Environmental Impact
CLIMATE ACTION AND ENERGY MANAGEMENT
Managing the environmental impacts of our portfolio is a central part of PRIME's sustainability strategy. As buildings contribute substantially to global GHG emissions, we recognise the role we play in addressing climate-related challenges. Reducing energy use, improving operational efficiency, and adopting innovative low-carbon solutions are therefore key focus areas as we work to lower the carbon footprint of our assets.
This work is guided by PRIME's Environmental Policy, which sets out clear expectations for how we manage the physical impacts of our properties, conserve natural resources, and strengthen environmental performance across our operations. The policy acknowledges our contribution to GHG emissions and emphasises the operational, financial, and workplace benefits that can be achieved through responsible resource management. These principles support our broader goals to reduce emissions and consumption, improve utility efficiency, and enhance overall building performance which ultimately contributes to PRIME's long-term competitiveness and stakeholder value creation.
Environmental considerations are embedded throughout our business planning and operational processes. In FY2024, we formalised quantitative short- and medium-term targets relating to energy and emissions management. These targets were developed by the Management, endorsed by the Board, and shaped by projected physical occupancy trends, allocated ESG budgets, and ongoing initiatives aimed at system optimisation and operational improvements.
PRIME continues to make steady progress towards achieving our 2030 emissions and energy reduction targets. Although our targets reference FY2022 as baseline, a year with relatively low physical occupancy, we remain confident that the reductions we aim for remain both realistic and meaningful versus the baseline year.
Environmental factors also play an important role in our investment decisions. Prior to any new acquisition, we assess relevant environmental metrics and may commission independent experts to conduct environmental site assessments, climate risk reviews, or other specialised studies. This approach helps ensure that material environmental risks and opportunities are appropriately evaluated before final decisions are made.
PRIME continues to prioritise climate action as a core part of our long-term strategy. To support this, we have undertaken a climate risk assessment aligned to the recommendations of the TCFD framework to strengthen our understanding of climate-related risks and opportunities. The outcomes of this assessment are presented in the subsequent sections and demonstrate how we are embedding climate resilience across our portfolio.
WATER MANAGEMENT
Water plays an important role in PRIME's operations, supporting tenant use and landscape irrigation across our portfolio. Recognising its importance, we treat responsible water management as a priority that strengthens operational efficiency, supports long-term resource stewardship, and reduces our environmental footprint.
Guided by our Environmental Policy, we apply a structured approach to identifying, assessing, and implementing water-related initiatives at both the portfolio and asset levels. This includes analysing consumption patterns, addressing operational inefficiencies, and improving performance through technology upgrades, behavioural measures, and continuous monitoring.
We adopt a data-driven process to understand and manage our water impacts. Consumption is tracked across all properties to detect trends, anomalies, and opportunities for improvement, enabling tailored actions that reflect each asset's operating profile. As we deepen our understanding of consumption dynamics, we will define short-, medium-, and long-term quantitative targets that reflect reduction potential and resource-efficiency goals.
Property management teams actively implement water conservation measures by planning, developing, and overseeing the efficient use of water resources. These efforts are particularly crucial for properties situated in drought-affected regions like Texas and California4.
This management approach ensures our efforts remain proactive, operationally grounded, and well aligned with PRIME's broader environmental commitments. By integrating water considerations into daily operations and long-term planning, we aim to preserve scarce resources, enhance resilience, and support more sustainable outcomes across our portfolio.
4 Properties in Texas: (1) Tower 909, (2) Promenade I & II. Properties in California: (1) Park Tower, (2) Tower I at Emeryville, (3) Sorrento Towers
WASTE MANAGEMENT
Waste generated across PRIME's properties arises predominantly from tenant activities, making responsible waste management a material topic for our operations. Effective waste stewardship requires a clear understanding of waste sources, consistent monitoring, and the sustained implementation of reduction and recycling initiatives. Guided by our Environmental Policy, PRIME is committed to minimising waste impacts and supporting more circular resource flows across our portfolio.
Our approach emphasises active engagement with tenants to encourage responsible consumption and disposal behaviours. Through regular communication, identification of waste generation trends, and targeted initiatives at both the portfolio and property levels, we work collaboratively to improve waste outcomes. This includes maintaining recycling programmes across all assets, with an emphasis on single-stream recycling where appropriate to simplify sorting, increase participation, and enhance overall efficiency. These programmes, coordinated by the LPC ESG Team, help divert materials from landfill and contribute to broader circular economy objectives.
To support informed decision-making, we collect waste and recycling data from licensed waste management vendors and track performance over time. This monitoring allows us to evaluate the effectiveness of our initiatives, identify areas of improvement, and tailor approaches to the specific operating contexts of individual properties.
Looking ahead, PRIME remains committed to expanding our waste management efforts, including circularity-focused measures and further tenant engagement initiatives. As we continue to analyse waste generation patterns, we will establish short-, medium-, and long-term quantitative targets that reflect reduction opportunities and support our broader environmental goals.
Through this structured and proactive approach, we aim to reduce waste impacts, enhance recycling, and align our operational practices with PRIME's long-term sustainability commitments.
For more information, please refer to page 92-105 of PRIME's 2025 Annual Report.