GPT GROUP — Environmental & Social Information 2024

Feb 18, 2024

ASX Announcement

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19 February 2024

2023 Climate and Nature Disclosure Statement

The GPT Group (‘GPT’) provides its 2023 Climate and Nature Disclosure Statement.

-ENDS-

Authorised for release by The GPT Group Board.

For more information, please contact:

Investors

Penny Berger Head of Investor Relations & Corporate Affairs +61 402 079 955

Media

Grant Taylor Group External Communications Manager +61 403 772 123

GPT Management Holdings Limited (ACN 113 510 188) and GPT RE Limited (ABN 27 107 426 504) as responsible entity of General Property Trust (ARSN 090 110357), together GPT.

Level 51, 25 Martin Place Sydney NSW 2000 gpt.com.au

Climate and Nature Disclosure Statement 2023

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SUSTAINABILITY REPORTING SUITE

FROM OUR CEO HIGHLIGHTS ABOUT US OUR ENVIRONMENTAL FOCUS

GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDICES

Climate and Nature Disclosure Statement

This Climate and Nature Disclosure Statement (Statement) outlines the steps GPT is taking to identify, assess and manage climate and nature-related risks and opportunities for our business. The Statement has been prepared with reference to:

• The recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)

• The recommendations of the Task Force on Nature-related Financial Disclosures (TNFD), and

• The International Sustainability Standards Board’s (ISSB) International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards:

• S1: General requirements for disclosure of Sustainability-related financial disclosures, and

• S2: Climate-related Disclosures.

The Statement applies to the whole of The GPT Group (GPT or Group), including GPT Funds Management Limited in its capacity as the responsible entity for the GPT Wholesale Office Fund (GWOF) and the GPT Wholesale Shopping Centre Fund (GWSCF).

Our Climate and Nature Disclosure Statement is approved by the GPT Board and prepared in consultation with our cross functional Sustainability Reference Group, which contributes to the identification of foreseeable climate and nature-related risks and opportunities and assists in formulating and implementing our ongoing response to these risks and opportunities.

GPT’s governance structures and risk management processes are common across sustainability-related risks and opportunities, including climate, energy, biodiversity, water, and resource management.

Contents

Sustainability Reporting Suite ________02 Disclaimer _____________03 A message from the CEO and Managing Director ____04 Highlights _____________05 About Us ____________06 Our Environmental Focus ________07 Governance ________________13

Strategy _____________19 Risk Management ___________37 Metrics and Targets __________42 Appendix A: Emissions Scenarios ______44 Appendix B: Risk Analysis and Mitigations ______45 Appendix C: Nature ___________60 Appendix D: Glossary _______________67

GPT acknowledges the Traditional Custodians of the lands on which our business operates.

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We pay our respects to Elders past, present and emerging, and to their knowledge, leadership and connections.

We honour our responsibility for Country, culture and community in the places we create and how we do business.

Artwork: ‘Saltwater Spirit’ by Lowell Hunter (proud Nyul Nyul Saltwater man) and Bobbi Lockyer (proud Ngarluma, Kariyarra, Nyul Nyul and Yawuru woman).

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SUSTAINABILITY REPORTING SUITE FROM OUR CEO HIGHLIGHTS ABOUT US OUR ENVIRONMENTAL FOCUS GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDICES

Sustainability Reporting Suite

This Climate and Nature Disclosure Statement is part of the GPT corporate reporting suite for 2023. For additional detail on GPT’s sustainability response, it should be read in conjunction with the other reports, statements and resources within the suite.

Annual Report

An integrated report summarising the value created by GPT’s business activities that includes the annual financial statements for the Group.

Sustainability Reporting

Contains our performance, priorities and progress in addressing material sustainability matters. Updated website to be released in April 2024.

Sustainability Data Dashboard

Previously called the ‘Environmental Data Dashboard’, our updated dashboard provides a comprehensive overview of our key environmental, social and governance (ESG) performance data for the reporting year, including alignment to global sustainability reporting frameworks.

Sustainable Debt Framework

Corporate Governance Statement

An annual statement of how GPT addresses the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations (4th Edition).

Modern Slavery Statement

An annual statement describing GPT’s actions to assess and address modern slavery risk in our operations and supply chain.

GPT Website

Contains information about our enterprise policies, processes and sustainability initiatives.

In addition to the reporting suite, GPT participates in ESG indices and benchmarks to measure our sustainability performance and provide transparency for our stakeholders. For more information see our Sustainability website.

A framework outlining how we intend to issue and manage sustainable debt instruments across GPT and its managed funds.

Memberships and commitments

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Principal supporter Nature Roadmap

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SUSTAINABILITY REPORTING SUITE

FROM OUR CEO HIGHLIGHTS ABOUT US OUR ENVIRONMENTAL FOCUS GOVERNANCE STRATEGY RISK MANAGEMENT

METRICS AND TARGETS

APPENDICES

Disclaimer

This Climate and Nature Disclosure Statement (Statement) has been prepared by The GPT Group comprising GPT RE Limited (ACN 107 426 504; AFSL 286511), as responsible entity of the General Property Trust, and GPT Management Holdings Limited (ACN 113 510 188) (together, GPT). It has been prepared for the purpose of providing GPT’s investors with general information regarding GPT’s performance and plans for the future with respect to sustainability-related risks and opportunities. It is not intended to be and does not constitute an offer or a recommendation to acquire any securities in The GPT Group.

This Statement contains forward-looking statements and statements of opinion. These may include statements regarding the plans, strategies and objectives of management; GPT’s purpose, values, targets and goals in relation to sustainability; GPT’s future performance; external enablers (e.g. technological advancements, increased availability of lower-emissions energy and building materials, the availability and quality of carbon offsets, and policy support); fluctuations in carbon and energy markets; and climate and nature-related scenarios. Such statements may be identified by the use of terminology including, but not limited to, ‘intend’, ‘aim’, ‘ambition’, ‘aspiration’, ‘goal’, ‘target’, ‘project’, ‘see’, ‘anticipate’, ‘estimate’, ‘plan’, ‘objective’, ‘believe’, ‘expect’, ‘commit’, ‘may’, ‘should’, ‘need’, ‘must’, ‘will’, ‘would’, ‘continue’, ‘forecast’, ‘guidance’, ‘trend’ or similar words.

Users of this Statement are cautioned not to place undue reliance on such statements, particularly in light of the long time horizon which this Statement discusses and the inherent uncertainty in possible policy, market and technological developments in the future.

There are also limitations with respect to climate and nature scenario analysis, and it is difficult to predict which, if any, of the scenarios might eventuate. Scenario analysis is not an indication of probable outcomes and relies on assumptions that may or may not prove to be correct or eventuate.

The information provided in this Statement is for general information only. It is not intended to be investment, legal or other advice and should not be relied upon as such. You should make your own assessment of, or obtain professional advice about, the information in this Statement to determine whether it is appropriate for you.

You should note that past performance is not necessarily a guide to future performance. While every effort is made to provide accurate and complete information, The GPT Group does not represent or warrant that the information in this Statement is free from errors or omissions, is complete or is suitable for your intended use. In particular, no representation or warranty is given as to the accuracy, likelihood of achievement or reasonableness of any forward-looking statements contained in this Statement or the assumptions on which they are based. Such material is, by its nature, subject to significant uncertainties and contingencies outside of GPT’s control. Actual results, circumstances and developments may differ materially from those expressed or implied in this Statement.

To the maximum extent permitted by law, The GPT Group, its related companies, officers, employees and agents will not be liable to you in any way for any loss, damage, cost or expense (whether direct or indirect) howsoever arising in connection with the contents of, or any errors or omissions in, this Statement.

Information is stated as at 31 December 2023 unless otherwise indicated. Except as required by applicable laws or regulations, GPT does not undertake to publicly update or review any forward-looking statements, whether as a result of new information or future events.

All values are expressed in Australian currency unless otherwise indicated.

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SUSTAINABILITY REPORTING SUITE

FROM OUR CEO

HIGHLIGHTS

ABOUT US

OUR ENVIRONMENTAL FOCUS

GOVERNANCE

STRATEGY

RISK MANAGEMENT

METRICS AND TARGETS APPENDICES

A message from the CEO and Managing Director

The global threat posed by climate change and the need for urgent mitigating action is well accepted. However, other impacts on nature are often overlooked, including the decline in biodiversity, over-exploitation of natural resources, and the pollution of land and water.

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At GPT, we recognise that people and communities are impacted by these pressures and that our response needs to address both climate and nature-related issues while delivering long term value for our stakeholders.

This is GPT’s first integrated Climate and Nature Disclosure Statement. It has been prepared to align with the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD), the Taskforce on Nature-related Financial Disclosures (TNFD), and in preparation for the adoption of the International Sustainability Standards Boards (ISSB) Sustainability Disclosure Standards. This disclosure outlines the steps we are taking to identify, monitor, mitigate and adapt to climate and nature-related risks and opportunities that could have a material impact on our business and on the communities in which we operate.

At its core, the built environment displaces natural environments. It draws upon natural resources from all over the world to service direct needs as well as the needs of the people and business activities that occupy the space. These impacts on nature are occurring at unsustainable rates that cannot be re-absorbed by the environment without causing a declining state of nature and the ecosystem services nature provides, which are essential for a resilient future.

As the owner and manager of a $32.6 billion portfolio of retail, office, and logistics properties across Australia, we have taken a strong position on climate action. Through our Climate Policy, we are fully committed to tangible actions that meet or exceed expectations under the Paris Agreement to avoid dangerous climate change and limit global warming to well below 2°C. In addition, our commitments through our Biodiversity, Water and Resource Circularity Policies are playing a crucial role in helping us responsibly manage our other nature-related impacts.

Our emissions reduction actions to-date and future targets track well ahead of Australia’s commitments to the Paris Agreement. We are also committed to a nature-positive future by measuring and reducing our impacts where feasible and compensating for residual impacts through nature restoration projects that also remove carbon from the atmosphere.

As part of our Net Zero Plan, at the end of 2023 GPT proudly achieved carbon neutrality for all material emissions sources (including scope 1, 2 and 3) under our operational control. This includes our corporate operations and base building emissions and embodied carbon from developments. We provide full details of these achievements and future targets within the sustainability suite.

Climate and nature-related risk and opportunity considerations inform key decisions across GPT, both to minimise our impact on the environment and to ensure the resilience of our assets and core business strategy to the changing environment. We undertake resilience planning for a transition to a low carbon economy as well as scenario modelling and climate adaptation planning for potential future physical impacts caused by continued business as usual emissions. We also implement processes of reviewing and responding to other nature-related risks and opportunities.

Our actions to address climate change and nature impacts align with our purpose: Experience first. We create experiences that drive positive impact for people, place and planet. Our commitment to ESG leadership is an important pillar of GPT’s overall strategy and, combined with our environmental focus of – ‘Carbon Neutral Now, Nature Positive Next’ – we believe will contribute to long term value creation.

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Bob Johnston Chief Executive Officer and Managing Director

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SUSTAINABILITY REPORTING SUITE

FROM OUR CEO

HIGHLIGHTS ABOUT US OUR ENVIRONMENTAL FOCUS

GOVERNANCE

STRATEGY

RISK MANAGEMENT

METRICS AND TARGETS

APPENDICES

Highlights

GPT is the first Australian commercial property owner to have both operational buildings and new developments certified against the Climate Active Carbon Neutral Standards.

Nature

300,000 trees planted in partnership greenspace biodiversity with Greenfleet since 2019[110ha] assessments completed for operational assets since 2022

34% closed loop recycling in 2023

100%

of GPT’s key assets reviewed for nature interfaces

245ha

57%

of trees planted via GPT’s ‘Restoring Country for Climate’ partnership since 2022

water intensity reduction since 2005[1]

Climate

$937m

92%

sustainable finance total for GPT and GWOF since 2021

emissions intensity reduction since 2005[1]

100%

8MW

of GPT operational assets reviewed for climate vulnerability

of installed solar PV capacity on GPT-owned assets

52%

25

Energy intensity reduction since 2005[1]

GPT operationally controlled assets Climate Active Carbon Neutral Certified

“GPT has been a clear leader in driving positive outcomes for nature in the property industry. Their focus on nature, combined with their continued commitment to renewable energy and Carbon Neutral Certifications has inspired positive change throughout our industry.”

Davina Rooney CEO, Green Building Council of Australia

1. Measured against GPT’s 2005 baseline as at 31 December 2023. Detailed data and breakdowns are available in GPT’s sustainability data dashboard.

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FROM OUR CEO

HIGHLIGHTS ABOUT US OUR ENVIRONMENTAL FOCUS

GOVERNANCE

STRATEGY RISK MANAGEMENT

METRICS AND TARGETS

APPENDICES

About Us

GPT is a vertically integrated diversified property group that owns, develops and actively manages a portfolio of high quality australian retail, office and logistics assets, with assets under management of $32.6 billion. The Group utilises its real estate management platform to enhance returns through property development and funds management.

our purpose is to create experiences that drive positive impact for people, place and planet. experience First puts the customer experience at the heart of everything we do. it means leading with insight and research to understand their needs. shifting our focus from the physical asset to the benefit of what happens inside to deliver real and meaningful impact.

Our Values

Everyone counts

People really matter to us. We learn from our differences and we pull together as one. life is precious, so safety and wellbeing are our priority, always.

Imagine if…

We believe anything is possible. We’re inquisitive about the world around us, and use customer insights to drive the creative and the new. Great questions drive great outcomes.

Go for it!

We turn ideas into action. We back ourselves and each other. energy and enthusiasm power everything we do. We’re great at getting things done. We’re excited to pioneer the firsts that others follow.

Make an impact

Property impacts our planet in a very real way. so we act with courage and conviction to make a difference — no matter how big or small. We know a better tomorrow is up to each of us.

This idea is central to our interactions with customers, to our market offering, to the experience we create for our employees.

GPT’s values are how we deliver on our purpose, guiding how our employees can live what they believe and drive positive outcomes for our stakeholders.

leadership in esG is core to GPT’s strategy. our commitment is to deliver resilient assets that optimise environmental outcomes to create and protect value over the long term.

GPT’s sustainability goals and efforts align with our commitment to positively contribute to people, place and planet. sustainability practices underline our operations and are integrated into our organisational culture, stakeholder engagement, development design, governance and investment decisions.

FIRST

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FROM OUR CEO

HIGHLIGHTS ABOUT US

OUR ENVIRONMENTAL FOCUS

GOVERNANCE STRATEGY

RISK MANAGEMENT

METRICS AND TARGETS APPENDICES

Our Environmental Focus

CARBON NEUTRAL NOW, NATURE POSITIVE NEXT

Our objective is to deliver resilient assets that optimise the following environmental outcomes:

Climate Response

Water Neutrality

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GPT is delivering certified carbon neutrality and building resilience to the impacts of climate change.

GPT strives to be water neutral and resilient to drought and flood (water scarcity and extreme rainfall).

Restoring Nature

Resource Circularity GPT is committed to circular outcomes by maximising the lifecycle of materials, closed-loop recovery processes and avoiding unnecessary consumption of materials.

GPT is focused on achieving a net positive impact on biodiversity[1] .

GPT’s policies are aligned with the principles of the Paris Agreement and Kunming-Montreal Global Biodiversity Framework.

1. GPT’s nature positive targets are detailed in the TNFD section of our Sustainability Data Dashboard. The specific net positive impact on biodiversity refers to the policy commitment to invest in biodiversity protection and restoration projects with a cumulative footprint greater than that of GPT owned and operationally controlled assets.

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SUSTAINABILITY REPORTING SUITE

FROM OUR CEO

HIGHLIGHTS ABOUT US OUR ENVIRONMENTAL FOCUS

GOVERNANCE STRATEGY RISK MANAGEMENT

METRICS AND TARGETS

APPENDICES

Our Environmental Focus

CONTINUED

Putting definitions upfront

Carbon Neutral vs Net Zero

GPT uses the term ‘Carbon Neutral’ to describe the achievement milestones for our emissions reduction targets, as part of our overall net Zero Plan. The language of ‘Carbon Neutral’ aligns with the Australian Government’s Climate Active Carbon Neutral program, which independently validates and certifies organisations, buildings and developments as operating on a carbon neutral basis. GPT’s Carbon Neutral achievements are certified by Climate Active, Australia.

GPT’s Climate Active carbon neutral targets and outcomes have a reporting boundary of Scope 1, 2 and 3 emissions under our operational control, in line with established global standards, including the GHG Protocol and ISO14001 Environmental Management Systems.

GPT measures and sets Scope 3 emission targets informed by the level of control we have for these emissions, which are principally the upstream emissions for goods and services that we procure. We also work to influence downstream Scope 3 emissions, particularly those of our tenants.

Our Net Zero Plan describes our broader climate and nature response, which includes both efforts for decarbonisation and an orderly transition to a resilient, low-carbon economy and ensuring our business prospects are protected in whichever climate scenario eventuates. We believe that it is important that leaders go beyond decarbonising their own activities to ensure that they invest in driving and enabling broader decarbonisation and an orderly transition.

Throughout this Statement, we provide detail on our measurement and reporting boundaries for our Carbon Neutral achievements.

Nature Positive

Climate and the atmosphere are subsets of nature, and the effects of increased carbon concentrations affect land, freshwater, oceans, and biodiversity.

Nature is referred to as both the non-living and living environment (climate, land, freshwater, ocean, and biodiversity, of which people are a part).

GPT aims to invest in processes that achieve a positive impact across multiple systems of nature, while simultaneously mitigating multiple risks. Our focus of Carbon Neutral Now, Nature Positive Next acknowledges our parallel investment in climate and nature responses. While we are delivering on carbon neutral milestones already, there is still much to do to deliver on our broader nature goals.

Like decarbonisation goals, nature positive can have numerous meanings. At GPT, we have adopted the following International Union for Conservation of Nature (IUCN) definition:

A nature-positive future means that we, as a global society, halt and reverse the loss of nature measured from its current status, reducing future negative impacts alongside restoring and renewing nature, to put both living and non-living nature measurably on the path to recovery.

In practice, for GPT this means understanding and measuring the natural environments that have been displaced by our buildings and the direct impacts on nature and its resources. We will take positive action to reduce these impacts and enhance natural environments in respect of our properties.

