ESR SR 2019 EN

Property Portfolio ESR demonstrates environmental stewardship by developing and maintaining sustainable and efficient buildings. We optimise the sustainability features of new and existing logistics facilities through green design initiatives. Our properties are positioned strategically to minimise impacts on land use change and biodiversity, while providing sustainable development opportunities for local communities. Sustainable & Efficient Operations Across our operations, we focus on continuous improvement by always striving to do more with less. Our goal is to develop and manage energy and resource-efficient buildings. Through innovations like energy-efficient lighting, water management, waste recycling and roof-mounted solar panels, we are able to reduce operating costs for our customers as well as our own impacts on the environment. In the aftermath of the Fukushima nuclear disaster in 2011, ESR made energy sustainability a priority for our Japan portfolio by aggressively developing rooftop solar plants under the Japan Government’s Feed-In Tariff (FIT) Solar Program. Securing project finance for rooftop solar systems in this market has been a major challenge because roof rights often fall short of the compliance standards adopted by funds outside of Japan. Solar power generation in 2019 Energy-efficient lighting Opportunities to implement design improvements in our logistics facilities are constrained when we are not the original developer, but it is still possible to make a difference. For instance, ESR-REIT Singapore has achieved energy savings through a light-fitting replacement programme in 60% of its directly-managed portfolio. Similar initiatives are in progress in the remainder of its properties. New construction projects and refurbishments The selection of mechanical, electrical, plumbing (MEP) systems and equipment plays a crucial role in determining our buildings’ energy and water performance. We equip our new developments with resource-efficient technology such as LED lighting, comprehensive waste water and waste management systems, expansive green areas, and, wherever possible, rooftop solar panels. Considerations that feature in our approach • Energy-related features (site conditions, orientation, insulation, lighting and thermal comfort range etc.) • Water-related features (indoor, outdoor and process demand, supply sources etc.) 3 Integrative Design 1 Site selection 2 Owner Program Requirements and Basis of Design • Connectivity • Enhancement or remediation of brownfield areas • Avoidance of environmentally sensitive areas • Compliance with governing codes and legislation • Adoption of green building standards We also emphasise procurement of materials sourced in a responsible way in order to have less impact on the environment and provide healthy indoor spaces for our occupants. In Japan, we have a robust pipeline of rooftop solar power initiatives providing a total of 50MW of clean energy installed capacity. We aspire to become the first logistics fund in Japan to operate grid- independent clean energy distribution centers. In Australia, we have installed energy-efficient lighting in 12 properties, representing 23% of our portfolio by GFA. CHINA 4 assets (316,000 GFA) 5 GJ JAPAN 13 assets (1.15 M GFA) 18 GJ SOUTH KOREA 2 assets (350,000 GFA) 1 GJ ESR-REIT SINGAPORE 5 assets (142,000 GFA) 1 GJ 15 Focused Environmental, Social and Governance Report