Reflecting on the past year, ESR-REIT is proud to share the progress made and achievements attained. These milestones demonstrate ESR-REIT’s commitment to assimilate ESG objectives into the way we operate, to enhance our value proposition to investors and the communities we serve.

Enhancing climate risk management

Since FY2024, we have established a Board Sustainability Committee (“BSC”) with subject matter expertise on sustainability risk management. This provides guidance for the business amidst more stringent reporting and risk management expectations. As a listed company, ESR-REIT is required to incorporate climate-related requirements from the IFRS Sustainability Disclosure Standards. This builds on our past TCFD assessment to provide more granular information on our governance oversight and financial materiality of sustainability. We have started modelling the impact of our material physical and transition risks that are most significant to the company’s financial performance. The findings provide insights into our operational resilience, prioritisation and planning, contributing to a more holistic management of our portfolio. Moving forward, we will gradually incorporate more disclosures relating to the relevant GHG emissions in accordance with the IFRS climate-related requirements.

Expanding and implementing our decarbonisation roadmap

FY2024 marked the development of the first decarbonisation roadmap for our Singapore portfolio. It provided clarity on the assets’ sustainability performance and informed the mitigation actions required to align with our targets. Building on this effort, we are developing similar roadmaps for our Australia and Japan portfolios tailored to local context. In Singapore, we will be focusing on attaining Green Building Certifications, enhancing energy efficiency and expanding our renewable energy programme. We have also started building our Scope 3 inventory, prioritising the calculation of five categories that are most material to our operations.

Strengthening business resilience

Our targets need to reflect the expanded portfolio from our merger with ARA LOGOS Logistics Trust. We recalibrated our sustainability targets to set more ambitious goals for those that have been achieved, and to ensure continued relevance of existing ones. This includes aligning with ESR Group’s Net Zero Carbon commitments and charting out interim reduction targets alongside improvements in data collection. Our continued progress is evident through our fourth year of participation in GRESB Real Estate Assessment, scoring 73 points and maintaining our two-star rating from 2023.

With increased maturity in reporting our sustainability-related data, we intend to leverage technology to streamline performance tracking and disclosures. In the coming years, we are looking to onboard data management platforms and install smart meters across our properties.

Our sustainability efforts are aligned with our mission to deliver stable and long-term value for our stakeholders and Unitholders.