We will focus on compensating for residual impacts through nature restoration projects with positive impacts across multiple natural systems, such as reforestation projects that remove carbon, improve biodiversity and improve water quality and flows.

The specific 2030 target refers to the policy commitment to invest in biodiversity protection and restoration projects with a cumulative footprint greater than that of GPT owned and operationally controlled assets. GPT’s nature positive targets are detailed in the TNFD section of our Sustainability Data Dashboard.

GPT’s context for climate and nature

As an owner and/or manager of 118 real estate assets, GPT’s business and operations have dependencies and impacts on nature. The built environment is highly dependent on nature, relying on natural resources, and ecosystem services, including climate regulation, flood mitigation, soil and sediment retention and water supply, and ecological processes for building construction, maintenance, and functionality. The World Economic Forum (WEF) has estimated that more than half of the world’s economic output – US$44 trillion of economic value generation – is highly or moderately dependent on nature. Additionally, the WEF has reported that the impacts of extreme weather events, critical change to Earth systems and biodiversity loss and ecosystem collapse are the top three most severe risks identified by global executives for the next decade. Australia, where all of GPT’s assets are based, is a megadiverse country, and one of the most biologically rich countries in the world.

Like our net Zero Plan, GPT’s Nature Plan is being developed to ensure we manage any nature-related risk to our business and, where possible, leverage opportunities from our understanding of how our business activities interact with nature.

• more detail on GPT’s nature Plan will be available on our website in april 2024

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FROM OUR CEO

HIGHLIGHTS

ABOUT US

OUR ENVIRONMENTAL FOCUS

GOVERNANCE STRATEGY RISK MANAGEMENT

METRICS AND TARGETS APPENDICES

Our Environmental Focus

CONTINUED

GPT’S decarbonisation tracks well ahead of Australia’s Paris Agreement target.

KEY

Australia’s Historical Emissions Australia’s 2023 Projections* GPT’s Historical Emissions GPT ‘s 2023 Projections

Net Zero Pathway

GPT has a long term track record of decarbonisation towards net zero. We will deliver resilient assets that optimise environmental outcomes.

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100
Started voluntary
renewable procurement
80 GPT’s first Climate Active Carbon
Neutral (CN) certification [1]
CN aspirations included in GPT’s
Climate Change and Energy Policy Set GPT’s 2030 net zero targets
Consolidate approach Energy Master Plan established
60 to GPT’s energy and
renewables contracting First CN buildings certifications piloted
Highlights
All GWOF operating assets achieve CN certification
• GPT is the first Australian commercial property owner
to have carbon neutral certified operational buildings First Group owned buildings certified CN
and developments.
40
• GPT supported Greenfleet reforestation projects removing GPT’s first development asset achieves upfront
embodied CN certification
nearly 200,000 tCO2e by planting more than 300,000 trees Target 2030:
since 2019. Co-owner
All GPT managed GWSCF, UniSuper and
ACRT assets carbon neutral certified operationally
• Establishment of Loadflex programs and Smart Energy Hubs controlled assets
20 to assist with an orderly transition to a low carbon energy grid. Target 2024: All GPT managed to achieve net zero
assets to be certified CN
• Climate risk assessments and adaptation planning underway
to improve asset resilience to climate risk.
• Over $340M in accrued energy cost savings from efficiency
improvements since 2005.
0 2030
* Australia’s legislated emissions target.
Logistics assets are excluded as they are managed by tenants. Principal supporter
1. When GPT refers to Carbon Neutral (CN) certification, we are referring to delivery of third party certification against Nature Roadmap
the Scope 1, 2 and 3 operationally-controlled emissions required in the Australian Government’s Climate Active
Carbon Neutral Standard for Organisations, Buildings or Products (Upfront Carbon Buildings).
TARGET NETZE
T’S RO
2007
2008 2009
2010
2011
2012
2013
2014 2015
2018
2016 2017 2019
2020 2021 2022 2023
2024
2025
2026
2027
2028
2029
2030
% Indexed Emission Change
PG YB
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Target 2030: Co-owner operationally controlled assets to achieve net zero

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HIGHLIGHTS ABOUT US

OUR ENVIRONMENTAL FOCUS

GOVERNANCE STRATEGY RISK MANAGEMENT

METRICS AND TARGETS APPENDICES

Our Environmental Focus

CONTINUED

Net Zero Plan

Climate Response

Decarbonisation

As part of our environmental sustainability focus of Carbon Neutral Now, Nature Positive Next, GPT has made significant progress with our Net Zero Plan, which includes both decarbonisation goals with certified carbon neutral milestones as well as goals to improve climate resilience.

GPT has set and is delivering on carbon neutral milestones for all material emissions where we have principal decision-making authority. The table below summarises how we have achieved our milestones.

	Corporate Emissions Building Operations Upfront Embodied Carbon
Measure	• Scope 1, 2 and 3 operationally controlled emissions.
	• Emissions from office energy, proportion of base building emissions, flights, accommodation, services and consumables. • Emissions from electricity, gas, waste, refrigerants, diesel and water. • Emissions from construction materials and processes.
Eliminate and reduce	• Improve office energy efficiency. • Use renewable electricity. • Preference carbon neutral buildings and consumables. • Minimise travel. • Efficient buildings. • 100% on-site and off-site renewable electricity. • Electrification of assets. • Low/no GWP refrigerants. • Design efficiencies. • Low embodied carbon materials. • Low carbon construction processes.
Offset	• Adopt a ‘Last but not later’ approach. • GPT offsets only residual emissions to achieve net zero.
Disclose	• Independently validate and transparently disclose outcomes and processes.

Climate Resilient

Key elements of GPT’s climate resilience strategy include:

• Climate leadership linked to sustainable finance

• Detailed climate risk reviews and aligned strategy

• Securing long term supply, credibility and cost for offsets, and

• Asset-level climate adaptation plans

• Leading decarbonisation strategies to improve resilience to climate-related transition risks.

• Demand-side flexibility and EV plans for an orderly transition to a low carbon grid

• Energy procurement plan to minimise exposure to high and volatile energy costs

Leveraging our influence

We acknowledge that our stakeholders will have their own net zero plans and will be influenced by many of their partners. We also understand that the first and most important way in which we can assist our tenants to decarbonise is to provide them with products that offer low and no carbon building options. With base building emissions often accounting for around a quarter of corporate emissions, GPT’s Carbon Neutral certified buildings are an important decarbonisation step to support our customers across our 3,000 tenancies.

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HIGHLIGHTS

ABOUT US OUR ENVIRONMENTAL FOCUS

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METRICS AND TARGETS

APPENDICES

Our Environmental Focus

CONTINUED

Nature Roadmap

GPT is developing a roadmap toward nature positive outcomes through identifying, assessing and managing nature-related dependencies, impacts, risks and opportunities. We are also investing in on-site biodiversity improvement plans and nature restoration and protection projects with a target to exceed our cumulative built environment footprint by 2030.

GPT is applying the TNFD ‘LEAP’ framework (locate, evaluate, assess and prepare) in delivering our roadmap.

	2012	2014	2014	2018	2020	2022	2023	2024	2026	2028	2030
	Establishment phase				Assess and reset phase			Delivery phase
	• GPT outlines	•	Biodiversity	• Start partnering	• Commence	• Internal ecologist	• TNFD pilot.	• Updated GPT’s policy	• Complete	• Progress report	• Undertake third
	climate and nature with biodiversity, climate and water policies.		assessment tools shared with GBCA.	with Greenfleet for Biodiverse forest restoration carbon offsets.	asset-level biodiversity assessments and management plans.	resource engaged. • Sign Restoring Country for Climate partnership with Greenfleet.	• Establish nature metrics and targets. • Formation of natural capital accounts, identifying material areas of	suite, incorporating nature commitments. • GPT’s first nature disclosure, which integrates TNFD, TCFD and ISSB.	biodiversity management plans for all GPT owned and managed assets.	on nature and climate goals.	party validation of the delivery of outcomes.
							nature interface.	• Formulate
							• Commence water master planning.	nature dependency, impact, and risk and opportunity registries.

Highlights

Our specific 2030 nature positive target is to invest in biodiversity protection and restoration projects with a cumulative footprint greater than that of GPT owned and operationally controlled assets. GPT’s nature‑related targets are detailed in the TNFD section of our Sustainability Data Dashboard.

• Reviewed all GPT assets for interfaces with nature to inform natural capital accounts.

• Supporting Greenfleet to restore 1,100ha of Tall Open Eucalypt Forest in Noosa hinterland.

• Foundational water master planning pilots completed at 10 assets.

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2030
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• Completed 110ha of greenspace biodiversity assessments since 2022.

• 33ha of voluntary (non-regulatory) flora and fauna assessments for greenfield developments.

• Native vegetation seed collection for endangered grassland habitat to preserve genetic diversity.

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HIGHLIGHTS ABOUT US

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Our Environmental Focus

CONTINUED

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NATURE
PLAN
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GPT is progressing and refining our nature Plan as part of our environmental sustainability focus of Carbon neutral now, nature Positive next.

GPT has goals in place to positively impact the environment and improve business resilience to nature-related risks and dependencies.

our nature Plan focuses on our nature-related key objectives of restoring Biodiversity, Water neutrality and resource Circularity, along with our Climate objectives.

How we will be nature resilient

• Strict alignment with the mitigation hierarchy through measurement of both direct and more diffuse impacts, including nature loss through the supply chain.

• Identify and assess nature-related dependencies, impacts, risks and opportunities to eliminate/reduce negative impacts and risk and enhance positive impacts and opportunities.

• Investment in additional (i.e., non-compensatory) nature restoration projects.

	Restoring Biodiversity 2030 land-use targets Water Neutrality 2030 freshwater-use targets Resource Circularity 2030 resource-use/replenishment targets
Measure	• Measure nature-related impacts, dependencies and risks (and opportunities) and register for consideration in decision-making.
	• Measure displacement of natural environments, intersections with significant ecologies and species. • Measure portable water consumption, stormwater impacts and exposure to water stressed regions. • Measure materials consumption, waste to landfill and pollution (inc. CO2) from materials and waste and resource recovery.
Eliminate and reduce	• Biodiversity reviews and create management plans. • Develop GPT Water Master Plan. • Reduce depletion and pollution to levels re-absorbed by the environment without harm.
	• Reduce on-site biodiversity impacts by improving existing ecologies and species. • Reduce water use through water efficiency measures. • Reduce impacts through materials selection design efficiencies.
	• Avoid development and materials that impact biodiversity. • Reduce stormwater impacts by rainwater capture and re-use or release and pollution controls. • Design for re-use and improve materials recovery.
Offset and restore	• Restore on-site species, populations and ecosystems.
	• Adopt ‘last but not later’ approach; only utilise offsets when impacts cannot be eliminated or reduced.
	• Restoring Country for Climate offsetting agreement with Greenfleet will result in permanent carbon removal and improved biodiversity outcomes. • Review and pilot options for a credible water offset process that also delivers biodiversity and climate co-benefits (i.e. wetland or water catchment rehabilitation projects). • Climate biodiversity and water programs with tangible restorative aspects to compensate for any residual impacts in materials and waste supply chains.
Disclose	• Independently validate and transparently disclose outcomes and processes.

Leveraging our influence

• Participated in the Australian • Sharing our experience with • Principal supporter of the Government’s TNFD pilot and early stakeholders to assist them Green Building Council of adopters of the TNFD framework. on their own journeys. Australia’s Nature Roadmap.

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Governance

GPT’s approach to managing and reporting climate and nature-related risks and opportunities is underpinned by our commitment to strong, transparent governance and guided by our overarching commitment to ESG leadership. We regularly and publicly report on progress against our sustainability performance, with independent verification.

We have a range of policies in place to guide us towards

achieving our climate and nature-related strategies and objectives. These policies provide the link between our sustainability commitments and our day-to-day practices by identifying key activities and establishing a roadmap to facilitate decision-making.

For a detailed explanation of all of GPT’s sustainability policies, please see the policies page on our website.

sustainability Policies

Climate and nature-related business risks which include climate, energy, water, resource circularity and biodiversity are considered and addressed in accordance with the GPT Risk Management Framework (RMF), applying the same governance around risk identification, assessment and management as for other key business risks. The RMF is aligned to ISO 31000:2018.

Our approach to managing environmental impacts from sustainability-related risks and opportunities, is addressed through our ISO 14001:2015 certified Environmental Management System (EMS).

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Board Oversight

During the year, the Board was actively engaged in its governance responsibilities, fulfilling their role in accordance with the Board and Committee Charters. Board and Committee meetings are the main forum for the Board to monitor GPT’s performance, set expectations for management and provide oversight over progress against GPT’s strategy. Clear planning and agenda setting ensures the time of the Board and its Committees is used efficiently.

The GPT Board strives to ensure that GPT meets high standards of governance across its operations. The Board and its Committees regularly review governance arrangements and practices to ensure they remain appropriate.

The Board has ultimate responsibility for overseeing the application and management of the Risk Management Framework and the Group’s Environmental Management System (EMS) to ensure that climate change, nature and other sustainability-related financial and environmental risks and impacts are appropriately identified and assessed.

The Board has a mix of skills and experience to enable it to discharge its responsibilities, including in funds management, property investment and development,

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taxation, engineering, accounting and law, which provide insight into the potential business impacts of climate and nature-related risks. For more detail on the skills and experience of the Board, see the Governance section of the 2023 annual report and the 2023 Corporate Governance statement.

Board Committees

The Board has established the Audit Committee and the Sustainability and Risk Committee to assist it in carrying out its responsibilities. Management has established special purpose committees and working groups to focus on specific sustainability matters, with reporting provided to the Board and its Committees as required.

The Chairman of each Board Committee is an independent Non-Executive Director with the appropriate qualifications and experience to carry out that role. The Board receives minutes of Board Committee meetings and updates from the Chair of each Committee to ensure that there is an appropriate flow of information between the Committees and the Board.

The Charters for each Committee were reviewed during 2022, with amendments made to adjust to the changing needs of GPT and evolving governance practices.

The Group’s Sustainability Governance Framework (Chart 1) facilitates the systematic management of climate change, nature, biodiversity and other sustainability-related risks and opportunities across GPT to mitigate potential negative impacts and maximise potential opportunities.

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Chart 1: Sustainability-Related Governance Framework

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A summary of the responsibilities and membership of each Board Committee and key sustainability-related management committees, along with their areas of focus in 2023, is set out in the table on pages 16-17.

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GPT Board/GPT FM Board
GPT FM Audit,
GPT Audit Compliance and GPT Sustainability and Risk
Committee Risk Management Committee
Committee
INFORM & REPORT
Investment
Committee Leadership Team Treasury Committee
INFORM INFORM & REPORT REPORT
Due DiligenceCommittee Sustainability Risk Steering Committee Sustainable Debt Working Group Procurement Energy Team
Evaluates INFORM & REPORT Manages Develop & execute
sustainability Sustainable Debt GPT’s energy
risk in investment Framework procurement
decisions compliance strategy
Sustainability Reference Group
• Identifies & acts to address sustainability-related risks
and opportunities
----- End of picture text -----

• Climate and Nature Disclosure Delivery Team, and

• Materials & Embodied Carbon Working Group

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Technical Consultants and External Assurance
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Name and	Meeting	Sustainability	Reporting	Climate and nature‑related
composition	regularity	governance role	structure	activities in 2023
GPT Board of Directors	9x a year	• Oversee application and management	• Oversight function is performed on behalf	• Directors participated in internally and
(“Board”)		of the Risk Management Framework.	of all entities in The GPT Group, including	externally delivered presentations on
Six independent Non-Executive Directors and one executive Director		• Consider sustainability risks and opportunities, particularly in the context of Group strategy and major investments, performance metrics and associated remuneration.	GPT Funds Management Limited (GPTFM).	various aspects of climate change and nature, including upfront embodied carbon, sustainability reporting standards, carbon offsetting, nature impact and dependencies, electricity demand
				management, regulatory change
				(i.e. TCFD, TNFD and ISSB).
				• Monitored the Group’s performance on key
				ESG metrics and oversaw implementation
				of strategies to improve ESG performance.
				• Approved sustainability KPIs for the CEO.
Board Sustainability and	Quarterly	• Assist the Board with the	• Reports to the Board.	• Reviewed reports from management on
Risk Committee (SRC)	(5 meetings	oversight of risk management		the identified climate and nature-related
Three independent Non-Executive Directors	held in 2023)	and sustainability approach. • Oversee overall approach to climate change and nature-related risks and opportunities.		risks disclosed in the Climate and Nature Disclosure Statement and progress against stated metrics and targets (see Appendix B), and
		• Review quarterly reports on Environmental Management System (EMS), including related assurance activity. • Monitor quarterly progress against sustainability targets.		• Reviewed reports on key projects such as Carbon Neutral certifications, updates to key asset-level physical risk assessments, solar PV installations and climate and biodiversity adaptation planning.
		• Review and recommend to the Board
		for approval the Group’s Climate
		and Nature Disclosure Statement
		and sustainability metrics and targets.

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Name and	Meeting	Sustainability	Reporting	Climate and nature‑related
composition	regularity	governance role	structure	activities in 2023
Audit Committee	Quarterly	• Oversee the Group’s corporate	• Reports to the Board.	• Considered material climate
Three independent Non-Executive Directors		reporting, treasury, taxation, internal audit and external audit practices		and nature-related risks in GPT’s financial reporting.
		and receive updates on assurance of sustainability data.		• Oversaw matters, together with the SRC, relating to the sustainable
				debt issued by GPT.
GPTFM Board, Audit,	Quarterly	• Responsible for matters such	• Reports to the GPTFM Board.	• Considered sustainable debt matters
Compliance and Risk		as sustainability, treasury, financial		and opportunities for GWOF and GWSCF.
Management Committee (ACRMC)		reporting and risk management.		• Received two reports during the year from GPT’s Head of Sustainability on all
Five Independent				aspects of sustainability management
Non-Executive Directors				and sustainability-related risks and
				opportunities.
Sustainability Risk	3x a year	• Oversee climate and	• Reports to Leadership Team	• Reviewed risk management and
Steering Committee (SRSC)		nature-related disclosures.	as required.	sustainability, including GPT’s approach
COO, CFO, CRO (Chair)			• Supported by a cross-business reference group to identify	to climate change and progress in meeting sustainability targets.
			sustainability risks and opportunities.	• Considered current and emerging
				nature-related risks and opportunities.
Investment Committee (IC)	Fortnightly or	• Review investment and major	• Decisions of the IC are subject to sign	• Sustainability matters are required
COO (Chair), CEO, CFO, General Counsel, CRO, and Heads of Retail, Office, and Logistics	more frequently as required	expenditure proposals, taking into consideration climate and nature-related risks and alignment with GPT’s risk appetite and strategic goals.	off by the Due Diligence Committee.	to be considered in all IC proposals.

