Through our investment, asset and property management, forward funded development and corporate activities we look to minimise the environmental impact of our business.

PHP is committed to the principles of continuous improvement in managing environmental issues, including the reduction of pollution and emissions, the proper management and monitoring of waste, and compliance with environmental legislation and codes of practice.

Environmental and sustainable matters are an integral element of PHP’s assessment of the suitability of new medical centres that the Group looks to acquire and fund. PHP undertakes
a detailed assessment of each location, looking at the sustainable nature of a property and how it will serve the local population and its importance to the local healthcare provision, ensuring that the centre is affordable and will meet the future needs of the local population.

As awareness of climate change risk increases, we are reviewing our approach to environmental due diligence when assessing new acquisitions. An important element
of our process is to undertake detailed environmental and building surveys which include a detailed assessment of the environmental risk for each investment, including flooding, to ensure the risk is avoided or appropriate prevention measures are developed.

Energy efficiency is also considered through the due diligence process and all new acquisitions are now required to have an EPC of C or better, or capable of remedial action to achieve the required rating in due course. PHP has engaged consultants Simpson Hilder and GEP Environmental to help in this process.

80%

of the portfolio has an EPC rating of “A-C”

We are committed to creating best-In-class primary care centres by focusing on the future needs of our occupiers and thereby ensuring we are creating long term sustainable buildings. Our asset and property management policy is to invest in the portfolio of properties to generate enduring occupier and patient appeal, which provide opportunities to improve both rental values and the security and longevity of income, including limited risk short-cycle projects to improve the quality of assets. Through these asset and property management initiatives, we also aim to deliver energy efficiencies and source cleaner energy for our occupiers and their patients.

Due to the high levels of occupancy across the portfolio there are only a limited number of properties where PHP controls energy usage and where this is the case, we have adopted
a target to reduce our greenhouse gas emissions by 25% in absolute terms and 40% in terms of Intensity by 2030. This will largely be achieved through a policy of replacing existing features at the buildings with technology exhibiting high energy conservation credentials and energy supplies on green energy tariffs.

We will also engage, encourage and work with the NHS and our healthcare occupiers as part of NHS’s commitment to be ‘carbon net zero’ by 2045.

Across the portfolio, it is our goal for at least every asset that is refurbished to have an EPC of at least B by 2030 or have been raised by at least two grades. Where PHP is refurbishing an existing building or the new investment is the conversion and fit out of an existing structure, the minimum standard is to achieve a BREEAM (Building Research Establishment Environmental Assessment Method) rating of Very Good.

24

projects completed during 2020

100+

projects expected to commence over the next three years

Data sourced from Annual Report 2020

PHP together with its development partners are committed to promote the highest possible standards of environmental, sustainable and social matters when designing and constructing
new premises. As a minimum, it is our policy that all new, stand alone, developments PHP undertakes must have a BREEAM rating of Excellent (and Very Good with regards to fit-outs
and rural areas where the premises would not otherwise be provided) in the UK. In Ireland, all new developments are built to a Building Energy Rating of A3, or better, and in accordance with nZEB (nearly Zero Energy Buildings) standards. Requirements are also in place for our development partners and contractors to ensure the implementation of responsible property development practices.

We continue to work with our occupiers regarding their ongoing environmental responsibilities which in due course we aim to include in all leases entered into as a norm for newly built premises. We will integrate a range of sustainable features into new schemes including metering, solar PVs, roof lights, electric vehicle recharge points, water conservation
and ecology; encouraging our development partners to do the same when funding new schemes.

PHP will continue to work with its development partners, occupiers and other stakeholders to develop ways in which to monitor and improve the management of environmental and sustainability issues.

92%

of the newly completed assets delivered in 2020 held an EPC with a rating of B or better