Financial Markets Conduct (Climate Statements – Precinct Properties Group) Exemption Notice 2024

The Financial Markets Conduct (Climate Statements – Precinct Properties Group) Exemption Notice 2024 (Notice) exempts Precinct Properties New Zealand Limited (PPNZ) and Precinct Properties Investments Limited (PPIL), which are part of the stapled group, comprising PPNZ, PPIL and their respective subsidiaries (Precinct Properties Group) from the group climate statement obligation in s461ZA of the Financial Markets Conduct Act 2013 (Act), to the extent that that section prevents each of PPNZ and PPIL from consolidating its group climate statements with the other’s group climate statements.

The Notice permits PPNZ and PPIL to prepare consolidated group climate statements for the purposes of Part 7A of Act instead of each of PPNZ and PPIL having to prepare individual group climate statements.

The Notice is subject to several conditions including that PPNZ and PPIL must ensure that their group climate statements are prepared on a consolidated basis in respect of the Precinct Properties Group, the shares of PPNZ and PPIPL must remain stapled and that PPNZ and PPIL must ensure that they have the same balance date.

The key reasons for granting of the exemption (as set out in full in the Statement of reasons in the Notice) are that -

• shares of PPNZ and PPIL are stapled and traded as the single Precinct Properties Group on the NZX Main Board of NZX Limited and PPNZ and PPIL operate as a single economic enterprise with shareholders of PPNZ and PPIL being identical.  The climate-related performance of the Precinct Properties Group as a whole, rather than the separate underlying entities, is therefore of particular relevance to shareholders and potential investors.  
• it is desirable to grant the exemption in order to promote the purposes of the Act, specifically, it –
  • removes unnecessary compliance costs, namely the preparation of two sets of group climate statements when consolidated group climate statements will provide more meaningful information in respect of the Precinct Properties Group and the individual entities comprising it, and thereby promotes flexibility in financial markets by facilitating the efficient operation of the Precinct Properties Group structure;
  • promotes the confident and informed participation of shareholders and potential investors of the Precinct Properties Group in the financial markets;
  • promotes greater transparency in relation to the Precinct Properties Group, thereby contributing to the development of fair, efficient, and transparent financial markets;
  • provides timely, accurate, and understandable information to shareholders and potential investors to assist them to make decisions relating to the Precinct Properties Group.

Download the Financial Markets Conduct (Climate Statements – Precinct Properties Group) Exemption Notice 2024