PMG Funds has released its latest Sustainability Report, detailing the impact of targeted upgrades across its property portfolio.
The company owns and manages 50 commercial properties nationwide, housing more than 165 tenancies. According to the report, the improvements are delivering measurable environmental and financial benefits.
Emissions Tracking Since 2021 Shows Clear Gains from Smart Building Upgrades
The firm has invested in automation and renewable energy since implementing portfolio-wide emissions tracking in 2021.
The report highlights AI tools that optimise building performance, along with solar and EV infrastructure now in place. The result: lower emissions and measurable gains in cost efficiency and tenant satisfaction.
AI-Powered Maintenance Technology: A New Zealand First
One of the report’s key highlights is the introduction of New Zealand’s first AI-powered Intelligent Maintenance system at a five-level Christchurch office building. Designed to solve the common challenge of balancing tenant comfort with energy efficiency, the system has produced immediate results.
“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,” said PMG Funds Facilities Manager Massimo Crestanello.
“By redefining maintenance through AI, we’ve been able to deliver massive improvements here that benefit our tenants, investors and the planet.”
The technology saved 76,290 kWh of energy, cut 73.54 tonnes of CO₂ emissions, and reduced energy costs by $11,810 in just one year.
Portfolio-Wide Sustainability Measures Deliver Energy and Emissions Savings
The company has rolled out sustainability initiatives across its portfolio beyond Christchurch. EV charging stations installed in partnership with ChargeNet and Hikatron have reduced emissions by 80,000 kilograms of CO₂. A waste partnership with Reclaim has diverted 41.27% of waste from landfill.
Seven systems have now been completed in collaboration with Sunergise, including at two early childhood education centres in Auckland, which have achieved a 35% reduction in energy costs since 2023.
Linking Environmental Sustainability to Financial Performance
PMG’s report stresses that environmental improvements are closely tied to financial outcomes. Enhanced property valuations, tenant retention, and operational efficiency are all cited as evidence of the business case for sustainability.
“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,” said PMG Funds Head of Facilities and Sustainability Simi Mukherjee.
Future-Proofing Commercial Assets in a Changing Industry
Mukherjee also put PMG’s results into a broader context, “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,” she said.
PMG sees investor leadership as essential to future-proofing assets, with two-thirds of commercial property in New Zealand investor-owned.
“Investing in sustainability is investing in both your environmental and financial future,” Mukherjee noted.