43 Environmental, Social and Governance Report 2022 PILLAR 3: CORPORATE PERFORMANCE Corporate Performance The third Pillar of our ESG Framework: Corporate Performance focuses on the corporate performance of our business, in the areas of corporate governance, risk management, responsible investment, and disclosure and reporting. Underpinned by our core value of excellence, ESR is committed to embracing the cornerstones of corporate governance on accountability, transparency, fairness and integrity. As we continue to enhance synergies as an enlarged Group, we strive to create greater value for our stakeholders through our robust governance structure, risk management framework and proactive disclosure practices. Focus Areas1 2025 Targets & Goals Status Corporate Governance Maintain a strong Corporate Governance culture • Achieved 100% new employee endorsement on ESR Group’s Code of Conduct & Business Ethics. • Launched a series of comprehensive compliance online modules for all staff on topics related to ethics, conflict of interest, anti-money laundering, risk management and sustainability. Risk Management 100% of employees receive annual training • Completed the implementation of the Counterparty Due Diligence workflow and 100% of employees were provided with training on compliance and cybersecurity related courses. Responsible Investment Commit to the UN PRI as a signatory and adopt its investment and asset management policies • ESR became a signatory to the United Nations-supported Principles for Responsible Investment (UN PRI) in June 2022, reinforcing our commitment to integrating ESG issues into our investment and asset management processes across the Group. • Secured the fifth Sustainability-Linked Loan (SLL) in 2022, with a total of approximately US$3 billion SLLs closed to date. Disclosure & Reporting 3-Star GRESB rating average – The Global ESG Benchmark for Real Assets • 37 private funds and REITs participated in the 2022 GRESB Real Estate Assessment, achieving an average rating of 3.2 Green Stars across the enlarged Group. This includes 1 Global Sector Leader and 4 Regional Sector Leaders amongst 11 ESR entities with 5-Green Star ratings. Refer to the ESG Data Summary page 71 to 73 more details. • ESR has reaffirmed the MSCI ESG Rating of “A” for a second consecutive year and achieved an ESG risk rating of “Low Risk” by Sustainalytics. 1 Supply Chain Management is a new focus area for 2023 onwards.
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