38 Environmental, Social and Governance Report 2022 PILLAR 2: PROPERTY PORTFOLIO We seek to align our climate-related risk disclosures based on recommendations outlined under the four key pillars of the TCFD Framework: Pillar — Recommended Disclosure Approach Governance The Board of Directors provides the overall stewardship and strategic direction on sustainability management, which includes climate change adaptation and resilience. Supported by the ESG Committee and the Group Leadership team, the Board ensures that material ESG issues, such as climate-related risk mitigation, are integrated within our business and oversees the delivery of ESG targets and performance. Through this strategic oversight, the Board and senior management assess ESR’s financial and non-financial performance resulting from climate-related impacts and make necessary transparent disclosures to create long-term sustained value for all our stakeholders. Strategy To alleviate climate-related impact on the business, we endeavour to manage climate-related risks and opportunities through strategic climate adaptation and mitigation plans. This includes optimising resource efficiency in our operations, obtaining green building certifications and ratings in our portfolio of real assets, transitioning to renewable energy sources, as well as incorporating low-carbon designs and solutions in our development projects. This forms part of our climate mitigation efforts to enhance the resilience of the business, assets and operations. Risk Management Evaluating climate-related risks and opportunities and the potential financial implications ensure the strength of our operations, while allowing us to identify strategic opportunities to deliver sustainable and climate-resilient products and solutions to our customers. Climate-related risks are incorporated into ESR’s overall Enterprise Risk Management (ERM) Framework as a key Tier 1 risk. Under this framework, the Group assesses and measures the impact and likelihood of climate-related risks as part of overall due diligence process in our business and investment decisions. Climate-related risk assessments, based on climate scenarios modelled after the IPCC pathways, are progressively carried out across our assets and projects to identify climate-related risks and opportunities and assess their impacts on the business. Metrics & Targets ESR has established climate-related metrics and targets with the associated monitoring measures in response to the risks and opportunities. With such metrics and targets in place, we are able to assess the progress of our efforts and build upon our existing goals to help guide and inform our climate change strategy, as part of the ESG 2025 Roadmap. Examples of metrics and targets at ESR include group-wide decarbonisation commitments aligned to global standards, as well as continuous improvements to the coverage, accuracy, quality and reliability of data to facilitate comprehensive and transparent reporting and disclosures aligned to the TCFD Framework. Climate Change Resilience
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