55 Environmental, Social and Governance Report 2023 PILLAR 2: PROPERTY PORTFOLIO Core Elements of IFRS S2 Recommendations ESR-LOGOS REIT’s Approach and Progress Australia Flooding: Floods are already common occurrence in parts of Australia, due to heavy rainfall, high tides and drainage problems, especially in low-lying areas. Climate change is expected to lead to more intense rainfall, exacerbating flood risk, while rising sea levels also increase the risks of coastal flooding. Water stress: According to the Australian Government, Bureau of Meteorology's State of the Climate 2020 report, rainfall has generally decreased due to climate change, with fewer wet years. Japan Flooding: Japan receives double the global average rainfall annually, and research by the Bank of Japan highlight flood damage to be set to increase by a factor of 9 by the year 2100. Earthquakes: Not a climate risk but considered together with physical climate risks given similar nature of impact to our portfolio. Japan’s geographical location leaves it vulnerable to earthquakes. Growing scientific evidence show that climate change may contribute to geological phenomena, hence there is a risk that earthquake frequency would increase in future. Climate Change Resilience
RkJQdWJsaXNoZXIy MTIwODcxMw==