ESR ESG 2020 - EN

Building for the New Economy 18 Environmental, Social and Governance Report 2020 Focus Areas 2025 Targets Status Sustainable & Efficient Operations 50% increase in solar power generation capacity At the end of 2020, our total installed rooftop solar capacity across all markets was 35MW. We must add about 3.5MW on average each year over the next five years in order to exceed 52MW of solar power generation capacity (a 50% increase) by 2025. 20% reduction in energy consumption intensity Having established this ambitious Group-wide target, our local offices are working to identify and implement appropriate strategies in each market. In 2020, for example, ESR-REIT Singapore announced ambitious energy management targets for multi-tenanted buildings. Sustainable Building Certifications 50% of our portfolio to obtain Sustainable Building Certifications 70% of GFA completed in 2020 has been certified by recognised sustainable building standards or the certification process is underway. Climate Change Resilience Alignment with Recommendations from the Taskforce on Climate-related Financial Disclosures (TCFD) We have engaged MSCI to embark on a climate impact study that will assist us to formulate the Group’s strategic approach to climate adaptation moving forwards. Flexible & Adaptable Properties Design, construction and maintenance approaches to reduce material degradation Quantitative targets to be developed. Strategic Locations Building and expanding modern logistics facilities in key locations WE EMBRACE SMARTER WAYS TO REDUCE THE ENVIRONMENTAL IMPACT OF OUR PORTFOLIO. In order to continually improve the performance of our modern logistics facilities in accordance with our ESG Policy, we work closely with our customers, investors, contractors and local authorities to proactively review and implement the latest innovations in real asset design, construction and operations, internationally recognised sustainable design and construction standards. Site selection Owner programme requirements Integrative design Sustainable construction Continuous improvement • Enhanced connectivity • Remediation of brownfield sites • Avoidance of environmentally sensitive areas • Compliance with governing codes • Adoption of green building standards • Visual comfort & natural ventilation • Resource-efficient technologies • Sustainable materials • Resilience to wear and tear • Erosion and sediment control • Responsible waste management • ESR Future Solutions Group • Asset enhancement initiatives PROPERTY PORTFOLIO The second pillar of our ESG framework focuses on environmental impacts within ESR’s control or significant influence arising from design, construction, maintenance and daily operations of our assets.