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Management Accountability

GPT’s Chief Executive Officer (CEO) and Managing Director is accountable for ensuring that the Group is identifying, assessing and managing material sustainability-related risks and opportunities, including those related to climate change and nature, in accordance with the Risk Management Framework. The Chief Risk Officer (CRO) reports directly to the CEO. The CRO is a member of the GPT Leadership Team and is responsible for ensuring GPT’s management teams are identifying, assessing and managing climate change and nature-related risks and opportunities effectively and in accordance with the Risk Management Framework and the EMS.

In addition to roles on the Investment Committee and Due Diligence Committee, the CRO is instrumental in ensuring that major sustainability trends and emerging risks are considered by GPT’s Leadership Team in strategy, and that the Group is appropriately resourced to meet them. Material sustainability-related risks and opportunities are discussed and reported to the SRC quarterly.

Matters regularly considered by the SRC include:

• Risks and opportunities, including in relation to climate, water, resource circularity and nature

• GPT’s EMS and related assurance activity, and

• Progress against metrics and targets disclosed in this Statement.

The Head of Sustainability reports directly to the CRO, ensuring alignment between the EMS and the Risk Management Framework. The Sustainability Team is responsible for formulating and driving implementation of GPT’s sustainability initiatives across the business.

The team includes specialists with expertise in building optimisation and energy, climate science, water management, biodiversity and ecology, resource circularity, data analytics and human rights. Additionally, cross-functional working groups include:

• Climate and Nature Disclosure Delivery Team

• Sustainable Debt Working Group, and

• Materials and Embodied Carbon Working Group.

GPT recognises the requirement for effective risk management as a core capability and consequently all employees are expected to be managers of risk, including climate and nature-related risk. On a six-monthly basis, all business unit managers review and update their business unit risk register with members of the Risk Team.

The CEO and Leadership Team are informed of and consider sustainability-related risks and opportunities through the Investment Committee capital allocation process which takes into account a range of factors, including customer experience, environmental impacts, reputational impacts, risk mitigation, strategic alignment and operational and safety matters.

Key performance indicators (KPIs) that monitor environmental performance are established at an asset level. Corporate metrics and targets (listed on our

sustainability data dashboard) are monitored by subject matter experts in the Sustainability Team and progress is reported through to the relevant Leadership Team members and the Sustainability Risk Steering Committee.

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Climate linked remuneration outcomes

Accountability for the Group’s sustainability and climate-related targets and outcomes is reinforced through KPIs in the performance targets of the CEO, the Chief Operating Officer (COO), the CRO, all members of the Sustainability Team and key operational-level team members. In the case of the CEO, COO, CRO and the Head of Sustainability, these KPIs are directly linked to remuneration outcomes. These climate-related performance indicators are reported to the Board SRC every quarter.

Considering climate and nature factors in major investment decisions

To achieve our policy objectives, GPT continuously monitors and assesses sustainability-related risks and opportunities likely to impact our assets and incorporates these into capital allocation and operational decision-making. For example, all submissions to the GPT Investment Committee are required to address climate and nature-related risks and opportunities.

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Strategy

“GPT looks to take a leading role in sustainability which will position us well for opportunities that may arise from our response to both climate and nature-related challenges and strengthen the prospects of our core business strategy.”

Steve Ford, Head of Sustainability

RESPOND

Climate and nature impacts to GPT’s core business strategy

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GPT’s core business strategy aims to deliver growing and predictable earnings for investors through owning, developing and managing a diversified portfolio of high quality real estate, principally located in australian capital cities and established regional centres.

We differentiate our business through our purpose of – experience First, we create experiences that drive positive impact for people, place and planet.

We achieve our purpose by focusing on what matters most to our customers, which in turn drives enhanced returns and sustainable investments. our customers, including tenants, investors, property owners and the people that use our buildings have a keen interest in how we respond to key environmental sustainability issues.

our commitment to the environment is succinctly captured in our overarching environmental sustainability objective to deliver resilient assets that optimise environmental outcomes with our focus of ‘Carbon neutral now, nature Positive next’. We must be fully informed about the external climate and nature pressures so that we can adapt our strategy to respond where necessary.

GPT’s strategy to optimise our portfolio to grow returns involves taking a long term view of our assets. how and when we develop and evolve our portfolio is informed by our broader strategy, including climate and nature-related inputs that are triggered over the lifecycle of the asset. This approach benefits our tenants and our broader stakeholder groups and improves the resilience of our assets to the impacts of physical and transitional climate and nature-related risks while maximising opportunities.

Climate action, improving nature, human rights and leaving a positive legacy for future generations matters to our customers. our leading practices in environmental and social sustainability enhance relationships with our customers and improve the resilience of our business.

The proactive identification and management of key risks and opportunities, including those related to climate change, biodiversity loss and water, supports the achievement of this strategy.

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Time Horizons for climate and nature‑related risks and opportunities

GPT’s strategy to optimise our portfolio involves taking a long term view of our assets and sustainability initiatives.

For climate and nature scenario analysis, GPT considers our strategy and response to climate change impacts over the time horizons listed below that align with the lifecycle of our assets.

The time horizons are defined with reference to the typical lifecycle of commercial buildings, which provides GPT with the flexibility to make decisions on an asset by asset basis depending on where each asset sits in its lifecycle, rather than taking a simple portfolio-level approach to evaluating risks and opportunities.

For example, when an established building is approaching a major redevelopment, we will undertake a detailed physical climate risk assessment. The assessment will include developing design and construction responses to improve resilience to foreseeable physical risks over the next 50 years, being the period for which we would expect the major building elements to last.

Today

2030

2040

2060

Short‑term

Covers the current business strategy and a lifecycle within which most leases will expire in GPT buildings.

Medium‑term

Period within which most buildings will require lifecycle works on major capital equipment.

Long‑term

Potential major redevelopments for most assets.

Very long‑term

For very long term business decisions such as major developments, GPT includes analysis of the most cost effective pathways to maintain resilience in a high emissions scenario.

Figure 1: Commercial Building Lifecycle Trigger Points.

In contrast, an asset built 15 to 20 years ago will be approaching mechanical plant replacement decisions. Our scenario-based climate risk assessment will focus on foreseeable risks to the operation of the new plant over the next 20 years, being the period for which it will be expected to service the building.

The physical climate risk assessment for a recently developed asset will focus principally on administrative and management controls to address current physical

risks and maximise opportunities that arise from GPT’s fast transition to a low carbon and nature positive economy.

Nature-related risks are mostly assessed over the short-term, in alignment with GPT’s nature commitments, current business strategy and average lease terms. More detail on GPT’s Nature Plan will be available on our website in April 2024.

Medium term nature-related risk assessments consider our broader business model and sustainability

commitments to nature restoration. We cross reference the clear trends in nature-related regulation and capacity constraints to understand the potential risks and dependencies that will become material to our business.

Long term nature-related risks have been excluded from the current assessment due to the inability to conduct nature-based scenario analysis with sufficient integrity, including modelling using natural capital accounts methods.

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Climate change emissions scenarios to model future impacts

GPT has adopted two climate change emissions scenarios to model the potential future impacts of climate change on our business and the resilience of our strategy. The two scenarios we have adopted align with the Representative Concentration Pathways (RCPs) recommended by the Intergovernmental Panel on Climate Change (IPCC), which describe different climate futures with varied volumes of greenhouse gas emissions and provide guidance regarding the likelihood of physical and transitional risks being realised. We have adopted a low emissions scenario aligned with RCP 2.6 and a high emissions scenario aligned with RCP 8.5.

These scenarios are used to test the resilience of the Group’s strategy and to develop strategies that address climate and nature-related risks and opportunities.

Through a series of Sustainability Reference Group workshops, we have determined the acute and chronic climate-related risks and opportunities for our business. We have considered the impact of climate change on GPT’s business strategy by adopting a high impact scenario, being the physical impacts of high emissions under RCP 8.5 and the transitional impacts of low emissions under RCP 2.6.

GPT acknowledges that uncertainty exists in the projections of both physical and transition climate risks. We have identified the highest concentration of uncertainty to be in emerging areas of technology, particularly EVs, and the most extreme weather events. Further details can be found in Appendix B.

In our investment and management decision-making, we consider:

• Potential physical impacts that could affect GPT’s assets or the regions they are located in and could damage or limit the asset’s capacity to operate, and

• Potential transitional impacts that could result from policy, regulatory, or technological change and shifts in market and stakeholder expectations.

In both cases, our final investment and management decisions include processes to mitigate negative climate-related impacts and maximise potential opportunities to support long term value creation. The case studies within our Case study library provide insight into risk mitigation and opportunity maximisation.

Additionally, in our investment and management decision-making, we consider nature-related risks, dependencies and impacts as well as alignment with our biodiversity and water policy goals.

For both climate and nature-related risks, we consider the potential impacts to our direct operations, upstream impacts to our supply chains and downstream impacts to our customers. These are all integrally linked to the ongoing prospects of our core business.

See page 16 of our 2023 annual report for further detail on our strategy.

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One One One Eagle Street, Brisbane

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Climate change on business strategy

GPT has considered the risks and opportunities of acute and chronic physical climate change as well as the transition risks in relation to stakeholder expectations, technology, our net zero plans and government policy and regulation. We continually assess our approach, using the governance forums we have established and input from external advisors, to ensure our strategy remains sound. See Appendix B for further detail of GPT’s climate-related risks and opportunities and GPT’s strategy response.

In considering our business prospects in the context of climate change, no material climate-related risks have been identified that we believe could have a negative impact on our current business model or strategy over the short to medium term time horizon.

We have drawn this conclusion based on key attributes of our core business in two climate scenarios:

1. Fast transition (RCP 2.6 climate scenario)

GPT has undertaken detailed reviews of the potential impacts on our core business strategy of a fast transition to a low carbon economy. Our business resilience conclusions in this scenario are supported by the following:

• Our assets are located in major Australian cities with diverse and growing economies, good infrastructure and stable governments

• Our assets are not overly dependent on carbon intensive industries which may no longer be viable in a fast transition scenario

• GPT’s Sustainability Team actively contributes to all decisions made by the GPT Investment Committee

• The majority of our operations are already carbon neutral certified through years of investment in efficiencies, shifting to renewable energy and an established offset plan for residual emissions, and

• We have invested in technology such as demand-side flexibility to reduce exposure to volatile energy markets as aging fossil-fuel energy generators are retired without clear pathways to provide alternative firm energy supplies.

We are leveraging our decarbonisation leadership to create opportunities that enhance our core business by:

• Creating strong business alignment with our customers and their own net zero journey. This alignment provides us with the ability to better service our customers’ needs, particularly given that we are often a large part of their Scope 3 emissions

• Generating energy savings. Energy is the second largest operational cost to our base-buildings. GPT’s efficient buildings and in-house Building Performance Team help to generate significant annual savings when compared with operational energy intensity from our baseline year of 2005

• Generating income and operational cost savings through investments such as GPT’s Smart Energy Hubs and our demand response Loadflex program, which also support the energy grid

• Increasing investor appeal and opportunities for growing funds under management

• Attracting, retaining and motivating staff who are aligned with our purpose, and

• Improving the terms and diversity of our debt through sustainable debt options.

2. Business-as-usual (RCP 8.5 climate scenario)

Whilst GPT’s climate strategy includes our Net Zero Plan which targets limiting global warming to 1.5 degrees Celsius, we understand that the current international emissions trajectories have a high possibility of resulting in an RCP 8.5 scenario of dangerous climate change and more than 4 degrees of warming. Our business resilience conclusions in this scenario are principally supported by:

• Physical climate modelling completed for all assets which indicates that less than 3% (by value) of assets are located in areas with a moderate Value at Risk (VaR) (VaR of between 0.2% and 1%) and no assets are located in areas with high VaR (VaR greater than 1%)

• Our ongoing ability to adequately insure all assets at a reasonable cost

• Our portfolio of high quality assets located in major capital cities and fast growing major regional economies which are less vulnerable to extreme climate change hazards due to regional climate risk mitigation and adaptation measures, and

• Internal processes requiring that all developments and lifecycle upgrades consider and respond to acute and chronic physical climate risk in design and investment decision-making.

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Nature impacts on business strategy

GPT regularly assesses risks, opportunities, impacts and dependencies caused by physical constraints within nature, stakeholder expectations around how the business interacts with nature, our nature-related goals and government policy and regulation in this area. Our strategy will continue to evolve to meet the changes in our operational environment with regard to nature.

To date, GPT has considered nature-related risks in the context of our direct operations and upstream supply chains, including materials, utilities and land. Impacts to our down-stream value chains (principally our tenants) have not yet been considered in detail.

GPT’s assessment of nature-related risks has identified two material risks, principally associated with developments, which could have a minor to moderate impact on our direct operations and/or our supply chain in the short term:

• Stormwater regulation: An increase in water regulation to manage the impacts of extreme rainfall and flooding are expected to result in:

• An increase in the cost of stormwater management and mitigation requirements for greenfield developments, driven by mandated measures to detain stormwater and reduce pollutants discharged into waterways. An expected increase in operational costs associated with levies for impermeable surfaces at our assets over time.

The impact of these regulatory changes will require consideration in the business case and final plans for development assets, and in managing stormwater at our operational assets.

• Biodiversity regulation: GPT’s strategic growth of its logistics portfolio has resulted in land acquisitions and developments in greenfield sites in Sydney, Melbourne and Brisbane. Despite being in designated growth corridors that have been rezoned for industrial development, some of these properties have risks associated with loss of biodiversity resulting in environmental offsetting costs and/or development delays.

In the medium term, we foresee a wider range of nature-related risks emerging that will require a response from GPT. Early identification and planning for these risks are being undertaken to minimise their potential impact.

See Appendix C for further detail on short to medium term nature-related risks and opportunities, and GPT’s strategic response.

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heat storm QLD
Flood Wind Townsville
1 logistics
Greater Brisbane
2 office / 14 logistics / 1 retail
NSW
Greater Newcastle
1 logistics / 1 retail
Greater Sydney
13 office / 24 logistics / 3 retail
SA
ACT
WA Adelaide
Canberra
Perth 5 logistics 1 office / 1 logistics
4 logistics
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VIC

Greater Melbourne 11 office / 21 logistics / 5 retail

Data as at 31 December 2023.

Figure 2: GPT’s investment portfolio assets.

Understanding climate risks at an asset level

The majority of assets in our portfolio are located in cities and urban areas, as shown in Figure 2, places identified as having a high capacity to adapt to climate change from a socio-economic perspective. Assets located in these areas are more likely to be resilient to the risk of becoming stranded or impacted by decreasing values.

In line with climate change adaptation guidance, GPT conducts thorough due diligence, including climate-related risk assessments, when making decisions on acquisitions and developments. For example, flood risk is scrutinised for all assets, and in the past has resulted in GPT not acquiring assets due to either the elevated risk of flooding, or actual historical flood events impacting a site. GPT also analyses changes over time of climate hazards, for example a 1 in 100 year flood zone may become a 1 in 20 year flood zone in coming decades.

GPT has a preference for assets located in major cities and urban areas. These urban and industrial areas may already have existing flood mitigation infrastructure, however GPT will still consider how flooding may directly and indirectly impact an asset.

Despite having a majority of assets in low transition risk areas such as cities and urban areas, acute and chronic physical risks of climate change still exist, such as extreme heat, severe storms and in some cases flooding. However, through considering climate related risks in the due diligence process, and adapting to inherent localised risks, we have greatly reduced our vulnerabilities.

Figure 2 identifies the locations of GPT’s assets and the main physical climate-related risks that they are exposed to. The table on page 25 provides a summary of the high impact physical risks to assets and GPT’s mitigation factors.

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Concentration of GPT’s climate‑change related risks

Listed in the following table are the regional areas where climate physical risks are concentrated, which portfolio is the most exposed and what actions have or are being implemented to reduce or eliminate our vulnerabilities.

Climate adaptation planning triggers

GPT’s climate adaptation planning process is integrally linked to our business and asset lifecycles to ensure that we make the right investments at the right time. Key decision-making points include:

• Review of climate risks and opportunities during acquisition due diligence to ensure that our investments are within our long term sustainability risk appetite

• Development planning incorporates long term climate modelling to ensure resilience to foreseeable climate impacts, and

• Major capital works and lifecycle upgrades consider the potential change in physical conditions and transition risks that need to be managed over the full lifecycle of that particular element of the asset.

Physical risks: acute vs. chronic risk

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See appendix B for more detail on the acute
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Acute risk: Shocks, event-driven risks such as increased severity of cyclones, floods and other extreme weather events.

Chronic risk: Stresses, longer-term shifts in climate patterns that may cause sea level rise, increased frequency of heatwaves and changes in rainfall patterns.

• See appendix B for more detail on the acute and chronic physical risks GPT assesses.

Physical	Concentrated		Adaptation or	Resulting
Risk	Risk Region	Portfolio	mitigation implemented	opportunities
River flooding	Brisbane CBD	Office	Brisbane River flood barrier	Continued operation with
			system installed at Riverside	minimal tenant disruptions in
			Centre and One One One	flood events e.g. the 2022 flood.
			Eagle Street.
River/creek flooding	Western Brisbane,	Logistics	Due diligence throughout	Increased likelihood of
	Western Sydney,		the acquisition process to	continued operations during
	Greater		specifically consider flood	times of heavy rain and flooding
	Melbourne and		impacts, including on	of local waterways.
	Adelaide		building design.
Severe storms	All regions	Office, Retail	In design and at life cycle	Continued operations during
		and Logistics	upgrade opportunities, our	times of severe storm activity.
			assets undertake climate
			adaptation planning, including
			upsizing hydraulics to account
			for increased severity of storms.
Tropical cyclones	Townsville	Logistics	Asset designed and built to wind	Would be expected to be
			speeds specific to the region.	operating following the
			Not located near the coast	passage of a tropical cyclone.
			which eliminates risk of storm
			surge and tidal inundation.
Increasing average	All regions	Office, Retail	Climate adaptation planning,	Creating conditions where
temperatures,		and Logistics	including passive cooling	customers and tenants remain
extreme hot days			techniques, installing better	comfortable during hot periods,
and heatwaves			plant technology and	while maintaining energy costs.
			implementing energy
			efficient procedures.

