ESR ESG 2020 - EN

Building for the New Economy 30 Environmental, Social and Governance Report 2020 FOCUS ON THIRD-PARTY COMPLIANCE In 2020, our Group Compliance function worked with colleagues in all local offices to ensure smooth implementation of a new proprietary software and third-party due diligence service platform called ComplianceDesktop® licensed by The Red Flag Group, a Refinitiv company. Third-party risk includes anything that could expose the Group to threats and risks through engagement with third parties, including bribery and corruption, modern slavery, environmental crime, wildlife trafficking and conflict minerals. Our enhanced Third-Party Due Diligence workflow improves risk management by providing complete transparency over the compliance status of vendors, contractors and other suppliers, as well as capital partners and tenants. • 3,716 third parties screened • 214 ‘hits’ • 67 third parties underwent further investigation by ESR local offices • 100% resolution rate • Implementation of automated Third-Party Due Diligence workflow • Training of responsible persons, business unit managers and Legal and Compliance teams • Successful roll-out of ESR ComplianceDesktop® across 8 markets Phase 1: Remediation (completed in 2019) Phase 2: Automation (achieved September — November, 2020) Automated Third-Party Due Diligence Workflow Pre-due diligence screening Due Diligence Investigation Post-due diligence monitoring • Data collection and automated screening of responses from third parties • Responsibility of Business Unit Managers • Due Diligence reports from RedFlag Group • Initiated and overseen by Legal and Compliance team • Monitoring via IntegraWatch • Approval of third parties subject to renewal every 24 months Key Performance Indicators • Antitrust & corruption • Cybersecurity & Business stability • Employment, Safety and Reputation • Environment and Governance 4 Risk Categories 23 Specific risk factors assessed Australia 2,479 Hong Kong 69 Japan 293 Singapore 91 China 784 India 231 South Korea 71 Indonesia 7 4,025 Third parties by geographic location