), Commercial Bay Hospitality, Precinct Properties Residential
Holdings Limited and the management company, Precinct Properties Management Limited (PPML). Under the terms of a
management agreement, PPML has been contracted to manage all of the PPNZ property assets as well as the properties
owned by the relevant Limited Partnerships.
Precinct's Organisational Boundary for emissions included in our reporting:
We have included emissions associated with Precinct's activities where Precinct is the:
•Occupier of Commercial office space including Business Operator, Developer and Manager of a co-working business
•Building Owner of Commercial, Retail, Hotel and Education buildings owned in whole or part with joint venture partners
•Property & Facilities Manager of Commercial, Retail, Hotel and Education buildings owned in whole or part with joint
venture partners
•Property & Facilities Manager of Commercial buildings externally owned by others
•Building Developer of Residential, Commercial, Retail, Education and Hotel buildings owned in whole or part with joint
venture partners
•Business Owner of Hospitality venues and Hotel
Precinct's Organisational Boundary for emissions excluded from our reporting:
We have excluded emissions associated with Precinct's activities where Precinct is the:
•Financier of Residential projects not owned by Precinct
Precinct has elected to exclude emissions associated with a one-off mezzanine loan from its Scope 3 Category 15
(Investments) inventory.
The decision is based on guidance from the GHG Protocol Corporate Standard and ISO 14064-1:2018, which allow
organisations to apply materiality thresholds and exclude immaterial financial exposures from quantification. The loan in
question does not involve equity, is non-recurring, and relates to a build-to-sell asset over which Precinct has no operational
or financial control. Including emissions from this arrangement would misrepresent Precinct’s emissions profile and reduce
comparability across reporting periods. A qualitative disclosure has been included to ensure transparency and alignment
with best practice.
Climate Related Disclosures
43
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory

Metrics and Targets
Auckland sites within our organisational boundary
Precinct Properties Group44

Wellington sites within our organisational boundary
Climate Related Disclosures45
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory

Metrics and Targets
Targets
Precinct has elected to set targets that align with those supported by leading sector organisations, the WGBC and the
NZGBC, and provides transparent reporting on our climate-related performance. Details of our approach as well as the
definition of these targets in detail can be found on our website.
During FY22, Precinct began progressing towards, and in early FY23 formally adopted, the WGBC's Net Zero Carbon
Buildings Commitment for 2030. We have relied on WGBC's advice at that time that this Commitment aligns with a 1.5
degree trajectory. As a result we believe the Commitment is the most effective way to support the property industry’s goal
of limiting global warming. The Commitment is designed for the real estate sector, focusing on reducing operational energy
use and upfront carbon emissions, areas that represent over 90% of our portfolio’s environmental impact, as confirmed
through our GHG emissions reporting. This approach also reflects the whole lifecycle impact of buildings and supports
New Zealand’s transition to a low-carbon economy. Included within our Targets table are key elements of this Net Zero
Commitment, including our progress in achieving Green Star and NABERSNZ ratings coverage, which serve as measurable
indicators of our decarbonisation efforts. Precinct’s climate-related targets are summarised in the table below.
TargetCommitment DescriptionTarget TypeInterim
Target
Time
Horizon
Industry BodyPerformance
against target
FY25
Performance
against target
FY24
Net Zero
Emissions
Target
1
To achieve net
zero operational
2
GHG
emissions for all
buildings under direct
operational control
by 2030
Absolute
reduction
target –
2017
baseline
year
NA2030WGBC
Net Zero
Buildings
Commitment
Net Zero Emissions
(Absolute)
Toitū Net Carbon
Zero certified
organisation since
FY19
3
Net Zero Emissions
(Absolute)
Toitū Net Carbon
Zero certified
organisation since
FY19
3
Green
Star
Target
4
>60% of the portfolio
by value expected to
achieve a minimum 5
star ‘NZ Excellence’ As-
Built rating
Absolute
target
NA2030NZGBC49%45%
NABERSNZ
Target
5
100% of the portfolio
expected to achieve
a minimum 4
star NABERSNZ Base
Building rating
Absolute
target
NA2030NZGBC60%54%
Homestar
Target
6
>60% of the portfolio
by value expected to
achieve a minimum 6
star Homestar rating
Absolute
target
NA2030NZGBC60%NA
Established
in FY25
1In addition to our WGBC Net Zero Buildings Commitment referenced above, during the reporting period Precinct continued to work towards
having a separate Net Zero target prepared for review by the SBTi.
2Please see the WGBC website for a full explanation of the WGBC Net Zero Buildings commitment.
3The Toitū Net Carbon Zero Emissions certification covers Precinct’s operational emissions as defined by Toitū, which, together with the definition
of 'mandatory boundaries' for measurement and offsetting are located on Toitū's website. See below description in the Offset Units section.
4Since January 2022, conditional requirements have been introduced for all projects pursuing a Green Star rating to demonstrate a minimum
reduction in upfront carbon emissions, minimum efficiency levels for anticipated operational energy use and ecological protection. The
achievement of a Green Star rating for projects registered from January 2022 implies the achievement of a minimum reduction in upfront
carbon emissions, minimum energy efficient design and ecological protection as defined by the Green Star Design & As-Built New Zealand v1.1
& v1.1.1 standards.
5NABERSNZ Energy Base Building ratings range from 0 to 6 stars. These benchmarks are tailored to each building and take into account various
factors, including the percentage of leased space, building use types, and hours of operation, which can vary from year to year and building to
building. Based on this, an absolute target has been set for portfolio coverage to ensure consistency when reporting this target annually. This
target is applied to directly owned assets.
6Homestar is New Zealand’s leading sustainability certification for residential buildings, with ratings ranging from 6 to 10 stars. Ratings reflect
achievement across a wide range of environmentally sustainable design initiatives, including energy efficiency, water conservation, climate
adaptation, indoor health and comfort, and reduced environmental impact.
Precinct Properties Group46

Offset units
Our commitment to the WGBC Net Zero Buildings Commitment by 2030 reflects our focus on achieving our prescriptive
targets as well as retaining our Net Carbon Zero operational footprint through to 2030. To achieve these objectives, Precinct
voluntarily purchases and retires verified offset units to account for all residual Scope 1, Scope 2, and select Scope 3
emissions as defined by Toitū, which, together with the definition of 'mandatory boundaries' for measurement and offsetting
are located on Toitū's website. In addition to this boundary, Precinct voluntarily purchases and retires offset units for upfront
carbon emissions from new developments and major refurbishments in line with our WGBC commitment. This is undertaken
in accordance with the Toitū Net Carbon Zero certification and the WGBC Net Zero Buildings Commitment, with offset
categories aligned to the mandatory boundaries defined within these frameworks.
High quality offset units are purchased by Precinct directly and retired through Toitū to ensure independent verification on
the selection of the units. In assessing eligible offset units voluntarily procured directly by organisations, Toitū only accept
projects based on their robust three-level approach to due diligence. This due diligence approach was taken in relation to
Precinct's direct purchase of offset units applied to the FY25 certification. Further details related to this eligibility criteria can
be found here. For previous cycles, Precinct has purchased offset units directly through Toitū. The offset type, volume and
project details applied to each certification year through this programme are documented publicly on Toitū's website.
Climate Related Disclosures
47
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory

Metrics and Targets
Other Climate-related metrics
The key metrics and key performance indicators (KPIs) that Precinct currently uses to measure and manage our climate-
related risks and opportunities are set out below. These metrics and KPIs enable Precinct to embed key criteria within our
climate reporting to ensure Precinct's approach to understanding and managing risks and opportunities is relevant to our
business strategy and industry.
MetricDescriptionFY25FY24
GHG
Emissions
Intensity
Emissions intensity of Precinct's Net Carbon Zero reporting boundary
assured by Toitū, assessed across Scope 1 and 2 emissions
against revenue.
The decrease from FY24 to FY25 was due to a significant reduction
in reported Scope 1 emissions due to effective on-charging of
natural gas this financial year compared to last, particularly in the
Commercial Bay Retail asset. This reduction was achieved despite
an increase in grid electricity emissions due to increased fossil fuel
electricity generation over the period resulting in increased Scope 2
emissions intensity under a location-based method.
14.15 tCO
2
-e/$m
Scope 1+2/
revenue
15.26 tCO
2
-
e/$m
Scope 1+2/
revenue
GHG
Emissions
Intensity
Emissions intensity of Precinct's Net Carbon Zero reporting boundary
assured by Toitū against Net Lettable Area (NLA) in kg CO
2
-e / m
2
.
NLA is a measure of the floor space within an asset available for lease
to a tenant.
The decrease from FY24 to FY25 was mainly due to the changes
mentioned above for Scope 1 and 2. However there were some other
minor changes in emissions in Scope 3 of the mandatory programme
boundary namely a reduction in the impact of business travel and
increase in emissions associated with waste to landfill due to a
more reasonable and conservative selection of emission factor this
reporting period.
7.72 kgCO
2
-e/m
2
programme
boundary/NLA
13.69 kgCO
2
-
e/m
2
programme
boundary/NLA
Transition
Risks
Percentage of Precinct assets vulnerable due to anticipated impact
of climate-related transition risks on market, technology, reputation,
carbon price and regulation.
The major changes from FY24 to FY25 are reductions in risk
associated with the Hot House scenario and a general reduction in
long-term risks. This is due to changes in our methodology assessing
transition risks with external specialists and to reflect the economic life
cycle of assets, typically spanning 50 to 60 years. After this point the
asset value reverts to land-value. This is detailed in: Our approach to
reviewing climate-related risks
Refer to
Transition risk
impacts in
Strategy
section of this
report
Refer to
Transition risk
impacts in
Strategy
section of the
FY24 report
Physical
Risks
Percentage of Precinct assets vulnerable due to temperature
extremes, cyclone, pluvial flooding and coastal inundation (including
sea-level rise).
The decrease in long-term risks from FY24 to FY25 is due to changes
in our methodology to reflect the economic life cycle of assets,
typically spanning 50 to 60 years. After this point the asset value
reverts to land-value.
This is detailed in: Our approach to reviewing climate-related risks
Refer to
Physical risk
impacts in the
Strategy
section of this
report
Refer to
Physical risk
impacts in the
Strategy
section of the
FY24 report
Precinct Properties Group48

MetricDescriptionFY25FY24
Climate-
related
Opportunities
Green Star: >60% of the eligible portfolio by value expected to achieve
a minimum 5-star 'NZ Excellence' As-Built rating by 2030
NABERSNZ: 100% of the directly owned and eligible portfolio expected
to achieve a minimum 4 star NABERSNZ Base Building rating by 2030
Homestar: >60% of the eligible portfolio by value expected to achieve
a minimum 6 star Homestar rating by 2030
Precinct considers that properties with these ratings are aligned with
its identified market and technology climate-related opportunities,
namely pursuing industry leading initiatives that appeal to proactive
and sustainability-focused clients and investors and developing
energy-efficient, low-carbon assets.
The increase from FY24 to FY25 is due in part to the inclusion of
Precinct's share of capital partnership assets into the calculation
methodology, which provides a more complete assessment of ratings
achieved across Precincts property investments. The movement
also reflects changes in ratings for No.1 The Terrace and AON
Centre Auckland.
49%
60%
60%
Refer to
physical and
transition
opportunity
impacts in the
Strategy
section of this
report
45%
54%
NA
Established in
FY25
Refer to
physical and
transition
opportunity
impacts in the
Strategy
section of the
FY24 report
Capital
Deployment
Corporate reporting and professional services spend related to
Climate related risks and opportunities.
$447k$282k
Management of activities across the existing operational portfolio
related to climate-related risks and opportunities.
$102k$314k
Gross capital investment across development projects deployed
toward Green buildings. This includes 256 Queen Street, Downtown
Car Park, Freyberg Building, 61 Molesworth Street and other
development properties.
In FY25, the reduction in spend on Green buildings reflects a lower
level of capital deployed to construction activities compared to
the previous financial year. Precinct acknowledges the complexities
involved in reporting capital deployment specifically linked to climate-
related risks and opportunities, including that these metrics reflect
the aggregation of development activities associated with green
assets, as well as gross capital investment in relation to development
projects, as opposed to segregation of specific climate-related
components of these investments.
$139.2m$178.3m
Internal
Emissions
Price
Precinct applies an internal emissions price as a default when
accounting for the impact of carbon across the business (e.g. within
development budgets for offsetting upon project completion). This
internal emissions price is reviewed annually to reflect changes in the
voluntary carbon market.
$40/tCO
2
-e$40/tCO
2
-e
RemunerationIn FY24, executive and senior management STI objectives included ESG criteria weighted at 25%, though not
specifically tied to climate-related risks and opportunities.
Following an annual review in FY25, the Precinct Board reassessed its approach and identified the need to
shift from broad ESG targets to more targeted climate-related metrics. As a result, while FY25 remuneration
did not directly reflect these metrics, the People and Performance Committee has approved a revised STI
structure for FY26 that explicitly incorporates climate-related risks and opportunities.
Climate Related Disclosures49
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory

Metrics and Targets
Key Performance Indicators and industry metrics used by Precinct to measure and manage climate-related risks and
opportunities during FY24 and FY25 are set out below.
KPI /
Industry MetricsDescriptionFY25FY24
Climate risk
screening for all
new acquisitions
Precinct undertakes due diligence screening of new
site acquisitions to understand current and anticipated
climate-related risks.
From FY25, 100% of new acquisitions completed early
stage due diligence as part of the transaction process.
The increase from FY24 to FY25 was based on formal
analysis of physical and transitional climate risks initiated
during FY24 and adopted in full from FY25.
100% of sites
(by acquisition
value) acquired
in FY25 subject
to climate
risk screening
45% of sites
(by acquisition
value) acquired
in FY24 subject
to climate
risk screening
Climate adaptation
plans for
development projects
Inclusion of an early stage Climate Adaptation Plan to
guide new development and refurbishment projects to
incorporate physical climate risk mitigation at the early
design stage through to project completion.
0% is reported for FY25 as BECA House, Bowen House
and 30 Mahuhu Crescent did not conduct early
stage Climate Adaptation Plans at the beginning of
project commencement.
100% of development projects that have commenced from
FY25 incorporate a site specific Climate Adaptation Plan
as part of project delivery.
0% of
development
and
refurbishment
projects by
value (completed
during FY25)
73% of
development
and
refurbishment
projects by
value (completed
during FY24)
Proportion of
existing assets
subject to Climate
Risk Screening
Precinct undertakes annual climate screening via portfolio
analysis of climate-related physical and transitional risks.
This screening takes into account asset location, value
and addresses at least three climate scenarios relevant
to Precinct.
From FY24, 100% of existing assets held in part or wholly
by Precinct on completion subject to annual Climate
Risk Screening.
100% of
existing assets
during FY25
100% of
existing assets
during FY24
Precinct Properties Group50

