57 Environmental, Social and Governance Report 2023 PILLAR 2: PROPERTY PORTFOLIO Climate Change Resilience Climate-related risks and opportunities Impact Key Mitigating Measures Acute Physical Risk Tropical cyclone • Increasing maintenance/repair costs • Increasing chance of power outages in the event of flooding in electrical facilities • Despite the Property Manager’s efforts to adapt to climate change by implementing its extreme weather policy, typhoons have caused minimal disruption to operations and damage to some Fortune Malls in the past, including broken windows, glass doors and water leakage. • As further protection against extreme weather events, the Manager has undertaken insurance policies for all its malls covering damage arising from climate-related extreme weather, including tropical cyclones (typhoons) and floods. Chronic Physical Risk Increase in average temperatures • Increasing costs to regulate indoor temperatures in response to tenant and visitor demand • Increasing demand in ensuring workers health and safety under prolonged exposure of high temperature • As part of Fortune REIT’s ongoing decarbonisation and climate change efforts, a smart Building Management and Building Optimisation System has been installed at major Fortune Malls. The cloud-based automated building solution allows the centralised collection and monitoring of building data, serving to optimise energy efficiency and regulate air quality. Market Transition Increased adoption of renewable energy • Unexpected shifts in energy costs due to increased adoption of renewable energy • R&D expenditures in renewable energy technologies • Solar panels have been installed at Fortune City One, Laguna Plaza and Fortune Metropolis. More solar panels will be installed in the coming years and the Manager will continue to explore the feasibility of installing more solar panels at its malls. • The Manager seeks to protect the environment and respond to climate change risks by reducing its carbon emissions through enhancing the energy efficiency of its facilities, monitoring its emissions intensity, reducing its consumption of natural resources, and raising environmental awareness amongst its employees.
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