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Sustainable & Efficient OperationsPILLAR 2: PROPERTY PORTFOLIOESR Group LimitedEnvironmental, Social and Governance Report 202445This initiative is aligned with both local and national sustainability goals, addressing peak electricity demand while supporting renewable energy integration. The project delivers key environmental, economic and social benefits, contributing to a greener, more energyefficient industrial landscape.By combining renewable energy, energy storage and charging infrastructure, the Changsha Yizhu project represents a forward-thinking solution that enhances energy reliability and supports sustainable development in the region.Changsha Yizhu Phase IESR ANZESR ANZ is steadily advancing its renewable energy initiatives, particularly through the expansion of rooftop solar installations across its properties. In 2024, ESR ANZ significantly increased its solar capacity, with a total of 36.2 MW installed, compared to 27.8 MW in 2023. This represents an impressive growth of ~30% in just one year.The progress is part of ESR ANZ%u2019s partnership with a leading Australian clean energy system developer, Solar Bay, to invest up to AU$500 million in renewable energy infrastructure over the next decade. The collaboration aimed to deploy 50 MW solar panels, 300 MW battery storage and electric vehicle (EV) charging infrastructure around various assets in Australia. ESR ANZ%u2019s customers get to enjoy up to a 50% reduction in energy costs while achieving an annual decrease of up to 56,000 tonnes in carbon emissions. This partnership enabled ESR and its investment partners to benefit from the energy transition opportunity associated with our large portfolio of warehouses and supports customers who are pursuing net zero targets and EV fleets.ESR ChinaIn 2024, ESR China launched its Changsha Yizhu Phase 1 %u201cPV-Storage-Charging Integration%u201d Project, an innovative initiative that combines photovoltaic (%u201cPV%u201d) power generation, energy storage systems and charging facilities to create a smart microgrid. Located in the Yizhu Industrial Park within the Changsha Economic and Technological Development Zone, this project aims to enhance energy efficiency, reduce carbon emissions and provide a sustainable energy solution.The project%u2019s core components include a 1.2 MW distributed PV power generation system, utilising 9,532 sqm of rooftop area and 2,105 monocrystalline silicon solar panels. Since its commissioning in February 2024, the PV system has generated ~1.2 million kWh of electricity annually, significantly reducing reliance on non-renewable energy sources. This significant output results in a reduction of ~393.6 tonnes of standard coal consumption and 1,196.4 tonnes of CO2 emissions each year, equivalent to planting nearly 18 acres of forest. These initiatives not only support China%u2019s carbon neutrality objectives, but also advance the transition towards a low-carbon economy.