KPI /
Industry MetricsDescriptionFY25FY24
Global Real
Estate Sustainability
Benchmark
(GRESB) Score
GRESB is an internationally recognised benchmark
assessing Environmental, Social and Governance (ESG)
performance of real assets for listed property companies,
private property funds, developers and investors that
invest directly in real estate. For more information on this
performance benchmark see GRESB.com
Precinct completes an annual submission to GRESB
regarding its sustainability practices, which includes
responses to questions regarding our climate adaptation
measures. In the 2024 and 2025 surveys, GRESB included
questions related to an entities climate reporting and
Precinct view participation in this as an effective
tool for peer review and industry benchmarking of
climate reporting.
Precinct aims to achieve a GRESB Score in the top quartile
(25%) of participants. In FY25, Precinct achieved and
surpassed this target by achieving a place in the top
quintile (20%) of funds globally.
The increase in Precinct's score from FY24 to FY25 was
based on improvements in third party rating coverage
during operation (Green Star Performance) and coverage
of Scope 3 datasets.
89/100
5 star
86/100
4 star
Climate Related Disclosures51
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory

Appendices
Precinct Properties Group52

Appendix 1
In preparing these Climate-Related Disclosures, Precinct has engaged the following specialist advisers:
Service ProviderDescription of Services
Toitū EnvirocareAuditor for Carbon Inventory in accordance with ISO 14064-3 and NZ SAE 1: Assurance Engagements
over Greenhouse Gas Emissions Disclosure for FY25
Mott MacDonaldTransition Risk review for the Auckland and Wellington commercial and retail portfolio (as described in
the Risk Management section of this statement)
ClimanomicsClimanomics by S&P Global is a risk analytics platform that calculates the financial impact of climate
risk on physical assets or real estate investments and aggregates up to the portfolio level. Analysis
spans across eight decades for four emissions scenarios. Precinct upload all properties within this
platform for ongoing reviews against the latest climate data.
To support our scenario analysis, we selected the S&P Global Climanomics® platform due to its
alignment with regulatory expectations, scientific robustness, and financial relevance.
Climanomics enables structured, forward-looking assessments of climate-related risks and
opportunities, consistent with the TCFD framework and NZ CS 1–3. It uses CMIP6 climate models,
NASA’s NEX-GDDP downscaled projections, and peer-reviewed science to model 9 physical hazards
(e.g. extreme heat, flooding, cyclones). Outputs are provided in both absolute and relative financial
terms across four emissions scenarios and eight decades, allowing us to quantify risk at the asset and
portfolio level.
We chose Climanomics because it:
•Aligns with global SSPs and NZGBC scenario guidance
•Provides credible, investor-grade financial risk outputs
•Supports site-specific adaptation planning
•Allows offline adjustment for local mitigation measures (e.g. flood barriers), ensuring disclosures
reflect realistic risk exposure
This approach ensures our scenario analysis is both scientifically grounded and decision-useful, while
meeting NZ CS requirements for transparency and audit readiness.
Chapman Tripp
Review of Precinct’s 2025 CRD including compliance against NZ Climate Standard CS 1 (excluding
GHG disclosures).
EYPre-assessment of FY24 and FY25 Climate Related Disclosures.
Climate Related Disclosures53
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory

Appendix 2
Sources of dataSee Appendix D of ‘Climate Scenarios for the Construction and Property Sector’ available here which
notes the following sources of data:
•IPCC 2021. Summary for Policy Makers. In: The Physical Science Basis. Contribution of Working Group
I to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change.
•Climate Change Projections for New Zealand: Atmosphere Projections Based on Simulations from the
IPCC Fifth Assessment, 2nd Edition.
•NGFS emissions modelling available on the NGFS IIASA Scenario Explorer.
•Tatauranga Aotearoa / StatsNZ 2020. National population projections: 2020(base)–2073.
•Te Tai Pari o Aotearoa / NZ Sea Rise 2022. Maps: For Public.
•MBIE’s Building for Climate Change programme intentions.
•He Pou a Rangi / Climate Change Commission 2021. Scenarios dataset for the Commission's 2021
Draft Advice for Consultation (output from ENZ model).
•Climate Change Commission’s Electricity Market Modelling Datasets 2021. NZGBC.
•NGFS Climate Impact Explorer.
•NGFS IIASA Scenario Explorer.
In addition, Precinct also reviewed the following sources for further insight into framing the narratives
related to nature within the scenarios chosen:
•Nature-based solutions can play a role offsetting emissions in the short term but technology-based
solutions are critical to achieve long-term decarbonization targets |
S&P Global (spglobal.com)
•MBIE Aotearoa New Zealand's first emissions reduction plan - 'Working with Nature'
•Afforestation can help to tackle climate change. Here's how |World Economic Forum (weforum.org)
•Q&A: Can ‘nature-based solutions’ help address climate change? -Carbon Brief
•Carbon sequestration potential of plantation forests in New Zealand - no single tree species is
universally best, Serajis Salekin1*, Yvette L. Dickinson1 , Mark Bloomberg2 and Dean F. Meason1
- SpringerLink
Precinct Properties Group
54

Conclusion
Basis of verification opinion
Toitū Verification and Validation
EMISSIONS - REASONABLE ASSURANCE
We have obtained all the information and explanations we have required. In our opinion, the gross GHG
emissions, additional required disclosures of gross GHG emissions, and gross GHG emissions methods,
assumptions and estimation uncertainty in the climate statements, in all material respects:
+ comply with the Aotearoa New Zealand Climate Standards (NZ CSs) issued by the External Reporti
ng
B
oard (XRB); and
+ provide a true and fair view of the climate statements of Precinct Properties New Zealand Limited
and
P
recinct Properties Investments Limited for the year ended 30 June 2025.
EMISSIONS - LIMITED ASSURANCE
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 GHG emissions, additional required disclosures of gross
GHG emissions, and gross GHG emissions methods, assumptions and estimation uncertainty defined in the
climate statements:
+ do not comply with the Aotearoa New Zealand Climate Standards (NZ CSs) issued by the External
Reporting Board (XRB); and
+ do not provide a true and fair view of the climate statements of Precinct Properties New Zealand Limit
ed
and
Precinct Properties Investments Limited for the year ended 30 June 2025.
Webelieve that theaudit evidencewehaveobtainedis sufficientandappropriate toprovidea basis for our
opinion.
To The Shareholders of Precinct Properties New Zealand
Limited and Precinct Properties Investments Limited
EMISSIONS - LIMITED ASSURANCE VALIDATION
Based on our examination of the validation evidence, nothing comes to our attention which causes us to
believe that reported assumptions do not provide a reasonable basis for forecast emissions and are not
fairly presented. Further, in our conclusion:
+ the forecast is properly prepared on the basis of the assumptions and in accordance with Aotearoa New
Zealand Climate Standards (NZ CSs) issued by the External Reporting Board (XRB)
Actual future emissions are likely to be different from the forecast as the estimates are based on
assumptions that may change in the future, and since anticipated events frequently do not occur as
expected and the variation may be material.
INDEPENDENT ASSURANCE REPORT
Appendix 3
Climate Related Disclosures55
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory
55

Scope of the assurance engagement
DOCUMENT
ASSURANCE SCOPE
INCLUDED (PAGES)
EXCLUDED - NO
ASSURANCE (PAGES )
Climate statements 38-39 (excluding 'Scope 3 -
Category 2: Embodied
Carbon from new
developments), 42-45, 60-
65
1-37, 39('Scope 3 - Category
2: Embodied Carbon from
new developments),40-41, 46-
54, 66-70
Annual report 1 - 141
Key matters
CAPITAL GOODS (EMBODIED CARBON
EMISSIONS FOR BUILDINGS)
Carbon emissions embodied (covering more than
50% of total inventory emission) as part of a
construction project are calculated based on the
“as built” design calculated by a consultant. The
estimate is based on a complex model taking into
account life cycle assessments, various inputs
and building elements based on the New Zealand
Green Building Council (NZGBC) framework.
Changes in assumptions, inputs and emission
factors can lead to significant changes in
emissions.
Audit procedures performed:
+ Assessed the reliability and competency of the
consultants used by management.
+ Engaged the use of an engineer and
infrastructure project manager expert to:
+ Obtain an understanding of the methodology and
assumptions used in the model;
+ Evaluate the assumptions used in model for
reasonableness
;
+ Confirm compliance with latest best practice
guidance from NZGBC, MBIE and BRANZ;
+ Review the appropriateness of the LCA tool used;
+ Review the inc
lusion of the required elements
(activity data) of the project by performing sampling on
the inputs
into the LCA tool;
+ Confirm the emissions factors applied in the model
with related guidance and standards;
+ Reperform the calculations for accuracy.
+ Site inspection to confirm the existence of the
embodied emissions.
+ Reviewed the disclosure of assumptions,
estimations, and uncertainty within the climate
statements.
KEY MATTERHOW KEY MATTERS HAVE BEEN ADDRESSED
We have undertaken a verification engagement relating to gross GHG emissions, additional required
disclosures of gross GHG emissions, and gross GHG emissions methods, assumptions and estimation
uncertainty on the climate statements as indicated in the table below for the financial year ended 30 June
2025 . Additionally, our assurance engagement does not extend to targets, emissions reduction progress or
GHG liabilities, of which details may be referenced within the table below. The scope of emissions and
level of assurance are disclosed below.
Precinct Properties's climate statements provide information about the greenhouse gas emissions of the
organisation for the defined measurement period and is based on historical information. This information is
stated in accordance with the requirements of Greenhouse Gas Protocol: A Corporate Accounting and
Reporting Standard (2004).
Key mattersarethosematters that,inour professionaljudgement,wereofmostsignificanceinour
assuranceengagementof theGHGdisclosures.Thesematterswereaddressedinthecontextof our
assuranceengagement andinformingouropinion.Wedonotprovidea separateconclusionon these
matters.
_
Appendix 3
Precinct Properties Group56

Other matters
Responsible Party's Responsibilities
Responsibilities of verifiers and validators
Othermattersthat have not beendisclosedintheGHGdisclosures,thatinourjudgementarerelevant to
the intended users:
COMPARATIVE INFORMATION
+ The comparative GHG disclosures (that is GHG disclosures for the periods ended 30 June 2017, 2023
and 2024) have not been the subject of an assurance engagement undertaken in accordance with New
Zealand Standard on Assurance Engagements 1: Assurance Engagements over Greenhouse Gas
Emissions Disclosures (‘NZ SAE 1’). These disclosures are not covered by our assurance conclusion.
+ The comparative periods 30 June 2017, 2023 and 2024 have been assured in prior periods in a separate
Toitū Envirocare assurance engagement in accordance with ISO 14064-3: 2019 issued by International
Organization for Standardization.
Precinct Properties New Zeal and Limited and Precinct Properties Investments Limit ed is responsible for the
preparation of the GHG disclosure in accordance wit h Aotearoa New Zeal and Climate Standards (NZ CSs) -
iss ued by External Reporting Board (XRB) and GHG Protocol. This responsibility includes the design,
implementation and maintenance of internal controls relevant to the preparation and fair presentation of a
GHG disclosure that i s fr ee from material misstatement, whether due t o fr aud or error.
INHERENT UNCERTAINITY
As disclosed on page 60, Appendix
4 - "Greenhouse Gas Emissions - Methods, Assumptions and
Estimation Uncertainty ", GHG quantification is subject to inherent uncertainty because of incomplete
scientific knowledge used t o determine emissions factors and t he values needed to combine emissions of
different gases.
Ourresponsibilityasverifiersistoexpressa verification opinion to theagreedlevel of assurance on the
inventory report, basedon theevidencewehaveobtained andinaccordancewiththeaudit criteria.We
conductedour verificationengagementasagreedinthepre-audit engagement letter,whichdefinesthe
scope, objectives, criteria and level of assurance of the verification.
Ourresponsibilityasvalidatorsistoexpressan opinion on the forecastbasedon ourvalidation.We
conductourvalidationinaccordancewiththe ISOspecificationwith guidancefor the verificationand
validationofgreenhouse gas statements, i.e.ISO14064-3.ThisInternationalStandard requiresthatwe
planand performthevalidationto reacha conclusionas towhetherthe forecastintheGHGstatementis
based on reasonable assumptions.
Climate Related Disclosures57
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Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory
57

Existence of relationships
Independence and quality management standards applied
The International Standard ISO 14064-3:2019 requires that we comply with ethical requirements and plan
and perform the validation and verification to obtain the agreed level of assurance that the GHG emissions
are free from material misstatements. We are not permitted to prepare the GHG statement as this would
compromise our independence.
Thisassuranceengagementwas undertakeninaccordancewith NZSAE1 AssuranceEngagementsover
GreenhouseGasEmissionsDisclosuresissuedbytheExternal Reporting Board(XRB).NZSAE1 is
foundedon thefundamentalprinciples ofindependence, integrity, objectivity,professionalcompetence and
due care, confidentiality and professional behaviour.
Wehavealsocompliedwiththefollowingprofessionalandethicalstandards and accreditation body
requirements:
+ ISO14065: 2020–Generalprinciplesand requirementsforbodies validating andverifyingenvironmental
information;
+ ISO14066: 2023–Greenhouse gases—Competence requirementsforteams validating andverifying
environmental information;
+ ISO17029: 2019–Conformity assessment—Generalprinciplesand requirementsforvalidation and
verification bodies;
+IAF MD4:2023-FortheUseofInformation and Communication Technology(ICT)for
Auditing/Assessment Purposes;
+ Joint Accreditation System of Australia and New Zealand Accreditation Requirements
Reasonable assuranceisahighlevel ofassurance,butisnotaguaranteethat anauditcarriedoutin
accordancewiththe ISO14064-3:2019 Standardswill always detectamaterial misstatement whenitexists.
Theprocedures performedonalimitedlevel of assurancevaryinnatureand timingfrom,andareless in
extent compared to reasonable assurance, which is a high level of assurance.
Misstatementsaredifferencesoromissionsofamountsordisclosures,andcanarisefromfraudorerror.
Misstatementsareconsidered materialif, individuallyorintheaggregate, they could reasonablybe
expected to influence the decisions of readers, taken on the basis of the information we audited.
Toitūhasalsoprovidedotherservicesto the responsiblepartyinrelation toClimate Impactcertification
programme membership only andthecancellingof carboncredits(seedetails https://www.toitu.co.nz).
Subject to certainrestrictions,ouremployeesmayalsodeal withthe responsiblepartyonnormal terms
withintheordinarycourse oftradingactivities.Thesemattershave notimpairedourindependenceas
verifier of the responsible party. Toitū has no other relationship with, or interest in, the responsible party.
Appendix 3
Precinct Properties Group58

Verification strategy
Verification and Validation level of assurance
GHG PROTOCOL CATEGORIES
GHG SCOPE
LOCATION BASED tCO
2
e
MARKET BASED tCO
2
eLEVEL
OF ASSURANCE
Scope 1 1,7061,706
Reasonable
Scope 2 2,0600
Reasonable
Scope 349,10049,429
Limited
TOTAL INVENTORY52,86651,135
ISO CATEGORY
LOCATION BASED tCO
2
e
MARKET BASED tCO
2
e
LEVEL OF ASSURANCE
Category 1 1,7061,706
Reasonable
Category 2 2,0600
Reasonable
Category 3 211211
Limited
Category 4 37,47537,477
Limited
Category 5 11,41411,740
Limited
Category 6 00
Limited
TOTAL INVENTORY
52,86651,135
Our verification strategy used a combined data and controls testing approach. Evidence-gathering
procedures included but were not limited to:
+ activities to inspect the completeness of the climate statements and emissions;
+ interviews of site personnel to confirm operational behaviour and standard operating procedures;
+ audit procedures as described in key matters;
+ tracing emission factors to supporting publications and documents;
+ reconciliation and sampling of electricity and natural gas reports and invoices to confirm accuracy of
source data into calculation;
+ reconciliation of construction waste reports to confirm accuracy of source data into calculation;
+ detailed retracing of purchased good and service emissions.
The data examined during the verification were historical in nature.
Climate Related Disclosures59
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory
59

Validation strategy
Responsible party's greenhouse gas assertion (claim)
Other information
VERIFIED BYINDEPENDENT REVIEWERENGAGEMENT LEADER
Name:Ying ZhaoBilly ZiemannOsana Robertson
Position: Verifier, Toitū EnvirocareIndependent reviewerToitū Envirocare
Signature:
Date verification
audit:
28- 29 August 2025
Date opinion expressed:
28 October 2025
Location:
Wellington
PrecinctPropertiesNewZealand Limited andPrecinctProperties Investments Limited including
Generator/PrecinctFlex,IntercontinentalHotel, Poni, Ghost Donkey and excluding DevelopmentAssets
hasmeasureditsgreenhouse gasemissionsinaccordancewith GHGProtocolin respect of the operational
emissions of organisation.
Theresponsiblepartyhasadutyfor the provision of OtherInformation.TheOtherInformationmay include
climatestatements around governance, strategy andrisk management,emissionsmanagement,liabilities,
targets, reductionplansandfull annual report butdoesnotincludetheinformationwe verified, andour
auditor’s opinion thereon.
Wehave notperformed any procedureswithrespect to theexcluded information and, therefore,no
conclusion isexpressedonit.Ourresponsibilityis toread and reviewthe OtherInformation, and consider
whetherthe OtherInformationismateriallyinconsistentwiththeinformationwe verifiedor ourknowledge
obtained during the verification.
Our validation procedures assessed the :
+ GHG boundary;
+ activity estimates;
+ calculation methodologies and measurements;
+ conservativeness of assumptions and estimates;
+ calculation outcomes including extrapolation of data;
+ future estimates and assumptions;
+ uncertainties;
+ retracing data to supporting documentation;
+ sensitivity of the forecast to the assumptions.
The data examined during the validation were projected in nature.
Appendix 3
Precinct Properties Group60

Appendix 4
Greenhouse Gas Emissions - Methods, Assumptions and Estimation Uncertainty
All categories below have been audited in FY25 to a
Reasonable (Scope 1 & 2) or Limited (Scope 3) level
indicating a strong and robust approach to full value
chain reporting. Precinct acknowledge the progress
industry are making in improving the data quality of
Scope 3 emissions streams and the effort required to
strengthen these categories ahead of future audit cycles.
Where data quality is assessed at being of a Low-Medium
level, Precinct commit to continual improvement year on
year where feasible.
SymbolMeaning
Quantitative
Assessment Band
✔ ✔ ✔High quality<10% Uncertainty
✔ ✔
Medium
quality
10-30% Uncertainty
✔Low quality>30% Uncertainty
GHG quantification is subject to inherent uncertainty
because of incomplete scientific knowledge used to
determine emission factors and the values needed
to combine emissions of different gases. Despite this,
where possible Precinct has endeavoured to use the
most reliable emissions data possible. Meaning we have
prioritised data directly from supplier or through detailed
consultant calculations. Through this process Precinct has
achieved the following percentages breakdown of all
Scope 3 emissions calculated:
•61% using data from suppliers or other value chain
partners (external from Precinct)
•39% using data generated internally from
Precinct records
GHG Protocol
Category
Activity DataData SourceCalculation Methodology
Data
Quality
Data Quality Assessment
Rationale including limitations
and uncertainty
Scope 1
Stationary
Consumption
Diesel
Supplier Data
- Actual
Usage
Data received in litres, directly
applied to emission factor.
✔ ✔ ✔
High quality as records
directly from contractor
and high quality emission
factors available.
Natural Gas
Supplier Data
- Actual
Usage
Data received in kWhs, tenant
on-charge removed via internal
asset metering and directly
applied to emission factor.
Adjustments made to figures
to cover full year (adjusted
down or up depending on
invoice coverage).
✔ ✔ ✔
High quality as records
directly from utility and
high quality emission
factors available.
Scope 1
Process
Emissions
Refrigerants
Supplier Data-
Actual Usage
Data received in kgs, directly
applied to emission factor.
✔ ✔ ✔
High quality data as
records directly from
contractor and high quality
emission factors available.
Scope 2
Imported
Electricity
Electricity
Supplier Data
- Actual
Usage
Data received in kWhs, tenant
on-charge removed via internal
asset metering and directly
applied to emission factor.
✔ ✔ ✔
High quality data as
records directly from
utility and supported
by embedded network
provider. High quality
emission factors available.
Climate Related Disclosures61
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory
61

Appendix 4
GHG Protocol
Category
Activity DataData SourceCalculation Methodology
Data
Quality
Data Quality Assessment
Rationale including limitations
and uncertainty
Scope 3
Cat 1
Purchased
Goods and
Services
Spend Based:
Purchased
Goods and
services
Supplier
specific
emissions
data
prioritised
where
possible,
remainder
calculated
using total
NZD spent per
good
Calculations based on
assessment of transactions
over period. Transactions above
$500,000 (representing 95%
of transactions by value)
are selected for detailed
assessment while remainder are
totalled with an assumption of
impact and coverage applied.
Transactions counted elsewhere
or non-emissions related are
excluded. (e.g. internal/financial
transactions, contractor costs)
Remaining transactions directly
apply spend based emission
factors based on activity
undertaken by supplier.
Where possible direct spend
is replaced by Scope 1 &
2 supplier specific impacts
(accounting for 3% of
spend) with a conservative
percentage of coverage of their
organisation impacts.
✔
Supplier specific emissions
are reasonable quality
where available. However,
for the remainder
spend based calculations
sourced high quality data
from internal finance team.
Inherently, calculations
applying spend-based
factors are significantly
uncertain and limited
in specificity.
Potable Water
Supply
Supplier Data
- Actual
Usage for the
majority of
sites and
apportioned
for select
properties
without
records
Data received in kLs from utility
provider for majority of sites
and directly applied to emission
factor. For sites without reliable
utility data, a square metre
rate based on the reliable data
received from similar typologies
in the portfolio is applied to
calculate consumption.
✔ ✔
High quality data
with low margin for
error for properties
with utility records
with consumption details.
Properties apportioned
with average data from
across the Portfolio
introducing quality
limitations. Medium quality
emission factors available.
Project
Managed
Base Building
Energy Supply
Supplier Data
- Actual
Usage
Data received in kWhs from
utility provider, tenant on-
charge removed and directly
applied to emission factors.
Adjustments made to figures
to cover full year (adjusted
down or up depending on
invoice coverage).
✔ ✔
High quality data with
low margin for error
for most properties.
Some properties require
significant coverage
adjustment reducing data
quality. High quality
emission factors available.
Precinct Properties Group62

GHG Protocol
Category
Activity DataData SourceCalculation Methodology
Data
Quality
Data Quality Assessment
Rationale including limitations
and uncertainty
Scope 3
Cat 2
Embodied
Carbon
from New
Developments
Embodied
Carbon
Consultant
modelling –
Industry
metrics
Calculations based on
modelling undertaken using
the life cycle assessment
methodology in EN15978:2011
by consultants. Figures in
kgCO
2
-e taken from the
analysis and applied to the
inventory represent "upfront"
or "cradle to gate" impacts
which account for upstream
extraction and manufacturing
of materials, transport to site
and construction on site.
✔ ✔
Medium quality data from
industry benchmarks and
emissions factors accepted
by NZGBC. Best practice
approach for embodied
carbon calculations used
for development projects.
Other Minor
Projects
Modelling -
Project
estimates
Calculations based on
modelling undertaken using
project material quantities in
representative measurements
(kg, m
3
, etc.) and applied
directly to industry product
emission factors. kgCO
2
-e taken
directly from analysis reports.
✔ ✔
Medium quality data from
high level estimates and
emissions factors.
Scope 3
Cat 3 Fuel
& Energy
Related
Activities
T&D losses
from
Electricity and
Natural Gas
Supplier Data
- Actual usage
Resource consumption data
calculated in Scope 1
and 2 applied directly to
emission factor.
✔ ✔ ✔
High quality data for T&D
losses as records directly
from utility and supported
by embedded network
provider. High quality
emission factors available.
Well-to-Tank
Impacts
Supplier Data
- Actual usage
Resource consumption data
calculated in Scope 1
and 2 applied directly to
emission factor.
✔ ✔
High quality data for
activities. Medium quality
emission factors available
for location.
Scope 3
Cat 5
Waste
Generated
from
Operations
Auckland
Waste
Supplier Data
- Actual usage
(rubbish
direct)
Data received in kg per waste
stream from contractor for
majority of sites and directly
applied to emission factors.
✔ ✔
High quality as obtained
direct from contractor
reports. High quality
emission factors available
for waste to landfill,
low quality emission
factors available for
recycling introducing
significant uncertainty
Climate Related Disclosures63
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory
63

Appendix 4
GHG Protocol
Category
Activity DataData SourceCalculation Methodology
Data
Quality
Data Quality Assessment
Rationale including limitations
and uncertainty
Scope 3
Cat 5
Waste
Generated
from
Operations
Wellington
and Leased
Site Waste
Estimated
usage using
internal
methodology,
where the
actual usage
from Auckland
sites is applied
on a sqm
basis to other
sites, based
on the asset
type
Data calculated in kg per
waste stream using square
metre rate based on the
reliable data received from
similar typologies in the
portfolio is applied to calculate
consumption and directly
applied to emission factors.
✔
Low quality data as
figures apportioned from
other sites with actual
data. Introducing quality
limitations as quantities
may differ significantly
from actual usage.
Wastewater
Estimated
from water
consumption
using industry
average
Discharge kL data estimated
using Watercare assumption
on billing for all sites (95%
of supplied water discharged
as wastewater) and directly
applied to emission factor.
✔
Low quality data as the
figures are determined
based on industry
averages, which may differ
significantly from actual
usage. Medium quality
emission factors available.
Construction
waste
Supplier Data
- Actual
Usage
Data in kg per waste
stream received from contractor
and directly applied to
emission factors.
✔ ✔
High quality data as
direct from development
site contractors. High
quality emission factors
available for waste
to landfill, low quality
emission factors available
for recycling introducing
significant uncertainty
Scope 3
Cat 6
Business
Travel
Business
Travel
Supplier Data
calculations
for majority of
travel.
Remainder
calculated
using total
NZD spent per
travel
Data received in kgCO
2
-e
directly from supplier for
majority of business travel
impact. Some taxi data received
directly from supplier in km
travelled with emission factor
applied directly. Remainder
of impacts captured within
transactions over period coded
to travel and spend based
emission factors applied.
✔ ✔
High quality data from
supplier for majority
of travel. Remainder
spend based calculations
sourced high quality data
from internal finance team.
Inherently calculations
applying spend-based
factors are significantly
uncertain and limited
in specificity.
Precinct Properties Group64

GHG Protocol
Category
Activity DataData SourceCalculation Methodology
Data
Quality
Data Quality Assessment
Rationale including limitations
and uncertainty
Scope 3
Cat 7
Employee
Commute
Employee
Commute
Calculated
using internal
methodology,
based off an
internal survey
that considers
the total
distance
travelled by
each
transport
mode.
Data estimated in km travelled
from full time equivalents
employed during period and
a representative staff survey
of commuting habits. The
km travelled data applied
directly to emission factors for
transport modes.
✔
Low quality data based
on staff survey capturing
a portion of employees,
remainder apportioned.
Medium quality emission
factors available.
Scope 3
Cat 8
Upstream
Leased
Assets
Energy
Consumption
in Leased
Tenancies of
Externally
Owned
Properties
Supplier Data
- Actual
Usage
(External
Landlord
supplied
NABERSNZ
Energy
reports)
Data received in kWhs and
litres directly from landlord in
third-party verified certifications
(NABERSNZ reports) and
applied directly to emission
factors. Where required tenancy
consumption removed from
total to account for base
building only.
✔ ✔ ✔
High quality data due
to the verification that
goes into producing
the NABERSNZ reports.
High quality emission
factors available.
Scope 3
Cat 11 Use
of Sold
Products
Remaining
Life Cycle
Energy
Consumption
of Assets Sold
Supplier Data
- Actual
Usage
(NABERSNZ
Energy
reports)
Data estimated in kWhs and
litres from third-party verified
certifications (NABERSNZ
reports) across remaining asset
service life and applied directly
to emission factors. A 60 year
service has been assumed for
all assets.
✔ ✔
High quality data due
to the verification that
goes into producing the
NABERSNZ reports, but
extrapolated out over the
remaining service life of
the asset at point of
sale introducing significant
estimation and limitations
to the reliability of
the anticipated emissions.
High quality emission
factors available.
Climate Related Disclosures
65
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory
65

