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40ADVANCING AHEADPILLAR 2: PROPERTY PORTFOLIO This pillar focuses on the environmental impacts that ESR directly controls or exerts significant influence over in relation to the design, construction, maintenance and operations of its managed assets.Sustainable & Efficient OperationsOver the year, the Group actively pursued asset enhancement initiatives to improve energy efficiency across its strategic assets. In line with its commitment to decarbonise its portfolio, ESR collaborated with numerous stakeholders to implement various synergistic decarbonisation initiatives. Last year, ESR China launched the Changsha Yizhu Phase I %u201cPV-Storage-Charging Integration%u201d Project, combining solar photovoltaic (%u201cPV%u201d) power generation, energy storage and charging facilities into a smart microgrid. The 1.2 MW system, using 9,532 sqm of rooftop space and 2,105 solar panels, generates 1.2 million kWh of solar power annually, reducing coal consumption by 393.6 tonnes and CO2 emissions by 1,196.4 tonnes, supporting China%u2019s carbon neutrality goals and its transition to a low-carbon economy.In Europe, ESR Europe%u2019s Regional REIT partnered Sunbird Solar International to install solar panels on 19 properties, generating4.17MWandenhancingsustainability.Thisjoint venture with Sugarbird SolarCo is also expected to provide green electricity, reducing carbon emissions by713tonnes.Similarly,SuntecCitycommittedtosustainable and efficient operations by integrating its chilled water system into the Marina Bay District Cooling Network, enhancing energy efficiency and expanding Singapore%u2019s largest underground district cooling network.Sustainable Building CertificationsAs at end 2024, the Group achieved a total of 248 sustainable building certifications and ratings across 182 completed directly managed assets, representing approximately 14.4 million sqm in GFA. These certifications and ratings include LEED, NABERS, CASBEE, WELL, with several assets holding multiple certifications and ratings during the reporting year, demonstrating ESR%u2019s commitment to sustainable and efficient operations. Refer to details under the %u201cSustainable Building Certifications%u201d section of the ESG Report 2024.Climate Change ResilienceESR is committed to future-proof its directly managed assets by taking action to identify, evaluate, mitigate and monitor the impacts of climate-related risks and opportunities across its portfolio. The Group adopts the principles prescribed by the International Sustainability Standards Board (%u201cISSB%u201d)%u2019s International Financial Reporting Standards (%u201cIFRS%u201d) S2, which has since incorporated the recommendations formerly under the Task Force on Climate-Related Financial Disclosures (%u201cTCFD%u201d) Framework. Guided by IFRS S2, the Group has commenced climate scenario analysis and climaterelated risk assessments for certain portfolios. These assessments are designed to identify, evaluate and mitigate climate-related risks and opportunities across its portfolio. For further details, refer to climate-related disclosures under the %u201cClimate Change Resilience%u201d section of the ESG Report 2024.Green wall at ESR Ichikawa Distribution Centre, Ichikawa City, Japan