GPT Group

GPT assesses climate-related risks and opportunities across our business model and value chain. We consider the climate hazards and transition drivers to identify where risks and opportunities are concentrated.

Transition Drivers

• Policy and regulatory change
• Changes to market expectations, economic disruption and impacts to reputation
• Technology change

Physical Climate Hazards

• Extreme hot days, heatwaves and rising average temperatures
• Drought/water scarcity
• Severe weather events including floods, severe storms and cyclones
• Bush/grass fire (increasing fire weather intensity)
• Tidal inundation from rising sea levels

Impacts identified for each risk category

Policy and regulatory change (Transition): Changes to regulation, energy tariff structures and land planning and building codes, potential supply constraints leading to expenditure uncertainty, and increased disclosure obligations.

Changes to market expectations, economic disruption and impacts to reputation (Transition): Decarbonisation expectations, including offset quality, cost and availability; liability and greenwashing risks; climate-related risk exposure of tenants; and opportunity to attract capital through our ongoing sustainability metrics.

Technology change (Transition): Energy insecurity in a transition to innovative technologies, electric vehicle uptake increasing safety risks and energy demand, and higher costs for infrastructure upgrades to meet decarbonisation expectations.

Extreme hot days, heatwaves and rising average temperatures (Physical): Increased capital and operational expenditure for cooling and meeting comfort expectations, and heat damaged infrastructure leading to utilities service interruptions.

Drought and water scarcity (Physical): Availability of water for operations, increased cost of water and increased regulatory requirements.

Severe weather events, including floods, severe storms, and cyclones (Physical): Damage to our assets resulting in increased repair costs, and disruption to operations.

Bush/grass fire (increasing fire weather intensity) (Physical): Direct threats from bushfires such as impacts on air quality as well as threats to surrounding infrastructure impacting operations.

Tidal inundation from rising sea levels (Physical): Damage from direct flooding of assets or flooding of local infrastructure or communities causing access issues.

Time horizons

GPT evaluates climate-related risks and opportunities across defined time horizons that align with the major redevelopment and refurbishment cycles of commercial buildings (which form the underlying assets in our portfolio). This process includes considering the Paris Agreement pathway to 2050.

• Short-term (0-10 years): Covers the current business strategy and a lifecycle within which most leases will expire in GPT buildings.
• Medium-term (10-20 years): Period within which most buildings will require lifecycle works on major capital equipment.
• Long-term (20+ years): Potential major redevelopments for most assets. Long-term climate-related risks outlined in this Statement are indicative only, and are based on trend analysis from climate risk modelling.

Our focus in this Statement is on short-and medium-term climate risks and opportunities. While climate-related risks and opportunities have been identified for GPT in the short-to-medium term (0-20 years), we expect to manage these within our existing business model and strategy in both a low-emissions or high-emissions scenario.

Information base used to identify risks and opportunities

Our climate risk assessment draws on climate modelling data, overlaid with policies across relevant government jurisdictions and property-sector technology developments. This analysis provides insight into potential financial implications for GPT, which can include insights into future operating costs, insurance premiums, tenant demand and capital expenditure needs.

GPT's Risk Management Framework was applied to assess the likelihood, magnitude and consequence of each risk to determine significant climate-related risks and/or opportunities. Based on current analysis, including scenario modelling across short and medium (0-20 year) time horizons, no climate-related risks or opportunities are currently assessed as significantly impacting GPT's business model or strategy over these timeframes. These assessments reflect our mitigation and adaptation strategies, as well as methodologies, assumptions and uncertainties inherent in the scenarios used.

Value chain

In line with AASB S2 and TNFD, we describe our value chain across the real-estate lifecycle. Upstream, we work with capital providers and key suppliers of materials, equipment, technology and essential services. In operations, we partner with facility and property managers and onsite service providers to run safe, efficient and customer-centric buildings. Downstream, we serve tenants, retailers, fund investors and joint-venture partners, and contribute to communities and governments through jobs, improving public spaces and delivering amenity.

Key climate-related risks and opportunities arise in development and operations, so we use design, procurement, leasing and day-to-day management practices to assist to reduce emissions, strengthen resilience and protect long-term asset quality and returns.

Concentration of risks and opportunities

GPT assesses climate-related risks and opportunities across our business model and value chain. We consider the climate hazards and transition drivers to identify where risks and opportunities are concentrated.

Most of GPT's assets are concentrated in and near major Australian cities with relatively strong socio-economic capacity to adapt to climate change, reducing the risk of stranded or devalued assets. However, physical risk exposures can vary, for example, flooding is most material to GPT's assets in Brisbane and in Western Sydney, storms present an acute risk across all regions, and heat stress and extreme temperatures are the most widespread chronic risk.

Appendix A: Concentration of physical climate change-related exposures by region

Figure 4 (portfolio map) shows GPT's investment portfolio assets by region (Retail, Office, Logistics) with associated potential physical climate change-related exposures (heat, storm, wind, flood) across regions including Greater Brisbane, Greater Sydney, Greater Melbourne, Greater Newcastle, Adelaide, Perth, Canberra and Townsville (data as at 31 December 2025).

Net Zero Plan

GPT's Net Zero Plan provides a framework for emissions reduction and resilience. We conduct portfolio and asset-level climate risk reviews, supported by adaptation plans, to identify and manage both transition and physical risks. These reviews inform development design, capital allocation and operational decisions across the asset lifecycle so that our assets and operations remain viable in a changing climate.

Our Net Zero Plan focuses on emissions sources under our direct control while also addressing resilience to climate-related transition and physical risks and identifying opportunities across our portfolio and supply chain. Where possible, we focus first on reducing and eliminating emissions through renewable electricity procurement, energy efficiency, electrification, and the use of low-carbon materials and processes. To date, residual emissions have been addressed through offsets that meet our offset quality criteria.

Measure: Corporate Emissions (corporate office electricity, proportion of base building emissions, flights, accommodation, services and consumables); Building Operations (emissions from gas, refrigerants, diesel, electricity, water and waste); Upfront Embodied Carbon (where feasible, measure emissions from construction materials and processes); Resilience (undertake climate risk reviews and asset adaptation plans addressing physical and transition risks).

Reduce and eliminate: Corporate – improve office energy efficiency, use renewable electricity, consider demand for carbon neutral buildings and impacts of consumables. Building Operations – continuous refinement to enhance operational efficiencies of buildings, 100% on-site and off-site renewable electricity procurement, electrification of assets (where feasible), transition to use of low Global Warming Potential refrigerants. Embodied Carbon – adopt design and construction efficiencies that reduce project and asset carbon emissions, where feasible select low embodied carbon materials for construction projects, supply chain collaboration. Resilience – integrate adaptation measures at acquisition, redevelopment, and major capital works projects; grid transition readiness such as demand-side flexibility programs and electric vehicle infrastructure in asset design; long-term renewable energy supply contracts to reduce cost and volatility exposure; sustainable finance frameworks contribute access to diverse debt markets.

Offset: Offset residual emissions to achieve net zero after aiming to reduce and eliminate emissions where feasible. Preference offsets that meet key quality criteria, providing long-lasting carbon sequestration or emission avoidance. Secure offsets that meet quality and cost criteria.

Disclose: Independently validate and disclose outcomes and processes.

GPT has maintained carbon neutral outcomes for all material Scope 1 and 2 emissions where we have principal decision-making authority: Corporate operations – carbon neutral 2011-2024 with 2025 certification in review. Building operations – All operationally controlled base buildings carbon neutral since end 2024 (this includes all GPT wholly owned and managed assets, and excludes assets acquired during CY2025). Embodied carbon in developments – Australia's first certified "Climate Active" carbon neutral development delivered in 2022 and GWOF's 51 Flinders office development due for completion in 2026.

Our approach enables us to adapt as risks or opportunities materialise, including with regard to:

• Capital allocation considerations: Climate-related matters are considered in our investment proposal assessments.
• Operational adaptation: We incorporate updated climate modelling and resilience standards into redevelopment cycles and day-to-day operations.
• Responding to market preferences: We acknowledge and consider customer demand for low-carbon, energy efficient buildings.
• Insurance and financial instruments: We monitor climate-related risks and opportunities which may impact insurance availability and premiums, and debt/pricing terms.

