PMG’s 2025 Sustainability Report Reveals Measurable Impact Of Environmental Improvements To Commercial Property

PMG Funds, which owns and manages 50 properties across New Zealand comprising over 165 commercial tenancies, has released its latest Sustainability Report, focusing on the measurable benefits of proactive building management.

Since introducing emissions measurement into the management of its portfolio in 2021, PMG has been able to take an evidence-based approach to demonstrating the environmental and economic impact of sustainability enhancements. In this year’s report, it highlights how a range of initiatives have not only lowered emissions but delivered for investors through enhanced property valuations, stronger tenant satisfaction and improved retention.

These include:

• the implementation of AI-powered building management systems;
• better waste management;
• solar installations; and
• provisions for e-transport.

PMG Funds Facilities Manager, Massimo Crestanello, says a focus on sustainability enhancements that deliver long-term value, tenant wellbeing and operational efficiency drove them to be the first in New Zealand to introduce an AI-powered Intelligent Maintenance system for a five-level, multi-tenancy office property in central Christchurch.

“Large commercial buildings can struggle with balancing energy efficiency, tenant comfort and asset longevity – with traditional approaches often leading to inefficiencies, high operational costs and inconsistent performance,” says Crestanello.

“By redefining maintenance through AI, we’ve been able to deliver massive improvements here that benefit our tenants, investors and the planet.”

These improvements have cut energy waste by 76,290kWh, reduced CO2 emissions by 73.54 tonnes and delivered $11,810 in energy cost savings.

Other key savings made across the PMG portfolio this year include 80,000kg of CO2 emissions from the installation of EV-chargers in partnership with ChargeNet and Hikatron, and the diversion of 41.27% of waste from landfill through a partnership with Reclaim.

PMG has also continued its partnership with solar provider Sunergise, completing installations at seven properties, including two early childhood education centres in Auckland. These centres have achieved a 35% reduction in energy costs since 2023.

PMG Funds Head of Facilities and Sustainability, Simi Mukherjee, says that while most PMG investors instinctively understand the importance of sustainability enhancements, the ability to demonstrate how these support the long-term sustainability of their returns is a vital mechanism in maintaining momentum across the sector.

“It’s estimated that globally around 80% of the commercial buildings that will be standing in 2050 have already been built – and that 97% of these are below the standard that will be required to meet carbon zero goals,” says Mukherjee.

“Given that around two-thirds of commercial property here in New Zealand is owned by investors, we feel it’s important for us to show leadership that inspires others to make what can be just small improvements that make a significant difference – all in the knowledge that investing in sustainability is investing in both your environmental and financial future.”

© Scoop Media