41 Environmental, Social and Governance Report 2022 PILLAR 2: PROPERTY PORTFOLIO The Group is committed to developing assets in strategic locations, with a sustainability focus on site selection, efficient design, green construction, and energy-efficient operations. As APAC’s largest real asset manager, we have built a significant presence in major consumer markets with established transportation networks. Securing assets in key strategic locations provides our 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. We strive to position our assets close to urban infill locations in markets where barriers to entry are high, supply is limited and demand is robust. We also adopt a sustainable approach by upgrading existing facilities, redeveloping properties to enhance connectivity with public infrastructure and lowering transport-related emissions. As customer proximity is key, strategic site selection with a preference for infill areas close to infrastructure, customers and transportation is essential to our business success. In Australia, LOGOS’ Moorebank Logistics Park is pioneering innovative safety and sustainability initiatives. The asset is equipped with state-of-the art machinery including automated stacking cranes, rail mounted gantry cranes and low emission hybrid auto shuttles. This allows the park to improve occupational safety and optimise supply chain efficiencies, reduce costs and decarbonise operations for tenants. As Australia’s largest intermodal freight precinct, the fully automated facility is strategically located adjacent to Australia’s largest rail intermodal with an IMEX (import-export terminal). The asset is the first intermodal facility globally with automated straddles moving containers via internal access roads to warehouse doors. Strategic Locations BIODIVERSITY CONSIDERATIONS Biodiversity is our natural circular economy engine and critical in sustaining the health of our eco-system. As ESR prioritises developments close to major consumer markets with established transportation networks, the building construction and operation in urbanised areas typically have a minimal impact on biodiversity. Nevertheless, the Group recognises that the design, construction, operation, and maintenance of our assets can impact biodiversity through our selection and use of land and materials and creation of natural environments in this sector. During site selection, the Group considers the environmental aspects of the site through an Environmental Impact Assessment (EIA) to assess the significant effects of the development project on the environment. In the design, construction and operations of our properties, we are committed to preserving biodiversity and maintaining high standards of environmental protection in native environments to ensure a balanced and intact ecosystem. Moorebank Logistics Park in Australia is one of our assets with an established biodiversity management plan. Biobank sites are set up to sustain the long-term ecological values of the site and offset biodiversity impacts. For vegetation removed from the site to facilitate rail access works, biodiversity credits will be used to offset against these actions and address any habitat degradation. In addition, a biobanking agreement was executed in January 2019 to protect in perpetuity 1 million sqm of biobank site to preserve significant flora and fauna in the area. The Bourne Business Park, currently under construction by ARA Europe, will have a biodiversity net gain due to prioritisation of native species and incorporation of animal habitat zones. Biodiversity enhancements will be carried out to transform underutilised areas to over 6,500 sqm of landscaped green spaces. Green wall, ESR Ichikawa Distribution Centre, Japan Preserved forest area at ESR Yokohama Sachiura Distribution Centre 1, Japan
RkJQdWJsaXNoZXIy MTIwODcxMw==