ESR SR 2019 EN

Corporate Governance ESR is built on a solid foundation of Core Values, which include Integrity & Respect. We take our ethical obligations seriously and expect our stakeholders to do the same. We have robust due diligence, human resources, asset development and asset management processes and procedures in place to manage risk and create value for our stakeholders. There are five key elements to our Corporate Governance Structure, which starts with the Board—our highest governance body—and cascades throughout our network of offices and business relationships. Five Elements of our Corporate Governance Structure ESR Group policies and guidelines set the tone and direction for a unified approach to Governance while providing flexibility for our regional offices to adapt and amend their implementation in accordance with local circumstances, laws and regulations. During the year, our Australian operations responded proactively to developments in their local market by adopting additional measures on data privacy and anti-slavery. INTERNAL CONTROLS • All employees receive training on Group and regional office policies and guidelines appropriate to their roles and locations • We review our internal control measures on a continuing basis • Group and local office policies and guidelines are reviewed and updated regularly to reflect operational needs BOARD OVERSIGHT • Our Board of Directors is responsible for and has general powers over management and conduct of our business • The Board oversees overall risk control; any significant business decisions involving material risks are reviewed, analysed and approved at Board level CORPORATE CULTURE • We foster a corporate culture of responsibility and integrity • Employees are encouraged and supported to speak up if they have concerns • We have zero tolerance for misconduct and undertake disciplinary action, as appropriate INDEPENDENT THIRD PARTIES • We engage qualified, reputable and independent third parties to assist us in managing our operational risks; as required • We minimise the risk of conflict of interest and fraud with support of independent third parties such as fund administrators IT PLATFORM • ComplySci is our new online compliance management platform being rolled out across all offices; it automates manual compliance processes and allows us to track performance more efficiently • We implement an e-learning platform set up by Thomson Reuters 21 Focused Environmental, Social and Governance Report