ESR Group Limited Annual Report 2022 23 Shaping a sustainable future We have made significant progress across the three key pillars under our ESG Framework — “Human Centric”, “Property Portfolio” and “Corporate Performance”. As an Enlarged Group, we are committed to drive best-in-class ESG practices as a unified platform for our stakeholders. To build a more inclusive and equitable workplace, we increased the proportion of women in senior management positions to 40%. We continued to foster a human centric environment in our design philosophy for our tenants, exemplified by the creation of nine BARNKLÜBB day-care centres at our distribution centres in Japan, to support employees and their families with greater flexibility and inclusiveness. In our commitment to health and safety, and well-being of our stakeholders, the Group worked closely with local authorities and industry bodies to maintain zero ESR workforce fatalities for our employees. On the environmental front, the Group has installed close to 100 MW of rooftop solar power capacity across our assets globally, in line with our ESG 2025 Roadmap to maximise onsite renewable energy generation and sources in the transition to a low carbon future. In Japan, ESR is the first real asset manager to work with Enerbank to issue Renewable Energy Certificates (“RECs”) to tenants from solar power generated from our assets’ rooftops. The Group also continues to pursue our target of obtaining sustainable building certificates for 50% of our portfolio, to enhance operational efficiency. In recognition of our ESG performance in various leading global sustainability benchmarks and rankings — the Group has attained outstanding results in the 2022 GRESB Assessment and achieved “A” in MSCI ESG Rating and “Low Risk” in Sustainalytics. Looking ahead While we remain cautious about the changing external environment, we are in a strong position to weather any unforeseen headwinds and capitalise on opportunities that may present themselves. ESR will continue to further strengthen our market-leading position in New Economy real estate and our REITs across APAC while starting to build up a scaled infrastructure and renewables platform. We remain focussed on accelerating our asset light trajectory, maintaining cost discipline which continues to drive fund management EBITDA margin improvement and further diversify our funding sources and lower our borrowing costs. In addition, our ambition is to push forward our ESG and sustainability efforts, embedding them in all aspects of our operations as we embark on our Group-wide ESG 2025 Roadmap to shape a low carbon and climate resilient future. We would like to thank our local management teams for their dedication and commitment in this incredible transformation of the Group, and our Board of Directors for their vision and guidance. In addition, we are grateful to our customers and investors for their trust in us as a Partner of Choice. STUART GIBSON and JINCHU SHEN Group Co-founders & Co-CEOs 22 March 2023 STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENT
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