32 Environmental, Social and Governance Report 2022 PILLAR 2: PROPERTY PORTFOLIO RENEWABLE ENERGY As part of ESR’s commitment to decarbonise our property portfolio and transition to a low-carbon economy, the Group adopts a carbon mitigation hierarchy approach. This approach prioritises carbon avoidance through low-carbon design and construction, and achieves energy efficiency via the enhancement and optimisation of asset operations. These efforts are also complemented with the use of renewable energy from sources such as solar or hydrogen to further reduce emissions. Our rooftop solar power generation capacity has increased across all markets and we continue to explore other renewable energy sources. Across the region, ESR is installing close to 100 MW of rooftop solar capacity, including projects planned for first half of 2023. Investments in rooftop solar power in our major markets as at 31 December 2022 are shown below: Rooftop solar installed capacity Solar power generated In MW In ‘000 GJ ESR Australia* 4.2 — China 3.2 2.2 India* 1.5 — Japan 27.9 133.5 Singapore 16.3 33.7 South Korea 0.5 1.2 ARA 2.0 7.2 LOGOS 29.4 136.3 Total 85.0 314.1 * Australia and India are working towards implementing a system to measure, track and collect solar power generation data from the various rooftop solar systems of varying capabilities, which are controlled by different parties. Sustainable & Efficient Operations Over 314,000 GJ of solar power was generated from the rooftops of the enlarged Group’s portfolio of assets in 2022. We have set out ambitious energy reduction targets for our properties in various regions according to local operating conditions. For instance, we aim to meet 100% of our energy needs from renewables by sourcing wind and hydro generated power to supplement the current rooftop solar power supply for our Australian properties. ESR Australia also purchased renewable energy from Green Power, a government-managed programme, to power assets using solely renewable sources. In 2022, over 60% of electricity consumption from about half of ESR Australia’s reporting assets was procured from renewable energy sources. As we further our decarbonisation efforts to become a low-carbon organisation, we continue to strengthen our capabilities with the appointment of a Senior Director of Operations, Renewables, in charge of overseeing renewable initiatives across the enlarged Group. In addition, a Head of Renewables of our logistics arm, LOGOS was appointed to drive the Group’s integrated efforts in pursuing opportunities in renewables and clean energy solutions. In 2022, we continued to accelerate our progress in lowering our emissions through synergistic partnerships with like-minded partners. LOGOS partnered with Solar Bay, an Australasian renewable impact fund, to develop Australia’s largest rooftop solar systems at the Moorebank Logistics Park, specialising in warehousing and auxiliary services. Equipped with 60 MW of rooftop solar capacity and 150 MWh of battery energy storage upon completion, the intermodal freight facility has megawatt scale electric vehicle/ truck fast chargers, which are supported by the high voltage network connection from the rooftop solar and battery energy storage system. ESR Nanko Distribution Centre 1 & 2, Japan
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