ESG PERFORMANCE PILLAR 2 PROPERTY PORTFOLIO This pillar focuses on environmental impacts within ESR’s control or significant influence arising from the design, construction, maintenance and daily operations of our assets. Focus Areas Targets Status Sustainable & Efficient Operations Striving for continuous improvement by always doing more with less. 50% increase in solar power generation capacity We must add about 3.5MW on average each year over the next five years in order to exceed 52MW of solar power generation capacity (a 50% increase) by 2025. We were able to achieve our annual goal at the end of 2021, as the total installed roof-top solar capacity across all markets was 39.4 MW, which increased by 4.4MW. 20% reduction in energy consumption intensity During the past year, several assets were selected to undergo asset enhancement initiatives in consideration to improve energy intensity. In addition, the Group began the study of a decarbonisation plan which will provide the long-term path to achieve further reduction measures. Sustainable Building Certifications Taking our commitment to sustainability one step further by obtaining globally recognised assurance with positive social and environmental impacts. 50% of our portfolio to obtain Sustainable Building Certifications 20% of GFA completed in 2021 has been certified by recognised sustainable building standards or the certification process is currently underway. The details of all green certifications obtained in 2021 can be found in the subsequent page under Sustainable Design-Build. Climate Change Resilience Managing business risks and opportunities from climate change. Alignment with Recommendations from the Taskforce on Climate-related Financial Disclosures (TCFD) MSCI’s Real Estate VaR has been utilised by ESR in identifying climate related risks and opportunities by measuring the current and future costs of climate change and the global warming impact on the asset portfolio. The asset management process will strategically be adapted to address the risks most relevant to ESR. Flexible & Adaptable Properties Optimising our facilities to enhance usability, accessibility, comfort and aesthetics. Design, construction and maintenance approaches to reduce material degradation ESR has continued to design and build properties with accessibility and adaptability in mind. Included in our assets is the Bucheon Logistics Park under our Korea portfolio that has excellent connectivity to Greater Seoul and major transport infrastructures as well as stateof-the-art design and employee amenity roof space. For our Japan assets, we have the Yokohama Sachiura Distribution Centre 1 located in Yokohama City with relaxing lounges, retail shops, sky decks and children’s day care centres known as BARNKLÜBBS provided to our tenants. Strategic Locations Optimising trade and distribution logistics for the 21st century economy. Building and expanding modern logistics facilities in key locations R E A C H I N G N E W H E I G H T S 30 ESR STANDALONE FY2021 STRATEGIC REPORT
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