Industrials REIT Limited

Climate Impact & Sustainability Data (2021-04 to 2022-03, 2023)

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:1694 tCO2e/year (location-based)

Scope 1 Emissions:9 tCO2e/year

Scope 2 Emissions:53 tCO2e/year

Scope 3 Emissions:1641 tCO2e/year

Renewable Energy Share:67%

Total Energy Consumption:14,818 MWh/year

Water Consumption:21,566 m3/year

Waste Generated:Not disclosed

Carbon Intensity:0.004 tCO2e/m2 (location-based)

ESG Focus Areas

Climate Change
Energy Efficiency
ESG Governance
Stakeholder Engagement
Employee Wellbeing

Environmental Achievements

67% of total electricity consumption across the portfolio came from renewable sources
Undertook an EPC upgrade assessment to understand the cost of compliance with future EPC regulations.
Reported MLI portfolio’s average EPC rating as a business KPI for the first time.
Implemented ESG acquisition criteria to ensure building a resilient portfolio.
Implemented an EPC review to establish anticipated costs to enhance portfolio in line with future MEES ratings.

Social Achievements

Developed a hybrid working model
Launched bi-annual engagement sessions with a Non-Executive Director for employee engagement.
Updated policies on hybrid working, flexible working, adoption leave, maternity and paternity leave and parental leave.
Supported Dementia UK and The Wellspring charities.
Offered four half-days per calendar year of paid time off for employee volunteering.

Governance Achievements

Established an enhanced ESG governance model with an ESG Steering Committee.
Board oversight of climate-related risks and opportunities through the Audit and Risk Committee and Social & Ethics Committee.
Integrated climate-related risks and opportunities into core business areas.
Annual reporting of ESG in line with SECR and TCFD disclosure requirements.
Received awards for disclosure in line with EPRA Sustainability Best Practices Recommendations.

Climate Goals & Targets

Long-term Goals:

Not disclosed

Medium-term Goals:

Establish Near-Term Science-Based Targets (validated by SBTi within 24 months).
Continue to analyse and improve pathways for managing climate change across the portfolio.
Continue to integrate sustainability criteria into lease clauses.
Investigate pathways to strengthen engagement with customers and local communities.

Short-term Goals:

Achieve an EPC rating of at least C by 2027 for all assets.
Further refine ESG strategy based on stakeholder concerns.

Environmental Challenges

Rise in regulations and pressure to disclose further on environmental performance posing costs and risks to assets.
Environmental performance requirements of premium-listed companies rising, potentially influencing access to capital and investor relations.
Potential failure to meet stakeholder expectations on emissions reduction and ESG performance.
Customers with significant carbon footprints jeopardizing the ability to meet performance targets.
Increasing intensity and frequency of floods and storms potentially damaging assets and disrupting business continuity.

Mitigation Strategies

Working towards improved EPC ratings and continuously monitoring and reviewing legal requirements.
Actively considering all available opportunities in the market for financing.
Developing metrics to track and communicate key performance and progress towards targets.
Implementing green solutions to facilitate low-carbon performance.
Conducting customer engagement surveys to understand needs and enhance engagement programs.
Undertaking environmental surveys and flood assessments at the point of acquisition and having insurance on assets.
Collaborating with local authorities to ensure mitigating controls are in place where perceived flood risks exist.
Developing and evaluating more sustainable solutions to improve energy efficiency of buildings.
Embedding ESG considerations into day-to-day business.
Considering climate-related risks and opportunities in the investment value chain.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

Increasingly considering climate-related risks and opportunities in the investment value chain as part of day-to-day operations.

Climate-Related Risks & Opportunities

Physical Risks

Increasing intensity and frequency of floods and storms

Transition Risks

Policy and Regulations
Market
Reputation
Customer Carbon Footprints

Opportunities

On-site solar panels for energy security, cost reduction, and revenue generation.
Energy efficiency projects for GHG emission reduction and financial gain.
Green finance and preferential borrowing conditions.
Offering low-emission products and services to help customers decarbonize.

Reporting Standards

Frameworks Used: TCFD, GRI Standards, EPRA Sustainability Best Practices Recommendations, SECR

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

Not disclosed

Not disclosed

Sustainable Products & Innovation

LED lighting
Solar panels
Air source heat pumps

Awards & Recognition

Most Improved award for disclosure in line with EPRA Sustainability Best Practices Recommendations
Bronze award from EPRA for sustainability reporting

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:2500 tCO2e (Location-Based) / 2285 tCO2e (Market-Based)

Scope 1 Emissions:398.98 tCO2e

Scope 2 Emissions:228.90 tCO2e

Scope 3 Emissions:1872.49 tCO2e

Renewable Energy Share:100% (electricity)

Total Energy Consumption:12,781,108 kWh

Water Consumption:11,543.96 m3

Waste Generated:267 tons

Carbon Intensity:0.0008 tCO2e/m2/yr (Scope 1 & 2), 0.0026 tCO2e/m2/yr (Scope 3)