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Direct and indirect climate risk mitigation and adaptation efforts

In our efforts to decarbonise and increase resilience to impacts of climate change, GPT considers both direct and indirect mitigation and adaptation strategies that can be implemented now and in the future. Asset-level climate adaptation plans also address direct and indirect risks and opportunities across multiple time horizons, as well as today.

Direct mitigations cover our own business operations. For example, installing solar arrays on asset roofs to reduce emissions and save on energy costs addresses both the risks of a disorderly transition on energy prices and the need for more energy in a scenario with increasing temperatures.

Indirect mitigations include considering upstream impacts to our suppliers and downstream impacts to our customers and the communities that we serve. For example, how climate change may alter local population growth or business prospects in future years and how this would impact revenue for our assets.

Climate modelling

GPT procured physical climate modelling for all our assets from XDI (Cross Dependency Initiative) in 2022 and we have used this modelling to inform our climate risk vulnerability assessments and adaptation planning. The modelling provided by XDI uses the RCP 8.5 global warming scenario, and downscales climate change projections to an asset level so that we can use them to identify and treat hazards now and in the future. The high resolution modelling then allows us to take a ‘bottom up’ approach to climate adaptation planning and reducing vulnerabilities at an asset level.

The modelling for each asset shows how a potential hazard’s risk level changes over time, out to the year 2100. For key assets, XDI has provided large site analyses, which is a more detailed analysis of direct physical climate risk within an asset’s boundary, as well as the surrounding area, to capture any indirect risks that could impact the asset. The modelling is incorporated into our climate adaptation planning process. See Appendix B: Risk Analysis and Mitigations for more about our adaptation strategies for key transitional and physical risks.

As an example of how our scenario modelling and risk assessments aim to ensure the right investments are made at the right time, we can look at our approach to air-conditioning plants. If the plant needs replacement today, we focus on elements that contribute to and future proof for a fast transition. These include efficiency opportunities, changing to low greenhouse warming potential refrigerants, implementing controls that support demand-side flexibility and the potential for the replacement to contribute to the building electrification plan by operating in a heating mode during winter to eliminate gas boilers.

Alternatively, if an air-conditioning unit is modelled to require a specific sustainability upgrade by 2070 to meet the predicted heat loads from our climate scenario analysis, this upgrade will be implemented at the lifecycle replacement closest to when the need arises, rather than implementing expensive upgrades now. This way we ensure investments respond appropriately to business needs whilst minimising unnecessary expenditure.

Rouse Hill Town Centre, NSW

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Carbon price considerations

GPT’s core business is not highly exposed to international markets and our climate response has resulted in a low emissions profile for our business. As a result, there is currently only limited exposure to a price on carbon through schemes such as the European Emissions Trading Scheme which is already over AU$100 per tonne of carbon emissions (tCO2). However, there are some cost premiums associated with carbon emissions reduction in Australia, including mandatory renewable energy purchases and supply chain cost impacts through suppliers that fall under the national Safeguard Mechanism, as well as the voluntary action taken by GPT in order to deliver on our policy goals to limit warming to less than 2 degrees.

Retail electricity contracts in Australia require a mandatory 19% renewable energy through the purchase and retirement of renewable energy certificates. Over and above the mandatory requirement, GPT has committed to operate using 100% renewable electricity. Because the cost premium for renewable electricity in Australia has risen, GPT’s renewable energy certificate contract, signed in 2020 and in place until to 2030, has largely shielded the Group from price increases. When comparing our 100% renewable energy certificate contract to typical retail electricity contracts (modelled at current $50 per certificate rates), our 100% renewable contract is estimated to save approximately AU$2M over the course of the contract.

Carbon offset prices in Australia have also risen dramatically over the past few years with significant potential to continue rising. As GPT is not directly exposed to the Safeguard Mechanism, the cost of carbon offsets is largely limited to the cost of materials from upstream suppliers who are exposed to the Mechanism or international jurisdictions with a price on carbon, as well our voluntary action, such as carbon offsetting to deliver embodied carbon neutral developments or to compensate for residual emissions in our operations.

Our offset strategy results in an effective carbon price of AU$30/t out to 2027. Beyond 2027, our strategy is to continue preferencing direct investment in Australian reforestation projects and effectively manage our carbon offsetting costs. In 2023, the total cost of offsets at GPT to deliver on our net zero strategies for corporate operations, building operations and upfront embodied carbon neutrality was $600,000.

See our sustainability reporting website for further information on GPT’s offset strategy.

Climate impacts on valuations and financial reporting

Our review processes and response to climate-related risks ensure that climate-related financial impacts on our assets are embedded in forward-looking capital and operational savings and costs. These savings and costs are provided to independent valuers for their consideration in conducting asset valuations, with GPT’s standard valuation instruction letter which includes a requirement for the valuer to consider the effects of climate change. The costs and savings associated with the climate response activities outlined in this Statement and our case studies are embedded within GPT’s financial statements and asset valuations and should not be considered additional financial disclosure.

While GPT does track costs that are flagged to deliver climate-related benefits, currently we do not do this in isolation, in recognition of the fact that this expenditure will also deliver other benefits (e.g., greater durability, improved quality, operational reliability and reduced safety risk). By taking this approach, GPT avoids the risk of overstating the contribution of climate related issues in expenditure decision-making. The case studies in our

Case study library provide project-by-project insight into the impact of climate-related decisions, but must be read in the context of there being many other considerations running in parallel.

We are currently working on enhancing our systems to allow more comprehensive identification and reporting of climate and nature-related investments and operational expenses. Together with independent assurance, these improvements will further enhance the transparency of GPT’s sustainability reporting.

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Understanding nature risks, at an asset level

Of GPT’s current assets, 55 assets are within areas of biodiversity significance (i.e., ecological communities likely to occur on or immediately adjacent to the asset). These assets are prioritised for greenspace biodiversity assessments to inform management of these assets. See Figure 3 for an example of this analysis.

GPT has committed to avoiding, mitigating and offsetting biodiversity impacts from new developments and operating assets by aligning our practices to the Green Building Council of Australia’s Building with Nature Principles and Targets. Importantly, our due diligence and risk assessment approach ensures biodiversity dependencies and risks are locally contextualised at the asset or operational level, with consideration given to adjacent areas, and upstream and downstream activities.

New developments pursue biodiversity objectives by responsible sourcing of materials, including timber, incorporating environmental objectives and goals of regional environmental planning schemes, and through supporting GPT’s carbon and water neutrality goals.

GPT’s operating assets pursue biodiversity objectives through responsible sourcing and management of materials, ongoing infrastructure and operating system efficiencies, improving storm water management, supporting broader efforts to conserve natural environments, and raising awareness of biodiversity risks and opportunities through supply chains, tenancies, and industry groups.

Where biodiversity impacts are unavoidable for new developments and operating assets, we strategise options for going beyond minimum regulatory environmental standards with relevant stakeholders.

biodiversity and delivering ecosystem services for water. With most building operations and future developments now delivering on our carbon neutral goal, we are creating an additional legacy of positive outcomes for nature.

GPT also ensures that our decarbonisation and investments in nature deliver co-benefits. For example, a key aspect of GPT’s carbon offsets is Australian biodiverse forest restoration which removes carbon while improving

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Figure B
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GPT has identified and assessed biodiversity/land use values related to our direct footprint via desktop analysis, including identification of our interface with ecological communities/habitat and species of national and state significance (Figure a-C). specifically, we have assessed:

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• ecological communities of national and state environmental significance within asset boundary plus within 0.5km

• species of national and state environmental significance within asset boundary plus within 0.5km

• extant ecological communities within asset boundary, and

• Preclearance ecological communities within asset boundary.

Where possible, biodiversity and land-use databases have been verified via on-ground assessment by a qualified ecologist. Through this approach, we can account for a very significant portfolio wide nature interface.

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Figure C
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Figure 3: Example of GPT’s process for locating biodiversity values of significance.

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Concentration of GPT’s nature related risks

Listed in the below table are the regional areas where nature (excluding climate change-related) physical risks are concentrated, which portfolio is the most exposed and what actions have or are being implemented to reduce or eliminate our vulnerabilities.

Risk type	Risk description Portfolio and risk region Adaptation or mitigation implemented Resulting opportunities
Physical risk:	Bushfire, flood, cyclone, and severe drought causing supply chain constraints and support service (transport, storage and production facility) restrictions. Office, Retail and Logistics – All regions Due diligence throughout the acquisition process considers supply chain sensitivity to bushfire, flood and cyclone impacts. Creation of long term contracts and continued support to supply chain and community partners. Reduced exposure to operational disruption and goods and services market volatility.
Transition risk: Policy and legal	Increasing compliance conditions and costs towards meeting strengthened flora and fauna regulations. Logistics – Western Melbourne, Western Brisbane Due diligence throughout the acquisition process considers flora and fauna impacts, and exposure to flora and fauna regulations. Asset-level biodiversity assessment and management plans. Reduced exposure to operational disruption and flora and fauna regulatory conditions and cost.
	Increasing compliance conditions and costs towards meeting strengthened water regulations. Logistics – All regions Due diligence throughout the acquisition process considers exposure to water regulations. Asset-level water master plans. Reduced exposure to operational disruption and water regulatory conditions and cost.
Transition risk: Market/reputation	Increasing operational and capital expenditure driven by supply chain constraints, services restrictions, and changes in market demand (e.g., increased demand for renewable energy, solar panels, carbon offsets, green concrete, green steel, and FSC timber). Office, Retail and Logistics – All regions Creation of long term contracts and continued support to supply chain and community partners. Electrification strategy. Reduced exposure to goods and services market volatility. Increased market share and interest from ESG responsible tenants and investors.
Transition risk: Technology	Reduced footfall and tenancy driven from improved work from home capacity/conditions. Office – All regions GPT DesignSuites (6-star Green Star fit out). Increased market share and interest from ESG responsible tenants.

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GPT’s climate and nature specific strategies

Over and above our core business model and strategy, GPT has strategies that specifically respond to climate and nature-related challenges while also supporting our core business brand and purpose.

GPT’s plan for transitioning to a low carbon economy and a nature positive future:

• Addresses the scientific imperative to shift to a net zero economy and targets an outcome that halts and reverses biodiversity loss

• Contributes to an orderly and just transition by supporting our stakeholders and communities to transition to a climate-resilient and nature positive economy

• Aligns with investor and customer expectations around decarbonisation and nature positive outcomes, and

• Improves the overall sustainability of the GPT business.

GPT’s fast decarbonisation climate strategy

• Increasing internal capabilities to identify and manage transition risks, including reducing exposure to risks arising from a disorderly and expensive renewable energy transition

GPT has adopted a fast decarbonisation strategy, meaning we will achieve net zero earlier than the 2050 target of the Paris Agreement. Beyond doing the right thing and directing our own activities towards the goal of limiting global warming to well below 2 degrees, our decision to act early has the potential to enhance our core business strategy by:

• Improving our customer offering and reputation, resulting in increased loyalty and long term value creation, and

• Meeting and/or exceeding investor expectations

• Enabling green financing.

Chart 2: GPT’s Cumulative Emissions Reduction and Avoided Energy[1]

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$350 8,000,000
$300 7,000,000
6,000,000
$250
5,000,000
$200
4,000,000
$150
3,000,000
$100
2,000,000
$50 1,000,000
$0 0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Cumulative energy savings from efficiency ($) Cumulative energy savings (GJ) Cumulative Emissions reductions (tCO2e)
Avoided Cost ($m)
2e)Emissions reduction (tCOEnergy Savings (GJ)/
----- End of picture text -----

1. Figures are against a 2005 baseline and have been calculated using energy and emissions data available on the GPT Sustainability Data Dashboard.

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Delivering our Net Zero Plan with carbon neutral milestones

Carbon neutral certification milestones are key to GPT’s Net Zero Plan. We have identified and acted on the three key material activities that result in emissions under our control:

• Corporate operations

• Building operations, and

• Upfront embodied carbon from developments.

GPT’s corporate operations have been carbon neutral certified by the Australian Government Climate Active program since 2011.

GPT commenced a program of certifying its base building operations Climate Active carbon neutral in 2019, with a target of certifying all of our operationally controlled buildings held for investment purposes by the end of 2024. At the end of 2023, 28 of 32 of these buildings were Climate Active Carbon Neutral Certified with the remaining four buildings operating carbon neutrally and on track for certification by the end of 2024. We are also working with our co-owners to certify assets under their operational control by 2030.

The third material source of emissions that GPT has principal decision-making authority over, is upfront embodied carbon emissions from our developments. In 2022, GPT delivered Australia’s first Climate Active carbon neutral certified development and our target is to deliver all future GPT developments as upfront embodied carbon neutral. For a property company, upfront embodied carbon from development activity is currently the most material source of scope 3 emissions.

Over the past five years, GPT has led the property industry in operating carbon neutral buildings and was instrumental in developing an independent certification pathway to ensure alignment of National Australian Built Environment Rating System (NABERS) and Climate Active with the Greenhouse Gas Protocol for base building operations. This was followed by being the first to deliver upfront embodied carbon neutrality working with the Green Building Council of Australia (GBCA) and Climate Active. With processes for carbon neutral operations now embedded and having commenced our carbon neutral development journey, GPT’s carbon strategy is increasingly focused on supporting our supply chain and tenants reduce their emissions.

We remain on track to deliver emissions reductions well ahead of Australia’s Paris Agreement target. Our strategy fosters resilience, not only against future physical climate-related risk, but also in establishing a high level of preparedness for a transition to a low carbon economy. The insights from our decarbonisation journey will stand us in good stead for our aspirational nature-related targets.

• See our net Zero Pathway on page 09 for GPT’s emissions reductions.

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Independent net zero validation

Credible independent certification of net zero achievements provides greater certainty and transparency of an organisation’s net zero journey rather than self-validation of results. In addition, independent validation ensures that minimum validation requirements are well understood, actually delivered and are set with reference to reputable, external standards. GPT seeks independent certification of the net zero performance of our buildings through the Australian Government’s Climate Active Carbon Neutral Certification program.

EXPLORE

Our assets utilise either the NABERS pathway or Green Buildings Council of Australia (GBCA) Green Star – Performance pathway to achieve the Climate Active Carbon Neutral Standard for Buildings certification. Both methods utilise established external ratings as part of the certification process and require demonstrated carbon neutral operations or upfront embodied carbon outcomes before the certification is issued.

Rouse Hill Town Centre, NSW

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WorldGBC Net Zero Buildings Commitment Leadership

The GPT Group has been a signatory to the Net Zero Carbon Buildings Commitment (the Commitment) with the World Green Building Council (WorldGBC) since 2018, and in October 2022 we re-signed the updated Commitment, committing to make all GPT controlled developments upfront embodied carbon neutral from 2023 onwards. To read more about the commitment, visit worldgbc.org/thecommitment.

“Net Zero Carbon Buildings Commitment signatory and GBCA member, The GPT Group, are showcasing industry leadership in tackling emissions from the built environment. They are going further and faster than mainstream actors, taking accelerated action in line with the requirements of the Commitment, to decarbonise their asset portfolio. They are proving that the built environment can act as a critical climate solution, with achievements such as delivering the first Australian upfront embodied carbon neutral certification for a Melbourne logistics development. This leadership will undoubtedly encourage more to follow as we work together to deliver a net zero carbon, healthy, equitable and resilient built environment for all.”

Cristina Gamboa CEO, WorldGBC.

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COMMIT

Chirnside Park, VIC, solar PV array

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GPT’s Nature strategy

We acknowledge that through developing and managing commercial assets, our business displaces natural habitat and disrupts provisioning, regulating, and supporting ecosystem services upon which our business, society and nature depends (Figure 3 on page 28).

We also recognise that our ability to drive positive impact for people, place and planet is dependent upon the availability of resilient ecosystems and a resilient society.

In accord with the European Commission Guidelines on Non-financial Reporting: Supplement on Reporting Climate Related Information (European Commission, 2019), we evaluate nature-impacts from a ‘double-materiality’ lens which considers the interrelated impacts of nature on our financial performance and the business’s material impacts on nature.

This includes upstream and downstream activities within areas of water stress or climate stress. It also includes activities within areas with a dependency or impact on ecological communities or species of high biodiversity significance, including areas with known national and state legislated ecological communities and species, and areas with International Union for Conservation of Nature (IUCN) I-IV protected status, and asset greenfield development.

To mitigate material impacts on nature, and to create value over the long term, we are committed to delivering clear and actionable milestones towards addressing nature-related risk, and delivering our nature objectives.

Where practical, we endeavour to secure 2020 nature baseline data in accord with our nature next focus. In some instances, however, particularly for new metrics with relatively low historical data availability, nature impacts are measured from a baseline year of 2023.

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GPT and Greenfleet’s Restoring Country for Climate Project, Noosa, QLD

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GPT’s nature‑specific strategies

GPT has committed to achieving various nature outcomes by 2030. We will initially target biodiversity protection and restoration exceeding the cumulative footprint of the total area of our directly owned and managed assets by 2030. We will also work with our suppliers and tenants to establish nature positive pathways. Nature positive pathways are an emerging area and GPT will transparently disclose our progress and learnings as we increase our maturity in this space.

• See the nature roadmap on page 11 for further information.

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Key nature‑related considerations

To deliver our nature goals, we are committed to extending the application of the Mitigation Hierarchy, an international best practice tool traditionally focused on avoiding, mitigating and offsetting biodiversity impacts, by:

• 1) Broadening impact assessment towards nature-based impacts (not solely biodiversity)

• 2) Including activities that impact nature beyond the individual project scale, including direct and indirect historical and systemic drivers of nature-loss, and

• 3) Targeting nature net gain requirements across entire value chains and financial portfolios.

