Climate Change Data

Environmental Metrics

ESG Focus Areas

• Best in Class Real Estate
• Climate Change and the Environment
• Sustainable Community
• Educational Patronage

Environmental Achievements

• 53% decrease in single-use plastic bottles
• 200 trees planted and 100 biopori holes through BSD green festival.
• Green Building GHG emissions (3% decrease from 2018)
• Green Building Energy Consumption (4% decrease from 2018)
• Overall Municipal Water Intensity by GFA Occupied (5% decrease from 2018)
• Green Building Municipal Water Intensity by GFA Occupied (17% decrease from 2018)
• Green Building GHG Emissions Intensity by GFA Occupied (4% decrease from 2018)

Social Achievements

• 0 reported cases of fatalities or any work-related injuries in all our buildings under the Asset Management, Commercial and Retail & Hospitality Group Divisions
• Number of injuries for members of public: decreased from 19 in 2018 to 8 in 2019
• Number of dangerous occurrences: decreased 54% from 76 in 2018 to 35 in 2018
• 293 schools benefitted from Gerakan Sekolah Menyenangkan (GSM) activities
• 30 IT students graduated and employed from Techpolitan IT Programming Scholarship
• 1,200 students participated in Badminton scholarship program
• 6,923 students for BSD Knowledge House in 2019
• 3 renovated schools in Bekasi Regency
• 600 market managers and related sellers benefitted from Pasar Rakyat School
• 3 social healthcare service events benefiting 935 community members

Governance Achievements

• 0 reported cases of non-compliance concerning market communications and product information, health and safety impacts of BSDE’s product and services, all relevant social and economic laws and regulations, all relevant environmental laws and regulations
• 0 reported cases of corruption
• 0 Significant fines or non-monetary sanctions were imposed on SML

Climate Goals & Targets

Environmental Challenges

• Lack of awareness on the importance of green building development
• Reluctance among building owners to implement green buildings due to lack of regulation and incentives

Mitigation Strategies

• Engaging with regulatory authorities to improve green building regulations and promote incentives
• Implementing Green Habit program to encourage green habits among building occupants

Supply Chain Management

Responsible Procurement

• ISO 14001 certification for construction material suppliers
• Legal certification for wood suppliers
• Minimum percentage of recycled content in steel and cement/concrete

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core Option, 2016 SGX Sustainability Reporting Guide

Sustainable Products & Innovation

• Green Office Park
• The Breeze BSD City

Awards & Recognition

• FIABCI World Prix d’Excellence Awards 2019
• BCI Asia Awards 2019
• Property Guru Indonesia Property Awards 2019
• ASEAN Energy Award
• CECT Sustainability Award
• UN Global Compact Network Indonesia Most Committed New Member of the Year 2018

Environmental Metrics

ESG Focus Areas

• Best in Class Real Estate
• Climate Change & the Environment
• Sustainable Community
• Educational Patronage

Environmental Achievements

• 5% reduction in energy intensity in Green Buildings (2017 baseline)
• 3% reduction in energy intensity in High-Rise Buildings (2019 baseline)
• 11.39% electricity replacement efficiency rate from solar panels, generating more than 2.1 MWp of energy in 2021
• 7% decrease in emission intensity from 2020
• 13% decrease in water intensity from 2020
• 5,071m3 of rainwater collected and consumed across Green Office Buildings
• 357,580m3 of rainwater consumed in Palm Springs Golf & Country Club
• 348,371m3 of surface water consumed in Sedana Golf
• 525,936m3 of water recycled and reused (7% of total water consumption)

Social Achievements

• Supported Indonesia’s COVID-19 vaccination program, administering more than 161,000 vaccines across 41 vaccination centers
• Launched Kampung Mantul, a community development program focusing on food security and job creation, conducting 183 activities in 2021
• Provided computer programming and coding scholarships
• Training of MSME members at the SML UMKM Centre
• Provided beneficial training programs to improve MSME skills through Sekolah Pasar Rakyat

