ESG & CLIMATE REPORTING
Quayside’s approach to ESG and climate reporting has evolved from foundational analysis to a forward-looking strategy that actively shapes our investment decisions. In FY25, we developed our inaugural Transition Plan, marking a decisive shift toward embedding climate resilience and low-emissions alignment across our Investment Portfolio. The Port shareholding remains strategically important but sits outside the plan’s scope under current reporting frameworks; our influence there is exercised primarily through governance and board engagement.
A Strategic Transition Framework
The Transition Plan is built around three core impact channels that reflect our role as a regional, intergenerational investor:
- Responding to Climate Risks and Opportunities: Our portfolio is exposed to a range of climate-related risks—physical, transitional, and systemic. We are actively managing these exposures through diversification, enhanced due diligence, and targeted interventions in sectors and geographies most at risk.
- Contributing to the Real-Economy Transition: Beyond portfolio metrics, we are using our capital and influence to support a just and inclusive transition. This includes engaging with managers and investees to improve climate governance, transparency, and real-world decarbonisation outcomes.
- Decarbonising Quayside: We are addressing financed emissions across our investment portfolio, guided by credible net-zero targets and scenario-informed pathways. This includes working with external managers to align mandates with our orderly transition scenario and implementing emissions screening across listed assets.
An Adaptive and Intergenerational Approach
Recognising the complexity of climate-related risks, Quayside has adopted a staged and adaptive planning model. FY25 focuses on foundational actions—building internal capability, refining strategic intent, and establishing baseline assessments. From FY26 onward, we will deepen our asset-class specific strategies, refine our scenario analysis, and expand our climate metrics and targets.
Our guiding principles ensure that every transition action is:
- Outcome-oriented: Prioritising real-economy impact over superficial portfolio shifts.
- Just and inclusive: Considering the social and economic implications of our investment decisions.
- Flexible and resilient: Designed to evolve with changing climate, policy, and market conditions.
Quayside’s ESG and climate strategy is a living framework that will grow in sophistication and impact over time. As we continue to refine our Transition Plan, we remain committed to delivering on our enduring value proposition: a resilient dividend stream, intergenerational equity, and responsible financial stewardship of the Bay of Plenty.
In a world of rising uncertainty, Quayside is investing with clarity, purpose, and a long-term view— ensuring that our portfolio remains fit for the future and aligned with the values of our region and its people.
RISK MANAGEMENT
Quayside regularly reviews the enterprise risks facing the business, including revisiting our risk management framework. As our Audit and Risk Committee Chair, Keiran Horne, noted in 2024, the next stage of our risk maturity involved the refinement of our practices and controls.
As an institutional investor, we are keenly attuned to risk management and the investment opportunities that may rise within the context of risk, but there is always more we can do on our journey. Over the course of the year, Quayside has considered how risk is interwoven within our business and how we can continue to embed risk culture and risk leadership across all levels of our organisation.
RISK CULTURE
Risk Culture Survey
Our focus is on embedding a strong risk culture and risk leadership, at all levels. The true value of an engaging and proactive risk culture is where it shows up every day, in every decision we make.
To assist with this, Quayside has undertaken an inaugural internal risk culture survey to set a baseline early in the new financial year that will guide some of our actions.
Strategic Risks and Risk Appetite
In April 2025, the Board and the Senior Leadership Team engaged in a risk workshop, facilitated by an external expert, to look at Quayside’s strategic risks considering our strategic re-set in 2024 and re-confirm our risk appetite as an organisation.
Risk Management Framework review
In tandem, Quayside has reviewed our Risk Management Framework as part of our regular cycle of review, defining our strategic risks and quantifying our risk appetite.
Investment Risk
Alongside our Audit and Risk Committee, Quayside leverages off the expertise within our Investment Committee to proactively consider the myriad of specific investment risks and the structures (and technology) that can be used to assess and control such risks as well as leveraging opportunities.
Success
What does successful risk management look like for Quayside?
- Having a mature and self-perpetuating risk culture and risk leadership
- A risk framework that is scalable and adaptable
- An impactful approach that also proactively uses technology and data to inform decisions
The Quayside Board is highly attuned to ensuring strong governance in management of risk within the organisation with defined roles and responsibilities, resources and commitment, while also ensuring that compensated risk creates opportunities that may well align to our long-term view.
Keiran Horne
ARC Chair and Independent Director
Quayside Holdings
“Over the past year, we have continued to strengthen our risk management processes, with a particular focus on maturing our approach to risk appetite. This work provides us with a clearer framework for making informed decisions. Looking ahead, we will continually improve our risk management and build on this foundation to better understand and manage our risks in ways that deliver long term value across our portfolio.”
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