Quayside is pleased to present its inaugural Climate-Related Disclosure Report. This Report was prepared in response to the mandatory Aotearoa Climate Standards regime and reflects our shareholder priorities discussed in the Annual Plan. The Bay of Plenty Regional Council (BOPRC), which 100% owns Quayside, has identified climate change as one of the three key impact areas to address due to its current and anticipated effects on the community. The Climate-Related Disclosures have a dual effect by understanding the impact of climate change on our organisation and the impact our organisation has on the climate, with the intended by-product being a more resilient investment portfolio.

Climate change poses significant risks that are expected to intensify over the next 10 to 30 years, potentially leading to material implications for economies and capital markets. At Quayside, we recognise that climate change is a long-term systemic risk. If not understood and managed properly, it can adversely affect our portfolio risk and returns, hindering our ability to fulfil our mandate.

Key Components of the Report include;

• A comprehensive combined bottom-up and top-down assessment of climate-related risks involves evaluating physical risks such as extreme weather that could damage assets, transition risks associated with moving toward a low-carbon economy and climate-related opportunities.
• The Report emphasises our commitment to understanding these risks and opportunities from a decarbonization perspective and considering the unique ecosystem in which Quayside operates.
• Our collaboration with the Port of Tauranga is crucial, given its significant role in our portfolio. The Port is well-positioned to manage climate risks and capitalise on both direct and indirect transition opportunities. By aligning our reporting with the Port, we ensure a comprehensive understanding of our collective climate exposure and strategic opportunities.
• We have started measuring our carbon footprint, focusing on Scope 1 and 2 emissions initially. We will start reporting our Scope 3 emissions, which include those generated by our investments, in 2025.
• Our strategic direction is to build resilience within our investment portfolio, ensuring it can withstand climate-related risks while seizing emerging opportunities and to do so – not surprisingly – we reflect on the role played by portfolio and geographical diversification. Steering away from portfolio concentration can increase our ability to provide resilient dividends to the Council while preserving real capital value.

Building on our experiences from 2023 and 2024, the financial year ending June 2025 will be pivotal for defining our Transition Plan and deepening our understanding of the role played by climate change as a driver of Quayside’s portfolio long-term resilience, value-creation and capital growth.

Read our full 2024 Climate-Related Disclosure here.

Read our 2024 Annual Report here.