Governance Achievements

• Conducted Fraud Awareness e-Learning training for 178 department heads (97% participation rate)
• Zero reported incidents of corruption in 2021
• No legal cases regarding corruption brought against the Group or its subsidiaries

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on offline events and societal restrictions
• Indonesia's 18% solar energy average capacity factor compared with 24% in other countries
• Limited environmental awareness in local communities

Mitigation Strategies

• Revised targets for tree planting and biopori holes due to COVID-19 impact
• Expanded solar panel installation to other Green Buildings
• Collaborated with local government and food/environmental experts for Kampung Mantul program
• Provided subsidies and market opportunities through Modern Markets

Supply Chain Management

Responsible Procurement

• Stringent selection and tender process to obtain the best material vendors and contractors

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Sea-level rise

Transition Risks

• Changes in energy sources
• Government regulations

Opportunities

• Development of energy-efficient products
• Increased use of renewable energy

Reporting Standards

Frameworks Used: GRI Standards (Core Option), SGX listing requirements, TCFD (initial adoption)

Sustainable Products & Innovation

• Green Office Park buildings
• Use of recycled materials in concrete

Awards & Recognition

• 3G GLOBAL GOOD GOVERNANCE AWARDS 2021
• FIABCI WORLD PRIX D’EXCELLENCE AWARDS 2021
• PROPERTY GURU INDONESIA PROPERTY AWARDS 2021
• ASEAN ENERGY AWARDS 2021
• ENVIRONMENTAL, SOCIAL, AND GOVERNANCE DISCLOSURE AWARDS 2021

Environmental Metrics

ESG Focus Areas

• Best in Class Real Estate
• Climate Change & the Environment
• Sustainable Community
• Educational Patronage

Environmental Achievements

• 13% efficiency gain by employing solar panels on six commercial buildings in 2022
• Launched a new integrated waste management process in SML’s ITC projects to reuse plastic and organic waste and minimise waste diverted to landfill
• Initiated two new green programmes, Eco-Enzyme and Plastic to Food, to promote the innovative use and reuse of organic compost and plastic waste
• Incorporated the use of green materials in construction projects (20% green materials in residential projects)

Social Achievements

• Bina Usaha MSME programme engaged hundreds of MSMEs by providing training in business development and product marketing
• Local Farming Partnership programme provided training and guidance on sustainable agriculture to farmers in Rumpin District
• Sekolah Berhati programme transformed selected schools into environmentally-conscious schools

Governance Achievements

• Obtained a commendable ESG risk rating score of 15.8 from Sustainalytics, indicating low severity of ESG risk and Management score of 52.9 indicating strong ESG Management approach and programme.
• Implemented TCFD guidelines
• Reported in accordance with the GRI Standards (2021) and SGX listing requirements
• Aligned strategy and report with UNGC and SDGs

Climate Goals & Targets

Environmental Challenges

• Land disputes from land acquisitions
• Noise disturbance during construction
• Potential negative impacts from construction activities on local environment and community
• Need for increased awareness of waste sorting among employees, residents, and the wider community
• Challenges in ensuring the quality of implementation of Sekolah Berhati programme with limited time and resources
• Difficulty for MSMEs to find a sustainable market for their products

Mitigation Strategies

• Close monitoring of issues and implementation of necessary actions to minimise negative impacts
• Specific mitigation measures prior to handing over final products to customers
• Robust customer complaint handling procedure and customer service standard, in combination with a Service Level Agreement (“SLA”) for resolving complaints or grievances
• Restricting construction work to reasonable hours and maintaining an orderly construction site
• Ensuring contractors possess a regional regulator rating or hold a government-issued Construction Service Permit Letter
• Increased socialisation and engagement with stakeholders to promote responsible waste management
• Mentoring educators to help familiarise them with new teaching methods
• Partnerships with the private sector to provide MSMEs exposure to business professionals and to create job opportunities for MSMEs to sell their products as vendors

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritising environmentally responsible procurement by sourcing materials with recycled content

Climate-Related Risks & Opportunities

Physical Risks

• Heavy rainfall and floods
• Landslides

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards (2021), SGX listing requirements, TCFD guidelines, UNGC

