36 Environmental, Social and Governance Report 2023 PILLAR 2: PROPERTY PORTFOLIO Property Portfolio The second Pillar of our ESG Framework: Property Portfolio focuses on the environmental impacts within ESR’s control or significant influence on areas relating to the design, construction, maintenance and operations of our assets. The built environment is responsible for almost 40% of global energy-related carbon emissions. As APAC’s leading real asset manager powered by the New Economy and one of the largest listed real estate investment managers, we have the duty and responsibility to manage the impacts of our business on the environment. Our approach to environmental stewardship entails efforts to combat climate change, improve resource efficiency and reduce our environmental impact. Through the five focus areas under the Property Portfolio pillar, we strive to build, invest, and manage a global portfolio of real assets that are climate-resilient and best-in-class, both in design and operations. Environmental considerations are integrated into the life cycle of our assets to minimise our overall environmental footprint in the design, construction and operations of our assets. During site selection, the Group considers the environmental aspects of the site through an Environmental Impact Assessment. The aim is to assess and identify potential risks, opportunities and impacts to the environment and local communities. Environmental aspects include but are not limited to biodiversity disturbance and deforestation, climate-related risks and natural hazards, potential sources of pollution, site accessibility, and remediation actions on brownfield sites. As a developer of New Economy assets in various geographies, the Group is conscious of the impact the business operations have on the environment. Thus, due considerations and efforts are made at the investment stage as part of site selection criteria to focus on brownfield redevelopments and less reliant on greenfield developments. The Group seeks to minimise negative impacts to the community during development phases including construction, refurbishment or closure. As a strategy, ESR and our contractors consider various measures, in addition to adhering to local regulations, which include: avoiding the use of hazardous materials, complying with environmental requirements at worksites (e.g., waste, noise, wind-blown dust, traffic, etc.), fulfilling the requirements for health and safety, and minimising disruptions to road traffic. Other direct measures include: use of vibration and noise-reducing devices, worksite fences, air quality monitoring to minimise air and visual pollution including dust, and construction logistics planning for traffic flow around the construction sites. At the design stage, we emphasise the use of sustainable materials, innovative technologies and low-carbon construction methods to ensure that resilient and sustainable assets are developed. Where applicable, we utilise natural ventilation to manage energy consumption and maximise the use of renewable energy sources such as solar to power our properties. In addition, our property portfolio is developed in accordance with the relevant governing codes and construction standards of each country. Through ESR’s Future Solutions Group (FSG), we leverage technology to drive innovation and productivity, as well as undertake sustainable asset enhancement initiatives to optimise environmental performance. To meet the expectations of various stakeholders and adhere to the regulations in the markets we operate in, five focus areas are incepted to develop our diverse property portfolio as follows: • Sustainable & Efficient Operations • Sustainable Building Certifications • Climate Change Resilience • Flexible & Adaptable Properties • Strategic Locations
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