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Climate Change ResiliencePILLAR 2: PROPERTY PORTFOLIOESR Group LimitedEnvironmental, Social and Governance Report 202455As an illustration, our listed REITs published climate-related disclosures in their respective sustainability reports. The disclosure included material climate-related risks that were identified through climate risk assessments, as well as the accompanying mitigating actions to address these risks and their associated impacts. The table below highlights some of the transition risks associated with the REITs%u2019 portfolios:Listed REITsSpecific transition risks identifiedSpecific mitigating actions/measuresESR REIT%u2022%u0009 Singapore:Strictersustainabilitystandardsandrising carbon tax.%u2022%u0009 Australia:Zero-energybuildingtargetsandenergy productivity improvements.%u2022%u0009 Japan:Mandatoryenergyefficiencystandardsfor mid-size buildings.%u2022%u0009 EnsurecompliancewithnewsustainabilitystandardsinSingaporeandmonitorcarbontaxincreases.%u2022%u0009 AlignbuildingoperationswithAustralia%u2019slow-energybuildingtargetsandnationalproductivity goals.%u2022%u0009 AdaptbuildingpracticestomeetJapan%u2019senergyefficiencyandconservationrequirements.Suntec REIT%u2022%u0009 Policy&Legal%u2014Morestringentenergyefficiency requirements for buildings%u2022%u0009 Market%u2014Greatermarketdemandforgreenbuildings%u2022%u0009 Technology%u2014Coststotransitiontoloweremissions technologies%u2022%u0009 Maintainorimprovegreenbuildingcertificationratings.%u2022%u0009 Completeongoingenergy-savinginitiativesandexplorenewones.%u2022%u0009 UpdatesustainabilityroadmapandESGtargetstoalignwithmarketexpectations.%u2022%u0009 Regularlyreviewbuildingdatatoidentifyperformancegapsandimproveefficiency.%u2022%u0009 EngagewithvendorstoupgradetheBuildingManagementSystem(%u201cBMS%u201d)forintegrationwith other Mechanical, Electrical and Plumbing (%u201cMEP%u201d) systems.%u2022%u0009 Pilotinnovativeenergymanagementtechnologiesforenergyandcarbonreduction.%u2022%u0009 Explorepartnershipswithtechprovidersforlow-carbonsolutions.Fortune REIT%u2022%u0009 Increasedadoptionofrenewableenergy%u2022%u0009 Increasedmarketdemandforgreenandclimateresilient properties%u2022%u0009 Marketdemandforgreenfinance%u2022%u0009 SolarpanelsinstalledatFortuneCityOne,LagunaPlaza,FortuneMetropolisand+WOO.%u2022%u0009 TheManagerfocusesonreducingcarbonemissionsbyenhancingenergyefficiency,monitoring emissions performance against SBTi targets, reducing resource consumption, and raising environmental awareness.%u2022%u0009 100%greenbuildingcertificationachievedacrosstheFortuneREITportfolioinHongKong.%u2022%u0009 Fivesustainability-linkedloanssecured,representing62%oftotalloans.%u2022%u0009 Firstsustainability-linkedinterestrateswapwithDBSBank,resultingintheFarm@Fortune initiative.Prosperity REIT%u2022%u0009 PolicyandLegalRisks%u2022%u0009 TechnologyRisk%u2022%u0009 MarketRisk%u2022%u0009 ReputationRisk%u2022%u0009 Developsustainabilitypoliciesincontrollingandmonitoringthesustainabilityperformanceand enhancing climate resilience.%u2022%u0009 Requireemployeestoattendclimate-relatedtrainings.%u2022%u0009 Keeptrackoftheclimate-relatedtechnologydevelopmentandconductcontinuousmarketresearch.%u2022%u0009 Engageconsultantsformonitoringsustainabilityandclimate-relatedmatterstoavoidnegative perception from stakeholders.%u2022%u0009 Conductregularmeetingswithleasingteammembersandbuildingmanagerstoreviewthe performance of Prosperity REIT%u2019s portfolio.%u2022%u0009 Engagestakeholdersandregularlyconductmaterialityassessmentwithstakeholders.