FY26 Sustainability and Climate Report

propertyforindustry.co.nz


14 September 2026

NZX and media
announcement
Property for Industry
Limited (PFI)


FY26 CLIMATE-RELATED DISCLOSURES


Property for Industry Limited (PFI) today releases its Climate-related Disclosures for the reporting period ended 30
June 2026.

PFI’s FY26 Sustainability and Climate Report, containing PFI’s FY26 Climate-related Disclosures, is also available
on PFI’s website at: https://www.propertyforindustry.co.nz/sustainability

END













ABOUT PFI
PFI is an NZX listed industrial property specialist,
owning over 90 quality properties worth more than
$2 billion. Our well diversified portfolio is focused on
strategic locations that drive value and growth for
the industrial sector, for our tenants, and for our
investors. Since listing on the NZX in 1994, we’ve
built a strong track record of delivering consistent
returns. We invest for the long-term, combining our
capital and specialist industry capability to deliver
the successful outcomes all our stakeholders need.


CONTACT
SIMON WOODHAMS

Chief Executive Officer
—
+64 21 749 770
woodhams@pfi.co.nz
CRAIG PEIRCE

Chief Finance and
Operating Officer
—
+64 21 248 6301
peirce@pfi.co.nz
PROPERTY FOR
INDUSTRY LIMITED

—
Level 4, Hayman
Kronfeld Building,
15 Galway Street,
Auckland 1010
—
PO Box 1147,
Shortland Street,
Auckland 1140

---

FY26
SUSTAINABILITY AND
CLIMATE REPORT.
FY26 SUSTAINABILITY AND CLIMATE REPORT

CONTENTS.
2
1. INTRODUCTION3
2. FY26 SUSTAINABILITY UPDATE5
3. FY26 CLIMATE-RELATED DISCLOSURES17
STATEMENT OF COMPLIANCE18
GOVERNANCE AND RISK MANAGEMENT19
STRATEGY22
METRICS AND TARGETS37
4. APPENDICES50
COVER IMAGE:
78 Springs Road -
Stage 2
7-9 Niall Burgess Road
FY26 SUSTAINABILITY
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INTRODUCTION
INTRODUCTION.
Property for Industry Limited (PFI) is an NZX
listed industrial property specialist, owning
over 90 quality properties worth more than
$2 billion. Our well diversified portfolio is
focused on strategic locations that drive
value and growth for the industrial sector,
for our tenants, and for our investors. Since
listing on the NZX in 1994, we’ve built a
strong track record of delivering consistent
returns. We invest for the long-term,
combining our capital and specialist industry
capability to deliver the successful outcomes
all our stakeholders need.
This report contains PFI’s FY26 Sustainability Update
and Climate-related Disclosures. All financial information
in this report is presented in New Zealand Dollars and
excludes GST.
Reporting period
This report covers the 12-month period from 1 July 2025
to 30 June 2026 (FY26), unless otherwise stated.
78 Springs Road -
Stage 2
FY26 SUSTAINABILITY
AND CLIMATE REPORT
APPENDICESFY26 SUSTAINABILITY UPDATEFY26 CLIMATE-RELATED DISCLOSURES
3

INTRODUCTION
1. Figures on this page are as at 30 June 2026.
124
TENANTS
$2.3b
CURRENT PORTFOLIO VALUATION
$121.0m
CONTRACT RENT
5.04 years
WEIGHTED AVERAGE LEASE TERM (WALT)
PORTFOLIO METRICS.
1
AUCKLAND
89%
CURRENT:OUT OF
AUCKLAND
11%
CURRENT:
PROPERT Y LOCATIONS:
94
PROPERTIES
78 Springs Road -
Stage 2: Solar Panels
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FY26 SUSTAINABILITY UPDATE
FY26
SUSTAINABILITY
U P D AT E.
At PFI, sustainability is about protecting and strengthening the
long-term value of our business. As a long-term owner of
industrial property, we believe doing the right thing by our
people, tenants, investors and the environment is fundamental
to long-term success.
The properties we own today will serve businesses and communities for
decades to come. That means the decisions we make around development,
refurbishment, energy efficiency and climate resilience matter, both
commercially and environmentally.
Our approach is focused on being practical, transparent and forward-looking.
We aim to clearly communicate the impacts our business has on people and
the planet, the risks and opportunities we see emerging, and the actions we are
taking to respond.
Over recent years, we have continued embedding sustainability into how we
invest, develop, maintain and manage our portfolio. This includes obtaining
operational performance ratings for selected buildings, targeting Green Star
certification for significant new developments, investing in energy performance
initiatives such as LED lighting and solar, and strengthening the resilience of
our portfolio to climate-related risks.
While the sustainability landscape continues to evolve, our focus remains
consistent: making sensible long-term decisions that support resilient
buildings, strong tenant relationships and sustainable returns for investors..
78 Springs Road -
Stage 2: LED lighting
5
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FY26 SUSTAINABILITY UPDATE
FY26 HIGHLIGHTS.
5 GREEN STAR5 GREEN STAR DEVELOPMENT PIPELINE
SOLAR PANEL
INSTALLATION
OPERATIONAL
PERFORMANCE
R AT I N G
OF TENANCIES IN
OUR PORTFOLIO
NOW HAVE FULL
LED LIGHTING.
AS BUILT RATINGS
ACHIEVED FOR TWO BUILDINGS AT
30–32 BOWDEN ROAD AND STAGE 1
AT 78 SPRINGS ROAD¹.
DESIGN RATING
ACHIEVED FOR STAGE 2 AT
78 SPRINGS ROAD.
COMMENCED CONSTRUCTION
AT TOTARA CREEK ESTATE AND
COMPLETED DEMOLITION FOR
UPCOMING DEVELOPMENT AT
92-98 HARRIS ROAD.
72%
793.7kW
GREEN BUILDINGS
OF THE PORTFOLIO BY
MARKET VALUE HAS
NOW ACHIEVED A GREEN
BUILDING RATING.
20%
LED UPGRADES
2 GREEN STAR PERFORMANCE
(ENERGY AND WATER
PATHWAY) CERTIFICATION
FOR THREE FURTHER
BUILDINGS SINCE FY25.
SEE PAGE 12.
SOLAR POWER CAPACITY
NOW INSTALLED ACROSS THE
PORTFOLIO.
SEE PAGE 13.
KEYSTONE EDUCATION TRUST
WE HAVE EXPANDED OUR
RELATIONSHIP WITH KEYSTONE
TRUST AND ARE NOW A
KEYSTONE KEY SCHOLARSHIP
PARTNER SPONSOR.
78 Springs Road - Stage 2: LED lighting
1. These buildings achieved a 5 Green Star Design rating in FY25 and final 5 Green Star Design and As-Built ratings during FY26.
6
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FY26 SUSTAINABILITY UPDATE
OUR
SUSTAINABILITY
STRATEGY.
CORE PRINCIPLES
PFI owns and manages long-term industrial
property assets that support businesses
operating across New Zealand’s industrial sector.
Because these assets are held for the long term,
sustainability considerations are closely linked to
the long-term resilience and performance of
our portfolio.

