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 sustainability performance are integral elements of PHP’s approach to the acquisition of existing and funding of new primary healthcare buildings. We use detailed assessments of each location, looking at building efficiency and performance, enhanced service provision for the community and support for wider healthcare infrastructure.

We undertake detailed environmental and building surveys to assess physical environmental risks for each investment, including flooding, to ensure the risk is avoided or appropriate prevention measures are developed (see our TCFD disclosures in our Annual Report 2023 page 52).

During 2023 we continued applying our net zero and ESG commitments to investment activities, engaging with developers and asset owners to challenge standards and leverage our influence. Our acquisition of Ireland’s first Enhanced Community Care facility demonstrates this. The building is ready to operate with net zero emissions and was created from a vacant office building, minimising use of resources to deliver a first of its kind care facility for Ireland.

All acquisitions completed in the year had an EPC of B or better.


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

We are committed to creating best-in-class primary care centres, focusing on the future needs of our occupiers and thereby ensuring we are creating sustainable buildings for the long term. We invest in the portfolio of properties to generate enduring occupier and patient appeal, which provides opportunities to improve rental values, the security and longevity of income, and the quality of assets. This is a key route for PHP to deliver energy efficiency improvements and to introduce low or zero carbon measures for our occupiers and their patients.

Asset and property management will play a key role in achieving our NZC target of having a NZC portfolio by 2040, with interim commitments for all properties to have an EPC rating of at least B and NZC asset management by 2030 and an 80% reduction in portfolio emissions by 2035 via targeted improvements to buildings and occupier engagement.

During 2023 we completed eight (2022: ten) asset management refurbishment projects, with all achieving an EPC B rating. This includes three projects where a significant improvement was achieved from D and E. We have a further six (2022: ten) refurbishment projects on site or committed, which include energy efficiency upgrades, installation of roof-mounted solar panels, air source heat pumps and thermal efficiency upgrades. We have continued to use BREEAM for refurbishments but several projects during the year could not be certified due to their scope and size. We agreed 12 (2022: 33) new leases during the year, with all including Green Lease clauses.

In addition, we carried out targeted reassessment of building EPC ratings, to better reflect their current performance. Combined with annual renewals, we now have 42% of properties by value at an EPC rating of B or better (2022: 35%) and 85% at A–C (2022: 81%).

Our first two net zero ready refurbishment projects have progressed during the year:

  • Long Stratton in Norfolk is on site and has been designed to move away from gas to an air source heat pump.
  • Wakefield Trinity will also make the switch from gas to an air source heat pump and benefit from a significant solar PV array.

We are assessing embodied carbon for both projects, and are tracking this to practical completion. This will provide benchmarks for target setting on future projects.

This work along with net zero audits of buildings in operation will pave the way for future NZC asset management projects as we aim to accelerate progress ahead of our current 2030 commitment.

Working with our occupiers is essential to improving the performance of buildings and during 2023 our property management and facilities management teams engaged with all of our tenants, carrying out over 1,000 (2022: over 1,000) site visits at which issues, including energy and utilities, were discussed. During 2023 we have continued to review ways to improve the performance of the portfolio outside of our asset management programme. This includes 330 facilities management plant and equipment replacements and upgrades, include LED lighting, more efficient heating systems and building management systems. We also supported tenants to make their own building improvements, including energy efficiency upgrades and solar PV installations.

To build on this, we are planning to roll-out larger solar PV installations to sites where PHP procures energy for tenants and following this, where tenants procure their own energy. This approach offers the potential to reduce costs for tenants in the long term as well as reducing carbon emissions. The first two projects are underway to install 190 kWp of solar to two properties in the UK.


projects completed during 2023


projects expected to commence over the next three years

Data sourced from Annual Report 2023

PHP, together with its development partners, are committed to promoting the highest possible standards of environmental and social sustainability when designing and constructing new assets. Requirements are also in place for our development partners and contractors to ensure the implementation of responsible property development practices.

Progress continues on construction of PHP’s first NZC development in West Sussex which is expected to achieve practical completion in 2024. We also continue to work on our pipeline of carefully selected new developments which are being designed, built and capable of being operated as net zero carbon buildings.