In undertaking this work, we will ensure:

• 1) ‘Natural capital accounts’ adhere to strict data integrity and quality assurance standards, including reliability and source

• 2) ‘Natural capital’ data is secured at the finest resolution and scale practicable, and

• 3) Residual compensatory actions and offsets strictly adhere to exchange rules that are respectful of the non-fungible quality of various natural capital asset classes (e.g. non-tradable quality of ecological communities and species).

We will seek to align our nature commitments with international climate and biodiversity commitments under the Paris Agreement, and the Kunming-Montreal Global Biodiversity Framework.

Natural capital dependency register

A natural capital dependency is a business’s positive or negative reliance on natural capital. As GPT is committed to identifying impact and dependency pathways, we have started developing a natural capital dependency register.

GPT’s natural capital dependency register lists the natural capital we depend upon, either directly for our activities and operations or indirectly through our value chain or financing activities. The dependency register also depicts results relevant to the dependency. See our website for a list of our natural capital dependencies.

Dependencies are usually thought of as ‘positive’ in the sense that a business depends or relies on the presence of natural resources, ecosystem services or sets of environmental conditions that are beneficial for the business. However, an organisation may equally depend on the absence or relative infrequency of natural resources, ecosystem dis-services or environmental conditions that are harmful. Both positive and negative dependencies will be recorded in the GPT natural capital dependency register.

Charlestown Square, NSW

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Natural capital impact register

A natural capital impact register lists the natural capital that a business affects, either directly through its activities and operations or indirectly through its value chain or financing activities. Like the dependency register, GPT’s impact register depicts results from relevant metrics and targets related to the dependency. See our website for our natural capital impact register.

The natural capital dependency and natural capital impact registers’ combined will assist GPT in understanding and identifying relevant ecosystem services that we depend upon or impact. Understanding our relationship with nature identifies the potential risks and opportunities for our business which ultimately results in a well informed and effective strategy.

For detailed information on how GPT addresses all current and potential climate and nature-related risks and opportunities, see Appendix B and Appendix C.

GPT’s application of the TNFD LEAP Framework

TNFD has developed an integrated approach for the identification and assessment of nature-related issues, called the LEAP approach.

GPT has adopted TNFD’s LEAP Framework approach in order to conduct the due diligence necessary to inform our nature-related risk, dependencies, impacts and opportunities and to assist with developing our disclosure statements aligned with the TNFD recommendations.

There are four phases of the LEAP approach:

1. Locate your interface with nature

2. Evaluate your dependencies and impacts on nature

3. Assess your nature-related risks and opportunities, and

4. Prepare to respond to nature-related risks and opportunities and to report on your material nature-related issues.

5. Geographic information system mapping services to assess assets that are located within water-sensitive environments, add to the amount of green space and impervious surfaces and roof surfaces to inform potential rainwater capture

6. Location based assessments of our dependencies and impacts on nature, including location based biodiversity assessment of 16 operating shopping centres, acquisitions and developments, and

7. Assessing and establishing nature-related metrics and targets.

The development of natural capital accounts and understanding where our major impacts and dependencies lie, will enable GPT to focus efforts on assets or risks of most significance.

In order to understand our impact and dependencies on nature, GPT has commenced:

• Reviewing our procurement policies and our approach to the use of chemicals to ensure alignment with our Biodiversity, Water and Materials and Recovery Policy

• A stormwater pilot project to improve resilience to drought and flood and other impacts of climate change. See our Stormwater Pilot case study in our Case study library

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Risk Management

“GPT’s climate-related risks are assessed and managed in accordance with our enterprisewide risk management Framework to ensure the ongoing resilience of GPT’s business.” Jacqui O’Dea, Chief Risk Officer

GPT’s Key risk dashboard which is reviewed every six months by the Board sustainability and risk Committee and quarterly by the leadership Team. see our

Sustainability Reporting website for more detail on how climate and nature-related risks are prioritised.

in 2023, GPT reviewed all of our climate risks and developed our first nature risk register.

Climate and nature-related risks and their potential impacts are assessed using GPT’s risk Consequence and likelihood matrix, which considers strategic, financial, operational, compliance and environmental impacts, among others. material risks are then reviewed by GPT’s sustainability and risk steering Committee. residual risk ratings are established and mitigation plans are developed.

effective risk management is fundamental to GPT’s ability to achieve our strategic and operational objectives.

By understanding and effectively managing risk, GPT can create and protect enterprise value and provide greater certainty and confidence for investors, employees, customers, and the communities in which we operate.

in applying our enterprise-wide risk management Framework, GPT’s risk Team can monitor risk management sustainability risk metrics (including climate risk) are processes and assist in the identification, assessment, included in GPT’s risk appetite statement for existing treatment and management of risks. The risk Team portfolios and new asset acquisitions. nature-related risk supports the leadership Team, the GPT Board, the metrics and appetite will be developed over coming years. GPT Funds management Board, and their respective Through effective management of climate-related risk, committees in ensuring that risk is managed GPT limits the impact of transitional and physical hazards appropriately. Climate change risk is included on of climate change on our business activities and

sustainability risk metrics (including climate risk) are included in GPT’s risk appetite statement for existing portfolios and new asset acquisitions. nature-related risk metrics and appetite will be developed over coming years.

Through effective management of climate-related risk, GPT limits the impact of transitional and physical hazards

increases resilience to acute or chronic shifts in climate patterns and resulting market changes. acute risks to GPT may arise from event-driven shocks, such as increased severity of extreme weather events, including thunderstorms, cyclones and floods, extreme hot days, or blackouts and load shedding. Chronic risks to GPT may arise from stresses, such as longer term shifts in climate patterns (e.g. sustained higher temperatures) that may cause sea levels to rise, more frequent heat waves, or increasing energy costs and supply constraints with a shift to renewables.

GPT applies a ‘double materiality’ lens to climate and nature risk assessment, considering both the potential financial impacts on the business of climate change and nature degradation, as well as the impacts of GPT’s business activities on the environment and society. in summary, we consider the impact of climate and nature on the business, and the impact of the business on climate and nature.

see our Sustainability Report website for more detail on our materiality assessment.

FOCUS

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Integrated approach to climate change and nature risk management

GPT considers both transitional and physical risks as part of our integrated approach, including in relation to asset acquisitions and divestments, existing asset lifecycle upgrades, and new developments. Transition risks may directly or indirectly impact GPT’s business resilience and tend to manifest in the short to medium term, while physical risks may extend into the long and very long term.

GPT’s cross-functional Sustainability Reference Group met three times in 2023 to identify and assess the existing climate-related risks and opportunities for each of the climate scenarios adopted by GPT, and to discuss and capture any new climate risks and opportunities and the newly released framework of TNFD. During the year, we engaged KPMG to facilitate our first nature-related workshop with the Sustainability Reference Group to build the knowledge of our people around TNFD and to identify nature-related risks and opportunities.

KPMG presented to the Board about the material risks, impacts and dependencies gained from the first Sustainability Reference Group workshop focused on climate, water, biodiversity, and resource circularity.

In this workshop, the Reference Group assessed climate and nature-related risks and their potential impacts using GPT’s RMF which considers strategic, financial, operational, reputational, compliance and environmental impacts, among others.

Material climate and nature-related risks are reviewed by GPT’s Sustainability and Risk Steering Committee. These risks and opportunities are recorded in a Climate Risk and Opportunity Register, and a Nature Risk and Opportunity Register, in which related stakeholders assess the risks and opportunities, and treatment plans to mitigate or manage the risks, or optimise the opportunities. Residual risk ratings are then established and mitigation plans are developed.

Detail on GPT’s transitional and physical risks and how we are mitigating them can be found in Appendix B and C.

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Climate risk metrics are included in our Risk Appetite Statement for existing portfolios and new asset acquisitions. These metrics require GPT to identify those assets which may be vulnerable to a high risk of climate change impacts in the long to very long term. Alignment with metrics is reviewed by GPT’s Leadership Team (LT) on a quarterly basis, and the LT and Sustainability and Risk Committee (SRC) on a six-monthly basis. GPT’s risk appetite, including in relation to all aspects of sustainability, is required to be considered in all decisions

made by the GPT Investment Committee, meaning climate change impacts are part of every investment decision.

Nature-based risks and impacts are also considered in our operations and investment decision-making in consultation with the Sustainability Team and having reference to the policies such as our Biodiversity and Water Policies. Work is underway to refine nature-based risk metrics and registers for future inclusion in GPT’s Risk Appetite Statement.

Our climate and nature-based risks assessments consider not only our direct operations, but how upstream supply chain and downstream customer impacts can flow on to our business risk.

In accordance with Australian Accounting Standard Board Practice Statement 2, GPT considers and discloses information on climate and nature-related risks that are judged to potentially have a material impact as well as risks that could reasonably be expected to have a material impact. See Appendix B and C: Risk Analysis and Mitigations and pages 23-24 of our strategy.

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Charlestown Square, NSW

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Climate Risk Reviews and Adaptation Planning at GPT

As a result of climate change, GPT’s assets will be increasingly exposed to acute climate events such as severe weather and bushfire, and chronic, prolonged climate-driven shifts such as water scarcity, higher average temperatures and rising sea levels.

In 2023, GPT’s Climate Risk Analyst conducted a comprehensive physical climate hazard vulnerability assessment for all GPT’s office, retail and logistics assets. This assessment used RCP 8.5 climate modelling, procured from XDI over multiple time horizons. This assessment is used to guide risk appetite metrics for GPT’s balance sheet and funds, as well as for prioritisation of asset-level climate adaptation plans which in turn are used as a feedback loop into updates for the vulnerability assessment.

GPT’s response and commitment to identify, assess and manage transition and physical climate-related risk and opportunities is both at a portfolio level and asset level. GPT undertakes asset level climate risk reviews and adaptation planning using climate scenario modelling sourced from XDI (see details on our physical climate modelling on page 26).

Transition climate risk

Transition risks are more likely to have greater impact at a portfolio level. However, if they pose a risk or opportunity at an asset level, they will be assessed and treated, alongside identified physical risks, in climate adaptation workshops.

Physical climate risk

For acute and chronic physical climate risk analysis we use modelling based on the high emissions RCP 8.5 scenario. GPT also utilises knowledge of an asset’s local weather and current climate, which is vital in reducing the asset’s vulnerability to potential hazards. In order to identify and assess physical climate hazards, GPT utilises climate modelling for every asset out to 2100.

Climate adaptation planning workshops also include discussion of opportunities arising as a result of transition. For example the opportunity to attract capital through our sustainability performance and initiatives.

Transition risks of climate change are listed below.

GPT’s climate adaptation planning processes are delivered in alignment with ISO 14090, 14091, and AS 5334-2013. We also consider other guidelines such as Green Star Buildings in our methodology for climate adaptation planning. For our key assets, we not only look within the boundaries of our properties, but model future conditions for the surrounding areas, as broad as a 6km radius to give us a wider view of potential physical hazards.

Transition risks include:

Policy and regulatory change

Changes to market expectation, economic disruption and impacts to reputation

Physical climate hazards include:

Rising average temperatures

Increasing number of days per year exceeding critical heat thresholds

Increasing frequency and duration of heatwaves

Riverine and flash flooding

Tidal inundation from rising sea levels

Drought and water scarcity

Severe weather, including convective thunderstorms

Increasing fire weather intensity

Changes in humidity

Extreme winds

Soil movement

Technology

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Climate risk management processes

Based on GPT’s existing Risk Assessment Framework, a Climate Hazards and Consequences Matrix has been created specifically to assess climate risks at an asset level. The Matrix considers operational expenditure, capital expenditure and other consequences that could impact the viability of the asset. GPT categorises the potential consequences as either:

1. Direct – The impact of the hazards directly on GPT’s physical assets or business operations, or

2. Indirect – The impact of the hazards on the surrounding community, infrastructure and local economy in which GPT’s assets are located and upon which our success depends. This is in line with GPT’s commitment to a just transition to prevent stranded assets, stranded workers or stranded communities. GPT contributes to the just transition by maintaining places of refuge in severe weather events, considering the impact of individual climate hazards and a changing economy on surrounding communities, and investing in new technologies that create jobs in areas such as renewable energy and battery storage.

In GPT’s climate adaption workshops, the Matrix informs how material the risks and opportunities are to the asset, and consequently guides the risk level and treatment. The workshops are attended by GPT’s Head of Sustainability, Climate Risk Analyst and relevant portfolio business units such as development and management teams, external consultants, project managers, engineers and other critical stakeholders.

Climate-related hazards are considered quantitatively using operational expenditure, capital expenditure and other consequence thresholds relative to each asset’s net operating income or fair value. Risk levels, impacts and treatments are recorded in an asset Climate Risk Register that is reviewed on a regular basis as part of the risk management process.

GPT continues to refine the process of climate adaptation planning we have built over the previous two years and remains focused on identifying material risk. Climate adaptation planning at GPT is a perpetual process, and will adapt to the changing climate, just like our assets.

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One One One Eagle Street, Brisbane

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Metrics and Targets

GPT is committed to reducing our environmental impact. We aspire to be an overall positive contributor to environmental sustainability by taking a leadership role in reducing carbon emissions across our operations and shifting towards positive outcomes for nature.

We are progressing well with our Net Zero Plan, towards our milestones of Climate Active Carbon Neutral (for Buildings) Certification of all GPT operationally controlled assets which we have an ownership interest in by the end of 2024 and the delivery of upfront embodied carbon neutral new developments.

Our nature roadmap is building momentum with firmer targets and a wider range of metrics are being established and disclosed.

Beyond acting on matters within our direct control, we encourage our stakeholders to respond to climate change, reduce waste, manage water sustainably, and protect and enhance biodiversity. We support our tenants with their own decarbonisation and nature-related goals and continue to drive suppliers to provide products and services with lower associated emissions.

Measuring our buildings’ emissions

GPT monitors its direct climate change impacts and reports on emissions, energy, water, and waste for each property annually. Our sustainability data dashboard includes a portfolio-level summary for all key metrics – electricity, water, fuels, materials, recycling and emissions – since 2005.

GPT obtains external assurance over sustainability performance data, including the following climate metrics:

• Energy consumption and energy production in base building and tenancies (gigajoules)

• Scope 1 greenhouse gas (GHG) emissions in tonnes of carbon dioxide equivalent (t CO2-e)

• Scope 2 greenhouse gas (GHG) emissions in tonnes of carbon dioxide equivalent (t CO2-e) disclosing both a location-based and market-based result

• Selected operational Scope 3 emissions

• Water consumption (kilolitres), and

• Waste inputs: total waste generated (tonnes) and materials recycled (tonnes) using an outcomes-based measurement method by monitoring and reporting recycling by grade (A grade, B grade, C grade).

The greenhouse gas emission calculations are aligned with and assured against the Greenhouse Gas Protocols with the disclosures for both location-based and market-based methods reported in GPT’s sustainability data dashboard.

GPT also focuses on Scope 3 emissions, which are those material impacts within our operational control, in accordance with the Australian Government Climate Active approach. GPT’s material Scope 3 emissions are derived from waste, gas, and water, with transmission losses from electricity eliminated by procuring 100 per cent renewable electricity.

In areas outside of our control, GPT aims to influence outcomes with a particular focus on supporting our tenants to reduce their emissions.

As a part of our Net Zero Plan, GPT is committed to actively engaging with our stakeholders to reduce greenhouse gas emissions and energy use. We seek to work with tenants to provide them with pathways to minimise their emissions through initiatives such as lighting efficiency upgrades and the installation of solar arrays.

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Measuring our organisation’s emissions

GPT’s corporate activities and business premises, including our travel and consumables, have been certified as carbon neutral by the Climate Active since 2011. This certification covers material Scope 1, 2 and 3 emissions. GPT aims to reduce emissions through initiatives such as energy efficiency improvements at our offices and using technology to reduce the frequency of business-related flights. Emissions that cannot be avoided in these areas are offset to ensure GPT’s net emissions from our operations are zero.

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Darling Park

Defining Emissions

Scope 1 emissions are greenhouse gas emissions released to the atmosphere as a direct result of an activity, or series of activities, at a facility level. They are sometimes referred to as direct emissions.

Scope 2 emissions are released to the atmosphere from the indirect consumption of an energy commodity. For example, ‘indirect emissions’ come from the use of electricity produced by the burning of coal in another facility.

Scope 3 emissions are indirect emissions, other than Scope 2 emissions, that are generated in the wider economy. GPT includes only those Scope 3 emissions within our control in our emissions metrics and targets. We additionally include activity delivery metrics in our disclosures that demonstrate impacts on Scope 3 emissions within our influence such as the number of solar arrays offered to tenants to assist them in reducing their emissions.

Targets

In accordance with ISO:14001 Environmental Management Systems, our climate and nature-related targets focus on areas within our operational control. Our approach first seeks to eliminate greenhouse gas emissions and nature impacts within our control. Offsets are only used for emissions and nature impacts that currently cannot be feasibly eliminated. We further enhance environmental outcomes by working in our areas of influence, such as supporting our supply chain and tenants for which we set targets based on delivery of supporting activities.

GPT sets annual asset-level operational targets for energy, water and waste, driven by optimisation programs and capital upgrades. Medium to long term operational targets are also set at a portfolio level to inform energy procurement and offsets. Targets are also set for broader performance benchmarks that include multiple environmental aspects such as Greenstar ratings.

Performance against these targets is monitored through our management reporting systems to assess our progress towards our policy goals.

Environmental metrics, including energy intensity, water intensity, recycling rates and emissions intensity, are key performance indicators (KPIs) on The GPT Group Scorecard, which is outlined in the Remuneration Report within the 2023 annual report, and linked to remuneration outcomes for senior managers. Asset-specific KPIs are incorporated into the performance targets of property general managers, centre managers and operations managers.

Nature-based metrics and targets

Acknowledging that climate is a subset of the overall natural world, this year GPT is expanding its suite of disclosed nature metrics and targets. Our targets and metrics include performance indicators for goals that improve our impacts on the environment as well as indicators that specifically improve our resilience to climate and nature-related risks and opportunities.

Full detail of GPT’s metrics and targets can be found in the GPT sustainability data dashboard with numerous case studies in our Case study library.

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Appendix A: Emissions Scenarios

GPT has adopted two global warming scenarios to model the potential future impacts of climate change on our business and the resilience of our strategy. These scenarios are aligned with the Representative Concentration Pathways (RCPs), which provide guidance on the likelihood of physical and transitional risks due to climate change, consistent with the recommendations of the IPCC Sixth Assessment Report and the Climate Measurement Standards Initiative (CMSI).

