Summerset: Building sustainable futures in aged care

Summerset, New Zealand’s second-largest retirement village operator with 38 villages nationwide, has made sustainability central to its long-term strategy. With an ageing population driving growth in demand for retirement living and aged care, the company recognises that addressing climate risk is not only about environmental responsibility but also about ensuring resilience in a sector that will be critical for decades to come.

When Summerset first launched its five-year sustainability plan in 2018, it did so with a clear intent: to be a responsible corporate citizen. “The board recognised that sustainability was not only a moral imperative but also a strategic one, aligned with stakeholder expectations and long-term business resilience,” says Summerset Chair Mark Verbiest.

Fast forward to today, and that foundation has evolved into a 10-year sustainability strategy launched in 2023, embedding sustainability across all six of Summerset’s strategic goals. It’s no longer an adjunct to the business, its core to how Summerset designs, builds and operates its communities. “Directors need to treat climate change as a strategic issue, not just a compliance one and be ready to pivot and adapt their approach when necessary,” says Verbiest.

The strategy focuses on transitioning away from fossil fuels, expanding renewable energy and decarbonising construction. Solar installations already powering amenities like pools and care centres are being extended through resident solar trials, while new builds are shifting to low-carbon construction materials. At some villages, solar now meets up to 80% of the electricity demand for key amenities during peak sunshine hours, demonstrating not only emissions reductions but also operational resilience and cost savings. Summerset is also exploring ways to extend solar benefits directly to residents through potential financial incentives or “solar sweeteners” for independent-unit households.

This is backed by a decarbonisation roadmap with a dedicated capital investment programme, signalling that climate action is not a short-term exercise but a long-term business transformation. In 2024 alone, Summerset invested nearly $1.5 million in sustainability initiatives, with an even larger budget allocated this year.

Summerset was also the first retirement sector operator in New Zealand to secure a sustainability-linked loan, incentivising progress on waste reduction and other environmental, social and governance (ESG) targets. That move sparked internal innovation, driving teams to rethink design, procurement and construction in ways that tangibly reduce emissions and waste. It also highlighted opportunities to improve efficiency and reduce costs through smarter use of materials, and to strengthen the company’s attractiveness to investors increasingly focused on ESG performance. The loan is projected to save up to $10 million in interest costs over a decade – clear evidence that sustainability-linked finance can deliver both environmental and financial dividends.

Along the way, the Board has learned that climate governance requires both ambition and agility. “Climate governance is not a one-off exercise – it’s a dynamic, evolving responsibility,” says Verbiest. The transition away from gas has had to accelerate as national supply dynamics shift. Supply chain emissions data remain a challenge, but Summerset is evolving from spend-based estimates to more accurate quantity-based reporting. Verbiest notes that this shift is resource-intensive but worthwhile: “It’s helping us build a clearer picture of our impact and where we can influence change.” This focus is particularly important given that Scope 3 emissions account for almost 94% of the company’s carbon footprint, driven largely by building materials and supply chain activity.

The choice to align early with the Aotearoa New Zealand Climate Standards and the Task Force on Climate-related Financial Disclosures (TCFD) framework was bold but strategic. By not relying on adoption exemptions, Summerset signalled a commitment to transparency and credibility, embedding climate-related risks and opportunities such as energy savings, innovation in building design and stronger community resilience into governance and long-term planning. This approach is already paying off. At Waikanae Village, for example, the use of reduced-carbon concrete and design improvements in townhouses cut embodied carbon by 24%, a clear competitive advantage as regulators, investors and residents increasingly value low-carbon construction.

Sustainability is treated as a whole-of-board responsibility. While the Audit and Risk Committee formally oversees climate matters, the full Board receives regular updates and integrates sustainability into land acquisitions and strategic decisions. “Discussions around climate risk, emissions reduction and resilience planning are now a regular part of boardroom dialogue, and directors are increasingly engaging with external materials and training to deepen their understanding.”

Capability building has been a priority too. Directors are supported through external expertise, scenario analyses and platforms like Chapter Zero New Zealand, which Verbiest credits as valuable in keeping boards informed and future focused. As he explains, “My approach has shifted from oversight to active engagement – ensuring the Board is equipped with the latest information, skills and external advice to make informed decisions.”

The strategy extends beyond carbon. Summerset is weaving nature-related considerations like water use, biodiversity, and land resilience into its developments. Villages like Waikanae showcase how native planting can restore ecosystems and manage water more sustainably. These initiatives are not only reducing environmental impact but also creating healthier, more appealing environments for residents – an opportunity to enhance quality of life while strengthening brand reputation. Similarly, site selection now routinely considers climate resilience, such as constructing Te Awa Village in Napier on elevated land to mitigate flood and sea-level rise risk.

Externally, Summerset collaborates with the Climate Leaders Coalition, Toitū, and the Retirement Villages Association Sustainability Committee. Recognition, like the Beacons Award for waste avoidance, demonstrates that industry leadership comes not just from internal action but also from sector-wide influence. These collaborations also open opportunities to share knowledge, shape industry standards and build partnerships that accelerate progress across the sector. Summerset’s achievements are also being noticed beyond its sector – ranking in the top 10 listed New Zealand companies in Forsyth Barr’s carbon and ESG ratings and winning the Institute of Finance Professionals’ ESG award for its work on embodied carbon and sustainability-linked finance.

Looking ahead, tools like AI are being explored to strengthen forecasting and risk modelling, further embedding data-driven decision-making into climate and sustainability planning. Meanwhile, transport decarbonisation is also advancing, with EVs already making up 12% of Summerset’s fleet (up from just 5% in 2023) and supported by the rollout of solar-powered streetlights and EV chargers at its villages.

Summerset’s journey underscores a central lesson: sustainability isn’t about compliance or reporting cycles – it’s about resilience, innovation and future-proofing the business. As Verbiest puts it, “Climate change is not just a risk, but a lens through which all governance decisions must be viewed, and if dealt with well, should mean we have a resilient business well into the future.”

For Summerset, that lens now shapes strategy, investment and culture ensuring the business thrives well in a climate-changed future.