GPT's approach to energy and decarbonisation

GPT is focused on five key areas which assist to advance our decarbonisation:

• Energy efficiency: Monitor energy consumption, optimise building systems to maximise efficiency while maintaining occupant comfort; establish site-specific goals reviewed and monitored through audits and assessments; training and support provided to employees; consider design for efficiency in new developments and plan for lifecycle upgrades.
• On-site solar photovoltaics (PV): Installed on some GPT-owned assets, mostly in Retail and Logistics assets that provide large rooftops and daytime loads; manage renewable energy certificates with the Clean Energy Regulator in alignment with the GHG Protocol market-based carbon accounting practice.
• Offsite renewable electricity: Central to our approach, including a focus on renewable base building electricity contracts; GPT manages its own renewable energy certificate registry with the Clean Energy Regulator.
• Electrification: By electrifying our buildings, where feasible, we aim to reduce the use of fossil fuels by upgrading heating systems at lifecycle and development opportunities; continue to review feasibility of electrification and its benefits for tenants and decarbonisation goals.
• Low global warming potential (GWP) refrigerants: Target use in heating, ventilation and cooling systems by monitoring supplier contracts and ongoing equipment maintenance.

We have established several Smart Energy Hubs in Office and Retail assets to provide demand management programs that include on-site solar generation, batteries and LoadFlex processes to adjust our demand profile in response to market events.

Indirect mitigation efforts (working with tenants and supply chain)

Many of GPT's tenants and partners have their own net zero and wider sustainability initiatives, and our carbon neutral buildings play a role in their actions. We provide some tenants with energy services, including solar arrays, embedded networks and renewable energy contracts to reduce their footprint. GPT has additional opportunities in our supply chain and other business relationships in considering climate and nature-related impacts and opportunities, such as through project design and materials selection considerations which require planning and due diligence across the development process.

Approach to offsets

GPT engages with certain offset programs to facilitate our Net Zero Plan and to assist to mitigate unavoidable biodiversity impacts from development. GPT uses carbon offsets to compensate for residual emissions that are challenging or not currently feasible to eliminate, including gas for heating, refrigerants, waste and landfill. GPT has secured a supply of offsets which includes offsets that meet the Australian regulatory scheme and are certified Verified Carbon Units, focusing on these offsets that facilitate renewable energy generation with consideration to offset quality criteria (including additionality, permanence, measurability). In addition to these offsets GPT has proactively purchased carbon offsets through its 'Restoring Country for Climate' partnership with Greenfleet, since 2019. This project is working to restore 1100 hectares of cleared land to legally protected native forest in south-east Queensland, and this land is owned by the Kabi Kabi People's Aboriginal Corporation. During 2025, the project sequestered 105,575 tonnes of carbon dioxide equivalent (CO2-e).

Progress against previous plans

Climate vulnerability assessments have been completed for all GPT owned assets, supporting resilience in day-to-day operations and capital planning. We added on-site solar to reach 15.5MW and continued to drive efficiency, with energy intensity down 15 per cent since 2019. Our wholly owned and managed office and retail assets maintained carbon neutral operations, and upfront embodied carbon forms part of design considerations in new developments. Since 2022, 459 hectares of legally protected native forest has been planted through our 'Restoring Country for Climate' project with Greenfleet.

Current financial effects

For the 2025 reporting period, GPT did not identify any climate-related risks or opportunities that met the thresholds for material impacts on financial position or cash flows. Climate-related variables and scenario outcomes are incorporated into our existing analysis and form part of our asset management practices.

Climate considerations form part of GPT's capital allocation and operating budgets. We integrate both the costs and benefits of decarbonisation and resilience measures into forward-looking planning so that climate-related issues are not treated as separate overlays but as core elements of our financial management.

In practice, for capital expenditure considerations at an asset level, adaptation and mitigation measures are aligned with asset lifecycle triggers such as major equipment upgrades or asset development and other capital expenditure requirements. Development planning incorporates long-term climate modelling to assess foreseeable risks, while acquisitions undergo due diligence to understand key risks and opportunities.

Operating costs are also directly affected. Renewable electricity procurement under long-term contracts seek to mitigate GPT from volatility in wholesale energy markets by providing a stable base for operating expenses.

