ESR SR 2019 EN

DEFINING OUR VALUE PROPOSITION In 2019, we adopted our Group Sustainability Policy and elaborated on our sustainability strategy. These initiatives build on a strong base of best practices from across the Group. In South Korea, for example, the recent attainment of WELL Gold certification for our flagship development, Bucheon Logistics Park, exemplifies our approach to creating human-centric places by incorporating a range of building design and programming features that improve the workplace environment. We recognise that ESG performance is of key interest to our stakeholders, including capital partners and customers who represent a broader movement towards greater transparency and accountability on environmental and social matters. The trend throughout our leasing portfolio is to move away from traditional manufacturing and industrial tenants in favour of high-tech logistics and data centres. These customers, who prioritise attractive working environments and eco-efficiency, are helping to drive sustainability in our operations through their leasing requirements. BUILT TO LAST AND HERE TO STAY We acknowledge that climate change poses significant risks for sustainable development of our business due to the impact of global warming and acute effects from extreme weather events. With its arid environment and recent experience of devastating wild fires, Australia is at the forefront of the global climate crisis. In this market, we use a climate risk model to inform our buy or sell decisions, and we are embarking on a climate impact study that will help shape the Group’s approach to climate adaptation throughout the Asia Pacific region. As we go to press with this report, we are closely monitoring development of the COVID-19 situation, which has impacted many people’s personal and professional lives in an imminent way over the past few months. Our Business Continuity Plans are in place and we are implementing protective and preventive measures to minimise impacts on our business. As we continue to prioritise the wellbeing and safety of our stakeholders above all else, our workforce is pulling together during this challenging time. We expect to emerge from this experience as an even stronger and more adaptable organisation. Thank you for your continued support. Jinchu Shen and Stuart Gibson, Co-founders & Co-CEOs ESR Ichikawa Distribution Centre, Japan features an impressive “green wall” that acts as a sound-proofing barrier and helps to reduce urban heat-island effect while cleaning the air of pollutants and dust. 2 ESR Annual Report 2019 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT