Page 43 - Demo

ESR Group Limited Annual Report 202441STRATEGIC REPORTSCORPORATE GOVERNANCEFINANCIAL STATEMENTSESR recognises that the design, construction, operation and maintenance of its assets can impact biodiversity through the selection and use of land and materials and creation of natural environments in this sector. Preserving biodiversity is crucial for sustaining natural ecosystems. Striking a harmonious balance between the built environment and nature is essential to minimise negative impacts on the environment. An exemplary illustration of its commitment to biodiversity management is Woody Meadows in Australia, where ESR Australia & New Zealand partnered the University of Melbourne on the Woody Meadows project to promote sustainability and biodiversity. This initiative started with planting native Australian shrubs at 80 Taryn Drive in 2023 and expanded in 2024 to two additional sites in Victoria. The project aims to test the viability of these low-maintenance plants on industrial sites, with initial findings expected in six months. It provides environmental and social benefits, enhancing aesthetics and biodiversity while reducing maintenance costs.Flexible & Adaptable PropertiesQuality, comfort, accessibility, and durability are attributes highly valued by the Group%u2019s customers. ESR utilises advanced technologies and high-quality resources during the design, construction and maintenance of its properties to prevent material degradation and ensure that they are safe and built-to-last. The Group strives to develop flexible, adaptable and state-of-the-art New Economy assets by catering to the diverse needs of various stakeholders, incorporating sustainable design and features and implementing cutting-edge technologies. Refer to case studies under the %u201cFlexible & Adaptable Properties%u201d section of the ESG Report 2024.Strategic LocationsThe Group is committed to developing assets in strategic locations, with a sustainability focus on-site selection, efficient design, green construction and energy-efficient operations. Securing assets in key strategic locations provides its customers with faster speed to market, opportunity to reduce transport costs and related carbon emissions, as well as strengthen their supply chain resilience in the long run. As customer proximity is key, strategic site selection with a preference for infill areas close to infrastructure, customers and transportation is essential to ESR%u2019s business success.ESR Yokohama Sachiura Distribution Centre 1 and 2, Yokohama City, Japan