Our sustainability strategy focuses on embedding
sustainability into our core business activities and
decision-making. This includes how we develop,
refurbish, maintain and manage our buildings, and
how we respond to evolving tenant expectations,
investor requirements, regulation and climate-
related risks.
We recognise that sustainability is an ongoing
journey. As market expectations, technology and
regulation continue to evolve, our approach will
continue to adapt over time.
GREENHOUSE GAS
EMISSIONS
RESOURCES
AND WASTE
DISASTER AND
CLIMATE
RESILIENCE
PEOPLE AND
WELLBEING
ECONOMIC
VALUE
MATERIAL FOCUS AREAS
Create a future-
proofed and
resilient portfolio.
Maximise the useful
lifespan of buildings.
Become a trusted
partner for tenants.
Collaborate
with supply
chain partners
to minimise
environmental and
social impacts.
Maintain strong
employee
engagement and
health and safety
performance.
Maintain high
standards of
financial and
governance
performance.
Minimising emissions
associated with our
buildings, developments
and operations, while
improving energy
performance and
supporting lower-carbon
outcomes.
Improving resource
efficiency, reducing
waste impacts and
encouraging more
sustainable building
materials and
construction practices.
Improving the resilience
of our buildings and
portfolio to the physical
impacts of climate
change, including
flooding and rising
temperatures.
Supporting the health,
safety and wellbeing of
our employees, tenants,
contractors and wider
stakeholders.
Delivering sustainable
long-term economic
value for investors
while supporting
productive industrial
activity across
New Zealand.
7
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FY26 SUSTAINABILITY UPDATE
DELIVERING
OUR STRATEGY.
Delivery of our Sustainability Strategy is guided
by the transition planning elements of our
strategy (on pages 22-24), which focus
primarily on our existing portfolio and
development activities. Our transition plan is
centred around four key initiatives: Green Star
certification; sustainable refurbishments;
embedding climate resilience; and improving
operational performance.
Together, these initiatives are intended to support our
material focus areas by:
§
minimising Greenhouse Gas (GHG) emissions
§
improving resource efficiency and minimising waste
§
strengthening climate resilience across the portfolio
§
supporting long-term portfolio value and tenant outcomes.
Over the next several pages we highlight our progress in
delivering against our Sustainability Strategy, Transition Plan
and Targets.
TO MONITOR THE ONGOING ADVANCEMENT OF OUR STRATEGY AND
TRANSITION PLAN, WE MONITOR PROGRESS AGAINST THE FOLLOWING
TARGET AREAS.
Achieve 1.4MW of
solar capacity by the
end of FY27.
SOLAR SYSTEMS
80% of PFI’s tenancies to
have full LED lighting by
the end of FY28.
LED LIGHTING
Significant new buildings to
target minimum 5 Green Star
certification.
GREEN STAR
DEVELOPMENTS
EXISTING PORTFOLIO
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FY26 SUSTAINABILITY UPDATE
SUSTAINABLE DEVELOPMENT IN
ACTION: SPRINGS ROAD STAGE 2
Stage 2 of our Springs Road redevelopment in East
Tāmaki is a recent example of how we are creating
modern industrial facilities that deliver benefits for
tenants while minimising impacts on the environment.
Completed in April 2026, Stage 2 includes a purpose-built
6,500 sqm warehouse, manufacturing and office facility
for MiTek, a global supplier of construction technology,
engineered products and manufacturing solutions. The
facility was designed in close partnership with MiTek to
meet their specific operational requirements while
supporting their long-term growth ambitions. The building
has been awarded a 5 Green Star Design rating, reflecting
its high sustainability standards.
A range of sustainable features have been incorporated
throughout the development. These include rooftop solar
panels; EV charging infrastructure; rainwater harvesting;
low-flow fixtures and fittings; double glazing; LED sensor
lighting; and power metering systems that help optimise
energy consumption. Daylight harvesting technology
reduces electricity use by automatically adjusting lighting
levels based on natural light availability. Significant effort
CASE STUDY
was also made to minimise construction and demolition waste,
with ~92% of waste diverted from landfill.
The development also demonstrates PFI’s commitment to the
environment. Mature trees were retained where practical, native
planting was introduced, and landscaping was designed to
improve biodiversity and the appearance of this prominent site.
The development provides a high-quality, future-focused facility,
anchored by a 12-year lease for a global tenant, while contributing
to our goal of creating more sustainable industrial property assets
for the long term.
GREEN STAR CERTIFICATION
PFI has committed to targeting a minimum 5 Green Star
certification for all significant new buildings.
During developments, building materials such as concrete
and steel are procured from contractors. Extracting,
producing and shipping these materials have upstream
impacts such as GHG emissions and potential impacts
on local communities or biodiversity if not produced
responsibly. Waste is also generated during development
activities, for example from demolition of existing
structures and packaging of materials that are delivered
to site.
Green Star certification provides an independent
framework for assessing sustainability performance
across areas such as materials, energy, water, indoor
environment quality and climate resilience.
Green Star certification helps ensure our new
developments are designed and delivered with long-term
sustainability and operational performance in mind. The
certification process also encourages:
§
lower GHG emissions
§
more efficient building design
§
reduced waste impacts
§
improved climate resilience.
To support certification requirements, we obtain
independent Life Cycle Assessments (LCAs) for
developments targeting Green Star ratings. These
assessments enable us to understand the upfront
embodied carbon emissions associated with construction,
compared to a reference building of similar size and use.
To achieve 5 Green Star certification, developments
are required to demonstrate at least a 10% reduction
in upfront embodied carbon emissions compared to
a reference building, through lower-carbon design and
material choices.
Our Green Star commitment also supports broader
efforts to reduce construction waste and encourage more
sustainable development practices.
Since establishing our Green Star target in 2023, we have
completed four buildings that have achieved 5 Green
Star certification and have committed to targeting
5 Green Star certification for a number of upcoming
developments across the short to medium term.
A summary of these developments is provided in the
following pages.
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FY26 SUSTAINABILITY UPDATE
GREEN BUILDING
RATINGS ACHIEVED.
COMPLETED
$121.5m
PROPERTY
78 SPRINGS ROAD (STAGE 1)
R AT I N G
5 GREEN STAR DESIGN
& AS BUILT NZV1.0 RATING
9,161
~31%
COMPLETED
$64.1m
PROPERTY
30-32 BOWDEN ROAD (STAGE 1)
R AT I N G
5 GREEN STAR DESIGN
& AS BUILT NZV1.0 RATING
3,861~35%
COMPLETED
$40.8m
$
291.9m
PROPERTY
30-32 BOWDEN ROAD (STAGE 2)
R AT I N G
5 GREEN STAR DESIGN
& AS BUILT NZV1.0 RATING
4,870~21%
COMPLETED
$65.5m
PROPERTY
78 SPRINGS ROAD (STAGE 2)
R AT I N G
5 GREEN STAR DESIGN
& AS BUILT NZV1.1 DESIGN RATING
5,919~26%
AS AT 30 JUNE 2026
MARKET
VALUE
UPFRONT EMBODIED
CARBON EMISSIONS
(TCO
2
E)
TOTA L
EMISSIONS REDUCTION
(COMPARED TO
REFERENCE BUILDING)
10
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FY26 SUSTAINABILITY UPDATE
78 Springs Road - Stage 1: Signage
1. In some cases, developments registered for Green Building ratings are not fully committed projects.
Market value of these upcoming developments reflect market valuations as at 30 June 2026.
DEVELOPMENTS REGISTERED
FOR GREEN BUILDING RATINGS.
AS AT 30 JUNE 2026
1
PROPERTY
TOTARA CREEK ESTATE (STAGES 1, 2 AND 3)
TARGETED RATING
5 GREEN STAR DESIGN
& AS BUILT NZV1.1 RATING
PROPERTY
92-98 HARRIS ROAD
R AT I N G
REGISTERED WITH NZGBC UNDER THE
GREEN STAR DESIGN & AS BUILT NZV1.1
RATING TOOL.
TOTA L
FUTURE DEVELOPMENT
- STAGE 1 UNDER
CONSTRUCTION
UPCOMING
DEVELOPMENT –
DEMOLITION COMPLETE
MARKET
VALUE
PROPERTY
78 SPRINGS ROAD (STAGE 3)
R AT I N G
REGISTERED WITH NZGBC UNDER THE
GREEN STAR DESIGN & AS BUILT NZV1.1
RATING TOOL.
FUTURE
DEVELOPMENT
PROPERTY
304, 316 AND 318 NEILSON STREET
R AT I N G
REGISTERED WITH NZGBC UNDER THE
GREEN STAR DESIGN & AS BUILT NZV1.1
RATING TOOL.
FUTURE
DEVELOPMENT
$49.4m
$24.5m
$
30.6m
$
128.5m
$
24.0m
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FY26 SUSTAINABILITY UPDATE
OPERATIONAL PERFORMANCE AND
ENERGY EFFICIENCY
A significant proportion of PFI’s emissions comprise tenant
electricity consumed within tenant-occupied buildings.
(these are our Scope 3, Category 13 emissions).
As tenants increasingly electrify operations, machinery
and vehicle fleets over time, electricity demand across
industrial buildings is expected to grow. This creates an
opportunity to work alongside our tenants to improve
building operational performance across the portfolio.
Initiatives such as LED lighting upgrades and solar
installations can help reduce energy demand and improve
resilience and operational performance of our buildings.
Buildings with better operational performance also typically
consume less and cost the tenant less in power and water.
OPERATIONAL PERFORMANCE RATINGS
PFI is actively pursuing operational performance
certification for selected buildings in our core portfolio.
Operational performance ratings, such as Green Star
Performance, are used to assess the energy and
water efficiency of existing buildings and help identify
opportunities to improve operational performance.
Over the past two years, we have achieved Green Star
Performance certification under the Energy and Water
pathway for seven buildings (as set out in the table below).
Under this pathway, buildings are assessed against energy
and water performance criteria only, which limits the
number of stars that can be awarded to 3 Stars (compared
to the maximum of 6 Stars achievable under a full Green
PROPERTYMARKET VALUEDATE FIRST CERTIFIEDCURRENT RATING
6 Autumn Place$4.4m20252 Green Star Performance Rating NZv1.2
10 Autumn Place$16.2m20252 Green Star Performance Rating NZv1.2
102 Mays Road$15.8m20251 Green Star Performance Rating NZv1.2
23 Zelanian Drive$12.5m20251 Green Star Performance Rating NZv1.2
3-5 Niall Burgess Road$31.4m20262 Green Star Performance Rating NZv1.2
7-9 Niall Burgess Road$58.0m20262 Green Star Performance Rating NZv1.2
36 Neales Road$38.7m20262 Green Star Performance Rating NZv1.2
Total$177.0m
OPERATIONAL PERFORMANCE RATINGS AS AT 30 JUNE 2026
Star Performance rating). This certification is subject to
annual energy and water performance audits.
These buildings are now able to be classified as ‘Eligible
Assets’ under PFI’s Green Finance Framework, which
in turn, may allow PFI greater access to Green Finance
(Green Debt) from its lenders. Further information
on PFI’s Green Finance Framework is available at
https://www.propertyforindustry.co.nz/sustainability
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FY26 SUSTAINABILITY UPDATE
LED LIGHTING
PFI continues to identify opportunities to reduce building
electricity consumption through upgrading lighting across
our portfolio.
In 2025, we established a target for 80% of portfolio
tenancies to have full LED lighting by the end of FY28. As
at 30 June 2026, 72% of our tenancies had full LED lighting,
representing an increase of 9% from the prior year. LED
lighting upgrades improve energy efficiency and support
the reduction of operational emissions associated with
electricity use.
SOLAR
As New Zealand continues transitioning toward greater
electrification, demand on the electricity network is
expected to increase over time.
Solar installations help provide tenants with access to
renewable electricity while reducing their demand and
reliance on the national electricity grid. This initiative can
help improve energy resilience and contribute to lower
energy costs for our tenants.
We also see solar installations as an opportunity to
strengthen tenant relationships.
We established an initial solar target in 2023 and, having
met that target in 2024, we revised this target to install
1.4MW of solar capacity by the end of FY27.
As at 30 June 2026, we had installed solar systems across
nine buildings, representing almost 0.8MW of installed
renewable energy capacity (an increase of 0.06MW from
the prior year).
SUSTAINABLE REFURBISHMENTS
Improving existing buildings is a core part of PFI’s
Sustainability Strategy and Transition Plan.
Sustainable refurbishments can enable improved
sustainability performance, energy efficiency and climate
resilience while extending the useful life of existing
buildings. Refurbishments can also reduce upfront
embodied carbon emissions and waste by retaining and
reusing existing structures and materials where practical.
These projects also create opportunities to incorporate
features such as: solar panels; LED lighting; EV charging;
improved water efficiency; and lower-impact materials.
Our internal Sustainable Refurbishment Framework
helps guide our decisions by providing a flexible set of
sustainability considerations for applicable projects
and refurbishments. The framework supports initiatives
focused on:
§
minimising emissions
§
improving energy and water efficiency
§
minimising waste
§
increasing climate resilience
§
supporting renewable energy adoption.
During FY26 opportunities to deploy sustainable
refurbishments were limited. Notwithstanding this, PFI
has continued to work with tenants to identify practical
sustainability initiatives that can improve operational
performance and tenant outcomes, for example through
LED lighting upgrades and installation of EV chargers and
solar panels.
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FY26 SUSTAINABILITY UPDATE
CLIMATE RESILIENCE FRAMEWORK
PHYSICAL RISK
ASSESSMENTS
Undertaking physical risk assessments as part of
our climate-related risks and opportunities
assessment, and as part of due diligence prior to
the acquisition of new properties.
REFURBISHMENTS
AND PROJECTS
Working with our contractors to identify and
incorporate climate resilient features into our
buildings as part of projects or wider refurbishment
activities over time.
DEVELOPMENTS
As part of targeting 5 Green Star certification,
undertaking Climate Adaptation Plans to help
identify and implement climate adaptation
measures into the design of new buildings.
EXISTING
PROPERTIES
Embedding climate resilience into our day-to-day
facilities management activities via planned
proactive maintenance. We aim to minimise the
impact of severe weather events through regular
and proactive maintenance and capital expenditure.
The framework focuses on these four key areas:
EMBEDDING CLIMATE RESILIENCE
PFI faces a range of risks arising from climate change
including regulatory change, increasing demand for
sustainable and climate-resilient buildings, changing
investor and funder preferences, and impacts from
physical climate hazards (e.g., flooding and rising
temperatures), driving the need to ensure PFI’s portfolio is
both sustainable and resilient. Further information on PFI’s
climate-related risks can be found on pages 29-31.
Preparing the business and portfolio for the physical
and transition impacts of climate change has been an
ongoing focus for PFI, and PFI’s Sustainability Strategy
and Transition Plan are designed with this in mind. PFI has
implemented an internal Climate Resilience Framework,
which identifies the opportunities and actions PFI could
consider to mitigate climate change impacts and improve
the climate resilience of its properties. The extent to which
these are implemented will vary depending on the specific
circumstances of the properties, including landlord and
tenant needs, and cost considerations.
FY22 FY23 FP24 FY25 FY26
EMPLOYEE
TURNOVER
11%4%0%4%4%
PEOPLE AND WELLBEING
PFI strives to ensure our people are safe and engaged,
and we aim to promote positive social impacts through
our operations. PFI also interacts with a wide range of
stakeholders, for whom we want to contribute to a safe and
positive working environment.
TEAM ENGAGEMENT
Maintaining strong employee engagement continues to
be a focus for us as an employer. Our 2026 engagement
survey – with a 100% participation rate – achieved an
employee engagement score of 88%. This high level of
team engagement is also reflected in our low employee
turnover during FY26 of 4%.
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FY26 SUSTAINABILITY UPDATE
HEALTH, SAFET Y AND WELLBEING
The health, safety and wellbeing of our team and those we
work with remains a priority.
We provide a range of wellbeing initiatives and support
programmes, including:
§
A flexible working policy
§
Staff health and safety induction and ongoing training
§
A staff wellbeing programme that includes periodic health
checks, insurances, and mental health support
§
An annual ‘Wellness Week’, which includes a focus on
health and wellbeing of our staff
§
A contemporary parental leave policy.
PFI has implemented a Health, Safety and Wellbeing Manual
that provides a practical and enduring system to ensure our
approach to health, safety and wellbeing complies with the
Health and Safety at Work Act. The manual sets out our
objectives, policies, risk management controls and
responsibilities across our team.
The development, maintenance and ongoing management
of our properties presents a range of risks to our tenants,
contractors and other visitors to those properties, such as
those arising from electrical hazards, roof access and fire
risks. Risk management initiatives for our properties include:
§
Prequalification requirements and induction for
contractors
§
Periodic and independent property risk assessments
§
Asbestos management protocols
§
Requirements for safety plans and site inspections for
development projects
§
Governance and incident review through our health and
safety committee.
1. This table covers all health and safety incidents that resulted in injuries that have been reported to PFI by our contractors, tenants and PFI’s
staff.
HEALTH AND SAFETY INCIDENTS
FY22
12 MONTHS
FY23
12 MONTHS
FP24
6 MONTHS
FY25
12 MONTHS
FY26
12 MONTHS
Total incidents resulting in injuries14137919
The health and safety incidents in the table below reflect incidents that were reported to us across our operations
1
:
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FY26 SUSTAINABILITY UPDATE
COMMUNIT Y ENGAGEMENT
Supporting our wider community remains important to PFI
and our people.
During FY26 we continued to support the Keystone New
Zealand Property Education Trust, becoming a Keystone
Key Scholarship Partner Sponsor. During FY26, PFI paid
the Trust $13,725 by way of sponsorship. This sponsorship
helps support students pursuing tertiary education and
careers within the property and construction sectors.
We participated in a team charity day with TeamUp Events,
building bikes to be donated to students at a local school
who do not have their own.
We also paid $24,858 in donations to worthy causes
serving our communities during FY26.
MODERN SLAVERY
PFI is committed to respecting and supporting the
wellbeing and human rights of our employees, contractors,
suppliers and all those who we engage with in our day-to-
day operations.
We are working to prepare for modern slavery legislation
currently before New Zealand’s Parliament and have
created a workplan to support our efforts to identify,
assess and address modern slavery risks within our
operations and supply chain.
ECONOMIC VALUE
PFI’s portfolio supports a broad range of industrial
businesses across New Zealand by providing high-quality,
fit-for-purpose industrial property.
At the same time, we aim to deliver long-term economic
value for investors through disciplined portfolio
management, prudent capital management and a long-
term approach to sustainability and resilience.
We firmly believe that sustainability and climate
considerations are linked to long-term portfolio
performance. Embedding these considerations into
investment, development, refurbishment and asset
management decisions is intended to strengthen the
resilience, desirability and long-term value of the portfolio
as market expectations continue to evolve.
78 Springs Road - Stage 2: Property Site Tour with
Keystone New Zealand Property Education Trust students
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CLIMATE-RELATED DISCLOSURES
CLIMATE-RELATED
DISCLOSURES.
This section contains PFI’s Climate-related
Disclosures for the 12-month period to 30
June 2026 (FY26).
PFI’s Climate-related Disclosures are for Property for
Industry Limited (the Company) and its subsidiaries P.F.I.
Property No. 1 Limited (PFI No. 1) and P.F.I. Cover Limited
(PFI Cover) (collectively, the Group, PFI or we).
78 Springs Road -
Stage 2
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CLIMATE-RELATED DISCLOSURES
PFI is a climate reporting entity under
the Financial Markets Conduct Act 2013.
These Climate-related Disclosures comply
with the Aotearoa New Zealand Climate
Standards (NZ CS 1, 2 and 3) issued by the
External Reporting Board (XRB).
In preparing this report, PFI has elected to
use the following adoption provisions in
NZ CS 2:
§
Adoption Provision 2, which exempts
PFI from disclosing anticipated financial
impacts in its fourth reporting period.
§
Adoption Provision 8, which permits
PFI to exclude its Scope 3 emissions
disclosures from the scope of GHG
assurance engagements for reporting
periods ending before 31 December
2027. Accordingly, PFI’s Scope 1 and 2
emissions in respect of FY26 are subject
to a limited assurance engagement.
While PFI has disclosed its Scope 3
emissions, these emissions have not
been assured. PFI relies on the Financial
Markets Conduct (Climate-related
Disclosures – Assurance Engagement)
Exemption Notice 2025, which exempts
PFI from seeking assurance over
Scope 3 GHG emissions statements, as
otherwise required by section 461ZH(1)
of the Financial Markets Conduct
Act 2013.
The Climate-related Disclosures contained
in this report are signed on behalf
of Property for Industry Limited and
authorised for issue on 14 September 2026.
DISCLAIMER
Climate change is an evolving challenge,
with high levels of uncertainty. This report
sets out PFI’s approach to scenario analysis,
our understanding of, and response to, PFI’s
climate-related risks and opportunities,
the transition planning aspects of PFI’s
strategy, and our current and anticipated
impacts of climate change, including current
financial impacts. This reflects our current
understanding as at 14 September 2026.
We acknowledge that this will evolve over
time, and this report contains estimates and
assumptions about future external physical and
transitional changes driven by climate change
and their anticipated impacts on our business.
These representations are subject to significant
uncertainties and assumptions.
This report contains forward looking
statements, including climate scenarios,
targets, assumptions, climate projections,
forecasts, statements of PFI’s future intentions,
transition planning, estimates and judgements.
These statements involve assumptions,
forecasts and projections about PFI’s present
and future strategies and the environment in
which PFI will operate in the future, which are
inherently uncertain and subject to limitations,
particularly as to inputs, available data and
information which is likely to change. The
risks and opportunities described here, and
our strategies to achieve our targets, may not
eventuate or may be more or less significant
than anticipated.
There are many factors that could cause
PFI’s actual results, impacts, performance
or achievement of climate-related metrics
(including targets) to differ materially from
that described, including economic and
technological viability, as well as climatic,
government, consumer, and market factors
outside of PFI’s control.
The disclosed qualitative financial impacts
and quantitative data are inherently subject
to limitations and uncertainties. These have
been described at pages 35-36. PFI has sought
to provide a reasonable basis for forward-
looking statements and is committed to
progressing our response to climate-related
risks and opportunities over time but we are
constrained by the novel and developing nature
of this subject matter. We remain committed
to reporting our progress each year, but we
caution reliance on aspects of this report that
are necessarily less reliable than other aspects
of our annual reporting.
With the exception of PFI’s Scope 1 and Scope
2 emissions for FY26, the disclosures and
metrics in this report have not been assured.
Nothing in this report should be interpreted
as capital growth, earnings or any other legal,
financial, tax or other advice or guidance. To
the fullest extent possible, PFI disclaims liability
for any loss suffered as a result of reliance on
this report.
STATEMENT OF
COMPLIANCE.
DEAN BRACEWELL
Board Chair
CAROLYN STEELE
Audit and Risk Committee Chair
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BOARD OF DIRECTORS
§
Oversees PFI’s strategy and performance, including PFI’s Sustainability Strategy and Transition Plan.
§
Establishes a framework for recognising and managing all business risks, including climate-related risks.
§
Oversees, reviews and approves PFI’s Risk Management Framework.
§
Oversees, reviews and approves PFI’s Climate-related Disclosures.
AUDIT & RISK COMMITTEE
§
Assists the Board with risk management, including review of PFI’s Risk Management Framework.
§
Reviews PFI’s Company-wide risk register and climate-related risks and opportunities annually.
§
Ensures appropriate metrics and targets for measuring and managing climate-related risks and opportunities are set and
monitored in consultation with the Board and Management.
§
Reviews and provides recommendations to the Board on PFI’s Climate-related Disclosures.
SENIOR LEADERSHIP TEAM (SLT)
Comprised of PFI’s Chief Executive Officer, Chief Finance and Operating Officer, Head of Sustainability and
Operations, General Counsel and Company Secretary and Portfolio Manager
§
Leads PFI’s Sustainability Strategy and the day-to-day management of PFI’s climate-related risks and opportunities.
§
Meets frequently (including nine times in FY26) and monitors progress against PFI’s strategy and targets.
§
Reports PFI’s progress and response to climate-related risks and opportunities to the Board quarterly.
HEAD OF SUSTAINABILIT Y AND OPERATIONS
§
Leads the identification, assessment and management of PFI’s climate-related risks and opportunities.
§
Aims to ensure alignment between PFI’s strategy and management of climate-related risks and opportunities.
§
Reports progress on climate-related matters to the SLT via SLT meetings.
§
Leads the preparation of PFI’s Climate-related Disclosures.
MANAGEMENT SUSTAINABILIT Y MEETINGS
§
Attended by members of the Property and Facilities Management teams, who manage the day-to-day operations and play
a critical role in implementing PFI’s Sustainability Strategy and targets.
§
Attendees meet at least every two months (including seven times during FY26) to discuss sustainability-related topics
in the context of property and facilities management, including the execution of PFI’s Sustainability Strategy and
performance against targets.
§
Reports progress to the SLT (via the Head of Sustainability and Operations).
This section describes PFI’s approach
to governance and management of
climate-related risks and opportunities.
GOVERNANCE STRUCTURE
The following table summarises the governance structure
for oversight and management of climate-related risks and
opportunities. A summary of recent key Board
engagements relating to climate-related matters can be
found in Appendix 1.
GOVERNANCE AND
RISK MANAGEMENT.
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GOVERNANCE BODY OVERSIGHT
CLIMATE-RELATED RISKS AND
OPPORTUNITIES
PFI’s Board of Directors is responsible for oversight of
climate-related risks and opportunities affecting PFI. The
Board oversees PFI’s overall performance and strategy,
as well as its Sustainability Strategy and management of
climate-related matters. The Board is also responsible for
recognising and managing all business risks and ensuring
effective risk management systems are in place to protect
PFI’s assets, including for climate-related risks, supported
by the Audit and Risk Committee.
The Audit and Risk Committee and the Board review
PFI’s Risk Register annually, which provides a view of
the Company’s overall business risks. Climate-related
risks are embedded in several of PFI’s business risks,
including our strategic, financial, operational, ESG, property
and reputational risks. PFI’s climate-related risks and
opportunities are reviewed and presented to PFI’s Directors
annually. Risk is also a standing agenda item at quarterly
Board meetings and Audit and Risk Committee meetings.
CLIMATE-RELATED METRICS AND TARGETS
PFI’s Audit and Risk Committee and Board oversee the
development of metrics and targets to measure and
manage PFI’s climate-related risks and opportunities.
As PFI makes progress against set targets, PFI’s Board
oversees the refresh of PFI’s climate-related targets as
appropriate. The Board monitored progress against agreed
targets at quarterly Board meetings during FY26, and
monitors metrics at least annually at Board meetings,
including once in FY26. The Board also oversees the
achievement of sustainability-related targets incorporated
in the SLT’s short-term incentives. Further information
on metrics and targets can be found in the Metrics and
Targets Section.
STRATEGY IMPLEMENTATION
PFI’s Board considers climate-related risks and
opportunities when reviewing and overseeing
implementation of PFI’s overall strategy, plans and budgets.
Management of climate-related risks and opportunities
associated with our existing portfolio is an important
strategic consideration for PFI. Climate-related risks and
sustainability matters are one of a number of factors
the Board considers as part of PFI’s due diligence for
acquisitions and in decisions to divest properties. Further
information on PFI’s strategy and Transition Plan can be
found on pages 22-24.
BOARD SKILLS AND COMPETENCIES
PFI’s Board aims to ensure that the Board maintains the
right mix of skills and competencies to effectively deal with
current and emerging issues of the business, including
climate-related risks and opportunities. PFI’s Directors
review the Board’s skills and competencies annually, which
includes a self-assessment of their skills and experience
across a range of topics, including climate-related skills.
Four Directors have assessed themselves as having
some climate-related skills and experience. Outside of the
Directors’ individual professional development activities
in FY26, PFI facilitated Board training led by an external
specialist on climate-related disclosure and ESG matters
to help maintain and strengthen the Board’s climate-related
expertise.
MANAGEMENT’S ROLE
With contribution from the SLT, PFI’s Head of Sustainability
and Operations leads the identification, assessment,
and management of PFI’s climate-related risks and
opportunities and supports the integration of sustainability
and climate-related considerations into the Company’s
strategy and decision making.
The SLT are responsible for promoting good risk practices
by their teams, in accordance with PFI’s Risk Management
Framework. Sustainability and climate-related matters are
discussed at SLT meetings (including at seven out of the
nine SLT meetings held during FY26). At these meetings,
SLT considered emerging risks, regulatory developments,
market trends, and progress against PFI’s sustainability
targets, strategy and transition planning. Management
decisions on PFI’s responses to climate-related risks and
opportunities can be made through this forum.
During FY26, PFI held seven management sustainability
meetings with members of the Property and Facilities
Management teams to monitor and track progress on key
sustainability targets and initiatives to manage climate-
related risks and opportunities. Outcomes from these
meetings are reported to the SLT, and the SLT engage with
PFI’s Board and Audit and Risk Committee on climate-
related risks and opportunities, progress against targets,
and risk responses via reporting at Board and Audit and
Risk Committee meetings. The frequency of Management’s
engagement with the Board and Audit and Risk Committee
during FY26 is described in Appendix 1.
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IDENTIFICATION AND ASSESSMENT OF
CLIMATE-RELATED RISKS
PFI’s Risk Management Framework, approved by the Board,
governs our approach to identifying and assessing risks,
including climate-related risks. PFI’s Risk Management
Framework is reviewed two-yearly, and is next due to be
reviewed in 2027.
In line with this framework, climate-related risks are
identified by reviewing previously identified climate-related
risks and considering any changes to the internal and
external environment. Climate-related risks are further
assessed across each climate scenario and adapted to
reflect how they may evolve in each plausible scenario
and across each time horizon (climate scenarios and time
horizons considered in this risk assessment are described
on pages 25-28). Risks are then assessed and prioritised
against a risk matrix of likelihood of the risk occurring
and consequences to PFI, should it occur. The framework
provides an ‘inherent risk rating’ and a ‘residual risk rating’,
which can be assessed as low, medium or high risk. The
residual risks are determined by assessing any changes
to consequences and likelihood, considering PFI’s current
responses to mitigate this risk.
Our climate-related risk assessment is also informed
by an analysis of physical hazards for PFI’s portfolio of
properties. PFI has assessed the exposure of its portfolio
to selected physical climate hazards by reference to the
following tools:
§
S&P Global Climanomics platform (Climanomics), which
indicates that the most significant hazards to PFI’s
portfolio are pluvial and fluvial flooding and extreme
temperatures;
§
NIWA’s extreme sea level flood maps (1%AEP and up to
2m sea level rise); and
§
Local Council flood maps.
Further information on the assumptions, limitations and
uncertainties underlying these physical hazard models
are set out in Appendix 4. Further information on PFI’s
vulnerability to material physical climate hazards can be
found in the Metrics and Targets section.
PFI’s climate-related risk and opportunity assessment
considers impacts across its value chain, including PFI’s
direct operations, and upstream and downstream activities.
No material parts of the value chain are excluded from
this assessment.
MANAGING CLIMATE RELATED RISKS AND
INTEGRATION INTO RISK MANAGEMENT
Decisions on PFI’s management and responses to
climate-related risks and opportunities, including whether
to mitigate, accept, transfer or control these risks and
opportunities are made by the SLT with oversight from the
Board. Actions being taken to respond to and manage PFI’s
most material climate-related risks are reflected in PFI’s
Transition Plan and inform capital deployment decisions,
acquisition due diligence, development and refurbishment
planning, and facilities management and maintenance
programmes. Actions being taken to respond to and
manage PFI’s material climate-related risks are set out in
the Strategy Section.
PFI’s overall risk management processes integrate climate-
related risks. Climate risk is subject to the same risk
management processes as our other risks, with oversight
by the SLT, the Audit and Risk Committee, and the Board.
Risks are discussed at SLT meetings and reports on risk
management (including management of climate-related
risks) are provided to the Audit and Risk Committee and
Board at least annually. Our corporate risk register includes
consideration of climate-related risks.
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PFI’S STRATEGY
PFI’s strategy is to own quality industrial property in
strategic locations, support our tenants and continually
improve the productivity and performance of the
portfolio. As a professional landlord, our business model
broadly covers:
§
leasing existing properties to
industrial tenants;
§
portfolio management
through acquisitions and
divestments;
§
refurbishment and
development activities; and
§
coordinating repairs, maintenance and capital
projects for our buildings through our internal facilities
management team.
In recent years, PFI has focused on prioritising value
creating opportunities through accretive development
opportunities and acquisitions that have the potential to
increase shareholder returns beyond current levels. We
believe integrating sustainability into our decision making
and portfolio planning helps to support long-term value
creation through improved asset resilience, operational
performance and portfolio quality.
PFI’s Sustainability Strategy is described on page 7. The
transition planning aspects of PFI’s overall business
strategy align with PFI’s Sustainability Strategy. Further
information on PFI’s Transition Plan can be found below.
TRANSITION PLANNING ASPECTS
OF STRATEGY
PFI recognises that the impacts of climate change require
us to be responsive and make strategic decisions to
address climate-related risks and realise opportunities.
PFI’s scenario analysis, and identification of climate-
related risks and opportunities (as set out in this section)
demonstrate that there is scope for PFI to evolve its
activities to effectively manage the risks and realise the
opportunities arising as the global and domestic economy
transitions towards a low-emissions, climate resilient future
state. Building from the core principles in our Sustainability
Strategy (see page 7), the transition planning aspects of
our strategy focus on improving the sustainability, energy
performance and climate resilience of our buildings.
This section describes the scenario analysis
PFI has undertaken, the climate-related risks
and opportunities we have identified in our
work to date, our current and anticipated
impacts of climate change, and how we plan
to position our business towards a low
emissions, climate-resilient future.
STRATEGY.
PFI’s Transition Plan outlines initiatives that are critical to
our overall strategy and to help position PFI in the transition
to a lower carbon, more climate resilient future. These
initiatives (described on pages 23-24) require PFI to make
strategic decisions regarding its existing portfolio and new
acquisitions, including whether to:
§
retain and upgrade existing buildings (via a sustainable
refurbishment or project);
§
demolish and re-develop existing buildings (seeking
Green Star certification); or
§
divest properties and recycle capital to fund sustainable
refurbishments, Green Star developments or acquisitions.
PFI’s climate-related risks and opportunities, along with
actions being taken to respond to those risks and
opportunities, are described further on pages 29-34.
ALIGNMENT WITH CAPITAL DEPLOYMENT
AND FUNDING PROCESSES
Understanding and regularly reviewing the long-term
strategy for each property is critical to enabling PFI to
understand whether and when to deploy capital to upgrade
existing buildings to be more sustainable and climate
resilient or achieve a Green Building rating. Property
strategies will adapt over time based on market conditions,
changes in tenant, owner and funder preferences, and tenant
demand. PFI’s Transition Plan provides a high-level overview
of how we incorporate emissions minimisation and
climate resilience into decision-making (including capital-
deployment and funding decisions), noting that climate
change is one of a number of factors in strategic decision-
making for the portfolio.
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CLIMATE-RELATED DISCLOSURES
TRANSITION
PLAN.
The transition planning aspects of our strategy aim to embed emissions minimisation initiatives
and climate resilience in key strategic decisions to retain and upgrade, demolish and redevelop, and
acquire or divest properties. More information on PFI’s climate-related risks and opportunities is
provided on pages 29-34.
FOCUS AREAOUR INITIATIVES
RELEVANT CLIMATE-
RELATED RISKS AND
OPPORTUNITIES
POTENTIAL IMPACT ON
GHG EMISSIONS
SHORT-TERM ACTIONS
(PRESENT TO 2032)KEY DEPENDENCIES
CAPITAL MANAGEMENT
DECISIONS
EXISTING PORTFOLIO:
Upgrade PFI’s existing
buildings, including
acquisitions, to incorporate
sustainability, climate
resilience and energy
efficiency.
Sustainable
Refurbishments
Apply PFI’s Sustainable
Refurbishment
Framework to applicable
refurbishment projects.
Refer to page 13 for
further information on
PFI’s Sustainable
Refurbishment
Framework.
Risk: Climate-related
regulatory change, tenant
and purchaser demand
for sustainable buildings,
and changing investor
and funder preferences
and funding
requirements.
Opportunity: Improve
energy efficiency and
operational performance
via sustainable
refurbishments.
Sustainable
refurbishments may
enable PFI to reduce
Scope 3 emissions,
including by minimising
Category 2 emissions
(upfront embodied carbon)
through reusing existing
structures and using lower
carbon building materials,
and reducing Category 13
emissions (electricity use
in tenanted buildings)
through solar installations
and LED upgrades.
Continue applying
Sustainable Refurbishment
Framework to applicable
projects.
Actively engage with
tenants regarding potential
sustainability initiatives.
Achieve 1.4MW solar
capacity by the end of
FY27 (0.8MW solar
capacity installed as at 30
June 2026).
Upgrade 80% of PFI’s
tenancies to have full LED
lighting by the end of FY28
(72% of tenancies with full
LED lighting as at 30 June
2026).
Tenant demand and
collaboration, and financial
feasibility.
Funding to include
sustainable or climate
resilience features into our
existing buildings can be
incorporated into our:
§Annual maintenance
capex planning (for
example, through
LED lighting upgrades
to improve energy
efficiency or HVAC
replacements when
equipment reaches end
of useful life).
§Approval processes
for lease-related
capex (for example,
to incorporate tenant
specific sustainability
/ resilience features as
part of securing new or
renewing leases).
We also consider exposure
to climate risks as part of
acquisition decisions.
Embed Climate
Resilience
Implement PFI’s Climate
Resilience Framework to
improve the resilience of
PFI’s buildings and
portfolio to climate-
related physical risks.
Refer to page 14 for
further information on
PFI’s Climate Resilience
Framework.
Risk: Tenant and
purchaser demand for
climate resilient buildings,
changing investor and
funder preferences and
funding requirements,
flooding, and rising
temperatures.
Opportunity: Build
resilience of PFI’s
portfolio against physical
climate risks.
Building resilience against
electricity infrastructure
failures via solar
installations may
contribute to reductions in
PFI’s Scope 3 Category 13
emissions.
Continue to incorporate
climate resilience features
into existing buildings as
part of wider
refurbishments and
projects and embed
climate resilience into
daily facilities
management activities
(including through planned
preventative maintenance
and capex planning).
Tenant collaboration and
financial feasibility.
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CLIMATE-RELATED DISCLOSURES
FOCUS AREAOUR INITIATIVES
RELEVANT CLIMATE-
RELATED RISKS AND
OPPORTUNITIES
POTENTIAL IMPACT ON
GHG EMISSIONS
SHORT-TERM ACTIONS
(PRESENT TO 2032)KEY DEPENDENCIES
CAPITAL MANAGEMENT
DECISIONS
Operational Performance
Ratings
Measure emissions from
electricity consumed at
tenanted buildings and
maintain operational
performance ratings for
selected properties in
PFI’s portfolio.
Risk: Climate-related
regulatory change, tenant
and purchaser demand
for sustainable buildings,
and changing investor
and funder preferences
and funding
requirements.
Opportunity:
Gain accreditation for
some buildings via
operational performance
ratings, secure Green
Finance.
Operational performance
ratings may enable PFI to
identify actions to reduce
its Scope 3, Category 13
emissions (electricity use
in tenanted buildings), for
example, through solar
installations and LED
upgrades to minimise
electricity use.
PFI continues to measure
building electricity
consumption data via
metering.
Maintain operational
performance ratings for
selected properties in the
portfolio, and identify
actions to reduce building
energy consumption.
Tenant collaboration
(ratings are often
impacted by tenant use
and operations) and
financial feasibility of
upgrading buildings to
meet standards required
by operational
performance ratings.
DEVELOPMENTS:
Incorporate sustainability and
climate resilience into
significant new
developments and brownfield
redevelopments, which are
targeting a green building
certification.
Green Star
Certification
Significant new
developments and
redevelopments to
target 5 Green Star
certification. This aims
to reduce emissions
from development
activities and address
climate-related risks by
improving climate
resilience and energy
performance of our
buildings and reducing
operational costs
for our tenants.
Risk: Climate-related
regulatory change,
tenant and purchaser
demand for sustainable
and / or resilient
buildings, changing
investor and funder
preferences and
funding requirements,
flooding, and rising
temperatures.
Opportunity: Gain
Green Star certification,
build climate resilience,
secure Green Finance.
Green Star certification
enables PFI to address
Scope 3 emissions,
including by reducing
Category 2 emissions
(upfront embodied carbon)
through design and by
using lower carbon
building materials, and
minimising Category 13
emissions (electricity use)
through implementing
energy efficiency into the
design of the building.
Work through
opportunities to redevelop
existing properties to
target Green Star
certification.
Target 5 Green Star
certification for all
significant new buildings.
Development, availability
and cost of lower carbon
materials and
technologies (such as
lower carbon concrete and
steel), financial feasibility,
and tenant demand.
Opportunities for Green
Star certification are
considered as part of the
approval process for
developments and
acquisitions.
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TIME HORIZONS
Climate change is a fundamental shift in our external
environment that requires decisions to be made now with
the implications spanning multiple years. PFI’s scenario
analysis, climate-related risks and opportunities, and
targets consider short-term, medium-term and long-term
time horizons that align with PFI’s strategic planning.
1. Beca Limited, Climate Scenarios for the Construction and Property Sector, Ngā Horopaki Āhuarangi mō te Rāngai Hanganga me ngā
Whare, New Zealand Green Building Council (2023). Along with other stakeholders in the industry, PFI was involved in overseeing the
development of these sector scenarios as part of the Technical Working Group created by the NZGBC. The development of these sector
scenarios involved engagement of sector stakeholders, identifying and prioritising climate drivers, selecting climate pathways, and
developing sector narratives. These scenarios used a range of data sources, including from Intergovernmental Panel on Climate Change
(IPCC) and MfE reports, Statistics NZ, MBIE, the Climate Change Commission, and Network for Greening the Financial System (NGFS).
2. When reviewing the sector scenarios, PFI has assessed transition risk in a greater than 3°C scenario to be higher than anticipated
by NZGBC and Beca. PFI has particularly focused on the impacts of extreme physical climate hazards (e.g., flooding and rising
temperatures) driving increased demand for climate-resilient buildings among tenants, investors, funders and insurers.
SCENARIO ANALYSIS
PFI’s scenario analysis process draws heavily on the
climate scenarios constructed by the New Zealand Green
Building Council (NZGBC) and Beca Limited (Beca) for the
property and construction sector in 2023
1
. These scenarios
have helped us to consider the resilience of our business
and strategy to climate-related risks and opportunities
faced by PFI and our sector generally. PFI’s climate-related
risks and opportunities were assessed against these
scenarios with oversight from the SLT and reviewed by the
Board. PFI’s scenario analysis forms part of PFI’s climate
risk and opportunity assessment, which in turn is used to
inform PFI’s corporate strategy.
The scope of operations covered in the scenario analysis
process included the full supply chain, including tenants,
suppliers and funders. Our scenario analysis considered a
1.5°C ‘Orderly’ scenario, a less than 2°C ‘Disorderly’
scenario, and a greater than 3°C ‘Hot House World’
scenario
2
. A description of each scenario is outlined on
pages 26-28.
HORIZONPERIODDESCRIPTION
Short termPresent - 2032Within PFI’s weighted
average lease term (WALT)
(1-6 years)
Medium term2033 - 2050The period in which PFI
anticipates spending
major CAPEX at most
properties (6-25 years)
Long term2051 - 2100The anticipated life of a
building (25+ years)
These time horizons are set out below:
78 Springs Road -
Stage 2
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ORDERLY SCENARIO: 1.5°CDISORDERLY SCENARIO: <2°CHOT HOUSE WORLD SCENARIO: >3°C
EMISSIONS
REDUCTION
PAT H WAY
The world successfully limits global warming to
1.5°C above pre-industrial temperatures. This
scenario presents medium to high transition risk for
PFI due to a greater focus on decarbonisation.
Significant decarbonisation is delayed until 2030.
Global warming is limited to below 2°C above
pre-industrial levels by 2100. The sector faces high
transition risk after 2030 as entities rush
to decarbonise.
Global warming reaches >3°C above pre-industrial
levels by 2100. The sector faces extreme physical
climate risks, particularly towards the end of the
century. In a Hot House World scenario PFI expects
transition risks will continue as a consequence of the
extreme physical impacts of climate change,
particularly as adaptation and climate resilience
are prioritised.
POLICY AND
R E G U L ATO R Y
CHANGE
Decarbonisation policies are enacted immediately
and smoothly. The building and construction sector
is adopting and prioritising decarbonisation policies
in the 2020s, including energy and carbon limits for
new buildings, requirements to disclose energy and
carbon performance for existing buildings, removal
of fossil fuels and retrofits for energy efficiency over
the medium term.
Emissions continue to rise during the 2020s, until
there is a sudden shift in global policy around 2030.
Abrupt and stringent decarbonisation policies are
enacted in the 2030s, and significant regulatory
changes demand an immediate step change in
