Picton appointed Greengage to develop a comprehensive ESG strategy, one that would go beyond compliance and establish a credible, structured framework for sustainable growth.
Picton is an award-winning listed Real Estate Investment Trust (REIT) focused on delivering long term income and capital growth through active asset management. The company has a diversified commercial property portfolio biased towards industrial assets.
Credit: Picton
Our engagement built on Picton’s initial materiality assessment and existing sustainability framework to deliver a full suite of ESG policies, continued alignment with the United Nations Sustainable Development Goals (UN SDGs), and a revised clear ESG framework with measurable KPIs.
The challenge
Picton faced a convergence of pressures familiar to listed UK REITs: tightening regulation, growing investor scrutiny of ESG credentials, and occupiers with their own sustainability commitments seeking landlords who share them. The updated ESG framework would require unifying sustainability themes against the backdrop of a rapidly evolving regulatory landscape.
The task was to translate Picton’s sustainability ambitions into a strategy grounded in evidence, aligned to stakeholder expectations, and as appropriate to the nature and scale of the business, actionable from day one.
Our approach
Greengage adopted a structured six-step methodology, designed to ensure the resulting strategy was evidence-based, stakeholder-aligned, and built to evolve alongside Picton’s business.
- Regulatory review
Reviewed current and upcoming UK ESG legislation applicable to Picton at both organisational and asset level, establishing a compliance baseline. - Stakeholder analysis
Assessed the ESG priorities of Picton’s key investors and occupiers, drawing on Picton’s stakeholder intelligence and Greengage’s sector expertise. - Policy review
Evaluated Picton’s existing ESG policies against industry benchmarks, identifying gaps and opportunities for improvement. - Materiality assessment
Synthesised findings across the three workstreams into a materiality matrix, prioritising ESG topics by their significance to Picton and its stakeholders. - Strategy and policy development
Developed Picton’s ESG priorities, a supporting policy framework, and an action plan with defined objectives, KPIs and accountable owners. - UN SDG realignment
Aligned the ESG strategy and supporting policies to the relevant United Nations Sustainable Development Goals.
ESG framework
The materiality assessment identified and prioritised ESG topics across three pillars — Environmental, Social and Governance — drawing on regulatory requirements, investor expectations, occupier priorities, and industry benchmarks. The resulting ESG priorities form the foundation of Picton’s strategy and the basis from which all policies were developed.
| Environmental | Social | Governance |
|---|---|---|
| Focused on Picton’s environmental footprint and the resilience of its portfolio to physical and transitional climate risks. | Centred on Picton’s responsibilities to its occupiers, employees, supply chain and the wider communities it operates in. | Underpinning the strategy with strong board oversight, transparent reporting, ethical conduct and effective risk management. |
Policy framework
Greengage developed a suite of ESG policies to underpin each of Picton’s identified priorities. To ensure consistency and auditability across the framework, each policy follows the same structure:
- Purpose and objective: What the policy is designed to achieve, including any organisation-level targets.
- Scope: Who and what the policy applies to across Picton’s business and portfolio.
- Responsibilities: Clear accountability for implementation and compliance at board and operational level.
- KPIs and targets: Measurable indicators to track progress, refined as strategies and data mature.
- Monitoring and reporting: The regulatory requirements the policy is designed to address and satisfy.
Where gaps were identified within Picton’s existing policies, new policies were developed and existing ones revised.
UN SDG alignment
The UN Sustainable Development Goals provide a globally recognised benchmark against which organisations can demonstrate and communicate their sustainability performance. Greengage re-aligned Picton’s ESG strategy and supporting policies to the relevant SDGs, strengthening Picton’s reporting narrative and connecting its commitments to broader global sustainability priorities.
Outcomes
Working in close collaboration with Picton’s leadership team, Greengage delivered:
- A comprehensive materiality assessment, establishing a clear, evidence-based picture of ESG priorities relevant to Picton and its stakeholders.
- A structured ESG strategy organised across Environmental, Social and Governance pillars, aligned to industry best practice and Picton’s business context.
- A suite of ESG policy templates, each with a consistent structure covering objectives, responsibilities, KPIs, monitoring requirements and legislative compliance, tailored by the Picton team.
- Full alignment of the ESG strategy and supporting policies to the United Nations Sustainable Development Goals.
- An action plan with defined objectives and measurable targets to drive progress toward Picton’s sustainability commitments.
Testimonial
“Acting responsibly is central to how we operate at Picton. Greengage helped us build on the progress we had already made, refining our approach and developing a clear strategic framework that reflects both our achievements and our ambitions for the future.”
Saira Johnston – CFO and Chair of the Responsibility Committee