Offsets have been purchased at an effective carbon price of approximately $30 per tonne through to 2027, with the associated costs budgeted as a recurring property operating expense for properties under management.

The costs and savings associated with our climate response activities are included within GPT's financial statements and asset valuations, where relevant. While some costs are flagged as delivering climate-related benefits, they are not tracked in isolation, as they can also deliver wider operational advantages such as improved durability, quality, efficiency and safety.

Anticipated financial effects

Offsets have been purchased at an effective carbon price of approximately $30 per tonne through to 2027, with the associated costs budgeted as a recurring property operating expense for properties under management.

GPT's scenario analysis indicates resilience under both low-emissions fast transition pathway (RCP 2.6) and high-emissions physical risk pathway (RCP 8.5). In a low-emissions transition, our decarbonisation approach and current limited exposure to carbon-intensive tenants position us for policy and market shifts. Under a high-emissions pathway, our asset-level physical climate modelling projects minimal material risk exposure across the portfolio, supported by targeted adaptation measures.

Low-emissions (RCP 2.6 / SSP1-2.6)

Transitional impacts are the key challenges primarily: policy, market expectations and technology. Strategy remains resilient due to:

• Asset investment locations in and around major cities
• A current limited exposure to carbon-intensive tenants due to the nature of our portfolio and tenant mix, and
• Established decarbonisation approach supporting anticipated demand and including demand-flex and smart energy programs.

High-emissions (RCP 8.5 / SSP5-8.5)

Physical risks intensify. Modelling underpins climate vulnerability assessments and indicates:

• Less than 3.5% of portfolio value identified as moderate Value-At-Risk (VAR); no assets assessed as high VAR
• Insurability remains adequate, and
• Staged adaptation costs in line with developments and lifecycle upgrades.

Asset-level execution

Most of GPT's assets are concentrated in and near major Australian cities with relatively strong socio-economic capacity to adapt to climate change, reducing the risk of stranded or devalued assets. However, physical risk exposures can vary, for example, flooding is most material to GPT's assets in Brisbane and in Western Sydney, storms present an acute risk across all regions, and heat stress and extreme temperatures are the most widespread chronic risk.

Adaptation planning is tied to asset lifecycles, so costs are efficient and impacts managed:

• Acquisition due diligence screens climate risks.
• Development and major refurbishments are triggers for upgrades such as electrification, passive cooling and efficient low-emission equipment (compared to aged or older models) where feasible.

Resilience investments include solar arrays, flood barriers and cyclone-ready design. Broader impacts are also considered, including supply chain dependencies and community resilience to climate hazards.

By embedding risk assessment into due diligence and aligning adaptation measures with end of lifecycle upgrades, GPT helps to reduce vulnerabilities while managing costs efficiently. For example, GPT constructed a flood barrier system at Riverside Centre and One One One Eagle Street, Brisbane, which protected assets during the 2022 floods; and flood considerations are adopted in some targeted logistics asset designs.

Future acquisitions are expected to carry a similar risk profile to today's portfolio with asset-specific risks considered as part of future acquisitions, and the main uncertainties relate to the pace of technological change, shifts in market and regulatory expectations, and the severity of extreme weather events. To manage these unknowns, GPT revisits risk assessments on a scheduled basis, updates resource allocation and incorporates new science and data into planning.

Scenarios used

Low-emissions scenario: RCP 2.6 (aligned to SSP1-2.6): this presents an increased transition risk scenario.

High-emissions scenario: RCP 8.5 (aligned to SSP5–8.5): this presents an increased physical risk scenario with limited global mitigation.

Our climate risk assessment draws on climate modelling data, overlaid with policies across relevant government jurisdictions and property-sector technology developments. This analysis provides insight into potential financial implications for GPT, which can include insights into future operating costs, insurance premiums, tenant demand and capital expenditure needs.

GPT evaluates climate-related risks and opportunities across defined time horizons that align with the major redevelopment and refurbishment cycles of commercial buildings (which form the underlying assets in our portfolio). This process includes considering the Paris Agreement pathway to 2050. Time horizons: Short-term (0-10 years), Medium-term (10-20 years), Long-term (20+ years).