See page 25 for our definition of acute and chronic risk.

Initiative (CMSI). See page 25 for our definition of acute and chronic risk.
Low emissions scenario	High emissions scenario
ALIGNED WITH RCP 2.6	ALIGNED WITH RCP 8.5
Broadly aligned with Paris Agreement targets to limit	Very likely that global temperatures rise 1.3°C to 1.9°C
global temperature increases to below 2°C.	by 2040 and between 3.3°C to 5.7°C between 2081-2100.
Very likely that global temperatures rise 1.2°C to 1.8°C
by 2040, and between 1.3°C to 2.4°C between 2081-2100.
Most ambitious global emissions mitigation scenario.	This scenario assumes there is no additional effort to
In this scenario, transition impacts are the highest, with	constrain emissions, marked by significantly increased
associated aggressive policy measures needed to	physical risks, resulting in dangerous climate change.
reduce emissions quickly.	Physical risks will be greatest and will accelerate in the
	medium, long and very long term.

• Extreme hot days, heatwaves and rising average temperatures

• • Extreme weather events including floods, severe storms and cyclones

• Policy and regulatory change

• Changes to market expectations, economic disruption and impacts to reputation, and

• Technology change.

• Tidal inundation from rising sea levels

• Bushfire, and

• Drought and water scarcity.

Potential future socioeconomic impact is mostly aligned with the Shared Socioeconomic Pathways (SSPs) SSP1 Sustainability scenario, in which a gradual but pervasive shift towards sustainable development occurs that respects environmental boundaries. Consumption is orientated toward low material growth and lower resource and energy intensity.

Potential future socioeconomic impact is closest to the SSP5 Fossil-Fueled Development scenario, in which the world emphasises competitive markets and technological progress which leads to rapid economic growth with energy intensive lifestyles and a strong reliance on fossil fuel energy powering this growth, at least initially.

Chart 3: Potential future temperature increases under these scenarios

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5
5.7
4
3.3
3
2 2.4
1.8 1.9
1.3 1.3
1.2
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By 2040 2081-2100
Degrees Celcius
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Low emissions scenario (RCP 2.6) High emissions scenario (RCP 8.5)

Sources: IPCC, 2021: Climate Change 2021: The Physical Science Basis. Contribution of Working Group I to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change, Cambridge University Press. In Press.

Earth Systems and Climate Change Hub. 2020. Scenario analysis of climate-related physical risk for buildings and infrastructure: climate science guidance. ESCC Hub Report No.21.

Global Environmental Change 42 (2017), The Shared Socioeconomic Pathways and their energy, land use, and greenhouse gas emissions implications: An overview, Elsevier Ltd. Earth Systems and Climate Change Hub. 2020. Scenario analysis of climate-related physical risk for buildings and infrastructure: climate science guidance. ESCC Hub Report No.21. Global Environmental Change 42 (2017), The Shared Socioeconomic Pathways and their energy, land use, and greenhouse gas emissions implications: An overview, Elsevier Ltd.

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Appendix B: Risk Analysis and Mitigations

Transition risks

GPT has identified several transition risks that may affect our business activities. These risks are likely to emerge in the low emissions scenario and are expected to manifest in the short to medium term.

In the low emissions scenario, regulatory changes, market expectations and technology change will drive the transition to a low carbon economy to avoid dangerous climate change. These changes could have a destabilising effect on the financial system, for example rising risk premiums and falling asset prices in the relatively short term. Transformations in economic, social, technological and political decisions and actions remain necessary to mitigate transitional risks and adapt to sustainable development. These changes are most relevant to GPT at the regional or portfolio level, and when considering our Group strategy, rather than at the individual asset level.

We acknowledge that uncertainty exists in future projections of transition risks. The greatest uncertainty to GPT exists in the uptake of EV’s; an emerging market with regulatory changes likely in the short-to-medium term.

In our risk analysis and planning, GPT considered a low emissions scenario aligned with RCP 2.6 which broadly aligns with the Paris Agreement commitments. The RCP 2.6 pathway is associated with SSP1 scenario (sustainability-focused growth and equality) which features low challenges to mitigation and adaptation due to rapid technological development, relative global equality of income and focus on environmental sustainability. This includes increasing shares of renewables and other low carbon energy sources.

See Appendix A for the emissions scenarios used by GPT.

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Transition risks

Table 1: Policy and regulatory change

Significant regulatory and policy volatility has already occurred in Australia over the past decade regarding climate change. This trend is expected to continue as the momentum to transition to a low-carbon economy increases around the world.

Timeframe Impact Short term Medium term Long term Longer term

Risk impacts	GPT’s current response and strategy	Near‑term approach
Changes to energy tariff	• Chirnside Park is GPT’s first managed shopping centre with investment in solar	As equipment lifecycle opportunities arise, electrify asset heating
structures and potential	PV array and battery to ensure energy reliability and supply stability at an	(from gas) infrastructure to minimise dependency on fossil fuels.
supply constraints	affordable rate.	In 2020, we secured renewable electricity contracts for
	• Regularly review the impacts of a transition to renewables and minimise our exposure	our forecast load until 2030 to ensure we can fulfil our carbon
	to regulatory changes which are likely to focus on demand flexibility requirements or	neutral commitments.
	energy reliability.	We will continue to manage forward purchasing as 2030 approaches.
	• Implement initiatives from our Energy Master Plan, such as on-site solar electricity
	production, demand-side flexibility and energy storage, to mitigate the impact of
	potential regulation regardingenergyreliability.
Increased energy prices result in	• Since 2020, GPT has implemented a progressive procurement approach for energy,	Explore energy storage options to provide protection when the
higher operational expenditure	which sees GPT hedging electricity rates which has resulted in significant savings.	majority of Australia’s energy supplies are intermittent renewables.
and price volatility, causing	Refer to ‘Energy Price Volatility’ case study in our Case study library.
expenditure uncertainty	• The GPT Energy Master Plan provides a roadmap to achieve net zero carbon
	emissions while reducing energy cost exposure. The plan includes continued
	efficiency and plant optimisation programs, on-site renewable electricity generation,
	strengthening energy market knowledge and procurement capabilities, and demand
	response programs to minimise electricity capacity charges. Efficiency will remain
	central to our energy strategy.
	• Across all assets GPT has an ownership insert in, avoided operational costs of
	$32 million in 2023 were achieved and has cumulatively avoided $340 million in
	energy costs when compared to 2005 operational efficiency. (For full detail see
	GPT’s SustainabilityData Dashboard.)
More restrictive land planning	• Climate change impacts are considered by the Due Diligence Committee as part	Explore energy storage options to provide protection when the
codes lead to lower supply of	of the investment decision-making process.	majority of Australia’s energy supplies are intermittent renewables.
land for construction, resulting in higher capital expenditure	• Use site-specific climate modelling to inform our understanding of potential physical risks that maydrive land use andplanningrequirements.

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Risk impacts	GPT’s current response and strategy	Near‑term approach
Regulatory changes regarding	• Collaborate with industry peers and the Green Building Council of Australia	Engage with industry groups and peers to understand
carbon intensive construction	to develop a market for lower embodied carbon construction materials.	emerging legislation and regulations regarding land
materials result in increased capital expenditure for construction and mandatory reporting for embodied carbon	• Explore reduced embodied carbon techniques with our construction partners where feasible for current developments. • Undertake embodied carbon inventory reviews in development planning, which will position us well in the event of future mandatory reporting requirement.	uses and planning codes.
	• Use lower embodied carbon concrete in logistics developments.
Potential cost impacts from	• Continuing to reduce and eliminate carbon emissions from our operations in order	Work with industry groups and peers to understand emerging
price on carbon	to minimise or avoid the impacts of a price on carbon where possible. Our carbon	regulation and policy developments and refine GPT’s strategies
	neutral strategy positions us to limit cost impacts and also maximise the opportunities	where needed.
	of market shifts to lower carbon properties in their development and operation.
	• Inherently the majority of GPT’s operational emissions are from energy and waste.
	Our carbon neutral plans minimise these emissions and therefore reduce the
	potential impact of any price on carbon.
	• As the majority of carbon emissions in development projects come from concrete
	and steel, we model the most material emissions, implement processes to minimise
	emissions and apply a sensitivity analysis to the impacts of a price on carbon or
	engaging in carbon neutral construction contracts.
	• Conducting a detailed review of GPT’s individual revenue streams from key tenants
	and tenant sectors, funds management and development to enhance metrics for
	climate-related risks to income.
Changes to building codes	• GPT is involved in industry working groups and panels to provide input and	Engage with industry groups and peers to understand and act
mandating future proofing for	received insight into potential building code changes.	upon emerging legislation and regulations regarding updated
transition to a low carbon	• Climate adaptation planning processes consider foreseeable code changes	building codes.
economy	for new buildingdesigns and lifecycle upgrades.
Increasing regulatory and	• GPT has engaged external consultants to review proposed disclosures	Continue working with external consultants to ensure we are
investor pressure regarding	and make recommendations for improved alignment with TCFD, TNFD,	fulfilling the requirements of governments, investors, ISSB standards
sustainability-related disclosures	ISSB and SFDR reporting frameworks.	and recommendations of non-mandatory standards.
	• GPT has prepared for the adoption of ISSB S1 and S2 standards and	Regarding the EU Sustainable Finance Disclosure Regulation (SFDR),
	TNFD in preparation for mandatory sustainability-related disclosures.	GPT has sought advice on the implications of moving from an
	• Regular feedback is sought from investors with regards to future	Article 6 company to an Article 8 company and will respond soon.
	reportingexpectations.

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Table 2: Changes to market expectations, economic disruption and impacts to reputation

Failure to set or to meet stated climate and sustainability goals is likely to have negative reputational impacts, including the potential risk of litigation from shareholders and other affected parties, and may also result in reduced access to capital markets.

Investor expectations and capital allocation decisions increasingly favour organisations that are taking meaningful action to address climate change and ensure their resilience to its effects. In addition, regulators are requiring increasing disclosure around climate risk identification and management.

Timeframe Impact

Short term Medium term Long term Longer term

Risk impacts	GPT’s current response and strategy	Near‑term approach
Increased expectations from	• Engage with investors, tenants and other stakeholders to understand	GPT’s jointly owned and externally managed assets are targeting
investors and tenants for	and respond to expectations.	independent carbon neutral certification by 2030.
buildings and portfolios to reduce their carbon impact	• Attain and maintain independent carbon neutral certification for operating GWOF assets.	Offer strategies and solutions to our tenants to assist them in lowering their carbon footprint.
	• Continue to progress towards our target of independent carbon	Increased tenant engagement through asset manager relationship
	neutral certification for all GPT operationally controlled assets in	and existing engagement platforms such as tenant newsletters, Building
	which we have an ownership interest to be certified Climate Active	management committee meetings and correction action registers.
	carbon neutral by end the 2024.
	• Develop renewable electricity options for tenants by collaborating
	with energy partners.
Economic disruption, changes	• Continue to own a diversified property portfolio primarily located in	Collaborate with industry and government to ensure resilient cities
to consumer behaviour and	Australian capital cities, with limited exposure to regional economies	are maintained through industry group membership and participation
structural changes in regional	reliant on carbon intensive industries.	industry consultation and policy development.
Australia associated with contraction in carbon-intensive economies and industries	• Review risks regarding reduced revenue from tenants and sectors that are slowly transitioning, or not transitioning at all, to a low carbon economy.
Opportunity to attract capital	• Maintain our reputation for setting and delivering sustainability	Continue to develop these capital opportunities.
through our sustainability	goals and good corporate governance.
credentials, performance	• GWOF and GPT combined issued $937 million of sustainable
and achievements	debt by end 2023.

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CONTINUED

Risk impacts	GPT’s current response and strategy	Near‑term approach
Supply constraints, increased	• GPT has actively partnered with Greenfleet to establish a certainty of	Explore additional opportunities for investment in long term offset
costs and quality concerns	supply, quality and price for its foreseeable offset needs until mid-2027.	creation projects.
over offsets	• GPT’s offset strategy considers the vintage of the offsets we hold in our
	registry. We have an active watching brief for any potential changes to
	certification rules with regard to the use of offsets.
Liability risk and greenwashing	• GPT’s Board and Leadership Team are extremely focused on ESG	Continued enhancement of reporting, responding to international
	leadership and authentic delivery of our climate response, backed	best practices.
	by the governance processes outlined in this Statement.
	• Data is independently assured.
	• Carbon neutral outcomes are independently certified.

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Table 3: Technology change

Response to climate-change risk is accelerating change in technology, from carbon intensive to low carbon technologies. For many years, GPT has been a fast adopter of technologies that improve energy and resource efficiency and we continue to see future opportunities in this space.

The transition to new technologies which improve energy efficiency can mean increased regulatory compliance and other new risks, particularly around health and safety. These are considered closely.

Timeframe

Short term Medium term Long term Longer term

Impact

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Risk impacts	GPT’s current response and strategy	Near‑term approach
Energy security is impacted	• GPT is implementing Smart Energy Hubs in partnership with Shell Energy	GPT will continue to grow its on-site storage and develop Smart Energy
during the transition from	Australia. One Hub is operational in Chirnside Park Shopping Centre, and in	Hubs in partnership with Shell Energy Australia that aim to better balance
old to new technologies	2023 there were two installations underway with further feasibility studies	energy demand, on-site generation and storage and energy
	underway across the portfolio. Refer to Smart Energy Hub Case study	market requirements.
	on our website.
	• The transition from coal generation to renewables faces the twin reliability
	impacts of aging coal power stations and the non-dispatchable nature
	of most renewables. GPT is investing in increased demand-side flexibility,
	on-site generation and storage projects as a defensive strategy against
	the cost volatility that this transition can drive as well as contributing to
	grid stability.
	• Consideration of business continuity during potential long duration or
	rollingutilityoutages.
Increasing use of EVs and	• E-mobility, including electric vehicles, bikes and scooters, is an essential	GPT is future proofing for the expansion of EVs so that when market
associated charging negatively	part of the transition to a low carbon economy, however this introduces	expectations require availability of charging infrastructure, our assets
impacting an assets fire risk,	new risks that most assets were not originally designed to manage. Of	can deliver this safely and readily with the most up-to-date and low
infrastructure capacity and	particular risk are battery fires that can impact safety and the charging	risk technologies.
energy demand profiles	infrastructure that can impact an asset’s electrical capacity and peak demand profiles. During charging, where fire risk is more likely, GPT is taking a cautious approach to rolling out support infrastructure. Charging can	Lithium fire risk assessments are undertaken and incorporated into asset’s Emergency Management Plan.
	also impact our asset electrification plans and demand-side flexibility
	program success.
	• Asset specific risk assessments are required on all existing and future
	installation of any e-mobility charging infrastructure, as well as during
	asset design and lifecycle upgrades, with risk mitigation works to be
	determined bythe outcome of the risk assessment.

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Risk impacts	GPT’s current response and strategy	Near‑term approach
High cost for infrastructure	• Continuous investment over the past two decades has already positioned	Tenant engagement strategy to improve the understanding of GPT’s net zero
upgrades to meet tenant	GPT’s buildings with leading sustainability performance with most being	building transition and benefits to tenants.
expectations for net zero buildings	carbon neutral certified by 2023.
	• GPT has a strategy to electrify (degasify) our assets at lifecycle upgrade
	points aspart of our Net Zero Plan.
Risks and opportunities	• GPT is investing in new technology research and pilots to improve financial	Continued consideration of new and alternative technologies and risks
arising from research and	outcomes and better understand climate risk.
development that leads to new and alternative technologies	• Technology roll out plans that are cautious of fast changing technologies and the risks of redundant infrastructure.
	• Examples include:
	– Advances in battery technology and declining prices for solar systems
	increases appeal of renewable energy for investors and customers, and
	– Investment in the latest climate modelling, such as XDI, to inform asset
	level climate adaptation.

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Physical Risks

Asset-level physical hazard identification

Without additional global efforts to constrain emissions, a high emissions scenario will occur in the future. The high emissions scenario presents a greater magnitude and wider range of physical risks resulting from climate change. Through our carbon neutral efforts, GPT is contributing to the avoidance of a high emissions scenario eventuating. Nonetheless, our approach to risk management means that GPT is also preparing for the potential physical impacts of a high emissions scenario on our business and assets.

In risk analysis and planning, GPT considered a high emissions scenario aligned with RCP 8.5 which broadly anticipates potential global warming of between 3.3°C and 5.7°C this century. Whilst some of the impacts of a high emissions scenario are already manifesting, many will become more common and worsen in the long term. As asset lifecycles are of relatively long duration, adaptation opportunities must be addressed in resilience plans in the short to medium term, when upgrade opportunities arise.

We acknowledge that uncertainty exists in future projections of physical risks. The greatest uncertainty to GPT exists around increasing heat and resulting severe weather, and how we respond to the risks. By using RCP 8.5 modelling, the high emissions scenario, we remove most of the uncertainty and allows us to address the most extreme potential risks, and opportunities.

RCP 8.5 is associated with the SSP5 scenario (fossil-fuelled development), a socioeconomic scenario that features high challenges to climate change mitigation and low challenges to climate adaptation, due to its push for economic and social development coupled with the exploitation of abundant fossil fuel resources and the adoption of resource and energy intensive lifestyles around the world. This scenario has heavy reliance on fossil fuels with an increasing contribution of coal to the energy mix.

GPT conducted a physical hazard exposure exercise for all assets in our portfolio during 2020, considering the potential acute and chronic impacts of extreme hot days, heatwaves and rising average temperatures, severe weather events, riverine and flash flooding, tidal inundation, drought, and bushfire under the RCP 8.5 scenario. The reviews considered impacts over all time periods out to the very long term (out to 2100). The asset-level assessments were cross-referenced with the September 2020 Climate Measurement Standards Initiative report, ‘Scenario Analysis of Climate-Related Physical Risk for Buildings and Infrastructure: Climate Science Guidelines’.

