Media Release : PMG Funds releases inaugural Sustainability Report

Unlisted property funds manager PMG Funds’ Chief Executive, Scott McKenzie, is urging the property sector to take more responsibility in contributing to New Zealand’s carbon zero future.

Globally it’s estimated that around 80% of the commercial buildings that will be standing in 2050 have already been built – and that 97% of these are below the standard that will be required to meet carbon zero goals.[1] With the built environment accounting for around 20 per cent of New Zealand’s carbon footprint, and around 90 per cent of commercial property in New Zealand (by value) held either privately or by unlisted fund managers, McKenzie says his sector can make a significant contribution to the country’s sustainable future.

“While there are complexities and costs associated with embedding green features into existing builds, there are a number of quick wins commercial property owners can effect to reduce their buildings’ environmental impact – such as recycling waste and conserving energy and water.

“Greenifying existing buildings by retrofitting, upgrading and better supporting tenants’ businesses to be more sustainable is something our sector can do that will make a real impact on minimising pollution, energy consumption and carbon emissions. These sustainability initiatives add value to buildings and attract quality tenants which is good news also for investors and owners of commercial real estate,” says McKenzie.

McKenzie says that greener buildings are not just good for the planet, as by minimising operating costs and supporting a healthier workforce, they also play a key role in business sustainability in a more holistic sense too.

“For our tenants, it’s an opportunity to save them money where we can. Providing good quality space that’s fit for purpose, with sound recycling, energy and water consumption and waste initiatives, enables them to grow, attract and retain staff.”

PMG has released its inaugural Sustainability Report to detail the actions it has taken over the last three years to reduce its portfolio’s impact on the environment and create long-lasting value for all its stakeholders.

McKenzie believes that greater transparency can inspire a sharper focus on bringing existing buildings within funds’ portfolios into line with the exacting environmental standards of today’s new builds, and he hopes this will encourage others in the unlisted property sector to do the same.

“As an unlisted company we aren’t mandated to provide a sustainability report. But given how integral our sector is to creating a sustainable, less polluted and lower-emissions future for New Zealand, we’re aiming to lead and encourage through embracing greater transparency and accountability.”

“Sustainable practices, which as we show through our sustainability report stretch beyond just the environment to improving financial literacy for children and young adults, are good for the environment, our tenants, our investors and the wider community.”

The report and the focus PMG has placed on sustainability, has been acknowledged by Toitū Envirocare, as Technical Account Manager Bronwyn Cook explains.

“Given the significant impact of the built environment on New Zealand’s emission profile, we applaud PMG for showing commitment and leadership to drive positive change in the commercial property sector. Toitū Envirocare is proud to walk alongside PMG on its sustainability journey.”

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PMG’s sustainability focus includes:

• 1st NABERSNZ rated property: 8 Rockridge Avenue, Penrose, Auckland, received a 4-star NABERSNZ rating in October 2021
• PMG’s Tauranga Head Office tenancy received a 4-star NABERSNZ rating in December 2021; 1 of only 8 other tenancies in the country currently with this rating.
• PMG committed to achieving four NABERSNZ rated buildings within portfolio by the end of March 2023.
• 7 PMG-owned buildings now have BMS energy, water and waste monitoring; plan to increase this to 8 by the end of March 2023.
• PMG began recording waste and recycling efforts in 10 pilot buildings in July 2019. Almost 200 tonnes has been diverted from landfill over this period.
• To address financial inequality, PMG’s Charitable Trust partnership delivered financial literacy lessons to 11,000 Year 10 students in 2021. In 2022, PMG intends to double that to reach 22,000 students.

 

For more information and to download a copy of PMG Fund’s Sustainability Report, visit https://www.pmgfunds.co.nz/pmg...
[1] Decarbonizing Cities and Real Estate: JLL Global Research, May 2022