ESR ESG 2020 - EN

Building for the New Economy 12 Environmental, Social and Governance Report 2020 STAKEHOLDER ENGAGEMENT IS INTEGRAL TO THE WAY WE DO BUSINESS COVID-19 has highlighted the vulnerability of businesses and communities worldwide. We need resilient organisations with clear vision and purpose to take the lead on building back better. At ESR, we work closely with our stakeholders, both internal and external, to achieve shared business goals that align with our core values. Constructive engagement is integral to our daily business. In order to strive for continuous improvement, we must hear and reflect upon on the views of key stakeholder groups, consider the performance of our peers and keep up to date on the latest developments and technologies relevant to our industry. Employees Tenants Community Key Stakeholder Groups Investors Employees Times like these reinforce the fact that people are our most important asset. Our people have been fundamental to the Group’s resilience and agility during the pandemic. Attracting and retaining the right talent is key to our continued success. Three out of five focus areas in this pillar of our ESG framework address various aspects of human resource management, including Safety, Health & Well-being, Diversity & Inclusion and Managing & Developing Talent. Tenants 3PL and e-commerce businesses account for 64% of our tenant base. The remainder comprises brick-and-mortar retailers, manufacturers, cold-chain logistics and others. What all these highly-valued tenants have in common is the need to be closely connected to their customers in order to operate highly efficient supply chains. ESR’s role is to provide sustainable and innovative solutions. Our property managers are responsible for upholding the high standards expected of our facilities throughout the region. They engage with tenants and liaise closely with vendors in our managed properties to oversee security, cleaning, repairs and other maintenance. Shareholders, capital partners and investors ESR is fortunate to receive backing from some of the world’s preeminent investors such as APG, SK Holdings, JD.com, CPP Investments, Oxford Properties, PGGM and Ping An. We cultivate strong and sustainable relationships with our capital partners, including shareholders, investors, analysts and fund managers, by providing regular and relevant information on corporate and business developments. We also recognise increasing demands from this stakeholder group for comprehensive disclosure around ESG-related risks and opportunities, particularly those related to climate change. Community Contributing positively to sustainable development of local communities is integral to our corporate vision. As part of our ESG framework, we have set ourselves the goal of creating a coordinated, Group-wide Community Engagement Programme that will tie various initiatives from our local offices together into a coherent approach.