ESR SR 2019 EN

Climate Change Resilience In some markets, we undertake comprehensive risk assessments to identify potential natural hazards for our properties, including threats of a geological origin (such as volcanic eruptions, earthquakes, tsunamis and landslides) as well as climatic or meteorological risks (such as floods, draught, typhoons or wild fires). We acknowledge that climate change poses significant risks for sustainable development of our business throughout the Asia Pacific region due to the impact of global warming and acute effects from extreme weather events. ESR supports the Paris Agreement, which aims to decarbonise the global economy by promoting clean technologies and less carbon-intensive products and services. This process will give rise to transition risks as well as opportunities for our sector. Adapting to Climate Risks and Opportunities With its arid environment and recent experience of devastating wild fires, Australia is at the forefront of the global climate change crisis. Our ESR Australia team is taking action by developing a climate risk assessment framework to help identify, evaluate and manage risks for our portfolio while capitalising on strategic opportunities to increase resilience and strengthen our business. The framework, which is anticipated to roll-out in mid- 2020, will make use of weather data, climate modelling and online mapping tools. It will be incorporated into our existing Environmental Management System to guide day-to-day asset and property management decisions and reporting, including investment selection, building design, construction and refurbishment. “ We view the Climate Risk Assessment framework as an important step for enhancing transparency and developing a robust in-house management system to address climate- related risks and build resiliency across our business. ” Robert Ewing, Head of Asset Management, ESR Australia 315 Cooper Street, Epping, Melbourne, Australia 18 ESR Annual Report 2019 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT