59 Environmental, Social and Governance Report 2023 PILLAR 2: PROPERTY PORTFOLIO Quality, comfort, accessibility, and durability are attributes highly valued by our customers. At ESR, we design, construct and maintain our properties utilising advanced technologies and quality resources to prevent material degradation and ensure that they are safe and built to last. The Group strives to develop flexible, adaptable, and state-of-the-art New Economy assets by catering to the diverse needs of various stakeholders, incorporating sustainable design and features, and implementing cutting-edge technologies. We have identified the evolving socio-demographic trends within our key markets, leading to potential labour force shortages. Therefore, our strategy is to build assets which can cater to workers with varying demographics. In addition to automation needs, ESR aims to offer buildings with capabilities to accommodate day-care providers and increase the number of female friendly spaces, as well as improve customer employees’ well-being via lounges and fitness facilities. In addition, we aim to improve the disability-friendliness of our portfolio by examining and rolling out modification, where applicable, for easy access to building including accessible entrance areas and ramps, stairs and elevators, appropriately dimensioned circulation areas, corridors and doors, and accessible sanitary spaces. For illustration, the elements in the table below highlight some of the features that are being incorporated within the Group’s logistics centres. Flexible Adaptable State-of-the-art Customisability • Office space • Tailored design for specific use (e.g., refrigeration for cold warehouses) • Easily accessible staircases Climate resilience • Rooftop solar panels • Battery energy storage systems Creative technologies • Automated stacking cranes and rail mounted gantry cranes • Automated sorting and cold chain storage and transportation Active transit • End-of-Trip amenities (e.g., bicycle storage, shower and locker facilities) Biodiversity • Balanced and intact ecosystem • Natural/native environments Optimal space • Large floor plates • High ceilings • Fully ramped The Group also believes in investing in innovative initiatives as a key catalyst for fostering innovation and productivity, with the aim of transforming real assets into smart buildings. This is evident by the case study on the POKKA project, amongst the Group’s other properties with innovative features. Flexible & Adaptable Properties CASE STUDY TRANSFORMING POKKA’S FACILITY INTO A CARBON-NEGATIVE HUB In Singapore, the redevelopment of POKKA’s existing single-storey warehouse at 4 Benoi Crescent is a significant innovative project. ESR, in partnership with PGIM Real Estate’s Asia core strategy, invests approximately US$100 million to acquire the leasehold rights of the site and develop the facility, spanning around 64,490 sqm, to be completed in early 2024. POKKA is committed to a 10-year lease for at least 70% of the building space, with the option for further extensions. The facility aims to be carbon-negative by generating approximately 2MW of rooftop solar power and implementing a smart building management system (BMS) by Tuya. The BMS, managed by the Property Management team, allows for active scenario management, energy and water consumption monitoring and building optimisation software, resulting in expected energy savings of close to 1 million kWh over a 10year product lifecycle. This project showcases ESR’s commitment to sustainability and achieving carbon neutrality in both scope 1 and scope 2 embodied carbon emissions within a few years of operations.
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