43 Environmental, Social and Governance Report 2023 PILLAR 2: PROPERTY PORTFOLIO Thailand ESR has expanded into the Thailand market with two new logistics and industrial projects, which are Rojana Industrial Estate Laemchabang and Asia Industrial Estate Suvarnabhumi. These projects represent a THB 8 billion (US$235 million) investment and will be completed by 2026. In line with Thailand’s projected 3.2% GDP growth, ESR plans to invest an additional US$1 billion in the country over the next five years. ESR’s industrial real estate portfolio in Thailand focuses on sustainability and incorporates various features such as human centric design, renewable energy generation, electrification of logistics fleets, water resource efficiency management and reduction of carbon footprint throughout the development. These features are integrated from the outset of the design phase and will be implemented without compromising on the functionality and efficiency for tenants. South Korea ESR Korea has taken a significant step towards sustainable energy by partnering with the Korea Development Bank (“KDB”) and Korea Logistics Renewable Energy (“KLRE”) for their maiden project. The initiative involves developing and operating a network of rooftop solar panels on seven logistics assets owned by ESR Kendall Square REIT (ESR KS REIT), Korea’s first and largest pure-play logistics REIT. These assets, including Yongin Logistics Park 1, Icheon Logistics Park 5, Anseong Logistics Park 1–4 and Gimhae Logistics Park 2, will have solar panels with a total capacity of approximately 13 MW. Once operational by mid-2024, these panels are expected to generate around 15,000 MWh of solar energy annually, which is equivalent to powering over 4,000 average South Korean households. ESR Korea is also exploring opportunities to expand the solar panel network to other New Economy assets, collaborating with ESR KS REIT and utilising previously unused spaces such as rooftops to optimise space utilisation. Japan In 2023, ESR Japan has commenced the construction of ESR Itami Distribution Centre, which is the 37th logistics facility in Japan. With a focus on environmental sustainability, the facility aims to achieve CASBEE A Rank certification by adhering to stringent green building standards. It will feature LED lighting, efficient heat pump air conditioners, water-saving sanitary appliances, rooftop solar panels (capacity of approximately 700 kW) and rooftop greenery for ecological benefits and aesthetic improvements. Additionally, the centre will incorporate various disaster contingency measures. This human-centric design helps to create a safe, resilient environment for tenants, workers and the community. Artist impression of ESR Itami Distribution Centre India This year, ESR has made a second investment in Nagpur to expand the warehousing space in India. The development project within the emerging hub covers the construction of ten buildings with 130,000 sqm. In line with the Group’s ESG Roadmap, the ESR Nagpur Logics Park 2 will incorporate various sustainable building features, including energy and water-efficient designs, which reduce tenants’ environmental impact and operational costs. The project aims to obtain certification by the Indian green Building Council (“IGBC”) and the park’s general facilities will be seamlessly managed through ESR’s mobile application to enhance tenants’ experiences. Sustainable & Efficient Operations Artist’s impression of ESR’s industrial park in Asia Industrial Estate Suvarnabhumi Harnessing solar energy through rooftop solar panels on ESR’s New Economy assets in South Korea ESR Nagpur Logistics Park 2
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