Since the 2020 exercise, GPT has procured multi-hazard climate modelling from XDI for all assets out to 2100. In 2023, the modelling was used in a comprehensive physical climate hazard vulnerability assessment for all GPT’s office, retail and logistics assets. This was building on the physical hazard exposure exercise from 2020. GPT is focused on climate hazard vulnerability, not just climate hazard exposure. When it comes to climate change and extreme weather, asset vulnerability leads to consequence and risk, in addition to actual exposure to a hazard.

The modelling assisted in GPT prioritising key assets at risk of climate change, have been the focus of initial climate risk reviews and adaptation plans since 2022. Climate risk reviews and adaptation planning for GPT owned and co-owned assets continued throughout 2023, following standards such as ISO 14090, ISO 14091 and AS 5334-2013.

Equally as important as addressing direct physical climate hazards to our assets, GPT identified how the hazards may have an indirect impact. This involved identifying possible consequences should surrounding communities, infrastructure or economies be affected, by single or compounding climate change induced events. Both potential direct and indirect consequences from physical climate hazards had many synergies with transition risks of climate change.

Detailed climate risk reviews and adaptation planning have been incorporated into major development projects, as an input into governance processes, and investment decisions regarding plant and equipment to optimise building performance and future resilience. The risk reviews and adaptation workshops have also contributed to Green Star accreditation for existing assets and developments currently underway.

GPT is on track to deliver climate adaptation plans for at least 90% (by value) of wholly owned and managed assets by end 2026. GPT’s Climate Risk Analyst will continue to conduct climate risk reviews and adaptation planning for GPT’s assets to identify and reduce vulnerabilities to potential climate change hazards. A summary of the key potential impacts of each physical risk in the high emissions scenario is provided in Tables 5 to 9. The impacts of the physical hazards are grouped in Table 4.

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Table 4: Physical Hazards Impact Definitions

Physical hazard impacts	Direct impacts	Indirect impacts
Definition	The impact of the hazards directly on GPT’s physical assets or	The impact of the hazards on the surrounding community, infrastructure
	business operations.	and local economy in which GPT’s assets are located and upon which
		our success depends.
Attributes considered	• Estimated cost of damage to both operational and capital expenditure	• Duration or length of impact
	• Duration or length of impact	• Immediate financial impact to the greater regional economy
	• Approximate size of the common areas impacted	• Potential disruption or decrease of population, and
	• Potential immediate health and safety impact	• Long-term community impact.
	• Length of disruption to operations and tenants, and
	• Implication to new builds.

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Physical risks

Table 5: Extreme hot days, heatwaves and rising average temperatures

Heatwaves are predicted to increase roughly in line with the change in higher average temperatures for southern and central Australia, meaning an increase in the average number of days over 35ºC that cause notable impacts to infrastructure, health and ecosystems. As per the IPCC, every additional 0.5ºC of global warming causes discernible increases in the intensity and frequency of hot extremes, including heatwaves and heavy precipitation.

Adaptation

GPT retail and office assets have significant air-conditioning infrastructure with lifecycle upgrades occurring approximately every 15 years.

GPT uses climate modelling to consider this physical climate hazard, such as the projected increase in the number of extreme hot days per year exceeding 35ºC in 2030, 2050, 2070 and 2090 at an individual asset level to help inform lifecycle upgrades.

As a result, we focus on maintaining comfortable conditions, avoiding increases in electricity and equipment costs, and considering critical equipment requirements to reliably provide heat refuges. These considerations are not expected to materially impact asset returns due to existing controls within the Energy Master Plan and lifecycle planning.

Logistics assets have varying mechanical and passive cooling qualities and are often located in the more intense heat impacted areas of cities such as Western Sydney. However, logistics buildings have short lifecycles and GPT is already increasing focus on developing and upgrading logistics assets with improved insulation, access to air-conditioning to meet heatwave operating conditions, landscaping designed to minimise heat island impacts and access to on-site solar PV to lower energy costs.

Timeframe Impact

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Short term Medium term Long term Longer term

While the economic viability of the communities where we operate is not expected to be undermined by heatwaves, GPT assets can provide refuge for the community during periods of extreme heat.

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Risk impacts	GPT’s current response and strategy	Near‑term approach	Long‑term approach
Increased capital expenditure and operational	• Increased business intensity and	• Increase emphasis on passive design	• Continue to review climate modelling,
expenditure for cooling upgrades or the	occupancy density in GPT buildings	elements and demand management	technology advances, the detailed asset –
potential of stranded assets that don’t meet	necessitates increased cooling capacity	capabilities to ensure that peak	level climate risk assessments and
comfort condition expectations	in our buildings. Our infrastructure upgrade	air-conditioning loads avoid overlapping	adaption plans for further actions.
	program continues as a part of our capital	directly with network peaks during	• Continue to deliver comfortable indoor
	works program, which includes planning to ensure that cooling infrastructure meets potential future extreme heat conditions.	heatwaves to minimise operational costs. • On-site solar installations at logistics assets in anticipation of air-conditioning	conditions for those seeking respite from the higher than average temperatures, and engage with local governments to
	• The high-quality cooling infrastructure in	becoming part of future building	manage refuge risks and opportunities.
	GPT’s buildings generates comfortable	requirements, to manage energy costs.
	conditions during heatwaves that allows
	for business-as-usual and may also be a
	contributor to ‘community resilience’. In our
	retail assets, this may act as a drawcard for
	visitors seeking respite from the heat.
	• Efficiency programs and air-conditioning
	optimisation investments are reducing the
	energy costs to operate our buildings,
	combined with proactive energy cost
	management and demand management
	programs.
Potential damage to infrastructure resulting	• Business continuity plan in place for	As the probability of service failure increases	Engage with all levels of government
in utilities service interruptions and access	major acute events and natural disasters,	in the medium term with the potential for	to understand the resilience of energy
issues for assets	including the management of service	increased peak temperatures during	infrastructure and update our strategies
	interruptions and constrained access	heatwaves, GPT will specify higher operating	accordingly.
	to assets.	temperature ranges for major equipment or
		where possible, relocate equipment to
		sheltered positions.

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Table 6: Extreme weather events including floods, severe storms and cyclones

The high emissions scenario projects that extreme rainfall leading to flash flooding is very likely to increase. For every 1°C of warming, moisture content in the atmosphere can increase by around seven per cent, according to the Australian Bureau of Meteorology. This can dramatically alter the water cycle. In eastern, southern and south-western Australia, annual mean rainfall is projected to decrease, with potentially more extreme rain events leading to flash flooding. In northern Australia, increased annual mean and heavy rainfall events are projected, with a decline in the frequency of tropical cyclones. While the frequency of tropical cyclones is projected to decrease, there is a potential increase in their severity. Analysis of hailstorms shows an increase in the frequency of the storms in southeast and southwest Australia but declining elsewhere. However, modelling projects hailstorm frequency and severity increasing in Australia. Increased heavy rainfall leading to river flooding in most parts of Australia is also projected by 2050.

Adaptation The majority of GPT assets are not exposed to flood risk. For assets with exposure to potential flooding, we have invested in infrastructure to build resilience to ensure operations viability.

Severe storms are a regular occurrence in Australia, mostly from September to April. Every asset will be exposed to severe storms at some point in time, so it is vital we reduce the assets’ vulnerability with detailed climate modelling and adaptation planning.

In the short term, 0.2% of GPT’s balance sheet is exposed to potential cyclones (one logistics asset in Townsville). Further modelling will be required to investigate the risks of cyclones impacting our southern Queensland assets and their communities in the long term.

Timeframe Impact

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Short term Medium term Long term Longer term

Risk impacts	GPT’s current response and strategy	Near‑term approach	Long‑term approach
Damage to buildings resulting	Work with our insurers to model potential catastrophic events and	Where major capital investments are	Detailed climate modelling is
in increased capital expenditure	ensure that we understand these risks and have appropriate insurances.	made, GPT future proofs its buildings	included in major developments
for repairs	Where major capital investments are made, GPT future proofs its buildings for potential extreme events.	for potential extreme events.	to ensure building designs are resilient to extreme weather events.
Disruptions to operations	GPT has detailed business continuity, maintenance and asset
resulting from extreme	replacement plans that are updated on a regular basis.
weather events	The major capital cities where most of our assets are located also
	have strong resilience plans and infrastructure that can withstand
	extreme weather events.
	Use available tools to model extreme precipitation when determining
	lifecycle upgrades to roofs, including guttering systems to limit
	operational impacts.

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Physical risks

Table 7: Tidal inundation from rising sea levels

Based on the rate of sea-level rise, tidal inundation is very likely to increase and cause damage to buildings and infrastructure. It is projected by the IPCC that relative sea levels around Australia will rise at a rate higher than the global average, contributing to increased coastal flooding and shoreline retreat along sandy coasts. Under the RCP 8.5 emissions scenario, the historical centennial extreme sea level event (HCE, or 1 in 100 year event) is projected to become an annual event for most of the Australian coast by 2050.

Adaptation

The vast majority of GPT’s assets will not be directly impacted by sea level rise. Minimal impact is also foreseen on the regional economic viability and infrastructure upon which the assets depend. In the very long term, a small number of assets will be impacted by potential inundation if no preventative actions are taken. However, it is anticipated that these impacts will occur beyond the current building lifespans and adaptation plans will be acted upon as climate outcomes become clearer.

Timeframe Impact

Short term Medium term Long term Longer term

Risk impacts	GPT’s current response and strategy	Near‑term approach	Long‑term approach
Damage from direct flooding of assets or	GPT has reviewed all assets for the threat of	Work with local government authorities	Reassess any investments in assets where
flooding of local infrastructure or communities	tidal inundation out to 2100. The portfolio is	to understand the planning response	there are risks of material tidal inundation
making the assets inaccessible or isolated	assessed as having minimal potential risk in	to potential inundation risks.	impacts with the potential to undermine
from customers	the short to medium term.		longterm investment returns.

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Table 8: Bushfire

The frequency of extreme fire weather days has increased across Australia, and the fire season has become longer since 1950. It is projected that the intensity, frequency and duration of fire weather events will increase further throughout Australia as climate change becomes more extreme, according to the IPCC.

Adaptation

The vast majority of GPT’s assets are not located in bushfire affected areas as they are largely located in capital cities and industrial precincts, resulting in limited direct threat of physical damage to our assets. A small number of logistics assets are situated near low bush fire risk areas and have bushfire management plans in place.

Timeframe Impact

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We recognise that assets outside of direct fire threats may be impacted by bushfire smoke. Consequently, our planning and future upgrades consider indirect bushfire effects such as the impact on surrounding infrastructure and air quality, and the quality of our assets ventilation and filtration systems in particular.

Risk impacts	GPT’s current response and strategy	Near‑term approach	Long‑term approach
Direct threats from bushfires such as impacts	Installation of improved air filtration in office	As a major property manager, GPT will	Review technology advances to provide
on air quality as well as threats to surrounding	assets in response to the COVID-19 pandemic	work with local authorities in developing	greater bushfire resilience and engage
infrastructure such as power and roads	has the joint benefit of improving indoor air	community resilience plans and there	with local government to manage refuge
	quality during events, including bushfires	is potential for GPT buildings to be	risks and opportunities.
	and dust storms.	a refuge for the community duringbushfires.

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Table 9: Drought and water scarcity

As per the IPCC, time in drought is projected to be more prolonged for eastern, southern and south-western Australia in the high emissions scenario, while in northern Australia the projected increase is significant only for the extreme drought category. As populations grow in the long term, greater competition for water resources will amplify water scarcity issues and it is foreseeable that many of our urban areas will become more dependent on manufactured water (e.g. desalination plants) which is more costly.

Adaptation

GPT explores ways to build resilience against water scarcity and reduce water usage and pollution. GPT has set a target to deliver water neutral operations for GPT owned and managed buildings by 2030. This target is supported by our Water Master Plan, which has a focus on eliminating, reducing and/or substituting potable water consumption through active participation by key parts of the business across the development, operations and lifecycle upgrade phases of our assets.

GPT’s major asset-level water use is for cooling towers. Water currently makes up less than four per cent of total asset operational costs, therefore the impact of a potentially significant cost increase imposed by suppliers in response to future water scarcity would be minimal.

Timeframe Impact

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As community and regulatory expectations grow, ongoing water infrastructure investments will be required. Several GPT assets already have access to rainwater capture or recycled water which further reduces the potential direct impact from drought hazards.

Risk impacts	GPT’s current response and strategy	Near‑term approach	Long‑term approach
Availability of water for business as	While GPT is mindful of the increased risk of	Research diversification of cooling water supply,	Eliminate the use of water where
usual operations	drought, the Group does not have investments	as an alternative to using potable water.	viable at major asset developments and
	in regions of Australia that are significantly impacted by drought.	Develop a Water Master Plan to govern water use across theportfolio.	redevelopments through strategies such as geothermal heat exchange.
Increased price of water	GPT has implemented a water efficiency	Work with tenants to reduce water usage.
	strategy that has resulted in an over 50 per
	cent reduction in water intensity of its assets
	over thepast 18years.
Increased regulatory requirements	Continue to investigate strategies for reducing	Collaborate with local council and government
regarding the allowable uses of water	our water usage, the usage of drinking water	to build resilient cities and water supply.
	for operations, and reducing the degradation of downstream waterways by managing	Engage with the industry to develop a credible scheme for water offsets.
	stormwater discharge.

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Appendix C: Nature

GPT recognises that nature is integral to our business and broader society, and that our business has impacts and dependencies on nature. The TNFD defines nature loss as the loss of, and/or decline in, the state of nature. The major drivers of biodiversity loss within Australia include deforestation and land clearing, climate change-induced drought and warming oceans, and invasive species. Some of these drivers can be linked either directly or indirectly to the value chains of Australian companies, including in the agriculture, transport, infrastructure and property sectors.

TNFD defines:

Impacts as changes in the state as nature, which may result in changes to the capacity of nature to provide social and economic functions.

Dependencies are aspects of ecosystem services that an organisation or other actor relies on to function.

Nature-related transition risks and opportunities:

Nature-related transition risks are risks that result from a misalignment between an organisation’s or investor’s strategy and management and the changing regulatory, policy or societal landscape in which it operates.

Impacts may be:

1. Direct – a change in the state of natural capital caused by a business activity with a direct causal link

2. Indirect – a change in the state of natural capital caused by a business activity with an indirect causal link (caused by climate change or greenhouse gas emissions), and

3. Cumulative – a change to the state of natural capital that occurs due to the interaction of activities of different actors operating in a landscape, not only the target organisation.

Dependencies include:

1. Ecosystems’ ability to regulate water flow, water quality, and hazards like fires and floods

2. Provide a suitable habitat for pollinators (who in turn provide a service directly to economies), and

3. Sequester carbon (in terrestrial, freshwater and marine realms).

These direct and indirect impacts may be:

• Acute: biodiversity impacts: event or project driven, for example where a mining company clears a specific section of vegetation to make way for a new mine, or where a farmer applies pesticides to a crop and inadvertently degrades soil biodiversity.

• Liability and litigation

• Regulation and compliance

• Market (including financial risk)

• Technology, and

• Reputational and social licence.

• Chronic: biodiversity impacts: longer terms shifts in the way that ecosystems function or cease to function.

• Cumulative: biodiversity is impacted from multiple events or projects over time, alongside background stressors such as climate change.

GPT’s dependence and impact on nature and biodiversity creates both risks and opportunities.

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Nature-related transition opportunities:

Nature-related physical risks and opportunities:

1. Investment opportunities.

2. Access to green bonds or sustainability linked loans.

3. Culturally sensitive restoration projects that benefit Traditional owners.

Nature-related physical risks are a direct result of an organisation’s dependence on nature. Physical risks arise when natural systems are compromised, due to the impact of climatic events (e.g. extremes of weather such as a drought), geologic events (e.g. seismic events such as an earthquake) events or changes in ecosystem equilibria, such as soil quality or marine ecology, which affect the ecosystem services organisations depend on. Physical risks can be acute, chronic, or both. Nature-related physical risks arise as a result of changes in the biotic (living) and abiotic (non-living) conditions that support healthy, functioning ecosystems. Physical risks are usually location-specific.

Nature-related physical risks are often associated with climate-related physical risks. Ecosystems play a key role in emitting and sequestrating greenhouse gas emissions, and in supporting the adaptation to a changing climate.

Definitions:

Risk sources: The factors or conditions that can cause or contribute to the occurrence of a risk. They can be internal or external, related to stakeholders, environment, technology, process, or product. Within the register, risks sources commonly include hazardous chemical, legislative controls, investor preferences or natural features bring impact (e.g., flora, fauna, soil, water).

Risk triggers: The causes or actions that will cause a risk to materialise. Within the register, risk triggers are either due to a GPT action, broader societal action, illegal practice, or change in market perceptions.

Risk impacts: The expected harm or adverse effect that may occur due to exposure to the risk if it were to materialise.

1. Productivity

1. Availability and cost of raw materials, and

2. Business and supply chain continuity.

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Material nature-related risks identified through the TNFD assess phase.

Physical risks

Table 10: Acute natural hazard

Asset soft and hard infrastructure impact.

Table 10: Acute natural hazard Asset soft and hard infrastructure impact.
Risk impact	Risk source	Trigger
• Asset infrastructure damage – increased insurance	• Vegetation disturbance and/or clearing, climate change,	• Land and marine-use conversion and development
premiums, and investment in erosion defences, and natural	invasive species, salinity.	(e.g., marinas, harbours, ports, breakwaters), intensive

• Asset infrastructure damage – increased insurance premiums, and investment in erosion defences, and natural disaster systems, management, training and response.

  • Land and marine-use conversion and development (e.g., marinas, harbours, ports, breakwaters), intensive farming, dredging, introduction and spread of invasive species, intensive fishing, desalination plants.

• Nitrogen, phosphorus, PFAS, petroleum, hydrocarbons, asbestos, heavy metals (e.g., lead), fertiliser, pesticide.

• Asset disruption and delays – lost revenue from breached terms of lease, and/or absent or low footfall and investment.

  • Creation and improper disposal and treatment of hard – rubbish, grey water and sewerage, oil leaks and spills, radioactive waste, pesticides, fertilisers.

• Sulphur oxides, nitrogen oxides, particulate matter, volatile organic compounds, ammonia, carbon monoxide.

• Decreased asset urban heat island mitigation, carbon sequestration, biodiversity, and stormwater interception and treatment from lost or damaged greenspace provisions.

