Sentral REIT
Climate Impact & Sustainability Data (2018, 2020)
Reporting Period: 2018
Environmental Metrics
Water Consumption:172,405 m3
ESG Focus Areas
- Governance
- Talent Attraction and Retention
- Turnover Rate of Senior Management
- Health, Hygiene & Safety Protection of Tenants, Visitors and Local Communities
- Employee Capacity Building
- Quality of Assets and Services
- Water Management
- Anti-Corruption
Environmental Achievements
- Exceeded target in reducing aggregate water consumption
- Fully installed Rainwater Harvesting System (RWHS) in Platinum Sentral
- Proposed installation of RWHS in Quill Building 2
Social Achievements
- 17 employees received an average of 25.3 hours of training
- Increased maternity and paternity benefits
- Implemented various employee well-being initiatives (group term life insurance, disability and invalidity insurance coverage, parental leave, outpatient and inpatient medical benefits)
Governance Achievements
- Inserted anti-corruption clause in tenancy and service agreements
- No known incidents of non-compliances for the past two years
- Developed a compliance checklist and engaged an external consultant as an internal auditor
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Achieve a minimum of 15 GRI points for FY 2018
- Incorporate anti-child labour, human rights and anti-slavery as a clause in all supplier service agreements
- Develop an emergency response plan
Environmental Challenges
- Water consumption
- Maintaining high standards of service from service contractors
- Addressing tenant complaints
- Ensuring compliance with employment regulations
Mitigation Strategies
- Regular checks on water equipment, replacement of old pipes, installation of self-closing taps, repair of leaky pipes
- Standard Performance Appraisal for service contractors, action plans for improvement
- Tenant Complaint Form System, monthly discussions on operational issues
- Internal review process to ensure compliance with safe work procedures, regular inspections of building facilities
Supply Chain Management
Responsible Procurement
- Anti-corruption clause in all agreements
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI
Certifications: Green Building Index (GBI)
Awards & Recognition
- Best of the Breeds REITs Award 2018
Reporting Period: 2020
Environmental Metrics
Total Carbon Emissions:14,514 tonnes
Total Energy Consumption:24,809,793 kWh
Water Consumption:142,491 m3
ESG Focus Areas
- Economic
- Environmental
- Social
- Governance
Environmental Achievements
- 15% reduction in GHG emissions
- 15% reduction in energy consumption
- 11% reduction in water consumption
Social Achievements
- Donation of RM177,800.00 to Grace Community Services for food packs for 230 families
- Contribution of 150-180 buns per week to Pit Stop Community Café for street communities
Governance Achievements
- Launched Anti-Bribery and Corruption Policy
- Zero fines pertaining to non-compliance
Climate Goals & Targets
Environmental Challenges
- COVID-19 pandemic impacting operations and earnings
- Weak business sentiment and cautious outlook on business expansion
- Oversupply in Klang Valley office market
- Weaker absorption rates in office space
Mitigation Strategies
- Tenant assistance program (rebates, payment deferments)
- Focus on tenant retention and high WALE
- Cost optimization measures (restructuring borrowings, replacing auxiliary police services)
- Active leasing strategies targeting IT, oil & gas, e-commerce sectors
- Asset enhancement initiatives (refurbishments, improved safety measures)
Supply Chain Management
Supplier Audits: 100% of service providers underwent performance appraisal
Responsible Procurement
- Service Provider Pre-Qualification Policy
- Services Contractor Evaluation Policy
- Prioritization of local suppliers
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI Standards: Core Option, Bursa Securities’ Sustainability Reporting Guide (2nd edition), UN Sustainable Development Goals (SDGs) (planned for FY2021)
Awards & Recognition
- Best Chief Executive Officer for IR (Small Cap)
- Best IR Website (Small Cap) at the 10th Malaysian Investor Relations Award 2020