building energy and carbon requirements.
No further decarbonisation policies are enacted and
emissions continue to rise. Regulatory changes are
slow and focus on adaptation and managing climate
driven immigration / refugees. Mandates are
introduced to conserve energy for critical functions,
as asset and infrastructure damages due to climate
change are realised.
ENERGY
TRANSITION
New Zealand’s electricity grid reaches near 100%
renewable by 2050. Electricity prices increase in the
2020s and 2030s as rapid decarbonisation puts
pressure on grid capacity. Shortfalls in generation
capacity become more frequent increasing risk of
blackouts. In the short-term, this drives demand for
on-site electricity generation, and the expansion of
alternative fuels (such as hydrogen and biofuels).
Electrification is slow during the 2020s, and the
electricity sector is unprepared for the sudden
increase in demand in 2030, which leads to supply
constraints. These constraints result in more
frequent blackouts and fluctuations in
electricity prices.
New Zealand’s electricity grid is gradually
decarbonised further in line with current policies.
Increasing frequency and severity of acute weather
events (e.g. storms) result in more frequent and
severe damage to electricity assets and more
frequent and longer blackouts.
While there have been no revisions to the sector scenarios since they were first constructed in 2023,
we consider that these scenarios continue to be relevant to PFI, as many entities within the property
and construction industry will face the same challenges resulting from climate change.
CLIMATE
SCENARIOS.
Climate scenarios represent a plausible and challenging description of how the future may develop based on assumptions about potential
climate-related impacts. Climate scenarios are not intended to be probabilistic or predictive, or to identify the ‘most likely’ outcomes of
climate change. Climate scenarios are intended to help entities develop their internal capacity to better understand and prepare for the
uncertain future impacts of climate change.
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ORDERLY SCENARIO: 1.5°CDISORDERLY SCENARIO: <2°CHOT HOUSE WORLD SCENARIO: >3°C
SOCIAL AND
BEHAVIOURAL
CHANGE
Social changes start to occur in the 2020s, due to
changes in market behaviour, working habits,
required knowledge/skills, purchasing and
investment behaviours, and the changing focus of
government funding. Significant behavioural change
results in an increased demand for energy efficient
buildings, increased pressures on public transport,
the rise of circular business models and a higher
consumer awareness regarding low
carbon buildings.
Minimal social changes occur prior to 2030, however
the pace of change around 2030 is unprecedented.
Carbon intensive industries are either rapidly
decarbonised, divested from, or progressively
regulated out of existence. Communities impacted
by this rapid change are not well supported to adapt.
A significant breakdown of social cohesion occurs,
with heat stress and mental health impacts from
climate change at record levels. Food insecurity and
growing populations drive retreat from cities. People
begin to retreat from areas at risk from physical
impacts and significant managed retreat from
coastal areas moves populations inland to areas that
are less vulnerable to climate hazards.
MARKET CHANGE
Due to increasing market awareness of climate
change risks and the need to decarbonise, entities
that fail to set and meet ambitious science-based
emission reduction targets also face reputational
risks, loss of market share, and scrutiny from
customers, shareholders, and competitors. These
reputational and market risks affect the sector
significantly in the short to medium term. Existing
building re-use and adaptive re-use are in demand
rather than new builds. Changes in carbon pricing
results in the cost and lead-times for low carbon
materials and products increasing through the 2020s
and 2030s, but they become more cost and time
effective than traditional materials by 2040.
Initially the construction and property sector is slow
to decarbonise, but ‘fast movers’ get the opportunity
to utilise materials, capital, and knowledge while late
movers are disadvantaged when demand peaks
post-2030.
Limited investment during the 2020s means the
spike in demand for low carbon materials, low energy
technology and onsite generation in 2030 causes
significant disruption for the sector. Competition for
availability of products, materials, professional
advice and competent installers impacts significantly
on both new building and retrofit projects resulting in
escalation in development costs.
Physical impacts of climate change drive an
increasing need for climate adaptation. For example,
the need to retrofit buildings and infrastructure to be
more heat and flood resilient. Some assets become
stranded as building codes increasingly become
more stringent regarding the need for buildings to
withstand climate impacts (such as storm events,
extreme rainfall, heatwaves, and floods).
Existing low carbon materials are readily available
due to low demand but there is little innovation
beyond technologies and materials currently
available. Investment is prioritised towards
adaptation and climate resilience.
CLIMATE
SCENARIOS.
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ORDERLY SCENARIO: 1.5°CDISORDERLY SCENARIO: <2°CHOT HOUSE WORLD SCENARIO: >3°C
TECHNOLOGY
Technology matures to a point where the world is on
track to achieve net zero CO2 emissions globally by
2050. The implementation of new technology
increases pressure on technical and skilled labour
supply. As technology matures there is a reduction in
focus on hard-to-abate emissions associated with
some construction materials (e.g. concrete, steel,
aluminium). This unlocks capital for more cost-
effective decarbonisation strategies.
New technologies haven’t been developed in time for
the spike in demand in 2030, leading to disruption of
the building and materials market and competition
for materials and products that impacts new
buildings and retrofit development. This leads to
significant price escalations and construction delays.
The pace of change also generates significant
financial incentives for innovation, specifically for
carbon sequestration, capture and storage which
must play a large role in carbon emissions by 2050.
Technology change remains slow across all sectors.
There is little investment in technology and
innovation that does not serve pressing adaptation
needs. This increases our reliance on current
extractive technologies, which become more
expensive as material resources become scarcer.
LAND USE
Land use change due to increased forestry
sequestration continues through to 2050, but the
extent is limited and has marginal impacts on food
production and biodiversity.
Land use change due to increased forestry
sequestration takes place out to 2050 and there are
moderate impacts on food production and
biodiversity as rapid decarbonisation efforts
significantly expand the extent of managed forests.
Current policies are entrenched seeing New
Zealand’s reliance on carbon sequestration through
forestry increase significantly out to 2050 in an
attempt to offset continued increases in emissions.
PHYSICAL RISK AND
INSURANCE
In response to continued high intensity rainfall
events, properties in floodplains, or subject to
unstable ground conditions, experience increasing
insurance premiums above inflation and experience
insurance retreat by 2050. The threat of late century
sea level rise is being priced into property valuations
in the short term and premiums on some coastal
properties increase to the point of permanent
unprofitability, leading to them being stranded.
The pace of insurance retreat is accelerating.
Properties in floodplains experience increasing
insurance premiums above inflation and experience
insurance retreat by 2040. Premiums on some
coastal commercial properties increase to the point
of permanent unprofitability, leading to them being
stranded by 2030.
Centralised infrastructure will show failures and
stresses, with some assets becoming stranded due
to the physical impacts of climate change.
Consequently, local councils increase rates to invest
in protection and restoration of certain assets. The
pace of insurance retreat accelerates. Properties in
floodplains experience increasing insurance
premiums and likely experience insurance retreat by
2040. Properties lose value and become stranded
assets. Premiums on coastal commercial properties
may increase to the point of permanent
unprofitability, leading to them being stranded
by 2030.
CLIMATE
SCENARIOS.
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RISK DESCRIPTION
RELEVANT TIME HORIZON
AND CLIMATE SCENARIO
REASONABLY ANTICIPATED
IMPACTS IF RISK MATERIALISESRISK RESPONSE
TRANSITION RISK
TIME
HORIZON
CLIMATE
SCENARIO
RESIDUAL
RISK
R AT I N G
Policy Risk -
Climate-related Regulatory Change
Policy and regulatory change relating to
decarbonisation and climate resilience (for
example, on building materials and design,
land use, operational performance ratings,
and restrictions on water and energy use)
may require PFI to retrofit or upgrade
existing buildings to meet evolving
regulatory standards.
Short,
Medium,
Long
Orderly,
Disorderly,
Hot House
Medium /
High
§Increased capital expenditure deployed towards
retrofit and development activities to upgrade
buildings to a sustainable and climate-resilient
standard.
§Flow on impacts due to increased demand for
lower carbon materials, including increased
development costs and a reduction in feasibility
of projects.
§Devaluation of properties that do not meet new
regulatory standards.
§We closely monitor and work with industry bodies
to respond to regulatory changes and comply
with new regulations.
§We are continuing to execute PFI’s Sustainability
Strategy and Transition Plan to improve
operational performance and climate resilience.
§We are continuing to pursue initiatives to install
LED lighting and solar, and target 5 Green Star
certification for significant new developments.
Market Risk -
Tenant and Purchaser Demand for
Sustainable Buildings
Increased tenant and purchaser demand for
sustainable buildings, increasing the need
for PFI to invest in retrofitting or upgrading
existing buildings to maintain tenant
demand, occupancy levels and asset values.
Short,
Medium,
Long
Orderly,
Disorderly,
Hot House
Medium /
High
§Increased capital expenditure deployed towards
retrofit and development activities to upgrade
buildings to a sustainable standard.
§Flow on impacts due to increased demand for
lower carbon materials, including increased
development costs and a reduction in feasibility
of projects.
§Devaluation of properties that are not considered
to be sustainable.
§Difficulty re-letting buildings that are not
considered to be sustainable.
§We have a target of 5 Green Star certification for
all significant new buildings.
§We are working to drive stronger operational
performance of existing buildings through
projects to install solar and LED lighting
upgrades.
§We have achieved operational performance
ratings for selected buildings.
In FY26, we reviewed PFI’s climate-related risks across the above three climate scenarios. Further
information on PFI’s approach and processes to identifying and assessing climate-related risks can
be found in the Governance and Risk Management Section.
CLIMATE-
RELATED RISKS.
This process has assisted us to identify what we consider to be PFI’s material climate-related risks. A summary of these risks, along with
the associated anticipated impacts is illustrated below.
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RISK DESCRIPTION
RELEVANT TIME HORIZON
AND CLIMATE SCENARIO
REASONABLY ANTICIPATED
IMPACTS IF RISK MATERIALISESRISK RESPONSE
TRANSITION RISK
TIME
HORIZON
CLIMATE
SCENARIO
RESIDUAL
RISK
R AT I N G
Market Risk - Tenant and Purchaser
Demand for Resilient Buildings
Increased tenant and purchaser demand for
buildings that are resilient to the physical
impacts of climate change, increasing the
need for PFI to invest in retrofitting or
upgrading existing buildings to maintain
tenant demand, occupancy levels and asset
values.
Medium,
Long
Disorderly,
Hot House
Medium /
High
§Increased capital expenditure deployed towards
retrofit and development activities to upgrade
buildings to withstand physical climate change
impacts.
§Difficulty re-letting buildings that are not climate
resilient.
§Devaluation of properties vulnerable to physical
impacts of climate change.
§We apply an internal Climate Resilience
Framework to incorporate climate resilience into
our existing buildings through wider sustainable
refurbishments, and facilities management
activities.
§Climate adaptation plans are completed for major
developments which assist with designing new
buildings to be more resilient to the expected
physical impacts of climate change.
Market Risk - Changing Investor and Funder
Preferences and Funding Requirements
Failure to meet changing expectations of
investors and funders in relation to
climate-related targets and initiatives,
decarbonisation and climate resilience,
particularly where existing buildings do not
meet evolving sustainability standards.
Short,
Medium,
Long
Orderly,
Disorderly,
Hot House
Medium /
High
§Reputational damage, negative media attention
and scrutiny from funders, investors, and key
stakeholders.
§Reduced ability to access capital due to changing
investor appetite.
§Higher debt costs due to changing lender
appetite.
§We disclose progress against climate-related
targets and initiatives annually.
§We regularly engage with our investors and
funders to understand expectations.
§We have set climate-related targets and have
governance over their delivery as set out in this
report.
§We have established a Green Finance Framework
which supports the progressive certification of
PFI’s properties to a Green Star standard.
CLIMATE-
RELATED RISKS.
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RISK DESCRIPTION
RELEVANT TIME HORIZON
AND CLIMATE SCENARIO
REASONABLY ANTICIPATED
IMPACTS IF RISK MATERIALISESRISK RESPONSE
PHYSICAL RISK
TIME
HORIZON
CLIMATE
SCENARIO
RESIDUAL
RISK
R AT I N G
Acute - Flooding
Increased severity and frequency of intense
rainfall events lead to pluvial and fluvial
flooding and cause temporary inundation
and damage to PFI’s properties and
surrounding infrastructure.
Short,
Medium,
Long¹
Orderly,
Disorderly,
Hot House
Medium /
High
§Damage to, or accelerated deterioration of,
PFI’s assets and surrounding infrastructure
(and exposure to increased reactive repairs and
maintenance costs).
§Disruptions to supply chains, construction
timelines, and tenant’s operations.
§Devaluation of properties vulnerable to damage
from pluvial and fluvial flooding.
§Increased insurance claims, leading to higher
insurance premiums, reduced insurance coverage
for certain perils and insurance retreat.
§Increased property rates.
§Increased pressure from tenants, investors,
and funders to improve the climate-resilience
of PFI’s buildings, resulting in increased capital
expenditure deployed towards resilience-related
property upgrades to mitigate impacts of climate
change.
§We review portfolio physical climate risks
periodically and review climate risks as part of
due diligence for new acquisitions.
§We apply an internal Climate Resilience
Framework to incorporate climate resilience into
our existing buildings through wider sustainable
refurbishments, and facilities management
activities.
§We aim to reduce physical impacts through
proactive property maintenance.
§We have a target of 5 Green Star certification for
all significant new buildings, which incorporates
climate resilience measures.
§We manage insurance risk through PFI’s captive
insurance programme. This forms part of a long-
term insurance strategy to position PFI to obtain
prudent levels of insurance.
Chronic - Rising Temperatures
Increased average temperatures and more
frequent and intense heat events lead to
thermal stress on buildings and give rise to
increased cooling demand across PFI’s
portfolio.
Medium,
Long²
Disorderly,
Hot House
Medium /
High
§Increased energy consumption, leading to impacts
on operational performance certification.
§Increased demand on HVAC systems (leading to
faster HVAC degradation and upgrades).
§Demand from tenants to improve or increase air-
conditioning and temperature control within PFI’s
buildings, resulting in increased capital expenditure
towards upgrades.
§We apply an internal Climate Resilience
Framework to incorporate climate resilience into
our existing buildings through wider sustainable
refurbishments, and facilities management
activities.
§We aim to reduce physical impacts through
proactive property maintenance.
CLIMATE-
RELATED RISKS.
1. PFI expects the risk associated with pluvial and fluvial flooding to be relevant over a short, medium and long term time horizon, noting that the impacts of this risk are expected to become significantly more
severe over time.
2. PFI expects the risk associated with rising temperatures to be relevant over a medium and long term time horizon, noting that the impacts of this risk are expected to become significantly more severe over time.
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We have also identified climate-related opportunities, which may be used to manage PFI’s climate-
related risks. The following climate-related opportunities have been identified and are being
progressed by PFI.
OPPORTUNITY
DESCRIPTION
OPPORTUNITY TYPE, TIME HORIZON AND
RELEVANT CLIMATE SCENARIO
ANTICIPATED IMPACT IF
OPPORTUNITY IS REALISEDRESPONSE
OPPORTUNITY
OPPORTUNITY
TYPE
TIME
HORIZON
RELEVANT
CLIMATE
SCENARIO:
Sustainable Refurbishments
Opportunity to minimise
emissions, improve the
operational performance of
some buildings in our existing
portfolio and improve building
value and desirability by
applying PFI’s Sustainable
Refurbishment Framework
to applicable refurbishment
projects.
TransitionShort, Medium,
Long
Orderly, DisorderlyAnticipated impacts of sustainable refurbishments
could include:
§An increase in capital expenditure deployed
towards retrofit activities to upgrade existing
assets to be energy efficient and climate resilient.
§Potential positive impacts on valuations,
occupancy and rental income if properties are
upgraded.
Upgrading existing assets via sustainable
refurbishments is already a core element of
PFI’s Transition Plan and business strategy. In
recent years, PFI has applied its Sustainable
Refurbishment Framework to applicable
projects, undertaken solar installations and LED
lighting upgrades, and engaged with a number
of tenants on sustainability initiatives.
Green Star Certification
for New Buildings
Opportunity to use Green Star
certification as a differentiator
for our new buildings, which
may improve building value
and desirability. Through Green
Star certification, PFI has
the opportunity to minimise
embodied and operational
emissions and address market
and regulatory risks, which
may drive demand for low
carbon, energy efficient and
climate resilient buildings.
TransitionShort,
Medium,
Long
Orderly, Disorderly,
Hot House
Anticipated impacts of Green Star certification
could include:
§An increase in capital expenditure deployed
towards development activities to upgrade
properties to meet Green Star certification.
§Potential positive impacts on valuations,
occupancy and rental income for properties that
have achieved Green Star certification.
§Potential opportunity to obtain Green Finance.
Brownfield and Greenfield developments are
already a core element of PFI’s Transition Plan
and business strategy, with PFI’s current target
that all significant developments target a
minimum 5 Green Star certification. As at 30
June 2026, PFI has achieved 5 Green Star
certification for four newly developed buildings
in its portfolio.
CLIMATE-RELATED
OPPORTUNITIES.
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OPPORTUNITY
DESCRIPTION
OPPORTUNITY TYPE, TIME HORIZON AND
RELEVANT CLIMATE SCENARIO
ANTICIPATED IMPACT IF
OPPORTUNITY IS REALISEDRESPONSE
OPPORTUNITY
OPPORTUNITY
TYPE
TIME
HORIZON
RELEVANT
CLIMATE
SCENARIO:
Operational Performance
Ratings
Opportunity to gain
accreditation for some
buildings in PFI’s existing
portfolio via operational
performance ratings.
TransitionShort,
Medium
Orderly, DisorderlyAnticipated impacts of operational performance
ratings could include:
§An increase in retrofit activities to upgrade
existing assets to be energy efficient.
§Potential positive impacts on valuations,
occupancy and rental income for properties with
operational performance ratings.
§Potential opportunity to obtain Green Finance.
Operational performance ratings are an area of
focus to improve our existing portfolio of
properties. Over the last few years, PFI has:
§ Installed power metering and monitoring at
a majority of PFI’s properties as a first step
towards measuring energy performance.
§Achieved Green Star Performance (Energy and
Water only pathway) certification for seven
buildings in its portfolio.
Building Climate Resilience
Opportunity to embed climate
resilience into PFI’s portfolio.
Physical Short, Medium,
Long
Orderly, Disorderly,
Hot House
Anticipated impacts of building climate resilience
could include:
§An increase in capital expenditure deployed
towards retrofit and development activities to
upgrade properties to be more resilient.
§A reduction in the number of insurance claims
and improvement in insurer appetite.
§Potential positive impacts on valuations,
occupancy and rental income for properties that
are resilient to climate change impacts.
Improving climate resilience and mitigating the
impacts of climate change is a focus area in
PFI’s Transition Plan. Key initiatives undertaken
during FY26 include:
§Conducting physical risk assessments for the
portfolio, and as part of due diligence for new
acquisitions;
§Completing planned proactive maintenance;
and
§Incorporating climate resilience into the
design of Green Star developments.
CLIMATE-RELATED
OPPORTUNITIES.
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OPPORTUNITY
DESCRIPTION
OPPORTUNITY TYPE, TIME HORIZON AND
RELEVANT CLIMATE SCENARIO
ANTICIPATED IMPACT IF
OPPORTUNITY IS REALISEDRESPONSE
OPPORTUNITY
OPPORTUNITY
TYPE
TIME
HORIZON
RELEVANT
CLIMATE
SCENARIO:
Green Finance
Opportunity to secure Green
Debt under PFI’s Green
Finance Framework to support
progressive action towards
our strategic objectives and
Green Star targets.
TransitionShort, MediumOrderly, DisorderlyAnticipated impacts of Green Finance include the
opportunity to access capital at potentially
lower rates.
We have established a Green Finance
Framework which supports the progressive
certification of PFI’s properties to a
Green Star standard.
CLIMATE-RELATED
OPPORTUNITIES.
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CURRENT PHYSICAL IMPACTS
PFI did not observe material physical impacts of climate
change during FY26, including weather-related insurance
claims. Therefore, PFI did not experience any material
financial impacts from physical hazards during FY26.
CURRENT TRANSITION IMPACTS
Sustainable buildings
PFI has continued to progress its pipeline of development
opportunities registered for Green Star certification. During
FY26, PFI has:
§
completed its major development at Stage 2 at 78
Springs Road, which has now achieved a 5 Green Star
Design & As Built NZv1.1 Certified Design rating;
§
progressed demolition works at Stage 3 at 78 Springs
Road;
§
completed the demolition of existing buildings and
infrastructure at 92-98 Harris Road in preparation for its
future redevelopment (likely to be tenant-led); and
§
commenced construction of its greenfield development
at Totara Creek Estate on a speculative basis.
Targeting 5 Green Star certification for all significant new
developments is a key initiative in PFI’s Transition Plan (see
pages 23-24), and has enabled us to incorporate energy
and water efficiency initiatives, embed climate resilience
and lower emissions of the new buildings.
PFI has identified a potential market opportunity to obtain
operational performance ratings for selected properties,
which help prepare PFI for potential regulatory change in
this space, and tenant and purchaser demand for
sustainable buildings. During FY26, PFI obtained Green Star
Performance (Energy and Water Only pathway) certification
for a portfolio of three buildings, which achieved a 2 Star
Green Star Performance rating.
During FY26, PFI continued to seek opportunities to apply
its Sustainable Refurbishment Framework, however,
implementation opportunities were limited. Despite these
constraints, PFI progressed sustainability initiatives across
the portfolio, including LED lighting upgrades, skylight
replacements, and solar feasibility investigations.
The current financial impacts to PFI associated with Green
Star developments, operational performance ratings, and
incorporating sustainability into our existing buildings
during FY26 are as follows:
§
approximately $38.6m in gross capital expenditure
towards the delivery of Green Star developments.
1
§
approximately $1.6m in gross capital expenditure
towards sustainability-related projects (excluding capital
expenditure towards PFI’s Green Star developments,
noted above).
2
§
pursuing Green Star certification and Green Star
Performance ratings has enabled us to grow our
portfolio of Green Buildings to $469m (an increase of
$193m from FY25), supported by $200m of Green loans
as at 30 June 2026.
3

§
Green Buildings are now generating around $24.3m in
contract rental income (an increase of $11.2m from
FY25), which represents 20.1% of PFI’s total contract
rent as at 30 June 2026.
1. The capital expenditure deployed towards Green Star developments during FY26 reflects gross capex and does not separate the incremental
spend that is ‘climate-related’ from general development costs, nor does it provide an estimate of additional costs incurred for undertaking
Green Star developments (therefore the gross spend also includes costs that are not ‘climate-related’). Although we are unable to reliably
estimate the incremental costs incurred for developing these buildings to a Green Star standard, additional costs associated with seeking 5
Green Star certification include costs to implement energy and water efficiency measures, use of low impact building materials and products,
and additional consultant fees to support the certification process.
2. Total sustainability-related capital expenditure during FY26 has been captured where projects have been identified as including a
‘sustainability feature’ and therefore also includes general project costs that are not ‘climate-related’.
3. Following the post-balance date refinancing (announced on 17 July 2026), PFI has increased the proportion of Green loans to $350m.
PFI has experienced the following current
climate-related impacts and financial
impacts during FY26.
CURRENT CLIMATE-
RELATED IMPACTS
AND FINANCIAL
IMPACT.
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Climate resilience
During FY26, PFI continued seeking opportunities to
apply its internal Climate Resilience Framework. Climate
resilience is a key initiative in PFI’s Transition Plan (see
pages 23-24) and responds to the risk of increased
demand for climate-resilient buildings among tenants,
purchasers, investors and funders, and the physical
impacts of climate change, including flooding and rising
temperatures. PFI has also recognised that implementing
PFI’s Climate Resilience Framework presents an
opportunity to improve the resilience of our assets. See
page 14 for further information on PFI’s Climate Resilience
Framework.
The current financial impacts to PFI associated with the
risk of increased demand for climate-resilient buildings and
the opportunity to embed climate resilience are captured
in PFI’s capital expenditure. Capital expenditure towards
resilience-related property upgrades during projects and
developments is included within the total sustainability-
related expenditure and development expenditure noted on
page 35.
During FY26, PFI also spent approximately $3.1m in capital
expenditure towards HVAC repairs or upgrades, and roof
repairs and maintenance works. While these activities
support the resilience of our buildings against climate-
related impacts, this expenditure also includes spend for
general building maintenance purposes and therefore
includes costs that are not ‘climate-related’. This capital
expenditure is not included in the sustainability-related
project costs noted above.
78 Springs Road -
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36

CLIMATE-RELATED DISCLOSURES
ELECTRICITY FROM TENANTED BUILDINGS |
OPERATIONAL WASTE | BUSINESS TRAVEL
UPSTREAM EMISSIONS
SCOPE 3
CORPORATE EMISSIONS
SCOPE 1 AND 2
DOWNSTREAM EMISSIONS
SCOPE 3
GOODS AND SERVICES | CAPITAL GOODS |
ELECTRICITY TRANSMISSION AND DISTRIBUTION
LOSSES | EMPLOYEE COMMUTING
FUGITIVE EMISSIONS FROM HVAC SYSTEMS |
DIESEL EMISSIONS FROM SPRINKLER SYSTEMS |
PURCHASED ELECTRICITY
% TOTAL FOOTPRINT
EMISSIONS SOURCE
15,687.3
TONNES OF C02E
74.8%
11,727.3 TONNES
0.7%
109.0 TONNES
24.5%
3,851.0 TONNES
OUR FY26 CARBON FOOTPRINT
METRICS AND TARGETS.
This section describes the metrics and
targets set to measure and manage PFI’s
climate related risks and opportunities.
GREENHOUSE GAS EMISSIONS
PFI’s Scope 1, Scope 2 and Scope 3 emissions for FY26 are set out on the pages that follow. PFI engaged PricewaterhouseCoopers (PwC)
to provide limited assurance for PFI’s FY26 Scope 1 and Scope 2 emissions (but not Scope 3).
Further information on PFI’s calculation methodology, assumptions, limitations, uncertainties, consolidation approach, emissions factors,
and excluded emissions is detailed in Appendix 2. PwC’s GHG assurance report is provided in Appendix 3.
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SCOPEC AT E G O R Y
NOTE
(SEE PAGE
39)
RESTATED
FY23 (TCO
2
E)
12 MONTHS
RESTATED
FP24 (TCO
2
E)
6 MONTHS
1
RESTATED
FY25 (TCO
2
E)
12 MONTHS
FY26 (TCO
2
E)
12 MONTHS
SCOPE 1NOT ASSUREDNOT ASSURED
LIMITED
ASSURANCE
LIMITED
ASSURANCE
Direct EmissionsFugitive emissions (refrigerants)41.268.753.789.4
Fuel5.62.413.411.6
Total Scope 1 Emissions46.871.167.1101.0
SCOPE 2NOT ASSUREDNOT ASSURED
LIMITED
ASSURANCE
LIMITED
ASSURANCE
Indirect EmissionsElectricity consumption (location based)14.42.29.18.0
Total Scope 1 and Scope 2 Emissions51.273.376.2109.0
SCOPE 3NOT ASSUREDNOT ASSUREDNOT ASSURED
NOT ASSURED
Other Indirect
Emissions
Category 1: Purchased goods and services1,244.2506.11,052.31,274.3
Category 2: Capital goods (upfront embodied carbon emissions from developments)2Not applicable3,861.014,031.05,919.0
Category 2: Capital goods (other capital goods expenditure)34,209.91,636.92,913.14,501.7
Category 2: Capital Goods subtotal4,209.95,497.916,944.110,420.7
Category 3: Energy and fuel0.50.20.73.3
Category 5: Waste generated in operations0.50.10.30.5
Category 6: Business travel25.043.651.022.4
Category 7: Employee commuting17.711.029.328.9
Category 13: Downstream leased assets4Not measured
in FY23
669.35,093.03,828.2
Total Scope 3 Emissions5,497.86,728.223,170.715,578.3
TOTAL Scope 1, 2 and 3 Emissions5,549.06,801.523,246.915,687.3
OUR GHG EMISSIONS.
1. tCO
2
e figures for FP24 reflect the six-month period between 1 January 2024 and 30 June 2024 due to PFI’s balance date change to 30 June, and are therefore not comparable with emissions for prior or
subsequent years (which reflect a 12-month reporting period).
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NOTES TO OUR GHG EMISSIONS TABLE
1 PFI’s Scope 2 emissions are comprised of purchased
electricity consumption at PFI’s head office, vacant
properties and common areas within PFI’s portfolio of
properties for which PFI has operational control over the
electricity consumed.
2 Scope 3 Category 2: Capital Goods (upfront embodied
carbon emissions from developments) have been
restated for FY23, FP24 and FY25 to reflect a change in
methodology and finalisation of Life Cycle Assessments
(LCA) for completed developments at 30-32 Bowden
Road and Stage 1 at 78 Springs Road. Further detail on
this restatement can be found in Appendix 2.
In FY26 these emissions include total upfront embodied
carbon emissions for the development at Stage 2 at 78
Springs Road, which achieved practical completion
during the reporting period. During FY26, PFI also spent
capital expenditure towards the ongoing development at
Stage 1 at Totara Creek Estate. The upfront embodied
carbon emissions for this development will be reported
on completion and has therefore not been included in
FY26 emissions reporting.
3 Scope 3 Category 2: Capital Goods (other capital goods
expenditure) have been estimated using a consumption-
based model for capital goods expenditure for all
properties. These emissions do not include upfront
embodied carbon emissions from developments. As
such, the construction-related expenditure at Stage 2 at
78 Springs Road and Stage 1 at Totara Creek Estate have
been excluded to avoid double counting. Expenditure
related to demolition works at Stage 3 at 78 Springs
Road and 92-98 Harris Road are included in these
emissions figures, as demolition works are not captured
within the scope of LCA reports.
4 PFI’s Scope 3 Category 13 emissions include emissions
relating to our tenants’ electricity consumption in PFI’s
tenanted buildings. PFI reported Scope 3 Category 13
emissions for the first time in FP24 using actual
measured metering data for a limited number of
properties. Therefore, the emissions reported for FP24
do not represent the total emissions associated with
building electricity use across the whole portfolio. PFI
now has electricity consumption data available for most
of its tenanted properties via metering. Reported
emissions for FY25 onwards reflects both an increase in
activity data available via metering and the extrapolation
method used to estimate emissions for remaining
properties. Refer to Appendix 2 for further detail on the
uncertainties, assumptions and limitations of these
estimated emissions.
Totara Creek Estate -
Stage 1
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CLIMATE-RELATED DISCLOSURES
EMISSIONS PERFORMANCE
PFI does not currently have an absolute or intensity
emissions reduction target. See pages 7-13 for more
information on PFI’s strategy to minimise our emissions,
along with the transition plan aspects of our strategy on
pages 22-24 setting out our planned initiatives to
minimise emissions associated with our buildings.
SCOPE 1 AND 2
PFI’s Scope 1 and 2 emissions are very small when
compared to the scale of Scope 3 emissions from
developments and electricity use at tenanted buildings.
While our Sustainability Strategy focuses on managing
these more material impacts, we acknowledge that we
need to be mindful of our direct footprint. In recent years,
PFI has upgraded a significant number of HVAC systems
across our portfolio to systems that use lower-impact
refrigerant gases and introduced processes to manage
electricity use at vacant properties.
We intend to continue to work on initiatives to further
minimise our gross Scope 1 and 2 emissions going
forward, including:
§
Installing lower-impact HVAC systems when older
systems reach end of life;
§
Continuing to minimise power usage at vacant sites
and PFI’s office where possible; and
§
Monitoring for new technologies that would enable us
to make further advances.
PFI’s Scope 1 fugitive emissions have increased in FY26
compared to FY25 and FP24 (noting that FP24
represents a 6-month period). These emissions are due
to ad-hoc refrigerant leaks from HVAC systems and are
difficult to predict. The increase in PFI’s FY26 fugitive
emissions was primarily driven by a large leak of refrigerant
gas during the reporting period, which accounted for ~29%
of PFI’s total Scope 1 emissions in FY26.
PFI’s Scope 1 fuel emissions associated with diesel usage
for sprinkler systems have increased in FY25 and FY26
compared to FP24, attributable to commissioning and
servicing of sprinkler systems at PFI’s recently completed
developments.
PFI’s Scope 2 emissions associated with electricity use at
PFI’s head office, vacant properties and properties with
common areas has fluctuated over the last few reporting
periods. This was driven by significant changes between
the Ministry for the Environment’s 2024, 2025 and 2026
emissions factors, and changes in vacancies in the
portfolio.
SCOPE 3
PFI’s Scope 3 emissions comprise 99.3% of PFI’s measured
GHG emissions footprint for FY26. PFI’s material emissions
impacts are Category 2 (Capital Goods), and Category 13
(Downstream Leased Assets).
PFI’s Sustainability Strategy and Transition Plan (see pages
22-24) focus on minimising both embodied and
operational emissions of our buildings. We have committed
to:
§
building and refurbishing in a way that minimises both
embodied and operational emissions where practicable
(e.g., via Green Star certification and sustainable
refurbishments); and
§
measuring and over time improving the operational
performance of our buildings.
PFI’s Scope 3 Category 2 emissions, accounting for 66.4% of
PFI’s FY26 measured GHG emissions, has fluctuated over the
last few reporting periods, primarily due to the timing of the
completion of the development works. As full upfront
embodied carbon emissions have been reported on
completion, these emissions are expected to fluctuate over
time as PFI completes new developments.
Scope 3 Category 13 emissions associated with electricity
consumption at tenanted buildings account for 24.4% of PFI’s
FY26 total measured GHG emissions. These emissions were
reported for the first time in FP24, and the increase in
emissions from FP24 to FY25 onwards is reflective of an
increase in visibility over the electricity consumed by tenants
via metering and the extrapolation method used to estimate
emissions across the whole portfolio of properties in FY25
and FY26. There was also a change in emission factors
between the Ministry for the Environment’s 2024, 2025 and
2026 emission factors, which contributed an uplift of 38.7% in
FY25 compared to FP24, and a decrease of 22.2% in FY26
compared to FY25. Electricity use in PFI’s tenanted buildings
is expected to vary depending on tenant operations. PFI also
anticipates an increase in these emissions over time,
particularly as tenants are expected to increasingly electrify
their operations.
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OFFSETS
We have offset our measured FY26 Scope 1, 2 and selected
categories of Scope 3 emissions
1
with voluntary certified
carbon credits. These carbon credits are sourced from a
project that helps to deliver forest protection, biodiversity
conservation and water quality protection.
2
INTERNAL EMISSIONS PRICE
As in FP24 and FY25, PFI does not currently use an internal
emissions price for its business activities. PFI has a small
team, and relevant staff members have developed an
understanding of PFI’s material emissions impacts (in
particular, the impacts of developments, refurbishments
and building operation) through regular management
meetings. At this stage, PFI does not consider that setting
an internal emissions price will add material incremental
value to the business’s decision-making with regards to
carbon impacts.
1. Including waste, business travel, employee commuting, and energy and fuel; but excluding purchased goods and services, capital goods, and
downstream leased assets.
2. These carbon credits are certified under the Plan Vivo (UK) carbon credit standard and are retired on the Markit Environmental Registry.
3. PFI does not calculate intensity metrics for the following Scope 3 emissions: Purchased Goods and Services, other Capital Goods (not
associated with developments), Energy and Fuel, Waste, Business Travel and Employee Commuting.
4. The upfront embodied carbon emissions intensity for FY25 has been restated to reflect final LCA reports, and reflects the combined
emissions intensity for two developments completed during FY25.
GHG EMISSIONS INTENSIT Y METRICS
3
GHG EMISSIONS
INTENSITY METRIC
FP24
(TCO
2
E)
FY25
(TCO
2
E)
FY26
(TCO2E)COMMENTARY
Scope 1 + 2 GHG
emissions (tCO
2
e)/sqm
lettable area
0.000080.000080.00011Scope 1 and 2 GHG emissions intensity increased in FY26
when compared to FP24 and FY25. This increase is largely
attributable to the increase in Scope 1 and 2 emissions
compared to prior reporting periods, primarily driven by an
increase in Scope 1 fugitive emissions during FY26.
Scope 3 Category 13
emissions (tCO
2
e)/sqm net
lettable area
Not
measured
0.0070.006Emissions intensity for Category 13 emissions has not been
calculated for FP24. Scope 3, Category 13 emissions
intensity decreased slightly in FY26 compared to FY25,
primarily attributable to a change in MfE emission factors
resulting in a decrease in overall Scope 3, Category 13
emissions.
Scope 3, Category 2 upfront
embodied carbon
emissions associated with
completed developments
(tCO
2
e)/sqm gross lettable
area
0.3080.27240.345This intensity metric has been calculated using the upfront
embodied carbon emissions from Life-Cycle Assessments
(LCAs) prepared for developments targeting Green Star
certification. LCAs estimate emissions associated with
the construction of these buildings ‘at completion’. Scope
3, Category 2 emissions intensity reflects the emissions
intensity of developments that were completed during the
applicable reporting period.
Further to developments completed in previous reporting
periods, in FY26, PFI completed one development with an
emissions intensity of 0.345 tCO2e per sqm gross lettable
area. The emissions intensity of completed developments
has fluctuated between reporting periods, primarily due to
differences in the scale of the buildings and external areas,
materials used and total upfront embodied carbon emissions
between each development project.
This data is subject to the uncertainties and limitations
of LCA data set out in Appendix 2. This intensity metric
does not cover all Scope 3, Category 2 emissions, however
upfront embodied carbon emissions is one of PFI’s largest
emissions sources.
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The key metrics used to measure and manage our climate-related risks and opportunities are set out
below. We consider these metrics to be most relevant to PFI’s industry and business model. PFI uses
these metrics to understand and assess the extent to which our assets and business activities are
vulnerable to climate-related transition and physical risks and to track progress on climate-related
initiatives.
METRIC
FP24
6 MONTHS
FY25
12 MONTHS
FY26
12 MONTHSCOMMENTARY
ASSETS / BUSINESS ACTIVITIES VULNERABLE TO PHYSICAL RISKS¹
MAAL % due to
pluvial and
fluvial flooding
0.16%-0.86%0.16%-0.85%0.16%-0.84%PFI has identified a risk that increased severity and frequency of intense rainfall events lead to pluvial and fluvial flooding and
cause temporary inundation and damage to properties and surrounding infrastructure. PFI has assessed the vulnerability of PFI’s
properties to flood risk using S&P Global’s Climanomics platform. Climanomics models the potential financial impact of pluvial
and fluvial flooding through climate-related expenses, including clean up and repair and business interruption costs, in a metric
known as Modelled Average Annual Loss (MAAL).
Analysis of trends:
According to Climanomics, the combined MAAL due to pluvial and fluvial flooding is anticipated to range between 0.16% of PFI’s
total portfolio value under a 2020s low climate change scenario (SSP1-2.6) to 0.84% of total portfolio value under a 2090s high
climate change scenario (SSP5-8.5) (relative to total asset value). Accordingly, we consider that PFI’s assets and business
activities could be vulnerable to average annual expenses between 0.16%-0.84% of PFI’s total portfolio value through climate-
related clean up and repair costs and business interruption associated with fluvial and pluvial flooding.
The MAAL % has not materially changed compared to previous reporting periods.
Key assumptions, uncertainties and limitations:
The output for pluvial and fluvial flooding considers a 1-in-100 year flood event. This metric is subject to assumptions, limitations
and uncertainties including that MAAL is an annualised average estimate based on global climate model outputs and is not
intended to predict losses from any particular event or year. Climanomics uses CMIP6 Global Climate Models and NEX-GDDP,
applies statistical rather than dynamic downscaling, and does not use New Zealand specific bias correction.
PFI has also assessed its exposure to flood risk using local council flood maps, which indicates that around ~15% of PFI’s
portfolio by value is located wholly or substantially on a flood plain or flood prone area. This figure is a measure of exposure only
and does not take into account PFI’s potential vulnerability to climate-related expenses.
Refer to Appendix 4 for further information on assumptions, uncertainties and limitations relevant to Climanomics and MAAL, and
on PFI’s treatment of local Council flood maps.
OTHER METRICS
AND TARGETS.
The following metrics were set with oversight from the Board. Reporting against common industry-based metrics is set out below, and we
are continuing to monitor metrics used by our peers in the property sector.
1. PFI also previously reported the ‘% of portfolio by market value that may be at long-term risk of coastal flooding due to sea level rise’ as a metric for measuring the proportion of assets vulnerable to physical
risks. As PFI’s exposure to this risk is low, PFI has removed this metric from our report. As a result of removing this metric, PFI relies on MAAL % due to pluvial and fluvial flooding and extreme temperatures,
and the average change in insurance premiums to assess vulnerability to physical risks for FY26. The risk of coastal flooding due to sea level rise was considered to be an industry-based metric, however, other
industry-based metrics are disclosed on the following pages. Further information on PFI’s assessment of sea level rise risk is provided in Appendix 4.
Modelled Average Annual Loss (MAAL) is an annualised
average estimate expressed as a percentage of PFI’s total
portfolio value and is intended to indicate potential average
annual financial exposure to climate hazards in a particular
time period. MAAL is calculated as the sum of climate-
related expenses (which can include capital expenditure
from clean up and repair costs and physical damage,
operating costs, and productivity impacts), that could be
incurred each year across the portfolio as a result of the
identified climate hazards.
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METRIC
FP24
6 MONTHS
FY25
12 MONTHS
FY26
12 MONTHSCOMMENTARY
MAAL % due to
temperature
extremes
0.38%-1.57%0.37%-1.57%0.25%-1.09%
PFI has identified a risk that increased average temperatures and more extreme heat events could lead to thermal stress on
buildings and increased cooling demand. PFI has assessed the vulnerability of PFI’s portfolio to this risk using the S&P Global
Climanomics platform, which models the potential financial impact of ‘temperature extremes’ through climate-related expenses,
primarily costs associated with HVAC degradation and cooling costs in the context of rising temperatures. PFI considers this
MAAL metric to be a useful proxy for assessing vulnerability to the financial impacts of rising temperatures across the portfolio,
noting that it does not capture all possible operational, tenant or asset-level impacts that may arise from rising temperatures over
time.
Analysis of trends:
According to Climanomics, the MAAL due to extreme temperatures is anticipated to range between 0.25% of PFI’s total portfolio
value under a 2020s low climate change scenario (SSP1-2.6) to 1.09% of total portfolio value under a 2090s high climate change
scenario (SSP5-8.5) (relative to total asset value). Accordingly, we consider that PFI’s assets and business activities could be
vulnerable to average annual expenses between 0.25%-1.09% of PFI’s total portfolio value through costs associated with HVAC
degradation due to extreme temperatures and cooling costs.
The MAAL % has decreased compared to previous reporting periods. This decrease is attributable to updates to modelling
assumptions within the modelling and changes in PFI’s property portfolio.
Key assumptions, uncertainties and limitations:
This metric is subject to assumptions, limitations and uncertainties, including that MAAL is an annualised average estimate based
on global climate model outputs and is not intended to predict losses from any particular event or year. Climanomics uses CMIP6
Global Climate Models and NEX-GDDP, applies statistical rather than dynamic downscaling, and does not use New Zealand-
specific bias correction.
Refer to Appendix 4 for further information on assumptions, uncertainties and limitations relevant to Climanomics and MAAL.
OTHER METRICS
AND TARGETS.
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METRIC
FP24
6 MONTHS
FY25
12 MONTHS
FY26
12 MONTHSCOMMENTARY
Average %
change in retail
insurance
premium
13%7%-7.5%PFI has identified a risk of increased severity and frequency of intense rainfall events leading to pluvial and fluvial flooding,
causing temporary inundation and damage to properties and surrounding infrastructure. PFI recognises that an anticipated impact
of this risk is an increase in insurance claims for climate-related property damage, leading to higher premiums, reduced coverage
and potential insurance retreat. PFI monitors insurance premium costs to assess the impact of physical risks to its portfolio.
Analysis of trends:
PFI has observed the general easing of market conditions over the past three reporting periods and the continued development of
its property insurance programme through its wholly-owned captive insurer, P.F.I. Cover Limited. In addition, PFI did not make any
material weather-related insurance claims during FY26.
During PFI’s 2026 insurance renewal, at a portfolio level, we experienced an average 7.5% reduction in insurance premiums when
compared to the prior year insurance premium. This has decreased compared to the average premium change experienced in
FP24 (13% increase) and FY25 (7% increase). The majority of insurance premiums are recovered from PFI’s tenants.
Key assumptions, uncertainties and limitations:
This metric was initially introduced following the impacts of Cyclone Gabrielle and the Auckland Floods on insurance premiums in
2023. However, PFI no longer considers average percentage change in retail insurance premium to be an appropriate metric for
assessing the proportion of assets or business activities vulnerable to physical risk, as premium movements are attributable to a
range of factors including a change in sums insured (driven by insurance valuations, acquisitions, divestments, and the completion
of developments), severity and frequency of climate events locally and globally, and other market factors. PFI will not report this
metric in future reporting periods but will continue to monitor insurance premium changes year on year as part of its assessment
of current financial impacts.
OTHER METRICS
AND TARGETS.
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1. PFI previously reported the ‘% of properties with power metering installed’ as a metric for measuring the proportion of assets aligned with climate-related opportunities (i.e., preparedness for future operational
performance ratings). Having achieved its target to implement power metering and monitoring across 90% of properties by the end of FY25, PFI no longer considers this metric relevant to monitoring
alignment with climate-related opportunities.
METRIC
FP24
6 MONTHS
FY25
12 MONTHS
FY26
12 MONTHSCOMMENTARY
ASSETS / BUSINESS ACTIVITIES THAT ARE VULNERABLE TO TRANSITION RISKS OR ALIGN WITH CLIMATE-RELATED OPPORTUNITIES¹
% of portfolio
by market value
that has
achieved a
green building
rating
This metric is in
line with
industry-based
metrics.
0%12.7%20.4%
20% of our portfolio by market value has achieved a green building rating and is therefore considered to be aligned with climate-
related opportunities.
Analysis of trends:
The percentage of PFI’s portfolio that has achieved a green building rating has increased in FY26 when compared to prior
reporting periods, primarily driven by the following:
§PFI achieved a 5 Green Star Design & As Built NZ1.1 Certified Design rating for Stage 2 at Springs Road.
§PFI has also achieved a 2 Star Green Star Performance rating (under the Energy and Water pathway) for a further portfolio of
three buildings.
Refer to pages 10 and 12 for details of properties that have achieved green building ratings.
Key assumptions, uncertainties and limitations:
PFI considers a ‘green building rating’ to include a Green Star rating or an operational performance rating (such as Green Star
Performance). Green buildings must meet the ‘Eligible Asset’ criteria in PFI’s Green Finance Framework to be included in this
metric.
Stage 2 at 78 Springs Road was awarded a 5 Green Star Design & As Built NZv1.1 Certified Design rating in June 2026. An as-Built
certification for this building has not yet been issued.
% of portfolio
by market value
that is
registered for a
green building
rating
This metric is in
line with
industry-based
metrics.
9.1%7.8%5.6%In addition to the percentage of our portfolio by market value that has achieved a green building rating, 5.6% of our portfolio by
market value is registered for a green building rating. This demonstrates alignment with the opportunity to improve PFI’s buildings
to achieve a green building rating.
Analysis of trends:
The percentage of PFI’s portfolio that is registered for a green building rating has decreased over the last three reporting periods,
noting that this decrease is attributable to the progress PFI has made with its development pipeline.
PFI has registered several upcoming developments for Green Star certification, including Totara Creek Estate, Stage 3 at 78
Springs Road, 92-98 Harris Road and 304, 316 and 318 Neilson Street. These properties represent a market value of $128.5m or
5.6% of PFI’s portfolio (based on ‘as-is’ market valuations as at 30 June 2026).
Key assumptions, uncertainties and limitations:
This metric includes upcoming developments that have formally been registered for Green Star certification with the NZGBC and
are expected to commence in the short term. In some cases, these are not fully committed projects.
OTHER METRICS
AND TARGETS.
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METRIC
FP24
6 MONTHS
FY25
12 MONTHS
FY26
12 MONTHSCOMMENTARY
% of portfolio
by market value
that has not
achieved or
been registered
for a green
building rating
This metric is in
line with
industry-based
metrics.
90.9%79.5%
74.0%
74% of our portfolio by market value has not yet achieved or been registered for a green building rating. This proportion of our
portfolio is therefore considered to be potentially vulnerable to climate-related transition risks, including tenant and purchaser
demand for sustainable and climate resilient buildings, changing investor and funder preferences, and regulatory change risks.
Analysis of trends:
The percentage of PFI’s portfolio that has not achieved, or been registered for, a green building rating, has decreased compared to
prior reporting periods. This is primarily driven by an increase in properties that have achieved, or been registered for, Green Star
certification and Green Star Performance ratings.
Key assumptions, uncertainties and limitations:
This metric includes properties that have not achieved a Green Star rating or an operational performance rating (such as Green
Star Performance), and properties that have not been formally registered for Green Star certification with the NZGBC. We note that
there are not green building rating tools available for all building types in PFI’s portfolio, and that PFI may have taken steps to
improve the sustainability performance of a building without seeking formal certification. In some cases, developments registered
for Green Building ratings are not fully committed projects.
% of total
funding
facilities that is
Green Debt
16.7%14.6%18.6%PFI has identified an opportunity to secure Green Debt under PFI’s Green Finance Framework to support progressive action
towards our strategic objectives and Green Star targets. As at 30 June 2026, ~19% of our total funding facilities are Green Debt
and therefore aligned with this opportunity. Following the post-balance date refinancing of PFI’s bank facilities on 17 July 2026, the
proportion of total committed facilities classified as Green Debt increased to 35.0%.
Analysis of trends:
The percentage of total funding facilities that is Green Debt increased in FY26 when compared to prior reporting periods. During
FY26, PFI reclassified Tranche C of its syndicated bank facility (Syndicated Bank Facility C), with a facility amount of $100m, as a
Green Loan Facility (Syndicated Bank Green Facility C). PFI also repaid and cancelled $50m drawn under its Green Loan Facility
with ANZ Bank New Zealand Limited (ANZ) and Commonwealth Bank of Australia (CBA) (ANZ and CBA Green Facility D1).
Key assumptions, uncertainties and limitations:
Green Debt is defined in PFI’s Green Finance Framework.
OTHER METRICS
AND TARGETS.
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METRIC
FP24
6 MONTHS
FY25
12 MONTHS
FY26
12 MONTHSCOMMENTARY
CAPITAL DEPLOYMENT TOWARDS CLIMATE-RELATED RISKS AND OPPORTUNITIES
Gross capital
investment
deployed
toward Green
Star buildings
$43.6M$23.3m$38.6mAnalysis of trends:
Gross capital expenditure towards buildings targeting Green Star certification has fluctuated over the last three reporting periods
as PFI makes progress with its development pipeline.
Key assumptions, uncertainties and limitations:
This metric does not separate the incremental spend that is ‘climate-related’ from general Green Star development costs, nor does
it provide an estimate of additional costs incurred for undertaking Green Star developments (therefore the gross spend also
encompasses costs that are not climate-related).
Gross capital
investment
deployed
toward
sustainability-
related projects
at existing
properties
Not measured$5.9m$1.6mDuring FY26, PFI spent around $1.6m in gross capital expenditure towards sustainability-related projects at existing properties.
Analysis of trends:
This metric reflects an updated approach to materiality and was not measured in FP24. Gross capital expenditure deployed towards
sustainability-related projects has decreased during FY26 when compared to FY25. This decrease is primarily attributable to limited
opportunities to implement PFI’s Sustainable Refurbishment Framework during the year.
Key assumptions, uncertainties and limitations:
Total sustainability-related capital expenditure is captured where projects have been identified as including a ‘sustainable feature’
and does not separate capex that is ‘climate-related’ from general project costs.
Sustainability-related projects include projects that have incorporated sustainable features such as LED lighting upgrades, solar,
skylight replacements, and landscaping. This metric excludes capex deployed towards the development of Green Star buildings
(see metric above).
Other uncertainties include data entry limitations, including projects being correctly identified and recorded by staff as incorporating
a sustainability feature.
OTHER METRICS
AND TARGETS.
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METRIC
FP24
6 MONTHS
FY25
12 MONTHS
FY26
12 MONTHSCOMMENTARY
REMUNERATION
% of Short Term
Incentives for
the Senior
Leadership
Team linked to
climate-related
risks and
opportunities
10%10%10%Analysis of trends:
During FY26, the key performance indicators (KPIs) underpinning the Short-term Incentives (STIs) of the Senior Leadership Team
included sustainability-related measures and objectives. Sustainability-related KPIs were weighted at 10% of the Senior Leadership
Team’s STIs for FP24, FY25 and FY26.
During FY26, these objectives included progressing 5 Green Star certification for new developments, obtaining Green Star
Performance (energy and water pathway) certifications for a selected group of properties, and progressing LED lighting upgrades
within the portfolio.
OTHER METRICS
AND TARGETS.
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PFI has committed to key targets to operationalise its Sustainability Strategy. The time
frames for these targets align to the time horizons set out on page 25. Performance as at
30 June 2026 against these targets is described below.¹
TA R G E TTIMEFRAMEBASE YEARPROGRESSPERFORMANCE
GREEN STAR
Significant new buildings to target
minimum 5 Green Star certification
Ongoing target
(short, medium
and long-term
target)
2023On trackPFI has been awarded a 5 Green Star Design & As Built NZv1.0 Built rating for Stages 1 and 2 at Bowden
Road and Stage 1 at Springs Road. During FY26, PFI was also awarded a 5 Green Star Design & As Built
NZv1.1 Design rating for Stage 2 at Springs Road.
We have also registered a number of upcoming developments for 5 Green Star certification.
SOLAR
Achieve 1.4MW of solar capacity
by the end of FY27
By the end of
FY27 (short-term
target)
2023On trackPFI has completed solar installations at nine buildings in its portfolio. This represents nearly 0.8MW of
solar capacity installed at PFI’s properties. During FY26, PFI installed 62.7kW of solar capacity at Stage
2 at 78 Springs Road.
LED LIGHTING
80% of PFI’s tenancies to have full
LED lighting by the end of FY28.
By the end of
FY28 (short-term
target)
2025On trackAs at 30 June 2026, approximately 72% of PFI’s tenancies had full LED lighting, with the remainder
containing a mixture of LEDs and non-LED lights, or no LED lights at all.
TARGETS.
1. During FY25, PFI achieved its target of implementing power metering and monitoring for 90% of properties by the end of FY25. As this target has been met, PFI will no longer report on progress against it.
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APPENDICES.
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APPENDICES
RECENT KEY BOARD ENGAGEMENTS RELATING TO CLIMATE-RELATED MATTERS
BOARD AUDIT & RISK COMMITTEE
May 2025Review and approval of PFI’s corporate strategy.
Review and approval of PFI’s Sustainability Strategy (including revised climate-related
targets).
August 2025Update on FY25 Climate-related Disclosures.
Update on matters relating to GHG emissions calculations.
Quarterly update on progress against climate-related targets.
Update on FY25 Climate-related Disclosures.
Update on matters relating to GHG emissions calculations and the GHG emissions
assurance engagement.
September 2025Approval of FY25 Climate-related Disclosures.
Board training on climate-related matters.
Review and recommendation of FY25 Climate-related Disclosures for Board approval.
November 2025Quarterly update on progress against climate-related targets.
December 2025Approval of PFI’s Risk Management Framework.
Approval of limited assurance engagement relating to Scope 1 and Scope 2
GHG emissions.
Two-yearly review of PFI’s Risk Management Framework.
Annual review of PFI’s corporate risk register.
Endorsement of limited assurance engagement relating to Scope 1 and Scope 2 GHG
emissions for Board approval.
February 2026Approval of PFI’s Climate-related Disclosures process memorandum.
Annual review of Climate-related Risk and Opportunity Assessment.
Quarterly update on progress against climate-related targets.
Review and recommendation of PFI’s Climate-related Disclosures process memorandum.
Annual review of Climate-related Risk and Opportunity Assessment, including climate
scenarios used.
May 2026Quarterly update on progress against climate-related targets.
June 2026Update on FY26 Climate-related Disclosures.
Update on matters relating to GHG emissions calculations.
August 2026Update on FY26 Climate-related Disclosures.
Quarterly update on climate-related metrics and targets.
Update on FY26 Climate-related Disclosures.
Update on matters relating to GHG emissions calculations and the GHG emissions
assurance engagement.
September 2026Approval of FY26 Climate-related Disclosures.Review and recommendation of FY26 Climate-related Disclosures for Board approval.
PFI’s People Committee reviewed the Board’s skills and experience, including climate-related skills, at the November 2025 People Committee meeting.
APPENDIX 1.
Each climate-related matter and activity outlined below involved engagement between the Senior Leadership Team and the Board and / or Audit and Risk Committee through reporting, discussion and
recommendations provided by the Senior Leadership Team.
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PFI’s GHG emissions for the 12-month period ended
30 June 2026 (FY26) have been measured and prepared in
accordance with NZ CS and the Greenhouse Gas Protocol:
A Corporate Accounting and Reporting Standard (revised
edition) and the Greenhouse Gas Protocol: Corporate Value
Chain (Scope 3) Accounting and Reporting Standard (GHG
Protocol). PFI’s Scope 1, 2 and 3 emissions have also been
externally peer reviewed to check alignment with the GHG
Protocol (noting that this does not constitute external
assurance in line with FMCA assurance requirements).
ASSURANCE OF GHG EMISSIONS
PFI engaged PricewaterhouseCoopers (PwC) as an
external assurance practitioner to provide limited
assurance for PFI’s FY26 Scope 1 and Scope 2 GHG
emissions. PwC’s GHG assurance report is provided in
Appendix 3 (pages 59-61).
PFI’s Scope 3 emissions are not subject to an external
assurance engagement. PFI has elected to use Adoption
Provision 8 in NZ CS 2, which exempts PFI from including
Scope 3 emissions disclosures from the Scope of GHG
assurance engagements for reporting periods ending
before 31 December 2027.
PFI also relies on the Financial Markets Conduct (Climate-
related Disclosures – Assurance Engagement) Exemption
Notice 2025, which provides that climate-reporting entities
are not required to seek assurance over Scope 3 GHG
emissions statements, as otherwise required by section
461ZH(1) of the Financial Markets Conduct Act 2013.
ORGANISATION DESCRIPTION
PFI is comprised of a single parent company, Property for
Industry Limited (the Company), and its subsidiaries, P.F.I.
Property No. 1 Limited (P.F.I. No.1), which owns the full
property portfolio, and P.F.I. Cover Limited (collectively, the
Group).
PFI is an NZX-listed property vehicle focused on the
industrial property sector. As at 30 June 2026, PFI has
a portfolio of 94 properties located throughout New
Zealand, but primarily in Auckland. PFI’s core activities
broadly cover leasing pre-existing properties to industrial
tenants, portfolio management through acquisitions and
divestments, refurbishment, project and development
activities and coordinating repairs, maintenance and
capital projects for PFI’s properties through its internal
facilities management team.
94 PROPERTIES
PROPERTY FOR INDUSTRY LIMITED
P.F.I. PROPERTY NO.1 LIMITEDP.F.I. COVER LIMITED
FURTHER INFORMATION ON GHG EMISSIONS
APPENDIX 2.
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ORGANISATIONAL BOUNDARY AND
CONSOLIDATION APPROACH
PFI’s organisational boundaries have been set with
reference to the methodology described in the GHG
Protocol. PFI has applied an operational control approach
to identify and determine the boundary of PFI’s
GHG inventory.
All emissions that PFI has operational control over in its
own head office and within its property portfolio are
covered in this inventory. Operational control is determined
by PFI’s capacity to enact operational decisions for an
emissions source (i.e., full authority to introduce and
implement operating policies). This approach allows us to
focus our initiatives on the emission sources which we
have operational control over and can make decisions on in
line with our Sustainability Strategy.
METHODOLOGIES, ASSUMPTIONS,
LIMITATIONS AND UNCERTAINTIES
GHG quantification is subject to inherent uncertainty
because of incomplete scientific knowledge used to
determine emissions factors and the values needed to
combine emissions of different gases. PFI’s GHG
emissions have been calculated with guidance provided by
Greenhouse Gas Protocol: Technical Guidance for
Calculating Scope 3 Emissions (version 1.0)
(Technical Guidance).
1. The Market Economics Limited, 2023, Consumption Emissions Modelling report prepared for Auckland Council (Table 5 Consumption Emission Intensities for the Year Ending 2019) has been used to calculate Scope 3
Category 1: purchased goods and services and Scope 3 Category 2: Capital Goods (other capital goods expenditure).
Unless otherwise stated, the calculation methodology used
to quantify emissions was based on the method of
multiplying supplied activity data by the relevant emissions
factor or Global Warming Potential (GWP) rate.
PFI uses emission factors and GWP rates sourced from the
most recent and up to date Ministry for the Environment’s
Measuring Emissions Guide: Emission Factor Workbook
(MfE Emission Factors) that are available as at the end of
the relevant reporting period (30 June). Emission factors
and GWP rates used to calculate PFI’s FY26 GHG
emissions were sourced from the 2026 MfE Emission
Factors, using GWP rates sourced from IPCC AR5. The
2026 MfE Emission Factors have not been applied to prior
year emissions calculations.
Emissions factors have also been sourced from the Market
Economics Limited 2023 Consumption Emissions
Modelling report prepared for the Auckland Council
1
to
estimate Scope 3, Category 1 and 2 emissions, and the UK
Government GHG Conversion Factors for Company
Reporting 2021 to estimate Scope 3, Category 3 emissions
(upstream emissions from purchased electricity).
Embodied carbon emissions from PFI’s Green Star
developments (covered under Scope 3 Category 2: Capital
Goods) are estimated using Life Cyle Assessments (LCAs)
prepared by Beca Limited.
Data for Scope 1, 2 and 3 emissions are captured by PFI’s
team members or provided by suppliers and are subject to
data entry limitations.
Specific data sources, data uncertainties, assumptions and
limitations are set out on the pages that follow.
RESTATEMENT POLICY
PFI will recalculate and restate comparative year emissions
where there has been a change of more than 10% of the
total inventory as a result of structural changes, a change
in calculation methodology, judgements or estimates that
are relevant to comparative year emissions, or discovery of
material errors.
A recalculation of comparative year emissions may not be
appropriate if a recalculation is unable to be carried out due
to a lack of reliable data, or where new methodologies are
not relevant or cannot be applied to historic years. In this
circumstance, PFI may decide to provide an explanation as
to why a recalculation was not deemed appropriate. PFI
reserves the right to restate comparative year emissions if
there has been a change that is below the 10% threshold if
management determines that it would provide primary
users with a clearer understanding of emissions.
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In FY26, PFI has restated Scope 3 Category 2: Capital
Goods (upfront embodied carbon emissions from
developments) for FY23, FP24 and FY25. Details on this
restatement are provided below.
DETAILS OF THE FY23, FP24 AND FY25
RESTATEMENT
Scope 3 Category 2: Capital Goods (upfront embodied
carbon emissions from developments)
Scope 3 Category 2: Capital Goods (upfront embodied
carbon emissions from developments) have been restated
REPORTING
PERIOD
SCOPE 3 CATEGORY 2:
CAPITAL GOODS
PREVIOUSLY REPORTED
EMISSIONS (TCO2E)
RESTATED
EMISSIONS (TCO2E)CHANGE
FY23Upfront embodied carbon emissions
from developments
12,523.80A reduction of 12,523.8 tCO
2
e of total Scope 3, Category 2: Capital Goods (upfront embodied
carbon emissions from developments) to reflect the change to an ‘at completion’ methodology.
No developments achieved practical completion during FY23, and emissions for developments
undergoing construction during FY23 are now accounted for in FP24 and FY25.
Other capital goods expenditure4,209.94,209.9
Total Scope 3 Category 2 emissions16,733.74,209.9
FP24Upfront embodied carbon emissions
from developments
6,958.63,861.0A reduction of 3,097.6 tCO
2
e of total Scope 3, Category 2: Capital Goods (upfront embodied
carbon emissions from developments) to reflect the change to an ‘at completion’ methodology.
One development (Stage 1 at 30-32 Bowden Road) achieved practical completion during FP24,
and emissions for developments undergoing construction during FP24 are now accounted for in
FY25 reporting.
Other capital goods expenditure1,636.91,636.9
Total Scope 3 Category 2 emissions8,595.55,497.9
FY25Upfront embodied carbon emissions
from developments
2,288.914,031.0An increase of 11,742.1 tCO2e of total Scope 3, Category 2: Capital Goods (upfront embodied
carbon emissions from developments) to reflect the change to an ‘at completion’ methodology.
Two developments, including Stage 2 at 30-32 Bowden Road and Stage 1 at 78 Springs Road
achieved practical completion during FY25. These restated emissions also reflect finalised LCA
reports for these development projects (a reduction of ~3,880 tCO2e compared to design review
LCAs).
Other capital goods expenditure2,913.12,913.1
Total Scope 3 Category 2 emissions5,202.016,944.1
Scope 3 Category 2: Capital Goods (upfront embodied carbon emissions from developments) for FY23, FP24 and FY25 have been restated as follows:
for FY23, FP24 and FY25 to reflect a change in
methodology and finalised LCA data. PFI has restated
these emissions in FY26 to improve comparability and
consistency of our emissions data for primary users.
In FY26, PFI has changed its methodology to reporting
total upfront embodied carbon emissions ‘at completion’
of each development. Prior to this change, total upfront
embodied carbon emissions for our developments at
Stages 1 and 2 at 30-32 Bowden Road and Stage 1 at 78
Springs Road were reported over multiple years having
been split across FY23, FP24 and FY25, based on spend.
This revision also follows a reduction of ~3,880 tCO2e
realised after the LCA reports for 30-32 Bowden Road and
Stage 1 at 78 Springs Road were finalised and
