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ESR Group Limited Annual Report 202443STRATEGIC REPORTSCORPORATE GOVERNANCEFINANCIAL STATEMENTSResponsible InvestmentESR became a signatory to the UN PRI in 2022, reinforcing its commitment to integrating ESG considerations in its investment and asset management processes across the Group. In 2024, the Group participated in its inaugural mandatory PRI reporting, receiving a four-star rating for three core modules, reflecting its commitment to responsible investing. Enhancements were made to both the Group%u2019s Responsible Investment Policy and ESG Checklist, strengthening the Group%u2019s due diligence and risk assessment processes. Engagement and training sessions were conducted for employees to strengthen capabilities in responsible investment practices.Demonstrating the Group%u2019s leadership in sustainable financing, ESR secured a landmark US$2.5 billion sustainability-linked loan, the largest of its kind in Southeast Asia%u2019s real estate sector, bringing its total sustainability-linkedloanstoapproximatelyUS$7billion.Disclosure & ReportingESR is committed to upholding the best practices in disclosure and reporting, improving its ESG performance, and proactively engaging with its stakeholders. The Group%u2019s ESG performance is disclosed regularly through its participation in globally recognised and respected ESG benchmarks and ratings, ensuring its sustainability linked business initiatives are consistent with best practices.Supply Chain ManagementESR incorporates ESG considerations as part of its supply chain management on areas relating to sustainable procurement, operational resilience, and sustainability performance of suppliers, and works with its contractors to integrate the relevant ESG considerations into the Group%u2019s value chain. Impact assessments are conducted prior to construction, covering local environmental impact and compliance with applicable laws and regulations. Suppliers are required to adhere to the Group%u2019s Supplier Code of Conduct, setting out the standards relating to regulatory compliance, business conduct, labour practices, environmental protection, sustainable procurement, health and safety training and awareness amongst other areas.To effectively handle the risks associated with counterparties, ESR%u2019s suppliers undergo a thorough screening and evaluation process, leveraging the advanced capabilities of ComplianceDesktop%u00ae. This tool is a key component of the refined Counterparty Due Diligence Workflow.2024 ESG BENCHMARKS & RATINGSUN PRI4-star rating for three core modulesGRESB3 Global/Regional Sector Leaders12 x 5 Green-Stars Ratings (average 3.41)2024sector leader 2024REAL ESTA TEISS ESGISS Governance QualityScore 1st decile ISS E&S QualityScores 1st & 2nd deciles ISS ESG Corporate Rating 3rd decile, with Prime statusMSCISustainalytics