Appendix 4
GHG Protocol
Category
Activity DataData SourceCalculation Methodology
Data
Quality
Data Quality Assessment
Rationale including limitations
and uncertainty
Scope 3
Cat 12 End-
of-Life
Treatment
of Sold
Products
End-of-Life
Embodied
Carbon of
Assets Sold
Consultant
modelling –
Industry
metrics
Calculations based on
modelling undertaken using
the life cycle assessment
methodology in EN15978:2011
by consultants. Figures in
kgCO
2
-e taken from the
analysis and applied to
the inventory represent "end-of-
life" impacts which account
for demolition/deconstruction
of the asset, transport of
material offsite, processing of
waste, decomposition of waste.
However where assets have not
had this assessment undertaken
an square metre rate figure
based on other assessments
is applied.
✔
Medium quality data from
industry benchmarks and
emissions factors accepted
by NZGBC. Best practice
approach for embodied
carbon calculations used
for development projects.
However extrapolation
to End-of-Life modelling
requires significant
estimation and introduces
limitations to the
reliability of the
anticipated emissions.
Scope 3
Cat 13
Downstream
Leased
Assets
Tenant
Electricity and
Gas Usage
Supplier Data
- Actual
Usage
Data received in kWhs from
utility provider. The tenant on-
charged consumption removed
in scope 1 and 2 calculations
are applied directly to emission
factors in this category.
✔ ✔ ✔
High quality data from
supplier for recharges.
High quality emission
factors available.
Precinct Properties Group66

Additional reporting aligned to the Greenhouse Gas Protocol
Additional Gas Types Table
Per the Greenhouse Gas Protocol, the following Greenhouse Gas types have been separately reported alongside CO
2
(CH
4
,
N
2
O, HFCs, PFCs, SF
6
, NF
3
) in metric kg and in tons of CO
2
equivalent: (Corporate Standard Chapter 9, Scope 3 Standard
Chapter 11):
GHG Protocol
Scope
ISO 140464
Category
MetricCO
2
CH
4
N
2
ONF
3
SF
6
HFCPFC
Scope 1Category 1
tCO
2
e1,69241-   -   9-
kg1,692,4851423-   -   7-
Scope 2Category 2
tCO
2
e2,000564-   -   -   -
kg2,000,1941,98615-   -   -   -
Scope 3
Category 3
tCO
2
e20912-   -   -   -
kg208,940247-   -   -   -
Category 4
tCO
2
e35,7521,63291-   -   -   -
kg35,752,09158,287342-   -   -   -
Category 5
tCO
2
e11,17522216-   -   -   -
kg11,175,4617,91862-   -   -   -
Category 6
tCO
2
e-   -   -   -   -   -   -
kg-   -   -   -   -   -   -
Total Scope
3 / Category
3-6
tCO
2
e47,1361,854109-   -   -   -
kg47,136,49266,229411-   -   -   -
Total all Scopes
and Categories
tCO
2
e50,8291,914114-   -   9-
kg50,829,17168,357429-   -   7-
Anthropogenic Biogenic (CH
4
and N
2
O) emissions
The only category recording biogenic CO
2
-e emissions is ISO 14064-1:2018 Category 4: Indirect emissions from products used
by organisation:
•1,497.63 tCO
2
-e
Climate Related Disclosures
67
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory
67

Appendix 4
Base Year Description (Corporate Standard Chapter 5
and 9, Scope 2 Guidance Chapter 7, Scope 3 Standard
Chapter 11)
Discussion of the policy for base year recalculations and
any significance threshold applied
The measurement period (1
st
July – 30
th
June) was selected
to align to the financial reporting year beginning in
Financial Year 2017 (FY17, 1
st
July 2016 – 30
th
June 2017).
For Scope 1 & 2, FY17 was chosen as the base year as it is
the first year we had a robust set of data available across
the portfolio. This was the year the portfolio was the most
stabilised after a number of acquisitions and divestments
and is therefore most relevant to provide an accurate
comparison. Our Scope 1 & 2 reporting is expected to
remain unchanged due to the targets for the portfolio
being based on intensity rather than absolute reduction.
A change or recalculation of this benchmark of the base
year for Scope 1 & 2 may be made in future cycles due to
an increase of alternative asset classes being introduced
to the investment portfolio that represent a deviation in
good performance per m
2
compared to office and retail
assets currently assessed.
For Scope 3, the boundary was significantly adjusted
during FY23, FY24 and again in FY25. This is due to
the expanded reporting against current and additional
categories in Scope 3 in line with the NZCS 1, 2 & 3 regime
requiring full value chain reporting. In addition, where
data was not available for the period, a methodology
has been created to support and fill gaps in reporting
previously unreported that leans to a more conservative
figure (generally higher than actually anticipated). Due to
this change in profile and coverage, a reliable baseline
for Scope 3 has not yet been determined for the
Portfolio, however further investigation on establishing an
appropriate baseline will be completed during FY26 in line
with the SBTi workstream to submit valid Scope 3 targets
and our next full value chain emissions audit for FY26.
For the Toitū Net Carbon Zero certification, the base
year was reset in FY19 (1
st
July 2018 – 30
th
June 2019)
in line with an increase in reporting scope required for
the certification to provide a more consistent year on
year comparison for the certification going forward. In
conjunction with the Scope 3 baseline investigation, this
will be reviewed in FY26 to determine if a change to
the base year will be effective for the certification going
forward considering the quantity of additional voluntary
emissions reported this certification period.
Emissions for the identified base year and current reporting
year that are calculated in accordance with the entity’s
base year recalculation policy
•Scope 1 & 2 - no recalculations have been
made for the FY17 base year used in reporting
emissions performance
•Scope 3 - no baseline year has been set due to FY25
change in profile and coverage.
Emissions data for all years between the base year and the
current reporting year calculated in accordance with the
entity’s base year recalculation policy
•Scope 1 & 2 - no recalculations have been
made for the FY17 base year used in reporting
emissions performance
•Scope 3 - no baseline year has been set due to FY25
change in profile and coverage.
The method used to calculate the base year’s (FY17) Scope
2 emissions
All data was calculated using Toitū emanage and the
organisations sourced emission factors. From FY20 this
has been primarily calculated using GHG emissions
factors as provided by the Programme based on The
Ministry for the Environment’s “Measuring Emissions: A
Guide for Organisations” published in 2020. A 'location
based' calculation methodology has been used for
quantifying the GHG emissions inventory using emissions
source activity data multiplied by GHG emissions or
removal factors.
If Scope 3 emissions are included for the base year,
disclose Scope 3 emissions by category in the base year
•Scope 3 - no baseline year has been set due to
FY25 change in profile and coverage, however Scope
3 categories reported during the base year have
been disclosed.
Precinct Properties Group
68

