Media Release: PMG Fund's second annual sustainability report highlights need for collaboration

PMG Funds’ second annual sustainability report highlights need for collaboration to deliver meaningful change

Leading unlisted property funds manager, PMG Funds, has today released its second annual sustainability report as it continues to seek to inspire private commercial property owners and their tenants to commit to meaningful climate action.

Climate-related disclosure requirements for listed funding entities and the sustainability expectations of tenant businesses ensure that today’s commercial new builds are invariably designed to exacting environmental standards. However, PMG’s Chief Executive, Scott McKenzie, says many of New Zealand buildings still require significant improvement.

“The property sector contributes 20 per cent of New Zealand’s carbon pollution. With 90 per cent of commercial property here owned either privately or by unlisted fund managers, it’s clear that the onus is very much on us to step up,” says McKenzie.

“By reporting on our own journey, we want to shine a light on what can – and in fact must – be done by the sector to ensure New Zealand works towards its carbon emission reduction targets set under the Paris Agreement.”

With a nationwide portfolio of 47 properties and 165 tenants, PMG is one of New Zealand’s most established licensed property fund managers. Beyond implementing its own initiatives, McKenzie says PMG has sought to take a partnership approach with its tenants and suppliers to deliver meaningful change – all without significant capital outlay.

“Working with our tenants over the last year we’ve averted almost 200 tonnes of recyclable waste from landfill and gained 4+ Star NABERSNZ energy performance ratings for four of our properties. We’ve managed to do this through improving energy efficiency, installing EV chargers and enhancing end-of-trip facilities to encourage active modes of transportation.”

“We’ve also recently announced an exciting partnership with Sunergise New Zealand to provide solar power solutions for our tenants across our portfolio. And we are proud to partner with like-minded businesses, like commercial cleaning company JT Group, to significantly reduce the amount of water and energy needed to clean our properties.”

As both fund manager and property manager, McKenzie says sharing the progress PMG is making is important to align the expectations of both its investors and its tenants.

“Beyond supporting a sustainable environment for future generations, we shouldn’t need a stick or carrot to encourage us – but the reality is that improving the environmental performance of buildings makes sense economically too. Green energy is an increasingly important factor in helping us retain our quality tenants, thereby aiding our ability to continue to deliver regular returns to investors.”

PMG’s sustainability initiatives also address social wellbeing, with a strong focus on improving financial literacy among young New Zealanders. This year the PMG Charitable Trust has supported 15,000 Year 10 students to attend Life Education Trust’s SMART$ financial literacy programme and designed and piloted a new online financial literacy tool.