31 Environmental, Social and Governance Report 2022 PILLAR 2: PROPERTY PORTFOLIO ESR is committed to environmental stewardship by developing and maintaining sustainable and efficient buildings. This is achieved through reducing energy consumption and emissions in construction and operations, generating renewable energy in our buildings, and adopting renewable energy solutions as part of our decarbonisation efforts. To enhance our environmental performance, sustainability is embedded throughout the life cycle of our buildings. We incorporate sustainable design features, use environmentally friendly materials, implement low-carbon construction processes and optimise energy efficiency of our operations. Collaborating with tenants to share and track environmental data is key to identifying energy efficiency opportunities and facilitating data transparency and reporting. To extend our partnerships with tenants on green practices, we are committed to incorporate green clauses and provisions in new and renewal leases progressively. These green leases form part of our overall tenant engagement strategy to work with tenants to achieve long-term sustainable goals and efficient operations at all our assets. There are four significant attributes that we emphasise in our property portfolio, namely: Greenhouse Gas Emissions Reduction Water Conservation Sustainable Materials Built to Last • Using on-site renewable energy sources such as solar/ photovoltaic, biofuels, geothermal, hydro, or wind • Using renewable grids with lowcarbon emissions, if available • Enabling thermal temperature tailoring in 50% or more of individual occupant spaces • Setting lighting control functions in 90% or more of the individual occupant spaces • Replacing traditional lighting with energy-saving alternatives (i.e., LEDs) • Using natural sunlight to illuminate building space (achieve 75% or more lighting in regularly occupied floor area) • Using self-contained hot water systems that achieve 85% or more efficiency • Managing cooling tower water to optimise recirculation cycles and reduce water consumption • Installing smart subsurface irrigation systems with soil moisture sensors that drip feed native plants • Obtaining green ratings for our amenities such as the Water Sense label (US EPA) and LEEDv4 (fixture and fitting code requirements) • Using recycled water such as treated wastewater and stormwater for non-potable applications • Partnering with local suppliers to minimise carbon footprint and support local businesses • Acquiring materials with green certifications such as Carpet and Rug Institute Green Label, FloorScore and legally harvested timber • Using recycled content in our construction sites and office spaces • Reducing the use of ambient concentrations of chemical contaminants • Constructing robust external walls that apply to up to two metres from the ground • Installing hard-wearing floors to allow for easy maintenance and washing • Applying impact protection features on doors and corridors to reduce wear and tear • Creating kerbs for protection of external walls in delivery and vehicle drop-off areas Sustainable & Efficient Operations
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