• GHG and non-GHG emissions from combustion vehicles, power generation, industrial facilities and smelting of mineral ores.

Table 11: Acute natural change: Supply chain and support service impact.

Risk impact	Risk source	Trigger
• Reduced access to material provisions and supporting	• Vegetation disturbance and/or clearing, climate change,	• Land and marine-use conversion and development
services (roads, storage facilities, production and health	invasive species, salinity.	(e.g., marinas, harbours, ports, breakwaters), intensive

• Land and marine-use conversion and development (e.g., marinas, harbours, ports, breakwaters), intensive farming, dredging, introduction and spread of invasive species, intensive fishing, desalination plants.

• Reduced access to material provisions and supporting services (roads, storage facilities, production and health care facilities, etc).

• Nitrogen, phosphorus, PFAS, petroleum, hydrocarbons, asbestos, heavy metals (e.g., lead), fertiliser, pesticide.

• Increased operational and capital costs (due to material supply related delays, elevated demand for goods, etc).

• Creation and improper disposal and treatment of hard – rubbish, grey water and sewerage, oil leaks and spills, radioactive waste, pesticides, fertilisers.

• Sulphur oxides, nitrogen oxides, particulate matter, volatile organic compounds, ammonia, carbon monoxide.

• GHG and non-GHG emissions from combustion vehicles, power generation, industrial facilities and smelting of mineral ores.

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Transition risks

Table 12: Policy and legal: Land/soil/flora and fauna regulation: current and future compliance. Non‑compliance and/or increased compliance costs.

Risk impact	Risk source	Trigger
• Expenditure affiliated with increased building standard/	• Existing and/or future land use legislation (e.g. planning,	• Asset operations
code, carbon and biodiversity offsetting requirements, greening provisions.	building codes, native vegetation, environmental protection, and wildlife and soil conservation legislation).	• Greenfield developments, and • Brownfield developments.

• Constrained development opportunity due to regulatory controls/zoning, decreasing asset footprint and revenue.

• Civil or criminal penalties including imprisonment, injunctions to stop degrading activities, directed environmental audits to assess impacts that are different or larger than what was approved, remediation of damage to the protected matter or third parties, enforceable undertakings to pay the Commonwealth or another party to protect or conserve a protected matter. Increased legal costs.

Table 13: Policy and legal: Water regulation – current and future compliance. Non‑compliance and/or increased compliance costs.

Risk impact	Risk source	Trigger
• Increased operational costs towards meeting increased	• Existing and/or future water legislation (e.g. planning,	• Asset operations
and/or modified building standards and codes and stormwater management planning requirements.	water, and environmental protection legislation).	• Greenfield developments, and • Brownfield developments.

• Increased operational and capital costs from constrained development opportunity (e.g., more public conservation zoning reduces land supply).

• Increased operational costs from civil penalties including injunctions to stop degrading activities, directed environmental audits to assess impacts that are different or larger than what was approved, and remediation of damage to the protected matter or third parties.

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Appendix C: Nature CONTINUED

Transition Risks

Table 14: Market and reputation: Material and operational expenditure.

Table 14: Market and reputation: Material and operational	expenditure.
Risk impact	Risk source	Trigger
• Increased operational and capital expenditure from	• Changes to material and operational provisions.	• Realisation of physical chronic and acute nature risks
supply constraints (e.g., limited market access to timber,		(land/soil/flora and fauna, water, air/atmosphere, natural
steel, sand and concrete), service and operational		hazards, cultural values).
restrictions (e.g., inaccessible transport infrastructure, skills shortage), and changes in market demand (e.g., increased demand and cost for in demand renewable energy,		• Increased demand for goods or services driven by markets, consumers and governments.
solar panels, carbon offsets, green concrete, green
steel, FSC timber, sustainability consultants).

GPT’s response and current plans.

Table 15: Technology change: Technology advancement – disruption.

Risk impact	Risk source	Trigger
• Reduction in footfall, investment, and tenancy from improved	• Technology.	• Technological advancement.
work from home capacity and conditions, particularly for
office based assets/investments.

More detail on GPT’s Nature Plan will be available on the website in April 2024.

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Appendix C: Nature CONTINUED

Nature-related opportunities

The TNFD defines nature-related opportunities as activities that create positive outcomes for corporates and financial institutions and nature by avoiding or reducing impact on nature, or contributing to its restoration. Nature-related opportunities can occur:

1. When organisations avoid, reduce, or mitigate the risk of natural capital and ecosystem services loss, and

2. Through the strategic transformation of business models, products, services and investments that actively work to halt or reverse the loss of nature, including the implementation of nature-based solutions or support for them through financing or insurance.

Chart 4: Categories of systemic risks include ecosystem collapse, aggregated and contagion.

Physical risk Transition risk Acute risk Policy & legal Market e.g. natural disasters exacerbated Introduction of regulation or policy Shifting supply, demand and by loss of coastal protection from e.g. changes such as increased financing e.g. through consumer nature (coastal marshes) leading land protection and investor preferences to costs of storm damage to coastal infrastructure Chronic risk Technology Reputation e.g. loss of crop yield due to decline Substitution of products or services Changing societal, customer or in pollination services with a lower impact on natural community perceptions as a result capital or dependence on of an organisation's role in loss ecosystem services of nature

Opportunities:

• Resource efficiency: Reducing raw material and energy costs.

• Markets: Enabling entry to new markets.

• Financing: Improving access to capital.

• Resilience.

• Reputation: Improving value proposition and brand.

Systemic risk

Ecosystem collapse Aggregated risk Contagion Risk that a critical natural system Linked to fundamental impacts of Risk that financial difficulties at one no longer functions e.g. tipping nature loss to levels of transition or more financial institutions linked points are reached and the natural and physical risk across one or to failure to account for exposure to ecosystem collapses resulting in more sectors in a portfolio nature-related risks spill over to the wholesale geographic or sectoral (financial or corporate) financial system as a whole losses (summing of physical risks)

Nature-related systemic risks

Systemic risks are risks arising from the breakdown of the entire environmental system, which can lead to financial instability, the collapse of ecosystems and increased risks for organisations. Nature-related systemic risks are characterised by modest tipping points combining indirectly to produce large failures and cascading interactions of physical and transition risks. One loss triggers a chain of others and stops systems from recovering their equilibrium after a shock.

Physical risk Biodiversity loss due to unsustainable clearing throughout global supply chains reduces the availability and increases the cost of timber, reducing profitability and resuliting in construction delays

Real estate development

Transition risk Transition risk Biodiversity impacts from Biodiversity impacts from developments results in delays to or developments results in rejection of project approvals due to reputational damage due changing regulatory requirements to disruption of key (which may arise from changing ecosystems or corridor regulatory positions at local, state, national or international levels)

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TNFD Mapping Governance

Disclose the organisation’s governance around nature-related dependencies, impacts, risk and opportunities.

1. Describe the Board’s oversight of nature-related dependencies, impacts, risks and opportunities.

2. Describe management’s role in assessing and managing nature-related dependencies, impacts, risks and opportunities.

Strategy

Disclose the actual and potential impacts of nature-related dependencies, impacts, risks and opportunities on the organisation’s businesses strategy and financial planning where such information is material.

1. Describe the nature-related dependencies, impacts, risks and opportunities the organisation has identified over the short, medium and long term.

2. Describe the effect nature-related risks and opportunities have had on the organisation’s businesses, strategy and financial planning.

3. Describe the resilience the organisation’s strategy to nature-related risks and opportunities, taking into consideration different scenarios.

4. Disclose the locations where there are assets and/or activities in the organisation’s direct operations, upstream, and/or downstream and/or financed, where relevant, that are in:

5. a) High integrity ecosystems

6. b) Areas of rapid decline in ecosystem integrity

7. c) Areas of high biodiversity importance

8. d) Areas of water stress, and

9. e) Areas where the organisation is likely to have significant potential dependencies and/or impacts.

Risk Management

Disclose how the organisation identifies, assesses and manages nature-related risks.

• a) Describe the organisation’s processes for identifying and assessing nature-related risk.

• b) Describe the organisation’s processes for managing nature-related risks.

• c) Describe how processes for identifying, assessing, and managing nature – related risks are integrated into the organisation’s overall risk management.

Metrics and Targets

Disclose the metrics and targets used to assess and manage relevant nature-related risks and opportunities where such information is material.

1. Disclose the metrics used by the organisation to assess and manage nature-related risks and opportunities in line with its strategy and risk management process.

2. Describe the targets used by the organisation to manage nature-related risks and opportunities and performance against targets.

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Appendix D: Glossary

Throughout this Statement, several national and international bodies and commitments are referenced. They are described below.

Reference	Description
Carbon Neutral	Carbon neutral means reducing emissions where possible and compensating for the remainder by investing in carbon offset projects
	to achieve net zero overall emissions, as defined in the Australian Government Climate Active Carbon Neutral Standards.
Climate Active	Climate Active is an ongoing partnership between the Australian Government and Australian businesses to drive voluntary climate action.
	Climate Active certifies businesses and organisations that have proven that they are measuring, reducing and offsetting their emissions,
	with a net result of zero emissions. Wherever GPT refers to Climate Active, we are referring to the Australian Governments’ Climate Active
	programs and certification standards.
	www.climateactive.org.au
Climate Measurement Standards	The CMSI is an Australian industry-led collaboration formed to provide comparable and consistent climate-related risk disclosures
Initiative (CMSI)	guidelines specifically for asset owners, banks, insurers and traders of private and residential property in Australia, and for institutions
	whose role it is to oversee financial and community stability.
	www.cmsi.org.au
European Emissions Trading Scheme (EU ETS)	The EU ETS is a cornerstone of the European Union’s policy to combat climate change and its key tool for reducing greenhouse gas emissions
	cost-effectively. It is the world’s first major carbon market and remains the biggest one.
	www.climate.ec.europa.eu/eu-action/eu-emissions-trading-system-eu-ets_en
EU Sustainable Finance Disclosure	The Sustainable Finance Disclosure Regulation (SFDR) is a European regulation introduced to improve transparency in the market for
Regulation (SFDR)	sustainable investment products, to prevent greenwashing and to increase transparency around sustainability claims made by financial
	market participants.
	www.finance.ec.europa.eu/regulation-and-supervision/financial-services-legislation/implementing-and-delegated-acts/
	sustainable-finance-disclosures-regulation_en
Financial Stability Board (FSB)	The FSB is an international body that monitors and makes recommendations about the global financial system, by coordinating
	national financial authorities and international standard-setting bodies as they develop regulatory, supervisory and other financial sector
	policies. TCFD was established in 2015 by the FSB to improve and increase reporting of climate-related financial information, and the
	first recommendations was released in 2017.
	www.fsb.org
Funds From Operations (FFO)	Funds From Operations is defined as the underlying earnings calculated in accordance with the Property Council of Australia
	‘Voluntary Best Practice Guidelines for Disclosing FFO and AFFO’.

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Appendix D: Glossary CONTINUED

Reference	Description
Global Biodiversity Framework (GBF)	The Kunming-Montreal Global Biodiversity Framework (GBF) was adopted during the fifteenth meeting of the Conference of the Parties
	(COP 15) following a four year consultation and negotiation process. This historic Framework, which supports the achievement of the
	Sustainable Development Goals and builds on the Convention’s previous Strategic Plans, sets out an ambitious pathway to reach the
	global vision of a world living in harmony with nature by 2050. Among the Framework’s key elements are 4 goals for 2050 and 23 targets
	for 2030.
	www.cbd.int/gbf
Global Reporting Initiative (GRI)	GRI is an independent international organisation that provides organisations with the widely used standards for sustainability reporting
	the GRI Standards.
	www.globalreporting.org
Green Buildings Council Australia (GBCA)	The GBCA is the authority on Green Star rated projects (see further information under Green Star in this glossary), leading sustainable building
	practices and educational resources about developments within Australia’s built environment.
	www.new.gbca.org.au
Green House Gas Protocol	G Protocol establishes comprehensive global standardised frameworks to measure and manage GHG emissions from private and
(GHG Protocol)	public sector operations, value chains and mitigation actions. The GHG Protocol works with governments, industry associations, NGOs,
	businesses and other organisations.
	www.ghgprotocol.org
Green Star	Founded by Green Building Council of Australia in 2003 for the Australian environment, Green Star is an internationally recognised rating
	system setting the standard for healthy, resilient, positive buildings and places.
	www.new.gbca.org.au/green-star
International Financial Reporting	The IFRS Foundation is a not-for-profit, public interest organisation established to develop high-quality, understandable, enforceable
Standards (IFRS)	and globally accepted accounting and sustainability disclosure standards.
	Standards are developed by their two standard-setting boards, the International Accounting Standards Board (IASB) and International
	Sustainability Standards Board (ISSB).
	www.ifrs.org
Innogen	A subsidiary of GPT Property Management, which is used as a vehicle to operate the Embedded Networks and Energy Generation.
Intergovernmental Panel Climate	The IPCC is the United Nations body for assessing the science related to climate change. The IPCC was created to provide policymakers with
Change (IPCC)	regular scientific assessments on climate change, its implications and potential future risks, as well as to put forward adaptation and mitigation
	options.
	www.ipcc.ch

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Reference	Description
International Sustainability Standards	The ISSB is an independent, private-sector body that develops and approves IFRS Sustainability Disclosure Standards (IFRS SDS). The purpose
Board (ISSB)	is to deliver a comprehensive global baseline of sustainability-related disclosure standards that provide investors and other capital market
	participants with information about companies’ sustainability-related risks and opportunities to help them make informed decisions.
	www.ifrs.org
International Union for Conservation of Nature	The IUCN protected area categories, or IUCN protected area management categories, are six management categories used to classify
(IUCN)	protected areas in a system developed by the International Union for Conservation of Nature.
	www.iucn.org
Mitigation hierarchy	The mitigation hierarchy is a tool that is used to limit the amount of damage an action, such as a development, will have on the environment.
	There are three steps (avoid, mitigate and offset) and each step must be followed in order and to the greatest extent possible before moving on
	to the next.
	www.dcceew.gov.au/environment/epbc/approvals/offsets/guidance/mitigation-hierarchy
National Australian Built Environment Rating	NABERS provides simple, reliable, and comparable sustainability measurement used across the building sectors. NABERS rates a building’s
System (NABERS)	energy, water, waste or indoor environment performance based on the building’s operational data.
	www.nabers.gov.au
Nature Positive	Halt and reverse the loss of nature, measured from its current status, reducing future negative impacts alongside restoring and renewing
	nature, to put both living and non-living nature measurably on the path to recovery.
	https://www.iucn.org/our-work/biodiversity/nature-positive
Operational control	Operational control is where an entity has principal decision-making authority in respect of operating a space or a service. For example,
	GPT does not have operational control over the majority of its logistics assets, where tenants have principal decision-making authority over
	matters such as entry into contracts for the supply of energy and its use on site.
Paris Agreement	The Paris Agreement is a legally binding international treaty on climate change. It was adopted by 196 Parties at COP 21 in Paris,
	on 12 December 2015 and entered into force on 4 November 2016. Its goal is to limit global warming to well below 2, preferably
	to 1.5 degrees Celsius, compared to pre-industrial levels.
	unfccc.int/process-and-meetings/the-paris-agreement/the-paris-agreement
Representative Concentration Pathways (RCPs)	RCPs are different greenhouse gas concentrations and their radiative forcing potential to describe different climate futures that are considered
	in scenario analysis.
Scope 1 Emissions	Scope 1 emissions are greenhouse gas emissions released to the atmosphere as a direct result of an activity, or series of activities, at a facility
	level. They are sometimes referred to as direct emissions.
	For a property portfolio, Scope 1 emissions stem from gas burned for heating and hot water, diesel and gas burnt for electricity generation,
	including emergency backup electricity and occasional refrigerant gases from air conditioning systems.
Scope 2 Emissions	Scope 2 emissions are released to the atmosphere from the indirect consumption of an energy commodity. For example, ‘indirect emissions’
	come from the use of electricity produced by the burning of coal in another facility.

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Appendix D: Glossary

CONTINUED

Reference	Description
Scope 3 Emissions	Scope 3 emissions are indirect emissions, other than Scope 2 emissions, that are generated in the wider economy.
	For GPT’s property portfolio, we are principally focused on reducing Scope 3 emissions in areas over which we have strongest management
	control. We align with the Australian Government’s Climate Active boundaries for Scope 3 reporting. For our properties, this includes emissions
	from electricity and gas transmission losses and emissions from waste and water consumption.
Shared Socioeconomic Pathways (SSPs)	SSPs describe different futures of socio-economic development in the absence of climate policy intervention.
	The combination of SSP-based socio-economic scenarios and RCP-based climate projections are often used together to consider future
	climate impact and policy analysis
Sustainable Debt Framework	The GPT Group Sustainable Framework was established in October 2021 which outlines how GPT and GPT’s Wholesale Funds (The GPT Wholesale
	Office Fund and The GPT Wholesale Shopping Centre Fund) intend to issue and manage sustainable debt. It has been developed in line with the
	principles and guidelines issued by the International Capital Market Association (ICMA), Loan Markets Association (LMA), Asia-Pacific Loan Market
	Association (APLMA) and where relevant, the Climate Bonds Initiative (CBI). These market standards are voluntary and accepted as best practice
	in the global capital markets.
	www.gpt.com.au/sustainable-finance
Task Force on Climate-Related Financial	The TCFD was established by the Financial Stability Board to develop recommendations for more effective climate-related disclosures
Disclosures (TCFD)	that could promote more informed investment, credit, and insurance underwriting decisions and, in turn, enable stakeholders understanding
	of the concentrations of carbon – related assets in the financial sector and the financial system’s exposures to climate-related risks.
	These recommendations were released in 2017 to help companies provide better information to support informed capital allocation.
	www.fsb-tcfd.org
Taskforce on Nature-related Financial	The Taskforce on Nature-related Financial Disclosures (TNFD) has developed a set of disclosure recommendations and guidance that
Disclosures (TNFD)	encourage and enable business and finance to assess, report and act on their nature-related dependencies, impacts, risks and opportunities.
	The recommendations and guidance will enable businesses and finance to integrate nature into decision making. Our aim is to support a shift in
	global financial flows away from nature-negative outcomes and toward nature-positive outcomes, aligned with the Global Biodiversity Framework.
	www.tnfd.global

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