Sustainability — Reporting & Disclosure

Taskforce on Climate-related Financial Disclosures (TCFD) was developed as a result of climate change presenting a financial risk to the global economy.

Financial markets needed clear, comprehensive, high-quality information on the impacts of climate change. This includes the risks and opportunities presented by rising temperatures, climate-related policy, and emerging technologies in our changing world.

In September 2020, the NZ Government announced its intention to implement mandatory reporting on climate risks and tasked the External Reporting Board (XRB) with developing reporting standards to support the new reporting regime based on the global TCFD guidelines.

In October 2021, the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act was passed. As a result, eligible reporting entities (RE) in Aotearoa New Zealand are required to submit reporting detailing their approach to climate-related risks and opportunities. Precinct will be publishing our first Climate Statement in October 2024.

The Science Based Targets initiative (SBTi) is a corporate climate action organisation that enables companies and financial institutions worldwide to play their part in combating the climate crisis.

SBTi develop standards, tools and guidance which allow companies to set greenhouse gas (GHG) emissions reductions targets in line with what is needed to keep global heating below catastrophic levels and reach net-zero by 2050 at latest.

The Science Based Targets initiative (SBTi):

- Defines and promotes best practice in emissions reductions and net-zero targets in line with climate science.

- Develops standards, tools and guidance to enable companies and financial institutions to set science-based targets in line with the latest climate science.

- Through its validation services arm, assesses and validates companies’ and financial institutions’ targets

Precinct have committed to submit for peer review of our science-based target by March 2026.

GRI (Global Reporting Initiative) is an independent, international organisation that helps businesses and other organisations take responsibility for their impacts, by providing them with the global common language to communicate those impacts. 

Precinct utilises GRI as the framework to guide the inclusion of ESG references within our annual reporting.

Toitū net carbonzero certification is an internationally recognised programme and demonstrates our commitment to the environment and our business’s sustainability.

By partnering with Toitū Envirocare, Precinct has been able to accurately measure our greenhouse gas emissions and put in place strategies to manage and reduce impacts. Precinct is very pleased to have achieved and maintained Toitū net carbonzero certification. We are offsetting the unavoidable emissions from our operations by allocating high-impact carbon offset units from international projects screened by the team at Toitū.

Precinct publicly discloses our emissions and the source of associated offset units procured through our certificates located on the Toitū Envirocare website.

MSCI Ratings aim to measure a company's resilience to long-term, financially relevant ESG risk.

In 2024, Precinct received a rating of A (on a scale of AAA-CCC) in MSCI ESG Ratings assessment.

Click here to find out more about MSCI ESG Ratings.

The WELL Equity Rating gives organisations an actionable framework to improve access to health and well-being, celebrate diversity, prioritise inclusivity and promote sensitivity while addressing disparities in populations that have been traditionally marginalised and underrepresented.

Precinct is proud to be the first real estate organisation to achieve this outcome for our Corporate Office in Oceania.

Further information on the WELL Equity rating can be found here.

The overarching measure Precinct have chosen to use as its core environmental, social and governance (ESG) indices performance benchmark is the Global Real Estate Sustainability Benchmark (GRESB).

GRESB assessments are guided by what investors and industry consider to be material issues in the sustainability performance of real estate investments. GRESB is considered the global standard for ESG benchmarking and reporting for real estate.

Precinct achieved a Participation & GRESB Score in 2024 of 89 out of 100.

We are trending ahead of the current GRESB global average of 76 and we are in line with our NZ/AUS peers. The Australia and New Zealand real estate sector continue to lead globally in ESG performance.

Precinct became a member of GRESB in March 2018. We believe that GRESB is the most appropriate external assessment tool for our business to report against annually.

Click here to find out more about GRESB.

Precinct is proud of our commitment to the World Green Building Council Net Zero Carbon Buildings Commitment, the first New Zealand property owner to do so.

Our aim is to achieve net zero operational GHG emissions for all buildings under direct operational control by 2030.

The Commitment considers the whole lifecycle impact of buildings and will see Precinct improve energy efficiency of existing buildings to reduce carbon intensity and offset residual emissions.

