Ryman Healthcare Launches NZ’s First Retirement Village Solar Farm, Cuts Emissions by 30%

Ryman Healthcare: New Zealand’s Leading Aged Care Provider and Renewable Energy Pioneer

Ryman Healthcare Limited stands as New Zealand’s largest retirement living and aged care provider and a leading integrated operator in Victoria, Australia. Operating 47 integrated retirement villages across both countries, Ryman supports over 15,500 residents and employs 7,800 team members. This extensive footprint exposes the company to significant energy costs and climate-related risks impacting long-term asset performance and resident wellbeing.

Ryman’s business model focuses on purpose-built villages combining retirement living and aged care in integrated communities. Climate resilience and energy efficiency are critical to ensuring uninterrupted care, resident comfort, and the sustainability of assets serving vulnerable populations. Advancing renewable energy supply and emissions reduction initiatives is therefore a strategic priority aligned with sustainability goals and operational reliability.

The $35 Million Maungatbroto Solar Farm: Renewable Energy Capacity and Impact

In FY26, Ryman Healthcare commissioned the Ryman Healthcare Solar Farm at Maungatbroto, Northland, marking the first commercial-scale dedicated renewable energy source for a retirement village operator in New Zealand. The $35 million project was developed via a joint venture between Tupu Tonu, Harbour Infrastructure, and Purpose Capital, operating as Maungatbroto Solar Farm Project Limited Partnership. The facility is owned and operated by a third party on Ryman’s behalf, with contractual arrangements securing access to its renewable energy output.

The solar farm is expected to produce approximately 32 GWh of renewable electricity annually. Under an agreement with Mercury, Ryman contracts 100% of the solar farm’s output and receives a firmed renewable electricity supply backed by Mercury’s hydroelectric generation portfolio. This guarantees reliable renewable energy even during low solar generation periods. The output equates to powering roughly 4,000 homes annually and is projected to reduce carbon emissions by about 3,200 tonnes each year. The solar farm will supply around 60% of Ryman’s New Zealand village electricity needs, significantly lowering reliance on fossil fuel-based grid electricity.

FY26 Emissions Reduction: Scope 1 and 2 Performance

Ryman Healthcare reported a 30% reduction in Scope 1 and 2 (market-based) greenhouse gas emissions in FY26 compared to FY25. This achievement resulted from combined efforts including the Maungatbroto solar farm commissioning, renewable energy procurement in Australia, and other climate initiatives. These results underscore Ryman’s commitment to enhancing climate resilience across its operations.

PwC provided limited assurance on certain greenhouse gas emissions data. Ryman applied New Zealand Climate Standards (NZ CS) Adoption Provision 4 regarding Scope 3 emissions, exempting full disclosure of all Scope 3 categories. The company disclosed business travel and waste-related emissions and included wastewater emissions under NZ CS Adoption Provision 5 for the first time. The 30% reduction in Scope 1 and 2 emissions confirms tangible progress driven by capital investments in renewable energy and procurement strategies.

Updated Climate Strategy: Focus on Emissions, Resilience, and Asset Management

Ryman refreshed its climate strategy in FY26 to align with its updated business priorities. The revised approach targets climate risks and opportunities most material to operations and where Ryman can exert direct influence. The strategy emphasizes reducing direct emissions, enhancing energy resilience across villages, and embedding climate-informed asset management into long-term capital planning and renewal decisions.

These pillars support resilience, capital discipline, and asset performance, ensuring villages remain reliable and adaptable to support resident wellbeing over time. Integrating climate considerations into asset management acknowledges the importance of climate resilience for service quality and financial risk management across long-life infrastructure assets serving vulnerable communities.

Climate Metrics and Targets Reset Starting FY27

To support the refreshed strategy, Ryman announced a reset of climate-related metrics and targets effective from FY27. This realignment ensures that performance indicators reflect key climate risks and strategic priorities. The reset involved reassessing relevant environmental metrics aligned with business operations, stakeholder expectations, and long-term value creation.