Appendix 5
Key Board and Management engagements on climate-
related risks and opportunities in the reporting year FY25
were as follows:
DateGovernance BodyRelevant Content to CRD
27 August 2024
ESG Committee
Meeting (out of cycle)
Legal liability presentation from Chapman Tripp
Review of Greenhouse Gas assurance by Toitū Envirocare (FY24 CRD)
20 September 2024
ESG Committee
Meeting (out of cycle)
Review Director feedback associated with draft Climate-
Related Disclosures
ESG Committee endorse approval of the Climate-Related Disclosure
Statement to ARC (FY24 CRD)

20 September 2024ARC (out of cycle)
ARC recommend approval of the Climate-Related Disclosure Statements to
the Board (FY24 CRD)
17 October 2024
Board Meeting
(out of cycle)
Board approval of Climate-Related Disclosure Statements (FY24 CRD)
14 November 2024
ESG
Committee Meeting
Review Precinct's Climate Risk Register
Review Sustainability Reporting
Review FY24 Climate-Related Disclosure Statements, process and feedback
15 November 2024Board MeetingUpdate to Board from ESG Committee
6 May 2025
ESG
Committee Meeting
Review and recommend endorsement of FY25 CRD preparation process
to ARC
7 May 2025ARC MeetingEndorse and recommend approval of FY25 CRD preparation process
7 May 2025Board MeetingApproval of FY25 CRD preparation process
25 August 2025
ESG
Committee Meeting
Presentation from Chapman Tripp
Review of draft Climate-Related Disclosures (FY25 CRD)
23 September 2025
Joint ESG and ARC
Meeting (out of cycle)
Review of Greenhouse Gas assurance by Toitū Envirocare (FY25 CRD)
Presentation from EY
Review of draft Climate-Related Disclosures (FY25 CRD)
Climate Related Disclosures69
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory
69

Glossary
$ and cents
New Zealand currency
Balance date
30 June 2025
BAU (Business As Usual)
A scenario or reference case that assumes no significant
changes to current policies, practices, or technologies.
Boards
the Boards of Directors of Precinct Properties
New Zealand Limited and Precinct Properties
Investments Limited
CAPEX
Capital Expenditure; funds used by an organisation to
acquire, upgrade, and maintain physical assets such as
property, buildings, or equipment.
CCS
Carbon capture and storage
CEO
Chief Executive Officer
CFO
Chief Financial Officer
Chair
the Chair of the Boards
Client occupier
An organisation or individual that leases or occupies
space within a Precinct-owned or managed property.
Climanomics
A climate risk analytics platform by S&P Global used to
assess and quantify the financial impact of climate risks
on assets and portfolios.
Climate Risk Register
A dedicated register that identifies and tracks climate-
related risks, covering both physical and transition
impacts of climate change, relevant to Precinct’s
operations. The Climate Risk Register is reviewed
quarterly by the Audit and Risk Committee and is read
alongside Precinct’s primary risk register, ensuring climate
risks are considered within the broader organisational risk
management framework.
CRD
Climate-Related Disclosures
Energy intensity
An energy intensity figure measures the amount of energy
consumed per unit of output, typically expressed in terms
of energy used per square meter of a building or per
unit of product produced, reflecting the efficiency of
energy use.
Emissions intensity
An emissions intensity figure quantifies the amount of
greenhouse gas emissions produced per unit of output,
often expressed as emissions per square meter of a
building or per unit of product manufactured, indicating
the carbon footprint associated with that output.
ESG
Environmental, Social & Governance. For the purposes of
these climate-related disclosures, references to ESG or
Environmental, Social & Governance relate only to climate
change unless the context specifically and expressly
provides otherwise.
GHG
Greenhouse Gas
GHG Protocol
Corporate Accounting and Reporting Standard and
Greenhouse Gas Protocol: Corporate Value Chain (Scope
3) Accounting and Reporting Standard.
Greenhushing
The practice of deliberately downplaying or withholding
information about an organisation’s environmental goals
or achievements to avoid scrutiny or criticism.
Green Star
Green Star is a voluntary sustainability rating system for
buildings, fitouts and communities. Administered by the
NZGBC the system provides a rating of up to six stars
based on a building’s key sustainability credentials.
GRESB
Global Real Estate Sustainability Benchmark; an
internationally recognised ESG benchmark for real assets.
Investment Portfolio
includes the properties or estates within the portfolio
that are developed and able to be leased, ie not under
active development.
NABERSNZ
The New Zealand adaptation of the National Australian
Built Environment Rating System, which measures the
energy and water efficiency of operational commercial
office buildings.
Precinct Properties Group
70

NZGBC
New Zealand Green Building Council
Operational control
The authority to introduce and implement operating
policies at an operation, used as a basis for determining
which emissions are included in an organisation’s
GHG inventory.
PPIL
Precinct Properties Investments Limited
PPNZ
Precinct Properties New Zealand Limited
Precinct
Precinct Properties New Zealand Limited,
Precinct Properties Investments Limited and their
respective subsidiaries
SBTi
Science-Based Targets initiative
Short-term Incentives (STI)
Performance-based compensation awarded to executives
or employees based on the achievement of specific short-
term goals, typically within a year.
SSPs
Shared Socioeconomic Pathways
sqm
square metres
tCO
2
-e
Tonnes of Carbon Dioxide Equivalent
Toitū
Toitū Envirocare, is a provider of carbon management
and neutral certifications for New Zealand businesses.
Its certification programmes ensure that companies
benefit from international best practices, applied science,
and effective tools. The organisation is a subsidiary
of Crown Research Institute, Manaaki Whenua –
Landcare Research.
Upfront carbon emissions
Upfront carbon emissions refer to the GHG emissions
that are released during the extraction, manufacturing,
and transportation of building materials, as well as
during the construction and installation processes of
a building. These emissions occur before a building
becomes operational and are a significant part of the
embodied carbon in a building.
Climate Related Disclosures
71
Contents
Introduction
Statement
of Compliance
Governance
Strategy
Risk Management
Metrics and Targets
Appendices
Directory
71

Directory
Precinct Properties New Zealand Limited
Registered Office of Precinct
Level 12,
188 Quay Street
Auckland, 1010
New Zealand
T: +64-9-927-1647
E: hello@precinct.co.nz
W: www.precinct.co.nz
Directors of Precinct at 30 June 2025
Anne Urlwin – Chair
Alison Barrass
Nicola Greer
Christopher Judd
Chris Meads
Mark Tume

Precinct Executive Team
Scott Pritchard, Chief Executive Officer
George Crawford, Deputy Chief Executive Officer
Richard Hilder, Chief Financial Officer
Nicola McArthur, GM - Marketing, Communications & Experience
Anthony Randell, GM - Property
Louise Rooney, General Counsel & Company Secretary
Emma de Vries, GM - People & Culture
Tim Woods, GM - Development
Manager
Precinct Properties Management Limited
Level 12,
188 Quay Street
Auckland, 1010
New Zealand
Precinct Properties Group72

precinct.co.nz
2025 Climate Related Disclosures

Precinct Share Purchase Plan Closes Oversubscribed Ongoing Disclosure Notice - Mark Tume

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.