A selection of these initiatives include:

- Target over 60% of the portfolio having at least a best practice (5 star) Green Star rating.

- Target 100% of portfolio +4-star NABERSNZ by 2030.

- Develop energy efficient buildings through sustainable building design.

- Invest in and implement renewable infrastructure where feasible.

- Maximise embodied carbon reductions for new developments and major renovations of existing assets by carrying out lifecycle assessments (LCAs) and utilising low carbon design, materials and construction processes.

Further details on this commitment can be found on the WGBC website.

Precinct has completed the first year of voluntary reporting in 2023 and looks forward to mandatory reporting in 2024.

Green Star is an internationally-recognised rating system for the sustainable design, construction and operation of buildings, fit outs and communities. Green Star supports stakeholders in the property and construction sectors to design, construct and operate projects in a more sustainable, efficient and productive way. It provides occupiers with a trusted mark of independent verification to support decision-making.

Precinct uses the New Zealand Green Building Council’s (NZGBC) Green Star building rating tool for assessing the sustainability of buildings at all phases including Design, Construction and Operation and Precinct is a proud member of the NZGBC. We work in partnership with the NZGBC on a wide range of our business activities with the aim to adopt market-based green building practices.

Our target is for >60% of the Portfolio by value to achieve a minimum 5 star ‘NZ Excellence’ As-Built rating.

In addition to the progress referenced for our >60% by value target of 5 star rated assets, Precinct has also achieved 100% coverage for eligible assets in line with the Green Star Performance standard.

Click here to find out more about Green Star.

NABERSNZ is a ratings scheme to measure and rate the energy performance of office buildings in New Zealand. The scheme is based on National Australian Building Environmental Rating System (NABERS) and takes into consideration the climatic conditions in which the building operates, the building size and occupancy, hours of use, the level of services it provides and the energy sources (e.g. electricity and gas) it uses. By comparing a building’s energy performance data against NABERSNZ benchmark data, a star rating is calculated that reflects the building’s performance and enables robust comparison with other buildings.

Precinct uses NABERSNZ as a key tool for rating the energy efficiency of its office buildings. It is an independent tool, backed by the New Zealand Government. NABERSNZ allows buildings to be rated and then re-rated, resulting in improvements in their energy efficiency from year to year.

Our target is for 100% of directly owned assets within the Portfolio to achieve a minimum 4 star NABERSNZ Base Building Rating by 2030.

Click here to find out more about NABERSNZ.

Administered by the International WELL Building Institute (IWBI), the WELL at Scale program allows Precinct to measure and improve organisational health performance and impact across all locations in our Portfolio. To date we have enrolled all eligible existing assets, developments and tenancies under our operational control.

Precinct see the value in measuring and improving on benchmarks related to Social and Governance metrics as well as Environmental. The WELL at Scale program allows our organisation to pursue this in a streamlined and consistent way, whilst also being subject to a robust peer review process.

We are targeting a score of 40 points average by 2025 in line with our global peers.

Administered by the New Zealand Green Building Council (NZGBC), Homestar provides a clear framework for better design and build for a more efficient home.  It is an independent rating tool for assessing the health, efficiency, and sustainability of homes across Aotearoa New Zealand. 
Homestar is a holistic tool that awards points across various credits to rate a home's performance and environmental impact. There are mandatory minimum requirements focused on keeping the home, warm, dry, well-ventilated, and operating efficiently.

As Precinct progresses this aspect of our business, we have an initiative in place to achieve a 6 Homestar rating for at least 60% of our living developments. Further details on the Homestar program can be found here.

Precinct has adopted a Sustainable Debt Framework since 2020 to align financial strategy with environmental goals, ensuring our business is attracting capital toward projects that deliver positive sustainability outcomes. By establishing clear criteria for green bonds and green loans, our framework provides transparency and accountability, attracting investors focused on specific ESG performance metrics. This approach not only supports the funding of our responsible developments but also reinforces our strong commitment to sustainability while enhancing our reputation in delivering long term value.

Please access Precinct’s Sustainable Debt Framework here.