ESR Cayman ESG Report 2021

FLEXIBLE & ADAPTABLE PROPERTIES Quality, comfort and durability are attributes highly valued by our customers. We design, construct and maintain our properties utilising advanced technologies and top-grade materials to ensure they are safe and built to last. With these priorities in mind, we also limit material degradation in our asset portfolio, which reduces operational costs and contributes to our stellar performance in the long run. Within ESR, there is a specific team, the Future Solutions Group (FSG), that is responsible for identifying and evaluating technological, economic and societal changes so that we can better address the needs of our customers and improve the logistics infrastructure. We plan to adopt new technologies such as 5G and robotics to increase efficiency and automation of our processes in the near future. We have collaborated with VRCO, a UK Aerospace company, to design the world’s first cargo drone logistics facility at ESR Higashi Ogishima Distribution Centre. Other companies such as Autostore, ESRI, GEEK+, Signify, SSI Schaefer and TMX have also presented to FSG during the year to obtain a better understanding on how their respective expertise (cube storage automation, GIS mapping systems, robotics, smart lighting systems and logistics solutions) can assist ESR’s daily operations. Furthermore, big data analytics will be conducted to enable us to streamline stock management and deliveries. We have included a number of features for the majority of our properties to maximise the level of flexibility, customisation and well-being of our occupants. For example, space utilisation has been optimised (large floor plates, high ceilings and wide column spacing) to provide a spacious and comfortable environment. Parking and loading areas have been designed to be especially efficient to reduce traffic congestion. Facilities provided to occupants in our properties include secure storage space with 24/7 surveillance, bike storage for cyclists and resting areas with showers. ESR Nagoyaminami Distribution Centre ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2021 30 PILLAR 2: PROPERTY PORTFOLIO