independently peer reviewed in late-2025.
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A summary of the emissions sources included in this inventory
is provided below, along with a description of the methods,
assumptions, limitations, and uncertainties relevant to calculating or
estimating emissions.
GHG EMISSIONS
SOURCEFACILITIES MEASURED
DATA SOURCE AND
COLLECTIONKEY UNCERTAINTIES, LIMITATIONS AND ASSUMPTIONS
SCOPE 1
Fugitive Emissions from
HVAC systems
All properties within the
portfolio where the HVAC
is owned and maintained
by PFI.
Records from HVAC suppliers
(emails and reports) detailing
the quantity used (in kg) to top
up HVAC systems during
the year.
Medium uncertainty – assumption that records provided by HVAC suppliers represent a complete and accurate
account of all fugitive emissions from HVAC systems. Assumption made that the quantity of refrigerant gas
topped up equals the quantity of the refrigerant gas lost during the reporting year.
Diesel emissions from
sprinkler systems
All properties with diesel-
powered sprinkler systems
that are owned and
maintained by PFI.
Records from suppliers
that maintain PFI’s sprinkler
systems (emails and reports)
detailing the quantity of
diesel used (litres) to top up
sprinkler systems.
Medium uncertainty – assumption that records provided by contractors are a complete and accurate account of
diesel emissions from sprinkler systems.
SCOPE 2
Purchased electricity
consumption
(location based)
Purchased electricity
consumed in PFI’s head
office, vacant spaces and
common areas within PFI’s
portfolio of properties (where
PFI has operational control
over the electricity used).
Metering reports and invoices
from electricity suppliers which
record kWh consumed.
Low uncertainty – assumption that the meter readings are correct and that the kWh provided by electricity
suppliers are an accurate record of the electricity consumed.
EMISSIONS SOURCE
INCLUSIONS.
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GHG EMISSIONS
SOURCEFACILITIES MEASURED
DATA SOURCE AND
COLLECTIONKEY UNCERTAINTIES, LIMITATIONS AND ASSUMPTIONS
SCOPE 3
Category 1: Purchased
goods and services
Emissions related to goods
and services purchased.
Expenses report for FY26
extracted from PFI’s
accounting software.
High uncertainty – data limitations meant that a spend-based method was employed. Uncertainties arise from the
lack of detailed information about the exact GHG emissions associated with each product or service purchased.
Category 1 emissions were estimated by multiplying spend against relevant emissions factors derived from the
Market Economics Limited 2023 Consumption Emissions Modelling Report prepared for the Auckland Council (a
New Zealand consumption-based model). This methodology provides an estimate only, and relies on the quality of
the statistical data used to calculate emissions factors and the categories aligning with PFI’s accounting codes.
Adjustments have not been made for inflation.
Category 2: Capital GoodsCapital expenditure at PFI
properties, including
refurbishments and major
developments.
A combination of dollar spend
from internal accounting
records and upfront embodied
carbon emissions data from
Life Cycle Assessments.
High uncertainty – emissions were estimated using a combination of a spend-based method and data from Life
Cycle Assessments (LCAs).
The spend-based methodology involved multiplying property spend against emissions factors derived from a
consumption-based model (limitations are described above). This method was applied to Category 2, Capital
Goods emissions, where LCA data was not available.
Upfront embodied carbon emissions associated with material production, transport of materials and
construction at PFI’s major developments were estimated using data from LCA reports prepared by Beca
Limited (for the purpose of design review and certification under the Green Star framework). This methodology
intends to more accurately estimate the construction-related emissions from PFI’s major development activities
using estimated emissions totals for the product and construction stage of each development. The following
uncertainties and limitations apply:
§LCA data is calculated ‘at completion’ of development projects, which may span across more than one
reporting period before achieving practical completion. FY26 Category 2 emissions calculations include total
upfront embodied carbon emissions for the development at Stage 2 at 78 Springs Road, which achieved
practical completion during the reporting period.
§Emissions from the development of Stage 1 at Totara Creek Estate, which was in progress during FY26, are
excluded as the project did not achieve practical completion during FY26.
§LCAs contain estimated upfront embodied carbon emissions for PFI’s Green Star developments and are
subject to limitations, uncertainties and possible change.
EMISSIONS SOURCE
INCLUSIONS.
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GHG EMISSIONS
SOURCEFACILITIES MEASURED
DATA SOURCE AND
COLLECTIONKEY UNCERTAINTIES, LIMITATIONS AND ASSUMPTIONS
Category 3: Fuel and
Energy-related Activities
(not included in Scope 2)
– Transmission and
distribution losses /
upstream emissions from
purchased electricity
Scope 2 purchased electricityRecords from electricity
suppliers – total kWh from PFI’s
Scope 2 emissions from
purchased electricity.
Low uncertainty – assumption that electricity invoices and meter readings accurately represent the energy that
PFI consumed across its offices, and properties with vacant spaces and common areas.
Category 5: Waste
generated in operations
Waste generated from PFI’s
head office.
Proxy measurementHigh uncertainty – in the absence of actual supplier data for waste generated in PFI’s head office, PFI has
estimated emissions using a proxy measurement method. Assumptions have been made around the total kg of
waste per full time employee.
Category 6: Business
Travel
Staff from PFI head office.Records include invoices,
booking confirmations, and
reports from PFI’s accounting
system.
Medium-High uncertainty – a combination of a distance-based and spend-based methodologies were used to
estimate emissions associated with staff air travel, rental car use, taxi use, mileage, and hotel accommodation.
Assumptions have been made relating to the type of vehicle and fuel used. Assumption that all business-related
travel is captured in PFI’s accounting records.
Category 7: Employee
commuting
Staff from PFI head office.Employee Commuting Survey
results. The data collection unit
is kilometers (km) travelled to
work via private vehicle, bus,
train and ferry and number of
days worked from home.
Medium uncertainty – a distance-based methodology was used to estimate emissions associated with
commuting. Assumption that the answers provided by PFI’s employees in the survey are a complete and
accurate representation of how employees commuted to work in a typical week. Assumptions have been made
around the number of days worked and distance travelled.
Category 13: Downstream
Leased Assets –
Electricity consumed at
tenanted buildings
All tenanted properties within
PFI’s portfolio.
Records include metering
reports.
Medium uncertainty – emissions from electricity use across PFI’s tenanted portfolio were estimated by
extrapolating available metered consumption data. Where less than 12 months of metered data was available,
figures were annualised. For properties with no data, average electricity use per net lettable area was applied
(kWh/NLA).
The following limitations, uncertainties and assumptions apply:
§As at 30 June 2026, ~90% of PFI’s portfolio were metered, with the remaining properties lacking
consumption data.
§Metering reports were manually compiled using data fed live from metering.
§It is assumed that the metering reports accurately represent the electricity consumed at metered sites.
§To the extent that metering data is incomplete, the extrapolated data does not fully reflect PFI’s actual Scope 3
Category 13 emissions.
§Data includes both tenant and general building electricity consumption.
EMISSIONS SOURCE
INCLUSIONS.
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SCOPE AND CATEGORYSOURCEJUSTIFICATION FOR EXCLUSION
SCOPE 3
Category 13: Downstream
Leased Assets
Fugitive emissions relating to
operational equipment that PFI owns,
but which tenants have operational
control.
We acknowledge that there are likely to be fugitive emissions from building HVAC systems where tenants have operational control
and manage and maintain those assets (Scope 3, Category 13: Downstream Leased Assets). These emissions are excluded from
PFI’s inventory due to an absence of data, and we note that it is unlikely PFI will be able to gain visibility of these fugitive
emissions. However, the vast majority of HVAC systems in PFI buildings are managed by PFI, meaning PFI has operational control
and these are included in Scope 1 emissions. Tenant-managed fugitive emissions are not expected to be material when compared
to building electricity.
Scope 3, Categories 9, 10, 11, 12, 14, and 15 do not apply to PFI’s operations. There were no exclusions relevant to Scope 1 and 2 emissions.
EMISSIONS SOURCE
EXCLUSIONS.
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PwC New Zealand, PwC Tower, 15 Customs Street West, Private Bag 92162, Auckland 1142, New Zealand, T: +64 9 355 8000
Independent Assurance Report
To the Directors of Property for Industry Limited
Limited Assurance Report on Property
for Industry Limited’s Greenhouse Gas
(GHG) Disclosures
Our conclusion
We have undertaken a limited assurance engagement on the gross GHG emissions,
additional required disclosures of gross GHG emissions, and gross GHG emissions
methods, assumptions and estimation uncertainty (the GHG Disclosures), as
outlined within the Scope of our limited assurance engagement section below,
included in the FY26 Sustainability and Climate Report (the Climate Statement) of
Property for Industry Limited (the Company) and its subsidiaries (the Group) for
the year ended 30 June 2026.
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 GHG
Disclosures are not fairly presented and are not prepared, in all material respects, in
accordance with the Aotearoa New Zealand Climate Standards (NZ CSs) issued by
the External Reporting Board (XRB), as explained on page 52 of the Climate
Statement.
Scope of our Limited Assurance Engagement
We have undertaken a limited assurance engagement over the following GHG
Disclosures on pages 38, 52 to 53, 55 and 58 of the Climate Statement for the year
ended 30 June 2026:
• gross GHG emissions:
− Scope 1 GHG emissions of 101 tCO2e on page 38; and
− Scope 2 GHG emissions (location based) of 8 tCO2e on page 38; and
• additional required disclosures of gross GHG emissions on pages 52, 53 and 58; and
• gross GHG emissions methods, assumptions and estimation uncertainty on page
55.
Our assurance engagement does not extend to any other information included, or
referred to, in the Climate Statement on pages 1 to 54, 56 to 58 and 62 to 69. We have
not performed any procedures with respect to the excluded information and, therefore,
no conclusion is expressed on it. The comparative information for the periods ended 31
December 2023, 30 June 2024 and 30 June 2025 disclosed in the Group’s Climate
Statement are not covered by the assurance conclusion expressed in this report.
Other matter – comparative information
The comparative GHG Disclosures for the periods ended 31 December 2023 and 30
June 2024 have not been subject to assurance. As such, these disclosures are not
covered by our assurance conclusion.
The comparative GHG Disclosures for the year ended 30 June 2025 have been subject
to limited assurance by us, with the unmodified assurance report dated on 10
September 2025.
GHG ASSURANCE REPORT
APPENDIX 3.
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APPENDIX 3: GHG ASSURANCE REPORT
Directors’ responsibilities
The Directors of the Company are responsible on behalf of the Company for the
preparation and fair presentation of the GHG Disclosures in accordance with NZ CSs.
This responsibility includes the design, implementation and maintenance of internal
controls relevant to the preparation of GHG Disclosures that are free from material
misstatement whether due to fraud or error.
Inherent Uncertainty in preparing GHG Disclosures
As discussed on page 53 of the Climate Statement, the GHG quantification is subject to
inherent uncertainty because of incomplete scientific knowledge used to determine
emissions factors and the values needed to combine emissions of different gases.
Our independence and quality management
This assurance engagement was undertaken in accordance with New Zealand Standard
on Assurance Engagements 1 Assurance Engagements over Greenhouse Gas
Emissions Disclosures, issued by the External Reporting Board (XRB) (NZ SAE 1). NZ
SAE 1 is founded on the fundamental principles of independence, integrity, objectivity,
professional competence and due care, confidentiality and professional behaviour.
We have also complied with the following professional and ethical standards and
accreditation body requirements:
• Professional and Ethical Standard 1: International Code of Ethics for Assurance
Practitioners (including International Independence Standards) (New Zealand);
• Professional and Ethical Standard 3: Quality Management for Firms that Perform
Audits or Reviews of Financial Statements, or Other Assurance or Related Services
Engagements; and
• Professional and Ethical Standard 4: Engagement Quality Reviews.
In our capacity as auditor and assurance practitioner, our firm also provides audit,
review, and agreed-upon procedures. Our firm carried out other assignments in the
area of other services relating to the provision of remuneration market data. In
addition, certain partners and employees of the firm may deal with the Group on
normal terms within the ordinary course of trading activities of the business. The firm
has no other relationship with, or interests in, the Group.
Assurance practitioner’s responsibilities
Our responsibility is to express a conclusion on the GHG Disclosures based on the
procedures we have performed and the evidence we have obtained. NZ SAE 1 requires
us to plan and perform the engagement to obtain the intended level of assurance about
whether anything has come to our attention that causes us to believe that the GHG
Disclosures are not fairly presented and are not prepared, in all material respects, in
accordance with NZ CSs, whether due to fraud or error, and to report our conclusion to
the Directors of the Company.
As we are engaged to form an independent conclusion on the GHG Disclosures
prepared by management, we are not permitted to be involved in the preparation of the
GHG information as doing so may compromise our independence.
Summary of work performed
Our limited assurance engagement was performed in accordance with NZ SAE 1, and
ISAE (NZ) 3410 Assurance Engagements on Greenhouse Gas Statements. This
involves assessing the suitability in the circumstances of the Group’s use of NZ CSs as
the basis for the preparation of the GHG Disclosures, assessing the risks of material
misstatement of the GHG Disclosures whether due to fraud or error, responding to the
assessed risks as necessary in the circumstances, and evaluating the overall
presentation of the GHG Disclosures.
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A limited assurance engagement is substantially less in scope than a reasonable
assurance engagement in relation to both the risk assessment procedures, including an
understanding of internal control, and the procedures performed in response to the
assessed risks.
The procedures we performed were based on our professional judgement and included
enquiries, observation of processes performed, inspection of documents, analytical
procedures, evaluating the appropriateness of quantification methods and reporting
policies, and agreeing or reconciling with underlying records. In undertaking our
limited assurance engagement on the GHG Disclosures, we:
• Obtained, through enquiries, an understanding of the Group’s control
environment, processes and information systems relevant to the preparation of the
GHG Disclosures. We did not evaluate the design of particular control activities, or
obtain evidence about their implementation;
• Evaluated whether the Group’s methods for developing estimates are appropriate
and had been consistently applied. Our procedures did not include testing the data
on which the estimates are based or separately developing our own estimates
against which to evaluate the Group’s estimates;
• Tested, a limited number of items to, or from, supporting records, as appropriate;
• Assessed the appropriateness of all in-scope emission factor sources and
reperformed a limited sample of emissions calculations for mathematical accuracy;
• Performed analytical procedures on particular emission categories by comparing,
on a monthly basis, the expected GHG emissions to recorded emissions; and
• Considered the presentation and disclosure of the GHG Disclosures.
The procedures performed in a limited assurance engagement vary in nature and timing
from, and are less in extent than for, a reasonable assurance engagement. Consequently,
the level of assurance obtained in a limited assurance engagement is substantially lower
than the assurance that would have been obtained had we performed a reasonable
assurance engagement and does not enable us to obtain assurance that we would
become aware of all significant matters that we otherwise might identify. Accordingly,
we do not express a reasonable assurance opinion on these GHG Disclosures.
Inherent limitations
Because of the inherent limitations of an assurance engagement, together with the
internal control structure, it is possible that fraud, error or non-compliance may occur
and not be detected.
Who we report to
This report is made solely to the Company and the Company’s Directors, as a body. Our
work has been undertaken so that we might state those matters which we are required
to state to them in our assurance report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the
Company and the Company’s Directors, as a body, for our procedures, for this report, or
for the conclusions we have formed.
The engagement partner on the engagement resulting in this independent assurance
report is Victoria Ashplant.
For and on behalf of:
PricewaterhouseCoopers Auckland
14 September 2026
APPENDIX 3: GHG ASSURANCE REPORT
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APPENDICES
This appendix summarises the key assumptions,
limitations and uncertainties relevant to PFI’s physical
climate risk assessments and related disclosures. PFI
expects its understanding of physical risk to evolve over
time as data quality improves, methodologies develop, and
asset-level investigations are undertaken.
PFI has assessed the exposure of its portfolio to
physical climate hazards by reference to third-party tools
and publicly available datasets, including S&P Global
Climanomics (Climanomics), local Council flood maps,
and NIWA’s extreme sea level flood maps. These sources
use different methodologies, model structures, spatial
resolutions, hazard definitions and return periods. Results
are interpreted in combination with internal knowledge
of PFI’s buildings, facilities management experience and
property-specific context, rather than being relied on in
isolation.
CLIMANOMICS
Climanomics is a third-party global climate analytics
platform that quantifies the potential financial impact of
climate hazards on physical assets, including pluvial and
fluvial flooding, extreme temperatures, tropical cyclone,
wildfire, water stress, drought and landslide. Climanomics
models physical hazards across eight decades (i.e., 2020s
through to 2090s) using four Shared Socioeconomic
Pathways (SSPs): low (SSP1-2.6), medium (SSP2-4.5),
medium-high (SSP3-7.0), and high (SSP5-8.5) climate
change scenarios. These broadly align with PFI’s Disorderly
and Hot House World scenarios. Climanomics uses NASA’s
Earth Exchange Global Daily Downscaled Projections
(NEX-GDDP) suite of CMIP6 Global Climate Models, WRI
Aqueduct and Floods, HydroAtlas, published academic
literature, and other geospatial sources to derive modelled
hazards. This ensemble of CMIP6 models and other
climate data is combined into a probability distribution,
providing the most probable hazard severity across years
within each relevant decade.
Climanomics quantifies the potential financial impacts
caused by climate hazards in a metric known as Modelled
Average Annual Loss (MAAL). MAAL represents the costs
of changing climate hazard exposure and is calculated
as the sum of climate-related expenses (which can
include capital expenditure from clean up and repair costs
and physical damage, operating costs and productivity
impacts). For PFI’s physical risk metrics, MAAL is
expressed as a percentage of loss relative to total asset
value on an annualised basis for each decadal period.
Climanomics is limited in its ability to predict the
anticipated impact of climate change on our assets,
however, PFI considers this platform to be an appropriate
model on the basis that it provides a useful understanding
of the exposure and vulnerability of PFI’s portfolio to
financial impacts of physical climate hazards, and it is
underpinned by established scientific hazard modelling.
However, the Climanomics platform has a number of
limitations and assumptions, including:
§
Climanomics analysis is based on CMIP6 Global
Climate Models and statistically downscaled climate
projections, rather than New Zealand-specific regional
climate models. The modelling does not use New
Zealand specific bias correction.
§
the spatial resolution used within the modelling is 1km
x 1km for fluvial flooding and 25km x 25km for pluvial
flooding and extreme temperatures, which is likely to
be a lower resolution and less granular than local New
Zealand hazard modelling.
§
MAAL estimates reflect an annualised average across a
decadal period, and do not predict the potential financial
impact of any particular event in any one year, including
where hazards occur more frequently or with greater
severity than the average outcome suggests. This
limitation reflects the inherent uncertainty in projecting
future impacts from climate hazards.
§
the modelling assumes PFI is responsible for certain
expenses (such as operating costs), which are typically
passed through to tenants.
§
for the pluvial and fluvial flooding hazards, climate-
related expenses include clean-up and repair costs
and business interruption. The MAAL for this hazard
has not been adjusted to account for costs that would
PHYSICAL RISK ASSESSMENT ASSUMPTIONS,
LIMITATIONS AND UNCERTAINTIES
APPENDIX 4.
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