Certifications: Greenmark BCA, Greenship GBCI, LEED

Third-party Assurance: Internal Audit Group

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)
• Goal 4 (Quality Education)
• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)

Various initiatives contribute to these goals through sustainable development, community engagement, education, and environmental conservation

Sustainable Products & Innovation

• Green buildings
• Plastic asphalt for road construction
• Eco-enzyme from household waste

Awards & Recognition

• 3G Innovation in Environmental Solutions Award 2022
• 3G Best Green Innovation and Solutions Award 2022
• Property Guru Indonesia Property Award 2022 — Special Recognition in ESG
• Property Guru Indonesia Property Award 2022 — Best Sustainable Developer
• Property Guru Indonesia Property Award 2022 — Special Recognition in Sustainable Design and Construction
• Property Guru Indonesia Property Award 2022 — Special Recognition in ESG (NAVA Park, BSD City)
• TrenAsia ESG Excellent 2022 — Sustainability Residential Category
• 2022 Indonesia Sustainable Development Goals Award for the Gold Category (Sekolah Berhati)

Environmental Metrics

ESG Focus Areas

• Best in Class Real Estate
• Climate Change & the Environment
• Sustainable Community
• Educational Patronage

Environmental Achievements

• Reduced building energy consumption intensity by 3% from 2022.
• Reduced building municipal water consumption intensity by 2% from 2022.
• Produced 812 liters of eco-enzyme, exceeding the initial target.
• Reduced building energy related GHG emission by 8.6% through the purchase of 13,435 MWh RECs.

Social Achievements

• Contributed IDR 7,549.8 million towards community development.
• Made other donations totaling IDR 377.8 million.
• Exceeded targets in the Digital Technology Grant, Kampung Mantul, and Bina Usaha MSME initiatives.
• Average employee training hours increased to 16.77 hours (84% increase from 2022).

Governance Achievements

• Improved Sustainalytics ESG Risk Rating from 15.8 in 2022 to 14.5 in 2023.
• Implemented an e-learning training course on bribery, corruption, conflict of interest, and the Whistleblowing System.
• Maintained zero non-compliances with laws and regulations.

Climate Goals & Targets

Environmental Challenges

• Clarifying the impact of sustainability initiatives.
• Adapting to evolving regulations.
• Setting appropriate targets and measurement systems.
• Securing adequate capital for ESG projects.
• Obtaining buy-in from internal stakeholders.
• Integrating ESG into existing business processes.
• 12 instances where the BOD of effluents exceeded the government limit due to various factors.

Mitigation Strategies

• Continuous engagement with internal and external stakeholders.
• Continuous improvement in sustainability practices.
• Implementation of remedial actions to address effluent exceedances, including necessary repairs.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• All contractors involved in construction activities undergo thorough screening to ensure compliance.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Drought/wildfire
• Heavy rainfall
• Landslide
• Rise of sea level

Transition Risks

• Policy shifts
• Market changes
• Reputational risks
• Technological changes

Opportunities

• Increased demand for green products
• Development of energy-efficient products

Reporting Standards

Frameworks Used: SGX, GRI, TCFD

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

Third-party Assurance: Internal assurance by SML’s Internal Audit Group

UN Sustainable Development Goals

• SDG 2: Zero Hunger
• SDG 8: Decent Work and Economic Growth
• SDG 10: Reduced Inequalities
• SDG 7: Affordable and Clean Energy
• SDG 13: Climate Action

Alignments mentioned throughout the report.

Sustainable Products & Innovation

• Eco-enzyme cleaners
• Asphalt mixed with plastic waste
• Zero-waste kimono designs
• Art-painted sneakers

Awards & Recognition

• Sustainalytics ESG Rating: 14.5
• ASEAN Energy Awards 2023
• TrenAsia ESG Excellence Awards 2023
• Property Guru Indonesia Property Awards 2023
• Property Guru Asia Property Awards 2023
• 8th Global Good Governance Awards 2023