PMG Funds chief executive Scott McKenzie. Photo: PMG / Supplied
Commercial property managers could benefit from switching to more sustainable practices, such as installing LED lights and electric vehicle chargers, as tenants become increasingly eco-conscious.
Unlisted property funds manager PMG Funds said sustainable switches have averted almost 200 tonnes of recyclable waste at its 47 properties in the past year.
The company - which has 165 tenants nationwide - is also installing solar panels at its rentals, offering cheaper energy to tenants.
Chief executive Scott McKenzie said while climate-related disclosure requirements and sustainability expectations from tenants were having an effect, there was still room to improve across the sector.
"Beyond supporting a sustainable environment for future generations, we shouldn't need a stick or carrot to encourage us - but the reality is that improving the environmental performance of buildings makes sense economically too.
"Green energy is an increasingly important factor in helping us retain our quality tenants, thereby aiding our ability to continue to deliver regular returns to investors."
McKenzie said the property sector contributed 20 percent of New Zealand's carbon pollution.
"With 90 percent of commercial property here owned either privately or by unlisted fund managers, it's clear that the onus is very much on us to step up."
