ESR ESG 2020 - EN

Building for the New Economy 25 THE BEST IS YET TO COME The ESR Future Solutions Group (FSG) proactively identifies and evaluates technological, economic and societal changes in order to improve the logistics infrastructure and services we provide. We plan to adopt new technologies and building specifications throughout our portfolio in the next few years that will help to improve operational efficiencies for our tenants, allow for the implementation of more robotics and automation, electric (and later autonomous) vehicles, and big data analytics for streamlining stock management and deliveries. We anticipate the rollout of 5G wireless technology will enable rapid adoption by our tenants of these innovations. Robotics operating in highly-automated logistics facilities are already common in the operations of many 3PLs, e-commerce companies and other operators. This ranges from simpler robotics technology used to complement human activities to the fully-automated “dark warehouse” with little human activity. Autonomous vehicles and drones are already being tested in various markets. We have started a collaboration with VRCO, a UK Aerospace company, to design and demonstrate the world’s first cargo drone logistics facility at ESR Higashi Ogishima Distribution Centre, located in the Greater Tokyo Metropolitan Area.