18 Environmental, Social and Governance Report 2022 PILLAR 1: HUMAN CENTRIC Stakeholder Engagement Stakeholder engagement is integral to the way we do business. We maintain close connections with our stakeholders, both internal and external, to achieve shared business goals that align with our core values. Constructive engagement and long-term relationships are integral to our business that enables us to pursue continuous improvement. We listen to and reflect upon the views of key stakeholder groups, consider the performance of our peers and keep abreast on the latest developments and technologies relevant to our industry to sustain our competitive advantage in the market. EMPLOYEES ESR values our workforce, as it is key to propelling the business forward and achieving major operational milestones. Our people have been and continue to be fundamental to the resilience and agility of the Group. Attracting and retaining the right talent is crucial to our continued success. Three out of the five focus areas in the Human Centric pillar of our ESG Framework address various aspects of human resource management, including Safety, Health & Well-being, Managing & Developing Talent and Diversity, Equity & Inclusion. We engage our employees through various channels — including Employee Engagement Surveys, myESR Intranet, Townhall sessions, Coffee and Learn sessions, In-Conversation sessions with our Group Co-founders and Co-CEOs and CSR initiatives with our senior management teams. TENANTS 3PL and e-Commerce businesses account for approximately 64% of our tenant base. The remainder comprises brick-and-mortar retailers, manufacturers, cold-chain logistics and others. The commonality of all of the highly valued tenants mentioned is the need to be closely connected to their customers in order to operate highly efficient supply chains. Our role is to provide sustainable and innovative solutions to enable our tenants to meet this need. Property managers at ESR are responsible for upholding the highest standards expected of our facilities throughout the region. They engage tenants and liaise closely with vendors in our managed properties to oversee security, cleaning, repairs and other maintenance. In addition to routine meetings, we also obtain tenant feedback through surveys, 24/7 call centres to address their needs and hosting community events. All asset managers are equipped with operational expertise with their individual performance linked to sustainability indicators of their buildings, which they work closely with the tenants to achieve such objectives. Other ongoing engagement initiatives were carried out during the year including our continued partnership with Healthy Heads in Trucks & Sheds (under Pillar 1: Human Centric p.20), Lunar New Year activities for office tenants, festival social activities (i.e. Mid-Autumn Festival and International Women’s Day), the launch of a food truck service, regular celebrations at park premises and conducting third-party tenant satisfaction surveys. INVESTORS AND CAPITAL PARTNERS ESR has developed longstanding relationships with several of the world’s largest and leading pension and sovereign wealth funds. We cultivate strong and sustainable relationships with our investors and capital partners, including shareholders, analysts and fund managers, by providing regular and relevant information on corporate and business developments. We also recognise the increasing demands from these stakeholders for comprehensive disclosure on ESG-related risks and opportunities, particularly those related to climate change. Apart from regular updates via our press releases, ESR’s website and social media, ESG and Annual Reports and our participation in globally recognised ESG benchmarks such as GRESB (Global Real Estate Sustainability Benchmark), we have additional engagement channels such as investor meetings and roadshows, quarterly reporting updates, Annual General Meetings and announcements posted on The Stock Exchange of Hong Kong Limited. COMMUNITIES Contributing positively to the sustainable development of the communities is integral to our corporate vision. As part of our ESG Framework, we established a goal in creating a coordinated Group-wide Community Engagement Programme that will tie various initiatives from our local offices together into a coherent approach. SUPPLIERS AND CONTRACTORS ESR seeks to engage and work with our suppliers and contractors (collectively referred to as “Suppliers”) to adhere to high standards of ESG for their products and services. Specifically, we expect our Suppliers to uphold business integrity principles including business conduct, fair competition and confidentiality, amongst other factors. On social related areas, our Suppliers are also expected to respect basic human rights, prohibit modern slavery and discrimination and uphold health and safety standards. On the environment front, our Suppliers should comply with relevant environmental laws and regulations and minimise the environmental impact from their activities. REGULATORS The Group is subject to the applicable laws and regulations of the various jurisdictions where we operate and robust policies and procedures are put in place to facilitate the compliance with those regulations. We do not tolerate any breach in regulatory compliance and work closely with external legal professionals and internal compliance teams on legal and regulatory matters. Furthermore, the Group engages regulators to stay informed of the latest developments on regulatory issues, and implements regular compliance training and updates to the employees.
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