ESR SR 2019 EN

WHAT WE DO HOW WE DO IT KEY PROCESSES Development Featuring an end-to-end integrated suite of technical capabilities and services, our development platform covers every stage of the development cycle from land sourcing and design through to construction and leasing. Fund Management We manage a broad range of funds and investment vehicles with interests in a portfolio of premium logistics properties at various stages of the property life cycle. Investment Our investments include completed properties held on our balance sheet, co-investments in funds and investment vehicles as well as public REITs that we manage. Policies and Procedures Our Group Sustainability Policy outlines how we integrate ESG considerations into all aspects of our business. Complemented by our full suite of corporate policies, codes and practices, it sets out the direction of consensus-building for continual improvement in sustainability performance across the Group. Responsibility Our ESR Sustainability Committee is made up of senior representatives from key departments and regions. It is chaired by the ESG Officer and reports to the Executive Committee. The Committee oversees our progress toward achieving our sustainability vision and strategy, and ensures that we meet our commitments and adhere to corporate policies and practices. Accountability We participate in and actively support sustainability certifications, benchmarks and surveys so that our customers, investors and other Key Stakeholders can make informed assessments about our sustainability performance. Feasibility Study, Transaction Due Diligence Performance Monitoring & Reporting Investment Identification Investment Decisions Permit Approvals Asset Development Asset Management ESG features at the very earliest stages of investment identification. We conduct feasibility studies with reference to stakeholder interests as well specific ESG Due Diligence considerations. At the investment stage, we make decisions taking into account financial and non-financial risks, including climate risk. During asset development, we appoint contractors in accordance with our sustainable development objectives and strive to achieve local and internationally recognised standards for our buildings. In all local offices, our leadership teams are setting goals and monitoring performance in order to facilitate meaningful reporting and disclosure. INTEGRATING SUSTAINABILITY INTO OUR DEVELOPMENT CYCLE At ESR, we aspire to play an integral role in creating the backbone for 21st century commerce across the Asia Pacific region. Our Sustainability Mission We are committed to integrating Environmental, Social and Governance (ESG) considerations across the logistics real estate development cycle of our activities and in our diligence, transparency and accountability processes. We define “sustainability” in terms of integrating ESG considerations into our business activities with a view to managing scarce natural resources, looking after the health, safety and wellbeing of our stakeholders, and ensuring effective corporate governance while striving to maintain positive financial returns. 4 ESR Annual Report 2019 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT