ESR SR 2019 EN

LEADERSHIP MESSAGE Welcome to ESR’s first sustainability report in which we celebrate the opportunity to shine a light on what sets us apart as the leading developer and manager of modern, state-of-the-art, focused and integrated logistics real estate platforms in the Asia Pacific region. 2019 was a transformational year for ESR. In addition to completing our IPO, we have cemented our market leading position through expansion of our presence in six core markets: China, Japan, South Korea, Singapore, Australia and India. To achieve this success in spite of a generally challenging geopolitical environment is remarkable. We extend our heartfelt appreciation to all stakeholders—our capital partners, employees, customers, suppliers and the local communities in which we operate—for your ongoing support. ESR’s scale, business model, and regional expertise, position us well to capitalise on strong secular trends in the Asia Pacific region, including continued growth of e-commerce and a superior risk/reward proposition for the logistics sector. Over the past year, we have welcomed 216 new employees to our expanding pan-regional team. During this growth phase of our business, we are focused on building capacity by combining our skills and experiences from each market to apply best practices across our combined asset base. UNITING BEHIND COMMON VALUES It is of utmost importance that we provide clear and unambiguous communication to our workforce and business partners about our commitment to upholding ESR’s ethical, legal and compliance standards. The value we place on honesty, transparency, integrity and fair treatment in all aspects of our operations and decision making is reflected in ESR’s Code of Conduct and Ethics, Group Human Resources Policy and other Group policies. We recognise and embrace the benefits of diversity, as reflected in the composition of our newly established team at Hong Kong Headquarters where women constitute 62% of employees. As part of our commitment to providing equal opportunities, we also adopted a Board Diversity Policy in November 2019. In recent months, we have implemented a Group-wide risk management system and initiated a process for screening our supply chain and customer base taking into account Environmental, Social and Governance (ESG) risks. In response to local regulatory requirements, ESR Australia is leading the Group on development and implementation of a new Modern Slavery Policy, which seeks to eradicate the practice of all forms of modern slavery, including forced labour and child labour throughout our value chain. RESPONDING TO LOCAL NEEDS The driving force for continual innovation in our business stems from our highly-experienced teams in all markets, which are sensitive and adaptive to local needs. In Japan, for example, we made an early push into renewable energy by installing roof-top solar systems to make the most of regulatory incentives provided by the government’s Feed- In-Tariff (FIT) scheme. Recognising that working mothers are underutilised in the labour force, we introduced day care facilities as a standard provision in our larger distribution centres. To ensure we remain ahead of the curve, our Future Solutions Group is working on adapting new technologies such as autonomous transportation and drones to our facilities and services. It is always rewarding when, as developers, we have control over the design, construction and management our properties to optimise sustainable development impacts over the long term. India represents an exciting new frontier for our business, where we are developing logistics parks on green field sites in suburban areas. In this environment, we enjoy the advantage of starting from a clean slate to apply the best solutions, such as roofs designed to withstand the additional weight of utility scale roof-top solar systems and warehouse grids that accommodate robotics. Nanko Distribution Centre I, Osaka, Japan 1 Focused Environmental, Social and Governance Report