The transition period allows refinement of methodologies and establishment of new baselines. Investors can expect clarified, quantified climate targets when Ryman reports FY27 results. This recalibration reflects updated operational realities, climate science developments, and the company’s ability to drive measurable progress through direct control and partnerships such as the solar farm.

Governance and Regulatory Compliance for Climate Risk Management

Ryman Healthcare is designated a climate reporting entity under New Zealand’s Financial Markets Conduct Act 2013. Its climate disclosures comply with Aotearoa New Zealand Climate Standards (NZ CS) issued by the External Reporting Board (XRB), including NZ CS 1, NZ CS 2, and NZ CS 3. The Board approved the update on 27 July 2026, demonstrating high-level governance and oversight of climate risk management and disclosure.

Senior leadership, including the Audit, Finance and Risk Committee, oversees climate-related risk governance, reflecting the materiality of climate risk to financial performance and strategic planning. The disclosure process incorporates external limited assurance by PwC, embedding climate risk management within broader governance and risk frameworks rather than isolating it as a separate environmental function.

Material Climate Risks Affecting Long-Life Retirement Village Assets

Ryman’s portfolio of long-life retirement village and aged care assets across New Zealand and Victoria faces various climate-related risks that could impact asset value, operations, and resident services. Physical risks include extreme weather, flooding, water scarcity, and temperature changes affecting building performance and energy demand. The geographic spread exposes Ryman to diverse regional climate hazards.

Transition risks involve energy price fluctuations, evolving building energy efficiency regulations, carbon pricing, and decarbonisation market expectations. Dependence on grid electricity with variable generation sources exposes Ryman to cost volatility and regulatory changes. Investing in the Maungatbroto solar farm reflects strategic response to these transition risks, securing long-term energy cost stability and aligning sourcing with stakeholder expectations.

Management’s assessments involve judgment and assumptions about future climate scenarios, acknowledging inherent uncertainties that may affect outcomes.

Scope 3 Emissions Disclosure and Adoption of New Reporting Provisions

For FY26, Ryman applied NZ CS Adoption Provision 4 to limit Scope 3 greenhouse gas emissions disclosure, choosing to report only business travel and waste-related emissions. Additionally, NZ CS Adoption Provision 5 was applied to include Scope 3 wastewater emissions for the first time. This selective reporting aligns with materiality and operational influence considerations, while other Scope 3 categories remain excluded due to limited direct control.

The inclusion of wastewater emissions highlights emerging recognition of this source’s materiality. Future reporting may expand Scope 3 disclosures as methodologies evolve and additional emissions sources are identified.

Forward-Looking Statements and Reporting Methodology Considerations

Ryman’s climate disclosures include forward-looking projections on emissions reductions, solar farm output, energy supply, and strategy benefits based on management’s reasonable assumptions as of the disclosure date. Actual results may differ due to external changes or new information. The company disclaims obligation to update forward-looking statements except as required by law or listing rules.

Climate reporting remains an evolving field with developing methodologies, estimated data, and judgment-based assumptions. Disclosures reflect current understanding for FY26 and may be revised as operational data and standards mature. Investors should treat projections as estimates subject to change.

Future Directions in Energy Transition and Climate Strategy Implementation

The commissioning of the Maungatbroto solar farm marks a major milestone in Ryman’s renewable energy transition. However, the company’s climate strategy extends beyond this project, focusing on enhancing energy resilience across all villages, integrating climate-informed asset management, and further reducing direct emissions. Continued investments in climate resilience and renewable energy are expected across Australian operations.

The reset of climate metrics and targets from FY27 will provide updated benchmarks for progress measurement. Investors should watch for forthcoming financial reports detailing quantified targets, asset management integration, and energy resilience initiatives. Given the critical nature of long-life retirement village assets, climate resilience and energy security will remain key topics in future disclosures and investor communications.