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Strategic LocationsPILLAR 2: PROPERTY PORTFOLIOESR Group LimitedEnvironmental, Social and Governance Report 202459BiodiversityBiodiversity is our natural circular economy engine and critical in sustaining the health of our ecosystem. As ESR prioritises developments close to major consumer markets with established transportation networks, the building construction and operation in urbanised areas typically have a lesser impact on biodiversity. Nevertheless, the Group recognises that the design, construction, operation and maintenance of our assets can impact biodiversity through our selection and use of land and materials and creation of natural environments in this sector. During site selection, the Group%u2019s ESG due diligence process during pre-investment considers the environmental aspects of the site through an Environmental Impact Assessment to assess the significant effects of the development project on the environment. In the design, construction and operations of our properties, we are committed to preserving biodiversity and maintaining high standards of environmental protection in native environments to ensure a balanced and intact ecosystem. For this purpose, we consult with third-party biodiversity experts such as universities or nature groups across our operations, where feasible.Policy and CommitmentThe Group also has an Environmental Protection Policy that sets out our commitment to preserve the biodiversity and habitat surrounding our assets and projects. We adopt a biodiversity mitigation hierarchy framework to manage the risks and potential impacts related to biodiversity and habitat. This framework includes a structured approach to protect and conserve biodiversity and maintain the ecosystem through the following steps: Avoidance, Minimisation, Restoration and Offsets.As part of ESR ANZ%u2019s commitment to sustainability and biodiversity, we collaborated with the University of Melbourne on the Woody Meadows project. This project is a partnership in consultation with biodiversity experts (urban horticulture professors) from the University of Melbourne. This initiative began with the planting of the first bed of %u201cWoody Meadows%u201d at 80 Taryn Drive in Epping, marking the first pilot site. In 2024, we expanded this effort by planting 31 different species across two additional sites in Victoria, building on the initial planting in 2023. Woody Meadows feature native Australian shrubs that enhance the appearance and functionality of low-maintenance landscapes. These plants require minimal irrigation, reducing maintenance costs and environmental impact.The ongoing research project aims to test the viability of these native plantings on industrial sites, with initial findings expected in approximately six months. The trial promotes both environmental and social benefits, including improved aesthetics and increased local biodiversity. This project demonstrates our dedication to sustainable landscape solutions and is part of our broader efforts to expand these benefits across our portfolio, where applicable.In 2024, an external biodiversity risk assessment was carried out on ESR Korea%u2019s site at PJ Gamjeong. The assessment included a detailed evaluation of nature-related issues in accordance with the guidelines of the Taskforce on Nature-related Financial Disclosures (%u201cTNFD%u201d) framework, and included criteria related to the diversity and variety of species (Biodiversity Importance), Ecosystem Integrity, genetic diversity and ecological process (Ecosystem Delivery Importance) and Water Physical Risk using a Geographic Information System (%u201cGIS%u201d). No current or potential biodiversity risks were identified during the assessment.ESR ANZ%u2019s Woody Meadows initiative at select properties across Melbourne, Australia